Episode Transcript
[00:00:00] Speaker A: All right, folks, welcome to cup of Coffee. It is Tuesday morning, so we are recording cup of Coffee live for the first time ever remotely. All right, I want to just let everyone know, you can hit that subscribe button when you get a chance. Follow us along on YouTube or wherever you catch your podcasts. Markets this morning are a little bit interesting. We've got Canola currently down about 470 a ton here after that big run up yesterday. People asking for an explanation, you know, why did Canola have such a strong day?
And I know soybeans rallied a little bit, so maybe that helped out. Other than that though, there was some noise around a grain company in Western Canada looking for coverage for old crop and maybe that led to a bit of the spark in this market. Last time we saw values this high was the summer of 2023. So canola doing some beautiful things here and a beautiful looking crop here at Egg in Motion as well.
Ben, I can't believe that I'm recording live with John Deere this morning. So welcome to the show.
[00:01:01] Speaker B: Happy to be here. Thanks for having me.
[00:01:02] Speaker A: Soybeans down two and a half cents. So a little bit of weakness there after some strength here on Monday. We've got corn up a half a penny here at 450 Kansas City. Wheats currently down about two and a half cents and bean oil's down half a penny here as well. So kind of a mixed morning mo, mostly red on the screen here as we as we get fired up. But we will see if we can turn that around later on from a headlines perspective. I didn't check too much this morning on what was going on, but you know, essentially we've got some tension obviously with the war in the Middle east going on. You've got renewed war premium coming into these grain markets. You've got some weather stuff as well. So it's kind of the same, same old as the last couple of weeks here, allowing for some opportunity for higher prices. And here we are. Ben Zelly, I want to welcome you into the show. We have 20, 25 questions that came in from farmers about crop marketing. So we hope that you can answer most of those.
[00:01:57] Speaker B: Oh, that's not my area of expertise, but we can sure talk about air seating equipment that we're here at the Egg in Motion show about if that happens to trip the trigger as well.
[00:02:06] Speaker A: Well, you know, I do have a couple questions here for you, so maybe we could go down that path to get going. So yeah, welcome to the what the futures podcast, man, and thanks for having me.
[00:02:14] Speaker B: Thanks for joining us. Glad to be on today.
[00:02:17] Speaker A: So what do we have going on here? We, we got a, a press release today. We got some updates when it comes to air carts and new launch today. Can you just give the listeners a little bit of a heads up on what came out this morning?
[00:02:30] Speaker B: So this morning we are proud to launch our C1450T air cart. It's the largest in our C series lineup. Building on the C series portfolio that you're familiar with today. So you've had the C850 now the C1100T that was introduced at Commodity Classic in February, first public showing of that also happening here at Ag InMotion. And then we have for the the first time and introducing today the C1450T.
[00:02:56] Speaker A: Okay, awesome. So what we're seeing here to the west of us, the C11T that was not here last year, this is a brand new thing.
[00:03:03] Speaker B: Correct.
[00:03:03] Speaker A: Okay, cool. Well why don't we start with what's on the grounds here then and give us a little bit of an update. So last year would have been what, the C850?
[00:03:11] Speaker B: Yes, sir.
[00:03:12] Speaker A: On here. So what's the differences then? Let's go up one step.
[00:03:15] Speaker B: We'll start with some of the obvious differences. We have that naming difference. And so naming as it always has, we start with the C which is for the C series carts. And so we have some of the proven features that you're familiar with there like the Ezcal system, the accurate meters, those stainless steel corrosion resistant meters that we have on the C series carts and the tank scales that we've had on the C850. So that's what's common. But as we look at the size then the 1100 would be 1120 bushels. And when we look at the 1450, it's actually 1460 bushels of capacity.
So we've really increased that capacity. And one of the ways that you'll see that is it's taller. So when you physically come and view the carts in person, they will appear taller, also longer. So the C1450T. One thing that's different from it even than the 1100 is you'll see a fifth tank. So this is the first time that we've had a fifth tank on our carts, adding that extra capacity. And both the C1100 and the 1450 have that flex tank in the front. So It's a bigger 105 bushel tank.
[00:04:13] Speaker A: Is there reasons why you go with that bushel capacity? At each level. Is it like an engineering thing or is there a specific reason that those
[00:04:22] Speaker B: bushel amounts farmers want to, you know, reduce the number of fills as they're going through you farm. You understand that as you're in the spring, those windows are tight. Especially this spring. We were wet and cold getting.
[00:04:34] Speaker A: We started May 19th. We were a couple of weeks delayed.
[00:04:37] Speaker B: Yeah. So you understand that then that crunched things a little bit more. And so farmers have been saying, hey, it'd be great if we had the ability to run longer between fills. And so, yes, a little bit of an engineering thing of how many bushels can we fit within the frame, the cart, the structure that we have and, and grow that. But it's helping deliver on that value of more bushels in the cart, of fertilizer, in your input products, your seeds as well, so that you can run longer between fills.
[00:05:06] Speaker A: So John Deere does a great job of listening to customers, you know, gathering feedback, you know, figuring out those next steps. Is there something here in the C1450T? Is there something that from that feedback really stood out as a new feature for this one?
[00:05:24] Speaker B: I could name a few, but we'll start with just a couple for you. I think one of them that you'll see first is the fill time capacity. And we have a few charts that you'll be able to see here at the show that we've done some benchmarking internally for ourself of what that fill capacity is. And we are able to fill these faster because we've added a larger capacity auger to that C1450T cart. So we've got a 16 inch auger on that.
And so we can fill that entire cart faster than. Than we, you know, could in the past when we had a smaller auger and get less of that rollback of the seed and fertilizer, especially an untreated wheat as an example.
So we're able to fill that more efficiently. And that time as you're filling the cart is important because each of those are minutes that you're not in the field seating. And so being able to do that more efficiently and even the auger itself on both carts is longer. And that helps you get back in underneath when you're doing clean out and when you're filling to be a little bit farther away so you have a little more maneuverability with the truck as you're filling. Another feature that's new on both of these carts is the easy lift system.
[00:06:28] Speaker A: Okay.
[00:06:29] Speaker B: And so you can lift up to 2,400 pounds of a seed sack or other inputs to be able to pull that up and put it into tanks 1, 2, and 3 on either cart. And that maybe reduces for you having to have a picker truck or a tele lift in the field to be able to lift that bag of canola. And we've got a side storage platform up there so you can actually store one bag on the cart as you're going through the field as well. In addition to that 1450 bushel or 1460 bushel capacity. Uh, and so that gives you that much more flexibility. Cause maybe you're. Maybe you're towards the end of the season and you're not sure, do I need that whole extra bag or not? Yeah, as I'm going. And you can have the bag on there, but you don't have to open it unless you need it.
[00:07:10] Speaker A: It's interesting how the. The picker. The picker truck became a part of the farm. Like being out in the field and being part of the farm. Like, you know, you used to throw it over your shoulder and go up the stairs and try not to fall and. Yeah, there you go.
All right. So I want to talk. So we talked about some efficiencies here. We've talked about speed. You got. The farm's got a great pit crew out there to get the. The drill moving again. Let's talk about some of the precision changes. I don't think we've gone through precision stuff yet. So what. What's changed in this one in the 1450t?
[00:07:42] Speaker B: I think a lot of what we'll talk about is things that are still true with that C series air cart. So I mentioned a couple of them before that we have those accurate meters. And with accurate meters, we're able to apply that seed individually for each run. So we can change that rate. Apply those variable rate prescriptions as we're going across the field. Working with your agronomists to load that through the John Deere operations center. Using work plans and those accurate meters can help your tool. Instead of being a full width, you can be eight times more efficient and more accurate in those by having those individual runs that can adjust. The other one, as you've covered before, is the Ezcal system. And we've brought that forward. And we continue to get great reviews from customers that they say, man, we finally figured out something that saves me time.
Do you like crawling under the cart and putting those bags on and doing.
[00:08:30] Speaker A: Nobody does.
[00:08:31] Speaker B: It's a dirty job. You're already out there running. And so to be able to have that bucket that you can scoop out as you're loading the commodities and quickly do that easy Cal. And not have to remember everything as you go up to the cab and input them using that G5E display at the side of the. The cart that's been a crowd pleaser and something that even as we went out for some customer feedback, continues to resonate with the current C series lineup and as we get into these larger carts as well.
[00:08:56] Speaker A: And the EasyCal system is here once again this year for the demo and the display. Yeah, perfect.
[00:09:02] Speaker B: The thing I'd maybe talk to is within John Deere Operations center, we have a suite of tools and I mentioned work plan is one of them, but another one is using the tank scales. So each of these carts have individual tank scales so we can read what that measurement of the remaining pounds in that tank are, and we can use that within the display to know how much inputs are in those tanks and help calculate how long can I go.
[00:09:30] Speaker A: Right.
[00:09:31] Speaker B: And using that JDLink modem, it can transmit that information off the display. So you talked about our pit crew of people around the farm.
We can transmit that through operation center and show a time remaining, that estimated time to empty through the logistics, so that if I am in that picker truck or in that grain truck that's coming to fill me up with seed, I can know, oh, do I think he's going to finish this field? Do I think that we're going to be able to finish? Or where in the field are we at with that time remaining so that we can be a little bit more efficient in those tight windows?
[00:10:04] Speaker A: Do I have time for a quick nap before I get out there? You know, something like that?
[00:10:07] Speaker B: Those are good questions.
[00:10:08] Speaker A: Yeah. Well, many farms operating multiple machines as well. Right. So I know on our farm we kind of have the one logistics wizard trying to keep everybody running and going and that certainly.
[00:10:19] Speaker B: Yeah, every farm needs one. Yeah. Somebody that knows how that works. And like you said, being able to know, do I need to go get Ryan filled up or do I need to get the other one filled up? As we're making those decisions can help make it more efficient in the spring.
[00:10:31] Speaker A: Awesome. So we've covered a lot here so far, Ben, but I don't think we've covered the relative flow blockage system. Let's go there next.
[00:10:41] Speaker B: Yeah. So relative flow blockage we've had for a while across some of our portfolio, but bringing it as a precision upgrade as well is something that's new. And so being able to take some of those tools that maybe didn't come from the factory with our relative flow blockage system and retrofit that using our precision upgrades. Relative flow blockage. What is it? I may be missing that part.
It is a sensing system that works with your integrated in cab display to show the relative flow of seeds and inputs through those hoses across the tool. And it can help us identify maybe if things aren't flowing freely and if that's the case, that may mean that we have a blockage and we hate that embarrassing moment when the crop comes up. We see a strip that was missed and so this helps us catch that sooner and try and avoid having to go back and replant. We can catch those and maybe identify some areas that that need attention or question from we.
[00:11:29] Speaker A: King, he's asking about auger or conveyor. So that would go back to the 16 inch auger, I believe.
[00:11:37] Speaker B: Yeah, I did say auger, but it is a conveyor system. Conveyor, it's a belt that runs through that to pull that seed up. So instead of having the auger that we can have those pinch points of the seed and the grinding, it is a conveyor that's going to help us to bring that grain up efficiently. And I didn't mention but we have a stainless steel hopper as well which is new at the C 1100 and the C 1450 T to again have a little bit more corrosion resistance, especially as we talk about treated seeds and some of that fertilizer can be a little bit abrasive as well. So new features that you're seeing there.
[00:12:06] Speaker A: Thank you week King for the question as well. I wasn't anticipating any here, but there we go. He's usually in the chat every week, so there we go. Good on him. Let's talk about can you add some of these features onto my existing fleet at home potentially?
[00:12:20] Speaker B: Absolutely. So we talked about logistics and I think there'll be some other experts on and some of your successive shows here that can go a little bit deeper about that. But getting JDLink connected in that fleet so we can see not only the tractor and the cart tool where that's at, but my other vehicles where those are within the fleet. So maybe the tractor driver can know where that truck is at as it's coming to fill me with JDLink as well. And then specifically as we're talking within the air seating portfolio that I'm familiar with, we have the relative flow blockage system which we already addressed as well as the accurate meters. So as we were out talking to customers this spring, we had some that had multiple carts like you were mentioning and maybe they had a newer cart and an older cartoon. Yep. With this one customer I'm thinking of, he was running a newer cart and had the accurate meters and his dad had the older cart that didn't have the meters. And he said you might convince me that this is the year to make that upgrade. So definitely one to check with your dealer about and find out more information about compatibility and how to get that installed before spring.
[00:13:20] Speaker A: All right. Awesome. Ben, and maybe one last one for you here. I need to ask, so you have the C1100T on site here, the 1450. Like when would these be available to the farmer?
[00:13:35] Speaker B: I appreciate the question. So we will have more information on the C1450T that's launching right now, coming up for spring of 2027.
[00:13:43] Speaker A: Okay.
[00:13:43] Speaker B: So that's when we'll have more information about ordering and things coming. We will see our first C1100TS on farms this coming spring.
[00:13:49] Speaker A: Awesome.
[00:13:50] Speaker B: As we get those out there. But it'll be through a limited production build fleet. So we'll have the first ones. And more information on ordering is already available with your John Deere dealer.
[00:13:58] Speaker A: Awesome. Well, Ben Zelly, thank you so much for joining us. Where's hometown for you? Where do you hail from? Where'd you travel in from today?
[00:14:04] Speaker B: Traveled in from Des Moines.
[00:14:05] Speaker A: Yeah.
[00:14:06] Speaker B: Just moved from Kansas City to Des Moines. So when you're updating the wheat futures there gave me a little nostalgia.
[00:14:11] Speaker A: And crops in your area, are they doing okay? Are we going to knock on wood?
[00:14:17] Speaker B: Yeah, we're going to knock a little bit. We've had some of the rains as well as we look through things. So driving up and down I35, the interstate there between Kansas City and Des Moines, overall things are looking good. But we have some of the same problems too in that area of wet spots and drowned out. And so as the wheat harvest is getting rolling here, it's good to see some of those things coming out. My dad back home was just combining oats this past weekend, so certainly things are rolling.
[00:14:40] Speaker A: Oh, man. Now I have to ask. What? Do you know what the price oats is in your backyard at all? Because it's brutal here. It is just brutal in the prairie.
[00:14:48] Speaker B: I don't offhand. Dad usually markets it to some local farmers for horse feed. So I'm not sure what the current future rate is.
[00:14:56] Speaker A: Yeah, fair enough. Fair enough.
[00:14:58] Speaker B: Look at Cedar rapids for you.
[00:14:59] Speaker A: We want it to go up, so we, we. We all want it to go up. All right, folks. Well, again, thanks Ben for joining us on cup of Coffee here for this Tuesday.
A big thanks to John Deere for hosting us live as well. Again, I can't believe the Internet connection. How much better it is here. This is crazy. I got to do something. Got to do something in the, in the shop. But yeah, folks, that's it for your takeaways for this week. Actionable items, obviously. Head on down to egg and Motion. Come say hi to me. Come say hi to the great folks over at John Deere. I had my little guy Finley with me yesterday and he got to tour most of the stuff on site here and he was pretty darn excited. So lots of beautiful green paint ready for you to. To come take a look at. They have not given me the keys to anything quite yet, but there's still time. The, the week is. Is early here, so there is a
[00:15:48] Speaker B: ride and drive activity out with some see and spray selects.
[00:15:51] Speaker A: That is true.
Yeah. The ride and drive. There we go. They may not want me driving it, but we'll see. Probably have good insurance, right? All right, folks, that's it for this week. Thank you so much for, for hanging out. And yeah, we'll catch you Friday on the what's the Futures Episode will be all about egg and motion. So take care, folks. We're out of here.
[00:16:12] Speaker B: Thanks, Ryan.
