More in Management

Mar. 10, 2013

Article

Corn and Soybean Digest

Are Corn Prices Headed Lower?

USDA has lowered the projected high-end season-average farm price for corn down to $6.75-7.45/bu. It’s a 20¢/bu. drop from last month – a trend farmers hope doesn’t continue as planting time nears. The projection came in Friday’s World Agricultural Supply and Demand Estimates (WASDE) report, which also showed tight ending stocks unchanged at 632 million bushels....More
Mar. 8, 2013

Article

Corn and Soybean Digest

Farm Transition Planning: Communicate, Use Experts, Keep Focused

On Friday afternoon attendees at Commodity Classic 2013 were treated to a session on transitioning their farms. Leading the conversation were Darren Frye, Brian Hensley and Arlen Suderman, all of Water Street Solutions, and Bryce Knorr, of Farm Futures. The group started off by saying that now is the time to start planning, reminding the group that having a will and having and estate plan are NOT transition plans....More
Mar. 8, 2013

Article

Farming is a Way of Life, Not a 'System' 1

As a farmer, one of the many whom Jonathan Foley regards as “the hardest working people in America” and as “pillars of their communities,” I would like to speak out about how today’s corn farmers, their trade associations and others whom Foley has vilified have not only rethought the so-called “corn system,” but are continually improving it. Thanks to technology in the tractor and on the field, and smart agronomic practices like conservation tillage, things are only getting better....More
Mar. 7, 2013

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Details On Proposed Bill To Reduce Crop Insurance Subsidies

Senator Jeff Flake, Arizona Republican, said yesterday, "The crop insurance program has turned into a huge taxpayer-funded boon for some of the biggest, multi-national insurance companies and multi-millionaire farmers. In a time of record deficits and an incomprehensible $16.5 trillion in debt, this program can no longer be justified in its current form."...More
Mar. 7, 2013

Article

$15.4 Billion in Indemnity Payments Sent to Farmers, Drought Continuing into 2013

As the claims come in from one of the worst droughts in decades, farmers and ranchers across the country are receiving indemnity payments for the losses they have incurred. As of March 4, 2013, more than $15.4 billion has been sent to farmers. Farmers will invest more than $4.1 billion to purchase more than 1.2 million crop insurance policies....More
Mar. 7, 2013

Article

Relationship Between Crop Returns and Acreage Decisions

Relative corn and soybean prices over the past few crop years have encouraged expansion of corn acreage and the use of more corn intensive rotations throughout much of the Midwest. In general, and in central and northern Illinois in particular, increased corn acreage has come at the expense of fewer acres being planted to soybeans and, to a lesser extent, wheat....More
Mar. 7, 2013

Article

2013 iFarm Crop Insurance Tools Available

All 2013 crop insurance tools have been updated and are now available in the crop insurance section of farmdoc. These include the payment simulator, premium calculator and decision tool....More
Mar. 5, 2013

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Evaluate Your 2013 Crop Insurance Options

The Risk Management Agency (RMA) has now concluded its price discovery period used to determined final prices and volatility factors for federally sponsored corn and soybean crop insurance products for 2013. For the majority of the Midwest, the projected price for corn is $5.65 and the volatility factor relating to the price risk is anticipated to be .20. For soybeans, the projected price is $12.87 and the volatility factor is likely to be .17. For comparison, the 2012 prices (volatility factors) were $5.68 (.22) and $12.55 (.18) for corn and soybeans, respectively.
Mar. 5, 2013

blog

Benchmarking to the Elite: Part 1

One of the elite management learning experiences in agriculture is the Executive Program for Agricultural Producers (TEPAP) at Texas A&M University, coordinated with leadership of Danny Kleinfelter. Now in its 24th year, this gathering of agricultural lifelong learners with an array of outstanding presenters who have a vast amount of background and experience is truly the “Super Bowl week” of education and networking in agriculture....More
Mar. 5, 2013

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Crop Insurance Decision Time

March 15 is the deadline to purchase crop insurance for the 2013 crop year for corn, soybeans and spring wheat in Upper Midwest states. As of March 1, the USDA Risk Management Agency (RMA) has finalized the 2013 crop prices in the Upper Midwest for Yield Protection (YP) policies, as well as the base prices for Revenue Protection (RP and RPE) policies....More
Feb. 28, 2013

Article

Mobile App Provides Daily Variable Rate Recommendations to Optimize Corn Yield

An agronomy firm whose smartphone application uses GPS soil testing data and National Weather Service rainfall data to estimate corn yield and determine the most limiting factor will launch a new function on the app....More
Feb. 26, 2013

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The Advisor Who Paid Off

The other day our veterinarian, Todd, shared a story with me about a producer who came to him with a pinkeye problem, which was not only aggravating, but costing him a lot of money. He told me this story during a driving sleet storm as we were checking cows for heat as part of our breeding program....More
Feb. 26, 2013

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Grain Prices Likely to Become a Bigger Challenge

If you go to almost any rural community and ask someone what the current cash corn price is, you are likely to get a response of “somewhere between $7 and $8/bu.” You may even get that response from some farmers who have not been following the grain markets closely in recent weeks. We have kind of been drawn into a mentality that corn prices of $6-8 are the new normal, rather than a temporary price upswing; however, that type of thinking could change quite dramatically in the next couple of years....More
Feb. 22, 2013

Article

2013 Farm Program Choice: DCP or ACRE?

Congress extended the 2008 Farm Bill to the 2013 crop. Thus, farms will have the decision to enroll in either the Direct and Counter-Cyclical Program (DCP) or Average Crop Revenue Election (ACRE) program. Enrollment status in the 2012 farm program does not matter. Any Farm Service Agency farm serial number, hereafter simply referred to as a farm, can enroll or not enroll in the 2013 ACRE program. It is not an easy decision....More
Feb. 22, 2013

Article

Corn and Soybean Digest

2013 Beans-to-Corn Ratio Only Slightly Above 2012

Despite market volatility that can easily see corn and soybean prices swing 30-60¢ a day, February’s projected 2013 soybean-to-corn price ratio is only slightly higher than for 2012. Gary Schnitkey, University of Illinois economist, says based on futures settlement prices the first half of February, the projected price for corn will be $5.73/bu. The soybean price is pegged at $13.01/bu. That equates to a soybean-to-corn price ratio of 2.27 ($13.01 / $5.73)....More
Feb. 22, 2013

Article

Corn and Soybean Digest

Think Different: Rethink Agronomics 2013

As with most farm business decisions, very few escape without some type of tradeoff, be it labor, time or money. Our cover story may challenge your beliefs if you're sold on 30-in. row soybeans, because you lose yield (range from 2.9 to 4.5 bu./acre) compared to 15-in. – according to a three-year, six-state university trial....More
Feb. 22, 2013

Article

Corn and Soybean Digest

Sell More Grain

With new-crop corn and soybean futures markets priced for profit, farmer Rod Pierce takes full advantage of revenue crop insurance. He makes substantial grain sales in addition to guaranteeing income on 75-85% of his production....More
Feb. 22, 2013

Article

Corn and Soybean Digest

Secure Your Landlords | Status Quo Land Leases May Cost You Lost Acres

How secure is your relationship with all your landlords? At a time when aggressive operators are targeting long-term relationships, offering substantial bumps to rental agreements, what would your landlords accept? Do you know how to 'seal the deal' with every landlord?...More
Feb. 22, 2013

Article

Corn and Soybean Digest

Be a Contrarian

Doing things the way they’ve always been done provides comfort and confidence. Today’s environment, however, is sorting out those who refuse to adapt to change....More
Feb. 22, 2013

Article

Corn and Soybean Digest

$7.50 Corn: Good or Bad?

In two years or possibly even in six months, many corn producers will recognize that $7.50 corn may well have been the worst thing that has happened to them in the last 10 years. I’ve said before that I am of very strong opinion that corn prices are in the midst of the biggest bear market in history. I am sure some readers have laughed at such a statement and others have thought I have lost my mind. I am convinced that $7.50 corn is actually going to be one of the worst things that has happened to a Midwest corn farmer in a long time....More
Feb. 22, 2013

Article

What Will $4.80 Corn, $10.50 Beans Mean for Your Farm Operating Budget? 2

How will your farm operating budget look with $4.80 corn and $10.50 soybeans? Many farmers will have a problem covering their breakeven cost with USDA’s projection for the average prices of the 2013 corn and soybean crops. Nevertheless those prices were suggested Thursday at the annual USDA Outlook Forum during the presentation of Chief Economist Joe Glauber....More
Feb. 19, 2013

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Seed Worries?

A new source of yield worries in 2013: Seed availability and quality. Seed company representatives say the 2012 seed crops turned out better than expected during the growing season and overall supplies should be adequate. However, some agronomists say there could be shortages of some high-demand corn varieties. In addition, the germination standard in some lots could be in the 80% range and flat seed may be in shorter supply while rounds are more plentiful....More
Feb. 19, 2013

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Crop Insurance Deadline is March 15

March 15 is the deadline to purchase crop insurance for the 2013 crop year. A good crop insurance program is a key part of a solid risk-management plan for a farm business. Farm operators are encouraged to discuss the Common Crop Insurance Policy (COMBO) insurance options, as well as other 2013 crop insurance needs and options with their crop insurance agent before the deadline....More
Feb. 19, 2013

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Enthusiastic About the Future of Agriculture: Top Ten List: No. 4

Number four on the countdown list of why I am excited about the future of agriculture is the ability to be entrepreneurial and to grow your wealth over the lifecycle of the business....More
Feb. 19, 2013

Article

Near-Term, Long-Term Soybean Price Prospects

Soybean prices reached record-high levels in late August and early September 2012. Those high prices were generated by a combination of a drought-reduced harvest in South America earlier in the year, drought conditions in much of the United States production region and ongoing strong Chinese demand for soybeans. Prices declined by about $2/bu. in September and October as the U.S. crop turned out to be larger than expected, according to University of Illinois agricultural economist Darrel Good....More