Meet Donald Oesterle - one of 2024's Farmer Conversations

Hi everyone, this is Paul Yeager and this is the MtoM Show podcast, a production of Iowa PBS and the Market to Market TV show. It's time to meet our second farmer for the 2024 growing season, and we're going to go to Michigan. And we're going to go to the mitt, right in the center of the mitt. Mason, Michigan is where we're going to find Don Oesterle or Donald, I'll refer to him in both he farms with his brother, who they both farmed with their father and grandfather, and now the kids are getting involved. So we're going to lay out the family lineage here in the Michigan area for Don and his family. And our connection comes via Angie Setzer, market analyst on the TV show Market to Market. So thanks to Angie, we'll start talking about her in a minute. But we're gonna find out a little bit about the crop makeup. And I do have a question in the middle when I talk about sentiment in there surveys, sentiment surveys, I didn't do a good job of explaining that to Don. So my apologies there. And we hope you stick with us for this series. We'll talk again in the middle of the growing season. And then at the end, if you want to go back and watch any of our episodes you can like and subscribe and then go into the archives and find out what we've been chatting about. Through the world of agriculture feedback for me, that's easy to do. Send it in an email to Paul.Yeager@IowaPBS.ORG. Now let's get to meet Don Oesterle. The first question is, and she sets her really nobody else would take your money. What's your relationship? What's I know what my relationship is like with the goddess of grain? Don, what's yours?

Don Oesterle: Ah, so technically, technically, she works for me, but we're more or less friends. So we touch base probably once a week, at least during the slow periods. Just that and see what's going on with the market. 

[Yeager]  What have the conversations been like? The last two to three years when nothing seems to be normal? 

[Oesterle]  Oh, well, the last two, three years we spent the time usually talking about how we got it wrong from the time before when we talked? Or like, is it going down? Well, we think it's going down. Nope, it didn't go down. It went up. So we were Angie's probably better. But I am notorious for being on the wrong side. 

[Yeager]  That's when she comes back and says..

[Oesterle]  Oh, help me out. Yeah, no, she doesn't say I told you so. He gets me leaning in the right direction. So when I say well, I got a good idea. She was like, Yes, sure. That's an idea. But let's not be sure it's a good one.

[Yeager]  What is, let's just set it up. I guess before we get back into more of you. Let's talk about you. Don, where are you? Where are you located? 

[Oesterle]  Yep, so we're located in Mason, Michigan, which is just south of Lansing. Basically the right in the middle, almost in the middle of the state. And so Oh, it's raining right now. See?

[Yeager]  That's the fun weather of Michigan, right? 

[Oesterle]  Yeah, we are cloudy and rainy. Or we're dry and cloudy. So, um, but yeah, we're in the middle. We've got pretty decent dirt here. Not like the mid-mid Midwest, but we got pretty decent soil here. So it's fun to farm here.

[Yeager]  What is the farm makeup then?

[Oesterle]  So we have corn, soybeans, wheat, alfalfa, we raise a little bit of canola. And we also have a feedlot.

[Yeager]  Big feedlot are one of them hobby lots?

[Oesterle]  Ah, pretty big for around here. It's 1500 head of Holstein steers. So not big for probably around your area but it's pretty big for around here.

[Yeager]  It's big enough for anybody that's nothing to sneeze at right there. And I'm guessing that might be one of those reasons. You're always having conversations with Angie.

[Oesterle]  Yeah, yep. And it was really nice when Karl entered because we get a little more on the cattle side now. So that really helps me out.

[Yeager]  What have the crops been like the last year's crop? Did you catch enough rain? Always used more?

[Oesterle]  Last year we caught enough rain. We've had one dry spell for about five weeks. The end of May 1 part of June. That really basically anything that was planted after May 20 really didn't come up till Around the last week in June, so we saw a huge decline in yields for that last portion of the crop that was planted. Even though it was planted in a decent time around here, you know, May, May 22, May 24. It just sat there in the ground. So beans took a really big hit off of that, because bean corn managed but beans took a big hit.

[Yeager]  Beans always are that whole like they don't like wet feet cold feet. They just don't take if they don't take off they struggle.

[Oesterle]  Yeah. And that was a problem they didn't take off. So then they that portion of the farm just out of the ground just struggled all year, what the beans were down a little bit.

[Yeager]  What is usually the first day of planting for you for corn or beans?

[Oesterle]  So we'd like to start anytime after April 15th. So if we actually thought we'd be going today, but then the weather changed. And it rained last night and is sprinkling again right now.

[Yeager]  Is there anything in the ground?

[Oesterle]  Yeah, we got 44 acres of hay in the ground. Okay, the spring day. But that's all we've got. A few of the neighbors got some west of us got a little bit in there is there now, the I don't think you can call anything in the ground because it's just basically a few guys got the planter going to make sure it worked. And that's pretty much around here. 

[Yeager]  And you were hoping to be that one today to get rolling, make sure things worked. 

[Oesterle]  And yeah, we're hoping that one today to get rolling. But no Mother Nature had other plans. 

[Yeager]  Are you by yourself? Or do you have help? Family wise?

[Oesterle]  No, we have a lot of family involved. So I have a twin brother, he's partner and my dad were partners in the operation. And then I have both of our wives work for the farm. And then there's my son, Russ's son, and my daughter worked for the farm. So we have now you can come back and add up that's a lot.

[Yeager]  And how old are the kids that are in now, that third generation. 

[Oesterle]  So they're just finishing? Up? College so what, 20, 23. I can't let my wife watch this now that I had the ages.

[Yeager]  We won't worry about the ages. And I want to ask you names or anything like that was the plan is gone when they went away to come back?

[Oesterle]  Yeah, so they actually go right to MSU here. And well, my nephew, he got agribusiness management degree from Penn State. But he just did that online because that started with the whole COVID time. And then my son is getting a Crop and Soil Science degree from MSU. And my daughter has a livestock degree from MSU. So we have things covered pretty well.

[Yeager]  I'm guessing that livestock operation might change then.

[Oesterle]  Yeah, she's wondering when the next barn is going.

[Yeager]  Well, that's always that.

[Oesterle]  I said, Not quite yet.

[Yeager]  Well, what was that conversation? Like when you said to your dad, when you and your brother said you were coming back? Was that always your plan?

[Oesterle]  Yeah, we always after we got over being small kids, and first we were going to be NFL football players. Then NBA basketball players when we got a little more height to us. Once we got past that then we always wanted to come back to the farm. I've worked on the farm since I could walk. So we have a blast with it.

[Yeager]  And your dad did he worked with other people too, or did he start this whole thing?

[Oesterle]  Yeah, so he farmed with his dad. So my dad and my grandpa had the farm originally. And then my grandpa retired. And then my dad, brother and I have a farm. And

[Yeager]  so then your kids would make the fourth generation.

[Oesterle]  Actually, one of the farms will be fifth generation.

[Yeager]  So in those generations, there's always those conversations of what are we going to do so did you say to your dad and granddad This is my idea. When is this? When are we going to start planting canola or when are we going to put up a hog barn or cattle barn? What was your consciousness?

[Oesterle]  So we were so when we started Ross and I we actually started a little we used all Dad's equipment you know we've was just as much from him as we could. And we started renting our own ground. So which was good because he made us he made us make decisions. And Ross and I were actually the ones that started putting some cattle in. We bought an old dairy farm, tore all the freestyles out and started putting some theatres in. And then when we wanted to add more features, we went and listed dad because he had more money.

[Yeager]  The first bank of dad helped out a little. Yes, exactly, yeah. Now how active is he? Now you say he's involved. I mean, as he basically had the keys completely over to you.

[Oesterle]  So we like to call it semi retirement. So he comes when he and whenever he's in town, which is a lot. I mean, he they take a couple of vacations a year, but He comes every day. See what's going on and work by he's not making you're not really involved in the day to day decisions. So he's kind of let that go. 

[Yeager]  And with you and Russ, who's who's I mean, you have Angie as a marketing. So who's mechanical? Oh, yeah, agronomy? How do you divvy up?

[Oesterle]  Oh, Russ. So both of us got a crop soil degree. So we kind of divvy up agronomy together, because we both like it. And then I take care of all the marketing and the accounting and business and, and Ross handles all the equipment and the employees.

[Yeager]  It's a heck of a good divide right there.

[Oesterle]  Yeah, it works out, we get along very well. So it works out really good.

[Yeager]  Let's go to the ‘23 crop, how much is left to market?

[Oesterle]  Not only what's going through the cattle right now. So we are generally aggressive sellers. So we like to sell a lot. I like to sell a lot before fall gets here, then I don't have to worry about it. So if we can, if we can. If we can hit what we want, then we just go ahead and pull the trigger and sell. 

[Yeager]  So then if you already done that, for 24....

[Oesterle]  We're working on that right now we're a little bit behind what we would normally be we have some sold. I'm gonna see your corn will probably be 20-25% sold on corn, probably about the same for beans. So right now we generally like we do a little bit more on a spring run up, which we haven't seen. I mean, there have been a little bit.

[Yeager]  This week is the first we've seen in quite a while for run ups. And that's just trying to catch back up to where we were.

[Oesterle]  Yeah, well, I told Angie, we were just talking yesterday, I think. And I'm like, this is more like, you know, back in the 90s when, you know it was a penny here and two cents there. You know, I'm not used to this after the last couple of years, you know, off day was a nickel enough. Now I just get a two cent if you get a two cent change. I mean, it feels like it moved.

[Yeager]  The yearning what it used to be. or Now this year. Oh yeah. Looking at the prices Yeah, past. Okay. So that was that? Are you even like corn and beans market when you say 25%

[Oesterle]  So we raised a little bit more corn than beans. So we'll have about 20% more corn than we do beans. So just with the feed and everything.

[Yeager]  Do you find that has been a strategy you've employed for a long time?

[Oesterle]  We usually um, we're actually usually a little bit closer to even on corn, soybeans. Wheat last fall was so wet we got 500 acres of we usually plant almost 2000 acres a week. And so we got a lot of extra wheat ground soybean stubble that we're putting back into corn so normally be a little bit closer than what it is but it's just the way it is from the fall that we were given.

[Yeager] Are you in a position each year to flip acres if need be.

[Oesterle]  Oh yeah, yeah. So if we're making a lot more money on one then we'll go and we'll we'll plant more of one and less of the other

[Yeager]  it's not as fall nitrogen a thing in your area like it is in Iowa and parts have.

[Oesterle]  Not really guys really don't pull a full nitrogen on everything goes on in the spring. So you're either putting on anhydrous in the spring urea or or there's a few guys who still use 28%. But majorly mainly it's anhydrous and urea. And so that allows you on in the spring pre plan that allows you the flexibility that Yeah, yeah, yep. Yep. Nitrogen gets away high, then you just put a little more little more on the other end. So beans price, isn't that good than us putting a little more corn in the fertilizers not too bad.

[Yeager]  Is there a day you like to lock in what your acreage is going to be for the coming year?

[Oesterle]  Oh, we'll start in January, we'll pretty much know what we're going to do. So we'll have all the costs and buy them. So we'll know what we're going to do.

[Yeager]  And that again, is the whole look at the hot hand. If we have some stuff, we want to flip or go in there.

[Oesterle]  Yep. Yep. There'll be some ground that that. We like to keep a little bit of a rotation. But we're fine. If we have to go to your corn is on some of the stuff. 

[Yeager]  So you said a few 100 acres on wheat, or was at 1200 on wheat last year. What are you, what's your acreage number break down looking at for this year?

[Oesterle]  So we're this year where we're sitting right around 5000 acres of corn 4100 acres of beans 1400 acres of canola? And then we only got about 500 acres of wheat. 

[Yeager]  And is the wheat already in? Is it winter? Or is it spring? Yep.

[Oesterle]  But it's all winter wheat around here. Yeah. Yeah.

[Yeager]  The canola, when does that get planted?

[Oesterle]  So that gets planted. Usually we plant that after our wheat in August. But since we only have 500 acres, and we're going to try something new this year. And we're going to plant some after soybeans.

[Yeager]  So we'll see how that goes. So hopefully by June one, if everything goes fine, you'll have the canola in.

[Oesterle]  Ah, well, it's winter,

[Yeager]  canola. So you're saying October - November is when you would plan it?

[Oesterle]  I gotcha. Yeah. Yeah. Well, actually, we like to plan it in August, is when we like to plan it. And this is only our fourth year doing it. Because they just started receiving canola at a local elevator here. So this is our fourth year. So we've always planted after wheat before in August. But now we're gonna try it after soybeans this fall, see how it goes. 

[Yeager]  And what made you enter canola?

[Oesterle]  Price. So it is down a little bit this year. But you know, the previous years to this the price was really good. So which was nice because it gave me time to learn how to do it and still not pay for your mistakes. So you could still make some money on it even though you screwed up something.

[Yeager]  Prior to the nearby elevator taking the canola Where were you taking it?

[Oesterle]  We didn't have any. So until ADM, here started taking canola. We didn't, have any. Do you know what though? I guess the guys said had been all. I can't remember how many years they said it's been since there'd been canola round here for ADM started again.

[Yeager]  And this is what your outlets are because you're not necessarily near a river. That ships but what are your app? So

[Oesterle]  the canola they take it right you're talking about all the canola they we deliver it at a local ADM and they put it on a train and haul it over to Windsor and they have a crushing plant in Windsor and then where does your though they're getting canola for a lot less transportation than what they normally would for that plant.

[Yeager]  Then what are they? Where does your corn and beans and what are your options for outlets for them?

[Oesterle]  So part of the corn goes through the cattle and then part of our corn will go through there's two local ethanol plants that they go to and every now and then we'll send some to some of the pig places on the west side of the state or there's some dairies dairies up north of here so wherever we pretty much go wherever the market is calling for.

[Yeager]  But you have options if you're not stuck and married to just one. 

[Oesterle]  No, both ethanol plants are the equal distance from our grain facility.

[Yeager]  Where you go you that's just like our guy in Nebraska same thing. He's like it's one mile more here are two miles more there. So yeah, that sounds like it's like...

[Oesterle]  Yeah, same. One's a little bit easier because of the highway but I'm not driving the truck So I mean, we're going wherever it is the best.

[Yeager]   Now I know you're closer to Michigan State, but the University of Michigan has their sentiment. And I know that farmers' sentiment through Purdue is always kind of hit or miss. What's the farmer sentiment where you're at Donald this year? Towards Michigan, not not necessarily to the University of Michigan, but just farming in general, how are you feeling?

[Oesterle]  I guess, towards college or towards just...

[Yeager]  Just agriculture in general, how are you feeling? You feel like you got good markets, you have a good opportunity. Oh, are you like we're dry? We're not going to recover?

[Oesterle]  No, no, we got plenty of moisture. There's some wet holes still holding water. So we got plenty of moisture, and we're supposed to get some heat next week. So I think I think it will be in Well, I mean, the weather changes all the time. But if the forecast holds, we should be in pretty good shape.

[Yeager]  Because you're not in a drought, it looks like you're not in a drought situation now coming out of it. You're, you're stocked now.

[Oesterle]  Yeah, we had that dry weather, beginning of summer, last summer. And then once it hit July, somebody turned the faucet on and never shut it off. Thankfully, we did not get our average amount of snowfall this year. So we were lower. So it helped things dry out a little bit. So we're in pretty good shape from which your levels were a little, probably a little bit above. But which is fine for this time of year.

[Yeager]  Prices are what they are we talked about, you know, you've already you know, sold some stuff. You're not having to steal market a lot of that old crop. So you have to feel good about that in the sense of 23. Yeah, it's now just that 24 with it, you're maybe a little farther behind. And you're kind of a little more a little more in

[Oesterle]  reaction. Yeah, the way the markets look. We're going to need at least an average yield to make our margins. So if we can get in the last week in April next week, then we'll be in decent shape. We haven't got anything planted before. Last year. I think we started may 12. And the year before that we started May 10. So if we get in in April this year will were a couple of weeks above the last few years. So we won't be complaining. 

[Yeager]  Yeah, I have noticed around I mean, I guess reading Angie's either tweets or commentary, which she talks about or just messages with her, you know, super wet around here.

[Oesterle]  Probably only when she makes it right. You know, just when she texts you. Hey, have you read my last one or whatever?

[Yeager]  Yep. You know, Angie, that's you got her right there? Yeah. What do you anticipate this year? That you think? Will you change any of your outlook on the cattle? Let's go to the cattle then for a moment because we see these cattle on feed reports come back and we look at numbers and then we have viruses come through what's your outlook, or sentiment, I guess on livestock.

[Oesterle]  So the way we run our cattle, and it all depends on the price of the feeders and where the futures are. Because as soon as I book a load, we sell three loads. So we'll catch, we can contract them right away. So the price of feeders have really jumped up the last month and a half here. So we had some contracted to come in. So those are fine. But the next group I don't know if we'll get some any end in June or not. So the feeders are pretty high.

[Yeager]  Where do you normally go to try to find feeders?

[Oesterle]  So I've got a guy I usually get seven 800 A year from and then the rest of them. We buy through UPI here in Michigan. United producers. 

[Yeager]  And I'm guessing they're telling you it's the price is what the price is? Where's theirs?

[Oesterle]  Yeah, yeah. Well, they got sellers on the other side that want the most that they can get. And I don't blame them. I mean, there was a couple of lean years there where they weren't getting much. And so it took a real jump. The last couple prices I got have been much closer. So I think we'll eventually come get close to where where we can continue to buy some but we just may have to go a month or so without getting me Well,

[Yeager]  When we chat in July, we'll see how the trucks rolled. We'll see if you beat that. Maybe we got a lot to follow up with. I got a lot of notes here for our next conversation.

[Oesterle]  Yeah, yeah. Well, that'd be great if we got a lot in by May one. I'll be a happy camper in July.

[Yeager]  All right, Donald, I appreciate the time. Thank you so much.

[Oesterle]  No problems.

[Yeager]  New episodes of this podcast come out each and every Tuesday. Like and Subscribe. Wherever you get your podcasts. You can listen or you can watch via our YouTube channel. Thank you, and we'll see you next time.