Curiousfarmer

Money is the Only Thing That Can Be Insured

September 8, 2009

Nothing in this picture is insured, not the barn, not the hoop buildings, not the crops, not even the dog. I only insure that which would be financially devastating to replace. Am I a reckless wildman of the north woods? Or am I an astute businessman?

I go over my farm insurance with my agent nearly every year. A few years ago he pushed a paper across his desk and asked me to sign it.

“What’s this?” I asked.

“Oh, it’s just a waiver. The insurance company won’t insure the hoop buildings for wind or hail.”

“Hmmm,” I scratched my head and smiled. “What else could happen to them?” I asked.

“Oh, someone could take a knife and run along them,” he said, still trying to make the sale.

I thought to myself, “If someone is doing that, then I have bigger problems than hog housing.”

“I guess I’ll take my chances,” I said and pushed the paper back across his desk. “Let’s go over the rest of the policy.” Now I was in a cutting mood and starting to get the high a spendthrift feels upon finding a nickel.

“The barn is insured for $10,000,” he said.

The premium for the barn was $150. I thought about how little economically I use the barn. I keep a few square bales of hay and straw in the top and I keep my chickens, (which is a hobby), in the bottom. But I love that big, old, red barn. If I were to drop the insurance I would somehow feel like I was neglecting the barn.

“We both know it couldn’t be replaced for $10,000,” he said.

Never talk through the close.

I perked up. “You’re right, it couldn’t be replaced for $10,000.”

“But you could build something else, like a pole shed,” he stammered as he felt another premium slipping away.

I thought to myself, “If I wanted a pole shed, I would build a pole shed. What I want is this barn, and the only real insurance is to avoid fires, keep up the roof and structure, and pray.”

What I was in considering in actuality was a $150 lottery ticket which would pay out $10,000 and the only way to win was for my barn to burn down. I didn’t want any part of it.

So the test I came up with is, Could I afford to lose it? What I was left with is insurance on my house and garage and personal belongings for $200,000 for a premium of $316 per year. $500,000 liability for $82. $36 because I have a 4-wheeler. And an $18 policy fee which is unexplainable and would drive me crazy if I gave it much thought so I won’t for now.

So what do you think? Was I raised by wolves?

4 Comments | Curious business | Permalink
Posted by Curiousfarmer

Health Savings Account

August 27, 2009

J9 recently commented and ask that I explain my healthcare. Thank you for this suggestion. This topic is timely as the country debates health reform.

So I’m writing this on a rainy Thursday morning, trying to decide whether to eat eggs or hamburgers for breakfast. Yes, my diet is still meat heavy. I’m conducting a lifelong test on the question, “Does saturated fat clog arteries?”

I have a Health Savings Account combined with High Deductible Health Insurance through Golden Rule Insurance. My insurance premiums and the money I contribute to the savings account are tax-deductible.

Congress created this program in 2003. I jumped on it quickly because I already had high-deductible health insurance. It’s a burden to pay the premiums and to contribute to the savings account, but it’s nice to have money I can use for medical expenses. And any money I don’t use for medical expenses can be used tax-free for any purpose once I reach retirement age.

So what does this look like in practice? I have a $3000 deductible policy. For this insurance I pay $2223 annually. I contribute $2850 annually to my savings account. So my total health cost for the year is $5073.

I am in favor of healthcare reform. However, I reluctantly admit, I am not writing letters or attending listening sessions. I do little more than vote. I am waiting to see what congress comes up with and will choose the best option for me.

1 Comment | Curious business, Curious government | Permalink
Posted by Curiousfarmer

Hog Market is Crashing

August 24, 2009

The hog market is crashing. Hog farmers are going out of business. Our hog buyer has been laid off.

According to NPPC President, Don Butler, the U.S. hog industry has lost nearly $4.5 billion since September, 2007. Producers have lost an average of $21.37 per hog. Losses per hog may be over $50 per head this fall.

We sold a load of commodity hogs August 4^th. The price per 100 lbs. of hog was $43.48. Just ten days later on August 14^th we sold another load and the price per 100 lbs. of hog was $37.60. That’s a difference of nearly $15 per 250 lb. hog.

Direct-marketing pork has helped us stay optimistic about raising hogs. Unfortunately, many producers are finding nothing to be optimistic about and are exiting the hog industry. How low will these markets go until reaching seasonal lows in December? I will keep you posted.

Here is a conversation I had at the hog market, recently.

I waited at the hog market with my old herdboars.

“They can’t be together,” I said to the old man waiting to unload his hogs.

“This one will tear the other one up. He already did a month ago, jumped over a gate four feet high.”

“Looks like he could do it now,” the old man said as the boar measured the gate with his snout.

“He’s a good-looking boar.”

“Thanks,” I said.

“Where’d you get him from?” the old man asked.

“I raise boars,” I said. “I use AI to bring in new genetics.”

“Oh, you use AI?”

“Yes. Where do you get your boars?” I asked.

“Ohio. Durocs one year, Yorkshires the next.”

“That’s a good cross,” I said.

The old man looked up towards the scale and asked, “Where’s Scott?”

“He’s on vacation,” I said. “But next week’s his last week.”

“What, why?” the old man asked.

“He got laid off. They’re closing down German Valley and Rory is going to drive from Lancaster to fill in here.”

“The hell you say.”

Leave a Comment » | Curious hogs | Permalink
Posted by Curiousfarmer

Combining Oats/Barley

August 16, 2009

Harvesting oats/barley with our 1970’s era Massey Ferguson combine. I won’t know an exact yield until I have fed all of it to our hogs over the next year. We finished baling the straw on Friday.

Oats/barley is higher in protein and fiber than corn, but lower in energy. I use oats/barley in the hog rations at a rate of 20% of the ration when it’s available. So that’s 400 lbs. per ton. I reduce the soybean meal by 50 lbs. per ton when I include oats/barley in the ration. I see no noticeable difference in hog performance at this inclusion rate.

1 Comment | Curious crops, Curious hogs | Permalink
Posted by Curiousfarmer

Sweet Corn for Tacos

August 10, 2009

I picked 3 dozen ears of sweet corn to give to friends. Two friends were home and gladly accepted the gift. I drove around town wondering what to do with the remaining dozen.

A temporary taco stand was set up in the park by main street.

“Maybe they would be up for a trade,” I thought as I parked my car.

“How many tacos you want?” a woman asked me.

“Uuuuh,” I said and walked over to where a man was cooking meat on a large, flat grill.

“How many tacos you want?” he asked me.

“What kind of meat?” I asked him.

“Pork.”

“Oh. Do you like corn?”

I realized I was acting quite weird.

“Sweet corn. I’m a farmer. I have a dozen ears in my car. Would you like to trade?”

The cook looked confused and uncomfortable. The woman sidled over to help translate.

“I’ll show you,” I said, and walked back to my car.

I set the bag of sweet corn on a cooler. When the cook stopped turning the meat, I took out an ear and pulled the husk back to show the plump, yellow and white kernels.

The cook said something excitedly in Spanish to the woman.

“How much?” he asked.

“It’s worth 4 dollars a dozen,” I said.

“4 tacos are 6 dollars,” he said.

I wasn’t sure what he was driving at.

“Ok, how about 3 tacos?” I countered.

He nodded and went back to cooking.

My friend from Honduras tells me most of the Hispanic immigrants in Lafayette county are from small towns and rural areas of Mexico. They came to the US for work, of course. But they enjoy the bucolic atmosphere of Lafayette county.

They began wrapping up the tacos and the woman said, “He’s giving you four.”

We country folk sure know how to drive a hard bargain.

3 Comments | Curious food, Curious living | Permalink
Posted by Curiousfarmer

Kiva: Microfinance With American Ingenuity

July 27, 2009

Can a loan of $500 dollars change someone’s life? Microfinance says yes. Microfinance is the supply of loans and other financial services to the poor.

Muhammad Yunus is a Bangladeshi banker and economist. While visiting a poor village near his university in Bangladesh in 1976, Mr. Yunus was shocked to meet people kept in virtual servitude by usurious loans. He made a loan of $27 to 42 women out of his own pocket. This experience caused him to realize that an organization was needed that would provide banking services to the poor. Grameen bank was born.

In 2006, Muhammed Yunus and Grameen bank were jointly awarded the Nobel Peace Prize “for their efforts to create economic and social development from below.”

Something about microfinance inspired me. I like the idea of helping someone with their own idea. After all, I’ve benefited from borrowing.

I started looking for a way to get involved. In 2007 I read that Premal Shah, the President of Kiva, was speaking in Madison. Kiva is microfinance with American ingenuity. Kiva’s mission is “to connect people through lending for the sake of alleviating poverty.” “Kiva is the world’s first person-to-person micro-lending website, empowering individuals to lend directly to unique entreprenuers around the globe.”

I attended Mr. Shah’s invigorating talk. The next day I made a loan of $25 dollars to Guloglan Agakishiev, who was running a butcher shop on what looked to be card tables. Within a couple of months Guloglan had started repaying his loan of $1000 on schedule. He finished repaying his loan in the fifteen months that was promised.

Testing Kiva even further, I let my money sit in their account and watched to see if they would sweep it into their coffers. To their credit, they haven’t, and occasionally remind me that I have money in my account that could be loaned again or taken out.

Hooked, I started to give gift certificates to try to get more people involved. And so now I am offering a $25 Kiva gift ceritificate to each of the first three people who comment.

5 Comments | Curious business, Curious finance, Curious living | Tagged: capital, interest rate, loan, microfinance | Permalink
Posted by Curiousfarmer

A Fertility Mystery

July 23, 2009

Oat/Barley field with a creek intersecting. Notice the dark-green line in both fields with plants to the left of the line darker-green than plants to the right of the line. Why?

I will explain how the field was managed. Last year was a wet spring and I was unable to plant this field to oats like I had planned in April. By the time I could work the soil around the first of June I decided to plant corn, instead.

I had read about grazing standing corn in the book, “Grassfed to Finish,” by Allan Nation. Since I had low expectations about this field’s yield potential due to the late planting date, I decided this was the year to try this radical idea. Even Citygirlfriend knew this was crazy.

It turned out ok, though. I grazed eight steers for eight weeks starting in July when the corn was waist high and ending in August with the corn eight feet tall. The steers gained well, about two lbs. a day, but that was no better than the steers that were grazing permanent pastures and alfalfa/grass hay fields. So, since the gain was no better and the cost was higher to graze corn, I am not planning on grazing corn anytime in the future.

The dark-green line is where I chopped down the corn and put up a single-strand electric fence. I then cross-fenced and gave the steers a half-day to a day allotment at a time. I also had a round bale of hay available so the steers would never accidentally run out of feed.

After the steers were butchered in August, I took down all the fencing and no-tilled oats into the bare ground. I didn’t want the soil exposed to rain, sun, and wind. So are you picturing how it looked? To the right of the line was a corn field, and to the left of the line was oats.

We harvested the corn in October. At this point, the oats were about knee-high. We then grazed the field with the cows. They ate much of the corn stalks and grazed the oats right down to the ground.

I disced the entire field this spring and then planted oats/barley and didn’t think twice about it. And then I looked at it one day and noticed the line. I knew I had to take a picture and present it to you.

The dark-green color indicates higher fertility and that higher fertility is probably more available nitrogen. Why is there more nitrogen available? What are the management differences?

The steers grazed and deposited their manure. However, they wouldn’t have deposited their manure evenly. You can see where cows deposited their manure on the right side as it shows up in darker-green clumps of forage.

I planted an oat cover crop. Cover crops are supposed to add nitrogen to the soil. Would it add nitrogen the next summer even though it was grazed off the previous October?

There was very little carbon on top of the soil this spring. To the right of the line was corn stalks. As microorganisms break down corn stalks, (carbon), nitrogen is used. Maybe more nitrogen was available to the left of the line because of the lack of corn stalks. This is where I’m placing my bet.

What do you think? Is it one of these theories, or something else? Your comments are welcome.

1 Comment | Curious crops | Tagged: crops, fertility, oats | Permalink
Posted by Curiousfarmer

A Visit from Restaurant Magnus

July 12, 2009

Owners and chefs from Restaurant Magnus visited our farms Sunday morning. I applaud them for making the effort and taking the time for a farm visit. It’s fun when someone is interested in what you are doing.

Check out their menu. Bold and creative. Direct-marketing continues to introduce me to interesting people.

Leave a Comment » | Curious direct-market | Tagged: direct-market, farm visit, restaurant | Permalink
Posted by Curiousfarmer

Knee-high by the Fourth of July

July 6, 2009

My six-foot-tall father standing in our tallest corn on July 3rd.

Knee-high by the Fourth of July is a common saying in the midwest. It refers to the height of corn. I guess that used to be a decent target for corn in the old days. Corn is planted earlier now.

This is a corn plant showing potassium deficiency. Yellowing on the outside of the lower leaves is the telltale sign. This plant is alongside a gravel road so it probably has more to do with soil compaction and the inability of the corn roots to search out available potassium than an actual potassium deficiency in the soil. The corn looks fine a few rows in.

It’s enlightening that corn shows it’s deficiencies so readily. What if our personal deficiencies were as visible?

2 Comments | Curious crops | Tagged: crops, deficiencies | Permalink
Posted by Curiousfarmer

Nessie in Wisconsin?

June 30, 2009

My childhood career choices vacillated between Sasquatch hunter and Loch Ness monster hunter. So imagine my surprise when I saw this behemoth surface on a Wisconsin lake. I snapped a quick picture before it dove.

I wouldn’t want to estimate it’s size because you wouldn’t believe me anyway. However, I will no longer be enjoying Wisconsin’s waters. I’m not going to divulge the location of this monster as Wisconsin’s tourism industry is huge and I wouldn’t want to hurt it. And perhaps this leviathin is a herbivore.

Sightings of this Wisconsin Nessie are not without precedent. Jay Rath has a chapter in this book, “The W-Files,” devoted exclusively to lake monsters.

“At one time or another, many Wisconsin lakes have boasted their very own saurian monster. In 1867, for example, Lake Michigan’s sightings were so convincing that the Chicago Tribune announced, ‘that Lake Michigan is inhabited by a vast monster, part fish and part serpent, no longer admits of doubt.’ But despite the publicity lake monster stories once received, today they are largely forgotten.”

I am sharing this information with family and friends only. I consider you, dear reader, a friend.

2 Comments | Curious living | Tagged: Nessie, sasquatch, Wisconsin | Permalink
Posted by Curiousfarmer