Why does AdFarm have a farm in Ghana?

By admin, May 13, 2013

By Richelle Matthews

In March, AdFarmers and representatives from partner organizations like Farmers Feeding the World traveled to Ghana. Here, AdFarmer Roger works in the Ghana field.

In March, AdFarmers and representatives from partner organizations like Farmers Feeding the World traveled to Ghana. Here, AdFarmer Roger works in the Ghana field.

I often find myself asked one question about AdFarm’s farming initiatives: “Why does AdFarm have a farm in Ghana?” To many people it seems slightly odd, considering we are an agricultural marking and communications company in North America.

Here’s the tie: AdFarm’s mission is to be “a catalyst for the advancement of agriculture.” With an increasing globalized marketing place, and continual concerns about the growing demand for food, we can’t ignore developing economies. 40% of the world’s population (roughly 2.6 billion people) are small scale farmers (Greenpeace 2010) That is a lot of people!

AdFarm is digging in and farming alongside Ghanaians. In partnership with a local organization, Praxis Africa, we are farming 100 acres of rich, fertile land. So far 7 acres are clear and we have planted and harvested maize. The clearing process is going slow. The land is heavy with brush, and we are doing it by hand.

We plan to add some cassava (roots that are used to make gluten-free bread) and plantain. Our farm has some chickens, and livestock pens to add some goats and snails. Later this month we will be planting paw paw (a local fruit). AdFarm Ghana is full of opportunity!

There have been many ups and down on this adventure so far, and we are excited about the new friends we have in Ghana, the community we have become a part of, and the lessons we are learning!

If you’re curious about AdFarm Ghana, as well as our farms in North Dakota and Alberta, you can check out our AdFarm farms page here. Stay tuned for more updates from Ghana, and our other farms!

Final 2010 N.D. farm report: $38/share profit

By North Dakota Farm Boss, May 5, 2011
Learning pays. Sometimes learning pays big.
The 2010 growing season was fantastic for AdFarm North Dakota shareholders in terms of first-hand, vested experience in crop development, management and marketing. Shareholders and 2011 prospective shareholders learned the results of last year and this year’s plan during a meeting in Fargo last week. Highlights include:
Shareholders tune in to the 2010 farm report.

Shareholders tune in to the 2010 farm report.

  1. Corn was the right crop in the right year:
    •    Excellent growing season
    •    Right genetics for our land
  2. Dramatic changes
    •    In July, China lifted their former policy banning corn imports. In October, the USDA lowered their estimated U.S. corn yield.
    •    As a result of these two factors and continued strong demand for corn, the   corn market continued to move up, and we sold our final corn in February at $6.00/bushel
  3. Our corn yield was 9,105 bushels
    •  Yield: 130 bushels/acre
    •  Avg. selling price: $4.83/bushel
    •  Breakeven price
    –  120 bushel/acre
    –  $3.15/bushel
  4. Our yield compared favorably:
    2010 corn yield bu/acre
    U.S. average 152.8
    N.D. average 132
    Griggs County(including irrigation) 135.8
    Nelson County(no irrigation) 112.2
    N.D. AdFarm 130.1

    This was the highest profit ever and the 10th year of the AdFarm N.D. experience

    Loyal shareholders like AdFarm Fargo’s Jeff Reed were rewarded nicely, with the largest profit ever.

    Loyal shareholders like AdFarm Fargo’s Jeff Reed were rewarded nicely, with the largest profit ever.

Check, please
Yes, that translates to a profit of $38/share. Plus the $25/share investment last spring, shareholders received checks for:

1 share at $25 + $38 = $63

2 shares at $50 + $76 = $126
3 shares at $75 + $114 = $189

Loyal shareholders were rewarded nicely. Those who took advantage of the buy 4, get 1 free offer received checks for $290.01. (And one penny!). An investment of $100 + $152 + $38 bonus share= $290.01

In the words of AdFarm Fargo’s Jeff Reed, “Last year was amazing for a few reasons. Everything went the way we always would hope it does from the weather to China opening up and importing corn. As a farmer you know that this just doesn’t happen every year, but when it does, it sure feels good. Kudos to Robbie Lukens for using his psychic powers and hard work getting all the corn in a day before we got 4 inches of rain. Now I can’t wait to see 2011 unfold.”

During the meeting, someone asked, “Why did we sell at $3.30 and $3.40 bu/acre?” Cooperating Farmer Fred Lukens answers: Our projected breakeven at a projected yield of 120 bu/acre was $3.20. The Marketing Committee agreed that both $3.30 and $3.40 were above our breakeven and were good selling prices for corn compared to the previous year’s corn selling prices.

During the meeting, someone asked, “Why did we sell at $3.30 and $3.40 bu/acre?” Cooperating Farmer Fred Lukens answers: Our projected breakeven at a projected yield of 120 bu/acre was $3.20. The Marketing Committee agreed that both $3.30 and $3.40 were above our breakeven and were good selling prices for corn compared to the previous year’s corn selling prices.

Last year’s marketing committee was guided by Cooperating Farmer Fred Lukens and relied on Weatherplanner for help in crop selection, and Grain Marketing Advisor Mike Krueger of The Money Farm for in-season crop marketing information.

Next up: Our 2011 plan. Hint: Back to soybeans.

Farmers, how was your 2010 crop? What factors affected your yields and marketing strategies? What’s your 2011 plan? We’d like to hear about it.

Corn prices are down; Now what?

By North Dakota Farm Boss, December 8, 2010

‘Tis the season for…patience

Corn prices have gone down in the last few weeks, from $5.15 locally to $4.35. No reason to worry for AdFarm North Dakota shareholders, however.

Since August, corn (and soybean) prices had been soaring on news that U.S. grain yields were down and supplies around the world were tighter than anticipated. Yet during a few weeks in November, corn prices dropped dramatically. Why?

This year’s marketing committee takes guidance from Grain Marketing Advisor Mike Krueger of The Money Farm. He, and other proven grain marketers, believe that this drop in corn prices is a result of:

  • Increases in the price of the dollar
  • Funds
  • Computer trading
  • Rumors that China had less corn than expected due to early frosts in its main grain-growing region and was threatening to raise domestic interest rates or implement price controls

Most believe market will come back
The marketing committee met on November 23. With input from Cooperating Farmer Fred Lukens, the group continues its patience guidance, which includes:

  • Predicted stocks-to-use ratio is about half what it was three years ago when corn hit $6.50 locally
  • We sold 4,000 bu of our corn at average price of $3.35
  • We have the balance of our corn scheduled for January delivery with a locked in basis of 75¢
  • December is not a market-moving month
  • Our breakeven at the 145 bu yield level is around $2.90/bu
  • We’ll make our final sale decisions in January

Still in the bin

This year’s crop of about 10,100 bushels of AdFarm corn, Pioneer 39D97, remains in the bin. Fred says: “The grain is in good shape. With the cold weather, we’ll shut off the fans soon.”

Patience = profits

Meanwhile, remain patient, AdFarm shareholders. And have a lovely holiday season!

Farmers, how is your grain marketing going? What’s your take on the markets? We’d like to hear about your grain marketing moves.

Our ND corn is in the bin

By North Dakota Farm Boss, October 19, 2010

Shareholders, rejoice.

Harvest is done on our AdFarm N.D. acres and about 10,100 bushels of AdFarm corn, Pioneer 39D97, is in the air bin. The moisture sample was 19.3%, which is low enough for air bins.

“The yield was good, although it’s a guess with wet corn,” explains Cooperating Farmer Fred Lukens. “Shrink is about 6% for 19.5% corn dried down to 14.5%, according to North Dakota State University (NDSU). My 10,100 bu estimate is ‘after shrink.’ This would put us in the 144 bu/acre range.”

Of course we won’t know the exact bushels until we deliver it to the elevator. With good weather, the corn in the air bins will be dry by the end of November.

Profit is no problem

This year’s marketing committee has taken these steps to achieve profits for shareholders:

  1. Sold 4,000 bu of our corn at an average price of $3.35
  2. The rest is yet to sell. Right now, January delivery basis locked in at 75¢

Our price today for Jan. delivery would be $5.00/bu, yet corn prices are still going up, so the committee will look at the November USDA report, watch the markets and set the final price as the corn finishes drying

Shareholders, don’t spend your profits yet, but smile at your smart investment.

Check out our beautifully barren, freshly harvested field at Fred’s own blog post.

Farmers, how is your harvest going? Do you know a farmer with corn in? How’s it looking? We’d like to hear about corn harvest around North America.

Two days of farming reality

By admin, October 18, 2010
I live in North Dakota, however, my family farms potatoes in 11 different states. My dad asked me if I wanted to go with him and my brother Eric for a two day tour. The trip was essentially just to check the farms out, kick some tires, and see some spuds. I ended up learning a lot more than I expected.

 

Winamac, IN – Finishing up harvest

We arrived in South Bend, IN and drove to the farm outside of Winamac, IN. The farm manager, production manager and agronomist met us right away.

We talk for a while about land and availability, and the cost of leasing due to corn prices. We go out back, and there is equipment everywhere. A new equipment shed is needed.  There are issues with land availability around the farm – so the dimensions and direction will have to be adjusted, there will need to be an additional over-hang off of the current line-shed, and we’ll need to move some electrical poles. Next, we go out to the fields.

In order to diversify, Black Gold is now planting sweet potatoes at a few of their farms.

In order to diversify, Black Gold is now planting sweet potatoes at a few of their farms.

The first field will yield 575 bags per acre (350 bags were budgeted). The next field was a little less than stellar, but still above yield budget – we are a little nervous however, because we need to dig them soon before disease sets in with this particular variety, so it’s important that we get some orders within the next week, or quality will go down dramatically.

Then, we go to the sweet potato field, a new crop that we’re trying this year at a couple farms to diversify.  We dug a few samples and discovered that there was a rodent doing some major chewing damage. This was something that we needed to look into – was this common with sweet potatoes? What exactly was it? Was it only in Indiana? We don’t know.

Black Gold Sturgis, MI – Harvest is in full swing

Black Gold Sturgis, MI – Harvest is in full swing.

Sturgis, MI – Harvest is still in full swing

When we get to Sturgis, there were about 10 trucks waiting to be loaded, and spuds moving smoothly through the line. We quickly headed out to the field where they were digging. Potatoes filled the harvester – they estimated it is about a 600 bag per acre field.

With this variety, there are a ton of vines, so the harvester has a tendency to get plugged up – with a 600 bag per acre yield; it’s worth the extra work. My dad mentions that the potatoes we’re seeing will be on the shelves within 48 hours as chips.  

These potatoes will be on grocery shelves as chips within 48 hours of harvest.

These potatoes will be on grocery shelves as chips within 48 hours of harvest.

Then, a neighbor came out of his house and told the farm manager that the filed trucks were driving too fast by his house – oops. We were off to lunch. This is where the farm manager let my brother and dad know what all needed to be done to be successful. “I really need an extra planter, I’ll probably be able to increase acreage if I did” and “I need a full-time agronomist and a guy who knows how to fix the wash-plant”. He gave a report of land availability for next year, and we took off.

VP of Operations – Hiring top talent

We go back to Grand Forks, and I got into my car to drive the 70 miles south to Fargo. My other brother John called to check in to see if I survived with Dad & Eric for 2 days. He began to tell me about his day: He had 2 sweet potato researchers come from Louisiana to the farm in Arbyrd, MO, as well as a sweet potato harvester mechanic, that was training in the new sweet potato manager. He also spent the day working with several head-hunters to hire a table stock manager, someone who knows potatoes, the channel, and retail.

Farming and then some

These two days put things into perspective about what farmers and producers – of any shape, crop or size have to deal with. There is constant decision making, analyzing, planning and execution on a daily basis that can have huge impacts. All of this, while being an advocate for family farms, catalyst for agriculture and educator in food production – not to mention being a family member, a community member and a Bison football fan.

As we were driving in Indiana, my brother looked out at a combine in a soybean field and said “Sitting in a combine all day would almost be better than a day off”.  At the core of this potato farming chaos, it’s still farmed by farmers, and that’s what farmers love to do.

What do you think would be better than a day off?

Leah Brakke is an Account Manager for AdFarm in Fargo, ND. Follow her on Twitter @LeahJoy