NFO-266 (AV10767): US Farm Report: Grain Marketing USA

Hi everybody and welcome to US Farm Report. Featured on this week's show: an interview with a fine grain farmer from Streeter, Illinois Norbert Schmidt. and on the farm report from the Schmidts at Streeter, later in the show. Our special studio guest is Mr. John Oster. John is assistant director of the Grain Commodity Department of the National Farmers Organization. John it's always a pleasure to welcome you to US farm Report. Thank you Bill, its a pleasure to be here. John I was most impressed with Norbert Smith and his farming operation near Streeter, Illinois and he tells me that good things are happening through that region in terms of some contracts, what's going on there? There are good things happening there Bill. In addition to making export sales out of that area along with the sales in the interior we have a contract in that area producer contract for edible soybeans for export to Japan and this is produced on an acreage basis and this we hope will be a long range program and give us a lot of more future contracts on similar commodities. Well I think you will see in the interview to follow that Norbert grows some of those edibles soybeans in fact as I recall he has about 40 acres of them. mm-hmm. And he's quite excited about that. We are too bill because we think this is going to be the future of agriculture. John how are things generally in the grain department? Things are really moving bill we've added some staff people here in our headquarters here at Corning, Iowa some new people. We have George Brandon came in from Idaho and a new man the name of Bruce Hendrickson from Maryland. We've added here to our staff plus we've added a lot of people to the staff out across the field and out in the field so we feel we've got a pretty well-rounded staff now we need just a few more people we've pretty well got the nation blanketed now with good staff people out in the area. Well now this is part of the accomplishment to possible as a result of the increased dues isn't it? Yes your adding of personnel. Yes sir this is what we'd promised the people and this is what we have done. Exactly, now if there is any slowness to it I know the reason, and that is that you choose people most carefully. You screen them carefully because you want the top people in the country and they're not all that easy to come by are they? No, a lot of the top people out there have a large farming operation and our real reluctant to break their ties with them but they're also understanding more and more all the time that price is probably the most important product of Agriculture today. Indeed, you mentioned when we were talking about Norbert Schmidt and the edible soybeans grown for export to Japan that you felt this was the future really for agriculture. Now you've been making export sales. Can NFO in making export sales get more for export than the big grain companies? We sure can bill and it's strange that you would ask that because recently I attended the Mid-southern Soybean Shippers and Grain Dealers Association convention and one of the grain dealer was asking the same question and we have proof and several occasions now in wheat, milo, corn, and soybeans that in every case where we have made export sales we were able to negotiate out a better price than what the buyers at the port's were offering or even backed off into the interior we're offering. Well now, how have you accomplished this? Well I think there's two reasons. One we are a major source of supply and we have the product and the buyer knows that they can depend on that supply and be furnished with the volume they need. The other is I don't think that it is the responsibility of the buyers nor have they accepted as part of the responsibility to get price for farmers they're interested more in just handling the volume and they're not interesting in getting a price for agriculture it's not the responsibility it's the producer's responsibility and this is where NFO fits in. mm-hmm. What kind of shipping are you doing? Is most of the export done by barge and ship? A lot of it is where we can get large facilities. Some is done by rail, I have a picture here, Bill, of a barge that was used on an export of white wheat out in the west coast. It was moved out of the interior of Washington by barge to the port elevator at Portland. That we loaded a vessel yeah that's a that's a huge barge, thats a dandy, look at a big capacity right. There NFO came through in flying colors and moved a large volume of grain in a short period of time. Well so much for export and I know that you could go on and tell us a great deal more about it and before we do leave export as a matter of fact I would like for you just to comment briefly on your recent trip. Well recently bill about, oh, 30 days ago now I guess. I made a trip abroad to Syria. We had an inquiry from Syria to buy a large volume of grain over a long period of time and we tried to negotiate it through cables and telephone conversations but due to the poor connection and probably the vagueness in the conversation we thought it was worth the trip and I think what really was worth the trip to go there. They are interested in buying a large volume of grain over a long extended period of time. However they do want to buy on credit and here is one of the hang-ups that we have right at the moment where the government is no longer extending CCC credit to the middle of some of the Middle East countries we hope to be able to circumvent that and get this credit reestablished and once we do this a look on the door for a large volume of United States grain going to the Middle East and they have the need for it. John what's the new crop outlook? Well on soybeans we are in agreement with what the government says on all the reports that we get and I think here again is where farmers have a real benefit to having a nationwide organization in regard to market information. We have a nationwide organization with member producers and staff people out in out actually out in the field seeing the crop as it looks and we're in agreement with the government on the soybean projection of a larger crop than we had a year ago. Soybeans look good all over, the color is good and the pod formation on the beans is very good so we feel - that's going to be up. However we strongly disagree with what the government says that the new corn crop will only be down six percent. And they say it's mostly in the south where the corn acreage is not extensive. It is probably the most severe in the south but the past month we've been making a survey on our own of all of our corn producers across the big coronaries of Ohio, Illinois, Indiana, and Iowa into Minnesota and the Dakotas, Nebraska, Missouri, and Kansas and we have a combination of things. It isn't only the southern leaf blight that is taking its tremendous toll. We estimated that the tonnage is going to be down somewheres around between 20 and 25 percent. I'm talking about the bushel per acre yield now there's going to be down somewhere between 20 and 25 percent nationwide due to the leaf blight, the fungus, and the drought which is real severe in the Dakotas and Nebraska across Kansas on into Texas and in addition, the quality factor on the corn which I don't think the government has even taken into consideration. The test weight on the corn we've had reports down as low of test weight is 32 percent or 32 pounds test weight. mm-hmm. Which is real severe. Plus the feeding value of the corn is going to be off so we're in sharp disagreement with the government on the corn and I think that before the New Year rolls around we'll see revised figures coming from the government lowering it much lower than the six percent that came out with a week ago. Well the old idea of supply and demand went out the backdoor in agriculture in reality many, many, many, years ago didn't it John? Well I don't know as it went out so many years ago bill that it has been going out and I think a good example is Soybeans. Here we're looking at probably the largest crop on record in the history of soybean production. Our exports have not increased enough... To take up the excess? Right take up the excess. To substantiate this price increase, we're looking at the highest price for soybeans at harvest time that we have in several several years. Well are we looking at $3 soybeans? We sure are. We sold some for export at $3. We sold them we started out at lower price than that and then on up to $3 and I think it's the first time in a long time that harvest farmers could expect that high price for beans at harvest time. John on our recent field trip we got into the Carolinas and we saw this southern leaf blight in the cornfields there and it's really on relooking it looks like corn that's had a hard freeze you know have you seen it around the Midwest? I've seen just spots of it and what information we've been getting in through our communication Department is what they've relayed the same thing. Now we didn't notice any of it in those parts of Illinois we visited for example around the Streeter area where we did visit with Norbert Schmidt and speaking of him join me if you will and let's go there and and visit with Norbert and his family. Real fine. US Farm Report has learned through many months of association with NFO members all across the land that NFO people are the most hospitable, kindest, loveliest people in all the world. Our entire US Farm Report crew is near Streeter, Illinois and our host and hostess certainly personify what I have just said about NFO people. I'm speaking of Norbert and Lois Schmidt. It's real nice of you to have us out today. Nice to have you thank you very much Lois I understand that you work. I mean in addition to keeping house here and being a mother. I have a full time job. I work at Camelot Manor, a care home in Streeter, Illinois and I work as a nurse, at the the seven-to-three shift five days a week. Well now she didn't take this on did she Norbert until after at least two of the three kids were raised. This is very true. And speaking of those two kids, Norbert and Lois have two daughters in addition to a 15 year old son. Both of these girls were married in the past year and I think that, by golly, we've got to take our hats off to you for that accomplishment. That's kind of a shocking thing isn't it? To get two of them married in the same year? We hate to lose all of our family in one year or more so. Now let me ask you about what first attracted you Norbert to NFO. Well bill this goes back to my school days, high school days, and this is probably a very unusual situation but we had a high school teacher, an Ag teacher, mister Walter Basinger back in 1935 - 39. That brought this need for better marketing on the farm up to us fellas at that time. He told us at that time that we would have no trouble producing a crop or a livestock. He said your biggest problem will be trying to sell this production and this was very true. When we started into farming and as time went on I knew what this gentleman was talking about and when NFO came along it looked like this was the answer to some of our problems. How long ago was it that NFO came along for you? 11 years ago. and you've been a very active NFO member through the years haven't you? I was a charter member at that time and mr. Walter Basinger was too, our AG teacher. Norbert you're a family farm, the farm on which you were raised is very near here isn't it? It's just a quarter of a mile from where we live now. Bill is the farm still in your family? My father lives there and my sister and her husband and children. Well now your father is how old Norbert? 74. Is he still an active farmer? More or less, yes, he helps us out. Yeah he's quite a fella in fact, we met him today and mr. W.W. Butch Swain of the Public Information Department that NFO along with the US farm report crew met him and visited with him today and he's a fine fellow. By the way that's quite a family farm over there too you know with the kids and the ponies and the dogs it's quite a place. There's a little bit of everything over there and they have a lot of livestock. The kids raised hogs as you've noticed probably. mm-hmm. How big a farm is that the original family farm? One hundred and sixty acres. Now when you decided to spread out in farming, Norbert where did you go from there? Well we moved just about a half a mile east of the family farm and we rented two hundred and fifty acres from Arthur Shay. uh-huh over in Streeter and he and his wife still owns the farm, mrs. Ethel shay. and are you still farming that land? Yes yes we do we still farm the ground. mm-hmm. We have a hired man, a full-time hired man who is a tenant or living in the house now, helps us out. Yes and that's a very neat looking farm, it's it's well-maintained and I think this is to your credit as well as to Jim Wilson isn't that his man, your hired man? As well as to his. Thank you Bill. It's very attractive and and we enjoyed looking that over today. Thank you. Now after you rented this land then you decided to get in the middle between the family farm and the rented property and buy some land we're now situated on that are we not? Right we are sitting on the original farm that we bought 22 years ago. Uh-huh. There was 220 acres. 220? 220 in that yeah. Now you are farming how many acres altogether? 760. 760, now what are you raising? What what crops predominate in your farming operation? Corn is our main crop, and then soybeans of course and we raised some certified seed oats or some people in Pontiac, Illinois and we have a hay crop, of course to feed our beef herd with. And this year we are growing some edible beans for Pacific Grain Company down at Farmer City, Illinois and these beans will be exported to the Japanese. Now, you built the home in which we are sitting today in 1968 and incidentally it's a lovely home indeed. I know that both of you must have planned for many many years what has become a reality, isn't that right Lois? Yes indeed, many years. And in fact maybe this is one of the reasons that you worked so hard at an extra job huh? Yes it certainly was Bill because it was something that I planned and dreamed for for a long time. Well, didn't NFO have sort of a part in in the planning and the final construction of this house? Well I would certainly think so, Bill. It's just like playing a game of poker and I guess I'm betting on to come. yes you are I think I'm gonna I'm thinking I'm gonna win out. And this is with this with this attitude of optimism you went ahead and built the house that you and the Lois have always wanted. This is true. Yeah well it certainly is indeed a lovely home and we're just delighted to be here. Incidentally you're quite a grass man you know that? You have a little bit of luck involved there. Well what happened this man, ladies and gentlemen, has one of the finest bluegrass lawns that I've ever seen and you planted it when we planted it when? In March of 1969. How do you account for the fact that you're so good at that? The good Lord and the weather had a lot to do with that, Bill. What's that Lois? He has a son that maintains it very well. That does help. David does keep it in real nice shape. Yes let's talk about David for a minute you know we've enjoyed visiting with David today and he is a member of the Future Farmers of America. Right. And he's a 4-h'er and in fact we were delighted to see his project his 4-h project as two calves and he's really enthusiastic about it isn't he? He certainly is, he was over there working hard all day on those calves getting ready to show. Well now how soon will they will the big showing occur at the at the fair? This Sunday. This coming Sunday and then Monday they start showing. Well we certainly do want to wish David a lot of luck on that. He also has some hogs doesn't he? He has a swine project. Well that's wonderful. Well Norbert as you know, NFO is making every effort in the world to save the family farm and I know that you have two married daughters. I know that David now is coming along at age 15. What is your intention about your farming operation where David is concerned? Well he will probably take another four or five years to make up his mind and also to keep on with his education and finish it. mm-hmm. Before he decides what he wants to be. And at this time I would certainly like to keep this unit together for him, if at all possible, because there is a strong possibility that he may have to farm more than we are farming to make a living. I hope this is not true. mm-hmm. This is one reason why we hope very much that the NFO is a success well if NFO is a success and we have every indication that it is certainly that today the exodus from the family farms of America on the part of these young people like your David perhaps will be slowed considerably if not ended so that these young people will stay on the farm and farm as most of them really want to do. Well I hope so because I'm beginning to worry about who is going to do the work. And that seems to be the problem doesn't it. And of course if there's none of these young fellows left out here to do the work, where will the food come from? Corporate farming is not the answer is it? No these people have not been too successful. Well let's just talk for a moment about NFO here in this part of Illinois. Is membership good? Is it growing? Are you encouraged? Membership is good and it is growing. I think that Laysale County, Illinois has a very good organization within itself. mm-hmm. There's a lot of unity here and these people really work good together really trying. Well one of the the biggest necessities on NFO farms to carry out the NFO marketing structure and drain, is storage capacity and having looked around your farms today you seem to have plenty of grain storage facilities. How many bushels do you have in capacity Norbert? We can store and keep 60,000 bushels out here, Bill, and I think that this is a must and we started on this project ten or twelve years ago putting up one our two bins at a time and normally in the summer time is your better markets and it's almost impossible anymore to take your crop town or to the elevator to the market and dump it during the harvest season. That's the old way isn't it. Well this is the time that our opposition takes advantage of it. Yes indeed now let's talk about soybeans for a minute and what selling soybeans through NFO has meant to you. You have sold soybeans this year, stored soybeans, have you not? NFO has blocked many sales of soybeans together this year good sized blocks of them and this has had an upward price pressure on the whole trade which has not only helped the NFO farmer but it has also helped other farmers. How much have you sold? Approximately eight thousand bushels. What would you say just as a guess has been NFO's increase to its members in soybeans this past year? Has it meant a half a dollar? At least. At least a half a dollar. Well now then to equate that in your case having sold eight thousand bushels that means that you have realized four thousand dollars that perhaps you would not have realized without selling through NFO and without NFO's marketing structure. This is very true. What do you think about that Lois, four thousand dollars is a pretty nice piece of money and what can you do with some of that here in the house? Well there are still things that we need to do there's a patio that has to be poured. oh she's working some work out for you Norbert. and oh there is a part of the basement that we would like to maybe make an extra room down and other than that we'll take it easy for a while. Well now Norbert you also are raising some cattle and some hogs aren't you? We have a 35 cow beef herd and then we feed out 50 head of steers and heifers a year as feeders and approximately a hundred and fifty head of ham hogs a year. Norbert as I understand it some of the people in this area some of the farmers who used to run cattle no longer are doing so they've torn down their fences they've turned their land entirely into grain farming and now that some of them want to come back into the cattle business it's pretty much of an impossibility for them isn't it? It would be very much of an impossibility because of the expense of things. Bill they cannot go out and replace several hundred rods of woven wire fence for example or put up buildings or feed lots. And then of course when these fellows are out of this livestock operation for several years they lose their tech or know-how so to speak, you know and this is not good. Well isn't it true in the cattle business here as well as throughout most of the country that in order to stay in the business actually the cattle producer has sold off his breeding stock and and this puts us in the dilemma we're in? Well at the time he sold off his breeding stock he may have sold a good cow for 250 to 300 dollars and if he was to replace this animal today it might cost him twice that much or more. Now Lois before we leave you all I would like to ask you this you have said that the years you have had with Norbert in NFO have been happy productive hopeful years for you as a farmer's wife. What would you say the farm wives of America in terms of NFO about joining? I think it's something that we are all the farmers need and in order to be able to fulfill some of their dreams that they've had and to live a better life I think the NFO was the answer to our problems I think all farm wives have had a problem in wanting things on the farm and maintaining a life somewhat that the city people have had and I think NFO is our answer. I think that's a rather good point on which to close may I in behalf of our entire US Farm Report crew thank you Lois and you Norbert for your hospitality, we've enjoyed this very much. You're very welcome bill thank you. Well that was the visit with Norbert Schmidt and his wife and son very fine people in Streeter, Illinois and the grain farmers of whom your department can be proud John. Good NFO members. You know it seems to me that one of the really important aspects of NFO is that it is nationwide and that it has a nationwide communications network, is that correct? This is right bill I think at this time there should be little doubt in any farmers mind as to the effectiveness and the potential of a nationwide collective bargaining organization it's been accepted now by the government, by our leading universities, agriculture universities, across the nation and more readily accepted by farmers everyday. And the effectiveness, there's no argument anymore you can argue about the degree of effectiveness but nobody any longer can argue whether or not it is effective because it certainly is and I think one of the biggest benefits that can be derived from an organization of this type. We do have the government statistics to point out what the potential crop is but I don't think that it's near as accurate as a farm organization like this that is talking directly, each day, every day through our communication system that we have which is nationwide to really know what the crop situation is and I think in the final analysis when the crop is all in this fall on corn it's going to be far short of what the government predictions are at this time and this in terms of marketing service is certainly the benefit to every farmer across the nation and you should be more than willing for just this service alone to belong to an organization of this type. John thank you it's always a pleasure to have you on US Farm Report. Thank you bill, it has been a pleasure to be here. my pleasure. My special studio guest has been John Oster. John is assistant director in the grain commodity department at the National Farmers Organization. we also featured Mr. Norbert Schmidt his wife and son from Streeter, Illinois. US Farm Report is seen on this station each week at this time until we meet again so long everybody.