By  E. W. Lang

Barrel Cheese ended the week at $1.59 per lb., up a half cent over four trading days. Blocks lost five cents to end out at $1.77. Butter lost four cents to close at $1.75 per lb. Non-Fat Dry Milk and Whey traded even with Friday, last.

Class III Milk Futures for the next year are running from $16.56 to $17.55 per cwt. Class IV is looking a little tough right now as March and April are both at $15.75 per cwt., both are at contract lows and both are off of the $18 highs of September, 2018. Well, that's discouraging. Class IV is less of a factor in all-milk price here in the mid-west. Its a much larger component in California, since more of their milk ends up in the butter churn.

Most milk and cash grain producers should have received a final 2019 government subsidy in the last couple weeks. The Market Facilitation Payment is to adjust for international trade lost these last three years. Today there was an announcement that another round may be on the way...Called it.

As I mentioned a few weeks ago, Wisconsin, Michigan and Pennsylvania hold dearly needed electoral votes, so government-to-farm largesse is in order as the November election draws near.  MFP Crop and Diary USDA Subsidies can be issued by decree, and without congressional action, so it's auction time for the farm vote. "Ladies and Gentlemen, do I hear a full round of 2020 MFP payments in October? Thank you, now vote early, and vote often..."

These MFP subsidies have found their way to all parts of agriculture. Banks are getting interest that's past due. Realtors are getting calls for farm land, and most land is finding a buyer in 30 days or less. Farm prices here in Iowa are running $100 to $110 per tillable point of CSR2, so that's a lot of farms from $7,000 to $10,000 per tillable acre.

Top land parcel over the last couple weeks at auction was a 40, almost all tillable with an 86 CSR2, at $15,100 per acre. I suspect two or more neighboring land owners who have wanted this for years were the final bidders. The whole 'coveting thy neighbor's ass' thing comes to mind in cases like these.

Farm equipment maker Deere and Co., the green tractor people, reported some unexpected, pleasing results on their most recent earnings call. I'm reminded of the general farm recession during the 1980s when new John Deere tractors sat so long that they had to be taken from the factory lot and repainted before going to dealers. It was also in those days that interest rates at retail were 11 to 15 percent, two and three times current loan rates.

Speaking of banking, March 1 is approaching. For decades that was when farm payments were due and farm leases were up. Some farm families relocated and some called the auctioneer.

If you are a farm borrower and haven't been to see your lender in a while, do so, and do so with the following in mind. Remember that your lender doesn't want to sell you out, as that's a money loser for the bank. He or she wants you to succeed, make interest payments, and be an asset to society and of long term value to the bank as a customer.

Accurately and completely provide all lender-requested information, and remember that lying by omission is still in direct violation of one of the commandments.

If you feel the need to lie, lie to your lawyer, accountant, your preacher, doctor, or the judge at state fair. They are used to it and are adept at regularly dealing with false witness in all its forms. Just don't lie to your banker as they always know it right away, and it puts you on the short list to jettison as soon as your loan becomes a bad risk, or they just feel like doing so.