Rising tide.

"A rising tide raises all boats" is an old saying that can be applied to the Agricultural economy in 2004. Certainly not every sector of agriculture or every individual producer shared in the overall enhancement of the "bottom line," but it is refreshing to see the "LDP" years in the rear view mirror. The volatility of the commodity marketplace can create some interesting challenges: however it is universally believed that at least volatility provides opportunity for gain, as prices are stable only when they are low.

There are few times when both the livestock producers and grain producers experience favorable prices at the same time. This year we have seen cattle prices set record highs and nearly $30 per hundred over previous years and that means hundred of millions of new net dollars to the industry. Our 10 billion bushel 2003 corn crop is worth billions more dollars; our 3 billion bushel soybean crop is worth billions more dollars. Even the dairy farmers that had seen years of "stable" and depressed milk prices have seen their product's value increase over 50%. As a politician once described the federal budget by saying "a billion dollars here and a billon dollars there and the first thing you know It's Real Money."

There is one thing about farmers and ranchers that has always held true, and that is they rarely save any newfound wealth. These "created" dollars are immediately reinvested in a variety of products and services from new tractors and equipment, additional crop input products, improved technologies to new livestock facilities and maybe a new pickup truck. There has been a pent up demand building since 1997 and we're now seeing that economic infusion to bring new vitality to the entire agricultural community.

Unit volumes and financial reports being published by major agricultural companies are VERY strong. Here are some examples: Monsanto reported that as a result of strong sales of herbicides and genetically modified seeds, their net income increased 45% while total revenue was up 14%. John Deere announced record world income with six-month sales of $648.1 million compared to $324.9 million in the same period last year. At Case New Holland the story is much the same as their value of CNH stock has increased III.66% in the past year. The Association of Equipment manufacturers reports that in the period of January thru May 2004 sales of 100HP and over tractors was up 35.4%, Four Wheel Drive tractors up 20.6% and Combine sales were up 50%.

Do we see a trend here?

New technologies in genetics, seed inoculants, chemicals, irrigation systems, animal health products, and electronic technologies/GPS systems as well as other products and services marketed to agricultural producers will certainly be purchased. Radio Farm Broadcasting is certainly in a position to communicate the agricultural marketer's message in this competitive environment. The intense advertising and marketing season to reach farmers and influence their purchasing plans is during the "harvest" season when farmer's time is in high demand. The 2004 AMR Qualitative research shows that 78.8% of corn & soybean producers INCREASE their use of radio during this time period while spending less time with all other media. Farm Broadcasting and producers are linked as tightly as ever as the most valuable living bridge between agricultural markets and producers.

Gene Millard, Director of Marketing, NAFB