The U.S. is again trying to harden the U.S. trade embargo against Cuba. The trade embargo is called “el bloqueo” or “the blockade” by the Cubans and is basically a refusal to trade most goods with the country. President John F Kennedy placed the ag embargo on October 19, 1960.
In the past couple of years, the U.S. was starting to soften to Cuba and Illinois got particularly excited about the opportunity to trade with the country. Not only do they desperately need the food we could provide, but they are also a natural market for the U.S. being so close. AND, with Illinois positioned right on the Mississippi River, we are the natural, lowest cost provider to get food and grain to them.
But now, as the U.S. again begins to rethink trade with Cuba, Argentina and Brazil will be able to continue providing what the Cubans need, despite added transit time, higher freights and additional pest control costs.
Cuba is a 900,000 metric ton (35.4 million bushels) market for corn. Based on recent export sales, capturing this demand would make Cuba the 11th largest customer for U.S. corn. In addition, free flow of grain to Cuba would help capture sales to the Dominican Republic and even Puerto Rico, worth hundreds of millions of dollars per year.
Capturing the Cuban market wouldn’t change everything for Illinois corn farmers, but it would make an impact. And when corn prices are below the cost of production (and Cubans are starving for real food!), every little bit helps.
Read the full article here: http://www.grains.org/news/20170706/hot-topics-cuban-embargo-will-hurt-grain-trade-despite-continued-engagement
ICGA/ICMB Marketing Manager
How fitting! As we head into the new year, make sure you read this series to see what’s in store for farmers and their families!
[Originally published: January 19, 2016]
As a farmer’s wife I can’t tell you how many times I have answered the question “Where’s your husband?” when attending social functions by myself. Depending on the time of year, I typically respond with “in the fields… hauling grain… working cows… baling hay… in the shop…” etc. Farmers are just BUSY — All the time!
Some people think that the only busy times of the year are planting and harvest and the rest of the year farmers spend their glorious amounts of free time vacationing or tinkering with antique tractors. This may be true for some, but not the majority. I’m beginning a one-year series that will give you an idea of a farmer’s work load. Watch for my monthly article to stay up-to-date with what farmers might be up to at different times of the year. Keep in mind that all farms operate differently and I am just providing one example of a year in the life of a grain farmer. There are several factors that contribute to the seasonality of the farm such as size and scale of the operation, crops grown, location, livestock, management style and general upbringing or personal work ethic! I hope this provides some insight to what versatile businessman farmers are.
The agriculture fiscal year-end is December 31st meaning that January is a very busy month for bookkeeping and tax preparation. Farm taxes are due a little earlier than other individuals’: March 1st. Between now and then there will be several meetings with accountants to go through the business’s income and expenses from the prior year. Most farmers do not pay into incomes taxes through the course of the year, because there’s not regular paychecks to deduct taxes from. This means a (big?) payment to Uncle Sam is due by March 1st.
January is a big month for hauling last year’s stored grain to the local elevator. Up until now, the farmer may have been keeping last fall’s harvest in bins at his own farm. This saves him from paying a storage fee to the elevator for holding it there. The elevator constantly puts out corn prices for certain delivery months and at any time the farmer can call up his elevator to lock in a sale price for that month. The thing is, he doesn’t get paid until he delivers it to the elevator. This requires him to unload the grain out of his bins, put it into a semi or grain truck and drive it to the elevator.
Planning ahead for next year’s crop
For a lot of farmers, as soon as last year’s crop has been harvested, it’s time to start considering decisions that need to be made in preparation for next year’s crop. Depending on which fiscal year the farmer wants his expenses to go in, December and January are a prime time for deciding which field will be planted in what seed variety and locking in input costs like seed, fertilizer and chemicals. Many dealers offer discounts and the earlier you lock in their product/price the better the discount.
Ag groups host a lot of meetings in the winter because they know they’ll have better turnouts in the off-season. There will be association meetings, chemical training courses, annual reports from elevators and other co-ops, market outlook discussions and other industry-related get-togethers.
Household and farm odd-jobs / repairs
If anything’s been needing fixin’ now’s the time to finally get to it! Clean and organize the work bench. Sweep out the empty grain bins. Patch a bad spot in the barn. Make sure the generator is in good working condition. Get a load of gravel delivered for the lane. Rearrange the equipment in the shed so you can get the snow blower to hook onto the right tractor.
When you’re ready for a break from farm things, make sure to ask your wife what you can check off of her honey-do list… Then take her out to dinner because she’s been patiently waiting for this little breather as well! The closer planting season gets, the busier the farmer becomes!
Some people think that the only busy times of the year are planting and harvest and the rest of the year farmers spend their glorious amounts of free time vacationing or tinkering with antique tractors. This may be true for some, but not the majority. Today is the eleventh post in my one-year series which will give you an idea of a farmer’s workload throughout the year. Keep in mind that all farms operate differently and I am just providing one example of a year in the life of a grain farmer. There are several factors that contribute to the seasonality of the farm such as size and scale of the operation, crops grown, location, livestock, management style and general upbringing or personal work ethic! I hope this provides some insight to what versatile businessman farmers are.
Start at the beginning!
You’ll continue to get stuck behind slow-moving vehicles on rural roads throughout November, but at least visibility at stop signs improves with the corn and beans down. That’s right, harvest is (finally) wrapping up!
This year’s crop:
- Harvest: A farmer could still be harvesting his grain in November, especially if he’s in Northern Illinois or if the weather is uncooperative. Rain stalls harvest by making soybeans tough and difficult to cut, or by making the fields too squishy to drive heavy machinery through. As for SNOW… it’s not impossible to combine grain with snow on the ground, but it certainly makes picking, transporting, drying and storing it more difficult. Let’s just hope they don’t have to go there!
- Manage Break-Downs: As always, managing breakdowns is an ongoing task on the farm. Gotta keep the equipment in good working order to get the job done.
- Install or fix tile lines: After the crop is out, it’s a good time to install or repair tile lines. Field tile is like a big underground gutter system that aids in field drainage. Sometimes tile can become broken or clogged and needs to be dug up and repaired. Or maybe the field didn’t have any tile to begin with. Post harvest is a good time to install it.
Next year’s crop:
- Looking ahead: With “this year’s crop” being hauled away, it’s time to implement next year’s game plan. This is where things could vary greatly from farm to farm depending on the farmer’s individual preferences and management techniques. Some options could be:
- Fall tillage: working up the ground to break up plant matter and prepare the seed bed for next year’s crop
- Fertilizer and other dry product application: Examples would be phosphorous and potassium (commonly referred to as P&K) and lime
- Anhydrous ammonia can be applied in the fall.
- If farmers are using over-wintering cover crops such as cereal rye, it may be applied post-harvest, depending on what is being planted.
- Research and place 2017 seed orders
This year, USDA, NASS stated that harvest was at least 97% complete at Thanksgiving. What a relief for farmers and their families! With the crops out of the field, the Stewards of the Land were able to enjoy some much-needed family time around the dinner table giving thanks for the bountiful harvest!
Membership Administrative Assistant
After one of the longest, most surreal and arduous political campaigns in a generation, we have finally reached a conclusion. Donald Trump was elected the 45th President of the United States. This was one of the most divisive campaigns in history with more twist and turns and mudslinging than most people generally thought possible.
Republicans have retained control of both the House and Senate. The House of Representatives, as expected, will remain in Republican hands. The Republicans maintain at least 238 seats, with four more yet to be called.
From Illinois, all but one of the seats will remain in the hands of the incumbent party. The only new Member from Illinois is Raja Krishnamoorthi, an Indian American who will fill the 8th district seat vacated by Congresswoman Duckworth. Brad Schneider, who was formerly a Member, defeated Rep. Bob Dold to take back his old seat in a 10th district rematch.
The Senate will remain in Republican control with 51 votes. Control of the Senate went down to the wire, with a number of races too close to call. Senator Kirk, long viewed as the most vulnerable Senator, lost re-election last night to Congresswoman Tammy Duckworth. Duckworth has had a good relationship with agriculture in Illinois and has been supportive of the Renewable Fuel Standard and needed infrastructure improvements to our inland waterways.
Republicans will also continue to hold the majority of governorships across the country. Here are a few key statistics as of Wednesday morning:
- Senator Schumer (D-NY) is expected to replace Senator Harry Reid (D-NV) as Senate Minority Leader.
- Senator Inhofe (R-OK) steps down as the chair of the Senate Environment and Public Works Committee. Senator Barrasso (R-ID) will likely replace him.
- Committee Ranking Member Barbara Boxer (D-CA) is retiring and will likely be replaced by Senator Tom Carper (D-DE).
- House Appropriations Chairman Hal Rogers is term-limited and will likely be replaced by Rep. Frelinghuysen (R-NJ) or Aderholt (R-AL).
- We are not expecting changes to the leadership of the House and Senate Ag Committees.
Donald Trump’s campaign did not provide significant information on agriculture in the primaries or general election. Because of this, it is difficult to say what USDA priorities will be in a Trump Administration, as they did not make their positions well-known. He has vowed to rescind many of the regulations enacted by the Obama Administration, which could include the Clean Power Plan, the WOTUS rule, among others. Additionally, Trump’s anti-trade agreement message seems to have resonated well with many of his supporters. Look for a President Trump to either abandon the Trans-Pacific Partnership (TPP) or begin to negotiate a new trade agreement. He may also make efforts to change aspects of the North American Free Trade Agreement (NAFTA). Agriculture stakeholders should begin doing outreach to the new Trump Administration political appointees as they start to take their new positions.
Congress returns to Washington next week and will begin to address appropriations past December 9 and also hold leadership elections for the 115th Congress.
Some people think that the only busy times of the year are planting and harvest and the rest of the year farmers spend their glorious amounts of free time vacationing or tinkering with antique tractors. This may be true for some, but not the majority. Today is the tenth post in my one-year series which will give you an idea of a farmer’s workload throughout the year. Keep in mind that all farms operate differently and I am just providing one example of a year in the life of a grain farmer. There are several factors that contribute to the seasonality of the farm such as size and scale of the operation, crops grown, location, livestock, management style and general upbringing or personal work ethic! I hope this provides some insight to what versatile businessman farmers are.
Start at the beginning!
Harvest is in full swing! If you’re married to a farmer (like me), or have many farmer friends, you KNOW you won’t be seeing much of him or her this time of year. Even once they’re done cutting corn or beans, farmers are still up early and out late this month.
This year’s crop:
- Harvest: Combines are rolling through the fields with auger wagons following closely alongside. Grain trucks, grain carts, and semis are bumping down gravel roads. Wives, kids, or a spare hired man is following in the pick-up truck to help move equipment from field to field. Farmers are constantly moving during harvest. They don’t want the grain to get too dry before hauling it to the elevator, and they certainly don’t want a bad wind knocking a stand of corn down before they can get to it. Farmers have been investing blood, sweat, tears, and MONEY in this crop for the last 11 months and it’s time to cash in on the literal “fruits of their labor”.
- Money in the bank: September and October are busy grain marketing months. As the trucks roll across the scales at the elevator a farmer may choose to sell it immediately rather than storing it there. As you’ve learned in past posts, elevators charge a small fee to store grain in their facility. You can think of it as paying rent. A downside to selling it immediately, though, is that since there’s such an abundance of it available, the price the farmer is getting is typically lower in the fall. (Sometimes a farmer just needs some cash, though, or has sold it ahead for a better price).
- Manage Break-Downs: As mentioned last month, with all those moving parts there are bound to be breakdowns during harvest. Be it with combine, tractor, flat tire on a grain cart, an overheating truck, a jammed up grain auger or a miscalibrated dryer, breakdowns happen and then need to be dealt with in an efficient manner.
Next year’s crop:
- Looking ahead: With “this year’s crop” being hauled away, it’s time to implement next year’s game plan.
- Some farmers do fall tillage by working up the ground to break up plant matter and prepare the seed bed for next year’s crop, while others follow the “best management practice” of reduced-till, which leaves the ground intact, preventing soil erosion and compaction.
- Regardless of tillage decision, most farmers apply fertilizer and other dry products such as phosphorous and potassium (commonly referred to as P&K) and lime may be applied to fields. Some farmers may also apply liquid nitrogen in the fall, but The 4Rs of nitrogen management, per the The Fertilizer Institute’s 4R Nutrient Stewardship Program, recommends applying nitrogen as the crops need it:“By postponing a portion of the N treatment until the crop is better able to utilize the nutrient, plants take up the nitrogen more quickly and efficiently. That means growers get more from their fertilizer investment and fertilizer losses that can contribute to environmental concerns are lessened.”
- If farmers are using over-wintering cover crops such as cereal rye, it may be applied post-harvest, depending on what is being planted.
- Finally, this is the time of year winter wheat is planted in order to harvest the following summer.
Enjoy this beautiful season and be thankful for all that is sown, Happy Harvest!
Here in Illinois, the harvest is in full swing. Over in western Illinois, it seems as though there isn’t much left to be harvested. Most of the corn and beans are gone, and it seems like everyone can take a small sigh of relief…for now.
However, for me, I’m sad that it’s all coming to an end. Sure, I’m glad it’s over because that means my dad gets to enjoy a less stressful Dad’s Weekend at the University of Illinois with me, but the harvest is easily one of my favorite times of the year. The picture below is one that I shot coming home from the University of Illinois a couple of weeks ago. Sometimes we can take this harvest for granted, but if you look a little closer at the photo, there’s a story to tell. So here are five things about this photo!
- As I mentioned, this picture was taken on my way home from school. I noticed a few family members in the field and decided to stop by. My grandma was ready with a field meal (complete with homemade bread and cake… she doesn’t mess around when it comes to this stuff), and the sun was setting on a long and relatively warm day. I enjoy being able to come home from school and spend a little bit of time hearing about how everything is going!
- The grain cart has an orange and yellow triangle; this shows to the people driving down the road that it is a slow-moving vehicle. This cart takes our corn from the combine to the elevator. It is important to notice these triangles while traveling on the road and to drive cautiously. These people are feeding you!
- If we look at the sky, we see it is a perfect day for harvest. The clouds are covering the sky just enough to ensure the farmer has shade to take a rest, but the sun for them to remember why they do what they do. In the FFA, the sun is the token of a new era in agriculture. As more and more technologies are brought into the agricultural industry, this new era is becoming one of the greatest we’ve seen. However, it’s important to trust the agriculturalists who are making these great strides!
- The field to the side of the tractor and semi show the promise there is still more to go. Agriculture is an industry that will always thrive and produce. The field in the background illustrates the essence of harvest, the work that never ends in the life of the farmer.
- This picture most importantly shows hometown agriculture. I am thankful for having the opportunity to grow up in a town that is so heavily reliant on agriculture and for it being such an important industry to my family. The sense of community is only strengthened by the bond of agriculture, and for me, it is always exciting to come home and witness this first hand.
TPP stands for Trans-Pacific Partnership. The TPP creates rules and agreements for trade all over the world. The amount of tax on imports and exports and other regulations for countries are laid out in this agreement. A review of the effects that the TPP will have on agriculture in the United States can be read in full here.
2. What will the TPP do for United States Agriculture?
The implementation of the TPP will increase cash receipts for livestock. What this means is that the United States will trade more livestock products to other countries, increasing income from what we get from these goods now. This estimated raise in livestock exports pairs well with the expected decrease in the country’s trade of corn. This is because we will be able to keep that corn in the country and use it to feed the higher number of livestock that we are growing for trade. This use of corn is adding more value to the industry than it would if it was simply traded in bulk. Also, the overall farm income is expected to increase $4.4 billion for the country which is a very positive result for agriculture.
3. What will the TPP do for Illinois Agriculture?
As the deal increases cash receipts for the entire country, it would also do great things for Illinois agriculture. The chart shown explains that cash receipts for many Illinois products increase greatly with implementation of the TPP. This increase in income also comes with an estimated 960 jobs into the Illinois economy, according to the American Farm Bureau Federation. Corn is the biggest agriculture industry in Illinois and the exports from the country are expected to decline; however, Illinois is a perfect example of how that corn that is not being exported can be used to raise livestock. The TPP will also increase overall trade for other Illinois products such as pork, soybeans, and processed foods.
This trade deal is a big step for agriculture and the economy of the country. The American Farm Bureau Federation stresses the importance of the United States getting on board with the deal quickly. Other countries are ahead of the United States in making trade agreements that could help their economies.
There will soon be more news on the ratification of this in the United States.
Any questions? Ask in the comments!!
Illinois State University
Did you know we have a podcast section to our website? During planting and harvest season, we know you’re out in the fields and don’t have as much time to read, but you want to keep up with the news. So catch up and fill your time in the combine by listening to news updates and original industry updates from our office.