The 2024 Central Farmers Cooperative Annual Meeting was held Tuesday, January 15^th.  Auditor Greg Cargin with Gardiner & Company reported CFC’s Net Savings of $3,318,181 for fiscal 2024.  Your CFC Board of Directors approved $660,000 in cash patronage, $440,000 in deferred allocated patronage and $700,000 in non-qualified deferred patronage allocation.  Cash patronage checks will be processed and mailed soon. (Reminder that the Non-Qualified Patronage portion is not taxable until the time it is paid out).

Your election for Directors was held and Vern Fuerst was reelected to a 2-year term in District 1, Ed Mesman was reelected to a 3-year term in District 1, Matt Eichacker was reelected in District 2, and Mark Ortman reelected in District 3. 

During my presentation at the Annual Meeting, I shared that the Fremar, LLC budget for the 2024 Fiscal year was projecting a profit of $3.38 million and the CFC Budget for the 2024 Fiscal year was projecting a profit of $4.0 million.  Through the first five months of the fiscal year, we are ahead of budget for Agronomy, Feed and Grain and slightly behind budget for Energy. 

We also covered that Fed cut interest rates three times during the calendar year 2024 for a total of 1.00% lowering the Fed Funds Rate to 4.25% from 5.25% in January 2023.  Chairman Powell did share that the Fed is projecting two 25 basis point drops (.50%) during 2025.  The statement that accompanied the Fed's decision contained only one change. The statement added a reference regarding "the extent and timing" of additional adjustments, suggesting that it might pause its rate cutting in January. With a broad set of potential policy changes on the horizon that could raise inflation, such as tariffs, tax cuts, and immigration laws, the Fed may prefer to wait for more clarity before changing policy again in the near term.  As I cautioned last year, don’t count on any rate cuts until they announce them.

We also discussed the Viborg Grain project that was approved at the December Board meeting.  We will be adding two 510,000-bushel grain bins with a 20,000 bushel/hour leg and dump pit along with a new larger roller mill for fine grinding corn and three overhead bins.  We will be adding a truck scale and probe just northwest of the Agronomy office that will allow us to handle the incoming and outgoing trucks without having to cross the county highway.  Dirt work will start early this spring with the goal of having everything operational for the 2025 Fall Harvest.  

Later in the month of February our Board and Management Team will be meeting in Sioux Falls in a planning retreat.  We must continue to evaluate our facilities and service offerings to remain relevant to our customers in the future.  We will be focused on identifying and prioritizing facility additions and improvements and evaluating potential external growth opportunities.  Investing in our core assets will be key to serving our members in the future.  We will keep our customers and employees informed as we work together for the future sustainability and growth of CFC. 

Thanks for you patronage; it is greatly appreciated.

Seed selection plays a critical role in the success of corn and other crops in South Dakota, as the state faces unique environmental challenges and agricultural conditions. Choosing the right seed variety can directly influence yield potential, pest resistance, drought tolerance, and overall crop health. Here are a few reasons why seed selection is so important for South Dakota farmers:

1. Pest and Disease Management

South Dakota’s corn fields are often under threat from pests like corn rootworm, corn borers, and aphids. Selecting seed with traits designed to combat these pests, such as Bt corn hybrids or SmartStax PRO™ technologies, can minimize the impact of pest damage and reduce the need for chemical insecticides. This helps maintain healthier crops and improves yield consistency.

2. Environmental Conditions

South Dakota’s climate can be unpredictable. Choosing seed with drought and cold tolerance traits ensures that crops are better equipped to withstand these challenges. Hybrids with such traits can perform well in varying soil conditions and during periods of environmental stress, ensuring a more reliable harvest.

3. Soil Type and Regional Adaptation

Different soil types within South Dakota require specific seed varieties to maximize yields. Some hybrids perform better in loamy or clay soils, while others are better suited for sandy or drought-prone soils. Selecting the right seed variety adapted to the region ensures optimal growth and reduces the risk of poor crop performance.

4. Yield Potential

Seed selection directly impacts the potential for high yields. Hybrids designed for high productivity, such as those with improved genetics or traits that improve nutrient uptake, will yield better results. This is especially important in South Dakota, where maximizing yield is key to profitability.

5. Resistance to Weather Extremes

The unpredictable weather in South Dakota can range from flooding to extreme heat. Seed varieties that offer resilience to stressors like temperature fluctuations or excess moisture can help ease the impacts of these events and contribute to higher crop stability.

Conclusion

Seed selection is an important decision for farmers in South Dakota, directly influencing their crop’s ability to thrive in challenging conditions. By choosing the right seed varieties with traits tailored to their specific needs, farmers can improve pest management, adapt to environmental changes, and maximize yield potential, ensuring a more successful and profitable growing season. If you have not purchased your seed needs yet don’t be afraid to call one of our agronomists so they can help you make the right decision!

Farmers, please core out your corn bins and for a rule of thumb on a full bin in good condition I would try for 10%. Corn was put in the bin at warm temps last fall and the signs of that have been showing up.

As of Thursday, March corn has made its second Golden cross when the 50-day crossed the 200-day moving average and March beans are following closely with the 20-day looking to cross the 100-day moving average. Beans were able to test the 200-day without being able to break out above it.  $10.75 March futures might be a good area to look at making an offer if you’re looking to get beans priced nearby and the upper $4.90s for March corn futures. It is expected that 8-10% of old crop beans and corn in the surrounding states have been sold since the Jan 12th WASDE report. If you see futures continue to rally expect JFM basis to continue to widen. If you have March basis contracts from last fall it might be a good time to consider rewarding the market and pricing some of those bushels.

I would expect to see higher volatility in the markets over the next 30 days. South America starting bean harvest, 45Z carbon credit looks to have been signed off for another 60 days, Brazil’s second corn crop being planted, Argentina reducing exports and most likely seeing changing in tariffs. Brooke Rollins seems to be pro biofuels and ethanol, but I don’t think the new administration has plans of making any changes period for the next 60 days unless it involves world trade.