Amid an ongoing worldwide slump in grain prices, Eighth District agricultural bankers reported a continued decline in farm income during the first quarter of 2015 compared with the previous year, according to latest Agricultural Finance Monitor. The average value of quality farmland also declined, with this trend expected to continue during the second quarter....More
In late March, USDA announced some proposed revisions to the actively engaged rules that are designed to further clarify some of the definitions and rules surrounding the requirement for management in a farm operation. This could potentially restrict certain individuals that currently qualify for farm program payments from potentially having future farm program payment eligibility beginning with the 2016 crop year....More
Last week we talked about cash flow, sensitivity analyses and liquidity and how those matter when working with your ag lender. This week, lets go over the importance of a business plan, communications and productive assets....More
In the 5 ag stories to read this week, get some tips for managing late-planted corn and learn about a bollworm that could make its way to the U.S. Get ag secretary Vilsack's take on the latest G-20 commitment to food security and download a mobile app for identifying weeds. Finally, read commentary from a farmer who's sick of the bashing and finger-pointing.
We will continue to strive, as an information provider, to present you with good examples that help you make the most of your 40 chances. As Howard wrote in his book, “You’ve learned from your mistakes, but I’d guess that none of you feel you can afford to take a single year left on your string for granted.” We wholeheartedly agree....More
In an environment of reduced prices and relatively high costs, the financials can quickly get out of hand if they are not analyzed and monitored. As producers look to diversify or shift enterprises, penciling out possible outcomes is critical upfront....More
Best management practices are hot topics inside and outside of agriculture. Have you ever wondered how you stack up as an agriculture producer? This year’s group survey at TEPAP results exhibited three potential weaknesses given the current agricultural economy which is transition....More
In my road warrior travels interacting with producers and agribusiness leaders, there is much discussion concerning oil prices and other economic variables that seem to provide a surprise around every corner. A question from one producer was, “How is oil connected to up to 80% of farm and ranch expenses and potential revenue?”...More
A “kiss of death” to businesses is bringing the younger generation into the business on a manager’s salary, but with hired employee work or skill sets. This principle is accentuated in a volatile economic climate....More
Handling employee issues in a farm business, particularly a family-run farm business, is tricky. Sometimes, a meeting is a better choice than an email. But treating all employees like employees, and not family, is a must....More
Ask yourself these energy-savvy questions: Have you analyzed diesel fuel use per row-crop acre? How much of your energy use adds profit? How much propane do you use to dry 1,000 bushels? What percent of a bushel did you lose in moisture discount?...More
The Obama Administration and some members of Congress are currently proposing some major changes in the federal crop insurance program. At the same time, other members of Congress and agricultural leaders are stressing the need to maintain a strong crop insurance program as the centerpiece of a risk protection program for U.S. crop producers....More
There are just days left before farmers have to finalize their farm program choices in the 2014 Farm Bill. For those who still need some explanations, help, tips or further information, we've put together a collection of stories for reference. From farm program basics to cash flow planning and market prices, here is the information you need to help finalize your farm program decision.
With USDA projecting an average corn price of $3.50 to $3.60 and soybeans at $9, these times require risk management survivalist mode. Dan O’Brien, Kansas State University Extension grain marketing economist, says the foreign crop production, U.S. weather during planting, the U.S. dollar and other factors may impact prices at any time....More
The 5 ag stories to read this week brings you the latest on proposed regulations for drones. Learn about the value of lost organic matter due to erosion, and meet farmers who are using websites to get more business. Read about canceling land rent contracts, and a positive article from The New York Times featuring a no-till farmer.
Will we get a second chance to price corn and soybeans at the higher prices last seen 3 months ago? The bears have the floor but remain patient. I'm betting on the too-too season to deliver a second chance to price new- and old-crop corn and soybeans this spring....More
The dealine for 2015 crop insurance elections is just days away. As you finalize your choices, consider the following: what coverage is best for your farm, and look at all available options, particularly new ones from the 2014 Farm Bill....More
Education does have an impact on employment, income, and who participates in the workforce. Moving forward, the agriculture industry will be starved for talented people who can manage increased sophistication of technology and innovation on complex businesses....More
Most farm operators have been contemplating farm program choices for the new farm bill for the past 6-8 months; however, decision time has now arrived. Producers have until March 31, 2015, to complete their farm program choice at local USDA Farm Service Agency (FSA) offices....More
Grant Noland encourages farmers to always add a personal touch when communicating with their landlords. “What you are doing on the farm is information they want and need, but they also want a look inside how your family operates and what makes your family tick. A little trivia can generate a buzz and attract new opportunities.”...More
A recent Reuters news article titled “Rent walkouts point to strains in U.S. farm economy,” claims that some farmers have abandoned farmland-rental commitments. "It might be better to let it go and cut your acres back, cause if you lose $100 per acre on a farm have to make up that loss from other farms,” says Kent Thiesse, vice president of MinnStar Bank, Lake Crystal, Minn....More
The first question I ask is, “Will the farm purchase be consistent with your business, family, and personal goals?” Too often investment decisions are made without determining their alignment with goals of other family members and partners....More
The USDA National Agricultural Statistics Service (NASS) released the 2014 estimated average county yields for corn, soybeans and other crops in late February. These yields will offer a pretty good estimate of where final Ag Risk Coverage-County (ARC-CO) farm program payments are likely to end up for the 2014 crop year....More