Down on the Farm

July 5, 2005

Last week I was on the farm in Illinois. I walked in the corn fields, and kicked at the dry soil. We are way short of moisture this year -- some six or eight inches. Surprisingly, the plants still look good, taller than me, a deep green color and ready to pollinate. We know from experience that if there is too much stress at pollination, the yield can be cut dramatically. So -- we're praying for rain.

I remember the first week in May when I was on the farm and I did my radio report from there. I closed by saying, "The crop is in the ground, and it's in God's hands now." How true that is.

Anyone that has been watching the grain markets of late are well aware of the uncertainty that we all live with in the farming business. Soybeans prices collapse a dollar a bushel in three days. Then the next week they try to recover. I don't think that any other business lives with as much uncertainty. All the so called experts say, "Hedge this. Hedge that." Sounds a lot easier than it is.

The markets are just trying to react to all the external factors. The weather is first and foremost. But don't forget trade issues. Any industry that exports almost one third of its production can benefit from a trade windfall or be hit by a trade tragedy. Just look at how the whole world closed the door on our beef when we found one "Mad Cow". It was a Canadian cow at that.

I almost forgot the huge unanticipated explosion in the cost of energy adding to our cost of operation. Nitrogen fertilizer, diesel fuel -- everything up. If we could have anticipated it, we would have contracted two years out.

The hog business has been heaven for almost two years. Just when we thought it would never be good again, it turned gang busters. But, we all know it won't last.

As I stood in the corn field, and later held a baby pig in my hands, I thought about the uncertainties of farming. And, then I thought about the excitement and challenges that the farmer faces. American agriculture -- the strength of our nation and the envy of the world.

Until next week, I am John Block from down on the farm.