USFR Weekly Recap - November 21-22, 2015

November 21, 2015 03:30 AM
 

Today on USFR
November 20, 2015 

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OPENING HEADLINES:
WELCOME TO U.S. FARM REPORT. I'M TYNE MORGAN, AND HERE'S WHAT WE'RE WORKING ON FOR YOU THIS WEEKEND.  ADVANCING YOUR ACCOUNTING....   THE BIGGEST MISTAKE I SEE OUT THERE IS JUST THE LACK OF RECORDS.>  OUR FARM JOURNAL REPORT SHOWS YOU WHY WHEN BUDGETS ARE TIGHT, THE SMALLEST MISTAKES CAN REALLY ADD UP.  KEEPING YOUR EYE ON THE FUTURE...  WE WANT IT TO CONTINUE TO MOVE FORWARD. WHETHER THAT'S THROUGH MY NEPHEW MY   DAUGHTERS OR MY NEICE OR SON IN LAWS>
OUR LEAVE A LEGACY SHOWS US WHO ONE DELAWARE FAMILY IS FINDING NEW  WAYS TO IGNITE INTEREST IN THE FAMILY'S POULTRY FARM.   IN JOHN'S WORLD...  <THE TPP IS A MIXTURE OF GOOD AND BAD, BUT I STILL THINK IT'S WORTH IT>
AND SAY GOOD-BYE TO THE MILD NOVEMBER AIR. 
COLDEST AIR THIS SEASON COMING INTO THE MIDWEST. WILL IT BE STICKING AROUND?  I'LL HAVE MY FORECAST COMING UP."  TYNE OPENS:
NOW FOR THE NEWS THAT MOVED THE MARKETS THIS WEEK... WEAKNESS IN COMMODITY AND ENERGY PRICES CONTINUE TO WEIGH ON THE AG SECTOR.
THE NOVEMBER RURAL MAINSTREET INDEX IS OUT...FROM ERNIE GOSS AT  CREIGHTON UNIVERSITY.
HE SAYS THE INDEX FELL BELOW GROWTH NEUTRAL FOR A THIRD STRAIGHT  MONTH.
THE FARMLAND AND RANCHLAND INDEX ROSE A BIT IN NOVEMBER BUT REMAINS  IN NEGATIVE TERRITORY.
THE SAME IS TRUE FOR FARM MACHINERY...WHILE HIRING IN RURAL AMERICA HOLDS... GOSS SAYS MAINSTREET BUSINESSES CONTINUE TO HIRE WORKERS BUT AT A  MUCH SLOWER PACE, BUT HE'S MORE BULLISH HEADING INTO NEXT YEAR. <I THINK 2016 OVERALL IS GOING TO BE BETTER. NOW WHY IS IT GOING TO BE BETTER? THE ECONOMY  AMONG OUR GLOBAL TRADING PARTNERS IS GOIGN TO IMPROVE. I THINK WE'LL SEE MORE OF OUR CENTRAL BANKS ACROSS THE GLOBE MOVING MORE LIKE THE FED AND RAISING THEIR RATES. >
ON THE BUSINESS FRONT, SYNGENTA CONTINUES TO BE HEAVILY PURSUED,  BLOOMBERG REPORTING THE COMPANY RECENTLY REJECTED CHEM-CHINA'S 42  MILLION DOLLAR OFFER.  BUT NOW MONSANTO COMPANY IS SAYING IT MAY BE INTERESTED AGAIN. MONSANTO PRESIDENT BRETT BEGEMANN STATING DURING AN INVESTOR  MEETING THIS WEEK THAT THEY'VE BEEN STUDYING EVERY POSSIBILITY FOR  CONSOLIDATION IN BOTH THE SEED AND CHEMICAL SECTORS.
AND SYNGENTA REMAINS A POSSIBILITY. SYNGENTA'S PREVIOUS C-E-O MIKE MACK ANNOUNCED HE WOULD BE STEPPING DOWN IN AUGUST, AFTER THE COMPANY REJECTED THREE TAKEOVER OFFERS  FROM MONSANTO.   SNOW AND COLD WEATHER ISN'T GOING TO HELP FEED YARDS WITH EFFICIENCY. THAT PART OF THE INDUSTRY STILL STRUGGLING UNDER THE WEIGHT OF A FALLING CATTLE MARKET. STERLING MARKETING SAYS FEEDERS WERE EXPERIENCING AN AVERAGE PER  HEAD LOSS OF 518 DOLLARS.  THE EXTREME LOSSES ALREADY IMPACTING FEEDER CATTLE PRICES IN THE CASH MARKET.   OCTOBER RETAIL EGG PRICES DROPPING 5 PERCENT TO 2-80 A DOZEN...THAT'S  DOWN FROM THE PREVIOUS MONTH'S ALL TIME HIGH OF 2-96 IN SEPTEMBER.  THE NUMBER OF LAYING HENS NOW RISING FOR THE 3 STRAIGHT MONTHS. THE POULTRY INDUSTRY LOST 48 MILLION BIRDS TO AVIAN INFLUENZA IN 2015...38 MILLION OF THOSE WERE EGG LAYERS.
THOSE ARE THE HEADLINES...METEOROLOGIST MIKE HOFFMAN JOINS US NOW WITH WEATHER, MIKE, WE'VE GONE FROM BEAUTIFUL 60 DEGREE TEMPERATURES TO NOW BLIZZARDS AND HEAVY SNOWS. IS THIS COOLER PATTERN EXPECTED TO STAY THROUGH THANKSGIVING?  
NATIONAL WEATHER:
ACTUALLY NO THE MIDWEST AND EAST SHOULD WARM UP FOR AWHILE THIS WEEK, THE WEST WILL GET COLDER THOUGH.  SO THERE'LL BE SOME FLIP FLOPPING THERE ONCE AGAIN.  DROUGHT MONITOR  CONTINUES TO SHOW JUST  ONLY A FEW POCKETS EAST OF THE CONTINENTAL DIVIDE OF MODERATE DROUGHT THE WORST CONTINUES TO BE CALIFORNIA NEVADA AND STILL VERY VERY DRY IN MOST AREAS OF OREGON AND WASHINGTON EVEN THOUGH  THERE HAS BEEN SOME IMPROVEMENT UP THAT WAY.  ALL RIGHT LETS GO DAY BY DAY THIS WEEK YOU CAN SEE AS WE START THE WEEK ON MONDAY LOTS OF HIGH PRESSURE DOMINATING THE WEATHER MAP AND THAT’S ALWAYS GOOD NEWS.  WE DO HAVE A COLD FRONT MOVING THROUGH SOUTH FLORIDA SO STILL SOME LINGERING SHOWERS AND SPOTTY THUNDERSTORMS  DOWN THAT WAY.    WEAK SYSTEM DIVING INTO THE GREAT LAKES WITH A LITTLE BIT OF RAIN AND SNOW THERE SHOULD NOT BE A REAL BIG ISSUE BUT THAT WILL CONTINUE TO MOVE EASTWARD SO THE MILDER TEMPERATURES COMING INTO THE WESTERN PLAINES WILL CONTINUE TO SHIFT EASTWARD.  NOW THIS IS JUST THE BEGINNING OF THE NEXT STORM SYSTEM COMING IN.  YOU CAN SEE BY WEDNESDAY THAT'S PRODUCING SOME BIG TIME SNOWS IN THE WESTERN ROCKIES.  RAIN AND SNOW FARTHER EAST ALONG THIS COLD FRONT AND THEN SOME SPOTTY SHOWERS IN THE PLAINES AS THE GULF MOISTURE STARTS TO GET INVOLVED. THIS STORM REALLY STARTS TO CRANK UP BY LATER IN THE WEEK THIS IS BLACK FRIDAY OF COURSE.  YOU CAN SEE RAINY CONDITIONS FROM NORTHERN TEXAS ALL THE WAY INTO THE GREAT LAKES, AND SNOW ON THE BACK SIDE OF IT.  PROBABLY SOME DECENT ACCUMULATION IN THE EASTERN ROCKIES IN THIS CASE AS VERY WARM AIR SURGES AHEAD OF IT. VERY COLD AIR COMES IN ONCE AGAIN BEHIND.  OUR LONGER RANGE FORECAST IN OUR NEXT  HALF HOUR.
THANKS, MIKE. WHEN WE COME BACK, DUWAYNE BOSSE AND SUE MARTIN ARE IN TO TALK MARKETS AHEAD OF THE THANKSGIVING BREAK. 
<YOU'RE WATCHING U.S. FARM REPORT WITH HOST TYNE MORGAN, COMMENTATOR JOHN PHIPPS, AGRIBUSINESS DIRECTOR AL PELL AND METEOROLOGIST MIKE HOFFMAN. U.S. FARM REPORT. TRUSTED. TIMELY. TRADITION.>
<JOIN US THIS YEAR AS WE TALK TO GROWERS ABOUT THIS YEAR'S GROWING SEASON, AND THE DECISION THEY'RE MAKING ON THEIR JOURNEY TO HARVEST- SPONSORED BY DUPONT PIONEER>                                            ​                         ​  <U.S. FARM REPORT BROUGHT TO YOU BY CASE IH. BE READY NEXT HARVEST SEASON WITH AN AXIAL FLOW COMBINE FROM CASE IH>
JOHN'S WORLD:  TPP                                                ​                   A MAJOR TRADE DEAL INVOLVING 12 PACIFIC RIM COUNTRIES HAS BEEN ON THE  TOP OF MOST COMMODITY GROUPS' AGENDA. AND TODAY, JOHN PHIPPS BREAKS DOWN THE ECONOMICS OF THE T-P-P.  THE LOBBYING FOR FINAL APPROVAL OF THE TRANS-PACIFIC PARTNERSHIP OR TPP IS REACHING A CRESCENDO. RECENTLY SEVERAL AG GROUPS COME OUT  STRONGLY IN FAVOR.   I REMAIN, HOWEVER, A TEPID SUPPORTER. BIG TRADE PACTS ARE ALWAYS OVERSOLD - BOTH THE BENEFITS AND THE COSTS. THE TPP, LIKE NAFTA BEFORE, PROBABLY WON'T MOVE THE NEEDLE MUCH OR QUICKLY FOR ANY INDUSTRY, INCLUDING AG. ONE BIG REASON IS THE TIMELINES FOR TRADE BARRIER REMOVAL ARE REALLY LONG - ALMOST GENERATIONAL. STILL, THEY ARE WORTHY GOALS.  WHAT WAS CURIOUS TO ME WAS THE REMARKABLE TUNNEL VISION OF COMMODITY GROUPS. IT'S LIKE THEY DID A SEARCH OF THE MASSIVE DOCUMENT AND THEN ONLY READ THE PARAGRAPHS THAT CONTAIN CORN, OR BEEF, OR WHATEVER.  TO BE FAIR, I DIDN'T WADE THROUGH THE WHOLE THING EITHER. BUT FARMERS  SHOULD AT LEAST CHECK TO SEE WHAT OTHER IMPORTANT PROVISIONS ARE IN THE PACKAGE. MANY OF THESE DON'T HAVE ANYTHING TO DO WITH AGRICULTURE, BUT A LOT TO DO WITH BEING PART OF OUR ECONOMY. 
FOR EXAMPLE, THE SECTION OF INTELLECTUAL PROPERTY LIKELY MEANS LOW COST GENERIC DRUGS WILL BE SLOWER ARRIVING TO HELP CONTAIN HEALTHCARE COSTS. IF YOU DON'T UNDERSTAND WHY THIS IS A BIG DEAL FOR US YOU NEED TO HAVE BREAKFAST WITH SOME OLDER FARMERS SOMETIME AND BRING UP PRESCRIPTION PRICES. LONG AFTER A SMALL BUMP IN BEEF SALES HAS DISSIPATED, TWENTY-DOLLAR-A-DAY MEDICATION BILLS WILL STILL BE ARRIVING.
THE BIGGEST REASON I HOPE IT PASSES MAY BE THE HARDEST TO MEASURE.  INCREASED TRADE IS A PROVEN DETERRENT TO GLOBAL BELLIGERANCE.  COMMERCIAL TIES DECREASE THE ODDS OF CONFLICT WHILE THEY MAKE THE CULTURES INVOLVED MORE AT EASE WITH EACH OTHER.  
I CAN PUT UP WITH A LOT OF ECONOMIC FRICTION IN ORDER TO ADVANCE INTERNATIONAL COOPERATION.
THANKS, JOHN. 
TEASE:
STILL TO COME, SOME FARMERS WILL DO EVERYTHING IT TAKES TO AVOID PAYING TAXES. BUT ONE C-P-A SAYS NOT PAYING ENOUGH COULD BE A FARMERS'
BIGGEST ACCOUNTING MISTAKE. THAT'S OUR FARM JOURNAL REPORT AFTER THE BREAK.
THE CHEVY SILVERADO IS THE OFFICIAL NEWS GATHERING VEHICLE FOR FARM JOURNAL TELEVISION. 
FROM THE STUDIOS OF FARM JOURNAL BROADCAST, THIS IS U.S. FARM REPORT.   WELCOME BACK TO U-S FARM REPORT. WE HAVE MUCH MORE AHEAD THIS WEEKEND...  ADVANCE YOUR ACCOUNTING. WE'LL TELL YOU HOW FARMERS MAY SOON BE ABLE TO SEE PROFITABILITY NOT ONLY BY FIELD, BUT BY SOIL TYPE.
IN LEAVE A LEGACY, A DELAWARE POULTRY OPERATION THAT'S NOT FORCING THE NEXT GENERATION TO COME BACK, INSTEAD LAYING THE FOUNDATION FOR A PASSION TO GROW.  AND IN JOHN'S WORLD, HE'S BACK WITH PART 2 OF A DOLLAR'S WORTH.   NOW FOR THE HEADLINES, SALMON IS NOW THE FIRST GENETICALLY ENGINEERED ANIMAL CLEARED FOR HUMAN CONSUMPTION IN THE US.
GENETICALLY MODIFIED SALMON APPROVED BY FDA:
THE ANNOUNCEMENT COMING THIS WEEK FROM THE FDA.
THE ATLANTIC SALMON REACHES MARKET SIZE MORE QUICKLY THAN NON-GE FARM RAISED SALMON.  FDA SAYS THEY'VE ANALYZED THE DATA AND SAY THE FISH IS SAFE TO EAT.  MANY ARGUE RAISING THE FISH AT ALL--BRINGS RISKS OF IT BEING RELEASED INTO THE WILD.
FDA DISAGREES ADDING THAT THE FISH ARE STERILE AND CAN'T REPRODUCE. 
IT'S STIPULATING THE FISH CAN ONLY BE RAISED IN LAND-BASED, CONTAINED HATCHERY TANKS AT TWO SPECIFIC FACILITIES-- ONE IN CANADA AND THE OTHER PANAMA. 
AND THE DECISION DOES NOT ALLOW THE FISH TO BE BRED OR RAISED IN THE U.S.  THE AGENCY WILL ACCEPT PUBLIC COMMENT FOR 60 DAYS STARTING NOVEMBER  23RD. 
ANTIBIOTICS IN ANIMALS MAY BE LINKED DRUG RESISTANCE PROBLEMS IN KIDS:
A NEW REPORT CLAIMS UNNECESSARY USE OF ANTIOBIOTICS IN ANIMALS IS BECOMING A HEALTH CONCERN FOR KIDS.   THE AMERICAN ACADEMY OF PEDIATRICS, OR A-A-P,  CLAIMS ANTIMICROBIAL  DRUG RESISTANCE IS A GROWING HEALTH CRISIS. AND THE COMMON FARMING  PRACTICE OF USING ANTIOBIOTICS IN ANIMALS IS ONE CAUSE.  A-A-P SAYS WHEN PRODUCERS USE ANTIBIOTICS AS A GROWTH PROMOTANT, OR TO INCREASE FEED EFFICIENCY, IT OFTEN LEAVES THE DRUG INEFFECTIVE WHEN TREATING INFECTIONS IN PEOPLE, ESPCIALLY YOUNG PATIENTS.   IN RESPONSE, THE NATIONAL PORK BOARD SAID THE INDUSTRY IS ALREADY PHASING OUT THE USE OF ANTIOBIOTICS FOR GROWTH PROMOTION, AND THAT WHILE THEY UNDERSTAND PEOPLE ARE ALREADY CONFUSED ABOUT THE ROLE OF ANTIOBITOICS IN MEAT PRODUCTION, THIS REPORT ONLY ADDS TO THAT CONFUSION. 
 TACO BELL GOES CAGE FREE:
TACO BELL JOINED THE LIST OF FAST-FOOD COMPANIES MOVING TO CAGE-FREE  EGGS THIS WEEK. BUT THEIR TIMELINE IS MORE AGGRESSIVE THAN MOST.  THE CHAIN PROMISES TO MAKE THE SWITCH BY THE END OF 2016. MOST OTHER COMPANIES ARE GIVING A 5-YEAR TO 10-YEAR TIMELINE FOR THE TRANSITION.  TACOBELL HAS MORE THAN 6 THOUSAND RESTRAUNTS AND SELLS CLOSE TO 150 MILLION EGGS EACH YEAR.   

CRUDE OIL:
A GLUT OF GLOBAL CRUDE IS HELPING TO PUSH FUEL PRICES LOWER.  DIESEL PRICES ARE NOW 32 PERCENT LOWER THAN THEY WERE A YEAR  AGO...AVERAGING 2-48 A GALLON.  ANALYSTS SAY NOW MAY BE A GOOD TIME TO LOCK IN THESE LOWER PRICES.   LOWER CRUDE OIL IS GOING TO IMPROVE MARGINS FOR REFINERS AND THAT'S  GOING TO ENCOURAGE THEM TO BUILD THESE SUPPLIES WHICH HAVE DRAWN DOWN JUST SLIGHTLY AND WE DO EXPECT PRICES AROUND 2 DOLLARS PER GALLON REGIONALLY. AS FAR AS LOOKING AHEAD TO NEXT SPRING WE DO RECOMMEND BOOKING AT LEAST A PORTION TO GUARD AGAINST ANY POTENTIAL  UPSIDE SURPRISES IN THE CRUDE OIL MARKET OR ANY SHORTAGES ON THE DISTILLATE SIDE. BOOK A PORTION OF THAT FOR SPRING AHEAD OF TIME ONCE WE HIT THAT LOW IN DECEMBER.> 
STORM STRANDS CARS IN COLORADO:
THIS WAS THE SCENE ALONG I-70 AS HEAVY SNOWS AND STRONG WINDS  STRANDED VEHICLES AND SHUT DOWN HIGHWAYS IN EASTERN COLORADO THIS WEEK.
THE NATIONAL WEATHER SERVICE SAID WIND GUSTS OF UP TO 60 MPH CREATED BLIZZARD LIKE CONDITIONS...IN COLORADO, KANSAS AND PARTS OF NEBRASKA.
THE FALL STORM A CONCERN FOR SOME LIVESTOCK OWERS AFTER MILD TEMPERATURES THE LAST FEW WEEKS.
WEATHER:
OH YEAH, IT'S THAT TIME OF YEAR BUT THE NEXT BIG SYSTEM PROBABLY COMING IN OUT WEST THIS WEEK. 
HERE'S THE JET STREAM AS WE HEAD THROUGH THIS WEEK, YOU CAN SEE WE STARTED OFF VERY COLD IN  THE EAST. THAT TROPH THOUGH KIND OF MOVES AWAY. SO WE START TO WARM UP A LITTLE BIT AS WE  HEAD TOWARD THANKSGIVING, BIG TROPH BIG SYSTEM OUT WEST, AND THEN THAT COLD AIR STARTS TO  COME EAST BY NEXT WEEKEND ONCE AGAIN. SO, THINGS ARE AT LEAST MOVING FROM WEST TO EAST IN MOST SITUATIONS. LET'S CHECK THE 30 DAY OUTLOOK AS FAR AS TEMPERATURES, WE'RE GOING BELOW  NORMAL  FROM GEORGIA, ALABAMA ALL THE WAY UP TO SOUTHERN  SOUTH DAKOTA, DOWN TO TEXAS AND  BACK TO CENTRAL  AND SOUTHERN CALIFORNIA ABOVE NORMAL FOR THE FAR NORTHERN AND EASTERN GREAT  LAKES  AND  MUCH OF THE NORTHEAST. 30 DAY OUTLOOK FOR PRECIP, EXPECTED TO BE ABOVE NORMAL  FOR MUCH OF THE SOUTHERN TROW THIRDS OF THE COUNTRY, ESPECIALLY THE MIDANTATIC DOWN INTO THE SOUTHEAST BACK INTO THE CENTRAL AND SOUTHERN PLAINS. SOME BELOW NORMAL AREAS PROBABLY UP ALONG THE CANADIAN BORDER, ESPECIALLY THE NORTHWEST AND FAR NORTHERN ROCKIES.
TOP PRODUCER:
<THE TOP PRODUCER BUSINESS DRIVER SPECIAL REPORT IS BROUGHT TO YOU BY BASF. GROW SMART WITH BASF, AND GET THE MOST ACRE AFER ACRE, SEASON AFTER SEASON>
SO FAR DURING OUR BUSINESS DRIVERS SERIES, WE'VE EXPLORED FORWARD  CONTRACTING, CASH RENTS AND GROWTH FOR 2016. BUT IN ORDER TO MANAGE  MOST OF THAT, YOU NEED GOOD ACCOUNTING. IN THIS WEEK'S FARM JOURNAL  REPORT, WE LEARN HOW ADVANCING YOUR ACCOUNTING PRACTICES CAN  PROPEL YOU INTO THE FUTURE, ESPECIALLY IN YEARS LIKE 2015.
<THE BIGGEST MISTAKE I'VE SEEN OVER AND OVER IS THEY HAVNE'T PAID ENOUGH TAX. THEY'RE HAPPY  TO BE DOWN AT THAT ZERO LEVEL, BUT YOU FIND OUT THEY'VE GIVEN UP EXEMPTIONS, THEYV'E GIVEN UP  CREDITS THAT WOULD ALSO STILL BRING THEIR TAX DOWN TO ZERO.">
KEEPING TRACK OF FARM RECORDS RANGES WIDELY, BUT FOR OHIO STATE'S  BARRY WARD, ACCURATE RECORDS ARE THE FOUNDATION FOR GOOD FARM FINANCIALS.  
<THE BIGGEST MISTAKE I SEE OUT THERE IS JUT THE LACK OF RECORDS. NOT GENERATING A BALANCE SEHET, NOT GENERATING AN INCOME STATEMENT,  >
NEIFFER SAYS WHEN TRYING TO BEEF UP ACCOUNTING ON THE FARM, START SMALL.   
<. I MEAN A LOT OF FARMERS HTYE WANT TO HAVE EVERYTHING TIED DOWN, REALLY THE KEY IS FIND OUT  WHAT IS THE MOST IMPORTANT. ARE THEY REALLY CONCERNED ABOUT WHAT IS MY EQUIPMENT COST PER ACRE, WELL THEN KEY ON YOUR EQUIPMENT MODELING FOR THAT MANAGEMENT ACCOUNTING.">                                           ​;                     
THERE'S OFTEN DEBATE ON WHETHER A FARMER SHOULD USE CASH OR ACCRUAL METHODS OF ACCOUNTING.   <A LARGE AMOUNT OF FARMS ARE USING CASH ACCOUTNING. IT JSUT GIVES THEM SO MUCH MORE FLEXIBILITY AND ALLOWS THEM TO MOVE REVENUE TO WHATEVER CALEDNAR EYAR THEY MIGHT NEED IT FOR TO MANAGE TAXES.">
NEIFFER SAYS WHILE MOST FARMERS USE CASH ACCOUNTING FOR THE  SIMPLICITY, SWITCHING FROM CASH TO ACCRUAL IS EASIER THAN MOST THINK.   <THE KEY IS, ESPECIALLY WITH SOFTWARE RIGHT NOW, YOU CAN PREPARE YOUR RECORDS USING GAP OR ACCURAL BASIS ACCOUTNING, AND ALMOST WITH A FLIP OF THE SWTICH OR THE CPA MAKING A COUPLE JOURNAL ENTIRES, THEY CAN COVERT IT OVER TO CASH METHOD OF ACCOUNTING. >  WARD SAYS MANY FARMERS TOOK ADVANTAGE OF SECTION 179 AND BONUS  DEPRECIATION THE PAST FEW YEARS, IT'S BECOME A TRAP, WITH SOME USING  THAT TO MANAGE THEIR TAX BILL AND OVER SPENDING ON EQUIPMENT AND  BUILDINGS.  
<THE BIG ISSUE WITH DEPRECIATION WITH PRODUCERS IS JUST FOLLOWING THEIR TAX DEPRECAITION  RECORDS AND NOT TRACKING SOME TYPE OF ECONOMIC DEPRECIATION FOR THEIR EQUIPMENT BECAUSE THAT'S A FAIR REPRESENTATION THEY NEED TO INCLUDE ON BOTH THEIR BALANCE SHEET AND INCOME STATEMENT.">
WHILE SOME OF THESE MISTAKES SEEM SMALL, WARD ERRORS ADD UP WHEN BUDGETS ARE TIGHT. 
<IT'S A DIFFERENT ERA. WE'RE LOOKING AT VERY LOW TO NEGATIVE MARGINS IN SOME CASES, SO IT'S GOING TO BE IMPORTANT FOR THEM TO REALLY SIT DOWN AND SCRUTINIZE THEIR BALANCE SHEET. PUT IT TOGETHER, AND WORK CLOSELY WITH THEIR LENDOR, BUT ALSO EVALUATE THAT AND THE TRENDS THEY'RE  SEEING ON THEIR OWN FARM.">  THAT'S WHY NEIFFER SUGGESTS DISTANCING YOURSELF FROM EXCEL  SPREADSHEETS. IT MAY BE EASY TO SET UP, BUT IT ALSO CREATES MORE  MISTAKES. 
<THERE'S VARIOUS SOFTAWRE OPTIONS OUT THERE THAT DO A VERY GOOD JOB. THERE'S THE ACCOUNTING  SIDE SOFTWARE, THE MANAGEMENT SIDE SORTWARE, AS OF YET, THEY'RE NOT QUITE TOTALLY TALKING  TOGETHER YET, BUT I WOULD FOCUS IN ON IF YOU'RE REALLY FOCUSED IN ON THE MANGEMENT SIDE, START  WITH THAT. IF YOU'RE FOCUSED MORE ON THE FIANCIAL SIDE START WITH THAT.">
NEIFFER SAYS AS FARMERS MOVE TO MORE REAL-TIME PROFITIBAILITY RECORDS  WITH CLOUD BASED SOFTWARE, SOON THEY CAN HONE IN ON DOING  ACCOUNTING NOT ONLY BY FIELD, BUT BY SOIL TYPE.   < THAT'S REALLY AN IMPORTANT CONCEPT IS THIS TYPE OF SOIL ACTUALLY PRODUCES BETTER THAN THAT TYPE  OF SOIL. AND WITH THE TECHNOLOGY AVAILABLE TODAY, FARMERS ARE GOING TO BE ABLE TO DIG ALL THE  WAY DOWN TO THE SOIL LEVEL AND KNOW HOW MUCH THEY MAKE BASED ON EACH OF THEIR SOIL TYPES.">  TECHNOLOGY ON THE HORIZON THAT NEIFFER SAYS COULD BE HERE SOONER THAN YOU THINK.   THE LATEST ISSUE OF TOP PRODUCER MAGAZINE INCLUDES A SIMILAR ARTICLE,  TITLED "ADVANCE YOUR MANAGEMENT ACCOUNTING" THAT HITS MAILBOXES THIS  WEEK.  YOU CAN ALSO READ IT ONLINE-- TOPPORDUCER HYPHEN ONLINE DOT COM.  WHEN WE COME BACK, JOHN PHIPPS. 
TEASE:
AS PROMISED LAST WEEK, JOHN IS BACK WITH PART TWO OF WHAT THE U-S  DOLLAR IS REALLY WORTH.  
THANKS, JOHN. AND REMEMBER TO EMAIL YOUR QUESTIONS OR COMMENTS TO  JOHN, OR SEND US A NOTE ON FACEBOOK OR TWITTER.  WHEN WE COME BACK, AN EAST COAST FAMILY IS TRYING TO SPARK A PASSION  FOR POULTRY WITHIN THE NEXT GENERATION AT A YOUNG AGE. THAT'S LEAVE A  LEGACY, NEXT.  
<LEAVE A LEGACY IS BROUGHT TO YOU BY DUPONT PIONEER. DUPONT PIONEER HELPING YOU GET THE  RIGHT PRODUCT ON THE RIGHT ACRE. SCIENCE WITH SERVICE, DELIVERING SUCCESS.">
LEAVE A LEGACY:
IT'S NOT OFTEN A BUSINESS CHANGE DIRECTION--MOVING FROM ONE PRODUCT  TO SOMETHING COMPLETELY DIFFERENT.
BUT IN THIS WEEK'S LEAVE A LEGACY REPORT, CLINTON GRIFFITHS INTRODUCES  US TO A DELAWARE FAMILY THAT CHANGED ITS BUSINESS MODEL IN ORDER TO KEEP THE NEXT GENERATION ON THE FARM.
GRAIN SIDE--THOMPSON FARMS...POULTRY --LOCUST-LANE-HARTLEY NATS OF WASHING TRACTOR...
LEAVING A LEGACY...THE PASSING OF AN OLDER GENERATION...ON TO A NEW  ONE...NATS..
THAT PRACTICE IS ALIVE AND WELL AT THE THOMPSON FAMILY FARM IN HARTLEY  DELAWARE.
WE'RE TRYING TO WORK TOWARD'S BEING SUCCESSFUL TO HAVE A LEGACY TO PASS ON TO THE KIDS.// 
TODAY THAT OPERATION INCLUDES, TRACTOR AND RESTORATION WORK, RAISING  POULTRY FOR PERDUE FARMS, GROWING REPLACEMENT DAIRY HEIFERS, AND  KEEPING UP WITH FARM GROUND THAT GROWS SOYBEANS, CORN AND SOFT RED  WINTER WHEAT.  ROBERT THOMPSON TOOK THIS FARM OVER FROM HIS PARENTS...BUT IT WAS HIS GRANDPARENTS THAT STARTED THE OPERATION IN 1911.  HE WAS LIKE MANY FARMERS IN THE AREA AT THE TIME MOST OF THEM HAD SMALL ORCHARDS  AND SOME STRAWBERRIES AND GREW A LOT OF TOMATOES AND WHEAT.  
IN THE LATE 30'S--AS HIS FATHER STEPPED UP IN THE BUSINESS-- THE FAMILY  STARTED A DAIRY.  HE MILKED COWS HIS LIFETIME AND I MILKED COWS...BARBARA AND I GOT MARRIED IN 1969 AND  MILKED COWS UNTIL 2003 HERE.
THE OPERATION HAS ALWAYS BEEN DIVERSIFIED..AT ONE TIME THE FAMILY  TENDED A THOUSAND-LAYING HENS, TOMATOES AND WHEAT.  IT'S A TRADITION, THAT CONTINUES. 
AND AS ROBERT TURNED THE CORNER ON A NEW CENTURY, HE COULD SEE CHANGES WERE NEEDED.  THE DAIRY NEEDED A LOT OF EXPANDING AND UPDATING. IT REQUIRED A LOT OF MONEY THAT NONE OF US WANTED TO DO THAT...
IT WAS AT THAT TIME THAT TWO OF HIS SON'S ARRON AND JONATHAN --
EXPRESSED INTEREST IN TEAMING UP.
EVEN WHEN WE WERE IN ELEMENTARY SCHOOL WE STARTED HELPING HIM BEFORE WE WENT TO   SCHOOL AND AFTER. SO WE WERE BIG PART OF THE DAILY OPERATIONS  THEN IN 2002 IS WHEN WE STARTED OUR PARTNERSHIP AND WE STARTED WORKING TO WHERE  WORKING TOGETHER INSTEAD OF ME JUST WORKING FOR DAD AS A SON OR EMPLOYEE, I WAS A PARTNER AT  THAT TIME.  THAT'S WHEN THE TEAM BEGAN TO TRANSITION FROM DAIRY TO POULTRY, FIRST FLOCK WENT IN JANUARY 2006 AND WE STARTED POULTRY AS A WAY TO INCREASE INCOME FOR  ALL OF THE FAMILIES   SO FAR...THAT PLAN IS WORKING. AND EVEN THROUGH THE DAY TO DAY....THE  FAMILY HAS THEIR EYE ON THE FUTURE.
WE WANT IT TO CONTINUE TO MOVE FORWARD. WHETHER THAT'S THROUGH MY NEPHEW MY  DAUGHTERS OR MY NEICE OR SON IN LAWS WHAT EVER THAT IS. WE WANT TO SEE THAT CONTINUE TO  MOVE AND FEEL THE LIKE THINGS THAT YOU BUILT WILL BE THERE TO HELP THEM MOVE FORWARD IN LIFE.   WE HAVEN'T SET ANY GOALS THAT WE WANT TO BE LARGE FARMERS OR A CERTAIN AMOUNT OF  ACRES TO TILL. WE'RE TRYING TO REMAIN TO BE PROFITABLE HERE AND BE ABLE TO SUSTAIN AGRICULTURE  HERE FOR THIS FARM.  A FUTURE THAT WON'T HAPPEN WITHOUT THAT SAME PASSION FROM THE NEXT  GENERATION.  I'M STARTING TO TAKE MY DAUGHTER IN ON SUNDAY'S IN THE CHICKEN HOUSES WHEN THEY'RE  SMALL SO SHE'LL START IN AND I THINK SHE'LL HAVE INTEREST IN SEEING EVERYTHING MOVE FORWARD.
WE'RE NOT FORCING ANYTHING ON ANYONE BUT IF THE POSSIBILITY IS THERE ITS GOOD TO BE THERE. 
FOR LEAVE A LEGACY, I'M CLINTON GRIFFITHS REPORTING.
THANKS, CLINTON. YOU CAN LEARN MORE ABOUT FARM JOURNAL'S LEGACY 
TEASE:
PROJECT BY VISITING LEAVE A LEGACY DOT COM.  WHEN WE COME BACK, AL PELL HAS THIS WEEK'S TRACTOR. 
 TRACTOR TALES:
WELCOME BACK TO TRACTOR TALES. WE'RE OFF TO CENTRAL MONTANA THIS  WEEK FOR A CLASSIC CROSS-MOTOR CASE 1220.
BUILT IN 1923 AND PURCHASED FOR ONLY 650 DOLLARS, THIS TRACTOR CAME  WITH A FEW PROBLEMS.  MORRIE (MORE-EE) ROBINSON SHARES HIS STORY OF A  VERY UNIQUE AND CLASSIC FIX-ER-UPPER.  THIS WEEK, WE WOULD LIKE TO PAY TRIBUTE TO THE ASSTAD LUTHERAN CHURCH  OF FERGUS FALLS, MINNESOTA. THE CONGREGATION IS CELEBRATING 125 YEARS  THIS YEAR. OUR THANKS TO CINDY FRONNING FOR SENDING THAT IN.
CROP WATCH:

PLEASE STAY WITH US. CROPWATCH IS NEXT. 
WE START OFF IN SALEM, OREGON WHERE GREG BENNETT TELLS US IT WAS A  BLESSED HARVEST THIS YEAR. HE TELLS US JOHN MAY HAVE FOUND THE LAST  ROW IN HIS CORN FIELD, BUT HE FOUND THE LAST THREE ROWS OF ONIONS,  HARVESTING THE CROP WITH ONE OF HIS SONS. HE SAID EVEN THOUGH THEY'VE  EXPERIENCED VERY DRY WEATHER IN THE WESTERN HALF OF OREGON, THE QUALITY   OF THE ONIONS IS VERY GOOD THIS YEAR. TEH DRYNESS JUST STUNED THE SIZE OF THE ONIONS. BUT GREG ISN'T COMPLAINING, BECUASE LOOK AT THIS VIEW-- THAT'S MOUNT HOOD WITH A BRILLIANT SUNSET IN THE BACKDROP OF HIS FIELDS. 
OUR FRIENDS IN NORTHERN GEORGIA TELL US THEY'VE RECEIVED WAY TOO  MUCH RAIN. CLINT SENT US THIS PICTURE. THE MOISTURE WAS JUST TOO MUCH  FOR THE SOYBEANS, WITH THE PODS TURNING BLACK AND ROTTING.  
AND DO YOU REMEMBER THIS PICTURE FROM BACK IN JULY? MITCHELL LARSON  TOLD US HE EXPECTED THE FIELD TO BREAK LAST YEAR'S RECORD CROP. WELL,  FAST FORWARD A FEW MONTHS, AND HERE'S THE CROP JUST BEFORE HARVEST.   MITCHELL SAYS, AS EXPECTED, IT WAS A RECORD YEAR FOR CORN, WITH THE  POOREST FIELD AVERAGING 194 BUSHELS PER ACRE AND THE BEST AT 252.  
CLOSING:
FOR ALL OF US AT U-S FARM REPORT, I'M TYNE MORGAN. THANK YOU FOR WATCHING U-S FARM REPORT.  BE SURE TO JOIN US RIGHT HERE AGAIN NEXT  WEEK, AS WE WORK TO BUILD ON OUR TRADITION. HAVE A GREAT WEEKEND,  EVERYONE.  
PROMO:
THIS WEEKEND ON U-S FARM REPORT, WHY CERTAIN TAX INCENTIVES COULD BE  TAX TRAPS. AND WE'LL INTRODUCE YOU TO AN EAST COAST FAMILY TRYING TO SPARK A PASSION FOR POULTRY AT A YOUNG AGE. JOIN US THIS WEEKEND ON R- F-D. 

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