Purchase With Purpose

Elevated Expenses and Supply Chain Risks Weigh on Crop Protection Outlook

Tue, 14 Oct 2025 15:52:21 GMT

In its annual crop protection market report , FBN highlights its outlook for pricing and supply trends.

“There’s a lot of uncertainty going into 2026, and you can contrast that to 2025, where tariffs were mostly known going into the spring,” says John Appel, FBN vice president of category management. “2026 is going to be structurally different. We saw that in 2025, at certain points, product prices were at multi-year lows, so there was no more to go down. But now the channel inventory has been largely depleted, we know that structurally these tariffs are going to come into place from a cost perspective.”

The FBN report gives price and supply outlooks for five active ingredients: glyphosate, glufosinate, 2,4-D ester, atrazine, and S-metolachlor. A project now for 10 years, the data used in the report is sourced from growers, FBN supply chain teams, and market reports.

(FBN)

Appel says there’s no “one size fits all” equation to how tariffs will affect crop protection pricing and supply chains as each active ingredient is sourced different. However, with a large quantity of AI coming from China for glyphosate and glufosinate, the pricing for those products is expected to increase with at least a 20% tariff.

“Others, like 2,4-D, you have significant duties on product like that, and on top of that, countervailing and anti-dumping duties that could be up to 170%, depending on the supplier,” he says. “That’s one product we saw significantly through our price data consistently get elevated throughout the year.”

(FBN)

FBN is advocating farmers implement a buy early mindset. Appel says the downstream implication will be suppliers delaying purchases until the product is needed for production to try to mitigate the risk of carrying inventory at unnecessary tariff levels.

“That could create product shortages once we get to springtime,” Appel says. “We look at the fall as the best time to buy to make sure we have very strong offers in the market with strong deals so that farmers can lock in supply and lock in prices for at least the essential products they know they are going to buy,” he says.

FBN focuses this report on herbicides as that product category has demonstrated the fastest growing adoption of e-commerce and online purchasing.

“Farmers are looking at the products that they probably know they’re going to need, and it’s very hard to grow a crop without herbicides,” Appel says. “Some of the other categories, like a fungicide or insecticide, are not really known what the pressure is going to be, so there’s more of a trend to buy some of those products in season as the need arises, especially in a time like this where, you know every dollar’s really going to count.”

(FBN)

Momentum and Milestones: NewLeaf Aims to Double Sales Next Year

Fri, 10 Oct 2025 15:27:57 GMT

With more than 10 years of research and four years of commercial availability, NewLeaf Symbiotics is continuing to chart its own course in bringing row crop and specialty solutions via pink-pigmented facultative methylotrophs (PPFMs).

Its trajectory includes product placement on just under 1 million acres four years ago to having product on more than 8.5 million acres in 2025. Next year’s goal is to double that.

“We’re focused on the next thing, not just the right now,” says Brent Smith, CEO at NewLeaf Symbiotics. “But the right now feels pretty good”

The company recently opened a new formulation office with a larger footprint, advanced laboratories, and strategic location in St. Louis.

“Our success is because we got good at consistency with a tricky microbe class,” Smith says. “The focus is: formulation, optimization and performance. With that we will continue to be consistent.”

The company chose a novel go-to-market in licensing its technologies to partner companies for product placement and sales. Currently, it has a handful of technologies available via 100 commercially available products. The portfolio includes an EPA-registered bioinsecticide and biostimulants for row crops including corn, soybeans, cotton and peanuts, as well as a vegetative transfer biostimulant. Leaders says there’s more to come with launches for 2026, pending regulatory approval.

“We’ve found traction commercially,” says Aaron Kelley, chief commercial officer. “We have three launches in 2026, an EPA-registered biofungicide, nitrogen use efficiency technology, and a specialty biostimulant for transplant vegetables.”

Kelley credits trust built over time for the product growth. He points to the 70% win rate the company boosts as well as a two-year shelf life for its products.

“Every technology that becomes commercially available from NewLeaf has been field tested with multi-year, multi-location, plots of 10+ acres. We want our partners to have confidence in the products they are recommending to their customers.”

Kelley says biologicals can help farmers thread the needle with integrated pest management and layered crop protection.

“It’s been an interesting development to see how people are seeing biologicals as part of integrated pest management,” he says. “And there’s still more to learn and more yield to gain when our technologies are used along with others.”

A Farm Office: An Investment in The Future

Fri, 10 Oct 2025 13:45:24 GMT

Two years ago, Matt and Janna Splitter were having a business meeting with executives from one of their suppliers, and that was the breaking point.

“There were 10 people working around our kitchen island — which is really designed for four — sitting in mismatched chairs,” Janna describes. “It was the only space we had to have the meeting, and as a business, we want more of those types of meetings. So, we knew it was time to get serious about building an office.”

In less than a year, and notably under the original budget, the building they had been drawing for a decade over and over again on paper napkins was finally ready for them to use.

(Nick Hemphill)

Dreams to Reality
Splitter Farms is headquartered in Rice County, Kan., and Matt was named the Top Producer Next Gen award winner in 2021. Before the construction of the 1,600 sq. ft. office, the Splitters were working in makeshift areas of their house.

Janna tapped her interior design and architectural background to get the plans 95% done. A local general contractor and subtractors then brought the plans on paper into a 3D reality.

Specifically for the Splitters, they wanted to pay careful attention to the layout of the office space.

(Nick Hemphill)

Matt and Janna’s office doors intentionally don’t face one another. They say this keeps them from yelling across the hallway at each other and instead getting up and walking into their offices to talk. It also prevents them from unintentionally peeking at what the other person is doing throughout the day.

“I don’t see her on her phone and unintentionally criticize how she’s spending her time, and she doesn’t stare at me taking a quick nap at 4 p.m.,” Matt says.

The natural flow from the front door means Janna’s office is the first visitors would walk to, not around the corner to Matt’s, which buffers him from intercepting every visitor.

Additionally, Matt’s office is sound proofed for confidential conversations. Janna says not soundproofing her office is one of the biggest regrets from the project.

Both offices have large 5’x5' windows for natural light. Matt’s overlooks the farm yard and driveway, and Janna’s overlooks the driveway and the house.

(Nick Hemphill)

Creating a barrier between where the Splitters live their personal life and do their work for the farm was important. The full kitchen and pantry allows the team to keep everything farm related centralized at the farm office — especially the preparation of field meals. A benefit yielded from the space has been a deepening of the team’s communication and farm culture.

“It adds up — having our employees all be able to gather and want to be together to eat lunch,” Matt says. “The culture of our farm has completely changed.”

(Nick Hemphill)

Built With Purpose
There are many intentional, albeit seemingly small, design considerations Matt and Janna take pride in. While the walls are white, the trim is dark. That means if employees or visitors lean on doorways, they are less likely to leave a mark. There’s enclosed storage with cabinets and credenzas to minimize clutter. The covered front porch — from its stepped approach, to size at 6’x8' — provides an easy meeting spot for Matt to talk with vendors he only needs to meet for a short time rather than inviting inside for a sit down. The flat screen displays in the executive offices and conference room allow the Splitter Farms team to wirelessly mirror their tablet or computer screen for meetings. The Splitters found their impressive conference table on Facebook Marketplace and shopped seasonal sales to get the best deals on appliances, light fixtures and more.

(Nick Hemphill)

Matt says the farm footprint didn’t allow for the office to be built anywhere else, but they feel they maximized the space they had with the structure they built.

Related: Kansas Farmer Harvests Corn Yields 30%-Plus Above APH

Quick Stats
Matt and Janna’s executive offices:
• Each 12’x14'

Shared office for employees:
• 10’x10'

Conference room:
• Seats up to 12

Other features:
• Full kitchen
• Full bathroom with shower facility for employees
• Triple paned, sealed windows

(Nick Hemphill)

FBN Spins Out Its Crop Protection Business, Focuses on Marketplace and Technology

Thu, 09 Oct 2025 15:01:57 GMT

Last week, just a few hours after Corteva announced its spin out dividing seeds from crop protection, Farmers Business Network (FBN) announced it is separating its businesses. Moving forward FBN will focus on its digital marketplace for farmers, and the newly launched Global Crop Solutions will be an independent supplier of crop protection products.

FBN leaders say the timing is coincidental. Their motive for the timing was brought about by the new fiscal year. But they offer both of the announcements together could be a sign of a trend of vertical integration getting unwound in the name of efficiency and focus.

“We’re doubling down, allotting capital on digital innovation for FBN’s future,” says Diego Casanello, CEO of FBN. “FBN’s core business is a digital commerce and fintech platform. We want farmers to be able to buy, finance, and market everything they need while sitting in their combines. These are technology challenges, so the core competence you need to be successful at FBN is different from managing the supply chain of the crop protection business.”

In the past 14 months, FBN has been refocusing its business. First, it spun off its insurance business, then its Gradable business into a joint-venture with ADM. Now with its crop protection business spin out, Casanello says the FBN marketplace will feature GCS products, such as Willowood USA branded products, via a strategic partnership, and GCS products will explore distribution beyond the FBN marketplace.

“The big unlock for GCS is the opportunity to serve the entire retail and co-op industry,” Casanello says. “It frees GCS of any channel conflicts and hits the ground running with one of the largest portfolios of products in the industry. And it frees FBN from similar constraints as we move to an open marketplace architecture. We are onboarding new sellers and their portfolios every week. We provide them the tools to manage pricing, marketing, and placement. FBN is open for business and we’ve had significant interest from additional partners before and after the announcement.”

FBN’s Marketplace Strategy

Currently, FBN says it has 120,000 farmer members in the U.S. and Canada. The business provides a marketplace with farm inputs and supplies, financial services and data-driven intelligence.

FBN co-founder Charles Baron says the FBN marketplace has expanded its product range to include crop protection, seed (with additional partner news coming soon), fertilizer, livestock products, veterinary pharmaceuticals, farm supplies and more.

“To farmers, there’s no change in their experience. And over time, we’ll bring an even broader assortment of goods,” Baron says. “You’ll be seeing announcements from us every two weeks or so about the suppliers coming on the platform. It’s one of the most exciting times in our history.”

The leaders say farmer use of e-commerce has increased every year since they launched, and in 2025 FBN served a record number of customers. “Farmers are really focusing on value right now and maximizing every dollar,” said Baron. And per their analytics roughly 35% of U.S. farmers visit FBN.com to browse inputs, apply for financing, or look for information.

The Future of GCS

As a newly formed independent crop protection supplier, GCS has a portfolio of 250 registrations on post-patent products. The company will specialize in sourcing, managing first mile logistics, developing new products and regulatory aspects.

To lead the business and its team, Amy Yoder, most recently EVP of FBN’s livestock division, is incoming CEO.

“Global Crop Solutions launches today as an independent powerhouse,” said Yoder, in a press release. “For the first time, our extensive portfolio and efficient global supply chain are fully available to all partners— from retailers, to distributors, to co-ops. Our independence unlocks immense growth potential and allows us to be the most reliable and collaborative partner to the entire agricultural industry.”

Machinery Pete's 5 Pointers For Equipment Auctions

Thu, 09 Oct 2025 13:52:40 GMT

As the guy who has spent more than three-and-a-half decades compiling hard cash auction sale price data points on what all types of used farm and construction equipment sold for, purchasing with a purpose speaks to me.

Here are a few Machinery Pete Pointers when it comes to putting this into practice:

1. Have a Price Point Game Plan. Buying and selling can be emotional. You have your eye set on a piece of equipment. You’ve invested significant time researching it. Now, it’s sale day. The bidding rolls along, but it has crept above what you were hoping to pay. OK, you bid once more. Twice. Well, you’re this close, once more. My suggestion for approaching auctions has remained the same for decades: Be prepared to buy anything but commit to buy nothing. There are bargains on every auction, usually on unexpected items. Those buyers get the deals. If the item you’re after goes too high, let it go.

2. Sometimes the Best Deal Isn’t What You Bought. It’s what you didn’t buy.

3. You Can’t Put a Price on Buying Smiles. Life is short. When I started out, collector tractors were A’s, B’s and H’s. Times change. Now collector models often are 1970s and 1980s vintage. If you’re older and your financial house is in strong shape, the siren call of buying that favorite tractor from when you were a kid can be strong. Here’s my advice: Buy It. Our world is too full of stress and frowns. If you can buy something that makes you smile, that’s winning in my book. Like the beautiful Massey Ferguson 1150 tractor from Danny Kuhn’s collection in Arthur, Ill., that sold for $51,500 on Aug. 19.There are many years of smiles ahead with that one.

4. Buy Extended Warranty Protection. Not much new equipment has been sold the past 18-plus months. Equipment fleets are collectively being pushed to run another year or two. One truth I know is no matter the cycle, farmers want and need reliable equipment to minimize downtime. Our Machinery Pete auction price data continually proves extended warranties add value when it’s time to sell or trade. And in this tight ag economy, insuring your farm against unforeseen repairs is priceless.

5. The 10-Year-Old With Low Hours Factor. You’ve heard me say it many times. What buyers have always wanted, and likely always will, is the nicest condition used tractor, combine, sprayer, skid steer or truck that is more than 10 years old. The rising cost of new equipment is so high that it works to make the nicest 10-year-old stuff super desirable. So, why not be a smart, aggressive buyer of the nicest 3-, 5- or 7-year-old item? This is where the value buy has always been in my book. In a few years, you will own what everyone wants: a sharp, low-hour, 10-year-old unit. That puts you in the catbird seat when selling or trading.

Jerry Gulke: My Top 3 Farming Investments

Wed, 08 Oct 2025 20:02:51 GMT

I’ve farmed for decades – sometimes full time and others part time while also working as an engineer or adviser. Looking back, there are a few actions I consider essential with excellent ROI in a successful business ag venture.

1. Education.
After graduating from North Dakota State University with a degree in engineering, I took advantage of an employee benefit by working toward a master’s degree in business administration and majoring in marketing and finance. It was there I learned to appreciate what Einstein called the eighth wonder of the world: understanding what compound interest rates can do for or against. It helped me focus on self-finance in working capital and not under the thumb of a bank. Debt free is even better.

2. Capital Investments.
Without a doubt, the best investment I made early in my career was on-farm storage and drying. In those days, government programs offered low or zero interest rates for building 120% of harvest production and paid about 26¢ per bushel in a farmer-owned reserve program that isolated corn, soybeans and wheat off the market until a certain price was reached. Today’s marketplace has replaced storage benefits with market carry, where prices paid in later months are higher than at harvest.

For example, my local elevator charges the following for corn:

(Lori Hays)

After doing the math, that means off-the-combine corn is quoted -35 under December futures ($4.18) and -44 under March futures ($4.36).

Here’s an example if I decide I want to store for the market carry from December to March, which is currently 18¢:

(Lori Hays)

The total cost is -55.5¢ versus cash market carry gain ($4.36 – $4.18) = 18¢. Net loss would be 36.5¢ per bushel, or $73 per acre. The bottom line is on-farm storage offers flexibility and opportunity to capture the market carry forward. The decision is whether you are going to invest in yourself, clip the coupons once storage is paid for and benefit from profit enhancement moving forward.

The arrows show buy and sell signals on a weekly basis. I also use similar studies to watch daily (short term) and monthly (longer term). Non-emotional signals often reveal what not to do as well as what to do. Successful marketing means knowing when to hold ’em (buy) and when to fold ’em (sell).

(Lori Hays, Gulke Group)

3. Price Outlook.
My education was and is essential to my farming success by understanding both the fundamentals (supply/demand) and the technical (price action) in developing an outlook in the backdrop of the price-discovery system, known as the CME, where thousands of traders analyze global fundamentals and discover a price commensurate with known and perceived-to-be known fundamentals.

Perception, better known as market psychology, helps create a buy-or-sell scenario that moves prices and develops bull or bear markets. The price discovery system is like a poker game. Participants all gather around market prices and vote yay or nay. At the end of the day, for every buyer there is a seller. It is a net some game — some winners and some losers by the end of the day’s closing of trade. That price discovery is depicted plainly in a chart like the weekly continuous chart included. The continuous chart depicts the lead contract traded from one month to the next. The front month is viewed as the demand month.

The chart depicts three analyses:

1. The price itself, in this case December is the lead contract.

2. Personal priority technical study I have used as a guide to decision making. It takes the emotion out of decision making and depicts cash flow in or out of a commodity.

3. The bottom shows the net position of the large speculator. This is often a precursor to what is coming. The large speculator was to be where the price is going and where it has been.

A Guide to Producing Your 2026 Costs

Tue, 07 Oct 2025 13:33:40 GMT

While the challenges have stacked up this year, it’s time to start thinking about producing your 2026 costs. Prepay season is here, and we’re looking at some decent marketing opportunities for the year ahead.

The term “cost of production” seems a bit disconnected at times because, in reality, we choose our costs. Sometimes, we forget this. We feel that things are out of our control — land, equipment, inputs, etc. This simply isn’t true. You get to make the decision on what you spend, when and where. If you’re having a visceral reaction to this fact, I suggest you take some time to consider whether this is the truth (it is).

Look at what some of the best farm operations we get to work with do:

• Don’t get over your skis on land costs. If it makes sense from a contribution margin, then go for it. If it is paying high cash rent or unfavorable lease arrangements just to cover more acres, it isn’t worth it.

• Keep your fertility in check. This means not skimping when you need to apply and spreading fertilizer strategically when you can afford to not broadcast straight rate on every acre. I told my agronomist my budget by crop acre this year, and he adjusted phosphorous and potassium applications to get the most yield bang for our buck. I produced my cost.

• Keep the return to management costs in line. You get to decide if you get a new vehicle, take a trip or pay for college. It is easier said than done, but we need to take personal responsibility.

• Yield is the No. 1 way to reduce your cost of production — bar none. Is the market asking for more corn? Not overall, but you also need it to maintain profitability. Commodity markets weed out inefficiency, and the system needs you to produce more or market better to stay viable.

Use the focus areas above to dial in and produce your costs for the crop year ahead.

Does this feel a bit harsh? I’ll commiserate for a while. If you have tried to stay the low-cost producer, and your market and conditions have driven you to exasperation or additional income sources or mental pressure, you need to evaluate where you’re at. If you hate what you’re doing, stop doing it. However, you should also recognize we are likely at the bottom of a cycle. These things come and go, and I do believe in better days ahead. I was always told to never quit on a bad day. Be financially responsible and accountable to your spouse, children, lenders and business partners, but if you can afford to work through this, there will be opportunities ahead. If you need someone to talk to or just to vent, I’m a phone call away.

Are Large ARC/PLC Payments Coming?

Mon, 06 Oct 2025 13:08:38 GMT

The One Big Beautiful Bill Act increased the statutory reference price and also made some enhanced changes to the effective reference price (EFR).

The EFR is used to calculate payments under Price Loss Coverage (PLC) and also affects the benchmark price used in the Agricultural Risk Coverage (ARC) calculations.

Instead of using 85% of the Olympic Average of the previous five years of MYA prices, the new calculation uses 88%, which effectively increases the EFR for many commodities. The old cap of 115% of the statutory reference price remains. However, with a larger increase in statutory reference prices, all commodities have seen an increase in the EFR that will be used to make either PLC or ARC payments. The increase can be substantial.

What This Means For Farmers
About 70 million base acres were enrolled in PLC for 2025 and about 172 million acres for ARC. There were around another 30 million base acres not enrolled due to ineligible crops or the farmers electing to not participate.

Many farmers were concerned the changes to ARC and PLC would penalize them if they made the wrong election for 2025. Congress understood this dilemma and added a provision to automatically pay the higher of ARC or PLC — but only for the 2025 crop year.

Another issue for many farmers has to do with the payment limit. If there was no increase, then many farmers would not get any extra payments. So, Congress fixed this partially by:

• Increasing the payment limit to $155,000 (indexed to inflation starting with the 2026 crop)

• Allowing LLCs and S corporations to have multiple payments similar to what general partnerships can do

If the projected MYA prices as of late-August hold, then minimum estimated payments for the major crops for next October would be:

• Corn – $5.7 billion

• Wheat – $2.25 billion

• Cotton – $1.3 billion

• Soybeans – $1.1 billion

• Rice – $871 million

• Total Crops – $12.5 billion (up from $5.60 billion under the old rules)

Because many areas could see higher ARC payments than PLC, final payments might be higher. These payments reflect the payment based on 85% of base acres but do not reflect farmers with payment limits.

The bottom line is farmers will receive more payments under the changes, and the increase could be significant.

Navigate 2026 Input Costs with A Proactive Strategy

Thu, 25 Sep 2025 19:05:30 GMT

While Brent Judisch is in the midst of combining his 2025 corn and soybeans, he’s also thinking about how to plan for next year’s crops and inputs specifically.

“Fertilizer prices will kind of mirror your corn prices usually, but right now they’re going opposite directions. That’s not something we can handle going forward on the farm, with the costs going up and income going down,” says Judisch, who farms in Black Hawk County, Iowa.

Price Trends For N, P And K This Year

Mark Tully, senior manager, global market research for Nutrien, tells Farm Journal wholesale nitrogen (N) fertilizer prices are up between 25% and 45%, depending on the product.

The increases are due to unexpected global supply constraints in 2025. “This trend is being driven by conflict in Europe, Middle East, and trade restrictions from China, which have all impacted production and export availability,” Tully says.

Phosphorus (P) and potassium (K) have also trended up this year. Tully reports wholesale phosphate fertilizer prices are up between 20% and 40% depending on the product, while wholesale potash prices are up about 15% from 2024 levels.

National Corn Growers Association (NCGA) projections indicate fertilizer expenditures alone could account for 36% of a corn grower’s operating costs in 2025, with little to no relief expected for 2026.

“Looking ahead to next year, [input costs] look to be going a little higher,” predicts Krista Swanson, chief economist for the NCGA. She says inputs for corn have totaled about $900 an acre annually for the past four years.

Trusted Advisers Can Help With Input Decisions

As farmers grapple with input decisions, Ken Ferrie encourages farmers to lean on their agronomists and other trusted advisers to help think through the process of where to allocate resources while still maintaining targeted yield outcomes.

For example, at current input prices, Ferrie says a corn grower might save $85 an acre by managing nitrogen more efficiently ($35), varying population according to soil type ($20) and switching to a non-GMO hybrid ($30).

“But you have to do your homework before you make these kinds of decisions or yields could potentially fall off a cliff, leaving your balance sheet in worse shape than if you’d made no change,” he cautions.

Judisch is looking to address higher input costs next year by trimming rates where soil fertility levels will allow him to pull back.

“I think we’ll probably trim back our phosphate usage [for corn] a little bit, but we’ll still go forward with potash, and you’ve got to have nitrogen. You really can’t cut there,” Judisch says.

Evaluate Purchasing Options Early For The Best Terms

Josh Linville, vice president of fertilizer for StoneX has been encouraging farmers planning to make fall anhydrous ammonia (NH3) applications to contact their suppliers now to lock in product.

While there is a good supply of NH3 in the pipeline currently, Linville is concerned the expected high demand could deplete its ready availability and lead to increased costs.

“I do think the prices will hold to push higher,” he says.

The best time for growers to contact suppliers to discuss 2026 availability and pricing of fertilizer, seed and other inputs is now, according to Jordan Howe, area manager for Nutrien Financial.

“Have an open conversation with your input providers, and explore options of early buying habits that could put you in a better position or help you capture a discount that maybe you haven’t in the past,” he says.

Howe encourages farmers to not shy away from asking questions of loan officers or financing institutions and read the fine print on any written agreement. Two key questions he recommends asking:

1. What is the price of the input if I want to pay for it in cash versus financing it?

2. If I opt to finance, what type of interest rate am I being offered – is it a fixed rate or a floating rate?

“I am seeing a lot ofunique financing opportunities out there where it might be a low, good rate early, but then it matures and turns into a much higher rate. You’ll want to consider whether you would be able to pay that off before it goes to the higher rate,” Howe says

He adds that being able to pay cash for some portion of your input needs can help you leverage your buying power to get the most competitive financing offers for the balance.

Don’t Forget To Consider Your Tax Implications

In the process of purchasing inputs for next season, keep in mind the potential taxes on products, recommends Jonathan LaPorte, Michigan State University farm business management educator.

“As you plan purchases, remember to maintain flexibility to maximize tax savings this year and next. Don’t overspend this year to save on inputs only to pay more income taxes next year,” he advises.

LaPorte offers an online Input Purchasing Plan Template in Word and Microsoft Excel to help farmers run different scenarios on input purchases based on their cropping plan for the year ahead. The template is available here .

Your next read: 26 Ideas To Cut Fertilizer Costs In 2026

High Interest Rates Could Reshape Agriculture’s Future

Wed, 17 Sep 2025 19:13:47 GMT

“Yeah, you can buy dirt...
And thank the good Lord for it...
‘Cause he ain’t makin’ any more of it.”

The lyrics above are from the 2021 hit country song “Buy Dirt,” which voices a mantra that lives within every farmer, because those who farm view land as more than a commodity; it’s their livelihood and legacy.

Those generational legacies are at the greatest risk of extinction since the 1980s farm crisis. Persistently high interest rates are a key reason.

We’re in an agricultural downturn that owes its roots to many reasons: low commodity prices, high input prices, tariffs, trade disputes, etc. Interest rates happen to be one of many reasons contributing to this latest economic funk.

However, if a 1980s-type agricultural land crisis emerges from this downturn, many will point to the Federal Reserve as their favorite scapegoat. That’s because in its zeal to combat inflation at all costs, the Fed might have just cost many the chance to grow the farm, and in some cases even keep the farm.

The Math That Doesn’t Lie

An Iowa corn farmer pencils out a purchase on quality farmland priced at $11,467 per acre (2024 Iowa State University Land Value Survey). With current financing at 7.6% interest (Federal Reserve agricultural lending rates), the annual debt service alone costs $777 per acre on a 30-year loan with 20% down.

The same acre generates roughly $814 in gross revenue from corn at USDA’s projected 2025/26 price ($3.90 per bushel at 209 bu. per acre average Iowa yield, USDA World Agricultural Supply and Demand Estimates, August 2025). Here’s the devastating math: total production costs, excluding land costs, reach $595 per acre (Iowa State University 2025 crop production cost estimates).

Renting identical land for $271 per acre results in a $52 annual loss per acre. Land ownership amplifies this to a $558 annual loss per acre, a financial wall that makes farmland purchase economically destructive.

To break even on rental operations, corn prices would need to reach $4.14 per bushel — 6% above USDA’s projection. For land ownership to pencil out, corn would need to hit $6.56 per bushel — 68% above the projected price.

Disproportionate Burden

While rising interest rates have impacted the broader economy, no sector has been hit harder than agriculture, particularly farmers attempting to build equity through land ownership. American agricultural producers paid $33.85 billion in total interest in 2023 (USDA Economic Research Service), representing 7.4% of total expenses and making interest the third-largest farm expense category.

The comparison to housing reveals ag’s unique vulnerability. Both sectors experienced similar interest rate increases — from roughly 3% up to 6% to 8% — but with different outcomes. In housing, higher mortgage payments remain manageable for qualified buyers. In agriculture, land purchases now generate negative cash flows that make ownership financially impossible for most operators.

Why the stark difference? Agricultural land purchases are purely investment-driven, requiring positive returns to justify the expense. Unlike housing, which provides utility regardless of financial performance, farmland must cash flow or it becomes economically irrational to own.

Numbers Tell a Bleak Story

Over the past five years, interest expenses have become the fastest-growing farm expense, increasing 19.1% in 2023 and 33.2% in 2022 (USDA Economic Research Service). For the first time since 2001, interest costs on new farmland loans have surpassed the recent average annual appreciation in land values, a fundamental shift in farmland economics.

With corn supplies projected at a record 16.7 billion bushels and continued oversupply expected, the commodity price recovery needed remains years away. Total farm sector debt is forecast to reach $561.8 billion in 2025 (USDA ERS, February 2025), yet the income to service this debt continues shrinking. USDA’s brutal assessment: Ag economists report that 56% think U.S. agriculture is in recession (Farm Journal’s Ag Economists’ Monthly Monitor).

This economic reality is triggering a fundamental shift in American agriculture’s structure. Land ownership is rapidly giving way to rental arrangements. While specific projections for rental acre increases vary, the trend is clear: The rental market will start expanding significantly.

Though Iowa cash rental rates decreased 2.9% in 2025 to $271 per acre, the first decline since 2019 (Iowa State University), many
farming operations struggle to generate profits. Many analysts suggest this dip is temporary, as rental rates and land prices will have to find some equilibrium.

A New Investment Priority

Amid this crisis, one investment category offers opportunity: production efficiency technology. Well-implemented efficiency investments can deliver 15% to 30% profitability improvements with manageable risk and measurable benefits. Producers must adopt these ROI technologies soon to distinguish themselves as best-of-breed operators.

The same cash or equity down payment used for land purchase could drive efficiencies across all acres currently owned and rented. Critical areas include precision fertilizer systems, GPS guidance systems, variable rate technology and comprehensive precision agriculture systems that can achieve up to double-digit ROI on large-scale operations in optimal conditions.

Maximizing efficiency gains can mean survival in the downturn, but they cannot overcome the economics of $11,467-per-acre land with USDA’s projected $3.90 corn.

What Comes Next

The path forward requires recognizing this as a structural transformation. Land prices need 30% to 40% declines, corn prices need recovery above $5.50 per bushel, or interest rates need to drop to 4% to 5% to restore purchase viability. None appear imminent.

Over 50% of U.S. cropland is rented (2022 Census of Agriculture); that is expected to grow. Only the strongest operators will remain as landowners, while others transition to tenant farming with reduced equity-building opportunities.

This turnover in land ownership will mainly occur via generational transfers — from farming families to heirs who may no longer be bound to the land’s legacy. These inheritance-driven transitions will fundamentally reshape rural America’s ownership patterns, often favoring rental arrangements over continued family farming operations.

For farmers, immediate priorities include maximizing operational efficiency through technology, securing flexible rental agreements and building cash reserves for the inevitable land price correction. The bigger question is: Can policymakers, lenders and farmers navigate this transition while maintaining productive capacity and preserving rural communities?

It’s time to get to work, as the math doesn’t lie, and this transformation has begun.

Author’s Note: As of this article’s writing, the Fed had not held its September meeting. In August, it indicated that a .025% rate cut might be forthcoming; rates would still be 2.5 percentage points higher (161%) than before the pandemic.

Steve Cubbage is a precision ag consultant and farmer from Nevada, Mo. He is the founder of Longitude 94, an agriculture sustainability and technology consulting business.

Shell-Shock Fertilizer Prices Leave Farmers, Politicians Asking What Can Be Done

Wed, 17 Sep 2025 15:23:55 GMT

While fertilizer prices aren’t at historic highs, relative to crop prices, the quotes farmers are receiving this fall are making them think twice before contracting their inputs for the 2026.

“We are six weeks from November, the time for fall applications,” says Josh Linville, vice president of fertilizer at StoneX. “We are at the zero hour. Harvest is right now. It’s time to make decisions about what we are or are not going to do.”

He says supply is driving prices. The urgency Linville projects is underscored by the reality of things are unlikely to change for the rest of the fall season relative to fall fertilizer pricing. He lays out a scenario where is a deal is struck today, and imported fertilizer is loaded on a ship in the Middle East or China, it’s four weeks until it reaches our ports. Then it’s another four weeks to get it to the Midwest.

“At this point, there’s not enough time to make a difference,” he says.

So what fertilizer product pricing may be causing the most angst?

According to a USDA report released last week , U.S. production could be sufficient to meet domestic demand for phosphate and most of the nitrogen. However, the U.S. is dependent on imports of potash.

Focusing on fall-applied nitrogen products, Linville says the anhydrous supply is ‘okay.’ One area he’s watching is the import supply from Trinidad and Tobago, which is currently having a 15% tariff applied.

“They can ship that product anywhere around the world,” Linville says. “They don’t need to come to the U.S., so there’s a little question mark there.”

With potash, the Trump administration trade policies and ag groups’ work to have potash listed as a critical mineral (and therefore exempt to tariffs) have helped solidify and keep steady those prices.

The biggest macronutrient to watch is phosphate.

“We’re in very bad shape,” Linville says. “Phosphate is in dire straits. And honestly, it needs demand destruction this fall to rebalance the supply and demand. These high prices are actively trying to kill demand.”

As Linville explains, five countries control about 90% of global phosphate supply. China is the largest exporter—and it used to export up to 10 million tons a year. However, that has been slashed in half to only 4.5 million tons for 2025.

“We don’t have excess production around the world to make up the difference,” Linville says.

In the U.S., Moroccan imports of phosphates have countervailing duties.

According to the U.S. Geological Survey (2022), the United States has 1 billion metric tons in phosphate rock reserves. Phosphate production in the U.S. was 25 million tons in 2006, but it has been on the decline since then. In 2022, U.S. production was less than 15 million tons.

“Our own production has been suffering since 2021 [due to natural disaster, namely hurricanes] and this quarter, we’re running at a 58% operating rate. It’s also due to environmental policies,” Linville says.

Calls for greater transparency.
A new bill, The Fertilizer Research Act , has been introduced by Senator Joni Ernst (R-Iowa) Senator Chuck Grassley (R-Iowa), Senator Tammy Baldwin (D-Wis.), and Senator Raphael Warnock (D-Ga.). This legislation would requires USDA to do a study on fertilizer market competition and pricing.

“Fertilizer is an essential tool our farmers rely on to maintain healthy soil and improve crop yields,” said Senator Ernst in a press release. “I’m working hard to drive down fertilizer costs and make life more affordable for both farmers and consumers. By gaining a better understanding of the fertilizer industry, this research will provide the foundational knowledge needed to give farmers much needed clarity and certainty as harvest approaches.”

If passed, USDA Secretary would consult the Economic Research Service to issue a report including:

A description of impacts on the fertilizer market that influence price
Market trends in the past 25 years
A description of the imported fertilizer and market impacts
Impacts of anti-dumping and countervailing duties
A study of fertilizer industry concentration
A study of emerging fertilizer technologies
A description of whether current public price reporting is sufficient for market transparency

Exclusive First Look: Nutrien Says The Future Is A ‘Clicks and Mortar Business’

Mon, 15 Sep 2025 19:37:20 GMT

To double down on the company’s digitization strategy, Nutrien Ag Solutions has unveiled the Nutrien Hub.

“We say our business is clicks and mortar,” says Rob Clayton, senior vice president of North American retail for Nutrien Ag Solutions. “We are a bricks-and-mortar company, but we’re not naive enough to not know that our customers are getting more sophisticated and want digital tools for convenience. This is about ensuring we have a 24/7 connection with our customers, making it easy for them to connect with us anytime, 7 days a week.”

While Nutrien launched its first portal in 2018, beginning an era in the business where many invested in online portals and e-commerce, this newest iteration of the digital business and how its success is being measured are quite different.

“When we first launched the original customer portal, it was focused around helping growers place orders,” says Jeff Garlich, director of product development for the Nutrien Hub. “As we look at the new Nutrien Hub, our focus is on enabling stronger collaboration between our crop consultants and growers to get the best agronomic outcomes for our customers. That means not only providing financial information, but also agronomic information, environmental insights, and bringing all of those into one place. That was fractured across five different applications two to three years ago, and we’ve been working to consolidate everything into one spot for our growers to go access that information.”

(Images provided by Nutrien)

“We’ve certainly pivoted away from looking at total sales through the digital portal as the ultimate measure of success,” Clayton says. “It’s less about a dollar figure and more about how the Hub enables growers and crop consultants to work together more effectively.”

He goes on to say it’s the talent and skillset of the Nutrien team that is core to how the Hub can amplify their strengths and be a better partner to farmers in how they do business. Key questions that will be answered to measure the Hub’s success are:

Does this improve outcomes for customers?
Do customers save time and effort?
Is it more convenient?
Does it strengthen the connection between customers, Nutrien, and the people who represent the company?

“This is about making Nutrien the easiest company to do business with from an administrative standpoint,” he says. “Over time, we expect more customers will want the option to make purchases online. That’s not our focus right now. For now, and for the foreseeable future, we are not going to be a digital-only company. We will remain a people-first business in the field, supported by a digital platform that empowers our teams to be the most effective partners for farmers across North America.”

Beta-testing.

With its current user base of approximately 75,000, all customers were transitioned from the previous portal to the Hub in May.

“It was the smoothest sunset and switch I’ve had in my career,” Garlich says.

As Nutrien implements a new ERP system across geographic divisions in the US, it’s also rolling out new features of the Hub to users. The HUB is already available across North America, with additional functionality being introduced alongside the ERP rollout, which is targeted to be complete by October 2026. Developed with an in-house team, the project included feedback throughout the process from internal and external users. The team just completed a case study with users in central Indiana. When asked at the conclusion whether the Hub had been beneficial, the answers were all yes, according to Clayton.

“We are cognizant that we’re in 2025, entering 2026, and this really puts the company in our customers pocket,” he says. “For the first time, our company is giving employees and customers a mirrored view of looking at the same information in the same way. You can call the location for information or look it up yourself and get the same answer on invoices, payments and more.”

Foundational features.

There are five key features for the new Hub:

Online payments
View invoices, purchase history, and account details
Manage account profile and notification preferences, including paperless statements
Explore financing offers
Monitor local and field-level agronomically relevant weather conditions, and view shared agronomic crop plans

Nutrien aims for the Hub to deliver industry-leading, precedent-setting functionality, including the ability to aggregate supplier financing programs for users.

“This will be the first time these supplier programs will be fully digitized and simplified,” Clayton says. “We’ll be able to show growers all the programs available to them with a much faster—almost instant--process. Right now, these programs are tracked in spreadsheets, making it challenging for everyone involved—suppliers, farmers, and retailers. In a couple of years’ time, digitization won’t be optional – retailers will need it to stay competitive .”

Another functionality the team has built is the ability for farmers and their crop consultants to collaborate on soil sample results, crop planning, agronomic recommendations, and more. The Hub will also feature daily weather insights from meteorologist Eric Snodgrass and his team. Garlich highlights how the Hub will provide real-time information across the Nutrien business–supporting crop plan confirmations, order placement, a improved inventory tracking and management.

Monthly updates will continue to add new features and functionality, and leaders say to expect announcements as Nutrien brings on additional data-sharing partners for farmers.

“This is the start of the journey for us,” Garlich says. “While we’ve had a tool available in the past, what exists today is not what we’re going to end with. We will continue to enhance and expand it over time. For growers who may have looked at the previous version in the past and decided it wasn’t for them, this is a new tool – one worth revisiting to see how it can truly help support the challenges they face.”

Fertilizer Decisions For 2026 Crop Will Be A Balancing Act

Thu, 11 Sep 2025 20:41:15 GMT

Fertilizer prices aren’t at historic highs, but relative to last year’s prices and the current prices for crop commodities, they are elevated. According to data from USDA and analysis by University of Illinois Farmdoc, fertilizer prices in the state are 6% to 20% higher than early fall 2024. Currently, the price trends weigh heavier on farmers who are starting next year’s crop with what could be a lower nutrient baseline.

(USDA)

“We have two realities here. We have the reality of economics, and we have the reality that crops have a core need for nutrients,” says Karl Wyant, Nutrien’s director of agronomy. “While there’s still debate about what exactly the average yield might be, it’s going to be big nonetheless, so we’re going to have a lot of nutrients leaving the field.”

Wyant says therein lies the balance for farmers — keep soils productive while considering the cost to do so. His best advice — root your decision in data.

“Think about your fields like an accountant would. Take stock of what nutrients are in the field, at what levels, which allows you to work with an agronomist or a crop adviser and start triaging things — what do you absolutely have to invest in nutrient and fertilizer-wise to get through 2026,” he says.

Another facet of return on investment that will be top of mind for farmers is nutrient use efficiency.

“We have a real disparity between crop prices and fertilizer prices. One of the most important things a farmer can do is pick the most efficient fertilizer they can find,” says Ron Restum, chief commercial officer for Ostara.

While fertilizer decisions carry more weight in the year ahead, Wyant says the only mistake he’s encouraging farmers to avoid is to not question their fertility program.

“It’s like meeting with your financial adviser. There’s always room to tweak things according to financials, yield goals, dynamic soil conditions and more,” he says.

Fertilizer pricing strategies to manage risk, per University of Illinois Farmdoc, include:

Forward purchases
Volume discounts
Bundling fertilizer with other products/services
Timing adjustments
Collect prices from multiple sources

New Data Supports Stable Farmland Market

Thu, 11 Sep 2025 19:30:31 GMT

Year over year, Iowa farmland values are down 2.2%. That’s the latest result from The Realtors Land Institute Iowa Chapter survey, where participants were asked to estimate the average value of farmland as of September 1, 2025.

(Realtors Institute, Iowa Chapter)

In the past six months, the statewide average showed a 1.2% decrease. The six months before that resulted in a 1% decrease. This is all for tillable acres.

Iowa Realtors say this continues the sideways trend for land values since the market spiked in 2021 and 2022.

“The market is continuing to confirm it’s stubbornly stable,” says Matt Vegter, Hertz Farm Real Estate. “To post the numbers we did with the uncertainty in the market with tariffs, the price of corn and soybeans, it’s really a bright spot in the farmland market.”

Survey respondents say the market is stable despite bearish corn and soybean prices.
What’s helping stand up the market are:

Lack of inventory
Expectation for an above average crop for most of Iowa
Strong cattle prices

Vegter says for his area of business, central Iowa, listings are down 10% to 20%, and that holds true across most of the state.

“The summer is normally slow, but this was extra slow,” he says. “Typically inventory picks up in the fall through the winter, and we are expecting an average season ahead.”

Pasture acre values across the state trended flat or up for every reporting district, ranging from 0% to +6.8%. Per acre average values range from $4,498 to $5,504 per acre.
Looking ahead through the winter, which is traditionally a time for higher volume in transactions, the Realtor respondents are watching how farmland values could be effected.

“The strongest values are in northwest Iowa and northeast Iowa, where you have the most cattle feeder,” he says. “But those strong values can be attributed to how profitable cattle have been in the last year or two.”

All states in the Chicago Federal Reserve district, average a 3% percent increase in dollar value of “good” farmland from July 1, 2024 to July 1, 2025. And by state:

Illinois 0%
Indiana 3%
Iowa 4%
Wisconsin 11%

“We say that eight of 10 farms we sell are bought by a local farmer,” Vegter says. “That trend won’t change.”

5 Questions to Consider Before You Invest in New Technology

Thu, 14 Aug 2025 13:46:12 GMT

Investing in new technology can be one of the biggest decisions you make on the farm. With so many new tools, systems and innovations hitting the market, it can be tempting to purchase the latest and greatest gadget with the hope that it will be a smart investment. But as enticing as new technology can be, the decision to make a big purchase should never be made on impulse.

Before you go signing on the dotted line, Stephanie Plaster, Extension farm management outreach specialist, and John Shutske, UW-Madison professor and Extension specialist in biological systems engineering, recommend asking yourself five key questions that can help determine whether a new purchase is truly the right fit for your farm.

1. What Issue Are You Hoping To Solve?
“The first question you should ask yourself is, what issue or challenge are you hoping to solve?” Plaster explains. “Understanding what is driving your decision to invest can help you evaluate whether this will be worth both the financial cost and the inevitable discomfort of the adoption transition period.”

While new equipment can make productivity and efficiency easier, technology is rarely plug-and-play. It requires time to learn, integrate and adapt. If you don’t clearly understand the benefits it provides and how those benefits justify the cost, you may end up investing in a solution that doesn’t truly address your needs.

2. What Are Your Skills And Interests?
Your strengths and preferences can make or break a technology investment. Knowing what you and your team are comfortable with can determine how smoothly a system is adopted and used. Technology that aligns with your skills and interests reduces frustration, speeds up integration and increases the likelihood the investment will deliver the results you are expecting.

“This might seem like a silly question when considering autonomous equipment, but it could make or break the success of the technology adoption or change management process,” Plaster says.

If you’re comfortable with software, data analysis and troubleshooting, certain systems might be a perfect fit. If not, you may want to choose technology with strong dealer support.

“Playing to your strengths and minimizing your weaknesses is a solid strategy,” Plaster adds.

3. Do You Have Reliable Internet Access?
Many of today’s technologies require consistent connectivity for updates, monitoring and troubleshooting. Without reliable internet, systems may not run as expected. That’s why verifying your internet connection beforehand is essential so the technology can perform as intended from the start.

“Do you have broadband internet access you consider both accessible and affordable?” Shutske asks. “By formal definition, we’re talking about a speed of at least 25 megabits per second for downloading and three megabits per second for uploading data.”

For farms in rural areas, this may require exploring alternative solutions like fixed wireless, satellite or cellular-based services before implementing connected technologies.

4. Is There Adequate Service Infrastructure?
Even the most advanced equipment will eventually need service, whether it’s routine maintenance, troubleshooting or unexpected repairs. According to Shutske, having access to knowledgeable technicians and reliable support can make all the difference between a smooth operation and days of downtime.

“It’s really important to ask questions of your technology supplier or vendor,” Shutske says. “Our research shows that it’s proving to be a real challenge for local technology companies who want to hire excellent people with technology skills to work in and service agricultural areas.”

He encourages farmers to ask vendors about their staffing, average response times, remote troubleshooting capabilities and how they support customers during the startup phase.

“Will they be able to support you remotely if a service technician cannot come out and travel to your farm?” Shutske asks. “Reliable service infrastructure is essential for smooth operation and maintenance.”

5. How Comfortable Are You With Your Finances?
Ultimately, the decision to invest comes down to the numbers. Not just whether you can afford the purchase today, but whether it will pay for itself and support the long-term health of your operation. A piece of technology that looks appealing on paper can quickly become a financial burden if it doesn’t deliver measurable returns.

“It’s critical to identify if the farm will have the capacity to achieve financial and production performance goals and objectives,” Plaster explains. “That means knowing your current financial position, understanding key measures like ROI (return on investment) and IRR (internal rate of return), and calculating how this purchase will affect cash flow and debt load.”

She notes that salespeople, lenders and accountants will all use different financial language. Therefore, the more familiar you are with the terms and metrics, the more confidently you can make an informed choice.

Build a Decision-Making Framework
While these five questions are a strong starting point, Plaster emphasizes the value of a structured decision-making process.

“To make informed decisions, it is essential to have a clear strategy,” she says.

Tools like a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and gap analysis can help you evaluate current performance, identify areas for improvement and determine whether new technology is the best path forward.

By weighing the problem you’re trying to solve, the skills you bring to the table, your infrastructure and your financial readiness, you can approach a technology investment with clarity and confidence.

3 Questions Every Farmer Should Ask About Biological Products

Fri, 27 Jun 2025 12:15:56 GMT

Pam Marrone, co-founder of Invasive Species Corporation, and previous founder of two additional biological businesses, shared her key takeaways with certified crop advisers during a recent webinar hosted by the Science Societies.

Marrone says there are three areas to evaluate before farmers make an application of a biological product:

Specific use instructions
Science
Data

Specific Use Instructions
“First, read the label,” she says. “When do I use it? What’s the timing? Is there any effect on soil? Can I tank mix it? Can I mix it with fertilizer? Can I mix with other pesticides? Some of the labels I’ve seen can be very specific, and others give you almost no information. So, that’s important. Read the label.”

In reviewing label information, identify if the product is registered with the EPA (which requires a higher level of requirements) or non-registered. Also, the specificity provided on the label is an indicator about the overall product quality and performance.

“There are products that are bugs in the jug, and they have a consortium of microbes in the jug or bag. If the product has 500 or 800, it should be proven why all those specifies are necessary, and if quality control is being done on all 500 species,” Marrone says.

Marrone has been working toward one national certification of products to eliminate any issues with heavy metals or human pathogens being included in formulations.

“Quality control measures need to be robust,” she says.

Science
Marrone says in order to draw a line between “snake oil” and reputable products, the manufacturer and the retailer should be able to explain the science behind the product.

“It’s no longer good enough to just say ‘we have the best microbes,’” she says.

For best placement and performance, Marrone emphasizes the importance of understanding how the biological works.

Data
Marrone encourages farmers to seek out significant proof of field data.

“Small plots don’t always work with biologicals,” she says. “And when you are looking at field data, know where the trials were conducted and what the consistency was.”

Marrone believes today’s biological industry has progressed to a new performance threshold.

“These days, you really want to see a win rate of at least 80%. So, 80% of the time you’re seeing a yield increase of at least 7% —anything below that is just noise,” she says. “I know companies today getting consistent 10% yield increases. That’s where the bar has been raised to.”

FBN Direct Adds New Leadership and Renewed Focus on Crop Protection

Tue, 26 Nov 2024 18:32:05 GMT

It’s not the first time Dean Williams has grabbed a tiger by the tail and dug his heels into ag retail’s foundations. The grizzled veteran from Louisiana’s farm country has cut his teeth across a mountain of warehouses, chem totes, international logistics, mergers, and startups over the last 3 decades. Now he’s leaving the comfort of Simplot’s diversified deep pockets to wrestle a decade’s old startup into crop protection supremacy.

“I’ve always thought that this industry was very inefficient,” explains Williams, now president of FBN Direct. “I think efficiency drives me and I’m very passionate about it because I think we need to make this industry a lot more efficient for our farmers and for suppliers.”

Hired to work alongside new FBN Chief Executive Officer, Diego Casanello, Williams will lean on his experience at United Ag Products (UAP), as a founder of Pinnacle Agriculture, and as a leader at Simplot Grower Solutions and Terral Seed.

“When FBN was introduced in 2014 I saw the things that they were trying to do and I thought it was a great e-commerce platform creating a new future for the farmers,” says Williams. “In hockey, like retail, the puck’s always moving, and to stay ahead of the puck, you have to skate to where the puck is going. For me, this whole move to FBN was about skating to where the puck was going.”

To help him grow the FBN book of business outside his traditional warehouse comfort zone, Williams is leaning on another ag retail veteran, Matt Stacey as the senior director of sales. The two have worked alongside each other at numerous companies over the past 20 years.

“Our goal is to bring more suppliers and products to the platform,” said Stacey. “We’re going to take some of the experiences that Dean and I have had in traditional ag retail and marry those with FBN’s innovative farmer-direct platform to bring new value to farmers.”

The duo is already hard at work building out its crop protection team, hiring key reps with known reputations for outstanding customer service and driving sales. While crop protection is the primary focus, other crop inputs and expanded livestock offerings are also on the way.

“We’re really concentrating on our crop protection sales now, but we have pilots going into fertilizer where we can get farmers more dynamic pricing and suppliers expand farmer access,” said Williams. “As far as seed, we see opportunity getting farmers connected with the right manufacturers, and getting competitive brands to market faster.”

“I think for several years people that are forward thinking have said that they know what the values are around traditional ag retail that are successful,” adds Stacey. “It’s a changing world and I expect those farmers and suppliers eyeing the future are going to embrace online-platforms that deliver superior experiences.”

FBN corporate is also seeing changes under new leadership with Casanello at the helm. Strategically, the company is now building out its footprint in the Midwest and south along the Mississippi corridor down to the delta.

“This is an area where we excel,” said Williams. “We have a great product portfolio for the crops and we have terrific customer density, so our , supply chain and logistics processes can be hyper efficient.”

He says FBN will continue to serve the west coast and its specialty crop customers in places like Washington and California. Beyond crop protection the online retailer will continue to serve the industry in a number of other pursuits including its livestock product portfolio, through its regenerative ag joint venture with ADM called Gradable, and as a leading lender and risk advisor.

“In my mind we’ve tried to bring ag retail to the 21st century using modern technology and the resources that we have today to connect with farmers,” said Williams. “This isn’t just about the cost of goods; we’re focusing on the cost to serve.”

“I personally believe we’re entering an era where it’s very critical for sales reps to embrace technology and use that technology to not only grow their business but to make customers more efficient in their operations,” adds Stacey.

Both Williams and Stacey know hitting sales targets in a year with falling commodity prices is a tall order. They’re aiming for an enhanced team, expanding portfolio, and renewed farmer focus with value as the centerpiece, will provide the startup its next era of growth.

“Over the last few years our average savings for farmers is about 15% and in many cases it’s double that,” said Williams. “So, saving farmers money is a big part of what we do but we want to see farmers succeed. A wise old man told me one time that if the farmer succeeds and you’re doing the right thing to help them, then you will too.”

With a successful career and proven leadership already blotted across his resume, Williams’ next chapter will be building the startup into the foundational ag retailer of the future, built digitally for scale and efficiency but with strong personal grower relationships.

The company is in the middle of its Cyber November sales push running from November 18 through December 13.

Make Fertilizer Decisions With Confidence and Insight

Wed, 13 Nov 2024 19:53:58 GMT

There’s no doubt farmers are hunting to cut costs in 2025 — and one of the targets to trim is fertility.

“If your fertility is in good shape, there’s probably room to pull back a little bit,” says Ken Ferrie, Farm Journal field agronomist. “If you’re going to cut back on fertility for next year, let the soil test do the talking.”

Fertilizer plays a key role in crop production, accounting for nearly a quarter of corn’s production cost. While it’s an input with some year-to-year wiggle room, not everyone is convinced a widespread pullback is in the cards.

“In every call I’ve had in recent weeks, farmers are saying yields are better than they expected,” says Josh Linville, vice president of fertilizer at Stone X. “That means more income, and while it’s not going to make anybody financially healthy, it is certainly better than we expected.”

Linville says more bushels are leading to better margins, but those yields also demand more from the soil in terms of fertility.

“Phosphate needs to be replaced if we want to raise that same crop again next year,” he says. “Our forecasted phosphate demand is growing, and we thought there was going to be significant demand destruction due to poor farm economics.”

New Tool Helps Dial In Decisions

As you make decisions about fertilizer needs, a new dashboard created by USDA and The Fertilizer Institute might provide some insights. It tracks everything from imports to price, including exactly how each input gets to the field.

(Data: USDA; Graphic: Farm Journal)

Impact of Mississippi Water Levels

The dashboard says that according to the 2022 Waterborne Commerce Statistics from the U.S. Army Corps of Engineers, more than 11 million tons of fertilizer (excluding ammonia) originated in New Orleans and moved north in 2022.

That’s why water levels are important to watch.

“Low water levels raise logistical costs because barge owners want the same amount of money regardless of how many tons you have on the barge or how fast it moves,” Linville explains.

(Data: USDA; Graphic: Farm Journal)

3 Fertilizer Production and Demand Factors to Monitor

1. Global Influences on Fertility Markets This Fall
“We still have to keep our eyes on global situations,” Linville says. “We have to continue to watch countries such as China. What are they exporting or not exporting because they’re massive for urea and phosphate globally. Then there’s the Russia and Ukraine situation. Does it spiral any further? There’s also the Israel versus the Middle East situation. Does that spiral? All of these things are centered around major manufacturing and exporting areas of the world.”

2. Demand Trends to Monitor Fertilizer Markets
“We’ve got to watch what demand looks like this fall,” Linville stresses. “Early indications have been for good demand, but that does not mean fall is going to be good. What if farmers say, ‘Yeah, this doesn’t work. I’m staying away from it.’ What if it gets cold earlier? What if it gets wet and stays wet? There are plenty of things that can trip up farmers and change the entire outlook.”

3. Farmer Behavior Shifts and Their Impact on Prices
“We’re used to getting a lot of products sold for spring, and that’s not happening this year. Farmers are dragging their feet, and it’s changing the game,” Linville says. “Unfortunately, it’s a little bit like water behind a dam. Eventually that dam will break. The longer you wait, the more it’s going to hurt when it bursts. Just-in-time demand can push prices down in the short term but eventually, just-in-time demand meets just-in-time logistics. That means higher prices.”

(Data: USDA; Graphic: Farm Journal)

Your Next Read: 5 Ways To Prioritize Fertilizer Dollars

Illinois Farmer Shares 3 Tips to Take More Beans to the Bin

Mon, 21 Oct 2024 20:24:18 GMT

High-yielding soybeans are every bit as important to Dan Vogel as the corn he grows on his central Illinois farm.

“Given fertilizer and other input costs, you could even argue the last year or two that soybeans are a more profitable crop than corn,” Vogel says.

Soybean yields have been steadily increasing, contributing more dollars to his bottom line.

“The past few years we’ve averaged in the mid- to upper 70s range,” Vogel says, who’s based near Roanoke, Ill. He expects this year’s soybean crop to exceed those numbers.

“Our high so far has been 93 bu. per acre on one farm, and I expect to average near 85 bu. per acre overall,” he reported in early October.

Vogel attributes his steady increases to:

planting soybeans early
applying fungicide to protect the crop
fueling the crop with nutrient levels that support higher yields

“We put on the appropriate amount of nutrients for the soybean crop in the given year we’re growing it, instead of trying to bank nutrients or put on a two-year spread like we used to,” Vogel says.

Create An Opportunity For Higher Yields

Drew Beckman, a Becks Hybrids field agronomist who works with farmers in northern Illinois, including Vogel, says he increasingly talks with growers about the need to supply high-yielding soybeans with adequate nutrients.

To explain, Beckman says the removal rate for 1 bu. of soybeans is approximately 3.8 lb. of nitrogen (N), 0.8 lb. of phosphorus (P2O5) and 1.5 lb. of potassium (K2O).

“A 75-bu. soybean crop, for instance, will remove approximately 285 lb. of nitrogen, 60 lb. of actual phosphorus, and 84 lb. of potassium per acre,” Beckman explains.

Along with those macronutrients, he says sulfur is also increasingly needed by high-yielding, early-planted soybeans. Research by Shaun Casteel, a soybean specialist and associate professor of agronomy at Purdue University, indicates that as well.

Casteel’s research shows applying a sulfate sulfur (SO₄²⁻) just ahead of soybean planting through early vegetative growth (V2 to V3) provides the most benefit, boosting yields an average of 8 bu. to 11 bu. per acre. Casteel recommends using 15 lb. to 20 lb. of sulfur per acre as a starting point and evaluating the results by using test plots or field test strips.

Looking Ahead To 2025

While Vogel says he is concerned about the high cost of fertilizer, especially phosphorus, he plans to stick with rates that support high yields.

“We talked about cutting back, but we do variable-rate grid sampling, and we’re going to continue fertilizing based on the recommendations of our soil tests,” he says.

Beckman adds that maintaining a soil pH level of between 6.0 and 7.0 also helps maximize nutrient availability as well as biological nitrogen fixation.

Beckman says the 2024 season provided a reminder that planting in ideal conditions is also important.

“I saw a lot of sidewall compaction, which restricts root growth, reducing nitrogen availability and nodulation,” he explains. “With input costs the way they are, we can focus more on getting the fundamentals done well. Those are benefits that might require more time and effort, but they’re free.”

Your Next Read: As the Wizard of Yield, Ken Ferrie Reveals His Secrets on Unscripted

How To Take Advantage Of Section 1031 Exchange

Fri, 11 Oct 2024 12:00:00 GMT

In times of tight margins, every purchase must have a purpose with ROI top of mind. As you optimize your equipment, crop inputs, farmland and business intellect for the year ahead, take the time to plan your work, and then you work your plan.

We continue to receive questions regarding how tax-deferred exchanges of farm real estate are taxed. The Tax Cuts and Jobs Act of 2017 eliminated the ability to defer tax on personal property but retained it for real property.

However, farm real property is not comprised of just one type of tax property but rather three types. Land is taxed at capital gains rates if it has been owned for more than a year. Land can be exchanged for any other real property including the following two types of properties.

To fully defer the gain on land, you must reinvest the net sales price and all of the cash.

Section 1250 Property
This property is farm buildings such as a machine shed, barn, or corporate provided housing. It does not include livestock-specific structures or buildings used for storage of farm commodities.

If this property has been subject to accelerated depreciation in excess of straight-line, then that portion must be reinvested in Section 1250 property. The portion related to straight-line depreciation can be reinvested in any real estate.

Section 1245 Real Property
A farm can have many types of Section 1245 real property. To fully defer the gain on this, you must fully reinvest the gain in Section 1245 real property. Again, it does not need to be exactly the same type of property but must be Section 1245 real property.

A Few Examples
A farmer who sells land with improvements must be careful of how tax might be deferred under Section 1031. For example, Jane sells a quarter section of land for $1 million. Her basis is $100,000. The only real restriction is that she must reinvest the $1 million into real estate. It could be additional farmland, an apartment building, land with a shop or grain bins.

Variation 1 - On the land is a machine shed with a value of $250,000. She deducted the original cost of $200,000 using bonus depreciation and this is $150,000 greater than straight-line depreciation. She must reinvest at least $150,000 into 1250 property to fully defer that portion. The remainder can be reinvested in any real estate.

Variation 2 - On the land is a grain system which is valued at $300,000. To fully defer the gain, she must buy Section 1245 property worth at least $300,000. This could be land with trees, tiling, or other types of Section 1245 real property. Some common types are listed below. Again, the remainder needs to be invested into real estate.

Variation 3 - Jane sells land with a machine shed worth $250,000 but buys land with a grain system worth $250,000. A grain system is not Section 1250 property, therefore, the $150,000 gain (in our previous example) on the machine shed is taxed, however, the grain system can now be fully deducted using Section 179. Or she can deduct about 65% using bonus depreciation. The gain is not subject to self employment (SE) tax while depreciation reduces SE income. When bonus depreciation was 100%, we often preferred the gain being taxed since 100% bonus depreciation would offset the gain and reduce self-employment taxes.

Whenever a farmer sells land that includes improvements, it requires careful review of how a Section 1031 exchange could potentially defer the gain.

Your Next Read: Market With Purpose: Set Achievable ROI Goals

Making Purchases for 2025: All You Can Do Is Your Best!

Fri, 11 Oct 2024 01:46:56 GMT

It was a crisp, cool day in late February many years ago when I stepped into my Wichita newsroom for our morning editorial meeting. I tied my tie and sat sipping a cup of coffee listening to the overnight police reports when my cell phone rang. The caller breathlessly explained a deal had been struck to sell the city’s largest employer. As the aviation beat reporter at the time, I rushed to grab my bag and headed for the door.

The importance of the story was high, and it became the lead story in every newscast that day. The stress of a 12-hour shift and the pace required to gather interviews, write, edit and report was overwhelming. Of course, this wasn’t new. It’s relatively common in a profession where every single day starts at zero. Farmers generally know the tasks awaiting them based on the timing and rhythm of the season. The news is new every day.

Panic On Pause

As I sat there frantically waiting for my editor to pull together our story knowing we had just minutes until the top of the newscast, I finally hit the end of the rope. I was doing my very best, and if that wasn’t good enough, so be it. From that point forward, those words have steadied my nerves and quieted anxieties about work. All I can do is my best. There is no such thing as going 110%. It’s a lie we tell ourselves to try and wring one more ounce of effort from our tired minds or bodies.

Purposeful Pursuits

I recently received what could be called providential affirmation of this mantra in the form of a fortune cookie. The non-fortune fortune written clearly, “Your best is enough.”

It made me pause and think about my work and the work of our nation’s farmers. I’ve never met a single person pursuing their passions half-heartedly. As you go through this harvest season and begin to make purposeful purchasing plans for 2025, be sure to take a deep breath and remember your best is enough.

As long as it’s truly your best, it’s all you can do.

Your Next Read: How One Farmer Turned the 1980s Disaster Into Enduring Success

The Used Machinery Sweet Spot: How To Get The Most Bang For Your Buck

Thu, 10 Oct 2024 17:00:00 GMT

The four-to-seven-year-old range is the sweet spot for used tractors, combines, sprayers and trucks in terms of maximum depreciation. I’ve written about the magic 10-year mark and farmer demand for tractors in good shape with lower hours.

That’s why the four-to-seven-year-old range is ideal. You run it for a few years and then voila — you have the low-hour, 10-year-old unit everyone wants.

John Deere 9620RX tractors are a perfect example. John Deere made this model from 2016 to 2021, so they’re three-to-eight years old now. The average auction price on 9620RXs in August 2024 stood at $325,988. That’s down 23.5% versus last year’s average auction price of $426,325. It’s a pretty steep drop but right in my sweet spot for depreciation. The current average dealer advertised price on John Deere 9620RXs is at $476,037. That figure is down from the average dealer advertised price just 90 days ago of $485,960.

That’s also an example of how the hard cash auction market leads the way. Used equipment values can go up or down quite quickly and significantly. They went up from fall 2020 into 2023 by a lot. It was a historic rise, but now they’re down here in 2024 — the most pronounced of the drop being in my sweet spot range.

Buying Opportunities Ahead
Accentuating the drop in value on four-to-seven-year-old used units is the large uptick in volume hitting the auction block. Through August 2024, I’ve already seen a 150% increase in the number of 9620RXs sold at auction versus all of 2023 combined.

Watch for November and December 2024 to be exceptionally busy on the auction front as dealers continue to aggressively pare down their late-model used inventory levels. This is when farmers become active buyers looking for IRS Section 179 tax write-offs on equipment purchases.

Yet to be determined is if 2024’s lower profitability environment will weaken the annual year-end run-up in equipment purchasing.

I find individual auction price examples to be the most telling. We filmed an auction in Paris, Mo., at the end of July for our “Machinery Pete” TV show. It had the largest number of large late-model equipment I’ve ever seen at a sale. A 2018 John Deere 9620RX with 1,933 hours and an extended powertrain warranty (good until December 2025 or 2,865 hours) sold for $244,000. Less than two years earlier, a December 2022 farm auction in Spring Valley, Minn., had a 2018 model 9620RX with 1,566 hours sell for $410,000.

There are going to be some great buying opportunities the rest of 2024 and into 2025 on four-to-seven-year-old units in nice condition. Just remember Machinery Pete’s simple math advice: In just a few years, they’ll be the 10-year-old units everyone always wants.

Your Next Read: 10 Smart Ways to Start Cutting Your Fertilizer Bill

Market With Purpose: Set Achievable ROI Goals

Thu, 10 Oct 2024 12:00:00 GMT

In keeping with the “purchase with purpose” theme for the week, let’s talk about farming with purpose and marketing with purpose.

I’m going to start with farming with purpose. More than a few years ago, I wrote a booklet titled, “Making the Family Farm the Family Business” that included writing a mission statement, vision statement and values statement.

Too many farms try to operate without those things. Without these guiding principles in writing, framed and hanging on the wall, the risk is you’re farming just to keep busy — the least rewarding kind of work. With a mission or a destination of what you want your business to be, and an understanding of what it could be, the work takes on purpose.

Let’s also consider the idea of marketing with purpose. It seems too many farmers view a cash grain sale as a “give up.” I can’t believe how many times I’ve heard, “I guess the price won’t go any higher, I might as well sell.” Or how about this one: “I guess I better sell before prices drop even more.”

A cash grain sale should be a celebration — your opportunity to cash in on the efforts of an entire growing season. If you have a long-term business plan that includes long-term goals for your business, and if making cash sales now helps to advance your business toward reaching those goals, cash sales can (and should) be a celebration.

“When a single year’s marketing effort is tied to longer-term goals, you’ll develop a constructive, disciplined approach to selling each year’s production.”

If reaching a marketing goal allows you to reach a higher goal in your overall business plan, you’ll look at marketing as a single step in your business and not an end-all or terminal step. When a single year’s marketing effort is tied to longer-term goals, you’ll develop a constructive, disciplined approach to selling each year’s production.

Perhaps the easiest way to market with purpose is to set return-on-investment goals. If you know a 5% return on 20% of expected production will allow you to make progress toward the long-term goals of your business, it should be easy to sell 20% of expected production at a 5% ROI. And it should be easy to make the sale even if prices are trending higher because there is a reason for the sale. Write it down and have the discipline to follow through.

Write the mission, vision and value statements. Write goals for your business (and your business partners). Write a marketing plan that will move your business toward achieving long-term, high-level goals. Market with a purpose.

Quick Outlook

Most areas are handling more corn and soybean bushels than ever before. Your first priority is to keep you and all those around you safe. Priority No. 2 is to have a positive return on 2024 crops — probably the most expensive crops you’ve ever grown. Set a reasonable ROI goal and enter price orders to capture opportunities.

Your Next Read: You Need To Invest With Intent To Create Your Legacy

Tips to Evaluate Farm Programs As A Potential Safety Net in Tough Times

Wed, 09 Oct 2024 17:00:00 GMT

“Give me a show of hands… how many people in the room farmed with PIK certificates in the ‘80s?” asked Ken Ferrie to the 100-plus corn and soybean growers in the audience.

A smattering of hands shot up in the air. Some of the younger growers glanced at each other, puzzled about the 40-year-old farm program Ferrie was referencing.

Payment-in-Kind, or PIK for short, was implemented by USDA during the early years of the 1980s farm crisis, when production agriculture was under extreme financial duress, Ferrie explains. He remembers the time well, as he was just starting his career.

Four decades later, agriculture again faces severe economic constraints with commodity prices below the cost of production for many growers. Ferrie’s hope, and what he told his farmer audience this summer, is that farm programs could potentially help them weather the economic storm and keep their operations intact over the next couple of years.

“No matter what your opinion is about climate smart farming or the government initiatives and industry incentives out there, they are potentially an avenue to square up some revenue income,” Ferrie says.

A potential game-changing opportunity for farmers that has captured headlines this year is the 45Z Clean Fuel Production Credit . The new credit goes into effect on Jan. 1, 2025, and will reward renewable fuel manufacturers for lowering the carbon intensity (CI) score of their products, such as ethanol, biodiesel and sustainable aviation fuel.

To participate in 45Z, farmers will sell grain with the grain’s carbon data tied to its value. Much to agriculture’s frustration, just how the program will work and farmers will be compensated is yet to be undetermined .

Concerned farm groups, including the American Farm Bureau Federation, American Soybean Association, National Corn Growers Association and National Farmers Union, sent a letter in to Treasury Secretary Janet Yellen and U.S. Office of Management and Budget Director Shalanda Young, asking them to ensure the Clean Fuel Production Credit (45Z) works for U.S. farmers.

Despite the unknowns, Ferrie hopes farmers will look into 45Z and other farm programs and evaluate whether they would be a good fit, once funded.

“They could be the bridge that puts us into some profit while we are waiting for these down markets to improve,” Ferrie says.

He offers five additional thoughts on how farmers can evaluate the farm programs:

Look for the source of revenue. “Determine who is putting the money up for the project. Know who you’re dealing with,” Ferrie says. “Is it all government money, all private money, or is it a combination of the two?”
Consider whether you will be paid for practices or performance. “With government funding, you’re usually paid for practices,” Ferrie says. “With private dollars or industry initiatives, you could be getting compensated for environmental performances.” Don’t expect to be paid by two different organizations for using the same practice on the same acre. This is a standard rule with carbon markets. Typically, you can’t sell an asset to one company and then again to another.
Evaluate nutrient management programs closely before signing up. They can differ widely by state and region and have different requirements, Ferrie explains.

“You have to be careful that you don’t sign up for one that would cause a large reduction in your yields,” he cautions. “If you’re used to putting on 250 lb. of N to grow your crop, because that’s what it takes, and now you’re asked to put on 170 lb., you could take a beating in yield, and that’s not going to be replaced.”
Go slow with any program that requires you to make a significant change in practices. Ease into adopting no-till or growing cover crops. “We have a lot of successful growers out there using both, but we’ve also had a lot of crashes,” Ferrie says. “If you’re going with no-till and cover crops, get your farm into a vertical format. You’re going to have to take out those horizontal layers that have been there throughout your farming career, but that will make your no-till and cover crops work a lot better.”
Some growers are reluctant to sign on to a new program with the upcoming elections. Some of the programs not yet funded could be tossed aside by a new administration with different priorities, Ferrie says. His advice: “Look at things like the Regional Conservation Partnership Program and others where the funding is already approved.”

Your Next Read: Cover Crops to the Rescue

You Need To Invest With Intent To Create Your Legacy

Wed, 09 Oct 2024 12:00:00 GMT

I will spend hundreds of millions of dollars in my lifetime — and I’m just an average-sized Illinois farm with a growing seed conditioning business. How do we use those dollars effectively and strategically? We purchase with a purpose.

There are three areas I’d like to focus on: land, physical assets and personal value.

What Are Your Land Goals?
Has land historically come in bits and pieces through connections, opportunities and unforeseen circumstances? For most farms, the answer is yes. I encourage progressive farms to look 50 years down the road. For instance, what does that look like if you currently own 500 acres of land and want to own 1,000 acres when you’re 80?
At today’s prices in Northern Illinois, you would need $6.5M ($13,000 per acre). On a 30-year note, 10% down, at 5% interest, that note will cost you $11.3M ($22,600 per acre).

That’s if you buy today. What do land costs look like in 25 years? I sure don’t know, but likely not lower. Land is too expensive and important not to have a plan in place.

Some key questions you should ask yourself are:

Does where I buy the land matter? Does it need to be next door or can it be farther?
Do I take on the debt now or later? What am I doing now to ensure I can cash flow that balance later?
What specific type of land am I looking for? Size of parcel, quality, shared use, etc.

These questions and many more are things you should have in your mind and on paper to purchase with purpose. Grant Wiese is an ag lender in Nebraska who puts out a free weekly newsletter on farm640.com, that I highly recommend you check out, and he just published a farm buying toolbox you’ll want to see.

What Will Have a Legacy?
Let’s talk about physical assets next. Would you rather purchase a tractor or a watch?

I’m not here to help you convince your spouse that a cellar of quality whiskey or wine is a purchase with purpose (good luck there), but it does warrant a look at other physical assets that will bring value to your business.

I recently purchased a dilapidated gas station on the main street of our small town. I have invested a lot of money into it because it is a high-traffic route and provides great visibility for signage, advertising, a name for our business and our personal reputation for improving our community. This purchase was done with purpose and a long-term vision. On paper, it’s a 1945 cinder block, two-stall garage with an office space and two bathrooms with recent renovations. In reality, it is much more. Its purpose is to fulfill a 20-year vision for our business and community involvement.

We also recently purchased a vacant warehouse space for our seed business in a nearby small community. I aspire to grow into the space with our seed business growth, which is happening faster than I anticipated. It’s a delicate balance not to get the cart ahead of the horse, but we are manifesting our goals through deliberate action by deciding what we will purchase, cash flow and improve, and what has value to our business long-term.

What physical assets will have a legacy impact on your family and farming operation? Grain bins, livestock buildings, processing facilities, multiuse buildings, additional income streams and maybe some antique tractors are all possibilities for most farm businesses to consider. Remember, though, physical assets only have value on the balance sheet and are not the equivalent of cash unless you are willing to sell them. Purchase wisely.

What Do You Value?
Finally, let’s look at what purposeful purchases have the most personal value. I’ll start hot with a topic most farms neglect: a home gym. We buy $10,000 of inputs without batting an eye, but most would balk at the possibility of spending that on weights and a few machines. Are we scared to spend the money, or are we scared of the commitment and dedication it takes to invest in ourselves?

Next in the chute is vacation and time with family. It can be a weekend at the nearest water park, camping in the state forest or staying home and shutting off the work emails and phone calls to just spend time with your family and work on house projects before harvest starts.

One of these days, we’re all going to wake up dead, and what the hell has all of the business work been for if we didn’t enjoy time with our family, watch our kids grow up and do things we enjoy? My wife and I recently purchased a plot of land at a nearby lake community that gives us access to the beaches, playgrounds and fun in the sun.

I don’t care to ever own a boat or build a lake house, but the $1,000 a year for a lifetime of memories for my girls as they grow up is an easy check to write.

Last is the investment into our retirement strategy and planning, something you will hear more about from me this year. How much investment does it take now to live the life you want to live when your mind or body decides farming is no longer something you want or need to do? More than $5,000 a year is required.

If you’re over 45 and haven’t gotten serious about investing or retirement, you should start seriously crunching some numbers and decide if trading the combine is the best bet or if you should start furiously socking away money and investing. When it comes to living a purpose-driven life, purchasing or investing in your future will be crucial.

How will you purchase with purpose for the remainder of 2024 and into 2025? I hope you will consider my points and also feel free to reach out if you want to talk about your land, physical assets or personal purchases from an outsider’s perspective.

Your Next Read: Uncrapify Your Future: What Could You Do Differently?

Uncrapify Your Future: What Could You Do Differently?

Tue, 08 Oct 2024 17:54:23 GMT

Feeling the weight of a down market isn’t lost on Jeff Havens. As an entrepreneur and motivational speaker, his entire business disappeared in the wake of the COVID-19 outbreak.

“I had contracts for six or nine months and financially was set to have one of my best years,” Havens recalls.

He had to reinvent himself and his business as cash flow dried up.

“One of the advantages agriculture has is that it’s a relatively slow and stable sales cycle,” Havens says. “It’s not an industry like fashion where things change every week or month. That affords you time to think about what you could do differently.”

1. Think Beyond Commodity

Havens says innovation can take many shapes and recommends looking beyond the often-miniature margins of commodity production.

“If all you’re doing is selling a commodity crop, then you’re basically just beholden to the whims of the market,” he says. “Are there other ways to take more control of your business, to set your own prices (i.e. a corn maze, pumpkin patch or U-pick) in order to get beyond straight commodity margins.”

2. Fail Small

Trying something new or testing an idea doesn’t have to be all or nothing. Havens recommends starting small rather than risking the entire operation. There’s no reason to plant an entire farm in a new crop or completely move to a different production system when it can be done slowly.

“None of us want to make a big mistake, and we certainly don’t want to make mistakes that are catastrophic,” Havens says. “Take what you consider to be an acceptable risk, and ask yourself what is the worst thing that can happen if I try this? If the worst thing that happens is you don’t have a farm, or you have to sell your farm, then that’s maybe not a risk you should take. If the worst thing that happens is you lose 10% next year, if that’s survivable, then that’s a risk you can certainly consider.”

3. Harvest Good Opinions

Not all advice is equal. Some people chirp about everything, while others take a measured approach to offering input. Havens says find a trusted voice or two and forget the rest.

“Be very intentional about whose opinions you care about,” he says. “You don’t have to take their opinions, but it’s good to have a couple of people in your corner to say, I’m with you on this journey.”

4. Embrace Openness

Above all, talk to others and be open about your situation. In this self-motivated, self-driven lifestyle, farmers tend to solve problems alone and in a stoic fashion. Havens says, it’s okay to share and be open.

“There’s not a single person on the planet who doesn’t occasionally need the help and support of the people around them,” he explains. “The person you share it with isn’t mad at you. They’re there to support you. It can be a relief compared to keeping it all bottled up inside.”

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5 Ways To Prioritize Fertilizer Dollars

Tue, 08 Oct 2024 12:00:00 GMT

All substance and no flash might best describe the fertilizer strategy Clark Riemer is banking on to fuel his 2025 corn crop.

If a nutrient or supporting input won’t pay its way next season, Riemer has already eliminated it from his budget. The harder decisions, he says, have been around figuring out what the corn crop absolutely has to have nutrient-wise to reach his yield goals with some potential for a return on investment.

“We had a whole-farm yield average of 225 bu. per acre last season, our best year ever,” says Riemer, who farms near Kewaunee, Wis., east of Green Bay. “With the bad weather this year, we’ll be lucky to average 190 bu., but I believe we have the ability to average 250-bu. corn, which is what I’m shooting for in the next decade.”

Furthermore, Riemer has every intention of setting his farm up for success long term so his 15-year-old son, Kenneth, who farms with him now, has the opportunity to take over the operation someday.

With those long-term goals in mind, Riemer is bearing down on all input costs in the short term, especially fertilizer.

“We have to figure out how to survive the next year or two and, hopefully, we’ll get through this,” he says. “I’m trying to make every dollar I spend pay for itself.”

Here are five ways Riemer is building his fertility plan for next season and laying the framework for the future.

1. Make balanced decisions.
That requires thinking through various nutrient scenarios and allowing time for reflection and evaluation of potential outcomes, Riemer explains. “Fertility decisions for next season will potentially impact my soils and yields for several years from now,” he says. “As best I can, I will continue using the 4Rs, the right rate, right time, and so forth, but I know I have to cut back, given the price of corn.”

2. Examine soil tests to find fields with higher nutrient levels.
“I expect to dip into my nutrient bank account and write some checks to pay for this next crop,” he says.

Riemer, who strip tills, normally applies triple superphosphate in the fall, but it won’t make the cut this year. Soil tests are a little on the high side for phosphorus.

He also considered cutting fall-applied potash entirely, but decided against it. “Potash is a key factor for drought tolerance, standability and the cell wall structures of the plant,” he explains. “We have lighter soil, and I believe with the lower organic matter we have some leaching, so we need that nutrient.”

Riemer’s compromise is to use a reduced rate of potash across all acres. “I’m trimming it back to 100 lb. instead of the 150 lb. I usually apply,” he says.

3. Use management zones to reduce fertilizer rates.
Management zones help Riemer identify areas within fields where fertilizer rates can be tweaked. It takes a lot of effort to micromanage acres, he acknowledges, but it can save you a lot of money.

“It could be more economical to cut $30 on one field and nothing on another.”

Farm Journal Field Agronomist Isaac Ferrie likes that Riemer uses management zones to identify how to reduce fertility levels without creating a negative impact on yield.

“Once you go through the process, you might see instead of cutting $15 of fertilizer across the board, it could be more economical to cut $30 on one field and nothing on another field because you don’t have the fertility there to give up,” says Ferrie with Crop-Tech Consulting.

Budget a specific dollar amount for fertilizer, encourages Stephanie Zelinko, national agronomist for AgroLiquid, and then adjust as needed. From evaluating historical data, she says growers usually invest 16% to 20% of their anticipated income from a corn crop on fertilizer. She offers this example:

“Say we expect to grow a 200-bu.-per-acre corn crop and make $5 a bushel. That’s $1,000 of income per acre,” Zelinko says. “Twenty percent of that is $200, and that would be my starting point for a fertility budget.”

4. Communicate regularly with retailers and other advisers.
A significant win-win for Riemer is locking in fertilizer prices and products with his retailer in the fall but having some flexibility on when the final bill is paid.

“That helps my retailer, and it helps me avoid putting the bill on my operating loan and paying that high interest,” he says.

Ferrie encourages farmers to stick with their trusted advisers. “Stay dialed in with the ones who have partnered with you in better financial times,” he says. “Continue to harness their knowledge and weigh their insights on fertility and other agronomic decisions to help you get through this tough season.”

5. Evaluate application timing for nutrients.
Riemer says he will adjust the timing and products if such changes are practical and can help financially. One thing he won’t do is make any fall applications of anhydrous ammonia because he doesn’t want to take a chance of putting it down nine months in advance and then losing it before the crop has a chance to use it. Instead, Riemer will focus his dollars and efforts as much as possible on in-season fertility. With nitrogen, for example, he will make preplant, at planting and sidedress applications, but he won’t broadcast anything.

His corn-on-corn ground will get 300 lb. per acre of ammonium sulfate preplant. Corn after soybeans will get 200 lb. of AMS per acre upfront. Both corn crops will get 30 units of nitrogen per acre in the starter. All corn will get a sidedress application of nitrogen with urea when it’s about the height of a pop can.

Kelly Robertson, a certified crop adviser and owner of Precision Crop Services, Benton, Ill., offers one concern about farmers opting to focus on in-season fertilizer use.

“If everybody waits until spring, I’m concerned a lot of it’s not going to get on,” Robertson said during a recent Illinois Soybean Association podcast. “Retail does not have the capacity, the trucking and infrastructure to do it all in the spring. We need to think through not just the economic side but also the logistics implications of getting products applied.”

Your Next Read: 10 Smart Ways to Start Cutting Your Fertilizer Bill