As farmers gear up for the spring planting season, there are signs that 2010 may bring a steadier ride.

Last year could not have been much better for farmers' crops. Yields for corn, soy and other commodity crops were strong.

"Last year was a once-in-a-lifetime harvest," Jim Gondringer said. "We've never had fields like that consistently across all our farms. We produced just under 200 bushels of corn per acre and 55 bushels of soybeans per acre. Those are fantastic yields for the land we farm."

Gondringer and his brother, Leroy Gondringer, grow alfalfa, corn, oats, soybeans and wheat on their Avon farm. They were able to get their entire crop harvested and fields tilled last fall.

Not all farmers were so lucky.

Benton County agriculture Extension educator Dan Martens said about 5 percent of farms statewide still had corn in the fields this month from last fall's harvest.

"I would guess in our area, especially as we get north of St. Cloud, it would be higher than that. That means ... more tillage work that did not get done last fall," Martens said. "And those fields with a lot of crop residue will warm up more slowly because it shades the soil. Depending on what kind of spring weather we get, it might delay planting on some fields."

Martens said there were some mold and moisture issues with last fall's corn harvest as well.

"Some of the crop was put into storage wetter than normally recommended for long-term storage," Martens said. "The hope was to get it cold enough to preserve it then dry it this spring to prevent spoilage."

Farmers who brought in a wet harvest will be keeping a close eye on grain bins and drying corn in storage.

"In some cases, farmers will have to make sure they are feeding silage and high-moisture corn fast enough to livestock to stay ahead of spoilage," Martens said.

A promising start

All the pieces are in place for a good start to the spring planting season. Abundant snow cover meant good insulation for alfalfa fields and adequate soil moisture, and an unseasonably warm March means fields are thawing nicely.

"We're still a month away, but it's looking good," Gondringer said.

As soon as the fields dry out, Gondringer will join other area farmers picking rocks that have been turned up by the freeze-thaw cycle. There's also tilling and manure spreading to be done before the soil warms to the correct temperature for planting.

If nature cooperates, farmers aim to get potatoes and grain planted by mid-April, followed by corn in late April and soybeans in early May.

"Ideally we'll have everything planted by mid-May," Martens said.

Dairy prices flat

Dairy producers weathered a tough year in 2009. With milk prices remaining consistently at or below most farmers' break-even point, many dairy farmers operated at a loss.

According to Jim Salfer, University of Minnesota regional Extension educator, milk prices rose briefly from December through February but dipped again in March.

"The first half of 2010 is going to be pretty tight," Salfer said. "I would anticipate this fall will be a lot better unless something really dramatic happens. (This year) should be a better milk price year than 2009."

On the bright side, Salfer said feed costs have dropped substantially this year, reducing production costs for dairy, cattle and hog and farmers.

But dairy producers may see less demand for their product.

"There's a big cheese inventory going forward," Salfer said. "There's a lot of cheese sitting around in warehouses that can go on the market."

There are also plenty of heifers available to replace the current milk herd. That means future milk prices may stay low.

"Future prices are based on anticipated milk supply. Now they're seeing a lot of cheese in inventory, a lot of replacement heifers, they're saying, 'In the future we'll have a lot of inventory and the milk supply is going to be good,'" Salfer said.

Those factors, coupled with the national recession, may have persuaded some farmers to stay the course despite grim milk prices, he said.

"In 2006 and 2003 when prices were low, there was a lot of opportunity to sell cows," Salfer said. "But right now, there's less demand. Producers are looking at the general economy and thinking 'What are my chances of getting a job if I sell my cows?'"

Credit is tight

To stay afloat, farmers have been making difficult budget choices, delaying maintenance and deferring purchases.

"The thing that is a little scary out there is (some) producers have adjusted insurance on buildings looking at ways to cut costs," Salfer said. "When people have to choose between insurance and food, they choose food."

They also rely on creditors to help them secure operating loans for planting supplies and equipment. That task may be a little more difficult this year.

"A lot of lenders deferred payments or made interest-only loans in 2009. Of course they're only willing to do it for so long," Salfer said. "This year operating loans may be a little harder to come by. It will be a pretty tight squeeze until fall."

At St. Cloud's Farm Service Agency office, farm loan manager Jerry Hurrle can testify to the tight credit environment.

"Credit it tight, financing is difficult and we're busy," Hurrle said.

"We expect it to be another tight year on the farm. It's not going to get back to normal overnight," Hurrle said.

In 2009 Congress doubled funding for FSA loans in an effort to keep farmers afloat. Hurrle anticipates 2010 demand will be just as high. Already his office has a backlog of applications.

"We're using funds as rapidly this year as we did last year, maybe even faster," Hurrle said. "We're trying to process applications as quickly as possible. There just aren't enough hours in the day."

Over at Midwest Machinery, equipment manager Andrew Swenson said farmers are feeling the squeeze.

"We're already hearing farmers say it's harder to get loans for equipment," Swenson said.

Despite that, Swenson anticipates 2010 will be a good year for his business where last year's bountiful harvest is translating to equipment sales this spring.

"(Last year) was actually a very good year for us as implement dealers. We feel 2010 is going to be just as good," Swenson said.

Source: The St. Cloud Times