As we begin the year, producers are making plans for the 2016 growing season already.

Hopefully soil tests have been taken and yields from 2015 will serve as a guide to plan for the next crop. Farmers are the eternal optimist, always ready for another year, even when the previous year was not very good.

Consider that 2015 presented many challenges for our local farms:

- Milk prices dropped considerably.

- Beef cattle producers saw prices go in the tank during the fourth quarter of the year.

- In June, it rained so much that hay harvest was impossible.

- In August and September, it never rained — so it seemed.

- Sweet corn production was reduced substantially.

- Soybeans across the county were not close to average yields anywhere — maybe the worst ever.

- Corn was variable unlike soybeans, some fields were good and others were poor.

- Crop damage from wildlife seems to increase every year.

- One bright spot was the late, dry fall permitted an additional hay harvest if it was worth cutting.

The list could go on and on, but for the most part, producers are ready to move on with 2016 and hope for a better year.

Fertilizer and seed orders along with lime and manure application planning is now being completed. Producers are planning what crop to plant in each field and now is when it begins.

[naviga:h3]Commodity Loans[/naviga:h3]

Producers may want to consider a nine-month commodity loan on this year’s stored harvest.

The commodity must be stored on the farm, not in a commercial storage bin commingled with other producers’ grain.

Remember, the grain is the collateral. Commodity loans are a popular option for operating capital because the interest rate is so low. The rate for loans approved in January is 1.625 percent.

Listed are more details about the commodity loan program.

- Eligibility — Reported crop production on any farm. A timely filed complete acreage report is required. Conservation compliance rules do apply.

- Terms — Matures in nine months and proceeds are deposited directly into your account.

- Repayment — Any time during the loan period before selling or feeding a payment can be made.

- Collateral — The grain pledged for loan is the collateral. It may not be fed or sold without first repaying a specific quantity or obtaining a marketing authorization before selling.

- Storage — Grain must be stored in an approved structure for on farm storage. Warehouse stored grains are also eligible if stored at an approved government warehouse.

- Corn — It can be ear, shelled or stored as high moisture. Corn silage is not eligible.

Please allow a little more time this year than the usual 1 to 2 days as the loan program software has changed. Suggested lead-time is a week.

Luke Fritz is executive director of the Butler County Farm Service Agency.