Profit margins for crop production this year are the tightest that they have been for several years, which makes 2015 crop insurance decisions extremely important. Many farm operators are looking for ways to reduce their crop operating expenses for 2015; however, cutting back on crop insurance coverage may not be a wise decision....More
That’s money in the ditch. If it were $82 in cash, would you pull over and grab it? That’s what western Minnesota “snirt” (snow and dirt) contains in nitrogen, phosphorus and potassium, per acre. Multiply that by a 160-acre field and we’re talking over $13,000.
Although USDA projects that plantings will decline among the three commodities, recent reports actually suggest that many U.S. farmers may be preparing to switch more acres from corn into soybeans due to the lower costs of production. Such a scenario would lead to increases in soybean plantings for 2015....More
In the 5 ag stories to read this week, get tips for monitoring stored corn and soybeans. Read the latest Farms and Land in Farms report from USDA, showing a decline in farms and farm acres. Take a look at options for crop insurance this year, and read about healthy soil improving yield. Finally, read a farmers point of view on what farmers know when it comes to growing food.
Corn traders seemed little surprised by the USDA's estimate of 89 million corn acres being planted in 2015 vs. the 90.6 million planted in 2014. More of a surprise might be by the continued strength in demand for the ethanol sector....More
Are you going to Commodity Classic this year? Have you downloaded the mobile app to your phone yet? Make sure you do so you can use some of the great features, including maps, the whole schedule, a to-do list and tweeting....More
Corn traders will be eager to hear the latest data released at the USDA Ag Forum scheduled for this Thursday and Friday. There will also likely be more traders paying closer attention to the planting progress of second-crop corn in Brazil....More
Are your tillage practices justified by real crop responses? “Individual farmer decisions about tillage system choice are often more motivated by traditions, prior experiences and what the neighbors are doing than by reliable research,” says Tony Vyn, Purdue University Extension agronomist and cropping systems specialist....More
There are certain characteristics of borrowers who will struggle at the end of the agricultural commodity super cycle. This includes farmers who won cash-rent lotteries during the upswing, as well as farmers who have high equity but marginal profits. Young ag professionals and rural America will also feel the pinch of the commodity downturn....More
Profit margins for crop production this year are the tightest that they have been for several years, which makes the 2015 crop insurance decisions even more critical. Producers have several crop insurance policy options to choose from, including yield protection (YP) policies and revenue protection (RP and RPE) policies, as well as several other group insurance policy options....More
December corn futures ended the week at about $4.18 per bushel, up about a nickel and enough to add a little strength to the price discovery level for crop insurance purposes. And for farmers worried that prices could tank well under $4, it may be a sign to forward contract a few acres, says Dan O’Brien, Kansas State University ag economist....More
The March Agricultural Survey conducted by the USDA’s National Agricultural Statistics Service (NASS) will survey approximately 82,000 of the nation’s farmers to determine their plans for the upcoming growing season....More
The deadline to finalize decisions on base acre reallocation and updating payment yields at local Farm Service Agency (FSA) offices is Feb 27. The deadline for producers to complete the farm program choice on each farm unit, and potentially on each eligible crop, is March 31....More
In the coming years, there will be ag borrowers who will struggle. Three specific groups to watch are those businesses that utilized too much of their profits and working capital to purchase land, those who acquired machinery to reduce income taxes and those with high debt levels....More
In the 5 ag stories to read this week, learn how farmers are becoming more compliant when planting a refuge for Bt corn, and make your farm bill choices in seven steps. Read new research that says climate change is impeding soybean yields, and see what's new for herbicides this year. Finally, enjoy a smile from some cows.
Anybody can market $8 corn but it takes a great marketing plan to market $4 corn. Know your strengths and weaknesses; consistency is key to your corn and soybean marketing plan. Make a strong commitment to executing your marketing plan....More
Dean Glenney set out to replicate the undisturbed fencerow soils he recalled plowing up in his youth. Along the way, he began producing record-breaking yields under low inputs, giving him returns considerably greater than neighboring conventional systems....More
With smaller net farm incomes, farmers have less money to spend to grow their corn and soybeans. To get through it, experts suggest a strategy: short-term investments, crop insurance, accurate records, cost of production and more....More
Many producers, including larger operations, quickly get themselves into a serious financial condition if they are complacent and fail to monitor financial records. A good CEO producer will generally have a good idea where they stand financially at any point in time....More
It appears we are definitely likely to see much tighter profit margins in corn and soybean production in 2015 and beyond, as compared to profit levels in recent years. These tighter margins can be manageable for farm operators that pay attention to farm operating expenses, land costs, overhead costs, etc., and have a good handle on what their breakeven market price levels are....More
In the five ag stories to read this week, you'll find tips for managing corn rootworm this summer, and get an insight into farmland values. Read about production costs for 2015, and whether or not more acreage reduces those per-acre costs. Finally, enjoy a #farmernice video, sharing all the great things farmers do for us, and the products we get from agriculture.
New weed control options, which include both veteran and new active ingredients, cleared major milestones on the road to commercialization in 2014. Dow AgroSciences, Monsanto and Syngenta have new herbicides available (or soon to be available) to growers to help combat resistant weeds in 2015....More
At a recent event, David Kohl offered advice to teenagers who want to farm or be in the agriculture business. Focusing on different types of education and classes, he encouraged students to take a variety of classes, focus on the good professors and to complete internships outside of their region and country....More
Those currently involved in doing cash flow planning may wonder what amount, if any, can be included in a cash flow projection for estimated farm program payments from the 2014 corn and soybean crop, and possibly for the 2015 crop year. There are many variables that factor in to the calculation of potential farm program payments; however, by knowing a few of the basics, a person can make a reasonable estimate of potential payments for 2014, as well as possibly for 2015....More