Issues

ARC Farm Program Net Returns

Tue, 22 May 2012 20:02:00 +0000

Source: University of Illinois farmdocDaily

Agricultural Risk Coverage (ARC) is a revenue-based proposed Farm Bill program passed by the Senate Agriculture Committee. In this post, net returns for corn are examined using prices and ARC payments detailed in a May 9, 2012 post. At $4/bu. and below corn prices, ARC will make payments, aiding in cushioning revenue losses. However, ARC payments are not large enough is assure profits, as farmers who cash rent will face losses at prices below $4/bu.

Is This Your Kid? The Bottom Half of the Bell Curve

Tue, 22 May 2012 15:45:00 +0000

Over the past few months I have guest lectured in agriculture and business classes at various universities and colleges. Of course, times are changing since my days in the classroom when I taught over 10,000 students at Virginia Tech and Cornell University. Today’s classrooms have an abundance of technology at one's disposal, for both professors and students with a wide range of interests and agendas.

CSD Blogs and Opinions

Planting, Herbicides and Farm Programs

Tue, 22 May 2012 15:41:00 +0000

Across southern Minnesota and northern Iowa, nearly all the intended corn is planted, and over 90% of the soybeans were planted as of May 18. Most of the corn and many of the soybeans that are planted in this region have emerged, and stands look fairly good.

CSD Blogs and Opinions

Ag Subcommittee Highlights Importance of Fair, Effective Safety Net

Fri, 18 May 2012 20:48:00 +0000

Source: House Agriculture Committee

Commodity programs and crop insurance were the focus of a two-day hearing that began on Wednesday, and is the third hearing series on agriculture policy in advance of writing the 2012 Farm Bill. Title I programs and crop insurance form the backbone of the farm safety net that ensures farmers are able to manage a few seasons of volatile prices or devastating weather patterns. This effort ultimately ensures that consumers have a stable food and fiber supply.

Farm Labor Report: Hired Workers Down Nearly 5%, Wage Rates Up Nearly 2% From a Year Ago

Thu, 17 May 2012 20:06:00 +0000

Source: USDA

There were 575,000 workers hired directly by farm operators on the nation's farms and ranches during the week of January 8-14, 2012, down nearly 5% from a year ago. Workers hired directly by farm operators numbered 748,000 for the following quarter's reference week of April 8-14, 2012. Because NASS did not publish estimates for the April 2011 quarter, no previous year comparison is available for April.

May 15 USDA, NOAA, Dept. of Commerce Weather Summary

Thu, 17 May 2012 15:21:00 +0000

Here's a summary and some key graphics from the latest USDA, NOAA and Department of Commerce weekly weather update. All graphics are courtesy of those departments.

DCP, ACRE Sign-Up Ends June 1

Wed, 16 May 2012 18:38:00 +0000

Source: USDA Farm Service Agency

USDA Farm Service Agency (FSA) Administrator Bruce Nelson reminds farmers that enrollment for the 2012 Direct and Counter-Cyclical Program (DCP) and the Average Crop Revenue Election Program (ACRE) ends June 1, 2012. “We want producers to know that DCP and ACRE are still available for enrollment,” says Nelson.

Simple vs. Olympic Prices used in Farm Commodity Programs

Tue, 15 May 2012 20:34:00 +0000

When historical averages are needed, an Olympic average often is used rather than a simple average in calculating benchmarks in farm bill commodity programs. For example, the Agricultural Risk Coverage (ARC) program that was passed by the Senate Agriculture Committee uses Olympic averages of prices and yields in calculating benchmark revenue. In this post, Olympic averages are compared to simple averages for corn and soybean prices. Generally, Olympic and simple averages will track one over time. The relationship of Olympic to simple averages depends on the nature of distributions across time.

The Rule of Ten

Tue, 15 May 2012 20:27:00 +0000

The lead-in to this topic came from a farmer who had heard me speak about the Rule of 10 a number of years ago, and had experienced it in his own business. The gentleman is over 50, and has operated the farm for more than 30 years. Let’s explain the rule.

CSD Blogs and Opinions

U.S.-Colombia Trade Promotion Agreement Goes Into Effect May 15

Tue, 15 May 2012 19:19:00 +0000

Source: USDA

Agriculture Secretary Tom Vilsack made the following statement about the U.S-Colombia Trade Promotion Agreement, or Colombia TPA, which enters into force today."Beginning today, U.S. agricultural exporters receive duty-free access on more than half of the products we currently export to Colombia, and virtually all remaining tariffs will be eliminated within 15 years."