Monday, September 12, 2011
IAS Seed Plot Day
From Adam White, Pioneer Seed Specialist
This is a customer's field in Buchanan County that I went up to see in a helicopter last Thursday.
Goss' Wilt pretty well decimated the competitor and you can't even see any in the Pioneer product!
Goss' Wilt pretty well decimated the competitor and you can't even see any in the Pioneer product!
Our Reply: Thanks for sharing Adam! We'll be getting you an actual yield comparison later this fall, so stay tuned!! Call Adam @ 319-325-1421 if you want to visit about Goss' Wilt.
As seen on Marketwatchonline.com
CORN: September Corn finished up 9 at 745 1/2, 3 off the high and 19 1/4 up from the low, the CME reported. March Corn closed up 9 1/4 at 758 1/2. This was 19 3/4 up from the low and 2 3/4 off the high.
December corn moved from moderately lower on the day to close higher and near the highs as end-user demand was active on the early break. Talk of potential frost issues later this week, ideas that the USDA will lower planted area and maybe yield in the next monthly report and talk of a short-term oversold condition helped to pressure, the CME said.
The USDA pegged production at 12.497 billion bushels from 12.914 billion last month. This was slightly above expectations. Average yield was pegged at 148.1 bushels per acre, compared with trade expectations at 148.8 and 153 last month. US ending stocks for 2011/12 season were begged at 672 million bushels from 714 million last month but this was up from expectations of 636 million. Beginning stocks were adjusted lower by 20 million bushels. Feed usage was slashed by 200 million bushels and ethanol usage down by 100 million from last month.
Exports were also cut by 100 million bushels. In addition, the USDA announced a daily export sale if 114,300 tonnes of US corn to unknown destination. Weekly export inspections came in at just 16.5 million bushels which was well below trade expectations. Inspections need to average 33.7 million bushels per week to reach the USDA projection for the year. World ending stocks were adjusted higher to 117.39 million tonnes from 114.53 million last month and from 124.3 million tonnes last year. Weakness in the other grains and negative outside market forces helped to limit the advance, CME analysts said.
December corn moved from moderately lower on the day to close higher and near the highs as end-user demand was active on the early break. Talk of potential frost issues later this week, ideas that the USDA will lower planted area and maybe yield in the next monthly report and talk of a short-term oversold condition helped to pressure, the CME said.
The USDA pegged production at 12.497 billion bushels from 12.914 billion last month. This was slightly above expectations. Average yield was pegged at 148.1 bushels per acre, compared with trade expectations at 148.8 and 153 last month. US ending stocks for 2011/12 season were begged at 672 million bushels from 714 million last month but this was up from expectations of 636 million. Beginning stocks were adjusted lower by 20 million bushels. Feed usage was slashed by 200 million bushels and ethanol usage down by 100 million from last month.
Exports were also cut by 100 million bushels. In addition, the USDA announced a daily export sale if 114,300 tonnes of US corn to unknown destination. Weekly export inspections came in at just 16.5 million bushels which was well below trade expectations. Inspections need to average 33.7 million bushels per week to reach the USDA projection for the year. World ending stocks were adjusted higher to 117.39 million tonnes from 114.53 million last month and from 124.3 million tonnes last year. Weakness in the other grains and negative outside market forces helped to limit the advance, CME analysts said.
Fuel Prices
Gasoline prices at the pump will peak at $3.50 per gallon, on average, during next summer's driving season, vs. this year's high mark of $3.97 in May.
Diesel... $3.80 in June and July, also well below the 2011 peak of $4.12
As seen in The Kiplinger Letter
Diesel... $3.80 in June and July, also well below the 2011 peak of $4.12
As seen in The Kiplinger Letter
USDA Report
CROP PRODUCTION
USDA trimmed its estimate of national average corn yield to 148.1 bushels per acre from the August estimate of 153 bpa. That's a slightly greater cut than the average trade estimate, at 148.8.
The corn crop was pegged at 12.5 billion bushels from 84.4 million acres harvested, meeting trade expectations.
Soybean yield was raised slightly, to 41.8 bushels an acre from 41.4 bpa. The crop was raised from 3.056 billion bushels to 3.085 billion bushels, with a harvested acreage figure of 73.8 million. This production figure was near the high end of the pre-report range and slightly above average trade expectations of 3.025 billion.
As seen on DTN.com
Saturday, September 10, 2011
Friday, September 9, 2011
From Jay Frye
Harvest loss math link below...
http://corn.agronomy.wisc.edu/Management/L032.aspx
Our Reply: Thanks for the helpful tool Jay!
Thursday, September 8, 2011
Producer's Financial Records
In a nationwide and Canadian webcast for ag lenders sponsored by Web Equity Solutions, inquiring minds asked if I am seeing upgrades to financial records by producers.
My answer is yes and no. In the affirmative, the top 25% of producers economically have very sound financial record systems. That is, they complete annual and sometimes quarterly balance sheets on a cost and market value basis. They complete accrual adjusted income statements and develop projected cash flow statements.
What makes this group exceptional is that they not only complete the statements, but also use them in business decision-making. For example, one young producer at my ag lender school indicated that he monitors performance by comparing projected to actual results. He makes a note to his lenders concerning deviations and whether they are created by macro or microeconomic events.
Many of this top echelon of producers will benchmark their operation to others in the industry and in some cases, by enterprise. Exceptional data sets like FINBIN by institutions, state and lender databases are excellent resources with very clean data. Much of the data is compiled following Farm Financial Standards Council recommendations.
Does record keeping pay? A study I conducted a few years ago found that profits were twice as high for those operations that keep good records.
One danger that I see on the horizon is many business decisions and lending decisions are being made using only tax records, without factoring in accrual adjustments for inventory, payables, receivables, etc. This can be a recipe for disaster.
As seen on David Kohl's Corn & Soybean Digest Blog
My answer is yes and no. In the affirmative, the top 25% of producers economically have very sound financial record systems. That is, they complete annual and sometimes quarterly balance sheets on a cost and market value basis. They complete accrual adjusted income statements and develop projected cash flow statements.
What makes this group exceptional is that they not only complete the statements, but also use them in business decision-making. For example, one young producer at my ag lender school indicated that he monitors performance by comparing projected to actual results. He makes a note to his lenders concerning deviations and whether they are created by macro or microeconomic events.
Many of this top echelon of producers will benchmark their operation to others in the industry and in some cases, by enterprise. Exceptional data sets like FINBIN by institutions, state and lender databases are excellent resources with very clean data. Much of the data is compiled following Farm Financial Standards Council recommendations.
Does record keeping pay? A study I conducted a few years ago found that profits were twice as high for those operations that keep good records.
One danger that I see on the horizon is many business decisions and lending decisions are being made using only tax records, without factoring in accrual adjustments for inventory, payables, receivables, etc. This can be a recipe for disaster.
As seen on David Kohl's Corn & Soybean Digest Blog
Fertilizer Prices Higher
Five of the eight major fertilizers were just slightly higher compared to a month earlier. DAP had an average price of $703/ton, MAP $721/ton, potash $637/ton, urea $590/ton and anhydrous $805/ton.
As seen on DTN.com
Market Softens a Bit
Corn market bulls may be getting a little nervous as fundamental indicators continue to sag. The carry in the futures spreads has been strengthening again this week, indicating a slightly more bearish commercial outlook, said DTN.
As seen on marketwatchonline.com
Wednesday, September 7, 2011
NFL Season Kicks Off- Thursday
ESPN News - Peyton Manning (208 straight starts) will miss opener, Colts chairman Bill Polian told ESPN NY 1050
Opening Calls
CORN: Corn futures are called 3 to 7 cents higher.
SOYBEANS: Soybean futures are expected to start the day session 6 to 10 cents higher.
CATTLE: Cattle futures are expected to open 10 lower to 10 higher.
HOGS: Lean hog futures are called 10 to 30 cents higher this morning on Turnaround Tuesday bargain hunting.
As seen on marketwatchonline.com email blast
SOYBEANS: Soybean futures are expected to start the day session 6 to 10 cents higher.
CATTLE: Cattle futures are expected to open 10 lower to 10 higher.
HOGS: Lean hog futures are called 10 to 30 cents higher this morning on Turnaround Tuesday bargain hunting.
As seen on marketwatchonline.com email blast
"Productivity Gap"
Closing the Productivity Gap
By Charles Johnson
Progressive Farmer Contributing Editor
Supplying enough food to meet the ever-growing appetite of the world is a colossal challenge. The United Nations estimates the world head count is increasing by 78 million each year, about the size of the population of Germany. According to World Health Organization figures, as many as 3.5 million people a year -- or about 9,500 a day -- die due to malnutrition. By the time global population hits a projected 9 billion by 2050, food production around the world must be 70% greater than today's level to close the deficit between supply and demand. This is referred to as the "productivity gap."
Read the rest of the article
Farmland Auction Alert- Advanced Sealed Bid
Buchanan County Farmland Offered- Luloff Farm Partnership
Written offers being solicited and due September 8, 2011. Auction held for private bidders at 10 a.m. @ St. Patrick's Parish Center, Winthrop, IA
Closing: March 1, 2012
136 acres, sections 15 & 22 in Byron Township.
Luloff Farm Soil Map
Written offers being solicited and due September 8, 2011. Auction held for private bidders at 10 a.m. @ St. Patrick's Parish Center, Winthrop, IA
Closing: March 1, 2012
136 acres, sections 15 & 22 in Byron Township.
Luloff Farm Soil Map
Tuesday, September 6, 2011
Four Months to get New Farm Buildings Finished!
Farmers who are in the process of constructing new farm buildings or are thinking about it now have less than four months to go if they want to take advantage of 100% bonus depreciation and deduct all of the cost on their 2011 tax return.
Remember, there is no loss limitations on this deduction unlike Section 179 and a net farm loss can be used to offset other income such as wages, interest, rents, etc.
Also, the building must be finished before the end of the year, not simply paid for. Usually an occupancy permit from the county should be sufficient to show a "in service" status. If the building is not finished until 2012, then the deduction will occur in 2012 and the it will be limited to 50%, not 100% (unless they change the rules).
As seen on The Farm CPA Blog
Remember, there is no loss limitations on this deduction unlike Section 179 and a net farm loss can be used to offset other income such as wages, interest, rents, etc.
Also, the building must be finished before the end of the year, not simply paid for. Usually an occupancy permit from the county should be sufficient to show a "in service" status. If the building is not finished until 2012, then the deduction will occur in 2012 and the it will be limited to 50%, not 100% (unless they change the rules).
As seen on The Farm CPA Blog
Monday, September 5, 2011
Sunday, September 4, 2011
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