Feed Market News

By Stephen R. Koontz, Department of Agricultural and Resource Economics, Colorado State University – Published in Ohio BEEF Cattle Letter – https://u.osu.edu/beef/

US corn acres were projected higher than anticipated.

The end of June was the second major feed market impacting report. USDA NASS Acreage revealed 91.5 million acres of corn to be planted. That is up from the 90.0 million acres reported in the Prospective Plantings report from March. Of the 91.5 million acres, 3.4 million acres had yet to be planted when the survey was conducted and that occurs the first two weeks of June. Some of the strongest jumps in plants between the March and June reports were in Kansas and Nebraska. Corn basis in the southern plains has been strong for years and this jump in acreage has likely that market in mind.

It will be interesting to see the WASDE in two weeks. If there is any forecasted increase in usage for new crop corn – because with these acres and trend yields then corn production will be better than 15 billion bushels. And if usage remains steady, then the stocks-to-use ratio will increase to more than 16%. This level of stocks has not been seen since the 2005/06 crop year. New crop corn futures have fallen to between $4.15-$4.20 and $4.00 will be pressured if yields are better than the trend, which seems likely given the rainfall that much of the corn belt has seen. The cattle – and every other protein animal – industry is looking at prospects of the lowest feed grain prices in years.

What about forage prices? Alfalfa hay is down around $200 per ton nationally and in many regions. Other hay is around $150 per ton. Prices for lower-quality cattle and feedlot hay have relaxed a lot this spring. This hay in Nebraska, Colorado, and Kansas is bringing just better than $100 per ton and there are several reported transactions below $100 especially of big round bales. There will be a good bit of rained-on hay in the southeast, in the corn belt, and in the northern plains.

And pasture conditions? Nationally, 25% is in the Poor and Very Poor category. Western states are in very good shape and comparable to last year at just below 20%. The Great Plains and Southern Plains regions are also in good shape and comparable to last year. Finally, the southeast is much improved over the dry conditions observed last fall. The Drought Monitor is much improved this year in corn, forage and pasture, and cattle growing regions.

Further, we continue to see some reduction in the long-fed inventories. Cattle on feed for more than 150 days – calculated from the report last week – are still strong compared to last year and strong compared to all but the peak of the COVID disruptions. But inventories are down sharply from the prior month. And cattle on feed for over 120 days – also calculated – are below those from 2022 and 2021. That is the first time in nine months. The longest-fed inventories remain the burden but are being cleaned up.

Regional Updates: July 2 – 8

By Trevor Corboy, Brown County Extension Educator, Agriculture & Natural Resources and Community Development, Kendra Stahl, Crawford County Extension Educator, Agriculture & Natural Resources, Dean Kreager Licking County Extension Educator, Agriculture & Natural Resources, Jacob Winters, Auglaize County Extension Educator, Agriculture & Natural Resources, Stephanie Karhoff, CCA, Field Specialist, Agronomic Systems  – Published in the Agronomic Crops Network C.O.R.N Newsletter – https://agcrops.osu.edu/

The southern half of the state remains especially dry as corn and first crop soybean enter early reproductive stages. Field issues Ohio State University Extension Educators and Specialists have seen this past week include gray leaf spot on corn, poor weed control, and chlorosis or yellowing in soybean.

Southwest – Trevor Corboy of OSU Extension in Brown County reported that the region received anywhere between 0.5 – 2.5 inches of rainfall, as dry conditions persist. Main field activities in southwest Ohio included 2nd cutting hay and herbicides being applied to double crop soybean fields. Both soybean and corn are in good condition and wheat harvest is nearly complete.

Northwest – Kendra Stahl of OSU Extension Crawford County shared that wheat harvest is on average >85% complete in northwest Ohio. Growers have also been busy finishing 2nd cutting hay, double crop soybean planting, and baling straw. First crop soybean is in fair condition, and corn is in good condition. Early symptoms of gray leaf spot were seen after humid conditions 2-3 weeks prior. The most common weed issues so far have been giant ragweed, velvet leaf, volunteer corn, foxtail, and waterhemp.

Southeast – OSU Extension Licking County Extension Educator Dean Kreager reported that rainfall has been variable across the region but well below average since early June. Dry conditions have slowed forage growth in hay and pasture fields, but corn is in excellent condition as it begins to tassel. Soybean in fair condition and earlier planted fields have reached R1 (flowering).

Central and West Central – Jacob Winters of OSU Extension Auglaize County shared that fungicide applications in corn began in some areas this past week. Other field activities included tillage, herbicide applications, and second cutting hay. Wheat harvest is ≥80% complete in the region. Corn planted in April and early May has begun tasseling and is in good condition. Soybeans are approaching flowering and are also in good condition. Yellowing soybeans were observed in West Central Ohio, potentially from potassium deficiency, dry conditions, and/or herbicide damage.

Ohio Farm Custom Rates 2024

By Barry Ward, Leader for Production Business Management and Director of OSU Income Tax School for OSU Extension – Published in the Farm Office Blog – https://farmoffice.osu.edu/blog

Ohio Farm Custom Rates 2024

Barry Ward, Eric Richer, John Barker, and Amanda Bennett, OSU Extension

Farming is a complex business and many Ohio farmers utilize outside assistance for specific farm-related work. This option is appealing for tasks requiring specialized equipment or technical expertise. Often, having someone else with specialized tools perform tasks is more cost-effective and saves time. Farm work completed by others is often referred to as “custom farm work” or more simply, “custom work”. A “custom rate” is the amount agreed upon by both parties to be paid by the custom work customer to the custom work provider.

Custom rates increased for the majority of field operations in 2024 as compared to surveyed rates in 2022 but the increases did vary by operation. Examples include an increase of 6% for Planting Corn (30 Inch Rows with Fertilizer Application), 5.6% for Harvesting Corn (Combine, Grain Cart, Haul Local to Farm), 21% for Spraying (Self-Propelled Sprayer, Crop Protection Chemicals) and 24% for Field Cultivator.

New field operations in this year’s survey and summary include drone/UAV application and cover crop seeding.

Ohio Farm Custom Rates

The “Ohio Farm Custom Rates 2024” publication reports custom rates based on a statewide survey of 333 farmers, custom operators, farm managers, and landowners conducted in 2024. These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine, etc., and labor for the operation.

Some custom rates published in this study vary widely, possibly influenced by:

  • Type or size of equipment used (e.g. 20-shank chisel plow versus a 9-shank)
  • Size and shape of fields
  • Condition of the crop (for harvesting operations)
  • Skill level of labor
  • Amount of labor needed in relation to the equipment capabilities
  • Cost margin differences for full-time custom operators compared to farmers supplementing current income

Some custom rates reflect discounted rates as the parties involved have family or community relationships. Discounted rates may also occur when the custom work provider is attempting to strengthen a relationship to help secure the custom farmed land in a future purchase, cash rental or other rental agreement. Some providers charge differently because they are simply attempting to spread their fixed costs over more acreage to decrease fixed costs per acre and are willing to forgo complete cost recovery.

Charges may be added if the custom provider considers a job abnormal such as distance from the operator’s base location, difficulty of terrain, amount of product or labor involved with the operation, or other special requirements of the custom work customer.

The data from this survey are intended to show a representative farming industry cost for specified machines and operations in Ohio. As a custom farm work provider, the average rates reported in this publication may not cover your total costs for performing the custom service. As a customer, you may not be able to hire a custom service for the average rate published in this factsheet.

It is recommended that you calculate your own costs carefully before determining the custom rate to charge or pay. It may be helpful to compare the custom rates reported in this fact sheet with machinery costs calculated by economic engineering models available online. The following resources are available to help you calculate and consider the total costs of performing a given machinery operation.

  • Farm Machinery Cost Estimates, available by searching University of Minnesota.
  • Illinois Farm Management Handbook, available by searching University of Illinois farmdoc.
  • Estimating Farm Machinery Costs, available by searching Iowa State University agriculture decision maker and machinery management.

Volatility in diesel price may sometimes cause concern for custom rate providers that seek to cover all or most of the costs associated with custom farm operations. The approximate price of diesel fuel during the survey period (January – April 2024) ranged from $3.20 – $3.50 per gallon for off-road (farm) usage. As a custom farm work provider, if you feel that your rate doesn’t capture your full costs due to fuel price increases you might consider a custom rate increase or fuel surcharge based on the increase in fuel costs.

The complete “Ohio Farm Custom Rates 2024” publication is available online at the Farm Office website:

https://farmoffice.osu.edu/farm-management/custom-rates-and-machinery-costs

Regional Updates: June 25 – July 1, 2024

By Rylee Kay Puthoff, Shelby County Extension Educator, Agriculture and Natural Resources, Trevor Corboy, Brown County Extension Educator, Agriculture & Natural Resources and Community Development, Lee Beers, CCA, Trumbull County Extension Educator, Agriculture and Natural Resources, Allen Gahler, Sandusky County Extension Educator, Agriculture and Natural Resources, Ted Wiseman, Perry County Extension Educator, Agriculture and Natural Resources, Stephanie Karhoff, CCA, Field Specialist, Agronomic Systems  – Published in the Agronomic Crops Network C.O.R.N Newsletter – https://agcrops.osu.edu/

Heavy rainfall in the northwest and northeast corners of the state paused wheat harvest and 2nd cutting hay, but the southern half of Ohio remains very dry as we head into the week. Hot issues this week include weed escapes and weather stress. Keep reading for region-specific details.

Central & West Central – Rylee Kay Puthoff of OSU Extension Shelby County shared that wheat harvest is 90% complete, with growers continuing to bale straw. Soybean is in fair condition overall and ranges from V4 to R1 (flowering), with reports of both giant ragweed and waterhemp escapes. Corn is in good condition with early planted fields beginning to tassel.  The region received anywhere from 0.5 – 2 inches of rainfall.

Southeast – Ted Wiseman of OSU Extension Perry County reported that wheat harvest and first cutting hay are finished, with second cutting for alfalfa underway in parts of southwest Ohio. The area remains very dry with low soil moisture levels impacting pasture fields. Corn and soybean are both in fair condition with a wide range of growth and development.

Southwest – Trevor Corboy of OSU Extension Brown County reported that southeast Ohio remains dry after receiving less than 0.5 inches of rain this week. Soybean is in poor condition with replanting still occurring in some areas. Corn is in fair condition and wheat harvest is about 95 percent complete.

Northeast – Extension Educator Lee Beers reported that wheat harvest is 30% complete in northeast Ohio, and despite isolated heavy rainfall across the area (≥7 inches in portions of Ashtabula County), soil moisture levels are approaching dry.  Both soybean and corn are in good condition and approaching early reproductive stages in early planted fields. Weed escapes noted this week include redroot pigweed and horse nettle.

Northwest – Al Gahler of OSU Extension Sandusky County shared that wheat harvest is 40% complete in Northwest Ohio as most of the region received excessive rainfall this past week. Soybean is in fair condition and anywhere between VE in replanted fields and R1 in April planted fields. Yellowing was observed some soybean fields, likely due to weather stress and other factors. Corn is in fair condition and insect numbers remain relatively low.

What’s Wrong with Stacking Round Bales?

Amber Friedrichsen, Associate Editor, Hay and Forage Grower – Published in the Sheep Team Newsletter https://u.osu.edu/sheep/ (Previously published in Hay & Forage Grower: July 2, 2024)

(Image Source: Hay & Forage Grower)

Moving round bales out of a field and under cover may seem like one more item on the to-do list of a busy hay season, but rushing to complete this step may result in improper storage that can squander the forage yield and quality farmers worked so hard to achieve.

In a recent article from the Midwest Forage Association’s Clippings newsletter, Sarah Bauder with South Dakota State University encourages best storage practices to conserve dry matter and quality in round bales. The forage field specialist suggests bale storage is just as important to product value as plant maturity, harvest management, and pest control.

Dry matter and quality losses occur when water is trapped in hay and causes spoilage. This can be exacerbated by several factors, including hay binding, storage structures, bale stacking, and time.

Densely made bales are better equipped to exclude excess moisture, and the shape of a round bale is more conducive to shedding water compared to a square one. Bauder added that different forage species have different water-shedding capabilities. For example, grasses have broad, flat leaf blades that can prevent water from penetrating bales better than smaller alfalfa leaves.

Field day findings
At a field day in 2019, Bauder conducted a demonstration with an electric probe to measure moisture levels in bales that were stored on various sites at a farm that received over 20 inches of rainfall throughout the season. Approximately 50 samples were taken at an 8-inch depth from the flat face of each bale and used to create spatial maps of moisture.

For bales stored under an open shed, approximately 98% of the sampling area measured 20% moisture or less. Conversely, more than two-thirds of the sampling area of bales stored outside in tightly packed rows exceeded 22% moisture. Bales stored in the middle and bottom tiers of a stacked pyramid shape retained even more moisture, with over 35% of the sampling areas exceeding 30%.

“Water tends to shed from upper bales into the lower layer where limited air movement and sun exposure deteriorate the bales,” Bauder explains. “The bottom bales also tend to squat, creating more contact with the ground and increasing moisture wicking.”

Mushroom stacking — or placing one bale on its flat side and placing a second bale on its round side on top — caused the most spoilage. In fact, data showed more than 45% of the sampling area of the bottom bale in a mushroom stack was over 35% moisture.

Overall, Bauder said the results from the field day aligned with typical storage recommendations. Protecting round bales under a roof is the best option; however, there are ways to prevent spoilage if bales must be stored outside.

  • Avoid stacking bales. If bales must be stacked due to limited storage space, cover the pile with plastic.
  • Utilize net wrap instead of twine to help bales shed excess water and maintain integrity and shape.
  • Do not place bales in a shaded area; keep them in the sun as much as possible. This allows for better drying after bales have been exposed to precipitation.
  • Locate a south-facing slope for bale storage to promote water drainage. Additionally, establish a well-drained surface, such as gravel or a rock pad, to further reduce water wicking.
  • Orient bales in rows from north to south with 3-4 feet in between rows. Bauder notes that butting bales together tightly protects the flat faces from rain and snow accumulation, whereas a 12-18-inch gap between individual bales allows for better airflow. With that said, there is no research consensus on the ideal distance between bales.