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Betsy's Blog

Sometimes pessimistic, mostly optimistic, always realistic.

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Wake me when 2013 is over #plant13

6/18/2013

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It was a rough spring.  We knew things would be a little late with the long winter, but I'm not sure anyone anticipated how late it would be.  And I don't think anyone anticipated how much ground would not be planted this year.  

We have a little bit of prevented planting on our farm.  Although we didn't get everything planted, I feel we are one of the lucky ones.  Farmers west of us, and into Eastern North Dakota were much wetter, and had to leave much more ground bare.  

The decision on when to stop planting is a personal one.  Federal crop insurance gives you "final planting dates".  If you plant after those dates, your crop insurance coverage declines, but if Mother Nature cooperates during the summer, you could still get a good crop.  The final planting date for soybeans in my area was June 10, but many farmers were planting on June 16, if the ground was ready.  Some of the fields are still very wet and muddy. 

What has me a little depressed is that we are starting the year collecting crop insurance, and whenever you collect crop insurance it means things are below average.   Crop insurance is making headlines as Congress debates the validity of the program.  If I believed everything I read, I'd be convinced that crop insurance is guaranteeing huge profits for wealthy farmers.  It's probably time for a reality check. 

Most farmers buy crop insurance at 65-70%.  You can purchase up to 85% coverage, but it's very expensive. So farmers are buying insurance to guarantee themselves 70% of their revenue.   Each farmer has a personal revenue number based on their historic yields, and the prices are set each year.   

If you get a paycheck, imagine cutting it 30% this year.  After dipping into your savings account and cutting some expenses, you could probably make it through the year.  That is what farmers do during bad years.  Crop insurance is not designed to bring farmers back to 100% revenue, but help cushion the blow of a bad crop, and give them a guarantee minimal income.  

In farm management, it is advised to have 30% of your gross revenue as cash.  For example, if a farm grosses $100,000, it should have $30,000 in cash.  One of the reasons for that recommendation is crop insurance.  Between your crop insurance guarantee, and your savings account, farmers should be able to make it through a bad year.  Now if it happens two years in a row, the farm will have some major problems. 

The fact that my farm will collect crop insurance in 2013 just isn't how I hoped to start the year.  Just imagine collecting a paycheck, and in January you got a 30% cut.  You still hope for a pay raise later in the year, and it's possible, but there's that nagging voice in the back of your mind that keeps remembering the first paycheck.  That's how I feel.  There's always hope, but things have not started off well in 2013.  
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We're almost ready, but Mother Nature is not #plant13

5/2/2013

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We got the backhoe and dug the remaining pieces of equipment out of snowbanks.  We're almost ready to go, but Mother Nature has different plans for us.  Patience, patience, patience is the name of the game. 

The biggest problem when it gets this late for planting is the rush.  It's like waiting until Christmas Eve to do your Christmas shopping.  You end up at the mall with all the other procrastinators, and come home crabby after failing to find the perfect present.  Instead, we push to get everything done, working long hours and minor breakdowns have major implications.  You would be well advised to avoid all farmers during the month of May.  We're either crabby because we're not in the field, or crabby because we are, and now we're short of sleep and patience. 

I visited with a banker this week, and he asked me if I thought farmers were prepared to deal with lower yields.  We've had a few good years, and it is easy to forget the years with mediocre yields.  Farmers do have crop insurance, but it covers you in a disaster.  Most farmers buy insurance that covers them if yields are below 65% to 75% of a normal yield.  Take away 25% to 35% of your income for the year, and think about how you would handle it.  It is not a disaster, but it certain causes some serious pinches. 

A headline from this morning's newspaper read "Farmers got too much aid in drought, report says."  Interesting.  Drought affected many farmers last summer, and they collected crop insurance, but that insurance helped provide them with 65% to 75% of their normal income.  You can purchase up to 85% crop insurance, but it is quite costly, and few farmers are willing to spend that much on insurance.  It should be noted that the "report" quoted in the article was written by a lobbying organization that is anti-farming.  I wouldn't exactly call that non-biased. 

It's too early for me to begin thinking about crop insurance.  We had to purchase it by March 15, so it's not like we can make changes.  And I do not plan to collect crop insurance this year.  I have confidence Mother Nature will get back on track, and give us spring weather, and soon! 

On a positive note, we do have 240 acres of winter wheat planted.  Oh sure it was planted last fall, but still.  We're 240 acres ahead of our neighbors.  Ha!
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The Ugly Duckling Farming Year #plant13

4/19/2013

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Yesterday I asked people to fill in the blink:  In winter wheat country it is said "Plant in the dust, your bins will bust."  In spring wheat country we could say "Plant in the snow...

1.  Your cheeks will glow
2.  into debt you'll go
3.  nothing will grow
4.  hope they'll grow
5.  your farm will go

Even if you're not in spring wheat country, wet weather is keeping most farmers out of the fields.  Moisture is good news to relieve the drought, but early planting is a critical yield factor for corn, spring wheat, and sugarbeets. 

At least we're all in this together.  Last fall we had a horrible sugarbeet harvest.  In a normal year, harvest begins October 1, and ideally lasts for 2 weeks, maybe 3.  Last year we attempted to harvest all the way up to Thanksgiving, and then we still left sugarbeets in the field.  We found out a sugarbeet harvester can't tell the difference between a sugarbeet, and a frozen mud chunk.  

But last fall it was a relatively small area that could not harvest.  It was a tough harvest for nearly all sugarbeet farmers in the Red River Valley, but it was an impossible harvest for just a few of us in the Northern RRV.  It was a very isolating experience.  

This spring we are all in the same boat, and there is a sense of safety in numbers.  Delayed plantings aren't just my problem, they are your problem too.  Minnesota still has widespread snow (some schools were canceled today, April 19!) and North Dakota is digging out from a record April snowfall.  Corn Belt farmers are waiting for sunshine after heavy, heavy rains and even flooding.  This week's crop progress report should be renamed the "Lack of Progress Report."

Many Northern Plains farmers are already changing their corn acres.  Most of us are not "corn farmers" but "farmers who grow corn" (we don't have dryers or a corn header, have limited storage, and not enough hopper bottom trailers) so don't blame us for being a little nervous.  We're still dipping our toe in the corn acres, nervous about how to handle the bushels, dry them, store them, and when to harvest.  The snow is still deep, the forecast is cold, and there is no imminent sign of when planting will begin.  It is easier to turn back to the safety of wheat, and maybe barley.

We took a little drive last night to see if there are any signs of life in the fields.  I did manage to find a group of swans 2 miles east of me.  I see geese and ducks all the time, but swans are unusual.  They were a little camera shy, but it made me think that maybe this Ugly Duckling of a spring may have a beautiful ending.  When I showed my 10 year old the picture, she said "Mom, where did you find a field with dirt?"  Come on you Ugly Duckling Planting season, surprise me and become a beautiful swan in a few months.  
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    Author

    This is what I get for majoring in agriculture economics at North Dakota State University.  A farm near the Canadian border, far from any delivery restaurants or shopping centers.  Sometimes in life you get nothing that you prayed for, and yet so much more than you asked.  Life doesn't have to be easy to be wonderful and blessed.

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