We have received a large number of inquiries for information on the potential use of “flexible cash leases” for the 2013 crop year. Flexible leases also work well for newer or younger farm operators that may not be able to afford the higher cash rental rates for farm land. A flexible lease makes it easier to use a crop revenue insurance policy, along with some forward pricing of grain, as risk management tool for farm operators. Most Ag Lenders are quite supportive of the use of flexible leases by farm operators, as a risk management tool. A flexible lease, with a fair base rental rate, allows landlords the security of a solid base rental rate, while having the opportunity to share in added profits when yields and crop prices exceed expectations. Flexible leases are a nice alternative for Landlords that want to continue to work with long-standing farm operators with cash rental arrangements, without setting cash rental rates too high to keep the current tenants. [ more ... ]
The continued strength in corn and soybean commodity prices in the past few months, and the resulting increase in crop income per acre for 2012, has caused many landlords to consider significant increases in cash rental rates on farm land for 2013. This comes after substantial increases in most rental rates from 2008-2012. Many crop producers are concerned that the favorable crop prices may not last long term, and that the gross income per acre in future years may not be high enough to justify the higher cash rental rates that are being proposed for the 2013, or potential future rental rate increases. In addition, crop input costs for seed, fertilizer, chemicals, fuel, and crop drying are likely to be higher in 2013, after a rise of about 10-20 percent for the 2011 and 2012 crop years. [ read more ... ]
The October 11 USDA Crop Report showed significant increases for both corn and soybean yields in Minnesota, as compared to September Crop Report. This corresponds closely to actual corn and soybean yields being reported from many areas of the State, which have been better than expected, given the extremely dry weather conditions that existed in several areas. Crop yields in the Southwest and South Central parts of the State have been highly variable due to the drought conditions that existed during the last half of the 2012 growing season. However, it appears that adequate stored soil moisture resulting from the above normal rainfall in May, along with some timely rainfalls during the critical portion of the growing season, helped achieve the better than expected 2012 corn and soybean yields in many areas of the State. Minnesota is certainly the “bright spot” in the U.S. in 2012 for corn and soybean yields, as nationwide yield results come in during this drought year. [ read more ... ]
With Federal Crop Insurance, every year is different, and with the multiple options available to producers, there are many variable results from crop insurance coverage at harvest time. 2012 will be no different, with some producers choosing Yield Protection (YP) policies (yield only) versus Revenue Protection (RP) policies (yield and price). Producers also have differences in the level of coverage, and some producers chose “optional units”, while other producers chose “enterprise units” for 2012. [ read more ... ]
Corn and soybean harvest is progressing at a very rapid rate in most portions of Southern Minnesota and Northern Iowa, as a result of almost perfect harvest conditions. As of September 21, harvest progress for both corn and soybeans was at 25-50 percent completed in much of South Central and Southwest Minnesota. This level of harvest progress is more typical of mid-late October than late September. Most of the crops have matured beyond any potential damage from a killing frost. [ read more ... ]
The USDA Crop Report released on September 12 made a slight decrease in the expected U.S. corn and soybean production for 2012, as compared to the August USDA estimates, reflecting the severity of the 2012 drought in many areas of the U.S. USDA is now estimating the total 2012 corn production at 10.7 billion bushels, which slightly below the 10.8 billion bushel estimate in August. Total U.S. corn production was 12.3 billion bushels in 2011, 12.5 billion bushels in 2010, and 13.1 billion bushels in 2009. If the 2012 projections hold up, this would be the lowest total U.S. corn production since 2006. [ read more ... ]
The very warm growing season this year has pushed the 2012 corn crop very rapidly toward maturity. Corn harvest has begun in many areas of South Central and Southwest Minnesota. The corn moisture content is in the 20-25 percent range on early planted corn, which is more typical of early October conditions. Corn yields in 2012 are expected to be quite variable across Southern Minnesota, depending on timely rainfalls, soil types, planting date, and corn hybrids. So far, the early corn yields in many areas have been pleasantly surprising, considering the extremely dry conditions that existed throughout most of July and August across the region. [ read more ... ]
The 2012 drought has brought the Renewable Fuels Standard (RFS) into the forefront. The RFS regulations are managed by the U.S. Environmental Protection Agency (EPA), and those regulations are quite complicated. The RFS requires that minimum levels of renewable biofuels must be used to blend gasoline in the U.S. Corn-based ethanol is the primary fuel ingredient that is used to meet the RFS requirement. Currently ethanol makes up about 10 percent of the U.S. fuel supply, with just over 13 billion gallons of ethanol per year being produced in the U.S. [ read more ... ]
Many farm operators across the upper Midwest are facing the most severe crop loss since 1988, with some producers facing the most significant drought since the 1930’s. There will undoubtedly be large financial losses in many areas of the regions to farm operators, associated businesses, and local communities, even in some portions of Southern Minnesota. However, the financial losses to corn and soybean producers in 2012 will be somewhat mitigated by Federal Crop Insurance coverage. [ read more ... ]
The corn and soybean meal market prices have responded to the current U.S. drought with dramatic market increases. Chicago Board of Trade (CBOT) December corn futures prices rose to over $8.00 per bushel by mid-August, an increase of nearly $3.00 per bushel since mid-June, or about a 60 percent increase in about two months. Similarly, CBOT soybean meal prices have increased by nearly $200.00 per ton in recent months, and are now over $500.00 per ton. Corn and soybean meal are important feed ingredients for all segments of the livestock industry. [ read more ... ]
Due to the severe drought affecting much of the major corn and soybean producing areas of the United States, the August 10 USDA Crop Report was very highly anticipated. A large percentage of the primary crop growing areas in Illinois, Indiana, Iowa, Missouri, Nebraska, and Kansas are in severe to extreme drought conditions, with major reductions in crop yields. Portions of Wisconsin, North and South Dakota, Ohio, and Southern Minnesota have also experienced some drought conditions. The USDA crop estimates were based on crop conditions as of August 1, and the USDA Crop Report verified the severity of the 2012 drought. [ read more ... ]
Ask most current farmers over 40 years old in the Upper Midwest about the worst drought that they remember, and 1988 would be a common response. However, that could potentially change after this year, as the drought in many areas of the Midwest in 2012 is setting up to be quite severe. Large portions of Illinois, Indiana, Iowa, Ohio, Missouri and other States are indicating potential for major crop losses, while growing areas of Nebraska, Minnesota, and South Dakota are facing serious extended dryness that could lower crop yields. [ read more ... ]
For generations, the standard measure for corn growth was “knee-high by July 4th”, which meant that the corn plant should be able to produce a crop for that year. Of course, most farmers a couple of generations ago had much lower yield goals for their corn than the farmers of today. Today, “waist-shoulder high” corn by July 4th is a more typical, and has resulted in some very good corn yields in most areas in recent years. It is difficult to get exceptional corn yields in the Southern half of Minnesota or in Iowa, if corn is only “knee-high” or smaller on July 4th. [ read more ... ]
The rapid rise in farm land values in Minnesota and other areas of the Upper Midwest are discussed quite often by farmers and other rural residents across the region. Many times the extremely high value land sales generate most of the discussion. Of course, there are many other land transactions that take place throughout the year that are recorded at County Offices, but are not usually made public. When looking at trends in land values, it is important to look at all of land sales data. [ read more ... ]
Corn and soybean prices have been quite erratic this Spring, due to tight supplies of soybeans, increasing supplies of corn, stable demand, and changing weather conditions across the Country. Nearby corn futures prices on the Chicago Board of Trade (CBOT) dropped nearly $1.00 per bushel since early April, while nearby soybean futures prices dropped by over $1.00 per bushel since late April. Local cash prices and new crop prices at are grain elevators and grain processing plants have not dropped as significantly, due to strong basis local levels, which have been maintained by very tight grain supplies and continued strong short-term demand. [ read more ... ]
Overall, crop conditions across most of the Southern two-thirds of Minnesota have improved considerably in the past couple of weeks. In late May, many areas of Southwest, South Central, and Central Minnesota were impacted by excessive rainfall, severe storms, and some crop emergence problems; however, much of the crop has now recovered. There were some locations that had severe storms again in the past week with strong winds, hail, and heavy rainfalls, with portions of Southeastern Minnesota being impacted most significantly. [ read more ... ]
For decades in Minnesota, June has been known as “Dairy Month”. Following are some interesting facts and figures about the Dairy industry : [ read more ... ]
Growing conditions for corn and soybeans are quite variable across Minnesota. In South Central Minnesota most of the corn and soybeans were planted by mid-May and have emerged, with some of the early planted corn being 12-15 inches tall by the beginning of June, but most corn being somewhat smaller. Overall the warmer and wetter conditions that existed in May across the State have been quite favorable for crop development; however, many locations have been impacted by excessive heavy rainfall events and severe storms during the month. [ read more ... ]
On May 24, Gene Hugoson of Granada, MN was honored as one of three 2012 Laureates for the University of Minnesota Siehl Prize for Excellence in Agriculture, which is one of the most prestigious awards at the University. [ read more ... ]
Some areas of Southern and Central Minnesota received excessive rainfall on May 23and 24, plus additional rainfall on May 26 and 27, which caused some crop damage due to standing water in fields. Most of the region received 2-3 inches of rain, with several locations receiving 3-5 inches or more of rainfall in a 24-hour period. In addition to the heavy rainfall amounts, some areas also were impacted by hail damage to newly emerged crops, and by strong winds, which caused some property damage. Fortunately most of the property damage was fairly isolated in nature. [ read more ... ]
Eligible farm operators and land owners have until June 1, 2012, to enroll in the 2012 DCP farm program at County Farm Service Agency (FSA) offices, including the ACRE program for 2012. As of early May, only about half of the producers were enrolled in the 2012 DCP farm program in many counties. Producers must enroll in the 2012 DCP farm program in order to receive direct payments for 2012 on eligible crop base acres, as well as other program benefits. [ read more ... ]
Across Southern Minnesota and Northern Iowa, nearly all the intended corn is planted, and over 90 percent 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. However, strong winds on May 17 and 18 in Southern and Western Minnesota caused considerable blowing dirt, which did cause some crop damage to newly emerged corn and soybeans. In addition, the intense thunderstorms during the first week of May caused considerable soil crusting in some areas, which has lead to emergence problems for corn and soybeans that were just planted prior to the heavy rainfall events. In the most severe locations, portions of fields were replanted due to the soil crusting, as well as due to drown-out damage in low areas of fields resulting from excess rainfall. [ read more ... ]
The USDA Crop Production and World Agricultural Supply and Demand Estimates (WADSE) Reports released on May 10 were regarded as “bearish” for the corn market and “bullish” for the soybean market in the coming months. Corn stocks are expected to double by the end of the 2012-13 crop marketing year, while the ending soybean stocks are expected to be at the tightest level on record by the end of the 2012-13 marketing year, which runs from September 1, 2012 to August 31, 2013. Following are some highlights of the latest USDA latest USDA WADSE and Crop Reports : [ read more ... ]
It’s hard to believe that in less than a ten day time period we can go from concerns over drought to excess rainfall, which is causing flooded fields in some areas. That is exactly what has happened dung the last few days of April and the first week of May in some parts of Southern Minnesota. Much of the rain came as part of intense thunderstorms with heavy downpours that caused some flash flooding, and featured strong winds and large hail in some areas. The wind and hail did cause some isolated building and property damage in rural areas, but had very minimal impact on the newly planted crops. [ read more ... ]
Producers that previously enrolled in the ACRE for the 2009, 2010 or 2011 crop year will be enrolled in ACRE for 2012, provided that they sign-up for the 2012 Farm Program at County FSA offices, and meet all other program criteria. Other producers can enroll in ACRE for 2012 when they sign-up for the 2012 Farm Program, or at anytime until June 1, 2012. ACRE enrollment does require a signature from landlords on cash rental farm units, and results in a 20 percent reduction in direct payments for 2012. Producers are encouraged to analyze situations and scenarios that are more favorable for ACRE enrollment for 2012, as compared to continuing with the traditional DCP farm program. [ read more ... ]
