November 18, 2017

Using the Productivity Index to Figure Cash Rents

Right now farmers are in the middle of negotiating 2018 cash rents. This while their incomes have been depressed for four years. Agricultural economist Gary Schnitkey has been working up a way for landowners and their tenants to feel better about bringing cash rents down.



The University of Illinois number cruncher has developed a formula to derive cash rent from a fields P.I.. That's the Productivity Index. It is benchmarked, in a fashion, to USDA's Cash Rents Survey and uses a geographic adjustment tied to the CRD, that's USDA's Crop Reporting District. This allows for demand patterns in an area to show up in the formula. Schnitkey, in a farmdocDaily article says the P.I. and CRD adjustment explains 91% of the variability in the average cash rents as reported by USDA. Here's how the formula, he says, works in the state of Illinois, "Just to give you an example, if you are in east-central Illinois, in the eastern CRD, the CRD index is 26. This means you take your P.I. multiplied by 2.79, then subtract 147 and add 26 to it that will give you an average cash rent for that parcel.

Again, the formula is... Cash Rent = (2.79 x PI) - 147 + the CRD Adjustment... ...in this case 26.

If you fill all those numbers in for a farm in Champaign County with a P.I. of 134 the expected average cash rent for that farm with a 134 P.I. would be $253 per acre. This...benchmark...says Schnitkey provides a jumping off point from which farmers and landowners can discuss adjustments based on current economic conditions. By the way, the P.I. of farmland in Illinois, many farms around the nation, can be found in a free online tool called Acre Value. Look for it at www.acrevalue.com.


November 18, 2017

Corn Supply A Burden To Prices

The USDA’s Crop Production report released on November 9 reported an unexpectedly large corn yield increase for the 2017 crop. Corn prices suffered a moderate decline following the report release considering the magnitude of the yield increase. However, University of Illinois Commodity Markets Specialist Todd Hubbs says corn prices will struggle to find support due to the ample supply available during the 2017-18 marketing year
.


November 09, 2017

Howard G. Buffett Discusses the Future of Agricutlure



Howard Buffett discusses his view of agriculture with National Association of Farm Broadcasting 2016/2017 President Max Armstrong at a November 8 forum during the 2017 NAFB Convention in Kansas City, Missouri. Buffett is a Philanthropist, Farmer, & Macon County Sherriff from Decatur, Illinois.


November 06, 2017

IL Governor Rauner Declares Harvest Emergency

Weather-related decision permits trucks hauling ag commodities to exceed gross vehicle weight limits, speed crop transportation

YORKVILLE (Nov. 5, 2017) — Gov. Bruce Rauner today declared a statewide harvest emergency to assist farmers and grain handlers who are grappling with the fallout of rain-related delays.

“Illinois is home to 72,000 farms on 26.7 million acres. We are among the top three corn producers in the nation,” Rauner said while visiting Stewart Farms in Yorkville Sunday afternoon. “Moving corn and other crops in a timely and efficient manner affects the bottom line of hard-working farmers. This declaration is an appropriate response to an urgent need.”

Under a new law Rauner signed Aug. 11, the declaration permits drivers of trucks carrying agricultural commodities over state highways to obtain a free permit to exceed gross vehicle weight limits by 10 percent. Further, local authorities may waive the permit requirement at their discretion. The emergency declaration is in effect for 45 days beginning today, Nov. 5.

The Illinois Department of Transportation already is mobilizing the permitting process and notifying law enforcement agencies throughout the state. More information is available at https://truckpermits.dot.illinois.gov/.

“I would like to thank the governor for making this declaration today,” said Richard Guebert Jr., president of the Illinois Farm Bureau. “This harvest season emergency declaration will improve the transportation of our crops.”

According to data from the U.S. Department of Agriculture, the Illinois corn harvest at the end of October was 17 percentage points behind the prior year and 11 percentage points behind the five-year average. The corn harvests in the Northwest, Northeast and East regions are especially hard hit. Harvesters of a variety of crops made up ground toward the end of October, but early delays still are causing backups in the transportation chain.

Jeff Adkisson, executive vice president of the Grain and Feed Association of Illinois, also praised the governor’s action, noting that a bumper crop combined with the harvest delays to compound the situation.

“In years when harvest is better than anticipated, crops like corn and soybeans may need to be stored in piles outside of the traditional concrete or steel bins or tanks,” he said. “This declaration will allow grain elevators to transport commodities out of their facilities quicker, thus making room for grain stored on the ground to be moved to more suitable storage structures.”

Illinois Department of Agriculture Director Raymond Poe said the action will encourage the farming community.

“Illinois farmers work tirelessly year-round, even more so around harvest,” he said. “The Department of Agriculture would like to thank Gov. Rauner for making this declaration and for his support of Illinois farmers.”

And state legislators also welcomed the harvest emergency declaration.
State Rep. Toni McCombie, R-Savanna, co-sponsored HB 2580, which amended the state vehicle code to allow for exceeding trucks’ gross weight limits when a governor declares a harvest emergency.

“Mother Nature has presented Illinois farmers with a rainy spring and fall, making this year’s harvest challenging,” she said. “The State of Illinois was proactive when we foresaw an emergency this year.”

“Farmers form the backbone of our state’s economy,” said state Sen. Neil Anderson, a Republican from Andalusia who sponsored the legislation in the Senate. “Declaring a harvest emergency will reduce red tape and allow those farmers who are still in the field to focus on getting their crops in before winter really takes hold.

“The sooner farmers can get their commodities to market, the more stable the market will be for the consumer.”

State Rep. Dan Swanson, R-Alpha, a member of the House Agriculture and Conservation Committee, said the rainy planting season caused corn and beans to mature later this fall.

“As a result, many farmers are behind in getting their crops harvested,” he said. “With this declaration of a harvest emergency, we will allow farmers the ability to get more grain to the storage sites quicker.”


Page 2 of 52 pages  < 1 2 3 4 >  Last ›