WILLAg Notes

November 30, 2016

How to Connect your Site to the Prospective Business | webinar



University of Illinois Extension’s Community and Economic Development team will host a free webinar, Site Selection: How to Connect your Site to the Prospective Business, on Thursday, December 8, 2016 from Noon to 1PM, Central Time.



The webinar, a final in Local Government Education’s fall series on economic development in Illinois, will feature Cheryl Welge, who will be presenting a more detailed discussion of the site selection process. In the previous site selection webinar, we covered the state and technical aspects of Location One and site selection in Illinois. During this upcoming webinar, Cheryl will share her expertise on capacity requirements for site selection from the site selector perspective.

As a senior business development executive in Ameren Corporation’s Economic Development Department, Cheryl serves as the business development contact for a twenty-two county region in western, central and southwestern Illinois. In this role, she implements Ameren’s community and business development programs within Ameren-served communities. Cheryl is a first-line representative responsible for developing, coordinating and implementing Ameren’s proactive business development services to create and sustain revenue growth, support public strategy implementation and help foster positive community stewardship on behalf of Ameren subsidiaries.

Cheryl began her utility career with one of Ameren’s legacy companies – Central Illinois Public Service Company – in 1989. After serving in various support positions within both the Industrial Services and the Customer Expansion & Retention Departments, Cheryl assumed the role of marketing coordinator of the CIPS Marketing Programs Department in 1996 and joined the Ameren Economic Development Department in 1998. In 2013 she assumed her current position as senior business development executive.

Cheryl is a graduate of both Lincoln Land Community College and Southern Illinois University-Edwardsville, having earned a Bachelor of Science, Business Administration, with a major in Marketing. In addition, she graduated from the University of Oklahoma’s Economic Development Institute in April 1999 and became a Business Retention & Expansion International (BREI) certified BR&E Consultant in 2003. Cheryl is a Past Chairman of the Illinois Economic Development Association (formerly known as the Illinois Development Council) and a past recipient of the Distinguished Economic Developer Award.

There is no cost to attend the webinar; however, pre-registration is required. Register online or contact Ken Larimore at larimore@illinois.edu for more information.


November 30, 2016

2016 Gross Farm Revenue & Income

It looks like this year is going to be better than last year for farmers in central Illinois. Todd Gleason explores how gross income has changed for row croppers in the middle of the prairie state.



The gross revenue for corn is $292 per acre. It is tallied from three income sources. The crop is worth $262. There was a $20 farm safety net payment from the ARC-County program and a $10 crop insurance indemnity. The total, again $292, is lower than last year says University of Illinois Agricultural Economist Gary Schnitkey, “Even though we are putting in a very high yield, we are using 231 bushels to the acre for the corn average - the same as in 2014, revenues will be down for corn in 2016 as compared to 2015”.



Schnitkey calculated the gross revenue figures for the farmdocdaily website.

The soybean figures add up in a similar fashion. The gross revenue is estimated to total $718 per acre. It’s a figure much higher than the 2015 gross says the agricultural economist, “We are including very high soybean yields for 2016. Record-breaking yields, in fact, of 73 bushels to the acre. The price is above $9.50, and this may actually turn out to be low as prices continue to climb. Overall, revenue on soybeans will be up from last year and much higher than total costs. So, our bright spot for the 2016 year will be revenue and income from soybeans”.



All in all, on the highly productive soils of central Illinois, 2016 will go down as a high-yield low-income year. Another year in which farmers just-get-by says Gary Schnitkey.

Quote Summary - Get-by year, but better than it could have been without the high yields. Most farmers will maintain equity, but may see some working capital declines. The declines will be more pronounced on farms working a higher percentage of cash rented land. It is better than 2015, but still not up to sustainable levels for the long-run. We need to see higher returns, particularly for corn prices in the future.

There are a series of graphics detailing 2016 central Illinois row crop farm gross income on the farmdocdaily website.


November 28, 2016

Illinois Farm Economic Summits

The big story in Illinois agriculture in 2016 continued to be the “margin squeeze” faced by crop producers. This squeeze was brought on by low corn, soybean, and wheat prices and costs of production that are only slowly adjusting to the new price realities. At present prices, further cost of production reductions will be required. Producers and landowners face a series of difficult management challenges as they grapple with how to adjust to the changed environment. Should cash rents be lowered? And if so, by how much? How much relief will be seen through lower fertilizer and seed prices? What are the prospects for grain prices to recover from current depressed levels?

University of Illinois Extension and members of the farmdoc team from the Department of Agricultural and Consumer Economics will be holding a series of five Farm Economics Summit meetings to help producers navigate these difficult times.

LEARN MORE & REGISTER TODAY

Speakers from the farmdoc team at the University of Illinois will explore the farm profitability outlook and management challenges from several perspectives, including the 2017 outlook for prices, farm financial management in tough times, needed changes in farmland leases, updates on the farm program safety net, agricultural credit conditions, and long-term weather and yield trends. The format for the meeting will be fast-paced and allow plenty of time for questions from the audience.


November 28, 2016

EPA Renewable Fuels Standard Rallies Soybean Oil Prices

Source | Darrel Good, Agricultural Economist - University of Illinois

The price of soybeans rallied about 10 percent from mid-October to mid-November. It came,despite the record sized crop harvested in the United States.



Farmers have been in awe of the soybean market since mid-August. There have been a few reasons for it to rally; a short crop out of South America and a drought constrained supply of palm oil coming from Indonesia for instance. Still, this U.S. soybean crop is big, mighty big in fact. Yet, the price of soybeans has gone higher.

Darrel Good writes about it in this week’s Weekly Outlook. You may read it online at FarmDocDaily.

There are two unusual things about this price rally. Well, one really, but it is driven by the first. The rally has come because the world seems to be short of vegetable oils. Soybean oil is among those. Here’s the important part, soybean oil lead rallies generally do not last. Darrel Good thinks this one might and that it could change the dynamics of the soybean complex. The change is driven by the Renewable Fuels Standard. The RFS did the same thing for the corn market when it began to ramp up ethanol production in the United States more than a decade ago.

The soy complex is made up of three parts; the price of soybeans, the price of soybean meal, and the price of soybean oil. The last two are the products derived from the soybean when it is processed, crushed.

The EPA RFS announcement, made last week, initially resulted in a surge in soybean oil and soybean prices. Increasing soybean oil consumption for mandated advanced biofuels, in this case biodiesel production, this year and beyond may require the domestic soybean crush to be larger than previously thought concludes Darrel Good. He says this could lead to some long-term pricing questions.

Historically, the domestic crush has been driven by soybean meal demand. If it is driven instead by soybean oil demand, this could result in lower soybean meal prices. Soybean meal has a short shelf life. Its price would need to be low enough to for it to be used quickly.

The impact of higher soybean oil prices and lower soybean meal prices on the price of soybeans is difficult to anticipate. However, a “surplus” of soybean meal, says Good, might result in lower soybean meal prices relative to feed grain prices. It could cause the soybean meal to corn price ratio that has ranged from 2.55 to 3.2 in recent years to decline. The historical range is 2.0 to 2.5.


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