Archive for May, 2010

Machinery Pete: Talking ATVs and jobs

Monday, May 31st, 2010

Interesting timing.

Last Saturday (May 22nd) I stood at a large farm retirement auction in southeast Minnesota shooting video of a 2006 model Polaris Ranger 700 twin EFI 6×6 ATV with only six original one owner hours on it as it sold on the auction.

I was most curious to see not only what this ATV sold for, but also the whole vibe of the auction crowd in regard to this Polaris ATV. I’ve been quantifying sale price data on all types of equipment for 20+ years now. Here’s a piece of equipment for sale, it went for X. Easy. But not as easy to quantify human emotions and what role they play when it comes to assigning value.

Two days before the auction last Saturday Polaris announced they would be closing their parts plant in Osceola, Wisconsin, and moving the operation to Mexico. More than 500 jobs in the small western Wisconsin community will be lost. The news was well publicized here in southeast Minnesota, not far from Osceola, WI.

Hmm, I wonder how this Polaris Ranger 700 ATV will sell on the auction now?

Turns out very well. $8,500 is what it wound up going for. Pretty impressive for a four-year old machine, even with only six hours on it. More interesting to me was observing the huge auction crowd. This Polaris ATV was clearly the most talked about item on the sale. The crowd jammed in around the ATV as Todd Houghton’s auction truck rolled into position.

I heard no one, repeat, no one, talking about job layoffs.

All I heard was: “what will it sell for?” “what’s a new one cost?” and “have you seen one that nice?”

I’m 44 years old. When I stop to think about how much has changed in the last 20-30 years I’m amazed. Like it or not, it’s a global world and we’re living in it. Jobs have been shipped out of the country, overseas and all over the world. Got a question on your cable bill or your credit card statement? Call that 800 number and the person you talk with is probably in India.

Nothing against India, China, Mexico or any other country. In fact, hats off to hard working folks there for coming up with new business options and solutions. The drive to produce goods and services more cheaply is never ending. I understand the business end. Sales and profits are down. Costs need to be shaved.

But still.

Every time I read about corporate layoffs and job shifts to other countries I wonder if there isn’t a different path available, one not dictated by Wall Street. A way forward that places more emphasis on employees and the true value they represent to any business. Makes me think of this letter to the Editor in the Minneapolis Star Tribune last month from Marvin Windows and Doors President Susan Marvin, the different path forward I’m talking about:

    Polaris is working to try and help its 500-plus employees at the parts plant in Osceola, WI. Some jobs may shift to other plants here in the U.S., in Spirit Lake, Iowa and also in Roseau, Minnesota. There are also efforts to try and sell parts of the Osceola operation to suppliers, which could then keep a good number of jobs at the Osceola plant.

Here’s hoping those efforts are successful.

Louise Gartner: Wheat paces sideways

Tuesday, May 25th, 2010

Wheat markets looked like they did a lot of nothing last week, barely moving sideways in a very narrow trading range and ending the week about unchanged. While price action didn’t give us much to talk about, the mere fact that wheat held at the contract lows as were heading into harvest did get some attention.

While much of May has been spent in a downtrend, the bearish momentum appears to be waning in the last week or so. Spillover support from corn has added an element of support to wheat and has plenty of people talking that wheat could see more buyers step up if we get more weakness. Chinese corn futures have steadily moved higher as dry conditions in their major corn producing region have caused planting delays. The subsequent purchases of US corn by China, with rumors of much more in the works, have created a great deal of buying interest in the corn complex.

In the last few weeks, we’ve also heard talk of southern Plains cattle yards looking at using wheat in their rations, which makes corn rallies all that more important to wheat from a price competitive standpoint.

On the flip side, harvest is looming and will likely be adding significant pressure to wheat, unless the rains keep coming. The US dollar continues to push higher with the world economic stress and uncertainty and that will continue to subdue exports, especially against the Europeans who have seen their currency sharply lower against the dollar and their exports rise much higher than expected as a result.

While we are gearing up for the start of winter wheat harvest here in the US, and feeling comfortable with yield prospects, the rest of the Northern Hemisphere is still prone to weather issues. Europe jumped onto the radar recently as France, the EU’s largest wheat producer, has experienced very hot and dry conditions and is already lowering yield prospects. Eastern Europe still looks generally good, but as we move further east into the spring wheat areas of Russia and Kazakhstan, we see very dry conditions there as well. China has also seen much warmer and dryer than normal conditions in its spring wheat region.

While spring wheat might not be faring so well in other parts of the world, here in the US most spring wheat regions have had abundant moisture and plantings have been on schedule. This could be the making of another low protein spring wheat crop here in the US which could make for some very strong premiums down the road, but that remains to be seen.

In the Southern Hemisphere, Argentina has reported that they will export 2-3 MMT of wheat this marketing year after being absent from the export market the last few years. Australia is looking at very good planting conditions as weekend rains brought plenty of moisture to their western growing regions, the largest producing area of the country. They, too, will have plenty of wheat for export and their currency has also dropped sharply in the last few weeks.

For now, it looks like wheat will follow the normal seasonal pattern and continue to slip lower as harvest progresses. At the same time, we have to very watchful of weather in the Midwest; if the US corn crop gets into trouble, price rallies there would certainly be supportive to wheat as well.

This publication is strictly the opinion of its writer and is intended solely for informative purposes. It is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. Futures and options trading always involve risk of loss. Past performance is not indicative of future results.

It’s almost corn rootworm time, entomologist says

Monday, May 24th, 2010

This year’s corn rootworm hatch — at least in central Illinois — may be right around the corner, says University of Illinois Extension entomologist Mike Gray.

Degree-days is the best way to estimate when the rootworm hatch will happen; Gray says about half of the hatch happens when 684 to 767 degree-days have built up since the first of the year.

Gray says the state of Illinois shows between 400 and 600 degree-days since January 1, with the latter number more common in the central part of the state and lower numbers further north.

The timeframe for the rootworm hatch (which has not been reported in other Corn Belt states yet), if it comes a little later this summer, may prove the efficacy of Bt corn against the pest, Gray says in a university report.

“If the hatch occurs later than predicted over the next several years, we may begin to build a body of evidence that suggests we may be selecting for corn rootworm larvae that hatch later due to the extensive use of Bt corn hybrids,” he says.

FFA leaders working to change the face of agriculture

Friday, May 21st, 2010

Krista Lottinville and Samantha Werner have their sights set on agriculture. As participants at the first annual Women Changing the Face of Agriculture career extravaganza sponsored by Illinois AgriWomen in Bloomington, Illinois, last month, their enthusiasm was contagious.

The 2 University of Illinois seniors were one step ahead of the other 125 participants that day. Both already had completed their majors and accepted jobs. Kristin, an agriculture business major, is working at Illinois Farm Bureau as a manager trainee. Samantha is using her degree in agriculture farm management to train for a position in research, sales, and production at Pioneer Hi-Bred International.

“My dream job is one in sales where I can spend my day outside, talking with farmers,” Samantha said.


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The 2 were there to show their support for career opportunities in agriculture for women. The event, held at the Interstate Center, drew from high school FFA students, Post-Secondary Agriculture Students (PAS), and other college and university students.

“I’m excited to be here today,” said Ellen Reeder, state FFA reporter. “In the future I plan to attend the University of Illinois and major in ag communications with a minor in crop sciences. My dream job would be to work for an ag company in public relations and advertising.”


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They took advantage of the opportunity to meet 95 women working in an array of agricultural careers. During break-out sessions, these mentors shared with them the education requirements for their jobs, internship opportunities, and their perspectives about the long-term outlook for agriculture and for women in the field.


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“As we grow up, we tend to seek career tracks that we’re familiar with,” said Penny Lauritzen, an organizer and Illinois AgriWomen member and a Certified Financial Planner at Farm Financial Strategies, Inc. “Agriculture represents 17% of our nation’s gross national product, and provides 1 in every 6 jobs. As future job-seekers, it’s important for these young women to learn more about the potential opportunities so they can make accurate decisions about their future.”

Next year’s Women Changing the Face of Agriculture extravaganza will be held March 4, 2011, at the Bone Student Center, Illinois State University in Bloomington, Illinois.

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Late Spring Plantings and Insects

Thursday, May 20th, 2010

As was the situation last year, we have seen an increase in the frequency of rainfall in Ohio the past couple of weeks, and many fields still need to be planted. We published an article at this time in 2009, and realized it was relevant again this year.  Because of the continued rainfall and what will be late plantings for many fields, a portion of the corn and soybean crop will be relatively short in height and growth going into late May and early June. However, the insect populations are somewhat on schedule. Growers should be aware that the presence of smaller plants can intensify the injury that can occur. Many of our thresholds relate to the size of the plants, and thus, later planted crops will be at a higher risk of economic damage. On corn for example, the black cutworm threshold, 3% or more plants cut or tunneled and larvae still 1 inch or less, is for plants in the second to sixth leaf stage. Some of the corn will not even be reaching the second stage for a few weeks considering some of it is not yet emerged or even planted. On soybean, slugs, as well as bean leaf beetles, are more damaging to plants that are recently emerged with unifoliate leaves just opening. We would suggest that growers check their late planted fields as they begin to emerge to prevent unexpected injury from insect pests that would not be of much concern if crops had been planted earlier.

Indians flock to marry and shop on lucky day

Monday, May 17th, 2010

Tens of thousands of Indian couples tied the knot Sunday, one of the luckiest days in the Hindu calendar.

“There are 50,000 weddings happening today” in Mumbai alone, said wedding planner Jarret D’Abreo of Marry Me.

Marry Me is working only one, but is consulting on seven others, Marry Me’s Candice Pereira told CNN.

“It is impossible to find wedding vendors or venues at short notice for a highly auspicious date. The wedding that we are working on has been booked eight months in advance,” explained Pereira, the company’s creative head and co-founder. “We have had a lot of couples seek our help to secure venues and other vendors at the last moment.

“Also, most other vendors that we work with have in excess of five functions today due to it being a highly auspicious date,” she said.

There are only a few lucky dates per year in the Hindu calendar. Sunday’s is called Akshaya Tritiya.

“All the stars are aligned during this day. Whatever offerings and work you do on this day will go right. It’s one day of the year which will bring immense good luck,” Indian astrologer R.K. Sharma said.

On Akshaya, “none of the bad karma or defects in your birth chart matter. It’s a very good day to make a new start to life,” he said.

The exact date of the festival is based on the alignment of the moon, the stars and the planets.

It marks the date “the Hindu god Lord Parasurama (an incarnation of Lord Vishnu) came to earth in the form of a human being,” the astrologer said, invoking a Hindu concept that has been widely appropriated in the Internet age — the avatar. In Hinduism, the word refers to the earthly incarnation of a god.

“Whatever is celebrated during this day — be it purchasing a car or a house or gold or even getting married — brings good luck and that effect is multiplied. It’s the most auspicious day of the year,” Sharma told CNN by phone.

The festival is driving up sales in India’s jewelry shops, one merchant said.

Vummidi Bagaru Jewellers had about twice as much daily trade as usual, and could reach three times as much, partner Jiphendra Vummidi told CNN by phone from Chennai.

People made plans in advance to make their purchases on Akshaya, he said.

“They’re purchases they wanted to get for a wedding or an occasion — jewelry predominantly, but bullion coins are also being bought,” he said.

“It’s a day when you could do anything good and it’s supposed to help you do that good through the year,” he said of Akshaya.

“It used to be that people used to feed people on that day. Now with the economic boom, people have more money and they prefer to buy gold as security in a crisis,” he said. “They feel that if they buy gold today, they will have the capacity to buy gold this year.”

Gold is hovering around record prices.

Vummidi said that was part of a supply-and-demand effect on sales and prices around Akshaya.

“They are not buying as much as I think they would have bought if the price was stable,” he said. “Most people in the (gold) trade know about this day and feel that prices could be up for this day and then they could fall.”

Big stores ran full-page advertisements in newspapers, inviting customers to go on a buying spree on the lucky date.

One newspaper ad even offered Hindu hymns as ring tones on mobile phones.

But this is no free service. At the bottom of the ad, cell-phone companies listed prices for ordering holy downloads.

CNN producer Harmeet Shah Singh in New Delhi said he got unsolicited text messages on his phone from businesses and advertisers ahead of the festival.

One sample read: “This Akshaya Tritya bring home prosperity! Book your apt (apartment)…”. The message included a chance to win a gold coin on a booking of a home worth at least 1.6 million rupees ($34,000).

There are about a billion Hindus in the world, experts estimate, making it the third largest religion after Christianity and Islam.

Program helps women farmers network, succeed

Friday, May 14th, 2010

MISSISSIPPI STATE – Farm women with a passion to succeed are increasing their business knowledge and skills through the Mississippi Women in Agriculture program.

The program is sponsored by Mississippi State University and the Southern Rural Development Center. Funding is provided by the Southern Region Risk Management Education Center and the U.S. Department of Agriculture’s National Institute of Food and Agriculture. It is specifically designed for farm women and is inspiring participants to step up to the forefront of agricultural operations.

“The program has meant a lot to me in the last couple of years. It has given me the self-confidence that I needed to take an idea and develop it into an agritourism business that we now have on our farm,” said Jan Holley, a row-crop farmer from Fulton. “Not only has it given me the self-confidence I needed, but it has given me a network of people I have been able to call upon.”

The program has a variety of opportunities for women who wish to gain business knowledge, increase productivity or even start a new business. In Mississippi, women play a significant role in farming operations, either as the primary operator or as the spouse of a farmer. Therefore, women’s involvement in the decision making and financial management of operations is critical.

Participants said the program has helped them maximize their roles in business management, which has been instrumental to their success.

The program provides opportunities for women to interact through educational seminars and an annual state conference.

“We cover information on human resource development so individuals can learn to work better with their employees and business associates,” said program coordinator Sonia Hancock. “We also include how to prepare for borrowing money from financial institutions, how to manage risks encountered in farming operations and help participants review their estate plans.”

Women involved in the program say it has helped them prepare for the expected, and most importantly, for the unexpected in the agriculture industry.

Sandra Berryhill, a farmer in Franklin County, knows better than most about how the unexpected can happen at any time. She turned to the program after her husband passed away three years ago. She wanted the skills to better manage her farm while also taking care of her seven children.

“The program taught us a lot about how to acquire loans, keep records and manage credit scores. We also learned about farm credit and estate planning,” Berryhill said. “Whether or not you have children, you need to think about farm succession, because you’ll need a plan to continue your farm.”

Berryhill said she now has a better understanding of why it is important to be a good steward of the land.

“When my husband got sick, he told me, ‘I don’t have anything to give you but this place. But if you take care of this place, it’ll take care of you,’” she said. “So that’s what we try to do. I tell our children we have to be good stewards of what we have and we need to work together to keep it going.”

Hancock said women farmers have a growing interest in computer programs and other technology for business management.

“Participants want computerized record-keeping programs, so we have offered instruction on the QuickBooks record-keeping program,” she said. “In addition to that, they want to learn to build and manage Web pages and blogs to promote their agricultural products.”

Poultry grower Delean Robertson of Pike County said using updated technology is useful in managing her poultry operation.

“It was what I needed to help our farm become more productive and to know what areas we can improve in,” Robertson said. “The technology helps me keep better track of inventory, what we’re doing, when we’re making improvements, when we’re having glitches.”

Robertson said she now feels more qualified to support her husband and provide her input on managing the farm. Being around women also creates more opportunities for networking and communicating new information.

“We tend to be more vocal than men, and we know what we are talking about with each other,” she said. “It just feels like you can get more information from other women.”

Robertson said the biggest reward has been becoming a knowledgeable businesswoman and producer.

“It’s really fulfilling to know that you can work with your hands to produce something, to make something grow, to have something that makes a difference,” Robertson said. “It is supplying a need in our economy and in our society, and it’s very rewarding.”

Robertson said her experience with MSWIA will be useful in the future as she expands her farm.

“If you’re a woman and you’re interested in agriculture, no matter the role you play in the field, be it a wife, a daughter, an owner or consultant, you should get involved,” Hancock said. “There is so much information to be gained, and networking with women who have the same interests is so important.”

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Friday, May 14th, 2010

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