Syngenta Thrive

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The physical demands that farming requires are no secret, but the mental and emotional demands of the profession are often stigmatized or ignored. Fortunately, the impact running a farm has on mental health is being increasingly studied — and better understood.

Josie Rudolphi, Ph.D., is an assistant professor and Extension specialist in the Department of Agricultural and Biological Engineering at the University of Illinois, and co-director of the North Central Farm and Ranch Stress Assistance Center. Her research and outreach focus on farm stress and mental health, agricultural safety and health, and child agricultural injury prevention.

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“We know that farmers experience really unique work-related stressors,” Rudolphi says. “These include the unpredictable nature of commodity prices and environmental conditions, which can have tremendous impact on their bottom line. Farm finances are a leading source of stress, regardless of what’s happening in the economy. We’ve also seen associations between financial and environmental stress and symptoms of anxiety and depression.”

The number of people in the ag community who experience clinically significant symptoms of anxiety and depression exceeds those who experience similar symptoms in society at-large.

“At any given time, people experience adverse mental health, but what we see is that those experiences are more common in agricultural communities,” Rudolphi says.

“In a survey of younger farmers, for example, we found that nearly 60 percent met the criteria for depression — and even more met the criteria for anxiety — which far surpasses what we would expect to see in the general population, which is closer to 20 or 30 percent.”

Barriers to Care

Many places in rural America are designated mental health care shortage areas. This refers to a lack of providers and services to meet the need. But it’s only one of the challenges farm families face.

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At any given time, people experience adverse mental health, but what we see is that those experiences are more common in agricultural communities.

Josie Rudolphi, Ph.D. Assistant Professor and Extension Specialist in the Department of Agricultural and Biological Engineering at the University of Illinois

“In terms of barriers, we talk about the four As,” she says. “These are availability, accessibility, affordability and acceptability, or stigmatization. Additionally, most farmers are independent producers who operate on very thin margins. Mental health care is often considered a luxury, or an unnecessary expense.”

Recognize the Signs of Mental Health Issues

A change in behavior is one of the main warning signs of anxiety and depression, according to David Merrell, M.D., regional physician with Syngenta Health Services and the on-site medical doctor for Syngenta in Greensboro, North Carolina.

“When people begin to behave differently, for whatever reason, it’s important to understand why,” says Merrell. “Don’t wait. If you see a behavioral change, raise the question.” Approaching someone experiencing behaviors outside of the norm gives them an opening to talk about their emotional health, stresses and worries.

On average, people experiencing mental health issues take more than 10 years to speak up. That can be especially true for the rural community.

“Farmers and farm families are typically very self-reliant and can be reluctant to seek help,” Merrell says. “Recognize, though, that everything is therapy. Hobbies, self-reflection, sharing your concerns with others are all forms of therapy. The question is, what kind of therapy do you want? Engaging a mental health professional can provide access to a better, higher quality of care.”

Merrell advises a four-step process to enhance your mental well-being:

  • Take time to reflect and engage in meditation, prayer or journaling
  • Have an outlet for your stress and participate in hobbies and outside interests
  • Engage your support system, including friends and/or family
  • Seek professional help

Notably, reports of depression and anxiety increased during the COVID-19 pandemic. “Rural America was not immune to that trend,” Merrell says. “A positive development, though, is that out of this came a greater awareness for the importance of mental well-being.”

Help is Here

According to Rudolphi, the USDA has funded four regional farm and ranch assistance networks, each with its own dedicated website and links to mental health resources and support for farmers, ranchers and agricultural workers. They are:

“In the North Central region, for example, we are working to deliver mental health literacy programs not only for agricultural producers, but also for those who work with them,” Rudolphi adds. These include bankers, retailers, seed dealers and others who know farmers both on a professional and personal basis.

“We are training these people to be mental health allies,” she says. “That includes being interventionalists, when necessary, knowing how to talk about mental health, how to ask the right questions, and how to refer someone who may be experiencing a mental health crisis. In several states, we also have partners who offer low- or no-cost professional behavioral health services, typically via vouchers which can be redeemed at several mental health providers.”

Historically, stigmas surrounding mental health and its treatment have been pervasive, particularly in rural areas. “We still see stigmatization around mental health in these communities, but I think that’s starting to change,” Rudolphi says. “Hopefully, through education, increased awareness and shifting attitudes, farmers and their families will be encouraged and empowered to take the steps necessary to enhance their emotional well-being.”

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For farmers, preserving and protecting our natural resources is a priority. Whether referred to as “sustainability” or “regenerative ag”, the goal is clear: enhancing productivity and profitability while nurturing and restoring soil health and protecting climate, water resources and biodiversity.

The Cropwise™ Sustainability app is an innovative mobile app that helps measure regenerative ag practices through a range of techniques, enabling better decision-making. This free tool assesses farm management practices, benchmarks them within a given crop or geography, and identifies opportunities using the Sustainable Outcome in Agriculture Standard created by Syngenta.

“This benchmark ability is important because it meets farmers where they are and gives them meaningful insights they can act on,” says Trent Wimmer, Key Account Sustainability Lead at Syngenta. “Cropwise Sustainability opens doors for people who are looking to start or want to better understand best practices and decisions that impact regenerative ag.”

Cropwise Sustainability allows farmers to participate at the farm level. The app asks users to answer a series of questions and delivers measured outcomes. The process takes 30-45 minutes to complete.

Growers work at their own pace and identify outcome-based practices to achieve their goals. Giving growers meaningful insights into their farm’s regenerative ag information helps them see where they lead and where they lag, providing insights for operational improvement. This entry point is perfect for growers who are ‘conservation curious.’

“Regenerative ag is the new era of agriculture as it takes the best of conventional farming and the best of soil health and biodiversity, and melds them together,” Wimmer says. “This type of data validates what farmers are doing and verifies they’re doing the right things to improve climate resilience and help maximize yields.”

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From crop insurance to Farm Bill programs, multiple risk management tools are available for producers. However, working capital, the original and most effective risk management tool, is easy to overlook. Working capital is the difference between short-term assets and short-term liabilities. It measures how much resiliency or shock absorption the farm’s balance sheet provides. During periods of strong profitability and rising production costs, it’s critical to ensure that working capital levels keep up.

Recent History

Figure 1 shows working capital across all U.S. farms since 2009. Working capital tends to increase when profits are strong and then get utilized — or burned — during the lean years. For 2022, the USDA forecasts $123 billion of working capital, slightly lower than in 2021 but considerably stronger than the $65.2 billion low of 2016. For additional context, working capital reached a high of $165 billion during the previous farm income boom in 2012.

More working capital is good news. It means the sector-level balance sheet has more capacity to weather potential hiccups. However, given rising production costs, total dollars — or dollars of working capital per acre or per head — doesn’t provide a complete story.

A line graph depicting working capital in the U.S. Farm Sector, 2009-2022
Figure 1. Working Capital in the U.S. Farm Sector, 2009-2022F.

Figure 2 shows working capital relative to gross revenue. For 2021 and 2022, working capital levels exceeded 20 cents for every dollar of revenue for the first time since 2014. Here again, levels are improved from those in recent memory, but not nearly as strong compared to 2009 to 2014.

A line graph depicting working capital to gross revenue ratio, U.S. Farm Sector, 2009-2022.
Figure 2. Working Capital to Gross Revenue Ratio, U.S. Farm Sector, 2009-2022F.

How Much?

The question is always asked, “How much working capital is sufficient?” The “Farm Financial Standards Council categorized working capital levels above 30% of gross revenue as “strong” and levels below 10% as “vulnerable.” While a useful starting point, each farm must determine the appropriate levels given their unique operations, future plans, and overall risk preference. For example, an operation with a majority of acres owned and little debt might set a lower goal than operations with more debt or expansion plans.

Wrapping It Up

Working capital is often a warning light closely monitored during periods of financial stress in the farm economy. Unfortunately, producers have few options for improving their position when profits are squeezed. With 2023 in focus, producers should review their operations working capital trends and set goals based on their business objectives and risk preferences. In addition to setting goals for total dollars of working capital, it’s also important to ensure those dollar thresholds are sufficient, given rising production costs.

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David and Brent are the co-founders of Ag Economic Insights (AEI.ag). Founded in 2014, AEI.ag helps improve producers, lenders, and agribusiness decision-making through 1) the free Weekly Insights blog, 2) the award-winning AEI.ag Presents podcast – featuring Escaping 1980 and Corn Saves America, and 3) the AEI Premium platform, which includes the Ag Forecast Network decision tool. Visit AEI.ag or email David (david@aei.ag) to learn more. Stay curious.

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Aerial application of fungicides is a two-step that Suzi Palmer, of Palmer Flying Service, and Syngenta’s Kelsey Vance perform to the beat of their customer’s farm operations.

Palmer and Vance work together to deliver information on the value of aerial applications, especially for fungicides. For example, they organized a winter meeting for a retailer where Syngenta shared technical expertise, explaining how fungicides applied at early reproductive stages impact yield, while Palmer Flying Service explained the technical mechanics behind effective aerial delivery.

“The meeting fostered better understanding of how fungicides and aerial applications can improve crops,” Vance says. “The retailer’s orders — and their growers’ yields — have increased since then.”

It’s the same each season when aerial agricultural applicators from Palmer Flying Service in Manito, Illinois, take to the skies. They apply fungicides and other inputs to thousands of acres of corn, soybeans and specialty crops in central Illinois.

Most of their business comes through ag supply cooperatives and retailers. Aerial applicators quickly and efficiently cover many acres, which is especially valuable when application timing is critical or weather keeps ground rigs out of fields.

Their season starts with aerial dry fertilizer applications in the spring and wraps up with cover crop seeding in the fall. But the bulk of their business is in-season fungicide applications, with insecticides included when needed.

“About 75 to 80% of our business is applying Syngenta products,” says Palmer, who manages Palmer Flying Service.

For support, she relies heavily on Vance, her local Syngenta sales representative. Together, they make sure Palmer Flying Service delivers for ag retailers and growers.

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Constant Communication

“Communication is key,” says Palmer. “The cooperatives we work with have agronomists who know what their customers need. Our pilots need to know where the field is and what to apply. And the growers need to know when the application will happen.”

Palmer, much like air traffic control, is at the heart of that communication.

Before the season, Palmer and Vance work together, estimating product use for the area Palmer Flying Service covers. They text and talk regularly, ensuring product is where it is needed during the hectic fungicide application window.

Palmer receives orders for aerial applications from local retailers for their customers’ fields. She schedules those jobs and conveys information to the pilots. She calls growers directly letting them know when to expect airplanes to make applications. She even helps load the airplanes.

“I fill gaps between growers and pilots,” Palmer says. “For example, I called a grower to inform him an airplane would soon be on its way to spray. He needed time to move the cows in the pasture next to the field, a detail that hadn’t been included in the information from his retailer. I let the pilot know about the delay and to watch for the cows.”

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When we do have issues, Kelsey helps us find solutions. In my mind, she is Syngenta. She willingly helps with problems, even when they aren’t product issues.

Suzi Palmer Manager at Palmer Flying Service

Technical Education and Support

In May 2022, Palmer and Vance provided technical support to aerial applicators throughout Illinois. Palmer Flying Service hosted a calibration fly-in for pilots, sponsored by Syngenta. Pilots tested their application swath width, evenness of coverage and spray droplet size to prepare their airplanes for the season. This calibration improves the quality of aerial fungicide applications.

To build their knowledge, Palmer and Vance attend regional and national ag aviation conferences together. They also tag team to solve problems that arise.

“Complaints are rare because Syngenta products work well,” Palmer says. “When we do have issues, Kelsey helps us find solutions. In my mind, she is Syngenta. She willingly helps with problems, even when they aren’t product issues.”

“Suzi is a true partner,” Vance says. “We work well together to serve retailers, always in the best interest of growers.”

The friendship between Palmer and Vance goes well beyond aerial application. Their fathers attended a rural grade school together in the mid-1960s.

At that time, Kevin Palmer was growing up next to the private airport operation started by his father and a partner in 1957, while Rick Vance was growing up on the farm he eventually took over with his brother.

Kevin was fascinated by airplanes and looked forward to following in his father’s footsteps.

“I was born into aerial application,” he says. “I grew up loading and washing airplanes, doing whatever I could to be around them.”

He began flying at age 15, and he earned certification as an aerial applicator in 1987. He purchased the business in 2005, becoming the owner of Palmer Flying Service. When he needed help about five years later, he asked his daughter Suzi to join the business.

“I’m not a pilot or a mechanic, but I take care of everything else we do, from ordering and billing to unloading product shipments,” she says.

Rick Vance’s love of farming influenced his daughter Kelsey. Her Syngenta territory includes the Vance family farm, where she remains involved, running equipment and providing agronomic support.

Today, Kelsey and Suzi are married and raising their families in their hometowns, though the women are known in ag by their family names. Their teamwork ensures that Palmer Flying Service and local retailers effectively serve farmers like the Vances for generations to come.

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Tim McMillian, a seventh-generation farmer who operates Southern Grace Farms in southern Georgia, sees two challenges on his farm: one he can’t control and one he can.

“We’ve been blessed to yield well on our farm, and in my experience two things have the biggest impact when it comes to yield,” McMillian says. “The first being water, whether you get too much or too little. The second limiting factor is disease.”

The McMillian family grows cotton, fruit and peanuts. They also own Berrien Peanut Co., which prepares 15,000-20,000 tons of peanuts for shelling each season. Each peanut season, McMillian treats for white mold and early and late leaf spot. “I can remember when white mold was the primary disease that we felt like held us and our yields back,” he says.

White mold, a soilborne disease, still is a driving factor, says Wilson Faircloth, an agronomic service representative with Syngenta also known as the Peanut Doctor.

“The most susceptible parts of the plant are the stems that touch the soil,” Faircloth says. “If fungi colonize a peanut plant, they can destroy plant tissue and kill that part of the plant. Soilborne diseases can take your entire yield if they go unchecked, because they can eventually kill the entire plant.”

In addition to white mold, peanut farmers in the lower Southeast now tackle increasing pressure from a myriad of peanut disease, including early and late leaf spot.

Leaf spot diseases don’t necessarily kill the plant, but can cause defoliation severe enough to impair the plant’s ability to produce peanuts. “Every leaf is a machine, right? It’s a source of energy that sends nutrients down to the developing peanuts,” Faircloth says. “So if you start losing a lot of leaves early in the season, then you just simply don’t have enough to feed the developing peanut.”

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One of the biggest challenges with late leaf spot, for example, is damage dictating digging decisions. When leaves begin to fall off toward the end of the season and growers must harvest prematurely, it affects marketable yield potential.

Left untreated, these diseases can cause 75% yield loss or more, depending on the level of pressure in a field, Faircloth says.

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While it can be scary taking that leap, I didn’t mind switching. You’re used to putting on an application every two weeks and now you’re saying I can wait up to four weeks? That’s not a small thing. Farming is gambling anyway, but if I’m going to go big with it, I want the data to back me up.

Tim McMillian Farmer, Southern Grace Farms

“For white mold, chemistries were introduced that helped boost our yield against that disease,” McMillian says. “And today, although I worry about leaf spot and white mold, they’re less of a yield-robbing issue in our peanut fields because we have strong chemistries to control it.”

Weighing the Options

The question, Wilson and McMillan note, isn’t whether growers should implement a peanut disease control program, but how aggressive they need to be. Faircloth explains that effective control is achieved before disease appears — think preventive over reactive. A quality disease management program can cost between $85-$150 per acre, depending on products and application rates.

The question for a grower, however, is whether the resulting income justifies the investment.

“We spend about $50 more per acre on fungicides than some farmers do, but we’re making $250-$300 more per acre by spending that additional $50,” McMillian says. “Some farmers try to save that $50 and get by as cheaply as they can, but they’re yielding 1,000 to 1,500 pounds less per acre, which I believe has to do with disease control.”

Faircloth encourages growers to consider three factors when planning their fungicide program:

  • Select varieties with higher tolerance of specific diseases
  • Rotate crops to cut down on inoculum potential
  • Incorporate as many different Fungicide Resistance Action Committee (FRAC) groups as possible

Risk? Or Reward

Low-cost fungicides can be helpful at certain times during the growing season, Faircloth says. However, he sees yield results that show the most effective fungicide programs are built around the newest products and include good resistance management.

Through his research at Virginia Tech, extension pathologist David Langston, sees the economic advantages of using a mix of older and newer chemistries. “It’s good to have something like Bravo® that you can rotate and try to preserve these newer, premium chemistries,” Langston says. “But some fungicides are uniquely suited for providing a good return on investment.”

He’s seen those results in multi-product trials that include Miravis® fungicide. “It has shown not just great efficacy on leaf spot, but also excellent residual activity,” he says.

Where some other fungicides need reapplication within a 14-day interval, Langston’s trials show Miravis offers residual activity that extends out 21 to 28 days. Additionally, Langston says, growers who pair Miravis with Elatus® fungicide increase overall disease control.

“You’re picking up great leaf spot control,” he says. “Your white mold control is equivalent to the industry standard, plus it has better residual control, and it manages southern stem rot.”

In a 2020 trial1 across three locations, Langston found that each of the tested fungicide programs controlled late leaf spot, noting that a Miravis/Elatus combination rotated with Bravo/tebuconazole provided the most significant improvements to late leaf spot control, in addition to showing higher yield, compared to other fungicide programs.

Doing More with Less

McMillian grew up watching his father take risks and incorporate progressive farming techniques. This innovative background, and the fact that Miravis was backed by university research, was why McMillian tried the fungicide.

However, telling farmers who have grown peanuts for years they can skip sprays, or extend the application window, goes against patterns that have been ingrained for generations.

“While it can be scary taking that leap, I didn’t mind switching,” McMillian says. “You’re used to putting on an application every two weeks and now you’re saying I can wait up to four weeks? That’s not a small thing. Farming is gambling anyway, but if I’m going to go big with it, I want the data to back me up.”

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Many peanut farmers also grow cotton and other crops and may raise cattle, and they want to take advantage of every minute. The expanded residual activity and extended application window gives growers management flexibility they need.

“They’re trying to harvest corn; they need to spray peanuts and cotton,” Faircloth says. “If they can delay the spray on peanuts, they can spend more time on other tasks.” Residual activity also offers peace of mind when a spray is delayed as the result of bad weather, as is common in most peanut seasons in the Southeast.

Langston stresses that any spray program depends on the situation. His advice to growers? Keep it simple: Follow proven advice and don’t try to get cute and cut corners when it comes to using fungicides.

You can’t manage peanut diseases with blinders on,” he says.

Peanut Rx: Getting the Conversation Started

University researchers developed Peanut Rx, a disease risk index, for growers at a time when tomato spotted wilt virus was ravaging peanut fields, then expanded it to include other diseases. The index helps growers understand disease risk in their fields so they can make customized decisions on their fungicide program.

Plant pathologists from University of Georgia, University of Florida, Auburn University, Mississippi State University and Clemson University annually review disease pressure indices based on different factors, such as:

  • Variety selection
  • Planting date
  • Tillage
  • Plant population
  • Field history
  • Irrigation
  • Crop rotation

Peanut Rx gives farmers a path to follow to manage their risk and make performance-based decisions.

Brock Ward, a former University of Georgia extension agent who is now an agronomic service representative for Syngenta, says, “Most peanut producers now realize they’re under heavy pressure and need to plan their season with that in mind. The key is if you start clean, it’s easier to stay clean.”

Visit PeanutRx.org to assess your risk and start planning for 2023.

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No grower wants to see their fertilizer investment go to waste, so it’s important to maximize yield potential early in the season by protecting this high input cost. By removing early-season weed competition, growers maximize fertilizer inputs — helping their crops take up essential nutrients.

Weeds not only steal water and sunlight from crops, but also take vital nutrients. As fertilizer costs continue to rise, weeds will impact growers’ bottom lines in yet another major way.

What’s Behind Rising Prices?

Many factors contributed to increased fertilizer costs over the past year. “One is increased demand,” says Shawn Hock, U.S. corn herbicide product lead for Syngenta. “There were transportation and distribution challenges as well. It’s a combination of several things.”

Another thing contributing to high prices are the sanctions resulting from the continued conflict between Russia and Ukraine. Belarus is a large producer of potash, and Russia is a large producer of nitrogen and phosphorus. Both countries have struggled to get those products to the world market because of sanctions, and with more trade barriers predicted in the future, the world market may be further disrupted.

Fertilizer prices hit a 13-year high in the spring of 2022 but have slightly decreased since. Regardless, high fertilizer cost remains top of mind for many growers as they head into the next growing season.

The good news: There are ways growers can mitigate high costs and get the most out of their fertilizer investment.

How Can High Fertilizer Costs be Mitigated?

Growers may be tempted to reduce spending on other inputs, like herbicides, to offset the high cost of fertilizer. But to reach the high yields they’re striving for, a strong weed-management program is a necessity.

“In today’s world, farmers are trying to increase yields to achieve record profits,” Hock says. “However, there are a number of rising inputs costs — not just fertilizer, but also seed, crop protection, land, labor, equipment and machinery. While there’s a chance for record profit, growers are squeezed by rising input costs.”

Hock recommends that growers “leverage investment in variable expenses — like fertilizer, crop protection and seed — to increase yield potential.” An important piece of this puzzle is eliminating weeds before they steal vital nutrients, space, water and sunlight from the crop.

“I would view the control of weeds as a prerequisite to high yield and would argue that the higher the yield, the greater the negative impact of weeds,” says Fred Below, professor and crop physiologist at the University of Illinois.

Below points out that weed control starts with a good preemergence herbicide. “If you can stop a weed from germinating in the first place, then it’s not going to compete with the crop for nutrients,” he says.

Weeds reduce the crop’s access to sunlight, water, space and nutrients. A Syngenta study across 20 locations found that weeds as short as 2-4 inches consumed 13.4 pounds of nitrogen, 0.85 pounds of phosphorus and 16.8 lbs. of potassium.1  At the time of the study, this equated to roughly $24 per acre in lost fertilizer nutrients alone. The current impact is even greater with increased fertilizer prices.

In addition to using a quality preemergence herbicide, knowing when and where to place fertilizer helps unlock the full potential of the investment. “If you place fertilizer where the crop row is going to be or time it to coincide when the crop roots are available, you can improve its efficiency of uptake,” Below says.

Lastly, know which nutrients already exist in the soil and in what quantities before making decisions on fertilizer investment. A soil test indicates nutrient levels, including those of potassium and phosphorus, and helps growers avoid overspending on fertilizer. That knowledge informs growers on how best to spend their hard-earned dollars.

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Should You Invest in a Weed Control Program?

When tackling tough weeds, implementing a full-season approach is important. Starting with a good preemergence herbicide containing multiple sites of action and following up with a post-emergence herbicide with residual control helps ensure weeds don’t get established and rob nutrients from the crop. Growers can carry that momentum into the offseason, keeping the weed seed bank low.

“When it comes to weed control, growers can take a multi-faceted approach,” Below says. “There are preemergent herbicides that prevent the weed from emerging in the first place. And then there are post-emergent herbicides, meaning the weed has emerged and growers are going to make an application in-season to control that weed.”

Hock reiterates the importance of using multiple active ingredients (AI) in an herbicide program. “Acuron® corn herbicide has four AIs, broad-spectrum weed control, long-lasting residual control and excellent crop safety,” he says. “Growers can protect their fertilizer investment by keeping the weeds controlled before they emerge with overlapping applications of this herbicide.”

Hock recommends growers apply their post-emergence herbicide on their second pass before weeds come up. As an alternate to Acuron, he recommends using a foundational preemergence herbicide like Lexar® EZ, Lumax® EZ or Calibra™ herbicides, followed by a post-emergence application of Acuron GT or Halex® GT herbicides. When it comes to soybean herbicide programs, growers should consider preemergence herbicides like Boundary® 6.5 EC and Tendovo® herbicides.

If growers can’t control weeds before they emerge, Hock suggests eliminating weeds before they reach 1-2 inches. However, weeds are already cutting into a growers’ fertilizer investments and stealing vital nutrients by that point. It is also important to check labels for application directions and best practices for herbicide-resistance management.

When making decisions for the new season, high input costs may tempt growers into looking for bundles or “deals.” But reducing upfront costs may also reduce yield potential. Ultimately, the growers who produce higher yields will have the greatest profits, Hock says. That starts with quality weed control and sound agronomic practices.

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1Weed Nutrient Uptake Source: Approximately 20 Syngenta Learning Center Research locations between 2006-2008. Nutrients measured from samples taken from weeds 1-2” and 2-4” in height. Analysis completed by Midwest Labs, Omaha, NE. Period from weed emergence to removal at 1-2” in height was 10 days and 2-4” in height was 20 days. Cost of Weed Uptake Source: https://blogs.worldbank.org/opendata/fertilizer-prices-rise-moderately-2021. Calculations used 28% UAN as the nitrogen source; DAP-(18-46-0) as the phosphorus source and muriate of potash-(0-0-60) as the potash source.

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During the 16 years since Syngenta launched Thrive, American farmers and their agricultural partners have taken giant steps toward feeding, fueling and clothing an ever-changing world with greater efficiency and success. Many of the people, relationships and technologies that spurred such unprecedented growth have appeared in Thrive® magazine.

This issue is no exception. On the pages that follow, you’ll learn about the hidden cost of weeds and the benefits of aerial fungicide applications. You’ll also discover best practices for introducing new products on your farm and gain better understanding why succession planning is paramount to safeguarding your family’s future.

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Syngenta understands that you deserve nothing less than our best and brightest to help illuminate the exciting road ahead.

Susan Fisher Founding Editor of Syngenta Thrive Magazine

As one of the magazine’s founding editors, I can honestly say that sharing these quarterly informational journeys with you — our loyal readers — has been one of the greatest professional honors of my life. Since 2007, you’ve welcomed the stories we thought you’d like to hear into your homes and offices. And, sometimes, when you allowed us to tell your story, you were the featured hero in print whose talents and hard work positively impacted your community and set the stage for a better tomorrow.

But, over the years, like the industry on which it reports, Thrive has advanced technologically and is poised to turn the page to a more robust, easily accessible digital-only format. While this inevitable transformation marks the end of the print magazine, its companion website, SyngentaThrive.com, will build on its success with more breaking news, stories from the farm, videos and interactive content — all readily available to you on your computer, tablet or smartphone.

Admittedly, saying goodbye to Thrive print magazine this quarter is bittersweet for those of us who helped bring its pages to life. But a new day is dawning for SyngentaThrive.com, with an editorial and creative team that is more committed than ever to delivering the information you need to succeed in today’s fast-paced, complex marketplace. After all, Syngenta understands that you deserve nothing less than our best and brightest to help illuminate the exciting road ahead.

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It’s no secret that production costs will be significantly higher for the 2023 growing season. In the Midwest, the cost of raising a bushel of corn will exceed $5.50 per bushel next year, up from just $3.97 in 2020. Fertilizer remains an enormous source of the upturn, but pressure comes from nearly every budget line item.

Producers usually don’t have much flexibility to offset rising expenses. However, these three strategies help producers progress toward long-term goals despite higher costs.

#1. Be Aware of Availability Bias

Because readily accessible prices have an outsized impact on our thinking, most of us notice rapid cost changes quickly. For example, gasoline prices are posted on signs and updated daily. Prices for other goods and services, such as mowing your lawn or getting a haircut, aren’t nearly as visible. This is known as “availability bias” and occurs when the most readily available data impact perceptions. It’s no surprise managers often focus on categories with readily available prices.

Figure 1 shows the allocation of total production expenses, averaged back to 1991, for a 50:50 corn and soybean rotation in Indiana. Consider the fertilizer, seed, and pesticides category which accounted for 27% of total production expenses. The size of this slice undoubtedly varies from year-to-year and looks different in corn than in soybeans, but the idea is that farm managers may spend considerably more than 27% of their attention on these expenses.

A pie chart showing total expenses as percentages for high-quality Indiana farmland in 50:50 corn and soybean rotations
Figure 1. Percent of Total Expenses, High-quality Indiana Farmland. 50:50 corn-soybean rotation, 1991-2022.

#2. Mind Fixed Expenses

The left side of figure 1 shows the fixed expenses: family labor, land, and machinery. Collectively, these expenses account for the majority cost (59%) of raising corn and soybeans and present a few unique management challenges.

First, prices for family labor, land, and machinery don’t typically post and update regularly. For instance, a farm’s annual machinery expense is the depreciation, interest, repairs, taxes and insurance expenses of several pieces of equipment utilized over several years.

Second, fixed costs are challenging to calculate, measure accurately and incorporate into budgets. These costs may be predictable two or three years out, but initially measurement is challenging.

Third, fixed expenses can be tough to adjust lower in the short run. For example, a three-year cash rental agreement signed when corn is $7 per bushel will take years to renegotiate if corn prices suddenly change.

#3. Consider a Long-run Strategy

Producers know that those with the lowest cost accrue significant advantages in the long run. In other words, those with the lowest per-bushel cost are usually the most profitable. So the question is “how can producers create and maintain a long-run cost advantage?”

It’s important to sharpen the pencil across every category, but in most cases producers find the greatest differentiation and cost advantage within fixed costs. Alternatively, fixed costs tend to create long-term disadvantages.

Availability bias tempts producers to pursue a 5% – 10% advantage on variable expenses, while potentially overlooking more significant opportunities in fixed expenses. In addition to being a large share of total expenses, fixed expenses may offer a greater chance to find a 15% – 20% cost advantage.

Wrapping It Up

The allocation of costs looks slightly different for each commodity, but management implications are consistent. First, availability bias is a powerful force often focusing attention on variable expenses. Second, fixed costs are difficult to track but important to monitor in periods of rising prices. It can take several years to lower fixed costs if they get too high. Finally, producers should examine all categories to create and maintain long-term cost advantages. Often, it’s the categories that are hardest to measure and benchmark – such as machinery or family labor – that provide the biggest source of opportunity.

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David and Brent are the co-founders of Ag Economic Insights (AEI.ag). Founded in 2014, AEI.ag helps improve producers, lenders, and agribusiness decision-making through 1) the free Weekly Insights blog, 2) the award-winning AEI.ag Presents podcast – featuring Escaping 1980 and Corn Saves America, and 3) the AEI Premium platform, which includes the Ag Forecast Network decision tool. Visit AEI.ag or email David (david@aei.ag) to learn more. Stay curious.

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The passing of the head of the family is an emotional event, but when that transition also includes an agricultural business and decades of family tradition, it has even larger implications. By planning in advance for the farm’s future, farmers can protect relationships, finances and the family legacy.

Cari Rincker is an Illinois attorney whose firm, Rincker Law, PLLC, specializes in helping families plan for farm succession. Coming from a farm family herself, Rincker’s experience with farm succession issues is more than professional.

“My father is a farmer, and he’s looking at gradually reducing the time he spends doing physical labor,” she said. “So, as we go through that transition, we’re starting to have more conversations about what’s next.”

It can be difficult to talk to a loved one about the farm’s future, but such conversations lay the groundwork for a smoother transition from the owners to the successors, Rincker says.

“The law is one thing, but every family has its own dynamics,” she says. “When you’re talking about money, business and family, a lot of raw emotions can come up, and balancing all that can be quite a dance.”

Having a neutral third party in the room — or on the video conference — can help in those situations, she said, noting that farm succession mediation has become more common over the last 10 years.

Three overlapping components are important in plotting a farm’s future: estate, business and succession planning.

Estate planning may include making a will or trust to distribute assets to the intended beneficiaries, whether it’s a farm-specific asset or a more standard personal inheritance.

“I recommend trusts because assets in a trust don’t have to go through probate — they pass to the beneficiaries instantaneously,” Rincker says, noting that a will can take a year to go through probate before the assets are released. “I also recommend a trust because it’s private. It doesn’t ever become public record.”

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Don’t try to have this perfect estate plan right off the bat. Just get something in place and then perfect it over time. Because even if you don’t have a will or a trust, there is still a plan.

Cari Rincker Attorney, Rincker Law, PLLC

Business planning includes making the farm a business entity, such as a limited liability company or corporation, to help protect assets.

“A farm or ranch should consider becoming a business entity to reduce personal liability,” Rincker says. “General partnerships and sole proprietorships don’t protect the land or personal assets in a lawsuit.”

Succession planning, on the other hand, spells out who will assume the farm’s operation and in what roles.

“This is the transition of management and knowledge from one generation to the next,” she says. “It’s probably the most delicate aspect, but also the most important. Without that, it doesn’t matter how great your estate plan and your business plan, you’re not going to succeed in passing the farm business to the next generation.”

Expect the Unexpected

Andrew Branan, an attorney-turned-professor at North Carolina State University who focuses on farm succession planning, says the plan needs to include not just how the farm will pass to the successors, but what happens if, ultimately, it doesn’t.

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“One of my successes as a lawyer was a failure of succession,” Branan says.

Branan recounts working with a client who wanted to gift a percentage of his large, profitable operation to his two sons. His client’s plan included a provision for what would happen to those assets if the sons’ plans changed.

“A year or two later the client called and said his sons were leaving,” Branan says. “Fortunately for dad, he was able to hold on to the wealth — his operation wasn’t injured by having two of the principal players pick up their marbles and go.”

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Both Rincker and Branan note that the planning components are living documents that should be reviewed and revised as necessary, and that information gathering can be carried out by families while the legal documents are in the works. Basic operation manuals, written procedures and redundancies in access to everything from building keys to account and policy numbers prepare heirs and employees both for the future and for unforeseen events.

“Sometimes I get terrified thinking, ‘If something happened to my father, am I going to be able to find the FSA numbers or get all the details in order to deal with the growing season?’” Rincker says. “I think those are details families need to work on.”

Perhaps most important of all, Rincker says, don’t let perfect get in the way of good.

“Don’t try to have this perfect estate plan right off the bat,” she says. “Just get something in place and then perfect it over time. Because even if you don’t have a will or a trust, there is still a plan — it’s just the plan the law in your state has given you. I think we’d all rather have the autonomy to decide for ourselves how things will pass to the next generation.”

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Women increasingly aid agricultural transformations with their valuable perspectives and work. According to the 2017 USDA census of agriculture, 36% of United States farmers are women and 56% of all farms have at least one female decision-maker. Aside from their growing on-farm presence, women play key roles across agriculture, including the development of new crop protection technologies.

Janet Tarus, Ph.D., senior group leader in analytical development and product chemistry at Syngenta, was born and raised on a family farm in Kenya. Tarus came to the U.S. to complete her graduate studies at Louisiana State University and earned her doctorate in chemistry in 2004. She now works with the analytical development team to develop new methods to analyze crop protection products for quality, efficacy and reliability. “We’re constantly looking for ways to innovate and deliver better products to growers more quickly,” she says.

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Networking with other female farmers can help women navigate more effectively in this rapidly changing environment — and make better decisions.

Janet Tarus, Ph.D. Analytical Development and Product Chemistry Leader at Syngenta

Tarus embodies the Syngenta commitment to women in agriculture. She serves as a mentor to other women in ag and demonstrates the value that a global mindset brings to product development.

“One of the challenges women, and all farmers, face today is the sheer volume of information available regarding agricultural products and practices,” Tarus says. “Networking with other female farmers can help women navigate more effectively in this rapidly changing environment — and make better decisions. Working together, women can be a force in farming.”

With a goal of overcoming gender bias in the workplace, Syngenta provides opportunities for women through a commitment to diversity, equity and inclusion. Syngenta actively supports industry events, such as the annual Women in Agribusiness Summit, driving awareness and encouraging women pursuing agricultural careers.

International Women’s Day is celebrated on March 8 to recognize and empower the women who help drive industries. Learn more at www.internationalwomensday.com or join the conversation on social media with #WomensDay.

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