Podcast Summary
Midwest agriculture challenges: Market volatility and extreme weather conditions pose challenges for Midwest agriculture, with soybean exports offering some respite for businesses like Pence Drainage in Indiana.
The agriculture industry in the Midwest is facing challenges from both market volatility and extreme weather conditions. The markets took a dip this week in the soy complex, wheat, and corn sectors. Weather models indicate more rain and heat for the Midwest, which could impact corn yields that are already variable due to the weather. Additionally, there are flooding issues in the Upper Midwest, particularly in Iowa, Minnesota, and South Dakota. During the show, we spoke with Paul Pence from Pence Drainage in Lafayette, Indiana. Paul's company is a mid-sized business in agriculture with operations in Lafayette, Indiana. They have a segregated business with a drainage division that provides pattern tile work and custom drainage solutions, and a seed business where they represent various seed brands. Despite these challenges, Paul shared that they are also doing some soybean exports in central Indiana. The conversation also included discussions with Tommy Grisoffee and Brian from Advanced Trading about the commodities markets. Stay tuned for more updates on Backroads of Illinois.
Pentecost Group's export and agricultural services: The Pentecost Group's export business allows farmers to sell non-GMO soybeans for higher value, while their agricultural services enable efficient farming on challenging soils, benefiting both parties
The Pentecost Group, a business involved in soybean export and agricultural services, is making significant strides in both the domestic and international markets. They will be exporting approximately 750,000 bushels of soybeans to Asia, and they also help farmers in Indiana, known for its tight clay and prone-to-waterlogging soils, by implementing consistent pattern tile drainage systems. This approach enables farmers to plant, spray, harvest, and do necessary tillage work more efficiently. Additionally, The Pentecost Group's export business offers farmers an opportunity to grow non-GMO soybeans for food-grade purposes in South Korea and other markets, providing them with higher value opportunities for their farms. Furthermore, the drainage, seed, and export businesses complement each other, as growing high-value crops like non-GMO soybeans benefits significantly from efficient drainage systems.
Drainage systems in agriculture: Proper drainage systems are essential for agriculture to minimize delays, and Soil and Water Conservation Districts facilitate agricultural projects, including specialty projects like open ditch work, for effective water management
Having efficient drainage systems is crucial for timely field work in agriculture. While we cannot control the weather, we can ensure proper drainage to minimize delays. Indiana, for instance, has a drainage law that prohibits putting water onto someone else's land without permission and blocking water from others. Soil and Water Conservation Districts (SWCD) play a vital role in facilitating agricultural projects, particularly private enterprise ones. They help with specialty projects like open ditch work, which involves creating wider ditches with primary and secondary channels for slower water movement during heavy volumes. These conservation-focused projects contribute to effective water management and timely farming operations.
Drainage investment: Implementing an active management plan with system tiling in drainage can lead to immediate yield increases and long-term land value appreciation
Drainage is not only an effective solution for managing water on farmland but also a valuable investment. The speaker shared that implementing an active management plan, which includes system tiling, can lead to both immediate returns through yield increases and long-term value in the form of increased land value. The speaker also emphasized the importance of working closely with growers and landowners and expressed gratitude for the opportunity to contribute to the agricultural industry. The drainage work is carried out using large-scale plows, and the speaker expressed pride in their hands-on approach and commitment to serving their clients. Overall, the discussion highlighted the benefits of drainage as a smart investment for farmers and landowners.
Midwest farming challenges: Midwest farmers face challenges from tar spot in corn, white mold in beans, flooding, dryness, heat, and diseases. Prices for corn, soybeans, wheat, cattle, and hogs show volatility, while the Dow Jones finished down.
The summer of 2022 has presented various challenges for farmers in the Midwest and central Illinois, with corn and beans bringing a mixed bag of results. Corn faces issues such as tar spot, while beans deal with white mold. Additionally, farmers are concerned about yields due to flooding, dryness, and heat. The situation is particularly challenging in areas like Iowa and Minnesota, where eight inches of rain have been reported in Sioux Falls, South Dakota, and Blue Earth, Minnesota. Farmers dealing with these diseases are advised to consult their local dealers. The markets have shown some volatility, with corn futures up 3 to 8 cents, soybean futures down 8 to 10 cents, and wheat futures up 2 to 3 cents. Cattle futures also saw gains, with cattle futures up 7 to 4 cents, hog futures up 4 to 5 cents, and lean hogs up 4 to 5 cents. However, the Dow Jones finished down seven points. Overall, the agricultural community in America is seeking a safe and bountiful harvest, as well as a market boost.