Larry Stalcup

With the likelihood of lower premium rates and better overall coverage, federal revenue crop insurance should provide farmers with tools to potentially insure profit margins for 2013 crops, says Bruce Sherrick, a University of Illinois farmdoc farm management specialist. He stresses that with crop price protection levels likely in the $5.70/bu. range for corn and about $12.75/bu. for soybeans, “adequate margins may be insurable again this year.”

Dwayne Beck admits right away that his farm “is research.” Why else would he alternate alfalfa with continuous corn? Say what? That’s a sampling of the different farming approach he takes at the Dakota Lakes Research Farm, Pierre, S.D. The producer-owned farm, also part of South Dakota State University’s ag research program, is led by Beck’s no-till-or-nothing approach. He takes conservation farming to the next level.

Does marketing your corn or soybeans drive you nuts? Does pulling the trigger cause you to break out? Like it or not, marketing and prudent risk management is as important as making a good crop. For farmers with little marketing discipline, a decision grid can help solidify their risk-management program, says Carl German, University of Delaware Extension grain marketing specialist. He helped lead a USDA Northeast Center of Risk Management Education program to devise a marketing decision aid several years ago.

“Don’t pull a VeraSun.” Illinois Extension Economist Scott Irwin’s warning is for growers who may teeter on economic catastrophe if they pay high prices for fertilizer or other inputs without matching them with corn or soybeans sales. His reference to the bankrupt biofuels company – which apparently failed to hedge against grain it purchased – illustrates the enormous financial risks farmers take.

When you farm 35,000 acres in five states, balancing input purchases with crop pricing can boost the bottom line. But a leading indicator to make one of those trades may not keep you from lagging on the other in the decision-making process. That’s Donny DeLine’s attitude. He doesn’t always market the same percentage of corn or soybeans to match production with inputs bought. But if both ends of the spectrum look good, he takes action. In fact, early fertilizer purchases and bulk buys last summer helped him save 20% or more over prices this spring. And by booking corn early, he had almost 50% of it priced at $6 or higher.

Are the fundamentals surrounding soybeans causing prices to surpass expectations? At least one Corn Belt grain marketing specialist thinks so. And it could be a signal for you to sell more beans this spring. Price volatility can take the life out of a market in a flash.

Expect to spend more time babysitting the crop, say agronomists and seasoned continuous corn farmers. Devote extra time to in-season N, disease and insect management advises John Kretzmeier, Fowler, IN. He was all continuous corn until the last two years, when drainage on his flat land became too problematic for all but about 20% of his ground.