TODAY ON U.S. FARM REPORT
MAY 27-28, 2017
LADIES AND GENTLEMAN, START YOUR ENGINES.. IT’S A A SPECIAL EDITION OF U.S. FARM REPORT FROM THE INDIANAPOLIS 500 SPEEDWAY. I’M TYNE MORGAN, AND ON THIS RACE WEEKEND, HERE’S WHAT WE’RE WORKING ON FOR YOU THESE DRIVERS RUN ON MILK AND ETHANOL...AND SO WE’LL BREAK DOWN BOTH WITH TWO MARKET EXPERTS... WE CONTINUE TO PUSH COWS WE CONTINUE TO PUSH MILK AND I DON’T SEE THAT BACKING OFF. MORE THAN JUST THE WINNER, IT’S MILK IN WINNER’S CIRCLE ON RACEDAY... AHEEAD IN THE SHOW WE’LL INTRODUCE YOU TO THE MAN BEHIND THE MILK."> FOR ONE DAIRY PRODUCING FAMILY.. THE CARE ABOUT MORE THAN JUST THEIR COWS PRODUCING HIGH- QUALITY MILK.. <"WE LEARNED THAT WE WERE GOING TO HAVE TO DO SOMETHING DIFFERENT THAT JUST PAY A GOOD WAGE,"> MEET THE REAL FACES OF DAIRY AND IN JOHN’S WORLD.. REPLANT. TO ME IT’S A FOUR LETTERWORD.
CROP PROGRESS
NOW FOR THE MARKET RELATED NEWS, WITH MORE RAIN, U-S CORN PLANTINGS FALLING BEHIND THIS WEEK. BUT ONLY BY A POINT. HE U-S DEPARMENT OF AGRICULTURE SAYS 84 PERCENT OF THE CROP IS PLANTED, A POINT BEHIND AVERAGE. BUT THAT’S A 13 POINT JUMP IN A WEEK. 54 PERCENT IS EMERGED, ALSO LAGGING BY A POINT. SOYBEAN PLANTING IS NOW AHEAD, BUT ALSO BY JUST A POINT. 53 PERCENT IS PLANTED, A 21 POINT JUMP IN A WEEK’S TIME. 19 PERCENT OF HTE CROP IS EMERGED, DOWN 2 POINTS FROM NORMAL. AND COTTON PLANTING GAINING PACE, AT 52 PERCENT, THAT’S NOW TWO POINTS AHEAD. THE LATEST NUMBERS NOT ACCOUNTING FOR REPLANT, AND IT COULD BE ONE OF THE WORST YEARS FOR REPLANTING ON RECORD. BUT FARM JOURNAL AGRONOMIST KEN FERRIE TELLING US THAT DURING HIS 30 YEARS OF AGRONOMY, THIS IS THE MOST REPLANT HE’S SEEN ACROSS ILLINOIS. HE SAYS HE’S SEEN WORSE LOCALIZED ISSUES BEFORE, BUT NOTHING THIS WIDESPREAD, ESPECIALLY FOR THE MIDDLE TWO-THIRDS OF THE STATE. FROM RAIN, TO COLD CONDITIONS, TO SOIL CRUSTING OVER, ILLINOIS FARMERS ARE FACING IT ALL THIS YEAR. ALL THAT RAIN REALLY PROVIDING RELIEF IN THE LATEST DROUGHT MONITOR, WITH ONLY 14 PERCENT OF THE COUNTRY SEEING DROUGHT. THAT MARKS A NEW RECORD LOW FOR THE DROUGHT MONITOR. BUT IT’S NOT ROSEY EVERYWHERE. DRYNESS EXPANDING A LITTLE IN NORTH AND SOUTH DAKOTA,
OPEC CUTS IN OIL
OPEC DECIDED THIS WEEK TO EXTEND CUTS IN OIL PRODUCTION BY NINE MONTHS, NOW TO MARCH 2018. BUT THAT NEWS WAS UNDERWHELMING TO INVESTORS, WITH OIL PRICES TAKING A SHARP DROP THURSDAY, PLUNGING 5 PERCENT. THE TRADE WANTED CUTS TO LAST EVEN LONGER, TO HELP THE GLOBAL GUT OF OIL PRESSURING PRICES FOR NEARLY THREE YEARS.
WEATHER
THOSE ARE THE HEADLINES...IT’S TIME NOW FOR A CHECK OF WEATHER. METEOROLOGIST CINDI CLAWSON IS FILLING IN FOR MIKE HOFFMAN THIS WEEK. CINDI. IT’S NICE AND SUNNY HERE IN INDY, BUT I KNOW THAT’S NOT THE CASE EVERYWHERE. NO IT CERTAINLY IS AND IT WILL GET TO THE MAPS IN JUST A ONE WAY. LET’S START YOU OFF WITH THE LATEST U.S. DROUGHT MONITOR AND BOY HAVE WE SEEN SOME REAL IMPROVEMENT OVER THE SOUTHERN PARTS OF THE COUNTRY AND ESPECIALLY OUT IN THE SOUTHWEST WITH SINCE THE LAST TIME YOU SAW ME ON THIS SHOW. BUT WE STILL HAVE SOME DRY POCKETS ESPECIALLY IN FLORIDA AND PARTS OF THE SOUTHEAST. AND WE DO HAVE SOME DRYNESS IN PARTS OF THE NORTH CENTRAL UNITED STATES AS WELL. THIS IS WHAT IT LOOKED LIKE OVER THE PAST FOUR WEEKS AND YOU CAN SEE THAT WE STILL HAVE SOME MORE POCKETS IN SOME OF THE NATION’S MIDSECTION CERTAINLY THE SOUTHEAST WAS A LOT DRIER. BUT AS WE WENT THROUGH TIME WE DID SEE SOME DECENT IMPROVEMENT ACROSS THE AREA ESPECIALLY IN THE SOUTHEASTERN UNITED STATES. ALL RIGHT HERE’S A LOOK THEN AT HOW THINGS ARE SHAPING UP AS WE HEAD THROUGH THE WEEKEND. WE’RE GOING TO BE SEEING SOME WET WEATHER IN A FAIR AMOUNT OF THE EASTERN PART OF THE U.S. MIGHT BE A LITTLE BIT MORE SPOTTY RIGHT IN HERE BUT WE’VE GOT A LOW PRESSURE SYSTEM ACROSS THAT’S GOING TO BE AFFECTING THE GULF COAST STATES DOWN IN THROUGH TEXAS AND EVEN INTO THE FOUR CORNERS REGION. WE’VE GOT ANOTHER LOW WITH A FRONT EXTENDING THROUGH MUCH OF THE EAST AND WE HAVE YET ANOTHER FRONT THAT’S DRAPED ACROSS THE NORTHERN TIER STATES SO LOOK FOR SOME RAIN AND A DECENT PART OF THE COUNTRY BY WEDNESDAY. HIGH PRESSURE SETTLES INTO MUCH OF THE CORN BELT AREA AND INTO THE NORTHERN PLAINS SO WE’LL SEE THINGS DRYING OUT AT LEAST FOR A LITTLE BIT. WE’LL SEE SOME RAIN IN THE GREAT UPPER GREAT LAKES OR TO THE LOWER GREAT LAKES THE EASTERN GREAT LAKES INTO THE NORTHEAST AND WE’RE GOING TO SEE SOME RAIN ALONG THE GULF COAST STATES AND INTO THE SOUTHERN PLAINS ALSO INTO THE PACIFIC NORTHWEST. AND AS WE GET INTO FRIDAY WE’LL SEE ANOTHER COUPLE OF FRONTS AFFECTING ESPECIALLY THE NATION’S MIDSECTION THE SOUTHEAST AND INTO THE WESTERN GULF COAST STATES ALL THE WAY INTO THE NORTHWESTERN UNITED STATES. WE’LL HAVE SOME MORE WEATHER COMING UP A LITTLE BIT LATER ON IN THE SHOW. TYNE THANKS, CINDI.
TEASE
THIS RACE RUNS ON ETHANOL AND THE WINNING DRIVER RUNS ON MILK. SO, DAIRY AND ETHANOL WILL BE THE FOCUS OF THIS WEEK’S MARKETING ROUNDTABLE. MIKE NORTH AND TED SEIFRIED JOIN ME ON THE RACETRACK NEXT.
ROUNDTABLE 1
WELCOME BACK TO U.S. FARM REPORT ON THIS RACE WEEKEND HERE ON THE WINNER’S PODIUM. WE HAVE MIKE NORTH OF COMMODITY RISK MANAGEMENT GROUP AND TED SEIFFERT OF ZANIER AG HEDGE. WE WILL HAVE SOME AMBIANT OUT CAR NOISE IN THE BACKGROUND SO WE WILL WORK AROUND THAT THIS WEEKEND. ALL RIGHT TED TO GET IT STARTED. WE’RE GOING TO TALK WE’RE GOING TO FOCUS ON MILK WE’RE GOING TO FOCUS ON ETHANOL SINCE THE WINTER’S DRINK MILK AND THE CARS ARE FUELED BY ETHANOL. BUT WE CANNOT TALK ABOUT THE ELEPHANT IN THE ROOM. YOU CAN CALL THIS THE ROOM. THE CORN CROP. AND WE LOOK AT ALL THE RAIN. WE LOOK AT ALL THE REPLANT. FARMERS ARE FRUSTRATED THAT THIS MARKET HAS NOT RESPONDED FAVORABLY OR AS FAVORABLY AS SOME WOULD LIKE. DO YOU THINK THAT WE HAVE THIS POTENTIAL TO RALLY IN THE NEXT TWO WEEKS BASED ON ALL THIS MOISTURE?? WELL YOU HAVE A GOOD LOOKING CHART. IF WE CAN HOLD ON TO THE RECENT STRENGTH THAT WE’VE HAD. BUT YEAH YOU KNOW LET’S LOOK AT ARGENTINA THIS LAST YEAR. WE HAD A TON OF FLOODING DOWN IN ARGENTINA. USDA STARTED TO 57 MILLION METRIC TON SOYBEAN CROP. THE TRADE BROUGHT THAT NUMBER DOWN ALL THE WAY DOWN TO 51 52 MILLION. AND WHERE DID WE END UP? 57 MILLION. SO I THINK THE MORAL OF THE STORY IS FOR WHATEVER’S NOT FLOODED OUT, THE YIELD POTENTIAL STILL VERY MUCH THERE. YOU’RE PROBABLY GOING TO TAKE A HIT ON YOUR HARVESTING ACREAGE NUMBERS DEPENDING ON WHETHER WE CAN GET REPLANT DONE OR NOT. BUT I STILL I STILL THINK RIGHT NOW YOU HAVE THE POTENTIAL AND WE’VE GOTTEN USED TO HAVING THE SPRING RALLY. I THINK PRODUCERS ARE GOING TO BE DISAPPOINTED WHEN WE DON’T HAVE THAT. I DO STILL THINK WE’LL HAVE A RALLY AT SOME POINT THIS YEAR IT MIGHT JUST BECOME MIGHT JUST BECOME LATER THAN WHEN MOST PEOPLE ARE EXPECTING. IT MIGHT HAPPEN AFTER GUYS ALREADY SOLD OLD CROP CASH. MIKE WHEN WE LOOK AT THESE PLANTING THIS PLANTING REPORT YOU KNOW WHEN WE SEE FARMERS ARE JUST A POINT BEHIND IN THIS CORN CROP NOT MUCH BUT IT DOES NOT TAKE INTO CONSIDERATION REPLANT AND REPLANTING AGAIN AND THINGS LIKE THAT. RIGHT I MEAN IS THAT REALLY GOING TO START TO SHOW UP IN THE CONDITIONS RATINGS. THAT’S WHERE I WOULD HAVE TO SHOW UP BUT THAT’S STILL A LONG WAYS OFF EARLY. NOBODY GETS TOO EXCITED ABOUT ANY OF THAT BECAUSE GOING BACK TO TED’S STATEMENT, WE HAVE SEEN WET SPRINGS. WE HAVE SEEN MOISTURE COME AT US BEFORE. AND THAT’S REALLY KIND OF THE KEY HERE. WE’VE GOT MOISTURE AND SO IT TAKES AWAY A LOT OF THAT CONVERSATION THAT MAY BE COMING LATER. AND LET’S NOT ALSO FORGET THAT WE HAVE A BIG SUPPLY. AND SO IF WE WANT TO TALK ABOUT A RALLY WHETHER IT’S JUSTIFIED OR NOT, YOU ALSO HAVE TO HAVE A MOTIVATED BUYER. AND RIGHT NOW THE BUYERS ARE NOT MOTIVATED. YOU CAN SEE IT IN CASH VALUES AND YOU CAN SEE IT AS AS WE COME INTO THESE THESE TRADES. WE GET UP TO ABOUT 3.95 DEC CORN ALL THE INTEREST WALKS AWAY. HEY I’M GOING TO BE THE DEVIL’S ADVOCATE HERE WHEN WE LOOK AT ALL THIS MOISTURE WE LOOK AT NUTRIENT RUNOFF. YOU WOULD HAVE TO THINK THAT WE ARE GOING TO SEE A YIELD DRAG I UNDERSTAND THAT’S NOT PRICED IN THE MARKET AT THIS POINT. BUT ONE WOULD THINK WE’RE GOING TO SEE THIS THIS DRAG. THE OTHER THING TOO IS THAT YOU KNOW USDA’S EXPECTATION OF A 171 NATIONAL AVERAGE YIELD THAT WOULD EQUAL THE SECOND BEST YIELD WE’VE EVER SEEN. SO WE’VE GOT A VERY LOFTY EXPECTATION GOING IN. I DON’T THINK YOU’RE SEEING ACREAGE EXPAND IF ANYTHING THAT’S PROBABLY COMING DOWN. SO YEAH I GET THAT. I THINK THE LAST USDA REPORT WE SAW. PROBABLY IS GOING TO SHOW US OUR BIGGEST BALANCE SHEET, OUR BIGGEST CARRY OVER BECAUSE PRODUCTION NUMBER HAS REALLY COME DOWN FROM THERE BASED ON ACREAGE. AND I ALSO WONDER IF THE EXPORT NUMBER IS THEY’VE TAKEN TOO MUCH FROM ONE YEAR TO THE NEXT 350 MILLION BUSHEL DROP. SO I LIKE THE STORY FOR CORN THROUGH THE SUMMER. I JUST DON’T KNOW IF WE HAVE TO HAVE THIS RALLY BASED ON TOO WET CONDITIONS RIGHT NOW. ALL RIGHT SO MIKE WHAT DO YOU THINK THE LIKELIHOOD IS AND THEN WE’LL GET OFF THIS CORN TALK. WHAT DO YOU THINK THE LIKELIHOOD IS THAT WE COULD SEE A RALLY IN THIS CORN CROP IN THE NEXT COUPLE OF WEEKS. I THINK IT’S VERY POSSIBLE BUT IT WOULD BE MUTED. I’M NOT LOOKING FOR A LARGE EXPLOSIVE $4 AND 50 TO $5 TYPE OF A MOVE. I’M NOT. COULD WE SEE 405 4 20. YEAH THAT’S A POSSIBILITY. LET’S FACE IT WE’VE GOT FUNDS IN A BIG SHORT POSITION. THEY’RE SITTING HERE IDLE FOR THE MOST PART. AND IF WE COULD MOTIVATE THE MONEY TO MOVE WE’VE GOT ROOM FOR 20 OR 30 CENTS. THIS WEEK AS WE DID SEE SOME OF PRICES INCREASE DO YOU THINK THAT WE DID SEE SOME FARMERS SELL. YEAH I KNOW. I KNOW WE HAD SOME PRODUCERS SELLING HAPPENING WITH THE STRENGTH THAT WE SAW ON FRIDAY AND THEN AGAIN ON MONDAY. IT’S GOING TO HAPPEN. BUT AS MIKE WAS POINTING OUT WE HAVE A VERY LARGE FUND SHORT POSITION. AT SOME POINT WE’RE GOING TO CLEAR THEM OUT. IT’S NOT VERY TYPICAL FOR THEM TO KEEP THAT POSITION THIS FAR INTO GROWING SEASON USUALLY THEY’RE FLAT BY NOW HEADING THERE.YOU THINK THAT’S GOING TO HAPPEN BUT IT NEEDS THAT SPARK. AND I DON’T KNOW IF THAT SPARK HAPPENS IN THE NEXT TWO WEEKS BUT AT SOME POINT IN THE GROWING GROWING SEASON I THINK WE CAN GET THAT SPARK. REAL QUICK THOUGH IF WE DO SEE A LITTLRALLY IN THE CORN CROP DOES THAT COME AT THE EXPENSE OF SOYBEANS. IT MAY. BUT THE THING THAT WE HAVE TO REMEMBER IS THAT SOYBEAN EXPORT ACTIVITY HAS REMAINED AT A PACE THAT EVERYBODY IS STILL PRETTY EXCITED ABOUT. AND SO SOYBEANS HAVE BEEN SLOW TO GIVE AWAY ANY ANY PREMIUM THAT THEY’RE CARRYING BECAUSE THERE’S STILL THAT HOPE THAT WE CAN BALANCE THIS BIG CROP WITH BIG DEMAND.BUT THERE’S GOING TO BE A LOT OF QUESTION ABOUT THAT AFTER THE BIG DROP IN THE BRAZILIAN REALE THE BRAZILIAN PRODUCERS BEEN MORE AGGRESSIVELY SELLING AS WELL. SO WHETHER THOSE EXPORTS STAY LIKE WE THOUGHT. I MEAN FOR A MINUTE THERE LOOKS LIKE WE WERE GOING TO BE COMPETITIVE THROUGH AUGUST. NOW IT’S A BIG QUESTION MARK. THAT THAT IS A VERY TRUE POINT. ALL RIGHT WELL WE NEED TO TAKE A BREAK ON THIS RACE WEEKEND. WHEN WE COME BACK I PROMISE WE’RE GOING TO TALK MILK AND ETHANOL THIS MEMORIAL DAY WEEKEND SO DON’T GO ANYWHERE.
ROUNDTABLE 2
WELCOME BACK TO THE INDIANAPOLIS 500 ON RACE WEEKEND AGAIN WE HAVE SOME CARS RUNNING BEHIND US SO IT MAY BE A LITTLE LOUD IN THE. BUT LET’S FOCUS ON ETHANOL AND DAIRY TED STARTING WITH YOU DO YOU THINK 2017 THE REST OF 2017 WILL GET EVEN MORE INTERESTING FOR ETHANOL. ABSOLUTELY. A LOT OF MOVING PARTS THIS YEAR BECAUSE WITH THE BIG IMPORT TARIFFS THAT CHINA IS PUTTING ON DVG’S AND ETHANOL WE’RE GOING TO SEE THEIR IMPORTS LIKELY DROP ALTHOUGH THAT’S GOING TO BE A BIG AREA OF CONTENTION WE BELIEVE WITH THE TRUMP ADMINISTRATION IN TRYING TO NEGOTIATE WITH CHINA AT THE SAME TIME WHERE WE’RE A LITTLE BIT WORRIED ABOUT BRAZIL BRAZIL HAD TO IMPORT A FAIR AMOUNT OF ETHANOL LAST YEAR BECAUSE THEY HAD A SHORTER SUGAR FEED CROP AND THEY NEEDED TO OFFSET SOME OF THEIR LOSS. THEY’RE MOVING THERE. THEY WANT TO RAISE THEIR IMPORT TARRIFS. WHICH ARE ON HOLD RIGHT NOW UNTIL 2019 THERE’S A THERE’S A MOVEMENT THERE TO PUSH THAT BACK UP AGAIN. ON THE OTHER SIDE OF THAT COIN THOUGH YOU HAVE WHAT’S HAPPENING HERE DOMESTICALLY. THERE’S A BIG MOVE TOWARDS E-15. YOU’VE GOT DONNELLEY GRASSLEY LOOKING TO TRY TO EXTEND THE RVP TO RELIEVE PRESSURE. TWO BLENDS ABOVE AND BEYOND E10 SO E15 WOULD BECOME IN THAT MIX AND THAT MAKES AND THAT IS THE HUGE HURDLE WE NEED CROSS IN ORDER TO REALLY EXPAND E-15 USAGE DOMESTICALLY. BUT WE’VE SEEN THIS PUSH TO E-15 BEFORE SO WHAT CHANGES THIS YEAR. YOU KNOW WHAT WHAT MAKES MAYBE THIS YEAR THE YEAR THAT WE CAN GET SOMETHING PASSED. WELL IF WE CAN IF WE CAN IF WE CAN GET IT PASSED AND WE CAN GET THE BLENDR CREDITS YOU’RE GOING TO SEE THAT HAPPEN IT’S GOING TO MOVE IN TO RETAIL OUTLETS A A LOT SOONER YOUR BLUNDERS ARE GOING TO WANT TO USE THAT. SO THAT HAS THE POSSIBILITY PLUS YOU REALLY GET THE FEELING THAT YOU KNOW JUST THE TALK THAT WE’VE HAD ABOUT E-15 LATELY IT SEEMS A LOT MORE POSITIVE BOTH IN THE MEDIA AND ALSO POLITICALLY. IT SEEMS THAT CONSUMERS BECOME MORE AWARE. I THINK THERE’S SOME SOME SOMETHING THERE AND THEN ONE OTHER THING. INDIA IS ABOUT DOUBLED THEIR EXPORTS A YEAR OVER YEAR SO THAT MIGHT HELP TO OFFSET SOME OF THE EXPORTS. SPEAKING OF EXPORTS MIKE HOW ARE WE SETTING ON ON DAIRY EXPORTS. SO FAR THIS YEAR AND LOOKING AT THE WORLD MARKET. WE’VE HAD A REALLY GOOD RUN ON EXPORTS AND MOSTLY IN THE PROTEIN CATEGORIES AND IN THE POWDER CATEGORIES AND THAT’S BEEN REALLY HELPFUL FOR US. HOWEVER WE’RE STARTING TO RUN INTO A PLACE WHERE WE’RE RUN WE’RE SEEING A LOT MORE COMPETITION GLOBALLY AND WE’RE JUST NOT GETTING THE COMPETITIVE EDGE LIKE WE LIKE WE HAVE NOW. THE WEAKENING OF OUR DOLLAR. THAT IS A BIG THING AND IN THE LAST MONTH AND A HALF THAT’S AGAIN SAID IT OPENS DOORS FOR US THAT MAY BRING US BACK INTO THAT CIRCLE WHERE WE START TO PICK UP SOME MORE BUSINESS. SO WE NEED TO SEE SOME MORE WEAKNESS IN THE U.S. DOLLAR. THAT WOULD BE VERY HELPFUL. WE’VE WE’VE GOT THE DOLLAR TRADING IN THAT 96 TERRITORY. NOW IF WE COULD IF WE COULD TAKE THEM DOWN EVEN ANOTHER 300 OR 400 BASIS POINTS THAT THAT WOULD BE VERY HELPFUL. WELL MIKE IN THIS LATEST MILK PRODUCTION REPORT WE SEE MILK PRODUCTION IS CONTINUING TO INCREASE. I MEAN WHAT’S THE LIKELIHOOD THAT WE SEE THE SUPPLY SITUATION SLOWDOWN. WELL YOU KNOW WE’VE ALWAYS HAD THIS IS THIS MODEL IN THE UNITED STATES WHERE IN REALLY GOOD TIMES WE HAD COWS WE GROW THE HERD WE WE BRING ON MORE MILK PRODUCTION AND IN BAD TIMES WE GO FOR THE GROSS REVENUE SCORE. RIGHT. WE WE CONTINUE TO ADD COWS WE CONTINUE TO PUSH MILK AND I DON’T SEE US BACKING OFF OF THAT. THIS LAST REPORT HAD US OVER 2 PERCENT. WE’VE BEEN SHOWING SOME 3 PERCENT GROWTH IN PREVIOUS MONTHS. THIS IS A SITUATION THAT’S NOT GOING AWAY ANYTIME QUICK. WE ADDED 7000 COWS. GUYS DON’T DO THAT AND THEN BACK AWAY FROM THE TABLE. SO YOU’RE NOT VERY FAVORABLE ON MILK PRICES HERE IN THE NEXT QUARTER. I AM HOPEFUL THAT THIS THIS LOSS IN DOLLAR VALUE OPENS UP SOME EXPORT ACTIVITY FOR US. BUT WE DON’T HAVE THE DOMESTIC GROWTH TO JUST CONTINUE TO SOAK UP ALL THIS ADDITIONAL MILK. SO IF WE DON’T GET THE EXPORTS THAT’S WHERE THINGS ARE GOING TO BE SOFTER. BUT THE THE REALITY FOR US IS GERMANY AND FRANCE HAVE BEEN A BIT A LITTLE BIT LOWER IN THEIR PRODUCTION IN THE SPRING CONDITIONS HAVEN’T BEEN QUITE AS FAVORABLE AS THEY HAD HOPED. BUT YOU KNOW BUTTER DEMAND AROUND THE WORLD FAT DEMAND JUST IN ITS ENTIRETY HAS BEEN VERY STRONG AND SO THERE’S THERE’S SOME BUDDING OPTIMISM THERE BUT WE STILL HAVE THE RISK OF THIS MASSIVE DOMESTIC SUPPLY THAT WE HAVE TO WORK THROUGH AND THAT IS WHAT WE CARRY FORWARD THROUGH THE SUMMER AND THE RISK THAT WE’LL FACE AND IN WHAT WILL ULTIMATELY OFFSET THOSE EXPORT HOPES. SO AS A DAIRY PRODUCER REAL QUICK WHAT CAN YOU DO WITH CURRENT PRICES. WELL WE’VE GOT A $17 AND 20 CENT AVERAGE IN THE SECOND HALF OF THE YEAR. IT’S REAL SIMPLE TO GO OUT THERE AND START ATTENDING TO THAT WHETHER IT BE WITH FUTURE STRATEGIES OPTIONS STRATEGIES WORKING WITH YOUR PLANT. BUT I WOULD SUGGEST TO PRODUCERS THAT THEY REMAIN NIMBLE $17 REPRESENTS THE UPPER END OF THE AVERAGE OVER THE LAST 10 YEARS. ATTEND TO IT BUT GIVE YOURSELF SOME TOPSIDE MOBILITY TOO IF SOMETHING SHOULD CHANGE AND SHIFT ALL OF THESE FUNDAMENTALS. ALL RIGHT. THANK YOU BOTH. WE APPRECIATE IT. WE’RE GOING TO TAKE A QUICK BREAK. THIS MEMORIAL DAY WEEKEND WHEN WE COME BACK WE’RE GOING TO GET BOTH OF THEIR CLOSING THOUGHTS HERE ON U.S. FARM REPORT.
MARKETS NOW
WELCOME BACK TO U.S. FARM REPORT. CLOSING THOUGHTS FROM THE RACE TRACK LET’S START WITH YOU. I’M GOING TO SAY I’M FRIENDLY FOR CORN PRICES OR THE POSSIBILITIES THAT WE HAVE FOR THIS GROWING SEASON WHILE WE HAVEN’T GOTTEN THAT BIG TOO WET RALLY LIKE A LOT OF US HAVE HAD HOPED FOR. I DO THINK WE’LL SEE SOMETHING HERE DURING THE GROWING SEASON AGAIN YOU’VE GOT FUNDS REALLY VERY SHORT AT SOME POINT WE’LL GET THEM TO COVER THOSE SHORT POSITIONS. AND YOU LOOK AT THE BALANCE SHEET THAT WE SAW IN THEM IN THE MARCH OR IN THE USA WAS THE REPORT YOU THINK THAT MAYBE THAT PRODUCTION NUMBER IS ABOUT AS BIG AS IT’S GOING TO GET AND YOU THINK THAT MAYBE THE DEMAND NUMBERS ABOUT AS LOW AS IT’S GOING TO GET. SO WHEN YOU PUT THE TWO OF THEM TOGETHER I THINK THERE’S OPTIMISM THERE FOR THE CORN MARKET. SOYBEANS MIGHT BE A DIFFERENT STORY AS THAT PRODUCTION NUMBER MIGHT ACTUALLY BE GROWING. OKAY MIKE. AND I THINK WHEN YOU LOOK AT THE CHARTS IN THE ON THE GRAINS SIDE OF THINGS WHETHER YOU’RE TALKING CORN WHEAT SOYBEANS THEY’VE BEEN SLEEPY GO BACK TO LAST SEPTEMBER AND WHEAT AND CORN SPECIFICALLY HAVE BEEN CAUGHT IN A RANGE THAT’S BEEN INCREDIBLY TIGHT. SOYBEANS HAVE YOU KNOW STRUGGLED WITH THAT 980 THRESHOLD OF LATE PERHAPS AS WE SEE A LITTLE BIT OF OPTIMISM THAT PERHAPS THE BALANCE SHEET IS GOING TO SHRINK THAT OPENS UP SOME DOORS FOR SOME RALLIES. BUT IN THE SHORT TERM LOOK FOR THEM TO BE A LITTLE BIT MORE MUTED. BE READY TO CAPTURE THEM AND JUST PREPARE FOR A NORMAL GROWING SEASON. SELL WHEN YOU HAVE OPPORTUNITIES TO DEFEND AGAINST THE RISK OF LOWER PRICES. LL RIGHT. THANK YOU BOTH FOR BEING HERE THIS WEEKEND AND MAKING THE TRIP DOWN. AS WE MENTIONED LAST YEAR DRINK A MILK A GLASS OF MILK FOR MIGHT. THIS WEEKEND MAYBE FILL UP YOUR CAR WITH ETHANOL THIS MEMORIAL DAY WEEKEND AS YOU’RE TRAVELING TO SEE FAMILY AND WE CAN HELP HELP THE MAN ONE PERSON AT A TIME RIGHT. OH ABSOLUTELY. THANK YOU BOTH. PLEASE STAY WITH US BECAUSE JOHN PHIPPS JOINS US FROM HIS FARM NEXT
JOHN’S WORLD
WELCOME BACK. WELL, WE’VE HEARD STORY AFTER STORY ABOUT FARMERS NOT ONLY HAVING TO REPLANT ONCE... BUT EVEN TWICE ALREADY THIS YEAR. IT’S A NIGHTMARE FOR SOME... AND NOT AN EASY DECISION TO MAKE. HERE’S JOHN PHIPPS. THERE A FEW MORE DREADED ASPECTS OF ROW-CROP FARMING THAN REPLANTING. TO BEGIN WITH, YOU MUST ADMIT FAILURE. NOT OUR FAVORITE ACTIVITY. IT DOESN’T HELP IF YOUR ADJACENT NEIGHBOR PLANTED ON A SLIGHTLY DIFFERENT DATE AND HIS FIELD LOOKS GREAT BY COMPARISON. THE OTHER PROBLEM IS WITH WINDSHIELD SURVEYS. A SLOWLY EMERGING CROP CAN BE CRUELLY DECEPTIVE. FOR THE LAST FEW WEEKS, THE COMMON FARMER CROSS-TALK AROUND HERE WAS ALL ABOUT HOW THE CORN WAS STILL COMING UP. WHILE WE ALMOST CONVINCED OURSELVES, AFTER FOUR WEEKS MOSTLY WHAT IS HAPPENING IS A TRICK OF PERSPECTIVE. THE PLANTS THAT HAVE EMERGED ARE JUST GETTING TALL ENOUGH TO MAKE THE ROW VIEWED FROM THE ROAD APPEAR TO BE PRETTY SOLID-ISH. THIS LEADS TO WHAT I THINK IS THE WORST PART OF REPLANTING: DECIDING HOW MUCH CAN BE SAVED – IF ANY. INVARIABLY WE GET A FEW BAGS TO FILL IN THE WET SPOTS ONLY TO DISCOVER IN THE FIELD A MUCH VASTER AREA OF PITIFUL STANDS. DO YOU: A. RIP THE WHOLE FIELD UP AND START OVER? DEPENDING ON YOUR DEALER POLICY ON REPLANT SEED PRICING THIS MAY BE THE MOST ATTRACTIVE CHOICE EXCEPT WHEN THE CALENDAR IS RUNNING OUT. TOO, WHILE A FRESH START LOOKS APPEALING, THERE WILL ALWAYS BE A FEW SURVIVORS FROM THE FIRST PLANTING TO REMIND YOU ALL SEASON OF THE DO-OVER. OPTION B. YOU CAN SPOT IN THE BAD AREAS, BUT THIS TRIGGERS ANOTHER DECISION. DO YOU TILL THEM FIRST, CREATING PATCHWORK FIELDS? OR DRIVE THE FIELD DROPPING AND LIFTING THE PLANTER, ENDING UP WITH AREAS THAT MAY HAVE UNDER AND OVER-POPULATED ROWS SIDE-BY SIDE. IT ALSO IS EMOTIONALLY EXHAUSTING. THE DECISIONS YOU MAKE DURING THE FIRST HOUR OF REPLANTING ARE DIFFERENT FROM THE ONES YOU MAKE HOURS LATER, I’VE LEARNED. TO ALL OF YOU REPLANTING OR HEAVEN FORBID, RE-REPLANTING, I SHARE YOUR PAIN. FIRST HAND. I HAVE NEVER FOUND ANY RATIONALIZATION THAT CAN MAKE THIS EXPERIENCE ANYTHING BUT UNPLEASANT. AND IF YOU TAKE MEAGER QUIET COMFORT THAT OTHERS AROUND YOU ARE IN THE SAME OR WORSE CIRCUMSTANCES, THAT DOESN’T MAKE YOU A BAD PERSON. THANKS, JOHN.
TEASE
WELL, IT’S WEEKS OF CELEBRATION LEADING UP TO RACEDAY.BUT IT’S MORE THAN JUST THE FASTEST DRIVER WHO WILL ENTER THE WINNER’S CIRCLE. WE CONTINUE OUR SPECIAL EDITION OF U-S FARM REPORT BY MEETING THE INDY 500 MILKMAN, NEXT ON U- S FARM REPORT.
HEADLINES
WELCOME BACK TO THIS SPECIAL EDITION OF U-S FARM REPORT FROM THE INDIANAPOLIS 500 SPEEDWAY. HERE’S WHAT WE’RE WORKING ON FOR YOU OVER THE NEXT HALF HOUR... MEET THE 2017 INDY 500 MILKMAN.. AND IT’S A COMMEORATIVE OCCASION WITH MORE THAN JUST A GLASS FOR THIS FAMILY. WE HAVE HIS TOUCHING STORY. FOR PAGEL’S PONDEROSA DAIRY, EMPLOYEES ARE TREATED LIKE FAMILY. MEET THE REAL FACES OF DAIRY. AND JOHN GETS BACK TO THE BASICS WITH MEDICAID.
NOW FOR THE HEADLINES...THE TRUMP ADMINISTRATION OUT WITH ITS PROPOSED BUDGET AND MANY AG GROUPS NOT HAPPY WITH THE CUTS. THE ADMINSTRATION’S BUDGET CALLING FOR A 21 PERCENT CUT TO USDA’S FUNDING... WITH AMERICAN FARM BUREAU GOING AS FAR AS SAYING THE BUDGET PROPOSAL FAILS AMERICA’S FARMERS AND RANCHERS. BREAKING IT DOWN, THE PRESIDENT’S PROPOSAL INCLUDES SLASHING CROP INSURANCE BY 36 PERCENT ORA 29 BILLION DOLLARS IN SAVINGS OVER TEN YEARS. 1 POINT 7 BILLION DOLLARS IN SAVINGS WOULD COME FROM THE FOOD FOR PEACE PROGRAM WHICH SHIPS U- S GROWN FOOD TO HELP HUNGER OVERSEAS. BUT IT ALSO EATS INTO THE NUTRITION PART OF THE BILL, WITH THE ADMINISTRATION PROPOSING A 25 PERCENT CUT TO SNAP, OR 193 BILLION DOLLARS OVER 10 YEARS. AG SECRETARY SONNY PERDUE IN THE HOT SEAT IN FRONT OF HTE HOUSE APPROPRIATIONS COMMITTEE THIS WEEK, HEARING STRONG OPPOSITION FROM LAWMAKERS ABOUT THE PROPOSAL.
HEALTH OF THE RURAL ECONOMY
ALSO IN WASHINGTON THIS WEEK, TESTIMONIES OVER THE HEALTH OF HTE AG ECONOMY. CHAIRMAN PAT ROBERTS ACKNOWLEDGING FARMERS FACING A DIFFERENT FINANCIAL PICTURE THAN DURING THE PREVIOUS FARM BILL DISCUSSIONS, WITH NET FARM INCOME CUT IN HALF. DURING TESTIMONY, USDA’S CHIEF ECONOMIST ROBERT JOHANSSON SAYS FARM BUDGETS EXPECTED TO TIGHTEN THIS YEAR, ON THE EXPECTATION OF FLAT COMMODITY PRICES AND MORE NORMAL YIELDS.
ECONOMISTS SAY THE NET EFFECT OF THE SITUATION IS DIFFICULT TO FORECAST, BUT FURTHER CONSOLIDATION WITHIN CERTAIN FARM SECTORS IS EXPECTED.
ORGANIC GAINS
THE U-S ORGANIC SECTOR CONTINUING TO SEE IMPRESSIVE GROWTH. THE ORGANIC TRADE ASSOCIATION SAYS ORGANIC SALES IN THE U-S RACKED UP 47 BILLION DOLLARS LAST YEAR. THAT’S 3 POINT 7 BLLION DOLLARS BETTER THAN THE PREVIOUS. THE GROUP SAYS TODAY, ORGANIC MAKES UP 5 PERCENT OF TOTAL FOOD SALES IN THE U-S.
WEATHER
THATS IT FOR NEWS...CINDI CLAWSON IS FILLING IN FOR MIKE HOFFMAN THIS WEEK, SHE REJOINS US NOW WITH THE NATIONAL FORECAST. CINDI. THANKS TYNE WELL WE DO HAVE A TROUGH IN THE NORTH CENTRAL UNITED STATES THAT’S GOING TO TRAVEL ACROSS THE NORTHEASTERN UNITED STATES TO LOOK FOR SOME STORMY WEATHER AT LEAST THE BEGINNING TO THE MIDDLE PART OF THE WORKWEEK WHERE WE HAVE SOME REALLY WARM WEATHER EXPECTED IN THE WEST. THAT TROUGH CONTINUES TO PUSH ON OFF TO THE EAST AND WE’LL SEE THAT RIDGE BRINGING SOME WARMER AIR THEN ESPECIALLY INTO THE WESTERN GREAT LAKES ALL THE WAY DOWN TO THE GULF COAST WELL ANOTHER TROUGH STARTS TO ENTER THE NORTHWEST. BUT THE AIR WON’T BE THAT MUCH COLDER WITH THAT TROUGH OUR 30 DAY OUTLOOK. WE’RE LOOKING AT COOLER THAN NORMAL TEMPERATURES IN MUCH OF THE NATION’S MIDSECTION WHILE WE EXPECT THOSE WARMER TEMPERATURES TO HANG OUT. IT WILL BASICALLY ALONG THE COAST LINES EAST COAST GULF COAST EVEN ALONG THE WEST COAST AS WELL. AS FAR AS PRECIPITATION AND IT’S LIKE IT’S GOING TO BE A WET ONE AS FAR AS MOST OF THE EASTERN PART OF THE COUNTRY WHERE WE’RE GOING TO SEE THOSE DRY POCKETS ARE IN THE ESPECIALLY THE SOUTHWEST AND ALONG THE WEST COAST. THAT’S A LOOK AT YOUR NATIONAL FORECAST. NOW BACK TO YOU TYNE THANKS, CINDI.
LAST YEAR, MORE THAN 5 MILLIONS PEOPLE TUNED IN TO WATCH THE INDIANAPOLIS 500, WITH MORE THAN 300 THOUSAND EXPECTED TO FILL THESE STANDS. BUT ONE INDIANA DAIRYMAN WON’T JUST ATTEND. HE’LL ALSO PLAY A KEY ROLE IN THE SHOW. BETSY JIBBEN TELLS US WHY THIS IS A SPECIAL CONNECTION FOR A DAIRY PRODUCER AND HIS FAMILY. JOE KELSAY - A DAIRYMAN FROM INDIANA - HAS DONE IT ALL - HE MANAGES HIS FARM OF 500 COWS, AND HUNDREDS OF ACRES - RIGHT OUTSIDE OF INDIANAPOLIS. <"WE ARE A 6TH GENERATION DAIRY FARM. WE WERE LAND GRANTED IN 1837 BY PRESIDENT MARTIN VAN BUREAN. FOR GENERATIONS WE WERE IN CHARGE OF STEWARDING THIS LAND, TAKING CARE OF THE ANIMALS..."> A RESPONSIBILITY HE’S CARRIED FROM THE FARM TO THE STATE HOUSE... IN 2009, I WAS APPOINTED TO BE THE DIRECTOR OF AGRICULTURE HERE IN INDIANA BY A FORMER GOVERNOR, MITCH DANIELS AND SERVED HIS LAST 3 YEARS, TALKING ABOUT AG AND CONNECTING WHAT WE DO EVERYDAY.">47 AND NOW HE’S TAKING ON ANOTHER BIG JOB- NOT FAR FROM HIS BACK YARD..
THE RESPONSIBILITY OF REPRESENTING DAIRY PRODUCERS LIKE HIM ACROSS THE COUNTRY AT THE 101ST RUNNING OF THE INDIANAPOLIS 500. <"THERE IS NOTHING LIKE INDIANAPOLIS IN THE MONTH OF MAY. AND THE EXCITEMENT THAT EXISTS IN AND AROUND THE TRACK IS AN EXPERIENCE TO BEHOLD."> <"THIS IS SOMETHING THAT’S SO EXTRAVAGANT, THAT IT’S HARD TO PUT INTO WORDS, BUT EXTREMELY EXCITED ABOUT BEING THERE AND BEING A PART OF THE INDIANAPOLIS 500 THIS YEAR."> KELSAY’S JOB IS TO AWARD THE WINNER, CHIEF MECHANIC AND TEAM OWNER WITH THE BOTTLES OF MILK. - A TRADITION THAT’S BEEN AROUND SINCE 1933 - WHEN WINNER LOUIS LOUIE MEYER ASKED FOR A GLASS OF BUTTERMILK IN VICTORY LANE. WHEN YOU CAN CONNECT THE TRADITIONS THAT HAPPEN IN AUTO RACING AT THE INDY 500 TO THE TRADITIONS THAT HAPPEN IN YOUR OWN FAMILY. IT IS QUITE A SPECIAL FEELING,"> <"AND KELSAY HAS SOME PRETTY BIG SHOES TO FILL THIS YEAR. HIS DAD, MERRILL WAS THE 2007 INDIANAPOLIS 500 MILK MAN."> > MERRILL KELSAY AWARDED THE 2007 WINNER - DAIRO FRANCHITTI DAR (GAR) E-O FRAN-KEY-DEE THE COVETED BOTTLE OF MILK - IN FRONT OF MILLIONS ON TV, AND THOUSANDS ON THE TRACK - INCLUDING HOLLYWOOD ACTRESS, ASHLEY JUDD. TO BE ABLE TO STEP IN AND FILL IN THOSE SHOES BEHIND HIM, THAT’S A SPECIAL EVENT FOR ME AND MY FAMILY TO REMEMBER HIM AS HE’S PASSED JUST LAST YEAR AND KIND OF HAVE THOSE SPECIAL MEMORIES OF THE THINGS WE SHARE IN COMMON...5:49:03 IT’S A SPECIAL SET OF MEMORIES FOR SURE. 5:49:04"> JOE SAYS HIS FATHER MERRILL DIDN’T EXACTLY GIVE HIM ADVICE FOR THE RACE BUT HE DID LEAVE BEHIND AN ADAGE TO LIVE BY.. <"HE WAS ONE OF THOSE GUYS THAT ALWAYS KIND OF ALWAYS HAVE A SPECIAL WAY ABOUT HIM WHEN HE WOULD GIVE YOU ADVICE. BUT IT WAS MORE OF MAKE THE MOST OF EVERY SITUATION YOU FIND YOURSELF IN"> A WAY TO HOLD FAMILY MEMORIES CLOSE AND SHARE HIS EVERYDAY PASSION.. WITH MILLIONS ON RACEDAY.. <"I’M REALLY BLESSED TO BE A PART OF THE INDUSTRY AND COMMUNITY THAT IS AGRICULTURE AND I’M EXCITED TO SHARE IT."> REPORTING IN WHITELAND, INDIANA, I’M BETSY JIBBEN. THANKS BETSY. THE CHIEF MECHANIC, TEAM OWNER AND WINNER GET TO CHOOSE WHICH TYPE OF MILK TO QUENCH THEIR THIRST. THE OPTIONS ARE WHOLE, 2 PERCENT OR SKIM, BUT OFFICALS TELL US IT’S 2 PERCENT AND WHOLE MILK GETTING EVEN MORE POPULAR EACH YEAR.
TEASEUP NEXT, JOHN PHIPPS.
CUSTOMER SUPPORT
AS JOHN PROMISED LAST WEEK, HE’S KICKING OFF A MULTI-PART AGSPLAINER ON MEDICAID. THIS WEEKEND, IT’S ALL ABOUT THE BASICS. JOHN. LAST WEEK I TALKED ABOUT MY LOCAL NURSING HOME AND HOW IMPORTANT MEDICAID IS TO ITS EXISTENCE. IN ORDER TO HELP RURAL AMERICANS UNDERSTAND HOW MEDICAID AND POSSIBLE CHANGES TO IT COULD AFFECT THEM, THIS IS PART ONE OF AN AGSPLAINER ON MEDICAID. THIS WEEK WE’LL FOCUS ON THE BIG PICTURE. MEDICAID IS ONE OF THE BIG FOUR EXPENSES FOR THE FEDERAL GOVERNMENT - DEPENDING ON HOW YOU SLICE THE CATEGORIES. IT WORKS BY EMPOWERING STATES TO RUN THEIR OWN PROGRAMS AFTER MEETING MINIMUM STANDARDS. FOR EVERY DOLLAR A STATE SPENDS ON MEDICAID ENROLLEES, THE US GOVERNMENT REIMBURSES A MINIMUM OF ONE DOLLAR, BUT FOR POORER STATES IT COULD BE HIGHER. IN THE END THE FEDERAL GOVERNMENT PAYS 63% OF MEDICAID EXPENSES. THIS MONEY IS SPENT PROVIDING HEALTH CARE TO CHILDREN, LOW INCOME ADULTS, THE DISABLED, AND ELDERLY. ONE IMPORTANT NOTE IS THE COST SHARING IS REIMBURSED TO STATES, NOT RECIPIENTS OR PROVIDERS. I WAS SURPRISED THAT EVEN SOME PROVIDERS THOUGHT THE MONEY CAME JUST FROM THE STATE, BECAUSE THEY NEVER SEE A FEDERAL CHECK. THERE IS A DIVERGENCE BETWEEN THE NUMBER OF PEOPLE HELPED AND HOW MUCH IS SPENT. SOME RECIPIENTS HAVE HIGHER NEEDS, MOST NOTABLY THE DISABLED AND THE ELDERLY. SO WHILE THE ELDERLY NUMBER ONLY 8% OF ENROLLMENT, THEY RECEIVE 14% OF THE EXPENDITURES. THIS IS EVEN MORE PRONOUNCED FOR THE DISABLED. LONG TERM CARE EXPENSES TOTALED 118 BILLION DOLLARS LAST FISCAL YEAR (THIS IS THE TOTAL FOR BOTH STATES AND FEDERAL). OF THAT 37% OR $44 BILLION WENT TO NURSING HOMES. THE LARGEST PORTION OF LONG TERM EXPENSE IS FOR HOME HEALTH SERVICES, AND THE BALANCE FOR MENTAL HEALTH FACILITIES. TO SUM UP, MEDICAID IS THE LARGEST HEALTH INSURER IN THE US, WITH 97 MILLION RECIPIENTS, ALMOST 3 IN 10 AMERICANS. NINETY PERCENT OF THE $553 BILLION MEDICAID DOLLARS WENT TO CHILDREN, THE ELDERLY, THE DISABLED, OR HOUSEHOLDS WITH AT LEAST ONE WORKING MEMBER. WITH THIS BACKGROUND IN THE BASICS, NEXT WEEK WE’LL DETAIL HOW MEDICAID WORKS AND WHAT ITS FUTURE COULD LOOK LIKE. THANKS, JOHN. AND IF YOU HAVE A QUESTION OR A COMMENT FOR JOHN, JUST EMAIL HIM AT MAILBAG AT U- S FARM REPORT DOT COM. OR YOU CAN ALWAYS SEND HIM A MESSAGE ON FACEBOOK OR TWITTER. UP NEXT MEET THE REEAL FACES OF DAIRY.
ACCORDING TO THE BUREAU OF LABOR STATISTICS, THE NUMBER OF FATALITIES AMONG AG WORKERS ARE ON THE RISE- ROUGHLY 180 DEATHS HAPPENED ON THE FARM WITH AG WORKERS IN 2015 - A 22 PERCENT JUMP FROM 148 WORKERS IN 2014. PAGEL’S PONDEROSA DAIRY IN KEWAUNEE, WISCONSIN IS DOING WHAT IT CAN TO REDUCE THAT STATISTIC AS THEY CARE AND TREAT EMPLOYEES LIKE THEIR OWN FAMILY. IN THIS MONTH’S ‘REAL FACES OF DAIRY’ REPORT, BETSY JIBBEN SHOWS US HOW THIS OPERATION IS TOP- NOTCH WITH EMPLOYEE CARE PAGEL’S PONDEROSA DAIRY IN KEWAUNEE, WISCONSIN IS BUSTLING.. DAY IN AND DAY OUT THE FAMILY-OWNED DAIRY HAS EXPANDED SIGNIFICANTLY SINCE IT WAS FIRST ESTABLISHED IN 1946. <"WHEN I TOOK OVER THE FARM FROM MY PARENTS, WE HAD 65 COWS AND 320 ACRES. TODAY, WE’RE CROPPING A LITTLE OVER 8500 ACRES, WE’RE MILKING OVER 5,000 COWS AT THIS OPERATION,"> AND WITH MORME COWS COMES THE NEED FOR MORE PEOPLE. <"WE LEARNED THAT WE WERE GOING TO HAVE TO DO SOMETHING DIFFERENT THAT JUST PAY A GOOD WAGE,"> JOHN’S DAUGHTER, JAMIE, MANAGES THE OFFICE AND HEADS UP THE HUMAN RESOURCES DEPARTMENT., <"IT IS A LOT EASIER TO MANAGE THE 5,000 MILKING COWS THAN IT IS TO MANAGE THE EMPLOYEES THAT WE HAVE,"> TODAY, THE DAIRY OPERATION REQUIRES SEVERAL HUNDRED PEOPLE TO KEEP THINGS RUNNING SMOOTHLY. <"ONCE THE EMPLOYEES ARE HERE ONE YEAR AND BEYOND, THEY USUALLY STAY. SO WE HAVE A LOT OF LONG TERM EMPLOYEES BUT THE NEWEST EMPLOYEES ARE BY FAR THE HARDEST TO KEEP, "> WHICH IS WHY THEY NOW OFFER NEW HIRE ITEMS, CARE PACKAGES AND TRAINING. <"WE’RE INTO LONG-TERM EMPLOYEMENT. WE’RE NOT INTO PEOPLE WHO WANT TO COME IN AND THEN GO AND LOOK FOR ANOTHER JOB. SO WE TRY TO TAKE CARE OF OUR PEOPLE SO THEY CAN BE THE MOST PRODUCTIVE FOR US AS WE WANT THEM TO BE,"> THE FAMILY TOOK NOTES FROM OTHERS AND DEVELOPED ITS OWN EMPLOYEE PROGRAM: ABBREVIATED CARS. THE CONCEPT: COMMUNICATION, ACCOUNTABILITY, RESPECT AND SUSTAINABILITY. <"IT’S A PROGRAM TO EDUCATE THE NEW EMPLOYEES ON WHO WE ARE, WHAT WE’RE ABOUT AND WHY YOU WANT TO WORK AT PAGEL’S PONDEROSA, WHAT BENEFITS WE OFFER. WE’VE BEEN TRYING ITO DO A BETTER JOB LETTING THEM KNOW WHY THEY SHOULD WORK HERE,"> <"I’VE GOT 8 MANAGERS THAT I MEET WITH EVERY MORNING. I GIVE THEM THE TOOLS THAT THEY NEED TO DO THEIR JOB. AS LONG AS I CAN DO THAT AND I CAN KEEP THEM GOING, THAT MAKES THEM AS HIGHLY PRODUCTIVE AS I CAN MAKE THEM,"> T LAYS OUT EXPECTATIONS BUT ALSO HELPS THE DAIRY UNDERSTAND EMPLOYEE’S NEEDS AS WELL. GETTING THE RIGHT PERSON IN THE RIGHT POSITION TO SUCCEED FOR THE SAFETY OF THEMSELVES AND THE ANIMALS. <"THEY LEARN WHAT’S EXPECTED OF THEM AS AN EMPLOYEE AND THEY GET A FULL JOB DESCRIPTION. SO THAT THEY UNDERSTAND WHAT TO DO,"> COMMUNICATION GOES BOTH WAYS - THE PAGEL’S AUDIT AND FOLLOW-UP WITH DOCUMENTATION. IF IT’S NOT WRITTEN DOWN, ITS AS IF THE TRAINING DIDN’T HAPPEN. BEYOND THE BUSINESS, THEY ALSO CHECK-IN TO MAKE SURE EMPLOYEES ARER ENJOYING THEIR JOB.. <"WE TALK ABOUT CUTLTURE AND ETHICS AND THE RIGHT WAY TO TREAT PEOPLE AND IT’S NOT JSUT ABOUT THE JOB ITSELF. IT’S ABOUT HOW YOU’RE TREATED ADN HOW YOU WANT TO BE TREATED,"> <"I LOVE OUR EMPLOYEES, OUR EMPLOYEES ARE LIKE FAMILY. I KNOW OUR EMPLOYEES, THEIR SPOUSES AND THEIR KIDS ARE LIKE MY KIDS,">
THE FAMILY HOPES THE EVER-MOVING DAIRY WILL CONTINUE ITS GROWTH- BUT KNOWS THE SUCCESS OF THE OPERATION ISN’T JUST BUILT IN THE BARN- BUT WITH EMPLOYEES - THE FAMILY - WHO DO THE WORK AND MAKE IT ALL POSSIBLE. REPORTING FOR U.S. FARM REPORT, I’M BETSY JIBBEN. THANKS, BETSY. AS PART OF THE EMPLOYEE PROGRAM, THEY FOCUS ON EMPLOYEE CARE, AS WELL AS TRAINING. THAT’S WHY THE PAGELS INSURE EMPLOYEES ARE TRAINED ON WHICH CHEMICALS THEY’RE WORKING WITH AND WHERE SAFETY SHEETS ARE LOCATED.
TEASE
WHEN WE COME BACK, MACHINERY PETE HAS THIS WEEK’S TRACTOR TALES.
TRACTOR TALES BROUGHT TO YOU BY THE MOST TRUSTED NAME IN FARM EQUIPMENT, MACHINERY PETE!. WELCOME BACK TO TRACTOR TALES FOLKS! WE’RE GOING GREEN TODAY WITH A 1969 4020. RETIRED FROM FARMING, THIS JOHN DEERE SPENDS ITS DAYS SHOWING OFF AT SHOWS AND PARADES. AND EVEN THOUGH THIS CLASSIC HAD ALL THE BELLS AND WHISTLES OF ITS TIME, OWNER GAIL GOODELL MADE A FEW IMPROVEMENTS OF HIS OWN I BOUGHT IT USED, PARTIALLY RECONDITIONED AND I’VE DONE MORE WITH IT SINCE HAD IT REPAINTED A PRIMARILLY I HAVE A, ONE THAT I STARTED FARMING WITH. BOUGHT IT NEW IT ‘S NOT THIS ONE BUT IT’S ONE SIMILAR TO IT. AND I, STILL MY FAVOR A TRACTOR. ANYBODY HAS TO LIKE A FORTY TWENTY TAKE IT ON TRACTOR DRIVES YOU SEE I’VE GOT A CANOPY ON TOP. IT’S JUST A SINCRO RANGE NOT A NOT A SPECIAL 4020. THERE ARE MANY OF THEM OUT THERE. BUT I LIKE IT ‘S NOT GOING TO DO ANY HEAVY WORK ANY LONGER. I GO ON TRACTOR DRIVES WE NEED TO HAVE MIRRORS. MOST TRACTOR DRIVES REQUIRE A MIRROR, SO THATS UP THERE WHERE I CAN EASILY SEE WHAT’S BEHIND ME. I’VE GO A LITTLE ADDITION HERE. THOUGHT I’D PUT A GARMENT ON THERE AND THAT, IT’S INTERESTING WHEN YOU’RE A LONG WAYS FROM HOME YOU CAN PICK THINGS THINGS OUT FOR THINGS THAT YOU DON’T READILY PICK A PART OR YOU SEE A LOT OF THINGS, A ROAD, SEEING ROADS COME COMING UP. THAT YOU DON’T KNOW WHERE IT’S AT OR WHAT IT IS. SO I USE THAT AND I USE TRACTOR DRIVES WE KEEP TRACK OF MILES AND MILES PER HOUR AND THE LENGTH OF TIME WE’RE DRIVING. I’VE ONLY OWNED THIS TRACTOR ABOUT THREE YEARS NOW I’M WANTING TO GET MY OWN ORIGINAL 4020 THAT I BOUGHT NEW FIXED UP BUT IJUST COULDN’T SEEM TO FIND THE TIME TO DO IT OR DIDN’T WANT TO GIVE IT UP FROM THE DAY TO DAY USE. LONG TERM I THINK I WILL GET MY ORIGINAL ONE REBUILT AND HOPEFULLY LOOKING FAIRLY NICE AND MAYBE REPLACE THIS ONE. I LIKE FORTY-TWENTIES AND FORTY-TWENTIES ARE GOOD PROPERTY.
COUNTRY CHURCH SALUTE
THANKS. THIS WEEK’S COUNTRY CHURCH SALUTE GOES TON TWO CHURCH LOCATED RIGHT HERE IN INDIANA. THE BELLEFOUNTAIN UNITED METHODIST CHURCH AND HTE FAIRVIEW UNITED METHODIST CHURCH, LOCATED IN JAY COUNTY, INDIANA. BELLEFOUNTAIN WAS FOUNDED IN 1841 AND FAIRVIEW IN 1853. BOTH BECOME PART OF THE UNITED METHODIST CONVERENCE IN 1968. PASTOR GORDON JACKSON SERVES BOTH OF THESE CHURCHES... PASTOR GORDON, THANKS FOR SHARING YOUR CHUCH WITH US THIS WEEK. AS ALWAYS WE WANT TO LEARN ABOUT YOUR HOME CHURCH AS WELL... SALUTES CAN BE SENT TO THE ADDRESS ON THE SCREEN. STAY WITH US - FROM TEH FARM PHOTOS NEXT.
FROM THE FARM
WELCOME BACK TO FINISH THE SHOW WE’RE HERE IN A WINNER’S CIRCLE ACTUALLY STANDING ON THE PODIUM WHERE THE WINNING DRIVER WILL STAND. I FEEL SO HONORED AND PRIVILEGED AT THIS POINT YOU BOTH OF YOU I’VE NEVER PODIUM AT THE INDY 500 BEFORE HAVEN’T. YOU EVER WATCHED THE INDY 500. I SAT IN THE SEATS OVER THE NEXT HOUR. ALL RIGHT. WELL WE HAVE SOME SOME FARMER PHOTOS TO SHARE WHILE THE SUN IS TRYING TO POP OUT HERE AT THE RACETRACK. IT HAS BEEN A RUTHLESS START TO PLANTING FOR MANY OF OUR VIEWERS THIS YEAR. ABSOLUTELY OUR BUDDY MATT BENNETT ANOTHER ANALYST ON THE SHOW SAYS HE’S REPLANTING. HE’S PLANTING HIS FIELD FOR THE THIRD TIME. THE RAIN HAS BEEN RUTHLESS DOWN WHERE HE IS. ACTUALLY. I TALKED TO MATT THIS WEEK. FIFTEEN INCHES OF RAIN IS WHAT HE’S RECEIVED JUST IN THE MONTH OF MAY. JUST CRAZY. MIKE DO YOU HAVE ONE FROM OHIO. YOU BET. AND IN OHIO THEY WERE BUSY PLANTING BEANS LAST WEEK TRENT WHO IS FOUR IS HELPING HIS DAD CHAD AND HIS UNCLE BRIAN LOAD SEED BEANS INTO THE PLANT OR CORN IS IN THE GROUND AS WELL AS SOME BEANS BUT GOT ANOTHER INCH AND A HALF OF RAIN OVER THE WEEKEND. AND RALPH AND BRIAN OELFKE WERE BUSY PLANTING SOYBEANS IN HAMBURG MINNESOTA. THEIR CORN CROP IS ALREADY IN THE GROUND. BUT THEY SAID THEY DO HAVE SOME PARTS THAT ARE FLOODING THEY STILL NEED TO FINISH THEIR SOYBEAN CROP. BUT THEY TOLD US THERE ARE SOME AREAS DROWNED OUT IN SOME OTHER FIELDS. BUT WITH ALL THIS RAIN AT LEAST WE’LL HAVE A CORN CROP IN LOUISIANA THIS YEAR GUYS. THOMAS SAYS THE CROP LOOKS GOOD SO FAR BUT JULY WILL REALLY TELL THE STORY FOR THEM. HE SAYS THIS CORN SHOULD COME OFF THE LAST WEEK OF JULY IT’S JUST BEING IN THE MIDWEST. YOU KNOW IT’S JUST CRAZY TO THINK THAT THEY ACTUALLY HARVEST IN JULY AGAIN. THANK YOU FOR MAKING THE TRIP DOWN. WE APPRECIATE IT.
CLOSE
THIS WEEKEND FOR ALL OF US AT U.S. FARM REPORT THANK YOU SO MUCH FOR WATCHING. BE SURE TO JOIN US AGAIN NEXT WEEK AS WE WORK TO BUILD ON OUR TRADITION. HAVE A GREAT WEEKEND AND A SAFE MEMORIAL DAY HOLIDAY EVERYONE.
