Archive for the ‘ Farming ’ Category

Harvest 2020

As an eventful, and often times stressful, 2020 crop season comes to an end with the pandemic and Covid-19 occurring in our world, it appears the harvest season is going extremely well with excellent harvest conditions.

  • Farm Safety
    • Please check to make sure all safety equipment (i.e. safety shields, fire extinguishers, etc.), are in place and in working order.
    • Be especially careful and diligent around any moving equipment and/or parts. Don’t assume anything as things happen faster than we expect.
    • Make sure to use your flashers and be aware of your surroundings.
    • Wear protective and reflective clothing.
    • When working around and in grain bins, use appropriate safety equipment and if at all possible, have a second person around in case of an emergency.
  • Crop Insurance
    • Be aware of your crop insurance coverage and contact your agent as quickly as possible after harvest to turn in yields in case of a claim.
    • Crop insurance yield claims need to be filed within 10 days of harvest completion.
    • Please keep load records of your yields for each farm and mark your bins if you are comingling production from several farm units.
  • Farm Finances
    • Did you have a marketing plan built into your 2020 cash flow projection and are you adhering to it?
    • Do you remember/know your break-even commodity prices from the cash flow completed this past year with your lender?
    • Should you be meeting with your lender to review your spring cash flow plan to see how it relates to current marketing opportunities?
    • Have you signed up for round 2 of the Coronavirus Food Assistance Program (C-FAP 2) which had a beginning signup date of September 21, 2020 and runs through December 11, 2020? Note, C-FAP 2 has expanded coverage for additional agricultural commodities so make sure and review C-FAP 2.
    • USDA has announced that dairy margin coverage program enrollment for 2021 opened up as of October 13, 2020. (DMC program).
    • USDA has announced that October 30, 2020 is the deadline to sign up for the WHIP+ program which stands for Wildfire and Hurricane Indemnity Program as a result from the 2018 and 2019 losses due to hurricanes, floods, snow storms, tornados, typhoons and excessive moistures that occurred during those calendar years.
    • If you utilize an operating line of credit, does your 2020 line of credit have enough availability to cover your expected fall expenses.
    • If there are expected 2020 prepaid expenses being purchased as part of your year end, do you have a 2020 operating line of credit in place?
    • If you are expecting to seal your grain and potentially utilize the FSA CCC loan program, please notify and consult with your operating lender prior to doing so.
    • Do you have a capital replacement plan or budget?
    • Do you, as a farm business, have scheduled anticipated capital improvements and purchases built into your cash flow?

2020 has been an interesting and challenging year considering the Coronavirus that has taken the world by storm. To date, we have had outstanding fall harvesting conditions which has accelerated harvest with the number of farm units completing harvest at this time with average to above yields and improved prices.

From all of us at Citizens Bank Minnesota, we wish you a continued safe and prosperous harvest!

By: Duane J. Laffrenzen, Vice President

Member FDIC/Equal Housing Lender

INVESTMENT AND INSURANCE PRODUCTS: Are not insured by the FDIC or any other federal government agency • Are not deposits of or guaranteed by a Bank or any Bank Affiliate • May Lose Value

Harvest 2019

As an eventful and often times stressful 2019 crop season comes to an end with harvest approaching, we would encourage all farmers to consider the following:

  • Farm Safety
    • Please check to make sure all safety equipment (I.E. – safety shields, fire extinguishers, etc.) is in place and in working order.
    • Be especially careful and diligent around any moving equipment and/or parts, don’t assume anything as things happen faster than we expect.
    • Make sure to use your flashers and be aware of your surroundings.
    • Wear protective and reflective clothing. 
    • When working around/in grain bins, use all appropriate safety equipment and if at all possible have a 2nd person around in case of emergency.
  • Crop Insurance
    • Be aware of your crop insurance coverage as area yields are expected to be highly variable and the chances you will have a claim have increased.
    • If you notice that your yields are potentially near or below your insurance guarantees, contact your crop insurance agent immediately to file a claim.
    • Crop Insurance Claims need to be filed within 10 days of harvest completion.
    • Please keep load records of yields from each farm and mark your bins if you are co-mingling production from several farm units.
    • If you are co-mingling 2019 crop with 2018 crop inventory, you need to request a measurement of the 2018 crop on hand.
    • We recommend reporting your yields as quickly as possible post-harvest while the data is still readily available.
    • New for this year, RMA has extended the premium due date to be postmarked no later than Nov. 30th.  Please keep this in mind as should the bill not be postmarked by the Nov. 30th deadline, all interest will be retroactive to Oct. 1st.  
  • Farm Finances
    • Do you have a marketing plan built into your 2019 cash-flow projection and are you adhering to it? Do you know/remember your break-even commodity prices?  Should we end up with a short crop this fall, you may have opportunities for selling crop during and/or after harvest and you need to stay aware of potential opportunities the market may give you.
    • Have you signed up for the 2019 MFP program payment? The deadline to do so is Dec. 6th. Have you thought about how this payment affects your cash flow?
    • Have you signed up for either the ARC or PLC program? The deadline to do so is Mar. 15th.
    • If you utilize an operating line of credit, does your 2019 line have enough availability to cover your expected fall expenses? If there are expected 2020 prepaid expenses being purchased prior to year-end, do you have a 2020 operating line of credit in place?
    • If you are expecting to seal your grain and potentially utilize FSA’s CCC loan program, please notify and consult your operating lender prior to doing so.
  • Capital Replacement Plan
    • Do you have a capital replacement plan?
    • As producers we often evaluate and consider our equipment needs during fall harvest while spending time in the cabs. Is there a year potential year end purchase you are considering?
    • Have you considered Citizens Bank Minnesota for financing these potential needs? We offer very competitive interest rates and flexible repayment terms.

2019 has been a challenging and stressful year when considering trade wars, low commodity prices, wet spring planting weather, and the unknown of what fall harvest will bring.  If you or someone you know needs or wants to talk to someone, please remember that the MN Extension’s Farm and Rural Helpline is available by contacting them at 1-833-600-2670 ext. 1.  From all of us at Citizens Bank Minnesota, we wish you a safe and prosperous harvest!

**Save the Date! Join us on January 16, 2020, from 8:00 AM – 11:00 AM at the New Ulm Event Center for our Ag Seminar, featuring Frayne Olson, PhD – Crops Economist/Marketing Specialist and Director – Quentin Burdick Center for Cooperatives at North Dakota State University. To learn more about Dr. Olson, visit: https://www.agweek.com/business/agriculture/4463910-agweek-market-extra-frayne-olson-north-dakota-state-university

By: Justin Gode, Vice President/Lender

Member FDIC/Equal Housing Lender

INVESTMENT AND INSURANCE PRODUCTS: Are Not Insured by the FDIC or any other federal government agency • Are not deposits of or guaranteed by a Bank or any Bank Affiliate • May Lose Value

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