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The early returns for wheat harvest are coming in and unfortunately are not looking good in a lot of areas. The market has taken note as prices, particularly on the Kansas City Board, have been up sharply the past few days.
Business writer Jim Stafford, writing for the Oklahoman, captured the sentiment in winter wheat country pretty well:
The price of wheat has risen dramatically in the past two days, topping
$5.50 per bushel on the Kansas City Board of Trade, pushed into territory
that would make Oklahoma farmers giddy if not for one not-so-minor glitch.
Many producers will have little or no grain to sell this summer, especially
in the normally heavy grain producing area of north central Oklahoma.
Freeze damage, disease and late-season storms combined to wipe out much of
the wheat potential in the three-county area of Woods, Alfalfa and Grant
counties.
We’ve had a number of question come in today regarding crop insurance from those with revenue based policies. The table below is a useful reference, and we hope is helpful for those of you that are feeling the sting of a short crop. Hang in there.
The Success Gene, is it Fact or Fiction?
Many have talked about certain people and referred to them as possessing a “success gene” in explaining why they succeed or fail.
Well, there is a recently published study conducted by the University of Bonn, Germany and the Institute for the Study of Labor that suggests there is a success gene.
The study indicated that some people are genetically programmed for success while others are programmed for failure.
The difference? Basically is boils down to two factors.
First if your parent’s were people who were willing to take risks most likely you will be.
We all have to take risks to get ahead. It’s that simple. For the investor who is a non risk taker and puts his or her money in FDIC backed CD’s the return generally does not exceed inflation and one loses wealth over the long run. Conversely the stock or land market investor has done far better off in the long run. However, they have taken greater risks.
Risk taking parents generally raise risk taking children. The best example I can think of is a Carroll County, Iowa family I have known for 20 years, although both parents have passed away, most if not all of the children are very successful. The theory holds.
However risk taking does not mean the “river boat gambling” type. I would rather use the analogy of the mountain climber. He or she takes risks but they are calculated risks understanding that certain skills are needed and procedures and rules need to be strictly followed to reach your goal.
It’s the same in business. Taking excessive risks can in bankruptcy, but taking reasonable risks will leverage your time, talent and resources.
I often refer to risk to reward as a teeter totter. If the potential risk you are taking is not off set by a reasonable reward then what you are contemplating in a farm purchase, building expansion, management practice or new technology may not be worth the risk.
The second success gene identified by the University of Bonn study which included 3600 parents with children age 25 or older showed successful parents have an ability to trust others and they will more than likely raise children who will also be trusting people.
Once again judgment is involved here and being gullible will not make you successful but the study indicated to get ahead you need to be a trusting person.
This makes sense. How many farmers do you know who are at both ends of the spectrum? Some get along with a wide variety of people and others have difficulty getting along with anyone. Then look at their financial record of success.
The ability to get along with a wide variety of people will become a larger factor contributing to farmers’ financial success as we deal with more landlords, more employees, lenders, vendors and others.
Thanks and have a great spring planting season.
-Moe Russell, Russell Consulting Group
A personal highlight for me over the last couple days was the opportunity to meet and talk with Jim Hershey. Jim works with the American Soybean Association and is Director of the World Initiative for Soy in Human Health (WISHH).
One of the projects he’s currently working on is the World Soy Foundation whose mission a dedication to “sustainable nutrition for all.” It’s a philanthropic venture that was hatched by a group of producers.
I’ve heard and discussed a lot of things with a lot of people this week, but a comment Jim made to me is one that has stuck with me–and I suspect it will for some time to come. Discussing the large percentage of children internationally that grow up malnurished, experience stunted growth, and show up to school so hungry they can’t possibly concentrate or learn. “We know the answer,” Jim suggested, “Once nursing ends kids just need a little protein.”
As simple as that comment seems it rings true on a multitude of levels. We’ll discuss those in more detail when time allows, but one thing his comments refocused me upon is the reality that the American Farmer feeds the world. It’s easy to lose sight of that–and just how important it is. It’s easy to get caught up in the day to day operational issues of our own farms, the challenges that volatile markets pose, the difficulties of profitably operating our businesses–and lose sight of where our products ultimately go. And, moreover, what our efforts, properly directed, can accomplish–providing protein for one.
The ASA has taken on a project of immense proportion. We’ll be interested to see how the project progresses and will stay in touch with Jim to see where we might be able to contribute. If you have ideas let us know.
While Commodity Classic runs through noon tomorrow (Saturday) yours truly is on his way out of town tonight.
(At least I think I am. It’s 10:09 PM and my plane hasn’t yet shown up from Minneapolis. I hear it snowed there . . .)
Been a little tied up taking in all the Classic has to offer so post have been light. I’ll give you a run down of some of the highlights until my plane shows up–and more to come once I land.
Getting settled into the media room here at Commodity Classic and have already seen some familiar faces.
Things get kicked off in earnest later this afternoon as the trade show officially opens at 4:00 PM. We’ll get a sneak peak at 3:00 and plan to hit the halls before the crowds arrive. The folks at the registration desk suggested they expect around 4,000 people through the doors over the next three days–which I believe might be there second largest crowd ever.
Apparently I’m not the only one seeking warmer weather here in Florida.
More posts later.
Did you know Commodity Update customers run the world?
Maybe I’m exagerating a little, but a couple of them are pretty prominent at this week’s Commodity Classic. We’re proud to count both Ken McCauley (President of the National Corn Growers Association) and Eric Niemann (Chairman of the United Soybean Board) as Commodity Update customers. More than that, they’re both farmers from Kansas and (though I better check my facts on this one) I think K-State Wildcats which will make my Dad proud.
Both were early adoptors of Commodity Update’s technology and why not? They’re busy farmers just like you.
Ken and Eric are both here in Tampa this week so I’m looking forward to seeing them and will let you know what they’ve got to say about the state of Agriculture in 2007.
