Page 2 2024 Fall Farm Outlook Lincoln Daily News Oct 2024
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 3 Table of Contents 04. 2024 Growing season better than expected in some areas, worse than hoped for in others 06. Making the best better with 4-H 10. The Evolving Landscape of Beef Cattle Production in Illinois 14. Facing financial challenges on the farm 18. Financing a career in farming 22. Heartland Community College hosts special day for the Lincoln Community High School FFA 30. Labor Shortages in the Agriculture Industry 34. Five Years Later: The advancement in drone technology and uses on the farm 38. Ag Business Spotlight: Naughton Auction Services 44. Avian Flu What to know 40. Agriculture Improvement Act of 2018 - Expiration and Politics
Page 4 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 As usual, the three major factors in the farming arena are weather, prices, and yields. The weather provided a bit of a challenge earlier this year to get things done. April was very wet, with the Lincoln Weather Station recording over 6.5 inches for the month. After early May, things turned much drier allowing for field work and planting to be completed in a very short time frame. After a dry period for much of June, a damp period through early August provided very good weather for pollinating and filling corn and setting and filling pods for soybeans. A warm and dry period from late August through mid-October provided great conditions for crops to mature and then dry down. This has allowed for a good harvest pace on good crops. Prices for corn and soybeans have been a major area of concern. Fall cash prices are falling short of projections needed for breakeven according the Illinois Crop Budgets publication from Paulson, Schnitkey, Zwilling, and Zulauf. The 2024 projections are for $4.71 per bushel corn and $11.31 per bushel for soybeans. Many factors go into these figures including a supposed 240-bushel corn yield and 77 for soybeans, direct costs for corn of $488 and $244 for soybeans, also power and overhead costs, then the land cost of 359 per acre. All-together, the projections show estimated losses of $161 per acre for corn and $53 for soybeans. There are some ways to minimize those losses such as living off of depreciation for a short time, having exceptional luck on things such as repair costs, having relatively low interest costs, and other 2024 Growing season better than expected in some areas, worse than hoped for in others factors including lower land costs per acre on average. The other part of the equation is yield. This could also temporarily help reduce losses or even work toward turning a profit. Early yield reports were very good, so there will be producers who have crop yield averages above those used for the projections. The crop budgets are based on presumptions and averages, and every producer’s situation is different and will have individual results. Just remember great yields this year may put pressure on prices next year as well. Many topics in natural resources continue in the rural areas as well. The continued interest in growing wind and solar power in our area is probably the preeminent issue. Several smaller solar projects are in various planning and approval processes, as are a few approved wind energy projects set to begin work shortly. Carbon sequestration wells and pipelines seem to be on a moratorium statewide for now. Waters of the United States (WOTUS) also continues to be a very hot topic in Rural America. The interpretation of the rules regarding WOTUS will be very dependent on election results and the corresponding appointments of agency personnel. Technology continues to evolve in agriculture. Equipment, sampling, application, and analysis all get wrapped up in some packages available to producers and ag industry personnel. Examples would include variable Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 5 rate of application for fertilizers and pesticides, variable rate seeding, and pesticide application with drones. All of these technologies are being used currently, and are dependent on connectivity to GPS and cell signals in most cases. The continued improvement in rural high speed internet availability also improves the opportunities for using some of these cutting-edge technologies, and even updating equipment software on the farm. As fall harvest winds down, and field work continues, may everyone be safe in the fields and on the roads. Being aware and being patient will help everyone on the rural roads this fall. Enjoy the fall, and get ready for the next season! [John Fulton]
Page 6 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 What is the largest out-of-school youth program in the country, with six million members? That would be the 4-H program with 200,000 members just in Illinois. Most rural schools are familiar with this program and if they are not, they should be because every county in Illinois has a 4-H program. The 4-H motto is “To make the best better” and the slogan is “Learn by doing.” The origins of 4-H can be traced back to 1862 with the Morrill Act which established landgrant universities that conducted agricultural research. However, these schools had a tough time sharing their findings with the local farmers who were typically unwilling to adapt to changes or ideas of teaching children. However, in 1902 A.B. Graham started the first 4-H club in Clark County, Ohio and he called it ‘The Tomato Club’ because the focus was on one single topic, you guessed growing and harvesting tomatoes. By 1911 Jessie Field Shambaugh designed a four-leaf clover with an ‘H’ on each leaf, meaning ‘Head, Heart, Health and Hands’, and by 1910 the 4-H Club was born and became a national youth organization in 1924. Shortly after that in 1934 girls started taking notice 4-H Making the Best Better with and the ‘all-girls’ clubs focused on sewing projects like taking a feed sack and making a slip out of it and learning cooking and baking tips and tricks. In the 1930’s this grew into the 4-H coed club we see today. Today, most clubs focus on various subjects to entice a wider audience such as technology, engineering, science, healthy living, and citizenship. In addition to being in the United States, 4-H Clubs are in 83 countries with more than 110 program areas available. The 4-H program advertises that you get to be yourself and encourages students from all backgrounds, all interests, and geographics. It promotes learning about the things kids like to do with opportunities to meet and learn from mentors, and other kids, learn about careers they may be interested in, and explore new places. Bhayleigh Osborn has been in Hollanders 4-H Club for three years and has shown hogs at local County Fairs as well as the Illinois State Fair. Bhayleigh states that being involved in this club has allowed her to meet other kids her age and learn more about animals that she doesn’t directly raise, like goats and cows. By Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 7 being the chapter's secretary last year, she was able to learn leadership and organizational skills, take minutes and record attendance, set up demonstrations, help with building a veteran’s home, and other community service activities. However, she said without doubt that her confidence in herself and recognizing her abilities has increased, learning how to use her voice and the experience of trying new things is the highest on her list as to why she looks forward to being involved every year. But, 4-H isn’t only about showing animals, like most rural kids around Logan County are known for, it is more about having fun, exploring interests, building leadership skills, connecting and making new friendships, mentors, and future employers. While 4-H may have started in rural America, today 4-H Clubs are in all cities, suburbs, towns, and neighborhoods. Clubs are easy to start. All that is needed is an adult volunteer and five kids who agree to meet at least six times during the year. Here in Illinois, one in every 14 kids participates in a 4-H club, with the year beginning on September 1st. Whatever the age the student is on that date will determine how you join. The 5-7-year-olds are placed in the Cloverbud Club, which has activities that are age-appropriate and help them get excited and prepared for the older 4-H Clubs and activities. Ages 8-18 will be enrolled in the 4-H Club which banks on a variety of ages to teach, grow, and mentor others. Some 4-H Clubs focus on a single topic, while others allow youth to choose from dozens of projects to learn about. Continued --
Page 8 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 The mission of Illinois 4-H is to provide an environment in which all young people feel welcomed and have an equal opportunity to learn and grow. As a program of the University of Illinois at Urbana-Champaign, 4-H stays committed to providing a safe, non-discriminatory environment for all of its participants regardless of race, religion or sexual orientation. Do you know a child, grandchild, neighbor, niece, or nephew who you think would benefit from being involved in the 4-H Club program? With hundreds of local, county, state, and national programs across the country there are lots of options. Here are several links to get you started. For more information: •Logan County Show Book 2024 - https://extension.illinois.edu/sites/default/ files/2024-02/2024_logan_4h_showbook.pdf •The Center at Palos Park: (708) 361-3650 or visit www.thecenterpalos.org. •At the Western Illinois Youth Camp, contact Judy Taylor at (217) 782-6515. •National 4-H website: www.fourhcouncil.edu. •Illinois 4-H website: www.4-H.uiuc.edu. •Centennial 4-H website: www.4hcentennial.org. •University of Illinois Extension Center Web site: www.extension.uiuc.edu How you can get involved: If you're interested in becoming a part of 4-H, contact your local University of Illinois Extension Center or call (217) 333-0910. https://extension.illinois.edu/lms/careers https://extension.illinois.edu/staff/sherri-bishop https://4h.extension.illinois.edu/participate/ learn-more-about-joining https://4-hhistorypreservation.com/History/ Hist_Nat/ https://www.lib.niu.edu/2002/ic020310.html [JA Hodgdon-Ruppel]
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Page 10 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 The Evolving Landscape of Beef Cattle Production in Illinois Beef cattle producers in Logan County, as well as across Illinois and the United States, are navigating a complex and evolving landscape. Economic pressures and changing consumer preferences are profoundly reshaping the industry. Economic challenges are at the forefront, with producers facing fluctuating feed costs, market volatility, and broader economic uncertainties. Market dynamics, influenced by global trade policies and domestic demand, add another layer of complexity to the economic environment. Consumer preferences are also evolving, with a marked increase in demand for sustainably produced, high-quality beef. Current macroeconomic conditions force consumers to make the choice between not only different cuts of beef but also between beef and other proteins. As beef cattle producers in Logan County strive to balance these economic pressures and consumer demands, they demonstrate resilience and adaptability. This article delves into the current challenges they face and explores how they are innovating to meet the demands of a rapidly changing industry. Before exploring the challenges beef producers face, it is important to understand the current landscape of beef cattle production in Logan County. According to the 2022 Census of Agriculture, approximately 3,400 acres of all the agricultural land in Logan County were in pasture, roughly nine percent of the county's total agricultural land. Over $1.455 million worth of cattle and calves were sold from Logan County in 2022, which accounted for seven percent of all ag sales from the county. As of January 2024, the total number of cattle and calves in Logan County was 2,400, slightly increasing from the 2,300 head from the 2022 census. Logan County is also one of the largest alfalfa hay-producing counties in Illinois. In 2023, the average yield was 4.95 tons/acre, which was higher than the Illinois average of 3.80 tons/acre. Only Carroll, Christian, Clinton, Douglas, Jasper, Moultrie, and Warren counties had higher average yields than Logan County. While Logan County may not be the largest beef cattle-producing county in Illinois, it is still an essential part of the County's agricultural and overall economy. Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 11 When considering the challenges beef producers face, much of the focus is on the economy at both the farm and macroeconomic levels. While much of the discussion is on the financial health of grain operations across the country, livestock producers face unique economic challenges. The United States Department of Agriculture (USDA) estimates that overall cash receipts for cattle and calves in the U.S. are expected to increase by over $6 billion from 2023 due to higher market prices for beef. An article from farmdoc daily in February 2024 projected the market price for beef to be at some of the highest levels ever. This is primarily driven by a decrease in the total number of cattle and calves in the country. Another analysis from farmdoc daily placed the U.S. cattle inventory on July 1 at 94.2 million head, roughly one percent lower than the July 2023 inventory. The larger national herd means fewer cattle go to the slaughter, thus raising the cattle market price. Larger herds, however, come with higher costs for producers. The USDA estimated that increases in labor and feed costs and more money spent on livestock purchases represent the largest increases in overall farm expenses. An increase in herd size and production costs are not only economic pressures for beef producers. Macroeconomic conditions are also impacting consumer demand for beef. It is no secret that inflation and high prices have put pressure on consumers in recent years. Food is one of the indicators economists use to measure inflation and its impact on consumers. The USDA reported that overall food prices increased by almost ten percent from 2021, the fastest increase since 1979, and all food categories saw at least a five percent increase. Food prices slowed in 2023, only increasing by around six percent. Pork was the only food category that did not see an increase in 2023. So, what does this mean for beef producers? As the price of food increases and a consumer’s income remains steady, the consumer will make a choice about the type of food they purchase at the grocery store. Let’s say that a consumer usually purchases a ribeye steak when they go to the store. However, with food prices increasing, the price of that ribeye also increases. The consumer will look at other, lower-quality cuts of beef, such as ground beef, to try and save money. The consumer may also look at proteins other than beef. The consumer may look to chicken or pork as a cheaper alternative to beef. Now, let’s recall the laws of supply and demand - an increase in the price of a good leads to a decrease in the demand for that good. So, as consumer preferences shift away from beef, then the price of beef will continue to increase. Beef cattle producers in Logan County and across Illinois face diverse and unique challenges to their operations. Financial pressures on producers due to rising costs of
Page 12 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 feed and labor, combined with macroeconomic pressures on consumers and other issues, have placed producers in a volatile situation. However, light is at the end of the tunnel as the economy rebounds and consumers return to beef. Producers should continue to look for opportunities to keep connected to consumer demands and place their operations in a position to thrive for the future. As always, Illinois Extension is here to help your operations meet those challenges head-on and be viable for the future. [Reagan Tibbs, Logan County Extension] About Extension: University of Illinois Extension develops educational programs, extends knowledge, and builds partnerships to support people, communities, and their environments as part of the state's land-grant institution. Extension serves as the leading public outreach effort for University of Illinois Urbana-Champaign and the College of Agricultural, Consumer and Environmental Sciences in all 102 Illinois counties through a network of 27 multi-county units and over 700 staff statewide. Extension’s mission is responsive to eight strategic priorities—community, economy, environment, food and agriculture, health, partnerships, technology and discovery, and workforce excellence — that are served through six program areas — 4-H youth development, agriculture and agribusiness, community and economic development, family and consumer science, integrated health disparities, and natural resources, environment, and energy. Resources: Franken, J. (2024). How big is the U.S. cattle herd? farmdoc daily (14):138, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, July 25, 2024. Franken, J. (2024). Records are made to be broken! farmdoc daily (14):24, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, February 5, 2024. United States Department of Agriculture, Economic Research Service. (2024, September). 2024 Farm Sector Income Forecast. https://www.ers.usda.gov/topics/ farm-economy/farm-sector-income-finances/ farm-sector-income-forecast/. United States Department of Agriculture, Economic Research Service. (2024, August). Summary Findings – Food Price Outlook, 2024 and 2025. https://www.ers.usda.gov/ data-products/food-price-outlook/summaryfindings/. United States Department of Agriculture, National Agricultural Statistics Service. (n.d.) 2022 Census of Agriculture County Profile – Logan County, Illinois. https://www.nass.usda. gov/Publications/AgCensus/2022/Online_ Resources/County_Profiles/Illinois/cp17107. pdf. United States Department of Agriculture, National Agricultural Statistics Service, Heartland Regional Field Office. (2024, April). Illinois Alfalfa Hay County Estimates. https://www.nass.usda.gov/Statistics_ by_State/Illinois/Publications/County_ Estimates/2024/20240426-IL-Alfalfa-HayCounty-Estimates.pdf. United States Department of Agriculture, National Agricultural Statistics Service, Heartland Regional Field Office. (2024, May). Illinois Cattle County Estimates. https://www.nass.usda.gov/Statistics_ by_State/Illinois/Publications/County_ Estimates/2024/20240513-IL-Cattle-CountyEstimates.pdf.
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Page 14 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 As any farmer knows, there are many ups and downs when it comes to finances. Various factors such as input costs, lower income, and high interest rates can have a negative impact on a farm’s productivity. One input cost which has risen significantly in recent years is the cost of fertilizers. Lindsey Robinson, in a blog on the top challenges for modern agriculture in 2024 says, “These elevated costs are not only eroding profit margins but also hindering their ability to invest in crucial areas like advanced agricultural technology, soil health improvement practices, and essential crop diversification strategies.” Added to rising input costs is the likelihood of lower incomes. In an October 7 NPR report, Will Bauer said midwest farmers “will see decreased incomes this year, as the U.S. agriculture industry will likely have a down year compared to the last two.” The prediction Bauer has is that “Net farm income will fall 4.4% in 2024 — or $6.5 billion less than in 2023 — which is a much Facing financial challenges on the farm rosier projection than the U.S. Department of Agriculture initially predicted in February.” Other factors also impact income. Conterra Ag’s May 2024 article “At a Crossroads: American Farmers Under Stress” says, “Environmental challenges, such as extreme weather events, further compound the situation, posing risks to crop yields, livestock health, and infrastructure.” Furthermore, Conterra Ag notes, “These difficulties can disrupt infrastructure and supply chains, affecting the distribution of inputs such as feed, water, and veterinary services, as well as the transport of agricultural products to market.” Pressures such as “trade disputes and tariffs disrupt traditional markets and reduce demand for U.S. agricultural exports” which can also adversely affect farm incomes. Another adverse effect on incomes is higher interest rates. The higher interest rates mean farmers may put off purchasing more land. Tim Johnson, an area vice Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 15 president for Farmers National in eastern Nebraska and western Iowa says, “Farmers aren’t quite as motivated to go out and pay a premium for those farms.” Johnson also says, “Buying farmland is a tricky gamble for farmers, however. While a local dealer will have options for farm equipment, land isn’t always for sale.” With less income, some farmers have to make cutbacks by only making necessary purchases. For instance, with decreased income, farmers are not likely to buy new tractors or combines. A September 2024 report by Charlie Glass of the Glass Management Group on the decline of tractor sales reviewed sales over the last few years. Glass says, “The Under 40 HP category of tractors represented 62.2% of all tractors sold in 2023, which totaled 156,220 tractors, was a significant market for the U.S. tractor manufacturers. This class of tractors peaked in retail sales in April, 2021 with an average twelve month rolling total of 219,547 units and the average twelve month rolling total for August, 2024 was 139,289 units, or a 36.6% decline. There was also a decline in tractors with bigger horsepower. As Glass says, “[t]he 40 to 100 horsepower tractor category data showed U.S. sales peaked in November 2021 at a rolling 12 months average of 75,154 tractors. The August 2024 total for this category was 58,147 tractors, or a -22.6% decline in the number of units sold at retail since the peak on November 2021.” Continued --
Page 16 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 In the report Glass predicts that the trend of lower sales will continue. The Glass Management Group has been tracking data on tractor sales for 55 years and forecasting annual trends, so they seem to have a clear understanding of the way the trends are going. Even with lower income, there are helpful ways to deal with less money coming in. An October 8, 2024, FarmdocDaily article titled “Perspectives and Strategies for Dealing with Low Farm Incomes in 2024 and Beyond” provides various suggestions for managing with less income. This article suggests reviewing farming practices to see where expenses could be cut. Among the suggestions listed in the article are reducing phosphorous, potassium and fungicide applications. Another idea is to “[r]educe overhead. Overhead costs include hired labor, building repair and rent, building depreciation, insurance, misc., and interest costs. Low cost producers often have considerably lower overhead items than high-cost producers.” Instead of purchasing new machinery, the article says, “[p]riority should be given to those operations that have the potential to more directly increase revenue, such as drainage projects, on-farm storage, and farmland purchases.” With the likelihood of decreased income continuing, it is important to be prepared by developing strategies for dealing with challenges. Making wise spending decisions and deciding what to prioritize should help. [Angela Reiners] Resources: Bauer, Will. “Farmers are making less money this year, which could have larger economic consequences Harvest Public Media. 7 Oct. 2024. https://www.nprillinois.org/2024-10-07/ farm-income-down-ag-economy Conterra Ag. “At a Crossroads: American Farmers Under Stress.” Conterra Holdings LLC. 23 May 2024. https://www.conterraag. com/at-a-crossroads-american-farmers-understress/#respond Glass, Charlie. “Why the Decline in the Heart of Farm Tractor Sales in 2024.” 14 Sept. 2024. https://www.farm-equipment.com/ articles/22822-why-the-decline-in-the-heartof-farm-tractor-sales-in-2024 Robinson, Lindsey. “Top Challenges for Modern Agriculture in 2024. https://vlsci.com/ blog/top-issues-in-agriculture-2024/ Schnitkey, Gary et al. “Perspectives and Strategies for Dealing with Low Farm Incomes in 2024 and Beyond.” Department of Agricultural and Consumer Economics. 8 Oct. 2024. https://farmdocdaily.illinois. edu/2024/10/perspectives-and-strategies-fordealing-with-low-farm-incomes-in-2014-andbeyond.html
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Page 18 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 When you think of farming, the first thing that comes to mind is likely the products the farmers produce. This could be crops, such as corn or soybeans, animal products, such as milk or eggs, or meat, such as beef or pork. Something people may not immediately consider when thinking about a farm is the massive financial responsibility that running and operating a farm is. A farm is a business and farmers need to not only have a sense for agriculture, but a sense for finances as well. If you have ever considered the financial cost of running a farm, or if you are just interested in the topic, continue reading to learn more. How much money do you need to start a farm? This is a question that is much easier to ask than to answer, as it depends greatly on the size of farm you want to operate. According to Shawn Williamson, a farmer out of Columbia, Illinois, “add it all up, and we arrive at $5,157,000.” This is a number he came to after considering everything someone would need to run a farm on 500 acres of land, including the land. This included an agricultural degree, Financing a career in farming all of the farm equipment for a large-scale farm, and the buildings and structures a farmer would need. To read more about how Williamson came to his figure, read his article on Successful Farming here. For a small-scale farm, on the other hand, the number can be much more reasonable. The website QT business solutions claims that starting a small farm can cost somewhere between “$600 to $10,000.” However, according to them, this number can vary for many reasons as well. “Outlook, location, type of equipment, size of farm, type of labor required, invested time, farm products, and if you already own a property, or you are borrowing from relatives, or would rent, greatly determines the cost of starting a farm.” It is reasonable to think that someone may be able to get a hold of $600 to start a small farm, but $10,000 or even five million or more is not. How would someone go about getting that kind of money in the first place? The Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 19 first and easiest way to go about getting that money would be through a loan. There are many lending institutions, such as banks or credit unions, that cater to farmers specifically. Websites such as Rural 1st can help you find such a lending institution. When using the website to search Logan County’s area code, three locations for Farm Lending Illinois come up, one in Taylorville, one in Decatur, and the closest one being in Sherman. You can also secure a loan from the United States Department of Agriculture (USDA). The USDA website states that farmers can get a loan of up to $600,000, while farmers just starting out can get a loan of up to $300,150. These loans, like bank loans, do not have set interest rates, and the current interest rates are posted on the first of each month. The Illinois Department of Agriculture (IDA) also provides loans and grants to people who are or are looking to become farmers. To see more about the IDA’s options for grants and loans, see their website. How does a farmer keep his or her farm from going into bankruptcy? This is a very important question, especially if the farm is worth millions of dollars. BTC (Bethany Trust Company) Bank is an agricultural bank out of Missouri, their website has seven tips for farmers to become better at financial management for their farms. One of the most important things they suggest is to “be meticulous with your bookkeeping.” BTC states that when a farmer keeps track of their finances throughout the year, it will better prepare them to correct their farm’s finances when an issue arrives. “Meticulous bookkeeping,” says BTC’s article, “will help you catch increasing expenses or diminishing profits faster so that you can take corrective action.” Another suggestion BTC’s article makes is to have a farmer keep their personal and business finances separate. The way they suggest doing this is by opening a business checking account. They state that you will not “muddle your home and ranch finances.” An additional benefit to this is being able to give others access to your business account, such as employees. “Having a business checking account,” says the BTC article, “allows business partners or trusted employees to access the account in order to pay bills or collect payments.” The BTC article also states that debt management is very important, giving many ways in which a farmer can do this. They state that a farmer should take a look at their debts Continued --
Page 20 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 and be sure that you have the best financing options. They also state that assets that are going to be long-term, such as farmland, “are best afforded by taking out long-term debt that is repaid over the course of years.” Short-term debt, on the other hand, is best paid in cash. These may include things such as farm machinery or livestock. They also include links to give their readers access to more resources regarding livestock tending, farm operating loans, and farm equipment financing. While there are four more pieces of advice that this BTC article includes, there is not enough room to review them here. To see the other pieces of advice, see their article here. Financing a farm can be a very difficult venture, or it can be fairly easy. It all depends on the size of the farm you are looking to operate. The larger the farm, the more difficult the start up. So long as one is wise about it, they can not only get into the agricultural industry, but thrive once there. [Matt Boutcher] Reources: https://www.agriculture.com/how-much-doesit-take-to-become-a-farmer-7521627 https://qtbizsolutions.com/2021/04/12/howmuch-does-it-cost-to-start-a-farm/ https://www.rural1st.com/locations/illinois https://www.fsa.usda.gov/programs-andservices/farm-loan-programs/farm-ownershiploans/index https://www.fsa.usda.gov/programs-andservices/farm-loan-programs/farm-ownershiploans/index https://btcbank.bank/about/7tips-for-better-farm-financialmanagement#:~:text=Keeping%20 business%20finances%20separate%20 from,your%20home%20and%20ranch%20 finances
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Page 22 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 On Friday, October 11th, the Lincoln FFA traveled to Heartland Community College in Normal for a special recognition day that included ribbon cuts and a tour of the HCC’s new Agriculture Education Center. The college has put a large amount of study and effort into creating an ag learning environment that will benefit students interested in ag careers. Education can stop at HCC or prepare students for transfer to higher education institutes. Heartland Community College hosts special day for the Lincoln Community High School FFA Recognizes FFA restored tractor and provides tour of the new HCC Ag Complex The tour throughout the complex was guided by Vice President of Development and Community Engagement Chris Downing. During the tour he told the students that last year there were 110 ag jobs that were unfulfilled in the area because there was a lack of qualified individuals to fill the positions. He said they were well paid jobs, many with starting salaries above $50,000 per year. He said the education received at HCC would have met those qualifications. Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 23 Downing said that in designing the complex, HCC had consulted with industry experts to get a bigger picture of what was needed in the classroom environment in order for students to benefit the most. He noted as an example the shop area where students can get hands on experience with farm equipment mechanics. The shop has overhead doors that can be opened, and equipment driven into the shop area. Downing said that experts had been given a tour of the shop area and one noted that the door was not sufficient for modern tractors. Downing said that had been taken into consideration in the design and that any tractor on the market today would fit through the door. However, the expert said that within the next three years there will be tractors that are considerably larger than what is available today. Therefore, perhaps in as little as 12 months the doors in the plan were not going to work. Downing said that bit of expertise had made a big difference in the design of the shop and plans were modified so that now, HCC feels confident that the shop area will accommodate farm equipment size changes until at least 2028. Downing said that while some aspects of the complex appeared to be there for dramatic effect, which was cool, the real asset was access to the tools needed to further education. As an example, he pushed the button to a secondary overhead door, that opened into a classroom setting with large screen monitors on the walls and workstation tables set at each monitor. Downing said that the room was designed to accommodate viewing of diagrams and diagnostic information for vital areas of a piece of equipment but was also used for other interactive education. He noted that within the complex, most of the learning areas are not traditional desks all in a row forward facing, but are rather designed for workgroups and hands-on education. Continued --
Page 24 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Exiting the far door, the next stop was the tech lab. Here again, stations are set up to accommodate two person teams and is an area where students will learn about soil analysis and plant analysis. While in this room, Downing spoke about a career that can be obtained through the knowledge gained in the tech lab, that of a certified crop adviser. Learning in this room can include soil analysis and plant analysis, both of which are important components of the crop adviser career. Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 25 Next, the tour moved into the greenhouses that are attached to the building on the south side. Downing said first of all, that the greenhouses were facing south, but also facing Raab Road, the main thoroughfare moving past Heartland College. He said that putting the greenhouses in this location was intentional as HCC wanted the greenhouse to signify to the community what this building was all about. He said that the glass structures could have been placed elsewhere and been as effective in the learning experience, but putting them on the road side of the building was a clear statement to the public. The last area the students visited was a traditional face-forward lecture style classroom. Downing said that this room would be used for a variety of classes including some that were not necessarily ag Continued --
Page 26 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 focused, but with a hitch. He said for example the room will be used for essay and speechoriented classes for any focus of study at the college, but the hitch would be that in this room, everything written or spoken would have to have an agricultural theme. Downing also pointed out that in this room like others, there are projection screens with overhead projectors and excellent sound systems. When the tour was over, the class headed outside to conduct ribbon cuts for a special yard ornament at the complex. In 2021 the Lincoln Community High School FFA received a donation of a 1927 McCormick-Deering 10-20 tractor from Dave Bishop of Prairie Earth Farms in Atlanta. Bishop gave the group the tractor in a very ill state, worn down, rusted, and in general looking like it might be time for the scrap yard. Students spent the next three class years working on the tractor and restoring it to its original beauty. The work began under the instruction of FFA advisor Allie Bode’ and was completed under the direction of LCHS Ag teacher and FFA adviser Molly Schempp. On Friday, Bishop, who is also an ag instructor at Heartland spoke about the history of the tractor. He said that the 1927 was among the first tractors to take the American farmer out of the horse age and into the age of mechanical power. He said it was a steep learning curve and not without some disastrous challenges. Bishop said that some of the specific instructions, such as “slowly let up on the clutch,” did not sink in well with farmers. Therefore they would set the clutch, put the tractor in gear, pop the clutch and kill the engine. It was a frustrating experience for the operator but also a dangerous one, because, many times, in frustration, the farmer would jump off the tractor and go to the front of the tractor to the hand crank that would re-start the Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 27 engine without taking the tractor out of gear. Thus when they turned over the engine with the crank, the tractor would move, sometimes running over the farmer. Bishop concluded saying that it was fitting that the old tractor stood facing the new complex, that it was a statement of “here’s where we came from, and here is where we are going.” He said that 1927 was a year of change, but there are even more changes on the horizon and that the agriculture industry will need the best and the brightest minds to keep it moving in the right direction. He encouraged each student present to consider furthering their education in agriculture. When Bishop was finished there were a series of ribbon cuts starting with the FFA members who had actually worked on the tractor. About half of the youth present lined up around the tractor with Matthew Sebastian doing the honors of snipping the ribbon. Continued --
Page 28 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Next us was a ribbon cut with LCHS staff and Bishop. Those participating in that cut were LCSH District 404 Superintendent Dwight Stricklin, Business Teacher Joan Dahmm, Bishop, Schempp, and LCHS Principal David Helm. With Schempp being the one to cut the ribbon. There was also a photo taken of Schempp and her parents Darin and Cindy. Darin Schempp has done a great deal of work in the area of restoration and custom paint, and helped guide the students through the final process of restoring the tractor. The final photo included all the students involved in the 2024-25 school year FFA program at LCHS. Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 29 When the photos were completed, Schempp provided three students for LDN to speak with one on one. Matthew Sebastian, Reece Entwistle, and Oliver White all spent a great deal of time with the tractor, working on it during class time, and spending many a lunch hour in the shop cleaning rust off of parts and getting it tractor ready to put back together. All three boys are sophomores this year and had the privilege along with several other class members of being the ones who got to see the final product all put back together and looking as good as the day it was first manufactured. Sebastian said that when they came in last year, the tractor was disassembled and laying in parts and pieces. Every piece was rusted and dirty and everything had to be thoroughly cleaned up before it was out back together and went to paint. White said to him that was the best part of the work. He very much enjoyed working to clean the various pieces and gained satisfaction from having them at their very best before reassembly. Entwistle said his greatest take away from the project had been the relationships he built with others who worked on the tractor. He said for example, as a freshman, he had no classes with White and met him in FFA. The two have become friends and that would not have happened otherwise. He added that working on the tractor gave him new perspectives and insights on life in general. Both White and Entwistle come from farm families and have an interest in going forward in agriculture. Entwistle said his plan is to become a veterinarian. White will also stay in the farming industry. Sebastian said he does not come from a farm family, but his dad owns a repair shop in Manito, so he may be interested in incorporating agriculture and mechanics into his future. Schempp also spoke briefly to LDN saying that while she was the teacher getting credit for the completion of the tractor, her predecessor Allie Bode’ had led her students through a large part of the project. She said she wanted Bode’ and the classes that she led to be recognized as having made a big contribution to the bringing the tractor back to its former glory. Sebastian also said that try as they might, the tractor never ran. He said that the front crank starter was seized up so badly that the class tried everything short of a sandblaster to get it to break loose, but it never did. The final paint work was completed on the tractor on April 8th according to White. Then it was transported to Heartland Community College and presented to the school for the ag complex. When all the outdoor photo ops were completed, the class was taken back inside the complex where they would hear a presentation about Heartland College in general and be treated to lunch courtesy of the college. [Nila Smith]
Page 30 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 There is a labor shortage in the agriculture industry. For some, that statement may be new information, especially if you do not keep an eye on the agriculture industry. For those who do, on the other hand, that statement is likely a fact of life by now. For farmers and those actively involved in the agriculture industry, this is likely a great source of stress and anxiety. Labor shortages in the agriculture industry are nothing new. A brief Google search on the topic brings up many articles. “Finding good farm help has gotten tough,” reads the sub title of a 2018 article from the website Successful Farming. The title of a 2021 article from USA Today reads, “Finding workers was already hard for the ag industry. Now it’s even worse, farmers say.” A Farm Bureau Financial Services article from 2022 calls finding good employees for farms “more difficult than ever.” Brian Duncan, President of the Illinois Farm Bureau, published an opinion piece earlier this year stating the need for a stable workforce in the agriculture industry. Clearly, this is nothing new for farmers. What are some of the repercussions of not having a stable workforce on your farm? What about Labor Shortages in the Agriculture Industry the effects on the agriculture industry as a whole? What are some of the things you can do if your farm is also struggling in this manner? Read on to learn more. A Newsweek article published this year states that the agricultural industry has “2.4 million farm jobs needing to be filled.” They got this number from the American Farm Bureau Federation. This extremely high need for labor comes with its consequences. According to the same article, between 2017 and 2022, the United States saw a seven percent cutback in farms. Zippy Duvall, the American Farm Bureau Federation President, blamed this partly on the labor shortage. “‘There is no question that our broken workforce system is partly to blame,’” Duvall said while commenting on why the U.S. is losing farms so fast. One of the major fallouts of this labor shortage is the spoiling of perfectly good produce. A 2019 study out of California found that over thirty percent of the crops that were ready to harvest were left in the fields at the end of harvest time. This leads to a large loss in potential revenue for the farmers as well as the Continued --
2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Page 31 state they operate within. A report by Kansas State University and the Kansas Department of Agriculture stated that, if the agricultural labor shortage were addressed, it could raise Kansas’s economy by $11.7 billion. Are there any solutions to this problem, and if so, what are they? Well, in 2023, the USDA created a grant program designed to help farmers address their concerns with labor shortages. It is called the Farm Labor Stabilization and Protection Pilot Grant Program. The Farm Bureau also suggests recruiting labor in places such as high schools and colleges, 4-H and FFA programs, local bulletin boards, and even online. Beside recruiting in the right places, the Farm Bureau also suggests identifying the skills you need in your workers and being clear about the expectations you have for your employees. They also recommend you be willing to teach any newly hired employees. Just because someone does not have the skill when you hire them does not mean they cannot learn. “Some of your best potential employees may not have a background in agriculture but could learn,” a Farm Bureau article states. Probably one of the most important aspects of farm labor, however, is immigration. According to a 2019-2020 survey conducted by the U.S. Department of Labor’s National Agricultural Workers Survey, “approximately 68% of farm workers are foreign-born, the overwhelming majority from Mexico.” A potential issue of this statistic is the additional statistic of how many of these foreign-born workers are undocumented. According to Rice University’s Baker Institute website, “agriculture is recognized as one of the sectors with the highest proportion of undocumented workers.” This website went on to state that, of all the farm labor force, undocumented workers have “comprised around 40% of the labor force over the last three decades.” The U.S. government has been attempting to create legal pathways for these undocumented workers to legally get into the country for a time and work as seasonal labor. The H-2A Temporary Agricultural Program, also known as the H-2A visa program, pairs foreign-born individuals looking to work in the U.S. with farmers who are looking for laborers. This program does have its drawbacks, such as the fact that the laborers are granted a maximum stay of ten months. While this works for crop farmers, many livestock farmers, who need labor year-round, are not completely covered by the visa program. Another potential issue is the need for proof. According to the USDA’s website, the farmer “must demonstrate… Continued --
Page 32 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 that efforts to recruit U.S. workers were not successful. The program is very heavily used, however. This is a sign of just how much farmers are in need of labor. The same USDA article states, “one of the clearest indicators of the scarcity of farm labor is the fact that the number of H-2A positions requested and approved has increased more than sevenfold in the past 17 years, from just over 48,000… in fiscal 2005 to around 371,000 in fiscal year 2022.” Clearly, the agriculture industry is in dire need of labor. There are several things you can do to try to find help, such as increasing your search area, even as far as foreign labor. Even if you are not a farmer looking for workers, keep some of what you learned here in mind and thank a farmer the next time you can for keeping farm-fresh products on your dinner plate even through these kinds of struggles. [Matt Boutcher] Resources: https://www.agriculture.com/farmmanagement/estate-planning/helpwanted-how-farmers-are-tackling-a-laborshortage#:~:text=Finding%20reliable%20 labor%20has%20become,paid%20jobs%20 in%20other%20industries https://www.usatoday.com/story/money/ economy/2021/07/03/labor-shortage-farm-agindustry-fill-positions-open-jobs/7852447002/ https://www.fbfs.com/learning-center/how-torecruit-new-employees-for-your-agriculturebusiness https://www.ilfb.org/opinion/agricultureneeds-a-stable-workforce-in-2024/ https://www.croptracker.com/blog/laborshortages-in-agriculture-the-trends-andsolutions#:~:text=How%20the%20Farm%20 Labor%20Shortage,to%20attract%20and%20 keep%20talent. https://www.newsweek.com/us-farmingcrisis-h2a-visa-reform-labor-shortage1878530#:~:text=Labor%20shortages%20 in%20agriculture%20have,left%20in%20 fields%20post%2Dharvest. https://www.fsa.usda.gov/farmworkers https://www.fbfs.com/learning-center/how-torecruit-new-employees-for-your-agriculturebusiness https://www.farmworkerjustice.org/wpcontent/uploads/2022/06/NAWS-data-factsheet-FINAL.docx-3.pdf https://www.bakerinstitute.org/research/ feeding-america-how-immigrantssustain-us-agriculture#:~:text=9%5D- ,Undocumented%20Versus%20Legal%20 Farmworkers,highest%20proportion%20 of%20undocumented%20workers. https://www.ers.usda.gov/topics/farmeconomy/farm-labor/#h2a
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Page 34 2024 Fall Farm Outlook Lincoln Daily News Oct 2024 Just a few years ago, when drones were used on farms, it was mainly for collecting data. Now drones are being used in other ways to improve farm operations. In recent years, some farmers have also begun using agricultural robots to help with planting. These technologies are transforming farming practices. In Lincoln Daily News’ Fall 2019 Farm Outlook Magazine, Derek Hurley wrote about the use of drones in agriculture, which was something relatively new at the time. To increase their production, farmers were beginning to use more technology. Hurley said, “the next few years might see an increase in more than just human hands and big machines in the field.” At that point, drones were mainly being used to take photos for data collection. Five years later, drones have become more common in agriculture and are being utilized for more than just data collection. In the August 2024, “How farmers and livestock producers are using drones, another tool in the toolbox,” Makayla Voris said, “Drones flying over Midwestern fields are likely to become a more typical sight. Farmers are finding that the remotely piloted aircraft can do everything from spraying fields to monitoring livestock.” Among the advantages of drones listed in Voris’ article are lower production costs, precision when spraying and less chemical exposure. Five Years Later: The advancement in drone technology and uses on the farm Besides drones, some farmers are beginning to use “agriculture robots.” In “Field to Farm: How Robots in Agriculture Revolutionize Farming,” Klajd Lika explains what agriculture robots are and what tasks they can do along with several ways they are changing how farming is done. Lika says, “Agriculture robots, or agribots, are advanced machines designed specifically to perform various farming tasks, such as planting seeds, watering crops, and harvesting produce.” Continued --
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