Illinois Soybean Association Podcasts

In this episode of ILSoyAdvisor.com Profitability Radio, we speak with Todd Doehring, director at Centrec Consulting and V.P. of the Farm Financial Standards Council (FFSC) about the Council’s efforts to help farmers better understand basic financial terms, statements, and using this information to help with management decision making.

The ISA Board understands that profitability is top of mind for many farmers, especially in this economic environment, and they devote checkoff funds to help farmers become better agronomic managers and better business managers.

This specific project was intended to explore the commonalities of farmers who continue to be more profitable than their peers, in both good times and more challenging times.

Using data from Farm Business Farm Management (FBFM), we looked at which on-farm practices lead to healthier bottom lines and what habits these resilient farmers have in common.

Kevin Nelson is a certified crop adviser and 4R Nutrient Management Specialist. He has a strong background in soil fertility and precision agriculture, and is passionate about providing farmers with the information and advice needed to be more profitable and grow better beans.

ISA Trade and Market Development

Eric Woodie, trade facilitator for the Illinois Soybean Association

Aired: February 2017

As trade facilitator for the Illinois Soybean Association, Eric Woodie spends his days working to generate beneficial partnerships with stakeholders across trade, transportation, infrastructure and other industries to create changes that will positively impact Illinois soybean growers. With more than a decade of experience in export trade, foreign markets, and inland logistics, Woodie’s skillset was a perfect match for ISA.

“I handle the practical stuff,” says Woodie. “Aligning the right people to get projects going that ensure we’re getting soybeans into critical markets and working hard to minimize or remove any challenges for Illinois farmers.”

Listen now to hear more about how Eric and the ISA team are working diligently on behalf of Illinois growers.

Key Takeaways:

1. Strengthening internal infrastructure. With our river, rail, and inland container systems, Illinois’ transportation infrastructure is better than most. But we’re always trying to make it better, and taking an aggressive approach to ensuring our soybeans are getting to the right markets through these obvious channels.

2. Pursuing beneficial partnerships. A big focus for us is partnerships – we work hard to get the right projects in front of the right people and negotiate beneficial partnerships to generate the improvements we need.

3. Exploring new markets. Because we export so many products, it’s an easy connection to see how many opportunities there are for Illinois beans globally. We look into every market possible for export potential, with a goal of increasing inclusion rates—especially in emerging and rapidly growing fields such as aquaculture.

Habits of Highly Successful Farmers

Gary Schnitkey, agriculture and consumer economics professor at the University of Illinois

Aired: January 2017

In both good times and bad there are commonalities among the farmers who tend to be most profitable. Last year a study sponsored by ISA and the Illinois Soybean checkoff program explored the on-farm practices that led to healthier bottom lines. Gary Schnitkey, agriculture and consumer economics professor at the University of Illinois, and his team of researchers found that certain habits of the most successful farmers set them apart.

“The most resilient farmers are able to mitigate risks, make informed, cross-functional decisions and operate with lower overall costs than their peers,” says Schnitkey. Listen now to hear more on these fascinating findings.

Key Takeaways:

1. Keep overhead costs low. The most successful farmers often have slightly higher yields, and almost always have lower overhead costs than their peers. These advantages enable them to innovate across all facets of their operations.

2. Seek expert advice. Even the best farmers can’t excel at everything—know your strengths and weaknesses and seek out the expert help you need to be successful.

3. Maximize your acreage. Increasing soybean acres will help manage costs. Schnitkey’s team deemed the traditional fifty-fifty corn-soy rotation most profitable, particularly while the current global demand outlook favors beans.

Ag Outlook 2020: Long-Term Bearish and Short-Term Bullish

Steve Johnson, farm management specialist with Iowa State University

Aired: December 2016

Overall, 2017 will be another down year despite more record yields, with USDA-ERS data predicting about a 15 percent drop in farm incomes, says Steve Johnson, farm management specialist with Iowa State University. “As we enter the fourth year of depressed prices, successful farmers are watching their margins, paying attention to cash flow and cutting costs.”

Listen now to hear Johnson’s specific recommendations for managing costs, marketing your crops and “overcoming your financial emotions” to make better decisions for your operation.

Key Takeaways:

1. Proactively manage your costs. Tighten up your record keeping and do the acre-by-acre calculations necessary to determine your production costs. Use those numbers to make strong management decisions.

2. Leverage yields to maximize profits. Your own numbers are more relevant than USDA averages, so they should determine your fixed costs and the prices you need. As a farmer you have more control than you think —use it to make effective, informed decisions.

3. Manage your financial emotions. The key is to develop a plan that includes time and price objectives and an understanding of your cash flow needs. Don’t let your emotions stop you from taking a profit.

Mike Boehlje, distinguished professor of agricultural economics at Purdue University

Aired: November/December 2016

With market pressure expected to continue for the next few years, Mike Boehlje, distinguished professor of agricultural economics at Purdue University, encourages growers to focus on what they can control—and remember that they have tackled tough economic times before. “It’s time to pull out the old playbook, dust it off and become better about minding the details and making precise management decisions as we did under previous economic pressures.”

Economists are optimistic about the long-term future, maintains Boehlje. Until then, growers need to focus on reducing per-bushel costs to maintain profits and working capital.

“Our analysis shows continued tight margins through much of this decade, unless something unexpected happens to soybean demand or big issues with supply,” says Boehlje. “Our recommendation is to focus is on controlling costs and being a best-in-class, low-cost producer.”

In this episode of ILSoyAdvisor Profitability Matters radio, Boehlje shares his top tips for maintaining solid financial footing during tough economic times.

Key Takeaways:

1. Do everything better. Establish a standard operating procedure for more precise management of each acre. Get smarter about your rates and timing on inputs.

2. Buy right. Comparison shop. Look at spec sheets, but also consider value-added services and support you’ll get in the event something goes wrong.

3. Maintain your working capital. Evaluate your loan terms against your repayment capacity. In many cases, 10-year loans on farmland and three- to five-year terms on equipment may be too short for today’s economic conditions.

Above all, work to position yourself for the challenges and the opportunities of this economy. “Don’t try to predict the future or the market, instead try to position yourself and stay resilient,” he suggests.

Illinois is the number one soybean-producing state in America, producing nearly 600 million bushels of beans on more than 10 million acres—and roughly 60 percent of those beans are destined for export markets.

In this episode of ILSoyAdvisor.com Profitability Radio, we speak with ISA Trade Teams Lead David Headley about ISA’s effort to build global demand for Illinois soybeans.

As the weather gets cooler and the beans start to brown, harvest creeps closer and closer.

In this latest podcast, CCA Soy Envoy Kevin Nelson talks about how farmers can know when their soybeans are physiologically mature and how moisture figures into harvest strategy.

Physiological maturity for soybeans is achieved at the R8 stage, when 95 percent of pods are a mature brown color and the leaves have dropped, says Nelson. A quick test for harvest readiness is the bite test, where a grower can bite the bean to test for hardness. However, for more accurate readings, a handful of beans should be moisture tested.

13 percent is the optimum moisture for soybeans and it’s ideal to have all beans harvested close to that number. However, this can be a challenge.

“Unlike corn, soybeans can change moisture fairly rapidly,” says Nelson. “They can dry down quickly and then pick moisture up again with humidity.”

The best strategy to achieve maximum profitability is to figure out what the docking rating is for moisture on beans and use that to plan your initial harvest moistures.

It’s okay to start harvest picking beans at a 14 – 14.5 percent moisture, because you don’t want to dip down to the 9 – 10 percent moisture range, Nelson says.

It will take some calculating, but with a little research and time, maximum soybean profitability can be achieved by spending some time strategizing harvest moisture.

There may be a new enemy for Illinois soybean farmers—and a stinky situation at that.

Join CCA Soy Envoy Stephanie Porter in this latest podcast to learn about the pest to watch for this August—the stink bug.

There are several different species of stink bugs, but the enemy for Illinois soybean farmers is the Brown Marmorated Stink Bug. Known as an agricultural pest, it commonly feeds on fruits and vegetables. However, it is quite the hitchhiker and will easily spread to other crops, such as soybeans.

In soybeans, the stink bug will use its piercing, sucking mouthparts to poke through the pod and damage the beans, causing them to shrivel or flatten. This yield-robbing pest can be controlled with most insecticides, but growers need to watch for it and actively scout fields for its appearance.

“Growers need to be looking now, in mid August,” says Porter. “We want to protect the pods against these critters.”

Porter recommends that if there are four or more stink bugs in one net sweep, the grower should contact an agronomist and ask for control recommendations.

To hear all of Porter’s advice and learn about the soybean stink bug effect, tune in to this month’s podcast.