Connection Spring 2016 | Page 6

FROM THE MANAGER Dear members & patrons S eems like we are still trying to get over the sting of last year’s agricultural yield and prices woes and next year’s planting season is already on us again. As of February 15, 2016, many acres of corn have gone in the ground. Preliminary acreage reports show a large increase in corn acres with a significant increase in cotton acres while grain sorghum acres will be down. We think this is purely driven by economics and risk. Most of our producers feel that they can produce 5,600 pounds of milo per acre. This, coupled with the invasion of the yellow sugarcane aphid that hosts on grain sorghum, the possibility of not having the use of one of the major insecticides that controls the pest, and concern for a rain event at harvest causing sprout damage or loss, have been the most important items that cause our producers to switch to corn and cotton. Last year, with China importing large quantities of grain sorghum. The basis were extremely high. This year, we expect basis levels of milo to be 30 to 40 cents per bushel under corn. Our crews have been busy repairing our gins and elevators and are ahead of schedule on these repairs. We did get our deer corn bagging plant up and running and are turning out a clean, dustless, high quality deer corn. Delays in plant construction caused us to miss most or all of deer season, but we have made inroads into the deer corn market. Our brand is United Ag High Caliber Deer Corn. This facility will add value to all producers’ grain crops that are delivered to United Ag’s elevators. In our tire and tire service division, we have also purchased scales to make sure the tires we sell are inflated right to get the most efficient use of your tractors. By weighing producers’ tractors with the equipment that will be attached to it, we can accurately inflate tires to get the least wear and most pulling efficiency. Different equipment calls for different inflation pressures. Tires that are underinflated wear out more quickly and cause more slippage in the field. Ask our tire department about the use of ѡ