Financial Risk Management & Contingency Planning

Source: Purdue University

Farming is never the same from year to year – sometimes prices are good, net farm income is high, and other times margins are tight. Planning ahead, or contingency planning for financial hardship is important for any farm operation. In this final episode in the Farm Risk Management podcast series, Purdue’s Michael Langemeier and Ed Farris join Brady Brewer to discuss financial risk management. How to evaluate farm financials, update financial statements, analyze performance, and when borrowing makes sense.

A Financial Risk Checklist pdf and the audio transcript can be found below.

Markers:
00:51  Evaluate Your Farm Financials
04:17  Update Financial Statements
09:32  Analyze Performance
14:07  When Borrowing Makes Sense

Webinar series on Solar Development in Ohio

Do you want to know more about what’s happening with Ohio solar energy development?  Join us for a five-part webinar series reviewing the current state of solar development in Ohio and explaining the solar development process. Attend one, several, or all of the following webinar sessions:

May 23: Solar Development Overview and Trends

• We’ll give an overview of Ohio solar development and discuss industry and technology trends, dual use of land for solar energy and agricultural production, and community and regulatory issues with solar development.

May 24: Leasing Land for Solar Development

• This session targets landowners considering a solar lease. We’ll cover pre-leasing issues, solar lease phases, common legal terms, and best management practices for leasing.

May 25: Connecting to the Electric Grid

• Approval to connect to the grid is a necessary and critical part of the solar development process. We’ll provide an overview of the electric utility system, regulatory jurisdiction, and interconnection procedures and timelines.

May 30: Solar Project Approval in Ohio

• Ohio regulatory requirements for solar projects have changed in recent years. This session explains solar project application procedures, state oversight, and new laws allowing county and township oversight of solar development. May 31: Construction and Post-Construction Considerations • What does solar project construction involve, and what happens at the end of a project’s life? We’ll cover the construction process, common construction issues, regulatory oversight of construction, and requirements for decommissioning a project in the future.

Learn more and register at go.osu.edu/solarwebinars.

If You Planted and Heavy Rainfall Affected Your Fields…

Source: Osler Ortez, Laura Lindsey, OSU Extension

According to the USDA-NASS report for the week ending 05/14/23, 26% of Ohio’s corn and 28% of Ohio’s soybean acres were planted. About 8% of corn and soybean was reported emerged.

Heavy rainfall (1-2 inches of rain) events were reported for some areas of Ohio last week. Heavy rainfall can negatively affect planted and emerged fieldsplanted and non-emerged fields, and yet-to-be-planted fields. If you are in one of the areas with concerns about heavy rainfall, below is a summary of topics that one should consider (Table 1).

Table 1. Topics, considerations, and takeaways for corn and soybean fields are affected by heavy rainfall this season.

The bottom line is that seed damage due to abiotic factors can affect seedling vigor, plant growth, and crop establishment, ultimately reducing crop stands and yields. We recommend weighing the above considerations if you are affected by heavy rainfall this crop season.

Changes Ahead with Potential El Niño

Source: C.O.R.N Newsletter

After a dry late summer and autumn of 2022, winter turned wetter to offset that dry period. However, in April 2023, we turned a bit drier again. The main thing we need to monitor closely now is a rapidly developing event in the eastern equatorial Pacific Ocean. It appears we are on our way toward an El Niño very soon. There are two types of El Niño events, ones in the eastern equatorial Pacific near South America (almost directly south of Ohio) and the other in the central equatorial Pacific Ocean more south of Hawaii. It appears this one may be an eastern Pacific type. Historic years with the eastern Pacific developing El Niño (EPAC) include 1957, 1965, 1972, 1982, 1997 and 2015.

The following images are what happens from May to August in those developing eastern Pacific El Niño years since 1950 for temperatures and precipitation. In those summer growing seasons, it tends to be normal temperatures (with limited extreme maximum temperatures above 95) with a tendency toward drier than normal conditions. The wheat areas of the Plains and western corn and soybean areas tend to see wetter conditions while eastern corn and soybean areas tend to be drier.

The Midwest Regional Climate Center at Purdue has a great page with crop yields impact related to these developing El Niño events. Most of the EPAC El Niño years had below normal trend line yields in Ohio. It is not a guarantee this would happen this year yet as things are developing at this time. We should know more in a month or so.

https://mrcc.purdue.edu/mw_climate/elNino/impacts.jsp

OUTLOOKS:

The outlook for the rest of May includes near normal temperatures with precipitation near normal in southern Ohio and below normal in northern Ohio.

The latest U.S. climate model indicates a drier June and August and a near normal July for rainfall.

https://www.cpc.ncep.noaa.gov/products/CFSv2/htmls/usPrece3Mon.html

Looking ahead to autumn harvest season, the normal temperature pattern and normal to below normal rainfall trends are expected to linger through October before wetter conditions may arrive late in the harvest season about November. The other indication is freeze and frost conditions do not look likely in September but could occur at or earlier than normal in October based on projected El Niño conditions.

https://www.cpc.ncep.noaa.gov/products/CFSv2/htmls/usT2me3Mon.html

In summary, it appears an El Niño is coming very soon and could have some negative impacts to Ohio. Monitor for areas of developing dry conditions into June.

Wheat Growth and Development – Feekes 10.1

Today managing your wheat crop requires knowledge of the different growth stages of the plant.  Growth stage identification is critical for scouting and proper timing of fertilizer and pesticide applications.  Each week throughout the rest of the growing season I will discuss the various wheat growth stages I am seeing in our wheat fields and management issues at each stage.  Today I will focus on Feekes 10.1.  While growth stage does vary throughout the County, most of our field have passed through Feekes 10 and are at (or approcahing) Feekes 10.1 growth stage.

Feekes 10.1 – The start of heading

Heading marks the emergence of the wheat head, and is subdivided into stages based on how much of the head has emerged.  The first heads escape through a split in the flag leaf sheath at Feekes 10.1. All heads are out of the sheath at Feekes 10.5. It usually takes 3 to 5 days for the head to fully extend above the flag leaf. Temperatures below 30 degrees Fahrenheit may damage the developing head. Crop water demand can exceed 0.3 inch per day during heading through the soft dough stage.

Management

Scout for insects, weeds, and diseases. A fungicide application may be considered to protect heads from scab. Check fungicide label for pre harvest interval restrictions and proper growth stage for application. Click here to go to an earlier post containing the 2023 Wheat Fungicide Ratings. 

Field Observations Thru May 12

Throughout the growing season I will post information on different pests or issues I am seeing in our fields in Knox County.  This week Mother Nature is finally cooperating, a little, and we are starting to make some planting progress.  Below are a some to observations to keep an eye on.

Alfalfa

Continue to scout fields for Alfalfa Weevil.

Click here for Alfalfa Weevil Scouting Guide

 

 

Corn

Finally, we are planting!  While conditions are not perfect, we are able to get some seeds in the ground!

Most of our early planted corn has sprouted, some has finally begun to emerge.  As you evaluate your plant stand, do not be too concerned, yet – it is still early!

Click here to read the following post from OSU Agronomists Osler Ortez, Laura Lindsey, Alexander Lindsey

Soybeans

Same story as corn.  Early planted soybeans are beginning to emerge. As you evaluate your plant stand, do not be too concerned, yet – it is still early!

Click here to read the following post from OSU Agronomists Osler Ortez, Laura Lindsey, Alexander Lindsey

Wheat

Trapped heads in Wheat.  While rare, I have seen this before. It looks like the heads are trapped in the boot.  This is usually a weather related issue.

Under warm conditions, the heads are pushed out of the leaf sheath quickly, but when it’s cold/cool, the process is slower, causing the heads to get trapped.  This is particularly problematic on awned varieties.  This issue could cause some constriction and affect grain full at the tips of the head, but usually not a major cause for concern.  

Click here for more information

Wheat Growth and Development – Feekes 10

Today managing your wheat crop requires knowledge of the different growth stages of the plant.  Growth stage identification is critical for scouting and proper timing of fertilizer and pesticide applications.  Each week throughout the rest of the growing season I will discuss the various wheat growth stages I am seeing in our wheat fields and management issues at each stage.  Today I will focus on Feekes 10.  While growth stage does vary throughout the County, most of our field have passed through Feekes 9 and are at (or approcahing) Feekes 10 growth stage.

Feekes 10 – Boot

The head is inside the leaf sheath giving it a swollen appearance.  The flag leaf sheath and peduncle elongate and the developing head is pushed through the flag leaf sheath.  Temperatures below 28 degrees Fahrenheit may cause damage to the developing head.

If you need a reminder on how to determine if wheat is at Feekes GS 10, watch this video.

Management

Scout for insects, weeds, and diseases. Application of 2,4-D after wheat reaches the boot stage of growth can result in trapped heads, missing florets, or twisted awns.

We are still very early, but if crop stands are a concern…

Source: Osler Ortez, Laura Lindsey, Alexander Lindsey

We are still early, but if you planted in April or the first few days of May, soil conditions have been wet and cold in many parts of the state. Early plantings, cold air/soil temperatures, and precipitation cause slow progress in corn and soybean.  Corn and soybean plants slowly emerge from the ground under wet soil conditions.

One of the downsides of planting early is the risk of seeds sitting too long in the field. Seed damage (biotic or abiotic) can lead to reduced stands in planted fields. Factors to consider are imbibitional chilling, frost damage, seed treatment duration/viability, insect/disease damage, soil crusting, and standing water. These factors (or combinations) can negatively affect seedling vigor, plant growth, crop establishment, ultimately reducing crop stands. If reduced stands are a concern, a potential solution is to replant fieldsHowever, we are still early to make accurate assessments of crop stands.

Our 101 recommendation now is to wait… Crop stands should be assessed after ‘stable’ and ‘better’ conditions are achieved (e.g., warmer temperatures, adequate soil moisture conditions):

  • For corn, past work has shown that 50% emergence can be expected following accumulation of 150 soil GDDs (base of 50°F) from planting, about 5-7 days under normal conditions (much longer under cold/wet as areas of Ohio have been).
  • For soybean, assess the stands no earlier than the VC growth stage. Visual stand assessment at the VE growth stage often underestimates the number of plants that will emerge.

Figure 2.

Often, hasty decisions are not the best. When replanting decisions on early planted acres are made, one should be careful about getting more plants than necessary in the field. In the following picture (Figure 2), the first set of soybeans was planted early and took a long time to emerge from the ground. So, a replanting decision was made (replanted at an angle). Once the weather conditions turned better, the first planting and replanting came up, in which case the replant was unnecessary. We suggest caution when replanting decisions are made.

Wheat Growth and Development – Feekes 9

Today managing your wheat crop requires knowledge of the different growth stages of the plant.  Growth stage identification is critical for scouting and proper timing of fertilizer and pesticide applications.  Each week throughout the rest of the growing season I will discuss the various wheat growth stages I am seeing in our wheat fields and management issues at each stage.  This week I will focus on Feekes 9.  While growth stage does vary throughout the County, most of our field have passed through Feekes 9 and are at (or approcahing) Feekes 10 growth stage.

Feekes 9 – Ligule of flag leaf visible.

The flag leaf is completely emerged from the whorl. Flag leaf and the next-to-last leaf (penultimate leaf ) combined account for 70 to 90 percent of the photosynthates used for grain fill and must be protected for the plant to develop to its full potential.

If you need a reminder on how to determine if wheat is at Feekes GS 9, watch this video.

Management Scout for insects and diseases. Consider a fungicide application to protect the flag leaf if foliar diseases are present on the lower canopy. Nitrogen application can increase grain protein levels.

Wheat Growth and Development – Feekes 8

Today managing your wheat crop requires knowledge of the different growth stages of the plant.  Growth stage identification is critical for scouting and proper timing of fertilizer and pesticide applications.  Each week throughout the rest of the growing season I will discuss the various wheat growth stages I am seeing in our wheat fields and management issues at each stage.  This week I will focus on Feekes 8.  While growth stage does vary throughout the County, most of our field are at or beyond Feekes 8 growth stage.

Feekes 8 – Last leaf just visible.

The flag leaf starts to emerge from the whorl above the third or fourth node. Strong partitioning of photosynthates to the developing head.    The flag leaf will contribute 75% of the energy needs of the developing grain.  Crop water demand increases to about 0.3 inch per day.  Approximately 45 percent of the total dry matter is accumulated by this stage.

Management

To maintain optimal leaf area, scout for diseases and pests.