Producer Page: Harvest hustle

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Created: Thursday, 18 August 2022 12:00
Written by Mark Warmka

Harvest Hustle--- Once again, the fall work is almost upon us. We can count our blessings for what looks like a pretty good crop at excellent prices. Best of luck and remember to work safely!

Safety Signs--- Speaking of safety….harvest is the most dangerous time of the year on the farm. Here is a list of a few items to consider:

  1. Replace/repair all missing PTO and auger shields.
  2. Shut off tractor/auger before leaving cab or inspecting equipment.
  3. Check and update flashers, lights and reflectors on vehicles and wagons.
  4. Have working fire extinguishers near grain dryers and combines.
  5. Don’t enter a bin unless power is locked out and another person is present.
  6. Don’t have kids take on jobs that they aren’t ready to handle.
  7. Also know where young kids are and teach them to stay away from danger.
  8. Take scheduled breaks. Fatigue clouds judgement. Get sleep, eat healthy.
  9. Look up….be aware of power lines when moving augers etc.
  10. Have a communication plan. Let people know where you are and check on others while working.

Estate Excuses--- Although none of us wants to consider this issue, it is imperative that you do. Higher land values may dramatically impact your estate valuation! You need to consider both the federal and state estate tax rules. Meet with a competent attorney to discuss a plan that fits your family’s needs. And be sure to discuss this with your children, siblings etc. I’m sure you can all think of sad stories about bitter family fights over money when Mom and Dad pass away. Communication early on can avoid unrealistic expectations and misunderstandings later on.

Fertilizer Fundamentals--- The high prices of fertilizer should lead to a careful consideration of applications this fall and next spring. Work closely with your agronomist and review the recommendations from University of Minnesota and/or Iowa State for our area. You may be able to reduce application of some elements without sacrificing yield in some areas if you have a comprehensive soil testing program that indicates high nutrient levels. You need to think about profit break-even and the likelihood of yield response from fertilizer applied at different test values.   You need to think about agronomy and economics.

Downturn Duties?--- We have had a couple of great years on the farm in our area. But we should expect that sooner or later the cycle will turn. What should you do to get ready for that while you are enjoying the current profits?

  1. Grow your working capital (current assets over current debts). Having cash enables you to absorb revenue declines and reduces some short-term borrowing costs. You may also find opportunities in a downturn to acquire assets or inputs at a value.
  2. Margin management---sharply focus on production costs and breakeven calculations. This can change quickly when commodity prices drop, so it is vital to know where you are at and what you can afford.
  3. Position your liabilities. Reduce debt with profits, and consider locking in interest costs where appropriate on longer term debt. Pay attention to your cash flow projection and make sure it can withstand a shock of higher interest cost and/or lower revenue.
  4. Be thoughtful about growth and capital purchases. You may be paying off that new purchase in a lower profit environment.

 

Take Care,

Mark

Producer Page: Old school, new info!

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Created: Friday, 22 July 2022 12:00
Written by Mark Warmka

 

Old School, New info!!--- It has been awhile since this newsletter was sent out....lots has happened in the interim................. Covid, closed lobby, PPP program, wild

swings in the economy etc.  But we are hoping to be being back to more normal times, and maybe this can be our contribution to that hope.

Government GobbledyGook--- The clock is ticking fast on the time left to certify

your planted acres at the FSA office. So run, don't walk to see the friendly staff there. You need to have your planting dates, field acreages and crops planted information in order to complete this task. July 15th deadline!

Insurance Insights---- But after certifying your acreage, you are not done! You need to stop in to see your crop insurance agent ASAP. The agent will need to complete an acreage report as well. Bring your FSA form 578 and maps with when you stop in at the insurance office.

Righteous Rain--- We were fortunate to receive some very welcome rain recently,

the timing was perfect and you might think you are done with this crop now but..

Wicked Weeds--- The rain may also germinate a new flush of weeds. This next couple of weeks will be critical for scouting your fields. You need to evaluate herbicide performance and check out the effectiveness of any residual products you applied earlier. If you need to make additional weed control passes, be sure to know precisely what weeds you are targeting and the carry-over potential of the applied products into next year's crop.

Fungicide Follies--- Soon it will be time for possible fungicide applications. Be sure to carefully evaluate why you are applying these products. What disease is prevalent and will respond to treatment? What stage of the crop is optimal for application? What is the cost? If you have the correct information, you can make an informed decision.

Tar Spot Talk--- This corn leaf disease has been spreading from Illinois and Iowa into SE Minnesota in recent years. It thrives in wet conditions, so over the next few weeks be on the lookout for small black irregular spots on corn leaves. So far it has not been a problem in our area, but it can create significant yield loss so be aware.

Marketing Matters--- We have enjoyed some excellent pricing opportunities over the past year. Do you have a plan in place for the crop in the field now? You need to review your costs of production and talk to your marketing advisor about how and when you should sell your production. Gather up data and make some time to consider this very important task. It needs to become a priority in your day to day management.

Safe and Sound--- Now that heat and humidity have returned. Please be very careful when you are sweeping out grain bins, baling hay, working livestock etc. Most of us are not as young as we once were, and we can get into trouble pretty fast by overdoing it on a hot day. Try not to work alone or at least let someone know where you are and what you are doing. Slow down! Take breaks and hydrate. Remember all your work is not going to get done in one day. (Especially if you aren't around to do it.)

 

Take Care,

Mark

What's Bugging You?

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Created: Monday, 02 August 2021 11:59
Written by Mark Warmka

Peoples Producer Page

 

What’s Bugging You?.........In-season crop scouting is an important task this time of the year. The hot, dry weather does lead into more risk for particular insect pressures.   This weather can favor spider-mites in soybeans. They have been found in some areas of Minnesota and Iowa. They are very, very small and tough to see. You can see leaf reaction in some cases, with lower leaf yellowing or loss. You can tap leaves over a white sheet of paper to detect mites. They will show up as tiny dark specs that can move on the paper. Scout from edge of the field toward the middle of the field to determine infestations and thresholds.

Grasshoppers can be a problem in a dry year as well. They are voracious feeders that leave obvious signs. Again they are more prevalent on field edges and grassy areas. Large populations can cause yield loss quickly.

Soybean Gall Midge is a relatively new pest that has been moving in from the west. Recently the U of MN extension service has identified this pest in nearby Watonwan County (St. James, Madelia area). So we will need to be on the lookout for this one in the near future.

Nematodes don’t necessarily build because of hot weather but nematode pressure can express more dramatically when plant roots are already stressed by lack of sub-soil moisture. You need to be aware of this sneaky yield robber and manage it. Yellow beans aren’t always Iron-Chlorosis, sometimes it is nematode injury. Soil test to determine populations. Also be aware of different nematode control traits in seed varieties, and the need to vary that method of control to fight back against pest resistance.

Soybean Aphids typically do not like the hot weather, so thus far in Minnesota we have not seen very much aphid pressure. But don’t go to sleep on these just yet. If we get more temperate weather, they can build populations very quickly. Pay attention to economic thresholds for treatment. Keep scouting!!

Its been a year with an increase in corn rootworm feeding. Be sure to evaluate standability of your corn stalks leading up to harvest. Work with an agronomist to identify the rootworm (western or northern) so you can make a plan for control in the future. You may want to grab the spade and dig up a few plants and examine the roots to see if any significant feeding has occurred. You need to pay attention to different Bt traits in your seed choices and/or insecticide choices to manage for resistance reduction. There are no rescue treatments for the current crop, rather this a management process for solving this problem next year.

Please enjoy the rest of the summer…….be safe and take care of yourself and your health……we want you around for many crop seasons to come.

 

Take care,

Mark

Producer Page

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Created: Thursday, 01 July 2021 12:00
Written by Mark Warmka

 

July 1, 2021

 

Thankfully, many of us received some much-needed rain recently (although it was very spotty with some folks not getting all that much). But this is only a down-payment on the required water for this crop. Hopefully, mother nature will continue to provide some just-in-time deliveries of precipitation.

Dry weather does present some agronomic considerations for you to ponder. The recent rain may have caused a weed flush and you should scout to see if the residual herbicide you applied is activating and controlling the emerging weeds. Or if you don’t have the reach-back type product applied, do you need to control the weeds? Also keep in mind that the soybeans are now beginning to flower and you should be discussing with your agronomist as to whether the products you are going to use could have a negative impact on yield.

Hot and dry weather can bring on insect pressure from spider mites and grasshoppers, so check on this if conditions merit. Our annual enemy, the soybean aphid, doesn’t like too much heat. While they are not a problem at this time, be sure to monitor your soybean fields through the season.

Fungicide applications have been increasingly common for many producers, but make sure you have a solid reason for this pass. The prevalence and outlook for disease is important information you should have before you spend the dollars. Talk to an agronomist you trust regarding this decision and remember sometimes that the response can be different among varieties. As always, timing is important with fungicides.

A final note……..you need to certify your acres with the FSA office. The clock is winding down on this task, so try to take care of it ASAP. Also remember to provide a copy of this information to your crop insurance agent, as they also have a reporting obligation on your planted acres.

 

Take Care,

Mark

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Check the Gauges 

 

Do you remember when you were just starting out driving tractor and doing field work? I’m sure your Dad was like mine and said, “don’t just watch the implement and the field, make sure that you are checking the tractor gauges too.” His point being that even when you think things are sailing along, you need to be aware of potential problems and catch them before they become big.

Well, right now you may be thinking (and you would be right) that things have been going along really well in agriculture over the past few months. Prices have rallied and we were blessed with a bountiful harvest in 2020. But even in the good times, don’t forget to check your ‘financial gauges.’ The cost of production is creeping up (especially fertilizer), and by this next year it could be rent and other inputs as well. If you are not tracking closely, your cost of production on corn could rise to nearly $5/bu. It isn’t too soon to plan ahead for tax liabilities on the 2021 return, and begin to think about how you can negotiate a fair land rental agreement. How’s your marketing plan for 2021 and 2022? You will need to know cost of production to determine when and how to sell your crop. Do you have a good soil test program started on your farm?   With the cost of nutrients, it is vital to only apply what you need, where you need it.

This is a good time to pay down on some shorter-term debts to solidify your working capital, and resist the temptation to 'buy' your way out of a tax liability. Invest in equipment when you need it and when it enhances your business, not when you think all the neighbors are upgrading. Use the good times to brace for the bad times. That way when good opportunities and bargains present themselves, you are ready to take advantage of the situation. A longer-term perspective in management can be very stabilizing in business operations.

Take Care,

Mark

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Spring 2021

 

2021 has provided us with one of the most exceptional springs in memory for suitable days for field work. Soils were in great shape and, unusually for us, there were no wet areas to dodge or worries about compaction at planting time!!

But…..we do need some rain, and the dryness does lead to some things for us to watch out for at this time.

Emergence: Many corn fields seem to be coming up in pretty good shape but there could be some spotty stands due to the dryness in the germination zone. A more likely problem will be uneven emergence that puts a corn seedling a few days behind its neighbor. It can be hard for that plant to ever really catch up to its full potential. If you have issues with this it would be good to double check your planter and make sure of your planting depth consistency for the future. Soybeans are more forgiving of populations and stand but also were planted at an even drier time. All in all, we are off to a good start with our crops but it is always good to evaluate and learn.

Herbicide: This could be a problem for pre-emerge applications. In a lot of cases, there has not been enough rainfall to fully activate some of these products. Walk your fields to see if there are any escapes or pressures. If you can catch these early, it is much easier to react and control. And face it, we could all probably use the exercise of a nice morning walk out on our farmland that we have so much pride in!! Get a schedule set up….like a school bus route….where you are checking areas on particular days and frequencies. A good habit that will help you spot crop disease and insects problems on a timely basis as well.

Bins: As long as you are setting schedules, put your grain bins on this also. A lot of bins out in the country are empty by now, but those that are not should be checked every week now with warmer weather. Lots of dollars in those tin cans this year!!

Be Safe,

Mark

About Mark Warmka

Mark has worked at Peoples State Bank since 2003, serving as lead agricultural lending officer and bank Senior Vice President. He is also a member of the Board of Directors. Mark has an extensive background in the financial services industry, possessing both investment and insurance licensing and is fully accredited as a crop insurance agent.

He and his wife, Kate, an elementary teacher in Blue Earth, live on and manage the home farm near Easton. Their daughter, Amanda, is a Physician Assistant at UHD Hospital and daughter, Sara, is teaching and coaching at Fairmont Public Schools. 

You can reach Mark by email or at 507-553-3155.

» More blog posts by Mark here

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