STRAIGHT FROM THE HORSES MOUTH

Duane A. Lienemann,

UNL Extension Educator,

Webster County February 18, 2011 Edition One of the most often asked questions in my office this past year and I am sure in the future months is rental values. I am sure we will see some changes from last year’s figures, but this year’s UNL Land Value and Rental Rate document won’t be out for about another month. When the data is compiled, you should be able to get the information sheet at http://agecon.unl.edu/cornhuskereconomics.

I would guess that it will be around the middle of March, so keep checking the website. I will probably do a report on it when it comes to our office, so if you wish you can wait till then. While you wait for those figures to determine your rental costs, I highly suggest that you work on some production budgets. With these prices and elevating input costs, we as producers need more than to ever be good record keepers, and be on top of our production enterprise budgets. That, I think, is a “necessary evil” as many people declare it to be. Budgets can help determine your future expenditures, marketing plans and much more. It can be a little daunting, but UNL Extension may be able to help. Each year our IANR Ag Economists put out some sample budgets and even tools that can help you in that process. I suggest that you not only make out some budgets but use the tools that are there to help you. UNL Crop Production Budgets: The 2011 UNL Extension Nebraska Crop Production Budgets (EC 872) are now available online at http://www.ianrpubs.unl.edu/sendIt/ec872.pdf.

In all, the budgets cover 50 production systems. The purpose of these budgets is to give producers an idea of the approximate costs they will incur for 2011 and allow them to fine-tune the information to their operation. For example, if producers have already bought seed for 2011, they can use the column provided to put in the actual cost of the seed. They can do the same for fertilizers and herbicides that they have already purchased or pre-paid. The budgets include average costs, based on statewide surveys taken in September. Of course with the volatile markets and economic climate, some prices may have changed slightly since then so UNL specialists advise to use known costs whenever possible to customize their individual budgets. Once a producer knows their cost of production, they can look at market prices and see where they may be financially – profit or loss. Individual budgets are available on the Extension Publications website and eventually Excel spreadsheets will be posted to the site to make it even easier. The 50 budgets are broken down by crop including: alfalfa, corn, dry bean, grain sorghum, grass hay, oats, pastures, millet, sorghum-sudan, soybeans, sugar beets, sunflowers and wheat. On top of that, each budget consists of five sections: system description, representative field operations, materials and services, operations and interest, and overhead costs including real estate taxes and opportunity charges. Tables of power, machinery, labor and input costs are also included. Budgets are presented in a worksheet format and include a column for users to input their own data to create a customized budget for their operation. National FFA Week: As a long time ag teacher (retired) I know that the week of George Washington’s birthday has, since about 1947, been designated by the FFA organization as National FFA Week. This year it falls on this week -February 19-26. During the week, individual chapters will initiate events to promote FFA and agriculture in their classrooms and communities. Events include community service projects, educational lessons for elementary students and promotional programs for students, teachers, and alumni. I always enjoyed the week and especially watching the activities that our youth came up with to celebrate the special occasion. Each year’s group came up with a little different slant, but always they celebrated the great organization that they belonged to. It helped put the FFA in front of the public. The FFA is a national youth organization of almost 525,000 student members - all preparing for leadership and careers in the science, business and technology of agriculture - as part of around 7500 local FFA chapters in all 50 states, Puerto Rico and the Virgin Islands. I think I even recall the FFA mission, “To make a positive difference in the lives of students by developing their potential for premier leadership, personal growth and career success through agricultural education.” Their teachers help make that happen. I am glad to see there is a National Teach Ag Day during the National FFA Week. As I understand it “Infinite Potential” is the theme of this year’s National FFA Week observance. Through this theme members are encouraged to envision, discover and achieve their potential within their communities. I can tell you, from personal experience, that FFA members have that “Infinite Potential” and have potential to do great things even beyond their FFA careers. I have witnessed it. I want to wish all of our FFA Chapters and their members a fruitful and successful National FFA Week. I, for one, am very proud of what you do and what you stand for! The Blue and Gold rocks!

LB 305 and LB 306: I know that a lot of you don’t spend too much time watching what comes through the docket of our state unicameral, or probably even less on the Federal level. I do want to spend a little time talking about a couple of state bills that I think are important for Nebraska and Nebraska agriculture. The first bill, LB 305, is set to create a state meat inspection program/agency that would meet or exceed the USDA inspection levels for all kinds of meat, including horses and non-traditional meat animals. This would basically open the possibility of horse slaughter here in Nebraska. A companion bill, LB 306, requires that entities that would prohibit horse processing be financially responsible for the care of unwanted horses. I will speak towards this more in next week’s column. Enjoy this nice weather while it lasts! The preceding information comes from the research and personal observations of the writer which may or may not reflect the views of UNL or UNL Extension. For more further information on these or other topics contact D. A. Lienemann, UNL Extension Educator for Webster County in Red Cloud, (402) 746-3417 or email to: dlienemann2@unl.edu or go to the website at: www.webster.unl.edu/home