TODAY ON AGDAY
SEPTEMBER 13, 2017
HEADLINES
A NEW REPORT FROM USDA AND FRESH DRAMA FOR MARKETS. IN AGRIBUSINESS...CHECKING ON CATTLE... THE PACKER TV CHECKS ON HURRICANE IRMA DAMAGE IN FLORIDA PRODUCE. AND A JOURNEY TO THE TOP HAS THIS SOUTH DAKOTA FARMER REWORKING HIS LONG TERM LEGACY. AGDAY - PRESENTED BY CHEVY SILVERADO. HIGH-STRENGTH STEEL FOR HIGH-STRENGTH DEPENDABILITY.
USDA REPORTS
GOOD MORNING I’M CLINTON GRIFFITHS. WE’LL SEE HOW GRAIN MARKETS RESPOND THIS MORNING AFTER THE AG DEPARTMENT SAID THE CORN AND SOYBEAN CROPS GOT EVEN BIGGER OVER THE PAST MONTH. CORN PRODUCTION COMING IN AT 14-POINT-TWO BILLION BUSHELS. THAT’S ONE PERCENT HIGHER THAN AUGUST. THE NATIONAL AVERAGE YIELD WAS ALSO PUSHED HIGHER - ABOUT A HALF BUSHEL. USDA NOW EXPECTING 169-POINT-NINE BUSHELS AN ACRE. HARVESTED ACREAGE WAS UNCHANGED FROM LAST MONTH. SOYBEAN PRODUCTION IS FORECAST AT A RECORD 4.43 BILLION BUSHELS, UP 1 PERCENT FROM AUGUST.USDA EXPECTS YIELDS TO AVERAGE 49-POINT-NINE BUSHELS PER ACRE, UP A HALF BUSHEL. USDA DIDN’T CHANGE HARVESTED ACRES AS IT REMAINS A RECORD HIGH OF 88- POINT-SEVEN MILLION ACRES. FOR COMPARISON - USDA’S CORN YIELD ESTIMATE OF ONE-69-POINT-NINE IS NEARLY THREE BUSHELS HIGHER THAN PROFARMER’S ESTIMATE OF ONE-67- POINT-ONE BUSHELS TO THE ACRE. PROFARMER’S NATIONAL ESIMATE IS BASED - IN PART - ON THE RESULTS OF THE FARM JOURNAL CROP TOUR. BUT IT ALSO INCLUDES DATA AND ANALYSIS FROM STATES OUTSIDE THE TOUR AREA. THE AG DEPARTMENTS SOYBEAN YIELD ESTIMATE IS ALSO HIGHER THAN PROFARMER’S SOYBEAN FORECAST OF 48--AND-A-HALF BUSHELS AN ACRE. WITH HIGHER PRODUCTION ESTIMATES, USDA ALSO BOOSTED 2017-18 ENDING STOCKS TO TWO-POINT-THREE BILLION BUSHELS. SOYBEAN ENDING STOCKS WERE UNCHANGED AT 475 MILLION BUSHELS. OLD-CROP CORN ENDING STOCKS FOR 2016-17 COME IN AT TWO-POINT-THREE BILLION. AND OLD CROP SOY HITS 345 MILLION BUSHELS. BRIAN GRETE: “YOU KNOW NOW WE’RE SITTING HERE WITH MORE SUPPLY AND DEALING WITH HOW WE’RE GOING TO GET RID OF THAT SUPPLY. SO WE LOOK AT THE CARRYOVERS AND THE NEW CROP CARRY OVER FOR CORN THAT INCREASE THE PROJECTED SUPPLY FOR 2017 18 AT THE END OF THAT MARKETING YEAR. BUT ON SOYBEANS WE HELD STEADY WITH WORK CARRY OVER WAS LAST MONTH SO DESPITE THE BIGGER CROP ESTIMATE USDA OFFSET THAT WITH ENOUGH USE TO EQUAL OUT AND WE END UP WITH AN EQUAL STEADY CARRY OVER NUMBER THERE.” LAST YEAR, BETTER THAN EXPECTED YIELDS HELPED SOME FARMERS OUTYIELD LOWER COMMODITY PRICES. SO COULD AG SEE A REPEAT PERFORMANCE IN 2017? IN AN EARLY EXCLUSIVE FROM FARMER MAC, ECONOMIST JACKSON TAKACH TELLING AGDAY THERE’S ONE MAIN DIFFERENCE BETWEEN THIS YEAR AND LAST—THE AMOUNT OF GRAIN SITTING IN STORAGE. JACKSON TAKACH: “THIS YEAR I THINK ARE A LITTLE BIT LOWER QUANTITIES AND A LITTLE BIT LOWER PRICE MAYBE THAN LAST YEAR. SO, THAT’S GOING TO HURT REVENUE. HOWEVER AS YOU MENTIONED A LOT OF THESE COMMUNITIES THERE WAS A PRETTY LARGE CARRYOVER FROM THE 2016 CROPS, WHICH HELPS OFFSET SOME OF THOSE CASH FLOWS. I THINK THAT’S GOING TO HELP OUT THIS YEAR WITH MAYBE THE CASH WILL BE A LITTLE TIGHT IN THE FALL THEY WILL STILL HAVE SOME OF THE OLD CROP TO BE ABLE TO LIQUIDATE AND BOLSTER THEIR AND THEIR PROFITABILITY IN 2017 JUST FROM THAT 2016 CROP."> HERE’S A CHART SHOWING JUST HOW BURDENSOME THE CARRYOVER IS IN CERTAIN STATES. THE GREEN DIAMOND REPRESENTS THE 5-YEAR AVERAGE. THE ORANGE LINE IS ENDING STOCKS ACCORDING TO USDA’S LAST QUARTERLY REPORT. IT SHOWS CORN STOCKS WELL ABOVE AVERAGE LEVELS IN ILLINOIS, IOWA, MINNESOTA AND NEBRASKA. AND FARMERS IN ILLINOIS AND MINNESOTA FACING THE BIGGEST BURDENSON STOCKS SITUATION FOR SOYBEANS. USDA ALSO BOOSTING ITS COTTON FORECAST AS IT EXPECTS A RECORD YIELD. THE AG DEPARTMENT EXPECTING A SIX PERCENT INCREASE FROM ITS AUGUST ESTIMATES. IT’S NOW CALLING FOR 21-POINT-EIGHT MILLION BALES. YIELDS ARE UP 16 POUNDS PER ACRE WITH A RECORD HIGH OF NINE-HUNDRED AND EIGHT POUNDS PER ACRE. THE TWO POWERFUL HURRICANES IN A TWO WEEK SPAN ALSO CAUGHT THE ATTENTION OF “NASS”. USDA SAYS HARVEY MADE DATA COLLECTION IMPOSSIBLE IN SOUTHEAST TEXAS AND SOUTHWEST LOUISIANA. SO THE AGENCY WILL COLLECT HARVESTED ACREAGE DATA ON A HOST OF CROPS THIS MONTH FOR THE OCTOBER REPORT. AS FAR AS IRMA, “NASS” WILL BE COLLECT HARVEST INFO IN THE WEEKS AHEAD FOR STATES IN THE SOUTHEAST, INCLUDING FLORIDA, GEORGIA, SOUTH CAROLINA AND ALABAMA. THAT INFO WILL COME OUT WITH THE OCTOBER REPORT.
CROP COMMENTS
MIKE HOFFMAN JOINS US WITH MORE FROM THE FARM AND TODAY’S CROP COMMENTS. GOOD MORNING MIKE. GOOD MORNING CLINTON. THIS FIRST PICTURE MAY BE WHAT’S A COMMON SIGHT IN SOUTHWEST GEORGIA. MICHAEL HANCOCK SAYS COTTON IS DOWN AND TWISTED UP IN SPOTS. FARMERS AROUND HIS ARE STARTING AT ASSESSING CROP DAMAGE. AND FROM BALDWIN ILLINOIS, DANNY BREWER SAYS CORN HARVEST IS FLYING BY. THAT’S IN SOUTHWEST ILLINOIS. THEY STARTED A WEEK AGO. HE DESCRIBES CONDITIONS IN HIS AREA AS DRY, DRY, AND DRIER. KALLAN BAHNMILLER IS A FARMER IN THE GOLDEN TRIANGLE OF MONTANA. HE’S BUSY CUTTING SAFFLOWER. SO FAR HE’S IT’S AN OK CROP WITH DECENT QUALITY. THE BIGGEST CHALLENGE IS THE SMOKE. WILDFIRES BURNING MAKING FOR HAZY DAYS. THE LOCAL WEATHER CAN HAVE A BIG IMPACT NOT ONLY ON YOUR DAY, BUT ALSO ON YOUR CROPS. START YOUR DAY OFF RIGHT WITH YOUR LOCAL FORECAST DELIVERED RIGHT TO YOUR MOBILE PHONE, JUST TEXT WEATHER TO 31313 TO GET STARTED!
ARKANSAS DICAMBA BAN
THE STATE OF ARKANSAS MOVING FORWARD ON LIMITING THE USE OF DICAMBA IN 2018. THE PESTICIDE COMMITTEE OF THE ARKANSAS PLANT BOARD ADOPTING A RECOMMENDATION TO ONLY ALLOW DICAMBA TO BE USED IN FIELD FROM JANUARY FIRST THROUGH APRIL 15TH. OFFICIALS SAY THEY DON’T EXPECT A BAN TO LAST FOREVER BUT EXPECT MORE CROP TESTING TO TAKE PLACE IN 2018. THE RECOMMENDATION NOW NEEDS APPROVAL FROM THE FULL PLANT BOARD, THE ARKANSAS GOVERNOR AND THE ARKANSAS LEGISLATIVE COUNCIL. BOTH MONSANTO AND BASF-- WHICH MAKE THE NEWLY APPROVED DICAMBABASED FORMULATIONS-- DISAGREE WITH THE DECISION SAYING IT WILL PUT ARKANSAS FARMERS AT A DISADVANTAGE.
TEASE
WE’VE TALKED A LOT OF GRAINS, UP NEXT WE’LL SWITCH OVER THE CATTLE MARKET WITH ALAN BRUGLER. AND LATER WE’RE OFF TO SOUTH DAKOTA WHERE THIS TOP PRODUCER OF THE YEAR WINNER IS STILL STRIVING FOR SUCCESS--BUT THE REASONS BEHIND HIS PURSUITS HAVE NEW MEANING.
FLOOR OF THE CME
IN AGRIBUSINESS PLENTY OF ACTION AT THE CME GROUP IN CHICAGO FOLLOWING TUESDAY’S REPORTS FROM USDA. LETS SEE HOW THINGS CLOSED FROM OUR FRIENDS ON THE FLOOR. “THE FIRST THING WE WANT TO THINK ABOUT IT IS WHAT THE OVERALL RESULTS OF THE USDA REPORT WERE AND OF COURSE THEY WERE WELL OVERSTOCKED AND WELL OVER BARISH INTO THESE MARKETS AND I THINK THAT’S KIND OF THE REACTION YOU’RE SEEING IN THESE MARKETS IS THAT THE USDA IT REALLY CAN’T GET ANYBODY INTO FEAR I THINK THAT YOU KNOW THE POSSIBLE THEY WERE UP IN THE 174 175 BUSHEL PER ACRE AND OF COURSE THAT BECAME A LITTLE RIDICULOUS FORCING PRICES INTO RIDICULOUS LEVELS. I DON’T KNOW HOW MUCH MORE ROOM YOU HAD TO THE DOWNSIDE. ANYWAY ONE OF THE THINGS YOU HAVE TO LOOK AT WHEN YOU’RE LOOKING AT THESE SPACES IS WHERE IS THE POSSIBLE POTENTIAL DOWNSIDE. SO WHAT WE’LL BE LOOKING TO DO IS TO BE A BUYER AND WE WANT TO BUY SUPPORT AT ANY LEVEL AND AS THEY COME DOWN IF THEY COME DOWN LOWER WE WANT TO LOOK FOR OPPORTUNITIES TO BUY. I BELIEVE THAT YOU’VE GOT A MUCH BETTER CHANCE TO PUSH TO THE UPSIDE. I THINK WE STILL HAVE A CHANCE TO GET BACK OVER THAT $4 LEVEL GOING INTO THE END OF THE YEAR VERSUS THAT THEY’RE GOING TO TAKE THEM DOWN. BUT AT THE END OF THE DAY I THINK YOU’LL LIKE TO BE A BUYER. THAT’S THE WAY I SEE IT THIS IS TODD HORWITZ COMING FROM THE FLOOR OF THE CME GROUP IN CHICAGO. “
AGRIBUSINESS
GRAINS MAY BE DOWN BUT CATTLE MARKETS CONTINUE TO HOLD THEIR OWN HERE IN 2017. CAN IT LAST GIVEN THE RISING SUPPLIES? TYNE MORGAN ASKS THE QUESTION FROM THE ROAD IN TODAY’S ANALYSIS. “HERE NOW WITH ALAN BRUGLER ALAN WHEN WE LOOK AT THIS CATTLE MARKET IT SEEMS JUST LIKE THE SUPPLY SITUATION IS GROWING. DOES THE SUPPLY STORY CONTINUE TO PLAY OUT WITHIN THE MARKETS. YEAH DEFINITELY DOES. IF YOU LOOK AT THE BEEF PORK AND POULTRY PRODUCTION ESTIMATES FOR THE FOURTH QUARTER THEY’RE ALL THE LARGEST IN A NUMBER OF YEARS I BELIEVE. BEEF PRODUCTION BACK TO 2007 AT THE SAME TIME YOU’RE EXPANDING HOGS EVEN MORE HOG PACKING PLANTS COMING ONLINE PRODUCERS ARE TRYING TO FEED THOSE. SO THE MARKET’S GOT ITS JOB CUT OUT FOR IT TO MOVE ALL THAT INVENTORY AND WE’RE STILL IN THE RISING PHASE OF THE CATTLE CYCLE AT SOME POINT IT NEEDS TO SEND THE SIGNAL TO TO SLOW DOWN GUYS. AND SO WE THINK CYCLICALLY THERE SHOULD BE A BOTTOM HERE IN SEPTEMBER OCTOBER AND THEN GET A LITTLE BOUNCE IN YEAR END JUST FROM FROM THE TRADING CYCLE PERSPECTIVE BUT SUPPLY WISE WE NEED TO KEEP THOSE EXPORTS MOVING BECAUSE IF THE DOMESTIC CONSUMER HAS TO EAT IT. PRICE HAS TO GO DOWN. YOU SAID A LITTLE BIT OF A BOUNCE HEADING INTO THE END OF THE YEAR BUT NOT A BIG BOUNCE. WELL IT’S GOING TO DEPEND ON HOW LOW WE GET. FIRST WE HAVE A HEAD AND SHOULDERS TOP ON THE WEEKLY CHART. THE OBJECTIVE IS 102 $102. WE ARE TRADING CASH 105 LAST WEEK. SO THAT’S STILL IN RANGE. IF WE GO ANY BELOW THAT THEN YOU’LL GET A LARGER BOUNCE AFTERWARDS I THINK. SO I MEAN YOU WANT DEMAND TO PICK UP SIGNIFICANTLY AT THIS POINT. YEAH WE SHOULD SEE BIGGER DEMAND WE SAW SOME EXCELLENT BEEF EXPORT SALES LAST WEEK THE WEAKER DOLLAR IS HELPING US WITH THAT. BUT THAT’S THAT’S THE KEY HERE IS TO GET THE PRICE CHEAP ENOUGH PUT TO PUT THE PRODUCT ON SALE AND GET THE CONSUMER TO BUY A LITTLE BIT MORE. ALL RIGHT. THANK YOU SO MUCH ALLEN WE APPRECIATE IT. STAY WITH US. WE NEED TO TAKE A CHECK OF WEATHER AND THEN WE’LL BE BACK ON AGDAY. “
WEATHER
WELCOME BACK MIKE HOFFMAN HERE LOOK AT THE ROOT ZONE MOISTURE MAP AND OF COURSE YOU KNOW THAT AREA IN THE CORN BELT. PRETTY INTERESTING PRETTY DRY BUT SOUTHERN CALIFORNIA PRETTY WET FOR THE HISTORICAL AVERAGE RIGHT COMPARED TO NORMAL IT’S VERY WET FOR THIS TIME OF THE YEAR. KIND OF AMAZING THERE. OBVIOUSLY WE EXPECT IT IN FLORIDA FROM IRMA BUT THAT IS HEADING TOWARD THE NORTH. AND YOU CAN SEE BESIDES THAT REALLY DRY AREA ILLINOIS INTO IOWA PARTS OF MISSOURI IT’S A LITTLE BIT DRY UP AND DOWN MOST OF THE PLAIN STATES AS YOU CAN SEE THERE A LITTLE BIT WET IN PLACES IN THE GREAT LAKES BUT NOT OVERLY SO. AND WE HAVE A LOT OF AREAS OUT WEST THAT ARE EITHER VERY WET OR VERY DRY BUT THAT’S KIND OF TYPICAL FOR THIS TIME OF THE YEAR. THERE’S THE WEATHER MAP THERE THERE’S THE REMNANTS OF IRMA. PRETTY CLOSE TO THE BOOT HEEL OF MISSOURI SOUTHERN ILLINOIS AREA STARTING IN NOW TAKE OFF TOWARD THE NORTHEAST. WE’LL CONTINUE TO SEE THAT MOVING THROUGH PARTS OF SOUTHERN INDIANA SOUTHERN OHIO NORTHERN KENTUCKY. THOSE WILL BE THE AREAS THAT GET THE MAJORITY OF THE RAIN BUT THERE WILL BE SHOWERS PRETTY FAR NORTH AND SOUTH OF THAT SYSTEM AS WELL AFTERNOON VARIETY SHOWERS AND THUNDERSTORMS KIND OF TYPICAL OUT WEST AND AS THEY STEP OFF THE MAP JUST A LITTLE BIT WE’LL CONTINUE TO WATCH JOSE IS KIND OF IT’S KIND OF TAKING THAT BIG LOOP THAT IT WAS DOING AND NOW IT’S STARTING TO HEAD BACK TOWARD THE WEST. SO IT’S STILL A POTENTIAL THREAT NEXT WEEK FOR THE EAST COAST HEADING THROUGH THE NIGHTTIME HOURS TONIGHT. SEE THAT RAIN WITH THE REMNANTS OF IRMA MOVING INTO THE EASTERN PORTIONS OF THE OHIO VALLEY DURING THE DAY TOMORROW. CONTINUES TO TRACK OFF TOWARD THE NORTHEAST NEXT FRONT WILL CAUSE SOME SHOWERS AND STORMS FROM THE WESTERN GREAT LAKES NORTHERN MINNESOTA BACK INTO PARTS OF THE NORTHERN ROCKIES. TAKE A LOOK AT PRECIPITATION ESTIMATE OVER THE PAST 24 HOURS. ADDING IN THE NEXT 36 YOU CAN SEE THAT THE MAJORITY IS GOING TO BE WITH THE REMNANTS OF HERMA REALLY FROM THE TENNESSEE VALLEY OHIO VALLEY INTO PARTS OF THE NORTHEAST. WE’LL ALSO SEE SOME AREAS ACROSS THE NORTHERN TIER OF STATES AS WE POINTED OUT. HIGH TEMPERATURES THIS AFTERNOON UNDER IRMO ONLY IN THE 60S. KIND OF COOL FOR THIS TIME OF THE YEAR. 80S AND 90S UP AND DOWN THE HIGH PLAINS EVEN SOME TRIPLE DIGITS IN THE DESERT SOUTHWEST. LOWS TONIGHT GOING TO BE ON THE COOL SIDE THROUGHOUT MOST OF THE CORN BELT WITH LOTS OF 60S MAYBE SOME UPPER 50S STILL 70S AND 80S IN FLORIDA AND PARTS OF TEXAS. HIGHS TOMORROW AFTERNOON. THAT WARM STARTS TO COME BACK EAST AS BURMA MOVES EASTWARD WITH THE 60S SHOWING UP IN THE EASTERN OHIO VALLEY FOR HIGHS. THAT’S ALL BECAUSE OF THE TROUGH FROM IRMA. AND YOU CAN SEE IN OUR JET STREAM THAT WILL FINALLY GET TO TAKE IT OFF TOWARD THE NORTHEAST. THEN WE HAVE A RIDGE DEVELOPING FOR MUCH OF THE EAST. BIG TROUGH OUT WEST KIND OF A FLIP FLOP IN THE WEATHER PATTERN THERE. THAT’S A LOOK ACROSS THE COUNTRY. NOW LET’S TAKE A LOOK AT SOME LOCAL FORECASTS. FIRST OF ALL FOR BOISE IDAHO A MIX OF SUN AND CLOUDS TODAY HIGH TEMPERATURE OF 86 DEGREES. PUNKA CITY OKLAHOMA SUNNY AND RATHER WARM HIGH NEAR 90. AND FINALLY IN LANSING MICHIGAN CLOUDS AND SUNSHINE MAYBE A SHOWER HIGH OF 75.
TEASE
SURVEYING CROP DAMAGE IN FLORIDA FROM OUR PARTNERS AT THE PACKER. THAT’S NEXT. AND LATER THIS SOUTH DAKOTA TOP PRODUCER HAS NEW HOPE FOR THE FUTURE OF HIS FARM...
PACKER TV
ON THE PACKER TV, HURRICANE IRMA’S PATH ACROSS THE STATE OF FLORIDA BRINGS WITH IT DAMAGE TO BOTH CITRUS AND VEGETABLES. ACCORDING TO EDITORS AT THE PACKER, FLORIDA CITRUS AND EARLY PLANTED VEGETABLES IN SOUTH FLORIDA WERE DAMAGED IN HURRICANE IRMA OVER THE WEEKEND. GROWERS ARE JUST NOW STARTING TO GET A HANDLE ON THE DAMAGE. THE FLORIDA FRUIT AND VEGETABLE ASSOCIATION SAYS THEY DON’T HAVE AN EXACT LOSS OR DAMAGE ESTIMATE YET. BUT FROM TALKING WITH CITRUS GROWERS, MANY GROVES SAW HEAVY FRUIT DROP--WITH CITRUS FALLING ON THE GROUND. OTHER GROVES ARE NOW FLOODED--AND WAITING FOR WATERS RECEDE. ON THE VEGETABLE SIDE, PLANTING WAS JUST GETTING STARTED--MOST OF THE DAMAGE IS TO BEDDING AND IRRIGATION TAPE. OFFICIALS SAY THERE MAY BE GAPS IN VEGETABLE PRODUCTION LATER THIS YEAR. THE UNITED FRESH PRODUCE ASSOCIATION IS RAISING FLAGS OVER A NEWLY INTRODUCED LEGISLATION THAT WOULD EVENTUALLY REQUIRE ALL EMPLOYERS USE THE E-VERIFY SYSTEM WHEN HIRING. UNITED FRESH ARGUING THAT A COMPREHENSIVE IMMIGRATION SOLUTION FOR AGRICULTURE AND IT’S WORKERS SHOULD HAPPEN FIRST. IT SAYS THAT COULD INCLUDE MOVING FALSLEY DOCUMENTED WORKERS TO LEGAL STATUS WHERE APPROPRIATE AND CREATE A NEW GUEST WORKER PROGRAM. THOSE IN SUPPORT OF EXPANDED E-VERIFY SAY THE BILL ENSURE JOBS ONLY GO TO LEGAL WORKERS.
TEASE
UP NEXT WE’RE CATCHING UP WITH A TOP PRODUCER...INCLUDING HOW HIS FARM AND HIS FUTURE HAS CHANGED SINCE OUR LAST VISIT.
IN THE COUNTRY
IN THE COUNTRY - SPONSORED BY KUBOTA. SEE THE HARDEST WORKING TRACTORS IN AG AT KUBOTA.COM. OR VISIT YOUR LOCAL KUBOTA DEALER TODAY. EVERY YEAR, OUR CORPORATE COUSINS AT TOP PRODUCER MAGAZINE HONOR A SUCCESSFUL FARMER WITH THE TITLE OF TOP PRODUCER OF THE YEAR. AGDAY IS PARTNERING WITH THE MAGAZINE TO FOLLOW UP WITH FORMER CANDIDATES IN A NEW SERIES CALLED, ‘JOURNEY TO THE TOP’ IN HOPES OF SEEING HOW THEIR OPERATIONS HAVE EVOLVED. OUR FIRST VISIT IS TO GREGORY, SOUTH DAKOTA AND THE FARM OF THE 2014 TOP PRODUCER WINNER, LEE LUBBERS. FARMING HAS ALWAYS BEEN A LEGACY-BASED BUSINESS FOR GREGORY, SOUTH DAKOTA PRODUCER, LEE LUBBERS. “OUR GREAT GRANDFATHER WAS THE FIRST GENERATION TO FARM IN AMERICA WHEN THEY CAME OVER..."THE FOURTH GENERATION FARMER PRIDES HIMSELF ON HIS ROOTS... “HE CAME OVER THROUGH ELLIS ISLAND WHEN HE FIRST CAME FROM EUROPE,"VALUING THE FARM’S FOUNDATION AND ITS POTENTIAL FOR THE FUTURE.. “WE ALWAYS KNEW IT COULDN’T BE A PIECE OF PAPER. CAN’T BE AGREEMENTS AND TRUST. THERE HAS TO BE CULTURE BEHIND IT,"SINCE THE LUBBERS BROTHERS TERRY AND LEE WON THE TOP PRODUCER OF THE YEAR AWARD IN 2014 - THE OPERATION HAS DRASTICALLY TRANSFORMED. BOTH BROTHERS GOT MARRIED AND STARTED THEIR OWN FAMILIES... THREE LITTLE GIRLS SET TO SOMEDAY TAKE OVER THE FARM. “COULDN’T LOVE 10 SONS MORE THAN OUR 3 LITTLE GIRLS. THAT’S WHAT MY BROTHER AND I SAY EVERYDAY,"AND NOW THE FIFTH GENERATION IS HAVING A BIG INFLUENCE ON THE BUSINESS SPANNING 20-THOUSAND ACRES OF CORN, SOYBEANS AND WINTER WHEAT IN SOUTHCENTRAL SOUTH DAKOTA. “WE KNOW OUR DAUGHTERS COULD RUN THIS FARM NOT JUST AS GOOD AS WE DO BUT BETTER AND TAKE IT IN NEW DIRECTIONS. WE’RE EXCITED ABOUT IT,"THE LUBBERS ARE ALREADY TAKING THE SUCCESSION PLAN TO THE NEXT LEVEL- WORKING ON TRUST-PURCHASE AGREEMENTS AND LIFE INSURANCE, KNOWING THE GIRLS WILL HAVE FLEXIBILITY. “OUR FARM WILL STAY TOGETHER AS A WORKING UNIT. THEY CAN BE ABSENTEE OWNERS, THEY CAN BE INVOLVED IN PRODUCTION EVERYDAY, THEY CAN OVERSEE THE FARM AND HAVE OTHER BUSINESS ENTITIES WE BUILT UP OVER THE YEARS..."CHANGES THAT INCLUDE TRIUMPHS AND DISAPPOINTMENTS “WE’RE NEXT YEAR COUNTRY. WE’LL KEEP GOING AHEAD AND 2018 WILL BE BETTER,"DROUGHT PLAGUED THE 2017 GROWING SEASON THROUGHOUT MUCH OF SOUTH DAKOTA... THE FIRST RAIN IN MONTHS BROUGHT HAIL. “HAIL AND 80 MPH WINDS AND IT JUST CAME SIDEWAYS,"THE RESULT IS HARD TO ACCEPT BUT EASY TO CALCULATE. “THERE’S 12 HUNDRED ACRES IN THIS FIELD AND IT TOOK ABOUT 2/3RDS OF THE YIELD OFF OF IT,"THE LUBBERS WERE FORTUNATE ENOUGH TO COMBINE ALL OF THEIR WINTER WHEAT DURING THIS TOUGH SUMMER... OTHERS WERE NOT SO LUCKY. “WE HAVE FRIENDS UP NORTH WHO WOULD HAVE HAD 10 TO 15 THOUSAND ACRES OF WHEAT TO CUT AND THEY CUT AH THOUSAND TO THREE THOUSAND. SOME NEVER FIRED UP A COMBINE THIS YEAR,"WHEN DROUGHTS HIT AND NET FARM IN COME IS DOWN LUBBERS SAYS HE’S LEAVING EMOTION OUT OF HIS MARKETING PLAN. “A DROUGHT IS PHYSIOLOGY CRIPPLING. IT CAN BE IF YOU CHOOSE FOR IT TO BE THAT WAY 17 BUT WE LEAVE EMOTION OUT OF IT. IT’S NUMBERS. THAT’S WHAT WE’RE GOING TO WORK WITH, NUMBERS.” THAT’S WHY HE SAYS IT’S IMPORTANT TO KEEP THE INVENTORY HE HAS SECURE. THE FAMILY HAS REPLACED OLD BINS WITH NEW ONES - NOW WITH A TOTAL CAPACITY OF ABOUT 1.5 MILLION BUSHELS. AS SOME OF THE FIRST PRODUCERS IN THE UPPER MIDWEST TO INSTALL A BIN- MONITORING SYSTEM.. IT CAN CHECK TEMPERATURE AND HUMIDITY WHILE SAVING POWER. “I CAN BE IN CHICAGO AT THE AIRPORT, AND IT WILL NOTIFY ME WHICH BIN KICKS IN, WHICH FAN AND WHAT IS GOING ON AND THE REASON WHY,"IT CAN HYDRATE THE CROP AS WELL. “SINCE WE’RE FAR WEST, WE GET 8 OR 9 PERCENT BEANS. WE CAN PUT IT IN THE BIN, AND THREE MONTHS WE CAN HYDRATE THEM TO 13 PERCENT AND GAIN THREE BUSHELS."FOR THIS OPERATION, CHANGE IS CONSTANT.. THE WAY THE LUBBERS PREFER IT . “WE’VE ALWAYS EMBRACED THAT. WE’RE NOT THE SAME OPERATION WE WERE FIVE OR 10 YEARS AGO. WE’RE NOT THE SAME PEOPLE,"PRESERVING YET EVOLVING KEEPING THE FARM MOVING AND STANDING FOR THE FUTURE.REPORTING IN GREGORY, SOUTH DAKOTA, I’M BETSY JIBBEN. THANKS BETSY. YOU CAN READ MORE ABOUT THE LUBBERS OPERATION IN THE LATEST ISSUE OF TOP PRODUCER MAGAZINE.
CLOSE
THAT’S ALL THE TIME WE HAVE THIS MORNING. WE’RE GLAD YOU TUNED IN. FOR BETSY JIBBEN, MIKE HOFFMAN, AND TYNE MORGAN. I’M CLINTON GRIFFITHS. HAVE A GREAT DAY. AGDAY IS POWERED BY RAM TRUCKS - AMERICA’S LONGEST LASTING PICKUPS.
