Ag Notes

WILL - Ag Notes - July 30, 2014

20 Percent of Farms Produce 80 Percent of the Value

by Todd E. Gleason

The 2012 Census of Agriculture hold many unique facts. Researchers at the University of Illinois have been digging through the numbers to find some plumbs. Todd Gleason reports it seems an old adage is borne out by the figures.

There were about 75 thousand farms in Illinois when the 2012 Census of Agriculture was taken by the United Stated Department of Agriculture. The census, by two different measures – acreage operated & value of production – suggests the majority of Illinois farms are small by either categorization. However, there are two interesting facts that flow with these categorizations. The smaller the farm the more likely it is to produce livestock of less total value, and the larger the farm the more likely it is to produce crops – mostly grains and oilseeds - of much greater value.

The Census of Agriculture defines a farm as any place from which $1,000 or more of agricultural products were produced and sold, or normally would

Categories: Agriculture

WILL - Ag Notes - July 30, 2014

Storing the 2014 Corn Crop

URBANA, IL. – The majority of annually produced crops such as corn obviously have to be stored. According to a University of Illinois agricultural economist, for corn producers, the question at harvest time will be who will store the portion of the crop which has not yet been sold.

“The portion of the crop that has not been sold can be sold at harvest for someone else to store, or the producer can store the crop on the farm or in commercial facilities,” said Darrel Good. “For the portion of the crop stored by the producer, the second question is whether the stored crop should be priced for later delivery or held unpriced. That decision is influenced by the magnitude of the carry in the corn market, the cost of storage, and expectations about the change in corn prices after harvest.”

Good explained that for corn that is stored and priced for later delivery, the price for later delivery needs to

Categories: Agriculture

WILL - Ag Notes - July 30, 2014

Will Crop Insurance Make Payments in 2014?

by Gary Schnitkey, Ag Economist - Univeristy of Illinois

In Illinois, crop insurance payments on corn likely will be lower in 2014 than in 2012 and 2013. Crop insurance payments in 2014 likely will not be large for soybeans. For both corn and soybeans, harvest prices will be lower than projected prices. However, above average yields likely will counter price decreases, leading to low crop insurance payments. Somewhat ironically, crop insurance payments likely will be lower in 2014 than in 2012 and 2013. At the same time, revenue and returns will be much lower in 2014 than in 2012 and 2013.

Product Choices of Farmers

In this article, focus is placed on revenue insurance products at high coverage levels, as most farmers purchase these products. The four revenue products available in 2013 were

Categories: Agriculture


WILL - Ag Notes - July 11, 2014

What if this is (NOT) a 173.6 bpa Year

by Todd E. Gleason

This week University of Illinois ag economist Scott Irwin and Darrel Good have posted an article to the farmdocdaily website. It poises the question of just how big a really big United States corn yield could become. The answer, based on past history, is 173.6 bushels to the acre.

That's the average bpa deviation of the previous 6 largest deviations from trend yield since 1960. Those are shown in the included graph. The largest percentage deviation in the trend came in 1972 at 15.2 percent. 

While the crop conditions reported by USDA each Monday support the potential for such a record setting national average yield for corn, the two caution this year does not following the normal pattern of the other six. The normal pattern is for near or just above normal rainfall and lower than average temperatures in the three I states; Iowa, Illinois, and Indiana. However, the number one corn producing state of those three (and the nation), Iowa, had nearly twice the June rain. 

"There is no historical precedent in the last five decades for an extremely high corn yield relative to trend (1972, 1979, 1982, 1985, 1986, 1987, 1994, 2004, and 2009) when Illinois, Indiana, or Iowa had such an extreme amount of precipitation during June" write the two ILLINOIS agricultural number crunchers. They add, "the same conclusion also holds when other major corn-producing states are included in the analysis". 

It doesn't mean such an exception won't occur, but rather that it has not happened before. History points to record yields with cooler, wetter weather runs through August. 

Categories: Agriculture

WILL - Ag Notes - July 10, 2014

EPA Administrator McCarthy Speaks to Agriculture

Excerpts released by U.S. EPA

SPEECH EXCERPTS from U.S. EPA Administrator Gina McCarthy's July 10, 2014 speech on the Clean Water Act proposal that United States agricultural interest fear will broaden the 'navigable waters' definition leading to greater governmental regulation of farm ditches, etc.
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Today, I’m here to talk about our Clean Water Act proposal, which was called for by the Supreme Court and by numerous state organizations, as well as numerous agriculture stakeholder groups. The aim of this proposal is clear: to clear up legal confusion and protect waters that are vital to our health, using sound science so that EPA can get its job done. It is crucial that we keep farmers and the ag industry as a whole doing what they do best: producing the food, fuel, and fiber that provide for our American way of life. The kinds of water bodies we’ll protect provide drinking water to 1 in 3 Americans.
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We agree that people have a right to healthy land and clean water, so we have to make sure people understand that the practices we put in place are reasonable and consistently applied. That’s how we make sure everyone is playing by the same rules, and that everyone can fully work their farms and ranches with confidence and certainty. All of us rely on science and accurate facts.

Categories: Agriculture, Environment

WILL - Ag Notes - July 07, 2014

Risky Business Study Works to Offset Financial Risk of Climate Change

by Todd E. Gleason

A group of business people and political leaders have released a project called Risky Business. University of Illinois Extension's Todd Gleason has more on the study and how it might be used in the Midwest to assess and mitigate the financial risk associated with climate change with Cargill's Chairman of the Board Greg Page.

Click on the arrow below to listen to the interview. You may visit www.riskybusiness.org for more complete details of the study.

Categories: Agriculture




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