In 2015, crop revenues are likely to be significantly reduced compared to revenue levels in recent years. 2015 crop input costs for seed, fertilizer, and chemicals are likely to be similar to 2014 levels, and land rental rates will likely remain fairly high, which adds more risk to 2015 crop production....More
Farmers see the benefit of genetic engineering because it's made their work safer, said Don Lee, genetics professor at University of Nebraska, when he spoke to Managing Editor Susan Winsor. Lee also talked about the benefits of golden rice, as well as the naturally occurring process and the safety of the foods....More
Everyone has had their fill of football bowl games, and now we are into the college and professional football playoffs, which usually provide some surprises and upsets. This is much like thinking ahead about what to expect in 2015. The following are a few of the thoughts and perspectives that you may want to consider in your planning or conversations with your business partners....More
One of the key components for farm operators to understand as they evaluate the new farm program options is the concept of Market Year Average (MYA) price. The MYA price for a given crop year is used to calculate any potential payments for all three farm program options: Price Loss Coverage (PLC), Ag Risk Coverage-County (ARC-CO), and Ag Risk Coverage-Individual (ARC-IC). The historical MYA prices are also used to determine the benchmark revenues for both the ARC-CO and ARC-IC program options....More
The five agriculture stories to read this week include farm revenue outlook for 2015, as well as long-term agricultural projections. Read about a farmer who is building soil organic carbon to grow better crops, and a company that's got a robot to do your nitrogen sidedressing. Finally, for some entertainment, take a fresh breath of farm air with the Peterson Farm Bros.
As a producer, I continue to hold out for slightly higher corn prices before pulling the trigger on additional sales. From a spec perspective, I prefer being a longer-term buyer on a deeper break. And I am sticking with the thought that higher soybean prices might be in our near-term future....More
2015 is setting up to be another interesting year in the agriculture industry, following a fairly profitable year in 2014 for many livestock producers, but a far less profitable year for most crop producers in the upper Midwest. 2015 will bring farm program sign up, as well as continued uncertainty about renewable fuels. There are also crop production costs to consider, and the hope that land values continue to moderate....More
Ask about the qualities of Chris Novak, the National Corn Growers Association’s (NCGA) new chief executive officer, and common themes quickly become apparent. Members of the NCGA selection committee, which picked Novak to succeed retiring CEO Rick Tolman, call Novak “strategic.” John Johnson, National Pork Board acting CEO, who worked under Novak there, calls him “a strategic thinker par excellence.”...More
My science brain is just plain confused. And I can’t wrap my head around the recent farmer survey that shows 31% of 4,778 farmers surveyed believe there isn’t sufficient evidence that climate change is occurring....More
The year 2014 has truly been a time of transition for the agricultural industry and rural areas. While challenging, there will be more opportunities to succeed in agriculture in the next decade than the last 30 years, but there will also be more opportunities to fail. A game plan including resiliency and agility will be the themes for 2015 and beyond for those moving to a higher level of management in the industry of agriculture....More
Five agriculture stories to read this week offer 2015 crop budgets and insight into falling gas prices. Read about lower land values, and see what's on Xpert Ed Usset's corn and soybean marketing wish list this Christmas. For some fun, check out amazing RC tractors at work.
The reality has set in that grain prices, cash flow and profit margins will be modest at best. Whether this part of the cycle correction will be one, two, or even five years or more in duration, farmers and their lenders will have to manage through these economic white waters....More
If your working capital burn rate is less than one year, it would be considered high risk. Above 3.5 years is indicative of a strong second line of defense and of course, between one and 3.5 years would be considered acceptable, but not stellar. To say the least, this winter and next year will be a balancing act as farmers juggle quickly converting liquid assets to cash to keep their businesses in operation....More
The combination of lower projected corn prices and soybean prices in 2015, together with nearly steady input costs for seed, fertilizer, and chemicals, will limit estimated potential returns over direct expenses and land costs, at average crop yields. Another major variable in breakeven levels in crop production are loan payments on capital investments such as farm machinery, facilities and land purchases....More
The process of enrolling in either the Agriculture Risk Coverage (ARC) program or Price Loss Coverage (PLC) program, which began in October and runs through spring, requires farmers to update their base acres and yields, then make a one-time decision for the program they will use for the next five years....More
Throughout the country many lenders and producers dealing with the grain industry may face situations when repayment is not possible this winter and into 2015. With high cash rents and leases, along with input cost creep, there is a strong possibility that 2014 and 2015 may not cash flow and may show negative repayment capacity for many grain producers. Now what?...More
Five agriculture stories to read this week include advice for renegotiating farmland leases (if you haven't done so already), as well as an FAQ on Title I programs in the 2014 Farm Bill. Read a perspective from Bayer CropScience CEO about the benefits of modern agriculture, and how that impacts our food safety. And while the Thanksgiving holiday has passed, it's not too late to be #thankful4ag, and to take a look at what U.S. farmers provide to make those amazing Thanksgiving meals.
Lessons from the past find that the stress point in business financials is repayment capacity given debt service commitments. Repayment capacity and the management factors that influence it should be front and center in many farmers’ game plans....More
Sign-up for the new farm program, which part of the new farm bill, is now underway at local USDA Farm Service Agency (FSA) offices. The new farm program will be in place for the 2014 to 2018 crop years for all eligible crops under the Commodity Title of the 2014 Farm Bill, including corn, soybeans, wheat and other crops....More
The November issue of Corn+Soybean Digest offered fresh ideas in merging art and science to farm for the big picture. There are also corn residue breakdown myths, including a photo gallery. Read challenges in rail transport, and weed control. Get an outlook about corn production in China, and see what's ahead in soil health tests. Finally, read about the weather future for the Corn Belt. And don't forget regular pieces from Editor Kurt Lawton, as well as new ideas from Xperts Ed Usset and Dan Frieberg.
Included in the five agriculture stories to read this week is a reminder to pay attention to pesticide labels, particularly if planting cover crops. There's new research regarding demand for genetically modified seed, and a recap of the choices to make regarding upcoming farm bill options. Hear from Xpert Ed Usset about market price triggers, and check out a great Buzzfeed list about the top 10 things farmers are tired of hearing.
This month in particular, let's all be #thankful4ag. In doing so, go to thankful4ag.com, a cool website set up by Bayer CropScience. There, you can create a virtual holiday meal, learn some neat agriculture facts, and, the best part, help donate meals to those in need....More
Low corn and soybean prices and an expected increase in interest rates may put an end to farmland value increases, says Michael Langemeier, associate director of the Center for Commercial Agriculture, Purdue University. He says, however, that any decline will be slight and spread over more than a year....More
The grain industry is taking a body blow punch as prices have moderated over the year. If the lower prices continue into 2015 and beyond, there will be a “punch in the mouth” which will disrupt many producers’ strategic planning in the middle and later parts of the decade. A certain set of producers will still be profitable in the economic moderation. Let’s examine some of their characteristics....More
Five agriculture stories to read this week offer advice for watching your bottom line during this time of lower commodity prices. There are tips for winterizing your sprayer, as well as tips for successful weed control. Also read about the impact of low gas prices on the ethanol market. Finally, for some fun, enjoy the latest Peterson Farm Bros. parody, I'm so Farmer. Those fellas are so clever.