Risk Management

How McCarty Family Farms Hedges Fuel Costs to Protect Dairy Margins

Fri, 08 May 2026 13:46:42 GMT

The great rebalancing of 2026 has taught dairy producers a vital lesson: You cannot control the wind, but you can certainly adjust your sails. While much of the industry’s focus remains on milk checks and component values, a silent predator often lurks in the shadows of the balance sheet — the fuel pump.

For an operation like McCarty Family Farms in Rexford, Kan., the 2025 Milk Business Leader in Technology Award winner, which milks thousands of cows across multiple states, the scale of production is matched only by the scale of its energy requirements. With feed trucks, tractors and skid steers running 24/7, fuel is not just a line item; it is the lifeblood of the operation. And in an era of global energy volatility, leaving that lifeblood to the whims of the spot market is a risk Ken McCarty, co-owner and manager, is unwilling to take.

The Math of the Spike

To understand the McCarty strategy, one must first understand the stakes. On a modern, large dairy, the equipment never stops. The sheer volume of TMR moved and the constant management of manure requires a fleet that consumes thousands of gallons of diesel every week.

For large herds, like McCarty’s, a 50¢ spike in diesel can derail a quarterly budget. In reality, that half-dollar move isn’t just an inconvenience; it represents a massive shift in capital that could have been reinvested in herd health, technology or labor. By locking in fuel prices, McCarty isn’t just buying diesel; he is buying the psychological and financial stability required to manage a complex organization.

The 18-Month Horizon: A Layered Approach

The McCarty strategy is defined by its proactivity. While many producers wait for a good day at the local co-op, McCarty and his team are looking 12 to 18 months into the future. They don’t view fuel procurement as a single transaction but rather as a continuous process of layering.

The process begins with a deep dive into data. Working closely with their fuel seller, they evaluate historical usage patterns. They don’t just look at what they used last year; they account for upcoming changes, whether that’s an expansion in acreage, a shift in equipment efficiency or a change in the beef-on-dairy program that might increase hauling requirements.

Once the known demand is established, the layering begins. As forward months become available on the market, the McCarty team begins to book physical gallons. The goal is to reach approximately 90% coverage by the start of the budget year on Jan. 1.

Mitigation, Not Speculation

Perhaps the most important takeaway for other producers is the McCarty philosophy on winning. In a world of high-frequency trading and market gurus, it is easy to fall into the trap of trying to time the bottom of the market. Ken McCarty is quick to dispel that notion.

“We have never viewed this as a money-making strategy,” he says. “Instead, it is purely a risk mitigation strategy.”

For McCarty, the goal isn’t to hit the absolute lowest price of the year — a feat that is more about luck than skill. Instead, the benchmark is historical consistency. If the farm can land in the bottom third or bottom half of the 5- to 10-year historical average or even just maintain consistency year-over-year, the strategy is a success. This consistent-cost model allows the farm to set its milk margins with confidence, knowing that this large input on the farm is already settled.

The Hidden Exposures

Even with 90% of their consumed fuel locked in, McCarty acknowledges the limits of the hedge. The farm remains exposed to indirect fuel costs — the market effects on purchased goods and, perhaps most significantly, milk freight increases.

This distinction is crucial for producers to understand. Locking in the diesel for your own tractors doesn’t protect you from the fuel surcharges applied by the third-party haulers moving your milk or the trucks delivering your distillers grains. This reality reinforces why being aggressive on the fuel you can control is so important; it narrows the window of vulnerability on the variables you cannot control.

Beyond the Contract: Efficiency as a Hedge

While forward contracting provides financial protection, McCarty is also focused on the physical side of the equation: consuming less. Every gallon of diesel not burned is a gallon that doesn’t need to be hedged.

The farm is constantly searching for ways to reduce its energy footprint. This includes everything from optimizing feed routes to reduce idling time to investing in newer, more fuel-efficient equipment. In this view, energy efficiency is the ultimate long-term hedge. It is a permanent reduction in exposure that pays dividends regardless of what happens in the energy markets.

“We have lived through times like this in the past and have no desire to repeat it, so ultimately, if we can be in the bottom third or bottom half of the 5- to 10-year historical average, or at least consistent year-over-year, then we are satisfied,” McCarty shares. “Of course, we are constantly searching for ways to consume less fuel and energy in general as an additional method of reducing our exposure to energy markets.”

Lessons for the 500-Cow Producer

While the McCarty scale is vast, the principles are entirely scalable for a modern 500-cow operation. Whether you are milking 40,000 or 500, the great rebalancing of the market means that margins are found in the details.

Compeer Financial ag economist Megan Roberts concurs with McCarty and says hedging isn’t about hitting the top or the bottom of the market; it’s about avoiding the economic risk of doing nothing.

“Risk management strategies, including hedging, are less about predicting the market and more about carefully managing exposure, using consistent, incremental decisions to smooth volatility in a way that fits the needs of your dairy operation,” she says. “Every farm is different, but in today’s environment, having a clear plan in place and following it with discipline is a wise strategy.”

In the end, the McCarty’s approach to fuel is a reflection of its approach to dairy farming as a whole: disciplined, data-driven and focused on the long game. By taking the volatility of the energy market off the table, it allows McCarty’s to focus on what truly drives the farm’s success: the health of the cows and the quality of the milk.

In a year where milk prices are shifting and trade policies are in flux, the lesson from McCarty Family Farms is clear: Protect what you can, manage what you must and never leave your margin to chance.

Farmers Emphasize Demand, Not Payments, Is The ‘Bridge To Better Times' For Agriculture

Wed, 22 Apr 2026 22:25:36 GMT

Two Midwest farmers are pinning their hopes for the future on stronger demand for corn and soybeans — especially the latter — as they navigate tight margins, high input costs, and an uncertain price outlook.

Northern Illinois farmer Steve Pitstick and south-central Iowa farmer Dennis Bogaards say they have exhausted most cost-cutting options for this season. They believe future profitability now rests on whether demand for both crops — particularly from domestic soybean crush and fuel markets — expands enough to support higher prices.

One silver lining currently, Pitstick says, is his relatively strong position on fertilizer heading into the 2026 planting season.

“We will do pretty much the dry spread program we always do,” he says. “We cut the rates a little bit on the phosphates just because of price. We booked our 32% in September, something we traditionally do. We have all the nitrogen bought, so I feel good about 2026 from that aspect.”

While he believes additional fertilizer is available, he notes it will likely be priced at a premium.

“I believe I can get more if I need it. I may not like the price, but I can get more,” he told AgriTalk Host Chip Flory during the weekly Farmer Forum segment.

Little To No Expansion On The Horizon

As the season begins, both farmers emphasize that the coming years will have farmers focusing on survival and strategic adjustments rather than acreage expansion.

One adjustment Bogaards is making is front-loading some of his nitrogen needs this season while leaving a portion open in case prices break.

“We booked anhydrous early on for this year, back in early fall, and got an OK price,” Bogaards says. “I have a little bit of sidedress that we do. We book about half of that, and I sit open on the rest of it. I’ll wait and see where it goes.”

Bogaards remains committed to sidedressing as long as product is available and prices do not continue ratcheting up. “If I can get it, I’ll put it on, unless it is a crazy, crazy price,” he says.

Like many U.S. growers, both Bogaards and Pitstick say there is virtually no room left to cut fertilizer use without risking yields.

“There is no place to cut back. We are being as efficient as we can be,” Pitstick says.

Bogaards agrees, noting that nitrogen is not the place to skimp. “Maybe a year or so, you can cut back on the P and K a little bit, but you do not want to get caught in three or four years of that.”

He also remains reluctant to drop fungicides. “Fungicides really pay off,” he says. “In the past, we did not use them, but the last few years they really paid, and I would hate to not spray them.”

Uncertainty About The 2027 Crop Mix

While the 2026 crop is largely “business as usual,” both farmers told Flory that 2027 brings real uncertainty—especially regarding nitrogen supplies. Pitstick is concerned about how global demand could impact costs for U.S. producers.

“I am worried about the price of the nitrogen,” he says. “It may not be an issue in the United States from a supply standpoint, but the rest of the world… could export our product because of opportunity cost, and that drives the price up. It is a total wait and see.”

Flory underscored how global trade flows directly shape what American farmers pay, noting that some fertilizer shipments originally destined for the U.S. were recently rerouted.

“Some boats are diverted from the U.S. to other countries,” Flory says. “If you want your share, you have to beat the next guy in line with the price.”

If nitrogen prices soar while corn prices stagnate, Pitstick says his rotation could shift. “That might change how we do things in 2027. We may have to go to more soybeans,” he says.

Bogaards also expects to alter his corn–soybean mix, given the potential demand from domestic crush and renewable fuels.

“In the past, we were probably 60% to 65% corn,” he says. “We have been backing off of that. I still do a little bit of corn-on-corn, but I might try to go to a 50–50 rotation.”

Flory believes this shift could help rebalance supplies and improve price prospects. “If we can pull some acres away from corn and get this thing rebalanced, maybe that is our bridge to a better time,” Flory says. “Our bridge to a better time is more demand across the board and crops competing for acres — not another payment.”

Bogaards says the shifting economics are already evident. “A couple of years ago, people said soybeans are a drag on our financial statements. It looks like almost the opposite right now.”

Even so, Bogaards is cautious about making long-term decisions based on short-term signals. “I can change acres right now, but by next fall, it might be the worst decision. I think you have to go with your rotation and stick with it.”

Pitstick links his long-term outlook to fuel sector growth, noting that both corn and soybeans increasingly function as energy crops.

“Some of the most profitable years of my career were when we had high fuel prices because we were also a fuel crop,” he says. “I have some optimism that these high fuel prices will cause some demand and increase our crop prices.”

For now, both farmers say their immediate job is to manage through 2026 while keeping their options open. With high costs for fertilizer, fuel, and machinery, they see expanded demand as the only realistic path forward.

“It is just survival at this point,” Bogaards says. “We just have to make sure we can survive and keep plugging through it.”

You can listen to the complete discussion between Bogaards, Pitstick and Flory on AgriTalk at the link below:

One Big Beautiful Bill Might Force Farmers to Rethink Farm Business Structures

Tue, 10 Feb 2026 15:02:08 GMT

At a time when farm income is under growing pressure, the One Big Beautiful Bill is reshaping the farm safety net in ways that go well beyond bigger checks or better crop insurance coverage. According to Farm CPA Paul Neiffer, the legislation could quietly push producers toward fundamental changes in how their farm businesses are structured, decisions that could have long-term implications for taxes, payments, and succession planning.

While the bill was signed into law in July of 2025, there’s still guidance that needs to be set before farmers can make vital decisions. And some of the most favorable changes- like to crop insurance coverage- won’t go into effect until late this year.

While much of the early conversation around the bill has focused on higher reference prices and stronger crop insurance subsidies, during the 2026 Top Producer Summit, Neiffer told attendees the real impact may not be fully understood yet, and farmers should be paying close attention.

“This bill changes the rules we’ve all been operating under for the last 20 years,” Neiffer says. “And when the rules change, the structure of the farm suddenly matters a lot more than it used to.”

Financial Stress Is Already Building in Farm Country

The bill arrives against a backdrop of tightening farm finances. USDA’s updated net farm income forecast showed a sharper-than-expected decline for 2025 , with early projections for 2026 offering little comfort, particularly for row-crop producers, a trend doesn’t surprise Neiffer.

“It peaked out in 2022, and it’s definitely been going down ever since,” he explains. “If you’re a row-crop farmer, 2026 is probably going to look a lot like 2025 unless something changes on the price side.”

While government payments will help stabilize income, Neiffer is blunt about what would happen without them.

“Without ARC, PLC, the FSA payments, the SDRP top-ups, without all of that, most row crop farmers would absolutely be struggling right now,” he says.

Payments tied to the One Big Beautiful Bill are expected to start flowing in October, providing a critical backstop during a period when margins remain thin and balance sheets are tightening across large parts of the country.

Crop Insurance: One of the Bill’s Biggest Wins

Neiffer gives the crop insurance provisions in the One Big Beautiful Bill high marks , calling them one of the clearest positives for producers.

“I’d give it a B-plus to A-minus,” says Neiffer.

Why such a high grade? The bill boosts premium subsidies across most revenue protection levels:

Coverage levels from 55% to 75% receive a 5 percentage-point increase in premium subsidies.
80% and 85% coverage levels see a 3 percentage-point increase.
Supplemental Coverage Option (SCO) now extends up to 90% coverage, and farmers can now pair ARC with SCO, something previously prohibited.
SCO subsidies jump from 65% to 80%, making higher coverage far more affordable.

For many producers, especially wheat growers, these changes significantly reduce out-of-pocket costs while expanding protection.

Beginning farmers also receive a major boost. Previously limited to a 10% premium subsidy bump for five years, the bill expands the benefit to 10 years, with even higher subsidies in the early years.

“For young farmers, it can now make financial sense to farm on their own instead of with their parents,” Neiffer said. “From a family standpoint, they’re actually going to make more money.”

Prevent Plant Still a Pain Point

Not everything is a win. One of the main reasons Neiffer doesn’t give the crop insurance changes a straight A is because of changes to prevent plant, something that remains a concern, especially in high-risk regions like Arkansas and the Dakotas.

Under previous rules, farmers could buy up an additional 10% of coverage. That was later reduced to 5%, and Neiffer says USDA’s Risk Management Agency is still discussing cutting or eliminating that option entirely.

“That extra 5% really matters when you’ve got too much water,” he said.

While not enough to outweigh the bill’s positives, the issue drags down what could otherwise be a near-perfect crop insurance package.

Beginning Farmers See Expanded Incentives

The bill also significantly expands benefits for beginning farmers, extending premium subsidy incentives from five years to ten , while also increasing the subsidy percentages in the early years.

“Before, they got a 10% bump, but only for five years,” Neiffer says. “Now it’s 15% in years one and two, 13% in year three, 11% in year four, and 10% all the way through year ten.”

That change, he says, could alter how farm families bring the next generation into the operation.

“For a lot of young farmers, it may actually make more sense financially to farm on their own instead of farming with their parents,” Neiffer says. “If they’re part of the parents’ operation, they may or may not qualify for those premium subsidies. On their own, they do.”

From a purely financial standpoint, Neiffer says some families could generate more income overall by restructuring how younger operators enter the business.

Prevent Plant Remains a Lingering Concern

Despite the positives, not every provision landed well with producers. Prevent plant coverage remains a contentious issue, particularly in regions prone to excess moisture.

“Under the old rules, you could buy up an extra 10% of prevent plant coverage,” Neiffer adds. “That got cut to 5%, and now RMA is still talking about cutting or eliminating that extra 5% altogether.”

For producers in places like Arkansas and the Dakotas, that reduction matters.

“When you’ve got too much water, that extra coverage helps mitigate a really bad situation,” he says. “Losing it would hurt.”

Even so, Neiffer says the overall crop insurance package remains strong.

“That’s really the only thing dragging it down just a little bit,” he said.

ARC and PLC Changes Offer Ongoing Protection

Beyond insurance, Neiffer points to ARC and PLC changes as one of the most important income stabilizers in the bill, especially because they are designed to work over time, not just in a single marketing year.

“The increase in reference prices and effective reference prices isn’t a one-shot deal,” he says. “It happens this year, it happens next year, and it keeps happening as long as prices stay depressed.”

The bill also includes what Neiffer describes as an “automatic put” built into ARC and PLC, designed to cushion farmers during prolonged periods of weak prices.

“That’s going to help smooth out income over multiple years, and right now, that’s exactly what farmers need,” says Neiffer.

The Structural Shift Farmers May Not Be Ready For

The most overlooked part of the One Big Beautiful Bill, and potentially what may be the most consequential part of the legislation, is how it changes payment limits tied to farm business structure.

Under old rules, LLCs and S corporations were often limited to a single payment cap. The new law shifts that framework, allowing multiple payment limits based on the number of equal owners , depending on how the operation is structured.

That opens the door to significant restructuring. According to Neiffer:

General partnerships may move to LLCs for liability protection and expanded payment eligibility.
C corporations, which remain stuck with a single payment limit, may convert to S corporations.
Some farms are already making the switch.

“I’ve talked to several farmers already that either have switched or will be switching,” Neiffer says. “And it’s completely because of the One Big Beautiful Bill.”

Still, he urges caution. USDA guidance on how these new rules will be applied has not yet been released.

“Before I tell anyone to change their structure, we need that guidance,” Neiffer says. “Otherwise, you risk unintended consequences that wipe out the benefit.”

A Note of Caution on Taxes and Spending

Neiffer also warns producers not to let tax provisions drive equipment purchases or expansion decisions.

“There are a lot of good tax provisions in this bill,” he said. “But farmers tend to get hooked on them.”

He points specifically to bonus depreciation as an area of concern.

“They go out and buy something just because they can deduct it,” he says. “If they finance it with debt, they don’t always think about what happens the next year, or the year after that, or the year after that.”

The result, he says, can be financial strain that lasts long after the tax benefit fades.

Guidance Still Needed Before Big Decisions

Despite the potential advantages of restructuring, Neiffer urges farmers to have patience. USDA guidance on how the new payment limit rules will be applied has not yet been released.

“Before I’m telling anybody to change their structure, we really need that guidance,” he says. “I worry about the law of unintended consequences, where we think the rule is going to work one way, and then something else kicks in and negates the benefit.”

Farmers were expecting clarity by the end of 2025. That hasn’t happened yet.

“We’re already almost to March,” Neiffer says. “But we should have it any day now.”

When it arrives, Neiffer believes it could prompt some of the most significant farm business decisions producers have faced in years , driven not just by markets, but by policy.

Farmers Face Budget Squeeze And Balance Sheet Challenges—Echoes Of A Decade Ago

Tue, 30 Dec 2025 21:12:38 GMT

If heading into 2026 feels a little like déjà vu, you’re picking up the same vibes Chris Barron, president and CEO of Iowa-based Ag View Solutions, is experiencing. He believes the next couple of years will echo the last big downturn farmers weathered a decade ago.

“It’s kind of scary that 2025, ’26 and ’27 look essentially like a repeat of 2015, ’16 and ’17,” Barron says. “If you remember that time frame and made it through, buckle down because I think we’re going there again.”

He says one of the clearest signals farmers are about to experience a repeat of a decade ago is based on the 2026 cost-of-production data from Ag View Solutions’ clients, who are based in 23 U.S. states and three Canadian provinces:

Soybeans: About $11.87 per bushel based on a 65-bu. average yield
Corn: About $4.69 per bushel (before basis) on a 223-bu. average, with many growers needing at least $4.85.

Some growers raising non-GMO seed beans or getting premium contracts can still make soybeans compete. But for many farms, soybeans are the weak link in the current economic cycle.

Right now, Ag View Solutions clients are expected to plant roughly 62% of their acres to corn and 38% to soybeans for 2026 — essentially the same as 2025. Barron says he doesn’t expect many acres to shift away from this mix to more soybeans “unless something really changes.”

Given current price relationships and crop insurance guarantees, Ag View Solutions data shows about a $50-per-acre advantage to corn over soybeans for the year ahead. Even if the dollars trend lower, he says corn often pencils out better because of gross revenue and risk management tools.

More Cost Pressures Heading Into 2026

It’s no secret production costs are increasing heading into the next season. Some of the key factors include:

Overhead costs (what Barron calls ‘”return to management”) for family and employee expenses, including phones, fuel and business-paid personal expenses, are up nearly 5%. After the past year or two of what Barron describes as hard belt-tightening, he says deferred spending is “snapping back” at higher levels.

Land rents are holding mostly steady, supported by higher property taxes and outside investor demand.

Interest expense is climbing as operating lines grow.

Fertilizer costs are a mixed bag. On corn, fertilizer costs are up about 7%, even though Barron believes most farms are staying with removal-rate applications. On soybeans, he says fertility costs will be lower, mainly because growers are putting less fertilizer on their bean acres and leaning harder on corn nutrients.

Machinery and equipment costs are also inching higher for the year ahead.

This Is Not A Repeat Of The 1980s

Despite the “red” many farmers will see on their spreadsheets in the year ahead, Barron says the current period is not a repeat of the 1980s farm crisis, for two key reasons:

Farmer equity is strong. Debt-to-asset ratios remain healthy for many U.S. growers, even if cash is tight.
Many farmer exits are voluntary. Today, many farmers are choosing to retire or scale back in order to protect equity.

Barron offers a recent example: “I got a call the other day on 7,000 acres, a 45-year-old farmer saying, ‘I’m not going to do this anymore. I’ve got a $5 million equity position, and I’m not going to go for a couple more years and chew away another million dollars. I’m just going to be done.’”

Strategies for the Current Climate

To survive — and potentially thrive — in this “repeat” cycle, Barron suggests focusing on these four areas in the year ahead:

Do the high-dollar work. Barron says the “$500-an-hour” work is crunching numbers in the farm office. “Know your true costs, stress-test budgets, analyze each profit center. A few hours spent with good numbers can be worth far more than another round in the tractor,” he says.
Protect yield. He advises against cutting seed, chemistry or other inputs that protect or enhance yield “just to save a few cents per bushel.”
Right-size your operation. Barron says some of the most successful turnarounds he’s seen with operations lately have come when farmers “right-sizes” — they’re doing less, but doing it better — instead of trying to be everything to everyone.
Use collaborative models. Barron says he is seeing more farmers share equipment and labor with their neighbors to spread fixed costs without extra capital.

Opportunity Will Still Knock

During a Top Producer podcast, Barron told Host Paul Neiffer that the tight times ahead will create new land-rent opportunities for some farmers who want to expand. What commonly happens when margins get tight is some farmers pull back, and that’s when expansion possibilities open up for others.

“We’ve had numerous clients call us about opportunities to rent land and not like in small amounts. When times are tight and when things aren’t good, that’s when these opportunities present themselves,” he says.

Barron’s message for those farmers in expansion mode: have your numbers, working capital and lender relationships in order now, so if the right block of ground comes available, you can move quickly and confidently on it.

If you’re interested in the ROI spreadsheet Barron’s team uses to analyze market trends, email cbarron@agviewsolutions.com .

Hear the complete discussion between Barron and Flory on Farm Journal TV . Also, you can listen to the Top Producer podcast discussion between Barron and Neiffer at the link below:

Put On Your Scouting Hat: Check for Southern Rust in Corn and White Mold in Soybeans

Thu, 17 Jul 2025 19:37:08 GMT

Significant disease pressure is showing up in corn and soybeans earlier this summer than what Daren Mueller saw in 2024 crops. The Iowa State University plant pathologist says the early onset of disease pressure he has seen in Iowa – southern rust in corn, and sudden death syndrome (SDS) and white mold in soybeans – is concerning.

While he is closely tracking diseases in soybeans, he says there is “worse news” about the diseases showing up in corn.

“We actually are seeing a lot of southern rust in Iowa already. That is the one thing that I’m probably the most nervous about. I think we’ve found it in six or seven counties now,” he says.

Southern rust has been confirmed in at least 14 states. In Iowa, there’s a band of the disease that stretches east to west across the state, says Daren Mueller, Iowa State University pathologist.

(Crop Protection Network)

Along with Iowa, the Crop Protection Network (CPN) has confirmed southern rust in at least 13 other states – including Illinois, Kansas, Missouri, Nebraska – and a “probable” finding in Indiana.

Southern rust can be difficult to distinguish from common rust .

While both are fungal diseases that affect corn and share similar symptoms, they have distinct characteristics. Common rust tends to favor cooler, wetter conditions, while southern rust prefers warmer, humid weather.

Southern rust can also be more aggressive and potentially more yield-damaging than common rust, especially in later planted fields.

“Southern rust likes heat, and we don’t have good levels of resistance. And it can move very, very quickly through a cornfield,” Mueller told AgriTalk Host Chip Flory on Thursday. CPN reports yield losses up to 45% have been reported with severe infections.

“Last year was the first year in a long time where we really had to deal with southern rust, and we’re finding it about 10 days earlier than last year.”

The good news in Iowa, so far: the incidence (number of plants affected) and severity (area of leaf diseased) are low, adds Alison Robertson, Iowa State professor of plant pathology and microbiology in an online article she posted on Thursday.

Mueller is encouraging farmers to get out and scout for southern rust now, so they can take action to address the disease.

“In a year like this, if we catch a couple more rains like we’re supposed to in the next week or so, and this inoculum is out there, a timely fungicide application is going to be very beneficial,” he says.

The Crop Protection Network, a multi-state Extension resource, offers a new mapping tool called Crop Lookout farmers can reference to identify various diseases and their locations.

“If you just click on that, there’s a couple of hot links on that map for tar spot and southern rust. When we find new spots of disease, it’s updated in real time,” Mueller says.

Speaking of tar spot, Mueller says the disease can still take a huge toll on corn, but that farmers are learning how to deal more effectively with the disease.

“I think we’re getting more used to tar spot, and I think people aren’t panicking as much,” he says.

Soybean Diseases Showed Up Early This Season, Too

Mueller says he found SDS and white mold (also known as Sclerotinia stem rot) in soybeans in mid-July.

“That was about a month earlier than what we want,” says Mueller, who serves as the coordinator of the Iowa State integrated pest management program. “The fact that (SDS) was showing up a good month in advance, it has us a little nervous.”

SDS is most severe when soybeans are planted in cool, wet soils and has delayed emergence – conditions that were prevalent this past spring in parts of Iowa and further into the East and Southeast.

Severe SDS can result in yield losses greater than 50%, according to University of Minnesota Extension.

To address SDS, there’s no curative action farmers can take, but Mueller offers one action farmers can take to address the problem.

“You get your pad and paper out and you take notes in the field. Record what varieties you selected, what seed treatments you put down. That’s all valuable information for the next time you plant soybeans,” he says.

This is an important action because key soybean planting states, like Iowa, have had three or more years of fairly dry weather in the latter half of the summer, so crop advisers and farmers have little data on which of the newer varieties perform best in the face of SDS.

“Use it to your advantage to just collect the data,” Mueller advises.

For white mold, Mueller says farmers can still apply a fungicide in many cases and get enough of a response to warrant the cost of treatment.

“We’re still, early enough, you can get a fungicide out there if you feel like the risk is staying high. You could spray all the way up to R3 and still get some money back on your fungicide,” he says.

“You’ve got to get some penetration through the canopy [for white mold],” he adds. “All the activity is done in that lower canopy. Anything you can do to get the fungicide as deep into that canopy as you can, that’s what we want.”

Unlike SDS, white mold is fairly easy to pinpoint definitively in the field. At this point in the season, Mueller says to look for individual dead plants “here and there” in the field.

“Then just peel back the canopy, and look for the white powder, it’s called mycelia, the fungal growth. You know that’s a telltale sign that you have white mold,” he says.

Mueller’s complete conversation on AgriTalk is available here:

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Is This The Starting Point for A New Farm Bill?

Thu, 10 Jul 2025 00:51:39 GMT

From conversations in the legislative halls of Washington, D.C., to farmer fields across rural America, much of the talk in agricultural circles for months has revolved around H.R. 1, the One Big Beautiful Bill Act (OBBB),

Now, the massive piece of legislation, signed by President Trump on the Fourth of July, is being hailed by some as farm bill 1.0.

That positioning caught the attention of farmers participating in the AgriTalk Farmer Forum on Wednesday, who shared their perspective. Listen to it here:

Hazelton, N.D., farmer Mike Appert said he values the improvement farmers will potentially see from an estate tax standpoint, as well as the changes made to Section 179 IRS tax code for machinery.

“The Section 179 bonus depreciation is so important on these farming operations,” Appert said. “If you’re going to keep buying machinery and trading in your old equipment, you know, we just needed that.”

Paul Neiffer, the Farm CPA and a Top Producer columnist, noted that farmers can now take advantage of 100% bonus depreciation for assets placed in service after Jan. 19, 2025, and Section 179 has been bumped to $2.5 million for 2025.

Neiffer adds that he would rate the OBBB as a B+ for most farmers. He provides an outline of some of the key details farmers need to know in his most recent column, available here .

More Risk Management Resources

“You know, really and truly, I like what I see in this legislative package because, especially for future years, this is a significant amount of money being addressed. I really like the risk management portion,” said Garry Niemeyer, an Illinois farmer and past president of the National Corn Growers Association (NCGA).

Niemeyer is particularly pleased to see increased support for the USDA Market Access Program (MAP) and Foreign Market Development (FMD) program, which he and many other farmers believe are crucial for expanding exports and market opportunities.

“Since my early days participating in Illinois Corn Growers, back in 1995, we had been requesting more funds for these two programs. And finally, 30 years later, it happened,” Niemeyer said.

Specifically, MAP annual funding would go from the current $200 million approved to $400 million annually, while FMD would go from $34.5 million to $69 million annually.

Sen. John Boozman, said what he heard from farmers leading up to passage of the OBBB, was how important trade programs are to farmers’ economic survival and their hopes for future prosperity.

“We were able to essentially double the amount of money that we spend on trade programs,” said Boozman, (R-AR), chair of the Senate Ag Committee, on Wednesday.

Boozman also highlighted the urgent need for safety net provisions for farmers, due to rising economic stress across the nation.

“It’s just such a difficult situation,” noted Boozman, highlighting what’s happening in his home state alone. “I read an article today about bankruptcies in Arkansas, how they’re up 67% over last year, and last year was a bad year.”

Looking ahead, Boozman says he plans to visit farmers on both sides of the political aisle this summer and into the fall to gather input for developing a new farm bill.

“We’ll be talking about the farm bill and what else we need to get done,” he said. “It is difficult in farm country right now, and we need to support farmers in any way we can.”

Catch Boozman’s wide-ranging discussion with AgriTalk Host Chip Flory, available here.

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Don’t Get Scammed: Essential Advice for Safely Buying Used Farm Machinery

Fri, 27 Jun 2025 18:22:40 GMT

If you end up on the receiving end of a questionable looking email from a Nigerian prince, who just so happens to have this can’t-miss, once-in-a-lifetime opportunity for you — all you have to do is go buy this used baler, sell it for thousands of dollars more than you paid for it, and then send a few thousand dollars to your new friend in Africa and you get to pocket the rest — you’re probably going to laugh, delete that email and move on with your day.

It would be nice if all used equipment scams were that easy to spot in the wild, but scammers are becoming increasingly sophisticated in how they put their grifts in motion.

One recent, well-publicized case appears really concerning on its face, because the fox was loose in the hen house.

Dustin Echelbarger, 43, was arrested in June on 17 felony counts of fraud and forgery in Indiana. Echelbarger, who is presumed innocent until proven otherwise, is accused of using his position as a sales rep at the local John Deere dealership, Truland Equipment, to rope a handful of farmer customers across two states into a used farm machinery buying and selling scheme. You can brush up on the sordid details here. The case is set for jury trial this fall.

Zach Bosely, founder and CEO of TractorTuesday.com, and Aaron Fintel, used equipment specialist with 21st Century Equipment, spoke with us about issues they have encountered in the used market and how buyers can protect themselves.

Here are a few common issues farmers should be aware of:

Lien Complications: Many transactions involve blanket liens, and sometimes multiple liens, which can complicate or invalidate a deal if the equipment is not cleared for transfer. Some sellers might even be unaware of existing liens on machinery.
Bankruptcy Issues: When sellers file for bankruptcy it can lead to hiccups with the sale and ownership transfer. For example, if farm equipment was sold before a seller’s bankruptcy declaration but still carries a lien, the buyer could find themselves entangled in a legal dispute with creditors.
Long Processing Times: When a lien needs to be cleared, it often involves lengthy delays in the transaction. Buyers might even find themselves unable to secure financing.

Here are some insider tips to help you stay safe in the used equipment marketplace:

UCC Diligence: Buyers should conduct UCC (Uniform Commercial Code) searches to identify existing liens, just as many of the big online auction houses will do before listing a machine for auction. To search for Uniform Commercial Code (UCC) filings related to farm equipment, locate the state’s UCC database and search for filings using the previous owner’s name. In Ohio, for example, you can perform online UCC searches on a database maintained by the Secretary of State office.
Research the Seller: Before making a purchase, ensure you are dealing with reputable sellers or auction houses. Do your homework by conducting online research (social media, local court records, Google searches) before you sign anything binding.
Verify Equipment History: Use the equipment’s serial number to perform online searches, looking for issues or conflicts. This includes checking for outstanding liens or claims.
Engage Local Dealers: Consult local dealerships and sales representatives that you trust. Bring the serial number with you so the dealer can verify the history of the machine and pull any service records.
Obtain a Lien Waiver: If there is a lien, the previous owner should seek a lien waiver from the lender, confirming they are authorized to sell the equipment and plan to satisfy the lien once the transaction goes through. Proper, open communication between buyer, seller and lender is key here.
Still Red Flags? Walk Away: If there are confusing terms or conditions that just don’t feel right, trust your intuition and take some time to review everything. Walk away from the transaction if your concerns aren’t satisfied.
Legal Advice for Large Purchases: You can save yourself from headaches if you have a trusted local attorney look over any large equipment purchase deal before signing on the dotted line.

“It is really important you do your due diligence as a buyer, and it could be as simple as getting the serial number and using a search engine. Start there and see if there’s any smoke,” Bosely advises. “And even if there’s not, continue down the path — talk to your local dealer and ask them to help you out, help make sure you’re not buying a lemon, because you’re going to use them for service anyways.”

“My final point to hammer home on all of this would be, there are ways to check things out when you’re buying equipment, so utilize them. Take your time and do your do your due diligence,” Fintel adds. “And keep this in mind: there is no such thing as having too many things in writing, whether it’s an email, a text message or whatever. Those are all documents that can be shown in court.”

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Want to Boost Corn Yields? Balance Your Nitrogen Checkbook In-Season

Sun, 01 Jun 2025 11:00:00 GMT

As Aaron Gingerich walked across jade-green fields of newly emerged corn plants this spring, he had a hunch about the crop that stand evaluations would soon validate: his 2025 crop was off to a winning start.

Mindful of high input costs and low commodity prices, Gingerich pondered his next decision in late May – whether to keep the yield goals he had penciled out for the crop last winter or move them higher, based on what he was seeing in the field. He opted for the latter, bumping his overall yield goal by 12% and making a corresponding increase in his nitrogen program to support the decision.

The plan-then-verify approach to setting yield goals and supporting them with adequate nitrogen (N) in-season has been Gingerich’s go-to strategy in recent years to build incremental yield increases – an annual chess match with Mother Nature that he wins more times than not come harvest.

“The goal is to make sure the crop gets enough nitrogen from day one and through the entire season but to do it as efficiently and sustainably as possible in the process,” says Gingerich, who farms near Lovington, Ill. “It’s been a journey of learning for the past 15 years, and we’re still learning.”

Strategic N Decisions Based On Corn Yield Goals
Gingrich aims to achieve between a 0.85 and a 0.9 nitrogen use efficiency ratio per bushel of corn.

The past few years he has been able to achieve that with a nitrogen program that includes fall-applied DAP, followed in the spring with a banded application of 20% of his total nitrogen, made with a strip-till freshener just prior to planting on the strip. The modest amount of N applied then fuels a strong start in the crop at emergence (VE) and also helps address the carbon penalty, in which a large volume of old crop residue stimulates microorganism populations and causes soil nitrogen to become tied up and unavailable until later in the season.

Next up, Gingerich plans his sidedress applications by pulling nitrate samples to evaluate N availability and whether any leaching issues have occurred. Based on the test results, he makes sidedress applications with the remaining 75% to 80% of his N, paired with a nitrogen inhibitor.

Ken Ferrie calls the process of evaluating nitrate test results and then fine-tuning nitrogen applications at sidedress time and beyond balancing the nitrogen checkbook.

Implementing the practice is important to use for a variety of reasons and is always geared to helping farmers fuel their corn adequately to reach target yield goals at harvest, says Ferrie, Farm Journal Field Agronomist.

“There are things we can’t control, like the weather, but we can make agronomic decisions to mitigate risks and give the crop its best chance to perform up to its potential,” he says.

A common scenario is like the one Gingerich gladly faced this spring – when young corn stands are better than anticipated, and a boost to N rates is needed to reach higher yield goals.

“Say you had a 220-bu. yield goal originally and you decided to go for 260 bushels after corn stand evaluations, the nitrogen needs to be adjusted for that,” Ferrie says.

Another scenario Ferrie has seen play out this year is where farmers opted out of N use last fall, because of budget constraints, but then made no adjustments to their nitrogen program this spring.

“If a year ago we wrote the grower a fertilizer recommendation and it had 48 pounds of N in the dry application but he decided to not put it on due to budget, that 48 pounds has to come back into the picture now, and sometimes farmers forget,” he explains.

Weather conditions always play a role in nitrogen use. In areas where farmers have dealt with too much water this season, Ferrie says pulling nitrate samples for testing – which provides a snapshot in time – works like a nitrogen inventory checker.

“Here locally, I’m feeling good about our N program. For the guys that have been held up by rain and are fighting that, I know that statement may not be true at all, unfortunately,” he says.

Decisions Based On The 4Rs Improves Yield Outcomes, ROI
Ferrie says he sees growers increasingly tuned into using the 4Rs – right product, right rate, right place, right time.

“Farmers are learning to walk that tightrope better, while still making sure corn never has a bad day,” he says. “With our nitrogen recommendation, it pertains to yield goal, hybrid type, population, soil type, organic matter, and we can do what’s called an estimated nitrogen release test to kind of put that all together.”

The way a nitrogen program works is lighter soils need the most applied N. Heavier soils take less N per bushel of corn because the soil supplies that balance.

“When you get into your lighter timber soils, they take more applied N per bushel because the soil can’t supply it. So somebody who’s on a light timber soil and gets nervous and pulls his N rate back, he’s going to get hurt harder than somebody who’s in some heavy black soil that has a lot of built-in horsepower.”

With the 4Rs in mind, Gingerich has tweaked his application timing several times over the years. “We used to fall-apply anhydrous, and then we went to split applications, and we’ve kept adjusting. Now, because we do have heavy soils, I can apply those higher rates of N at sidedress, knowing it’ll be there when the crop needs it at tassel, ear fill and beyond,” he says.

Never Let Corn Have A Bad Day
The right-time aspect of the 4Rs requires understanding how much nitrogen (per day, week or month) corn plants take up at each stage of growth. “Fortunately, there’s a wealth of published information farmers can use for guidance,” Ferrie says. “Using computer models, we can input our planting date and weather data and the model can predict when plants will reach various growth stages and how much nitrogen must be taken aboard each day.”

To reach a specific yield goal, growers need to know about a hybrid’s season-long uptake and N timing needs along the way. For instance, a 200-bu. per acre corn crop will consume between 330 lb. to 350 lb. of nitrogen per acre, on average.

“On many soils, we only need to apply about 200 lb. of nitrogen, or less, because the soil provides the rest of the nitrogen,” Ferrie explains. “Our challenge is to make sure sufficient nitrogen is present when the plant needs it throughout the growing season. That requirement is small at the beginning and becomes very large later in the season. And it varies by hybrid.”

Right after emergence, corn takes up only a very small amount of nitrogen. By the time a plant reaches the V5 growth stage (five leaf collars showing), it might contain only 8 to 10 grams of dry matter in its leaves, stalks and roots, and that dry matter is only 1.5% to 2% nitrogen. So, at 36,000 plants per acre, 1 acre of corn takes up only about 1.2 lb. of nitrogen through the V5 stage.

Although N uptake is low from emergence to V5, it can’t be neglected. “Poor placement, one of the 4Rs, can restrict plants from finding even 1 lb. of nitrogen,” Ferrie says. “If you applied anhydrous ammonia 7" to 8" deep the previous fall, the N might still be there, but it will be out of reach for the plant.”

During the V5 through V8 growth stages, sufficient nitrogen is critical because that’s when many hybrids begin adjusting their potential ear size. “If a plant suffers serious nitrogen deficiency between the V5 and V8 growth stages, it might cut back from 18 rows of kernels to 14 or 16,” Ferrie says. “Once a plant scales back its ear girth, we can’t get it back.”

Nitrogen Requirements Through Corn Reproductive Stages
From V12 to R3, plants store nitrogen in their stalks. If at any time a plant can’t meet its nitrogen needs, it translocates nitrogen from its stalk to the grain.

At V12, growth becomes so rapid that, as farmers often say, you can hear the corn grow. “At this stage, the nitrogen uptake rate is steep, and the supply is critical,” Ferrie says. “This is the crucial period in which maximum ear length still is being negotiated inside the plant. It continues all the way to grain fill.

After V12, if we stress the plant very long, without enough nitrogen, it might start to abort kernels.

Kernel abortion can continue into the dough stage, and, once it happens, you can’t get those kernels back.

“Our studies have shown, by the time we see lighter green color in nitrogen-deficient strips, we usually have given up some yield. We can turn those plants green again by applying nitrogen—and we have to, to avoid losing much more yield—but we can’t make up the lost yield potential.

Generally, a plant accumulates about 70% of the total N it will need before silking and accumulates about 30% during reproductive growth, according to Purdue University Extension.

At about R3, the plant begins heavy translocation of nitrogen from the stalk to the grain, as plants work on filling kernel depth. Through R4 and R5, entering the dent stage, the plant continues to translocate nitrogen from the stalk into the grain. “If the stalk is empty of nitrogen at this time, it will affect grain fill,” Ferrie says.

Gingerich says, so far, his sidedress applications are keeping his corn adequately fueled through harvest, though he has contemplated applying N with a Y-drop application. “So far we haven’t seen an economic benefit to it, but we might in the future,” he says. “With these newer hybrids using more nutrients to stay greener and healthier longer, I can see how making an adjustment at some point could provide more ROI.”

Talk With Your Seed Supplier
Seed companies are starting to provide farmers with information about corn hybrid response patterns to nitrogen.

“Some can tell you whether the hybrid needs N up front, at the back end or broken up with split applications,” Ferrie says. “If this information is not available for your hybrids, you can incorporate nitrogen timing into a hybrid test plot and observe the response.”

Ferrie offers a final caution for farmers who believe corn needs to turn yellow before nitrogen deficiencies limit yield. That’s a theory that can cause significant yield losses.

“You can have a 20-bu. loss in yield from a lack of adequate nitrogen and not be able to see that from the pickup,” he says. “When we are dealing with nutrients that affect yield, nitrogen is the big dog. And when you run out, yields will drop. Missing P and K will change soil test values, but missing out on nitrogen reduces yields,” he adds.

Darrell Smith contributed information on nitrogen application timing to this article.

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