“We’re busier than ever,” says Mark Shortz, a drainage contractor who also farms near Danville, Ill., with family and two partners. “When I’m cutting soybeans I see that time in the combine as my calm before the storm. There’s really no end in sight.” Photo Mark Shortz
Most farmers breathe a sigh of relief at the end of a long harvest season. Not Mark Shortz.
That’s because the east-central Illinois corn and soybean farmer also happens to be a drainage contractor. So when Shortz finishes soybean harvest his next job is just waiting for him – and won’t end until soils freeze up some time this winter.
“We’re busier than ever,” says Shortz, who farms near Danville, Ill., with family and two partners. “When I’m cutting soybeans I see that time in the combine as my calm before the storm. There’s really no end in sight.”
Perfect storm
Drainage has always been, for the most part, a no-brainer investment for farmland owners. But the next few years are lining up be a perfect storm for contractors like Shortz. Why?
Following two profitable years farmers are looking to invest in their business and lower tax bills;
With land prices through the roof it’s a sound way to improve ROI productivity and profitability on land you already own, without having to buy more;
Alternative investments, such as grain bins or new combines, are seeing shortages, high demand, cost increases, or supply chain holdups. Drain projects did see an uptick in cost, due in part to post Covid demand surge as well as – ironically - the Feb. 2021 Texas storm that knocked out production of high density plastic. Even so, drainage project costs have not jumped nearly as high as other big-ticket farm investments.
A fourth benefit, more difficult to quantify, is how drainage can help farmers manage weather extremes. According to the National Climate Assessment heavy downpours are increasing, especially over the last three to five decades, with the largest increases in the Midwest and Northeast. More flooded fields delay planting and cause yield-robbing disease. In 2019 the U.S. saw record number of acres enrolled in Prevent Planting due to incessant rainfall.
Demand surge
In the short-term, though, it’s strong yields and high prices that are driving drainage demand, says Jennifer Furkin, vice president at Springfield Plastics, a plastic pipe manufacturer in Auburn, Ill.
“In this industry we can’t make it fast enough,” she says. “Demand is at an all-time high.”
A desire to make good investments and lower tax liability is also driving demand.
“Farmers are limited in what they can purchase in terms of hard assets like combines, and pickup trucks,” says Furkin. “In earlier days you might have been able to just buy those off the dealer lot, but that’s not as easy the last few years due to Covid and supply shortages.