Author: Jordan Shockley

Back in 2015, Extension specialists across the Southeast (many of our current SAT contributors) came together to address the decline in the farm economy, specifically declining commodity prices and increasing financial pressure. The resulting publication is a compilation of articles on topics including financial and risk management, marketing, farm management, trade, and stress management. The publication provides strategies for navigating financial difficulties, reducing risk, and identifying opportunities for growth even during downturns. While the publication is approaching ten years old, the core management strategies and concepts are still pertinent as we face a very similar farm economy today. 

Key Farm Management Strategies include:

1. Financial Resilience: Carefully managing debt and maintaining cash flow are key to building resilience.  Work closely with lenders to help monitor financial health and consider restructuring loans when necessary to preserve adequate working capital.

2. Cost Control and Efficiency: Reducing input costs, optimizing equipment use, and managing labor effectively can help improve profitability. Assessing operational expenses and cutting unnecessary expenditures are essential.  Even the smallest changes can add up.

3. Risk Management Strategies: Utilizing crop insurance, following an effective marketing plan, diversifying income sources, and engaging in collaborative farming can help mitigate financial risk. Exploring all available government support programs and financial assistance options can provide relief during downturns.

4. Market Adaptation and Diversification: Considering alternative crops, livestock production adjustments, or producing for specialty markets can help maintain income. Understanding market trends and adapting production strategies accordingly is vital for long-term sustainability.

5. Mental Health and Well-being: Economic stress can take a toll on farmers’ mental health. Seeking support, engaging with extension services, and maintaining a strong social network can help manage stress, depression, and other challenges related to financial strain.For a deep dive on all economic topics, including the farm management strategies above, the full publication can be found here: “Surviving the Farm Economy Downturn”.

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Shockley, Jordan, and Steven Klose. “Managing Through Tough Times.” Southern Ag Today 5(8.1). February 17, 2025. Permalink

Starting December 24, 2024, the EU will require all imported soybeans to be deforestation-free and traceable to specific fields. Archer Daniels Midland (ADM) and the Farmers Business Network (FBN) have launched a Deforestation-Free Soybean Program to meet this requirement. This EU mandate will affect all elevators selling soybeans to Europe, prompting additional verification platforms across the U.S.

For Southern soybean producers, selling soybeans to ADM may require enrollment in ADM’s Deforestation-Free Soybean Program via the FBN website/app by June 1, 2024, and the submission of field boundary data by July 15, 2024. Enrollment is free, and by submitting field boundary data, FBN will use satellite imagery to verify that the soybeans were grown on land not deforested after December 31, 2020. Table 1 lists the ADM locations across the U.S. participating in the Deforestation-Free Soybean Program, with southern locations in Arkansas, Kentucky, and Tennessee impacted.

What constitutes not deforested? A field where more than 1.24 acres of trees were forested (including fence rows). Early indications also suggest that some ADM locations will only accept deforestation-free soybeans, albeit at a premium. ADM is offering up to a $0.15/bushel premium if farmers enrolled in the program and an additional $0.05/bushel if enrolled by May 1, 2024, and field boundary data submitted by June 1, 2024. 

For more information on enrolling in the program, please visit ADM’s re:source website here and contact your local ADM elevator for specific requirements. If you choose not to enroll in this program, selling to a different elevator could incur additional costs, particularly if your typical ADM site does not accept unenrolled soybeans. Understanding hauling costs and local basis when delivering to a different market is important, as it can impact fuel, labor, other operating costs, and marketing strategies. Contract options may be limited, and local basis could be affected.

The push for non-deforested beans may affect local markets and grain marketing decisions in the future. Similar premiums will likely be offered for other sustainable agriculture efforts, such as carbon sequestration. These changes provide opportunities but also challenge producers to adapt quickly to evolving market conditions.

Table 1. ADM locations participating in the Deforestation-Free Soybean Program

State	ADM Locations
Arkansas	Helena
Illinois	Creve Coeur, Curran, Decatur, Farina, Gulfport, Havana, Hennepin, Hume, Mendota, Mound City, Mt. Auburn, Niantic, Ottawa, Ottawa South, Quincy, Sauget, Spring Valley, Taylorville, Tuscola
Indiana	Evansville, Mt. Vernon, Newburgh, Rockport
Iowa	Burlington, Clinton
Kentucky	Henderson, Livingston Point, Silver Grove
Missouri	Center, Charleston, Montgomery City, New Madrid, Novelty, Shelbina, St. Louis
Ohio	Toledo
Tennessee	Memphis

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Shockley, Jordan, and Grant Gardner. “Management and Marketing Implications of Deforestation-Free Soybeans in the Southern Region.” Southern Ag Today 4(21.3). May 22, 2024. Permalink

Have you ever found yourself wishing there was an app for something while using your smartphone? You’re not the only one. The development of mobile apps for various needs is happening at a rapid pace. Why? According to comScore, 89% of all mobile minutes are spent on mobile apps. The top two categories for mobile app users are social media and news/information. In agriculture, there are mobile apps available that deal with an array of topics. CropLife puts out a list of the best agriculture apps every year. The majority of those mobile apps, and the most popular, are often agronomic or weather related. In the economic space, most of the available apps provide pricing information for marketing.  However, there are a host of available apps that can assist with farm management.

I often get asked, “What is the best farm management app out there?” My colleague had the best answer to that question, “the best farm management app for farmers is the one that you will actually use!” Each app serves a different purpose and provides a different user experience.  We’ve recently created an extension publication that outlines all of the mobile apps we could find that help farm management and their availability on Apple or Google smartphones (publication found here). If you want a more detailed description of each app, you can find it here. I encourage you to download several apps and try them to see which works best for your specific situation or need.

As we begin 2023, high path avian influenza (HPAI) continues to devastate the poultry industry across the U.S.  While many experts anticipated a summer lull in outbreaks and maybe even a disappearance like the 2014/15 HPAI outbreak, that was not the case. Since the first case back in February 2022, there has been at least one case of HPAI in a commercial poultry operation in each month in 2022. The total number of birds affected by HPAI in 2022 totaled 57.82 million, with 206 commercial flocks and 409 backyard flocks impacted. To put that into perspective, the HPAI outbreak of 2014/15 had 232 confirmed cases, with over 50 million birds affected. However, most of the 2014/15 outbreak was concentrated to egg layers and turkeys grown for meat in Iowa and Minnesota. The map below illustrates that in 2022, HPAI affected all but three states across the U.S. Most birds affected by HPAI in 2022 were commercial table egg layers, accounting for 75% of the total bird loss (43 million birds). While the southern region is known for broiler production, four of the top ten egg-producing states are in the southern region (Texas, Georgia, Arkansas, and North Carolina). For 2022, a total of 2.7 million birds were impacted by HPAI in the southern region, the largest case being a commercial table egg layer operation.  

It is anticipated that we will have continued cases of HPAI across the region. The most recent outbreak was in Tennessee on December 28^th in a commercial broiler breeder operation. Therefore, you must continue to enforce strict biosecurity measures to manage and protect your flocks. While the federal government provides financial assistance for depopulation, cleaning, and indemnity payments for the birds directly impacted, there are currently no insurance products or federal support from a loss of revenue due to delayed placements and loss of future flocks while houses are cleared of HPAI. Therefore, you should have a management plan in place in for an HPAI outbreak.  

Resources:

USDA-APHIS. “2022 Confirmations of High Pathogenic Avian Influenza in Commercial and Backyard Flocks”. Available online: https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/animal-disease-information/avian/avian-influenza/hpai-2022/2022-hpai-commercial-backyard-flocks

Shockley, J.M., T. Mark, K. Burdine, and L. Russell.  “Financial Implications from Contracting Avian Influenza in a U.S. Broiler Operation”. Journal of Applied Farm Economics 3, no. 1 (Spring 2020). Available Online: https://docs.lib.purdue.edu/cgi/viewcontent.cgi?article=1034&context=jafe

Author: Jordan Shockley

Associate Extension Professor

jordan.shockley@uky.edu

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Shockley, Jordan. “Summary of High Pathogenic Avian Influenza in 2022.” Southern Ag Today 3(1.3). January 4, 2023. Permalink

While some states across the southern region have strict environmental regulations on applying broiler litter to farmland, other states can apply year-round. Fall application of litter is a common practice by some producers due to wet soil conditions in the Spring, lack of time to spread litter near planting, and litter availability in the spring vs. the fall.  However, there are economic consequences to Fall application of broiler litter. Applying broiler litter in the fall, fallow ground will suffer from ammonium volatilization and leaching, resulting in little to no nitrogen come spring. Therefore, the economic value of spring application is higher compared to the fall application on fallow soils. Ammonium volatilization and leaching can be avoided in the fall if broiler litter is applied to cropland with a planted cover crop.  

Regardless of when broiler litter is applied, the nutrient content of litter varies depending on in-house management strategies and feed mix. In February, I wrote an article illustrating the range of broiler litter nutrient content sampled in Kentucky (article found here). The average “as received” nutrient content of broiler litter was 50 lbs of nitrogen (N), 56 lbs of phosphorous (P₂O₅), and 47 lbs of potassium (K₂O) per ton. Using this nutrient content (assuming your soil tests indicate the need for P₂O₅ and K₂O) and current fertilizer prices of $825/ton for urea ($0.90/lb N), $930/ton for DAP ($0.66/lb P₂O₅), $857/ton for potash ($0.71/lb K₂O), the economic value of broiler litter applied in the fall to fallow cropland is $65/ton. Given the variability in the nutrient content of broiler litter, Figure 1 illustrates the fall value of broiler litter applied to fallow cropland across 740 litter samples at current fertilizer prices. If broiler litter is applied to cover crops, the value increases to $88/ton. Both fall application values have increased compared to last year. Fall broiler litter values are up 20% compared to 2021 and have more than doubled since 2020.  

If litter availability in the spring is a concern, stockpiling litter purchased in the fall can be an option if local, state, and federal regulations allow. Producers can expect minimum nutrient loss for spring application with the correct storage techniques and a properly staked litter pile. If the same commercial fertilizer prices hold, the average broiler litter would have a value of $92/ton if properly stored and applied in the spring. As illustrated, broiler litter’s value varies based on application timing, nutrient content, soil test data, and commercial fertilizer prices. It is critical to measure boiler litter and understand the economic and environmental consequences of fall vs. spring management strategies.  

Figure 1. Variation in fall boiler litter value applied to fallow cropland given current commercial fertilizer prices and 0% N, 80%P2O5, and 100% K2O plant available nutrients (n=740)

Author: Jordan Shockley

Associate Extension Professor

jordan.shockley@uky.edu

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Shockley, Jordan. “Fall vs. Spring Application of Broiler Litter.” Southern Ag Today 2(48.3). November 23, 2022. Permalink