Monday August 17 Ag News

 NEBRASKA CROP PROGRESS AND CONDITION

For the week ending August 16, 2020, there were 6.4 days suitable for fieldwork, according to the USDA's National Agricultural Statistics Service. Topsoil moisture supplies rated 11% very short, 36% short, 51% adequate, and 2% surplus. Subsoil moisture supplies rated 12% very short, 30% short, 57% adequate, and 1% surplus.

Field Crops Report:
Corn condition rated 2% very poor, 6% poor, 19% fair, 51% good, and 22% excellent. Corn dough was 88%, well ahead of 55% last year, and ahead of 72% for the five-year average. Dented was 29%, ahead of 13% last year and 20% average.

Soybean condition rated 2% very poor, 5% poor, 17% fair, 53% good, and 23% excellent. Soybeans setting pods was 90%, ahead of 75% last year and 82% average. Dropping leaves was 2%, near 1% average.

Sorghum condition rated 1% very poor, 6% poor, 22% fair, 40% good, and 31% excellent. Sorghum headed was 95%, ahead of 80% last year and 88% average. Coloring was 15%, near 12% last year, but behind 22% average.

Dry edible bean condition rated 1% very poor, 8% poor, 22% fair, 50% good, and 19% excellent. Dry edible beans blooming was 93%, near 91% last year. Setting pods was 83%, ahead of 67% last year. Dropping leaves was 7%.

Pasture and Range Report:
Pasture and range conditions rated 7% very poor, 11% poor, 27% fair, 49% good, and 6% excellent.



Iowa Crop Progress & Condition Report
 
A derecho blew across Iowa but farmers had 5.7 days suitable for fieldwork during the week ending August 16, 2020, according to the USDA, National Agricultural Statistics Service. Dry conditions continued to be a concern for most of the State. High winds experienced on Monday caused considerable damage to on- and off-farm grain storage in their path as well as other structures. The level of crop damage reported varied widely depending on location and wind strength.

Topsoil moisture condition rated 20% very short, 36% short, 42% adequate and 2% surplus. The State’s topsoil moisture condition remained over half short to very short although it improved slightly. Subsoil moisture condition rated 17% very short, 36% short, 46% adequate and 1% surplus. The State’s subsoil moisture condition also remained over half short to very short.

Corn was 81% in the dough stage or beyond, almost 2 weeks ahead of the previous year and 5 days ahead of the 5-year average. Just over one-quarter of the corn crop is in or beyond dent stage, 11 days ahead of the previous year and 3 days ahead of average. Corn condition rated 59% good to excellent, a drop of 10 percentage points from the previous week and the lowest level this crop season.

Soybeans were 97% blooming or beyond, 3 days ahead of average. Soybeans setting pods were over 2 weeks ahead of last year and 1 week ahead of average at 90%. Soybean condition fell again this week, and the crop is now rated 62% good to excellent, the lowest level so far this season.

Only 3% of oats remain to be harvested for grain, 2 days ahead of both last year and the average.

Alfalfa hay second cutting was 97% complete, 4 days ahead of last year but 1 day behind the 5-year average. Just over half of the third cutting is complete, 10 days ahead of the previous year.

Pasture condition fell to just 33% good to excellent.



USDA:  Iowa, Nebraska Losses Part of 2 Percent Drop in Corn, Soybean Ratings

A 10-percentage-point decline in the Iowa corn crop's good-to-excellent condition rating following last Monday's derecho contributed to a 2-point drop in the national corn condition rating last week, USDA NASS said in its weekly Crop Progress report on Monday.  NASS estimated that 69% of the nation's corn crop was in good-to-excellent condition as of Sunday, Aug. 16, down 2 percentage points from 71%, though still tied for the fourth-highest rating in 10 years.   Despite the weather-related problems, the nation's corn crop overall continued to mature at a near-normal rate. Seventy-six percent of corn was in the dough stage as of Sunday, 7 percentage points ahead of the five-year average of 69%, while 23% of corn was dented, near the average of 24%.

Like corn, soybean conditions also fell last week. NASS estimated that 72% of the nation's soybean crop was in good-to-excellent condition as of Aug. 16, down 2 percentage points from 74% the previous week but still tied for the third-highest rating in at least 10 years.  Soybeans blooming was estimated at 96%, 2 percentage points ahead of the five-year average of 94%. The portion of the crop setting pods was estimated at 84%, 5 percentage points ahead of the five-year average of 79%.

Winter wheat harvest moved ahead another 3 percentage points last week to reach 93% complete as of Sunday. That remained 3 percentage points behind the five-year average of 96%.

Meanwhile, spring wheat harvest moved ahead 15 percentage points to reach 30% complete as of Sunday. That was ahead of 14% at the same time last year but 13 percentage points behind the five-year average of 43%.

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Nebraska Farm Bureau President to Retire
Steve Nelson, NeFB President

“Today I am announcing my plan to retire from service as president of the Nebraska Farm Bureau effective at the end of my term which will occur at the Nebraska Farm Bureau annual meeting in December.”

“Words don’t do justice in sharing my appreciation to all those who’ve supported my wife Elma and I over the last nine years in this role. I am extremely grateful to have had the opportunity to engage with so many great people in fulfilling a passion in working on behalf of our state’s farm and ranch families.”

“It’s never easy to leave something you love, but it’s time for my wife Elma and I to start a new chapter in our life together that provides more time for family, friends, and new adventures.”

“There is still plenty of work to do. I will continue to put forth my energy and efforts in the remaining months to do whatever I can to advance the mission of Nebraska Farm Bureau during that time.”

“It has been an honor to serve Farm Bureau members in this capacity and I’m forever grateful for the opportunity.”



Evaluating Alfalfa Stands Part II - Renovation Options
Ben Beckman - Extension Educator
Brad Schick - Extension Educator
Megan Taylor - Extension Educator

Renovation Options and Considerations
Thin stands that need renovated have a few options to consider. Typically, alfalfa’s autotoxicity makes planting into established stands impossible. However, in new stands that are less than 12 months old, there is a chance that reseeding alfalfa in areas that are extremely thin or void of alfalfa may see success. The risk of new seedlings not establishing is still present, but these conditions present the best chance at success, when planting alfalfa into existing alfalfa. It is important to note that dry conditions will hinder the ability of the newly seeded alfalfa to germinate.

High quality grasses like orchardgrass, meadow brome, or tall fescue can be utilized to fill out stands that are thin. For best establishment, use a no-till drill and seed following a late summer or early fall cutting. Depending on the density of the alfalfa stand, drill 4-8 lbs. of orchardgrass, 10-20 lbs. of meadow brome, or 5-10 lbs. of an endophyte free tall fescue. Fall establishment of these species needs to occur soon to ensure germination and growth are enough to keep seedlings alive through the winter. Many require at least six weeks of growth from the time of germination before a hard frost to have good winter survival. Done correctly though, these new plants can begin growth right away in the spring and boost yield while preserving hay quality.

A final option is to seed another legume. Red clover and birdsfoot trefoil in particular are both winter hardy species that can be used to fill out thin stands. While maintaining quality, these legume options are shorter term solutions and may not provide as much yield as grasses. 6-8 lbs. of birdsfoot trefoil or 6-10 lbs. of red clover will adequately fill in a thinning stand. One drawback to these alternative legumes is that hay produced in heavy trefoil and clover stands may require a longer drying period than straight alfalfa. However, both species offer higher quality over an extended maturation time frame, which can extend the cutting window of alfalfa.

In the above renovation recommendations conventional or RoundUp® Ready alfalfa have similar renovation plans, but in stands were RoundUp® Ready alfalfa is planted the addition of another forage species limits the utility of the genetics. The additional herbicide flexibility is gone and renovating stands of RoundUp® Ready alfalfa becomes comparable to conventional stands in terms of management difficulty. The choice between keeping the stand and introducing a new forage species may be more a decision on the longevity of the stand as well as flexibility for in season weed control. If you have stems under the recommended quantity (Evaluating Alfalfa Stands Part 1) and heavy weed pressure, adding an additional species may be a good option. Despite no longer having glyphosate options, renovated RoundUp® Ready alfalfa can still utilize several herbicide options for traditional alfalfa when it goes dormant and early in spring (Weed Control in Alfalfa Post Green Up).

To understand the impact of interseeding on alfalfa stands, we first need to have a solid understanding of what to expect from a pure stand of alfalfa. The quality of alfalfa is superior to most other forages due to high levels of energy and crude protein (CP). Optimizing harvest for an operation’s quality goals will result in more profitable operations and addresses the compromises of yield, quality, and stand longevity (Table 1). Following the same maturity stage, digestibility steadily decreases from 75% to below 60% when going from the bud stage to the full bloom stage, respectively.

For pure alfalfa stands, stand density does not affect CP, acid detergent fiber (ADF), or lignin content. Hay quality is affected, however, if the thinness of the stand allows for weed pressure. Undesirable grasses will decrease CP, digestibility, increase neutral detergent fiber (NDF), lower intake and reduce NDF digestibility. Therefore, renovation does not mean a loss in quality, so how does interseeding really affect quality and quantity? In general, perennial grasses offer more quantity compared to quality. On the flip side, the legumes will bring more quality and less quantity. This is another important consideration when it comes to weed control as well; typically legumes will not be as competitive as grasses.

Addition of Perennial Grasses
A study conducted by the University of Wisconsin showed that interseeding a perennial such as orchardgrass increased CP to 20.8% while having 32.9% ADF, 45.5% NDF, and a relative feed value (RFV) of 129. Alfalfa alone in the same study only had 19.5% CP and an RFV of 119. The same study showed yield from the alfalfa/orchardgrass plot produced almost 0.5 ton/ace more than alfalfa alone. While a quality perennial grass will impact hay quality on its own, it can also be beneficial to quality in thin stands by competing with weed species that could degrade the final product. Therefore, the addition of perennial grasses can maintain quality and quantity.

Addition of Legumes
The addition of legumes into an existing alfalfa stand can improve quality and maintain quality as it matures into bloom. However compared to the addition of grasses, the quantity will most likely be lower. It is also important to remember that birdsfoot trefoil and red clover are not nutritionally the same as alfalfa. For example, birdsfoot trefoil, has a higher TDN (Total Digestible Nutrients) from bud to 50% bloom compared to alfalfa. Red clover has higher digestibility compared to alfalfa and previous research suggests that it may be a more nutrient dense forage compared to alfalfa. These are both great additions when renovating an alfalfa stand, quality can be maintained and high quality cutting windows can be extended. The tradeoff is quantity.



Midwest Dairy Hosts Dairy Experience Forum follow-up webinar

Larry Levin provided insight into the post-COVID-19 dairy category at the Virtual Dairy Experience Forum on July 15. Larry’s presentation focused on how we got to where we are now, with a few topline findings pointing us towards what we can expect in the future.

Join Midwest Dairy and IRI at noon on August 19 to take a deeper dive into the key learnings from this new research over a 30-minute lunch and learn.  Register here:  www.midwestdairy.com.  

This free webinar will identify the shopper segment that has increased their spending on dairy at retail during the pandemic, when and how they’ve changed their dairy consumption, and how dairy retailers and processors can activate on this information to sustain dairy growth in a post-pandemic environment.



Reinke and CropX Partnership Helps Producers Grow More With Less

Reinke Manufacturing, a global leader in irrigation systems and technology, and CropX, a leading global agricultural analytics and soil sensing company, today announced a partnership to empower growers with the world’s finest irrigation scheduling tools.

By integrating the technologies and support of two industry leaders rooted in agriculture, growers in more than 40 countries will be able to access soil health information that will allow them to improve yields, efficiencies and profitability. The partnership unites two groups who believe the most effective equipment and technology is built by farmers, for farmers. And with more than 80 years of combined experience in research, design and manufacturing – Reinke and CropX will bring their easy-to-use product lines to help growers maximize performance.

“We are very excited to make this strategic investment and partner with CropX as we continue to advance precision irrigation technology,” says Chris Roth, president of Reinke. “Reinke is dedicated to irrigation innovation to help growers produce more while providing them with labor savings and environmental efficiencies. We’ve found that same level of commitment in CropX. We are proud to provide the world’s finest irrigation system and we believe this long-term relationship will strengthen both of our companies as we develop unmatched irrigation solutions to farms around the world.”

“We are extremely pleased to announce this agreement with Reinke Manufacturing,” says John Vikupitz, president of CropX. “Since its founding, CropX has maintained a commitment to be the global leader for on-farm irrigation and soil health tools. Today’s producers face mounting profitability, resource availability and sustainability challenges throughout the world. Our mission is to provide affordable, scalable, best-in-class technical solutions to meet these challenges. We are looking forward to partnering with the Reinke team to offer producers a technical platform to enable them to realize the tremendous untapped profitability to be achieved through proper management of soil health and irrigation prescriptions.”

Specializing in advanced technology that provides recommendations on a variety of factors, CropX uses maps, aerial imagery, weather, modeling, user input and their patented soil sensing technology to accurately predict outcomes. Earlier this year, CropX acquired CropMetrics, adding more than 500,000 acres of soil data to their farm management platform.

Through the partnership, growers using both systems will have access to CropX’s enhanced irrigation data-driven prescriptions that they can incorporate into their Reinke irrigation control system. Growers with pivots using Reinke’s enhanced, web-based application ReinCloud® will see additional benefits by being able to remotely operate their irrigation while they manage CropX data through the integrated platform.

Visit www.Reinke.com/CropX to learn about all the advantages you’ll have with Reinke and CropX.



Importance of Proper Forage Sampling
Tracey Erickson, SDSU Extension Dairy Field Specialist  

As livestock caretakers we are trying to optimize the performance of our livestock, whether it is producing milk or meat. Without knowing the quality of the feedstuff or forage we are feeding, it becomes difficult to balance a ration to ensure the animal is receiving the proper amounts of needed nutrients. Secondly, it can be costly. We may be wasting money if we are including unnecessary ingredients based upon poor sample results. Or we may not get the desired performance we are expecting from a ration once it has been deemed balanced. Lastly, a reliable sample allows us to accurately compare one feedstuff to another feedstuff for price comparisons.

So how do you go about obtaining an accurate sample from your forages? Samples should represent each field and each cutting, otherwise known as a sample lot. You will want to consider additional lot separations if there are differences in species, mixture, stage of maturity, rain damage, harvest loss, insect or disease damage and season.

When should you take a sample? This is determined by your desired outcome for the feedstuff. Are you going to retain ownership and feed it? Then you may want to wait till shortly before you plan to use the feedstuff to allow for any losses that may occur due to storage or handling. If you plan to sell it, you should sample fairly close to the time of sale to guarantee accurate representation of the product being sold. If you are putting it up as haylage or silage then you will want to wait till the product has gone through fermentation and shortly before the time of inclusion in a diet.

Sampling Baled Forages
Tools that you will need to adequately sample dry hay are the following: hay probe, clean bucket, plastic gallon sealed sample bag, and a permanent marker.

If you are testing dried hay samples. This can be done by coring the bales via a hay probe. Hay probes should be placed on the side and coring towards the center in round bales or on the butt ends when coring square bales. You need to core several random bales (approximately 20 cores from small square bales per lot or samples from 8 to 10 large round bales/lot, while still meeting the minimum of total cores). A minimum of 20 cores should be taken overall. Combine the core samples in a pail, mix them together and place the cores into gallon size plastic bag and seal. Properly label the sample with a permanent marker. Hay probes may be checked out at your local Extension Office.

If you are grinding forages into a pile you will want to pull your sample from the pile, taking handfuls from about 10 locations, collecting approximately 2 gallons of ground forage. Mix together in a clean container and then transferred to a gallon sealed bag, label and properly store until shipped for analysis.

Sampling Ensiled Forages
Once the ensiled forages have gone through fermentation and you are ready to use the feedstuffs in a ration it will be necessary to obtain an adequate sample.

Tools needed for sampling ensiled forages include a clean 5-gallon bucket, gallon sealed plastic bag and permanent marker.

Once the pile or silo has been adequately “opened up” you will proceed to collect approximately 2 gallons in a clean bucket. If you are sampling a silage pile you will grab handfuls from 10 locations within the pile, combine in a clean bucket, then transferring to a sealed plastic bag that is properly labelled. If you are testing an upright silo, it’s recommended to wait until about 2 to 3 feet of silage has been removed before obtaining a sample. If you sampling from a silage pile, collect your sample from the silage that has been removed from the face of the pile to be fed and NOT directly from the face of the pile. This is to maximize safety and minimize the risk of becoming entrapped in a silage avalanche. Safety protocols should be followed when obtaining samples from silage pile faces or from upright silos.  It is recommended to take samples from the morning and evening feedings. In between sampling periods keep the sample in a cold place such as a refrigerator until it is mixed together. Once the sample is combined and labeled with a permanent marker it should again be stored in a cold place, preferably frozen, until it can be mailed or delivered to a lab to prevent damage due to spoilage. Keep in mind, mailing on a Friday versus a Monday and the impact of the sample sitting in a warehouse over the weekend.

There are several labs which then can perform an analysis on the sample to determine the feed quality. View the National Forage Testing Association’s certified laboratories list. You can either perform a wet chemistry analysis or what is most commonly done is a NIRS (Near Infrared Reflectance Spectroscopy) analysis which is the quickest and cheapest method. Through this analysis you will obtain results for RFV (relative feed value), RFQ (relative feed quality), % dry matter, crude protein, ADF(acid detergent fiber, NDF (neutral detergent fiber) digestible NDF, lignin, crude fat, ash, Calcium, Phosphorus, Magnesium, Potassium, Total Digestible Nutrients, Net Energy for gain, lactation & maintenance, NDF digestibility, and NFC (non-fiber carbohydrate).

So why is this important? As we know, alfalfa, grass, and corn silage quality will vary greatly based on maturity at the time of harvest, conditions it was put up under, and storage methods. Thus, it has given you a way to value the product based upon its nutrient quality along with properly utilizing it in your rations.

Lastly, please remember when you are labeling the sample bag, you should include your personal contact information: name, address, and phone number along with the name of the sample lot, variety and what the sample is. It is especially important to identify in mixed samples what the mix contains, for example if it is alfalfa and grass hay or is it oatlage versus a perennial Italian rye grass? Knowing this information is important to increase the accuracy of a NIRS sample evaluation.



NEW Cooperative to build a port on the Missouri River

The Board of Directors and Management of Fort Dodge, Iowa-based NEW Cooperative, Inc., are pleased to announce the construction of new port on the Missouri River. The shipping and receiving port will be located 2.5 west of the Blencoe exit 105 on Interstate 29.

The Port project builds on NEW’s strength and geographic coverage, giving us the ability to create yet another new market for our members.  This 38-acre site will be accessible by a hard service road from Interstate 29, making this facility the largest and most northern port on the Missouri.  When completed, the port will have the capacity to load and unload up to six barges at a time.  The port will give us direct access to the export market and provide a fourth outlet for our customer’s grain.  In addition, fertilizers, aggregates, and other commodities will be shipped into the site to be stored and marketed through wholesale partners as well as to NEW’s customer base, further expanding our fertilizer storage capacities in our western region. With the increase in rail rates over the last several years, having this option to bring fertilizer into NEW, and export grain out, will make the Port of Blencoe a valuable asset for years to come.

“We hope this will bring the world to western Iowa,” stated, Dan Dix, NEW Cooperative General Manager.

The new port is expected to be operational in late fall of 2020.



Hettinga Crowned 67th Iowa Dairy Princess

Meghan Hettinga, a 20-year-old from Orange City, Iowa, was crowned the 67th Iowa Dairy Princess during a ceremony at the Courtyard by Marriott in Ankeny. Meghan, daughter of Jason and Mary Hettinga, will spend the year serving as a goodwill ambassador for Iowa’s dairy farmers. Throughout her year-long reign she will make public appearances to connect with consumers and help them understand the dedication of dairy farm families to their cows, their land and the milk they produce.

Meghan represents the Iowa Jersey Cattle Club and is a student at South Dakota State University where she is majoring in dairy production.

Amber Engelken, 18, of Earlville, Iowa, was named Alternate Iowa Dairy Princess. Amber, the daughter of Tom and Cherrie Engelken, will share duties with the princess. She represents the Iowa Holstein Association and will be a freshman at Iowa State University this fall where she will be studying dairy science.

Raegan Kime, 17, was named Miss Congeniality and was also recognized for her performance in the public speaking portion of the contest. She is the daughter of Dann and Annette Kime and represented the Iowa Guernsey Breeders Association.

Eight candidates competed for the Iowa Dairy Princess title, with the judging held August 5 and 6 in Ankeny. The winners were selected based on an application, answers to essay questions, interview skills and ability to advocate for dairy farmers.

The outgoing 2019-20 Iowa Dairy Princess is Julie Hammerand, daughter of Jerry and Lois Hammerand of Sherrill, and the Alternate Princess is Faith Palmer, daughter of John and Meghan Palmer of Waukon. Their reigns will be completed at the end of the month, and the new Princess and Alternate will begin their duties Sept. 1.   



Trump Approves Iowa Disaster Request

President Donald Trump approved Iowa's request for an expedited request for a disaster declaration, following last week's devastating derecho that inflicted damage to crops, grain storage and other agriculture infrastructure.

Trump made the remarks to reporters Monday morning in Washington as he was leaving for a campaign stop in Minnesota. On Sunday, Iowa Gov. Kim Reynolds requested a presidential major disaster declaration, requesting about $4 billion in federal assistance.

The president can declare a major disaster declaration for any natural event that the president believes has caused damage of such severity that it is beyond the combined capabilities of state and local governments to respond. The declaration opens the door to federal assistance programs for individuals and public infrastructure, including funds for both emergency and permanent work.

Reynolds requested funding under the Federal Emergency Management Agency's Individual Assistance Program for 27 counties including Audubon, Benton, Boone, Cass, Cedar, Clarke, Clinton, Dallas, Greene, Grundy, Guthrie, Hardin, Iowa, Jackson, Jasper, Johnson, Jones, Linn, Madison, Marshall, Muscatine, Polk, Poweshiek, Scott, Story, Tama and Washington.

Reynolds also requested FEMA funding through its public assistance program for the repair or replacement of public infrastructure and debris removal in the counties of Benton, Boone, Cedar, Clinton, Dallas, Jasper, Johnson, Jones, Linn, Marshall, Muscatine, Polk, Poweshiek, Scott, Story and Tama.

Sen. Chuck Grassley, R-Iowa, said he and fellow Sen. Joni Ernst had reached out to the White House over the weekend calling for the president to expedite federal disaster approval.



The U.S. Court of Appeals Rules in Favor of Farmobile in the Farmers Edge Lawsuit

Today, the 8th Circuit Court of Appeals unanimously ruled in favor of Farmobile — Agriculture’s Independent Data Company — in the appeal brought by Farmers Edge in the case styled, Farmers Edge Inc. v. Farmobile LLC, et al. (Case No. 18-2900). Farmers Edge had sued Farmobile, along with its founders Jason Tatge, Farmobile CEO, Heath Gerlock and Randy Nuss, in the U.S. District Court for the District of Nebraska for breach of explicit or implicit contract, breach of duty of loyalty, and misappropriated trade secrets.
 
The 8th Circuit found that the Nebraska Court did not err in denying Farmers Edge relief. Specifically, the Court determined that the facts did not support Farmers Edge’s remaining claims on appeal of trade secret theft, breach of contract and breach of duty of loyalty.
 
“It goes without saying that Heath, Randy and everyone who works at Farmobile is elated,” said Jason Tatge. "This has been a long, hard-fought battle, but we always knew we were in the right. The U.S. justice system worked, it just took us a bit longer than anticipated to reach this final result. We are thankful to our legal team for their persistence.”

This concludes Farmers Edge’s claims against Farmobile in the United States. As announced last week, Farmobile continues to enforce its patent in a lawsuit filed against Farmers Edge in the Federal Court of Canada. That case is set for trial beginning on April 19, 2021 in Vancouver, B.C.



Livestock Gross Margin Revisited
Matthew Diersen, Risk & Business Management Specialist, South Dakota State University

Recently the Risk Management Agency (RMA) announced changes to Livestock Gross Margin (LGM) insurance. The premium subsidy now ranges from 18 percent to 50 percent depending on the deductible level. In addition, the premium payment date was moved from the time of purchase until the end of the coverage period. LGM covers the finishing margin for cattle. The margin mirrors a "cattle crush", where one sells live cattle and buys corn and feeder cattle. As a product, LGM-Cattle is available in states throughout the central U.S., but it has not been widely used. After some initial interest in 2006, the only year with noticeable volume was 2017, with 13,012 head insured across 19 policies with premiums paid. In 2020 (the fiscal year that just ended on June 30) there were only 633 head covered in the U.S. by producers in Iowa, Nebraska and Wisconsin. The premium changes may make the product more attractive.
 
The expected and actual margins are reasonable indicators of what happens to feeding margins through time for unhedged or cash-only feedlots. The LGM margin is a little unrealistic, as it assumes a 750-pound yearling is fed 50 bushels of corn (as part of a ration) to an out-weight of 1250 pounds. Consider the LGM margin for yearlings that are six months from marketing as fed cattle. There is a formula that takes futures prices of either the contracts for those months or their surrounding months. In June, that expected margin was $148.40 per head for cattle to finish in December. That margin would have to cover other feed costs, yardage expenses and any profit. The five-year average expected margin is about $155 per head. The expected margin can get quite low, reaching $85.55 in April 2020 at the height of COVID-19 concerns. The actual margin is much more variable, averaging $160 over the same time span and ranging from $529.03 in April of 2017 to -$218.60 in April of 2020. It is difficult to overstate the risk involved feeding cattle.
 
LGM coverage essentially bundles put option coverage on live cattle with call option coverage on feeder cattle and corn. You are buying a weighted basket of three options. In June the coverage would have cost $71.41 per head for the $0 deductible. The cost of separately buying the equivalent at-the-money options would have totaled $101.75 per head. This ignores the time value that would likely remain in the call options and any underlying correlation among the options, which overstates the cost of using options outright. If a feedlot has all three risks (live cattle, feeder cattle and corn), then using LGM may be worth considering. However, the cost of LGM coverage is tied to volatility in the underlying contracts. The coverage premium (after the subsidy) in April 2020 was $103.02 per head (with the expected margin of $85.55). This may have been rational if one expected the actual margin would fall substantially. The cost spike was driven by live and feeder cattle volatility in 2020. Looking back, there was a cost spike in late 2008 driven by corn price volatility. While the subsidy on LGM is helpful, it does not make using LGM an automatic choice.



Sellers Are Searching For The Best Way to Sell Their Land During Covid-19
Randy Dickhut, Senior Vice President - Real Estate Operations, Farmers National Co.

In talking with landowners who are considering selling their land, the question of how to sell during the Covid-19 event comes up. They ask what sale method can work the best during the uncertainties surrounding Covid-19. Questions such as "Can you even hold an auction?" or "How does an online auction work for land?" and finally sellers are asking "What other options do I have besides an auction or listing?"
 
In many states and regions in the Midwest and plains, the traditional public outcry auction has been the preferred method for selling cropland and range land. Lower quality cropland and recreational land will more often be sold through a private treaty listing. Public auctions are still being held during this time albeit with social distancing procedures in place according to local and state directives. But if a seller is concerned about an auction being unsuccessful due to changing restrictions or is worried about how a regular listing will work selling their farm, the broker needs to offer all the land selling methods to meet the needs of the seller and the market.
 
Farmers National Company has a complete set of land sales methods to successfully sell land no matter what is happening in the local land market or with the uncertainties of Covid-19. These include not only public auctions held indoors or outside, but online timed auctions, simulcast online and public auctions that allow those in person and those online to participate at the same time, written bid sales of various formats, and private treaty listings. A good broker can help the seller employ the best sale method for their land as the agent will know the local market situation and Covid-19 created changes.
 
In farming, when one is repairing equipment, it is important to have the right tool for the job. You can make do with a crescent wrench or a pair of pliers to get by, but the correctly sized wrench will get the job done faster and better. Having the right sales tool or method is also critical for getting land sold at a good price during today's land market and Covid-19 uncertainties.