Saturday, April 7, 2012
Pella Tulips
SPONSORSHIP OPPORTUNITY
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If you'd like to advertise your business and be the exclusive sponsor of this column........ call Pete 319-327-0806
Friday, April 6, 2012
Thursday, April 5, 2012
Freeze Warning
Freeze warning notice for the area tonight from Friday April 6th at 1 am to Friday April 6th at 8am. Low of 31 possible. -- ECI COOP (@ECI_COOP)
Wednesday, April 4, 2012
Planting in Southern Iowa?
Contrary to what you have heard, SE IA does not have a lot of corn in the ground. Through 5 counties today and not one planter. #patience -- Nathan Wells (@wellsnw)
Twitter Feed- True 'dat!
I will not be impressed with technology until I can download food from the internet. -- Men's Humor (@MensHumor)
Our Reply: This is good for those of us in the business of producing food and fiber!
Does $500 Rent Pay?
HADDONFIELD, N.J. (DTN) --
By Marcia Taylor, she can be contacted at marcia.taylor@telventdtn.com
A new crop of Midwest cash rent auctions resulted in many $500-an-acre deals for 2012, leaving bystanders wondering how their neighbors can make top-dollar rent pay.
It was definitely easier for an above-average corn grower to shoulder extreme rent in 2011 than 2012, according to financial adviser Sam Bachman with AgriSolutions, a Brighton, Ill., financial consulting firm. That's especially true if USDA's projected 2012 average cash price plunges to $5 this season and input costs stay steady or higher, squeezing growers' margins.
Take a real 1,252-acre corn grower from northern Illinois who paid an average of $237 an acre for rent last year, boasted an average corn yield of 171 bushels and who averaged sales of $6.23 a bushel, based on AgriSolutions' field-level managerial accounting records. His production margin before rent ran $512 an acre in 2011. (Production margin is the profit margin before family living, taxes and interest on debt.)
In theory, that $512 was the maximum aggressive rent the grower could have afforded to pay on any extra acres he rented and still cover all his variable expenses in 2011, Bachman says. "At your most aggressive, you could let your existing fields cover your overhead (they would have had to anyway). Then let your new field cover variable costs including seed, chemical, fertilizer, crop insurance, equipment operating costs, storage and drying costs and other general crop expenses." You'd also have to determine if you had capacity for one more field (time, energy, management ability, and equipment).
"Other businesses do that all the time to penetrate a new market and get their foot in the door with a new customer," but it can be a risky strategy in farming, adds Bachman. "You have to hope that by the time the lease is up, you've built a relationship with the landowner that isn't solely based on dollars." Over time, you'd need rents to adjust closer to your average to cover all your costs.
One risk is that a sudden drop in commodity prices could derail the best intentions. All other things being equal, the real Illinois grower's "maximum" affordable rent on expansion acres would slide to $316 an acre if his average corn price is $5 in 2012 instead of $6.23, Bachman says. Unlike 2011, that more conservative corn price leaves renters little margin for error.
Bachman's bottom line: "With the price and yield risk, $500 rents are extremely aggressive and likely not sustainable even for those operators with excess capacity."
Crop Professionals on Early Planting- Day 5
News From The Coffee Shop asked several Crop Professionals across Northeast Iowa to shed some light on the unusually early Spring weather and discuss the risks and rewards associated with getting seed in the ground early.
Thanks for tuning in over the past week to read what the local pros are saying about early planting!
Call, text or email News From The Coffee Shop and let us know what topic you'd like covered next, 319-327-0806 or prburmeister@gmail.com
Call, text or email News From The Coffee Shop and let us know what topic you'd like covered next, 319-327-0806 or prburmeister@gmail.com
By Marcus Norman, Sales Supervisor/ Sales Agronomist
Innovative Ag Services- Independence, IA
Innovative Ag Services- Independence, IA
marcus.norman@ias.coop
319-939-0357
Hey Pete Sorry for the delay in getting info passed on… was out of the office some last week. Things are getting busy with much of the NH3 applications completed or underway and some dry fertilizer applications being made. The favorable weather has given us a good jump start and have had a chance to read some of the other local agronomy advisors comments.
I would agree that all signs point to an early planting season… however, the old saying of “plant early, plant often” could be a good mantra to live by this year. One concern (other than the crop insurance date) would be the tight supply of good high yielding genetics. If for some reason we would experience a catastrophic loss in a large geographic area, getting quality genetics to replant could be a valid concern. I have attached a Monsanto tech bulletin and a link from Dow regarding the topics.
Hope everyone has a Safe Spring Season!!
Monsanto Tech Bulletin (You may need to have a google account to view this one)
Dow Agri Sciences
319-939-0357
Hey Pete Sorry for the delay in getting info passed on… was out of the office some last week. Things are getting busy with much of the NH3 applications completed or underway and some dry fertilizer applications being made. The favorable weather has given us a good jump start and have had a chance to read some of the other local agronomy advisors comments.
I would agree that all signs point to an early planting season… however, the old saying of “plant early, plant often” could be a good mantra to live by this year. One concern (other than the crop insurance date) would be the tight supply of good high yielding genetics. If for some reason we would experience a catastrophic loss in a large geographic area, getting quality genetics to replant could be a valid concern. I have attached a Monsanto tech bulletin and a link from Dow regarding the topics.
Hope everyone has a Safe Spring Season!!
Monsanto Tech Bulletin (You may need to have a google account to view this one)
Dow Agri Sciences
Tuesday, April 3, 2012
From Harry Stimson- Buchanan County Realtor
Iowa land values. $10,500/acre is the highest I've seen filed in Buchanan County. -- Harry Stimson (@HarryStimson)
Twitter Feed- Buchanan County, IA
Following a motorcycle with a dog in a sidecar #awesomesauce -- Jon Blin (@jjbcattleco)
Crop Professionals on Early Planting- Day 4
News From The Coffee Shop asked several Crop Professionals across Northeast Iowa to shed some light on the unusually early Spring weather and discuss the risks and rewards associated with getting seed in the ground early.
Thanks for tuning in over the past week to read what the local pros are saying about early planting!
Call, text or email News From The Coffee Shop and let us know what topic you'd like covered next, 319-327-0806 or prburmeister@gmail.com
Call, text or email News From The Coffee Shop and let us know what topic you'd like covered next, 319-327-0806 or prburmeister@gmail.com
By Brett Vogel, Vogel Crop Services
Pioneer Seed Professional - Independence, IA
Pioneer Seed Professional - Independence, IA
brett.vogel@plantpioneer.com
319-240-8979
Frost Damage risk
Although the growing point on corn is below the soil surface until the five leaf collar stage (V5), new growth often has trouble emerging through frost-damaged tissue, resulting in buggy-whipped plants. Frost damage to plants that are 6 in. or shorter can reduce yield by 9-15%, and is likely related to the subsequent unevenness in the stand and completion among plants.
When a corn plant was one leaf stage behind neighboring plants early in the season, its yield was reduced by 20%. In comparison, when a corn plant was two leaf stages behind neighboring plants early in the season, its yield was reduced by 51%.
Crop Insurance Dates
Early planting before April 11 for corn and April 21 for soybeans will cost you prevented planting dollars.
Early April planting has been a topic of discussion. Is it a good or bad idea? The past few years early planting has been very popular due to warm soil conditions. According to University of Illinois agronomist Emerson Nafziger. "Once soil conditions are good for planting in April, there probably should be little hesitation in getting started." Soil temperature is not a consideration.
If conditions are favorable and the 7 – 10 day forecast is good there is no reason not to get started on planting. Your biggest factors are a May frost (latest frost date for Waterloo IA is May 1 50% and May 12 10% chance according to ISU Extentions Office) and pest control. Consider all factors and do what fits your operation. Be aware as the temperatures increase and we gain GDU’s corn growth becomes rapid. My biggest concern with the warm weather is growing to fast and catching that late May early June wind storm and getting green snap.
319-240-8979
Frost Damage risk
Although the growing point on corn is below the soil surface until the five leaf collar stage (V5), new growth often has trouble emerging through frost-damaged tissue, resulting in buggy-whipped plants. Frost damage to plants that are 6 in. or shorter can reduce yield by 9-15%, and is likely related to the subsequent unevenness in the stand and completion among plants.
When a corn plant was one leaf stage behind neighboring plants early in the season, its yield was reduced by 20%. In comparison, when a corn plant was two leaf stages behind neighboring plants early in the season, its yield was reduced by 51%.
Crop Insurance Dates
Early planting before April 11 for corn and April 21 for soybeans will cost you prevented planting dollars.
Early April planting has been a topic of discussion. Is it a good or bad idea? The past few years early planting has been very popular due to warm soil conditions. According to University of Illinois agronomist Emerson Nafziger. "Once soil conditions are good for planting in April, there probably should be little hesitation in getting started." Soil temperature is not a consideration.
If conditions are favorable and the 7 – 10 day forecast is good there is no reason not to get started on planting. Your biggest factors are a May frost (latest frost date for Waterloo IA is May 1 50% and May 12 10% chance according to ISU Extentions Office) and pest control. Consider all factors and do what fits your operation. Be aware as the temperatures increase and we gain GDU’s corn growth becomes rapid. My biggest concern with the warm weather is growing to fast and catching that late May early June wind storm and getting green snap.
Classified Ads
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Send your For Sale or Wanted Ads to prburmeister@gmail.com and have them posted to the Classified page.
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Monday, April 2, 2012
From Ben Donnelly- Benton County, IA
Three big rigs working dirt in the same field between Brandon & Mt. Auburn!
New Advertising Page & Contest
Be sure to check out the new contest on the Advertising tab at the top of the page!
NCAA CHAMPIONSHIP PREDICTION
I'm taking KU tonight, love Coach Cal but the #Big12 is built off toughness, it wins championships #NationalChamps -- Royce White (@Highway_30)
Ask the Tax Man
Question:
Our family formed two LLCs last year. The first LLC holds the farm land, and is owned by all family members (brothers and their spouses, nephews, and non-farming siblings). The second LLC is the active farming entity, and is owned by those who are actively involved in production. The operating LLC pays rent to the real estate LLC under a straight cash rent arrangement. Our attorney thinks that perhaps the wives do not have to pay self-employment Social Security tax on their share of the rent income from the real estate LLC, but that those who are active in the operation should pay Social Security tax on their share of the rent. Is that correct?
Answer:
First, congratulations on your structure. You've recognized that all in the family can share in the return on the land investment (the rent), but only those involved in production participate in that income. As to your question, your attorney might be confusing the passive loss restrictions in the income tax part of the code with the self-employment Social Security tax (SE tax) rules. As a starting point, real estate rentals are exempted in the tax code from SE tax. A landlord, including an entity, collecting cash rent and providing no other services to the tenant entity, even a related party, would meet that exemption from SE tax for all partners/members of the LLC. That matter was cleared up in the Eighth Circuit McNamara decision 12 years ago.
Your attorney is probably thinking of the "self-rental" regulations built into the passive loss restrictions. Passive losses are generally only deductible to the extent of passive income. To prevent taxpayers from too easily creating passive income on self-rentals, the regulations say that leasing land to a business in which you materially participate does not create passive rental income that can offset other passive losses. Those rules are generally unimportant to farm landlords, as most do not have other passive loss activities. But the SE tax exemption is important, and all of the LLC land entity owners will receive that exemption on their share of the rent.
Sunday, April 1, 2012
From Tyler Krug- Benton County, IA
#Spring has sprung at #KrugFarms, oats are up, calving, and planter preparation -- Tyler Krug (@TylerKrug)
Grinder/Mixer Sells for record high
Gehl 125 grinder/mixer sold for $13,000 on northeast Iowa farm retirement auction yesterday...new record auction... -- Greg Peterson (@MachineryPete)
Saturday, March 31, 2012
Tractor Sales
1959 JD 330S tractor sold for $22,500 on west-central IL consignment auction March 20th -- Greg Peterson (@MachineryPete)
Winning Lottery Ticket
BREAKING NEWS: BNO NEWS confirms winning ticket sold in Maryland -- Michael van Poppel (@mpoppel)
Crop Professionals on Early Planting- Day 3
News From The Coffee Shop asked several Crop Professionals across Northeast Iowa to shed some light on the unusually early Spring weather and discuss the risks and rewards associated with getting seed in the ground early.
Be sure to check back over the next week to read what the local pros are saying! New valuable insight will be released daily!
By Robert Hanson, Pioneer Seed Professional - Vinton, IA
robert.hanson@plantpioneer.com
319-560-9933
Understanding and managing early planting risks is a crucial step to achieving a productive stand. Corn is very sensitive to cold stress in the early season. The damage to stand establishment is greatest if the crop is planted into cold soil (typically below 50°F) or if planting is followed by snow, cold rain or an extended cold spell. Of all management practices that affect stand establishment and in turn, yield, the planting date decision often has the greatest impact.
Pioneer has conducted early-planted research trials over several years across a wide range of geographies, soil types and tillage systems. Results from these as well as public research trials indicate that emergence is maximized when soil temperatures are 50°F or above at planting and followed by a warming trend through emergence. For that reason, growers who plant early should pay close attention to soil temperature, moisture and the near-term forecast.
Another key to facilitate rapid and uniform emergence is to manage crop residue in the fall and/or in front of the planter units. Growers should also check behind the planter to ensure they are achieving uniform planting depth and good soil-to-seed contact, and delay planting until the soil is sufficiently dry to minimize compaction.
Additional Info: Historical Frost Date for spring:
90% likely by 4/14
50% likely by 4/27
The take home is this:
1) We have warm enough soil currently to plant into, but look at the forecast….?
2) There is still a strong likely-hood of killing frost.
3) Crop Insurance re-plant does not kick-in until 4/11
4) Planting date is major consideration in final yield. Why go too early???
Here's a helpful nugget that may useful in helpingyou make your planting dates decision...
Click Here- You will need to have a google account to view this link
319-560-9933
Understanding and managing early planting risks is a crucial step to achieving a productive stand. Corn is very sensitive to cold stress in the early season. The damage to stand establishment is greatest if the crop is planted into cold soil (typically below 50°F) or if planting is followed by snow, cold rain or an extended cold spell. Of all management practices that affect stand establishment and in turn, yield, the planting date decision often has the greatest impact.
Pioneer has conducted early-planted research trials over several years across a wide range of geographies, soil types and tillage systems. Results from these as well as public research trials indicate that emergence is maximized when soil temperatures are 50°F or above at planting and followed by a warming trend through emergence. For that reason, growers who plant early should pay close attention to soil temperature, moisture and the near-term forecast.
Another key to facilitate rapid and uniform emergence is to manage crop residue in the fall and/or in front of the planter units. Growers should also check behind the planter to ensure they are achieving uniform planting depth and good soil-to-seed contact, and delay planting until the soil is sufficiently dry to minimize compaction.
Additional Info: Historical Frost Date for spring:
90% likely by 4/14
50% likely by 4/27
The take home is this:
1) We have warm enough soil currently to plant into, but look at the forecast….?
2) There is still a strong likely-hood of killing frost.
3) Crop Insurance re-plant does not kick-in until 4/11
4) Planting date is major consideration in final yield. Why go too early???
Here's a helpful nugget that may useful in helpingyou make your planting dates decision...
Click Here- You will need to have a google account to view this link
Friday, March 30, 2012
Twitter Feed- Benton County, IA
A bad day in the country beats a good day in the city #truth -- Tyler Krug (@TylerKrug)
Morning Commodity Prices
Bob Utterback- Ag Web Radio
CORN MAY 627.5 +23.5
BEANS MAY 1392.75 +37.25
LCAT APR 122.6 +0.1
LHOG APR 83.675 +0.65
CORN MAY 627.5 +23.5
BEANS MAY 1392.75 +37.25
LCAT APR 122.6 +0.1
LHOG APR 83.675 +0.65
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Pro Farmer's Reaction to USDA Report
March 30, 2012
By: Pro Farmer, Pro Farmer Editor
** PROSPECTIVE PLANTINGS REPORT **
- CORN: 95.9 mil. acres; trade expected 94.7 mil. acres
-- compares to 91.921 mil. acres in 2011 - SOYBEANS: 73.9 mil. acres; traders expected 75.5 mil. acres
-- compares to 74.976 mil. acres in 2011 - ALL WHEAT: 55.9 mil. acres; traders expected 57.6 mil. acres
-- compares to 54.409 mil. acres in 2011 - SPRING WHEAT: 12.0 mil. acres; traders expected 13.4 mil. acres
-- compares to 12.394 mil. acres in 2011 - DURUM WHEAT: 2.2 mil. acres; traders expected 2.3 mil. acres
-- compares to 1.369 mil. acres in 2011
COTTON: 13.2 mil. acres; traders expected 12.74 mil. acres
-- compares to 14.732 mil. acres in 2011
That's a big number for 2012 corn planting intentions! It beat the average pre-report trade estimate by about 1.5 million acres and even topped the top end of the pre-report trade guess range.
-- compares to 14.732 mil. acres in 2011
That's a big number for 2012 corn planting intentions! It beat the average pre-report trade estimate by about 1.5 million acres and even topped the top end of the pre-report trade guess range.
That's a small number for 2012 soybean planting intentions! It fell short of the average pre-report trade estimate by about 1.5 million acres and is even below the bottom end of the pre-report guess range.
Click Here to Read Full Article
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