Farm operators and land owners will have several one-time choices to make in the coming months regarding their farm program participation for the 2014-2018 crop years. Since the commodity farm program choices are for five years, land owner approval and signatures will be required on all cash and share rented farm land. Some of the choices include: reallocation of crop base acres, farm program payment yields and risk programs....More
Corn prices, as measured by the national average corn price received by farmers, are sinking below the $4/bu. mark for the first time since summer, 2010. By harvest, cash corn prices could be $3.50/bu. or less. Old-crop soybean prices have stubbornly held their ground much better than corn, but new crop prices of $10/bu. or less are a real possibility by harvest. Like corn, we need to go back to 2010 to find sub-$10 soybeans....More
Several well respected sources think that we could see the current USDA bean yield estimate of 45.2bpa, be pushed higher by up 3-4%, meaning a 46.5bpa to 47bpa, may not be out of the question. A jump in yields that substantial could push ending stocks north of 500 million bushels and prices below $10.00....More
This installment of 5 Ag stories to read reminds growers to check soybeans for white mold, and to be sure they're in compliance when it comes to the new conservation measures in the 2014 Farm Bill. There are Q&As for those who need some tips on farmland leases, and ideas on reducing yield loss when it's time to harvest corn. Finally, read some funny lessons learned from farm mistakes.
Mostly dry weather prevailed in the Midwest, except for locally heavy showers in North Dakota, northern Minnesota, and the middle Mississippi and lower Ohio Valleys. Despite a July drying trend, most Midwestern corn and soybeans continued to thrive due to near- to below-normal temperatures and abundant soil moisture reserves.
We've posted several new videos covering relevant topics for farmers, including: land risk management, cost management strategies, cost of production, marketing strategy for low-priced corn and more. Check out these videos for insight and tips from industry experts including David Kohl, Matt Roberts, Mike Boehlje and Michael Langemeier.
Todd Keuthe, University of Illinois, talks about the market for farmland. "Most farmland owners see it as a long-term investment," Keuthe says. "People are willing to pay 34 times what they expect to earn."...More
Crop conditions across much the Midwest have been quite favorable through most of the growing season until late July, especially in the high-producing corn and soybean production states of Iowa, Illinois and Indiana, as well as other adjoining states....More
The corn and soybean crops continue to progress just ahead of average, with corn starting to hit dough stage and soybeans starting to set pods. Crop conditions are holding fairly steady, dropping just a point or two in the last week....More
As a farmer, how do you reduce risk? Ideas to accomplish that include: planting offensive and defensive hybrids and planning for multiple alternate future scenarios. Take some time to think about how you might react to reduced rail transportation, expanded GMO bans, an increase in the grain supply outside of the U.S....More
The USDA is forecasting a new record soybean yield (45.2 bushels) in 2014, exceeding the 2009 record of 44 bushels by a large margin. Like corn, high soybean yield expectations this year are based on generally favorable growing conditions to date and on the high percentage of the crop rated in good or excellent condition....More
I suspect with Chinese demand staying strong, some definite uncertainties remaining in Argentina and the entire month of August still ahead of our U.S. crop, the trade may take a bit slower approach to reducing price-risk. Producers should continue to keep hedges in place. Any rally back towards the $11.00 to $11.30 range must be viewed as an opportunity to reduce longer-term risk....More
Cool, dry air overspread the northern Plains and Upper Midwest. A lack of heat stress and abundant soil moisture continued to favor Midwestern corn and soybeans, although below-normal temperatures remained a concern with respect to crop development across the northern Corn Belt.
An interesting trend in both the 1980s and today is that late in the economic cycle, many lending institutions saw opportunity in the agriculture industry, and thus came into the field of agriculture for profits....More
Michael Langemeier, associate director, Center for Commercial Agriculture, Purdue University, talks about managing farm costs. He says growers need to seriously question new machinery purchases and that cash rents should be negotiated. Those two items can help control costs when commodity prices fall below breakeven levels....More
New-crop soybean futures prices have plunged from $12.50 per bushel in late June to $11 or below in three weeks. They closed down 9 cents at $10.85 Friday. And there’s no sign they will turn around anytime soon, says Jim Hilker, Michigan State University Extension ag economist....More
This installment of 5 Agriculture stories to read offers tips on controlling large weeds, as well as aerial seeding cover crops. Read about prospective returns and farm revenue given lower corn prices, and learn about a genetic discovery that could lead to better soybean varieties. Finally, enjoy the latest parody hit from the Peterson Farm Bros!...More
Sam Halcomb calculates a field’s revenue-generating potential, then offers a landlord 25-33% of that for cash rent. He’s found over the years that 25-33% accurately reflects a point where he can profit from current market conditions, while capturing present market values to satisfy the landlord....More
David Kohl spoke with CSD Editor Kurt Lawton about the farmer as a CEO, noting that profitable businesses have good people. From allocating profits to working capital and cost of production, as well as lender relationships, Kohl says that being proactive and having the right people around you is going to be critical for success....More
In visiting with producers between sessions at a recent conference, the big question was, “What if a large crop occurs next year in both hemispheres?” If that does occur, many producers who have high fixed cost structures will either continue to burn through working capital and cash, or they may be required to refinance operating losses, if their lenders approve....More
The USDA World Agricultural Supply and Demand Estimates (WASDE) Report released July 11 provided more negative numbers for future corn and soybean prices. The report showed significant increases in the projected ending stocks for both corn and soybeans by Sept. 1, 2015. The report also verified the expectations for very good to excellent 2014 national corn and soybean yields in the U.S. Corn and soybean market prices have dropped dramatically in the past few weeks, which will likely have a significant financial impact on farm operators in the Upper Midwest....More
David Kohl, professor emeritus, Virginia Tech University, spoke that the Wyffels Hybrids Corn Strategies Conference at Wild Rose Farm, Inc., near Galesburg, Ill. Kohl stressed the importance of grain and livestock farmers knowing their cost of production in order to be successful....More
Soybeans continue to try and break downhill slalom records (breaking over a $1.30 in the past 8 trading sessions) on thoughts of a mammoth new-crop coming down the pipe and talk that many U.S. crushers are claiming to have enough coverage to make it through August, possibly holding out until U.S. southern new-crop bushels hit the supply pipeline....More
Wet weather this season has increased the risk for sudden death syndrome (SDS) in soybeans, says Darren Mueller, Extension soybean pathologist at Iowa State University. “Unlike last year, most of the soybean crop was planted before the bulk of the rains started which further increases the risk of SDS."...More
Now that all of the corn and the majority of the soybean crops have emerged, corn silking and soybean blooming have started. Silking is slightly behind average, and blooming is slightly ahead of average. Crop conditions for both corn and soybeans have held fairly steady in the good/excellent categories over the past week....More