Young Farmers - Part 3 in a Series
Brent and Ashley Reed of Nappanee are full-time farmers and grow corn and soybeans on their family farm. Brent's family has owned the farm since 1886, making him a fourth-generation farmer.
"When he knew he wanted to farm right out of high school he had the opportunity to kind of take over," Ashley said. "His dad was wanting to slow down, so he had the opportunity to take over some of what he was farming and kind of get into it gradually."
Ashley is also a fourth-generation farmer and grew up in Roanoke. Her family farm raised corn, soybeans, wheat and earthworms.
"I always wanted to be a part of agriculture and going away to college kind of solidified that," Ashley said. "I knew what it was like to be away and I still wanted to be back on the farm."
The Reeds said one of the biggest challenges for young farmers today is the cost of equipment and land. Commodity prices have dropped by nearly half, but other input prices have remained the same making farming a financial risk, especially for those just getting into farming.
One way they are cutting back on costs is doing their own maintenance on equipment instead of trading in for new. Their combine is eight years old and they could have traded it in for a used combine that would cost $100,000. Instead, Brent is rebuilding their combine and he estimates the cost to be only $15,000, a fraction of the price.
"We haven't been purchasing really any equipment," Brent said. "We just keep what we have and do a little more maintenance."
One goal the Reeds have is to do more with less. Land is a hot commodity, so they try to get the most out of the land they do have. One way they do this is by striving to keep their soil as productive as possible.
"We've been using cover crops the last few years," Brent said. "We want to leave the soil just as good, or better than when we started farming for the next generation. I can see that that's going to be a big benefit for soil health—keeping our inputs in the field not the water stream."
The Reeds' advice for other young farmers is to make sure you know how much work needs to go into a farm. They need to have knowledge of the business side of things as well as the physical work.
"It's not just driving a tractor out in a field," Brent said. "There's much more to it than just driving tractors around."
Brent's dad still helps out on the farm where he can, and serves as a mentor to them. They also get advice from Ashley's parents.
"Women in ag are still kind of the minority," Ashely said. "There's a lot more than there used to be, but growing up I didn't know any different. My mom worked in the fields and she was on the farm every day. I think sometimes mentally we put up our own obstacles and I never really had that obstacle because I didn't really know any different."
Brent had the opportunity to acquire farmland over time while his dad was still farming, but their land is still growing. They rent ground from other farmers and buy from those who have retired and didn't have someone to pass it down to.
To find buyers for their commodities, Brent said he watches the markets on the Chicago Board of Trade price. When the time comes to sell, he determines who has the best bid then goes to that buyer. For their organic crops there are many buyers that will reach out and offer to buy from them.
"A lot of that marketing is knowing you're break even, knowing what you need to run your farm for the next year and pulling that trigger when it happens," Ashley said. "It's really easy when it goes up to say, 'Oh it, might go up more,' and not sell it. But you could also lose money too."
"In 2012-13 we sold corn for $7 to $8 and now if we get $4 we're happy," Brent said. "Now we can only get about $3.25."
The Reeds said they love farming because it allows them to work together as a family. There is variety in their day-to-day work and they enjoy spending time in the field.
"Most days it's more like a hobby than work," Brent said.