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Nitrogen Fertilizer Prices and Costs Lower for 2018 | Interview

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Nitrogen fertilizer prices are averaging lower now than in any time since September 2008. These lower prices could translate into roughly a $10 per acre saving in nitrogen fertilizer for the coming 2018 production year. Further savings may be possible for those farms who are applying above recommended nitrogen rates and are willing to cut fertilizer application rates. University recommendations suggest nitrogen application rates well below 200 pounds in northern and central Illinois.

Todd Gleason talked with University of Illinois agricultural economist Gary Schnitkey about his farmdocDaily article.

Average anhydrous ammonia prices in Illinois are reported approximately twice a month in the Illinois Production Cost Report, a publication of the Agricultural Marketing Service, an agency of the U.S. Department of Agriculture. In the November 10th report, the anhydrous ammonia price was reported at an average of $405 per ton, with an offer range from $343 per ton up to $440 per ton. Anhydr…
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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 pr…

More Money Raising Soybeans

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For four years in a row farmers in Illinois, other parts of the nation too, have made more money on soybeans than corn.



The numbers are pretty clear and University of Illinois Agricultural Economist Gary Schnitkey lays them out in an online farmdocDaily article. He says, on average, soybeans have been more profitable than corn since 2013, “One of the things we’ve seen is that soybean prices, when compared to corn, have been relatively strong since 2013. The ration of soybean to corn prices has been 2.74 since 2013, and it was 2.42 before that. So, we’ve seen soybean prices increase relative to corn prices.”

Farmers have responded to the higher soybean price.

When you look at historic price ratio changes, it is relatively easy to see when demand has pushed one crop over the other. The corn-based ethanol build up, for instance, from 2006 to 2013 has a soybean-to-corn price ratio of 2.42… that means the price of soybeans is 2.42 times greater than the price of corn.



Ethanol plants were b…

How Many U.S. Soybean Acres Needed in 2018

Listen to Todd Gleason’s full interview with U of I’s Todd Hubbsread farmdocDaily postFarmers in the United States have been planting more and more acres to soybeans. There is a simple reason behind this increase. Soybeans have been more profitable than other crops over the last several years. The question now is how many acres will they plant next year. University of Illinois Commodity Markets Specialist Todd Hubbs has been thinking about that one and he decided to determine how many acres are needed if the stocks-to-use ratio was to stay at about 7%. Hubbs says that number should provide a $9.50 season’s average cash price, “If we assume seven-percent stocks-to-use in 2018/2019 would give us $9.50, which would cover the cost of production in Illinois based on current projections, how many acres of soybeans national under those assumptions would we need given a trend yield? Based on a trend yield of about 46.8 bushels to the acre, and it may be higher than that in 2018, we would need…

Farmers Desires for Enterprise Units Use Across County Lines

In a survey conducted by the Illinois Corn Growers Association, farmers with land in different counties indicated a willingness to combine insurance units across counties. Todd Gleason has more on the results with University of Illinois Agricultural Economist Gary Schnitkey.

Soybean Acreage in 2018 | an interview with Todd Hubbs

The market is currently sending a signal of maintaining the record high soybean acreage of 2017, but the necessity for that level of soybean acreage in 2018 could deteriorate quickly under evolving market conditions. Todd Gleason has more with University of Illinois Commodity Markets Specialist Todd Hubbs.

Calculating N-Rates for Corn | with Emerson Nafziger

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University of Illinois Agronomist Emerson Nafziger says deep prairie soils can provide up to one-hundred-pounds of N annually. This makes nitrogen fertilizer applications less limiting than once thought. Todd Gleason talks with Nafziger about how farmers should calculate anhydrous ammonia rates this fall.



Timing Fall Nitrogen
by Emerson Nafziger, Extension Agronomist - University of Illinois
original blog post

The substantial rain that fell over central and northern Illinois between October 5 and 15 mostly soaked into the soil that was dried out by crop water use, and harvest has moved back to full speed in most areas. With harvest, thoughts turn to application of fall ammonia in central and northern Illinois. Almost everyone is on board with waiting until soil temperatures are at or below 50 degrees before applying ammonia. Cool soil (along with use of nitrification inhibitor) lowers the rate of nitrification, so helps preserve N in the ammonium form. Nitrogen present in the soil as am…

Comparison of 2016 ARC-CO and PLC Payments

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link to full farmdocDaily article

The United States Department of Agriculture will issue farm safety net payments this month. Todd Gleason has more on the payments for this year, and projections for next year with University of Illinois Agricultural Economist Gary Schnitkey. You may listen to that conversation.



Schnitkey, his University of Illinois colleagues Nick Paulson & Jonathan Coppess, and Ohio State’s Carl Zulauf also explored how the 2016 ARC County payments would compare to those from its counterpart USDA safety net program, PLC. This exploration is a head to head look at how each program performed.

Check the farmdocDaily website for full details at www.farmdocdaily.illinois.edu.

The four academics compared PLC and ARC-CO payment levels per base acre in 2016. They looked at corn and wheat and then did a simple calculation for each to illustrate which USDA farm safety net program made the largest payments for 2016. They calculated by county, for the whole of the United Sta…

President Trump's Pennsylvania Tax Reform Speech

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Last night President Donald Trump made a speech about his administration’s tax reform plan. He addressed truckers in Pennsylvania. Mr. Trump told the truckers his tax reforms will create American jobs by lowering taxes in several ways.
So, to summarize, our plan goes from eight tax brackets down to four, expands the zero tax bracket greatly, expands the child tax credit, repeals the estate tax and special interest tax breaks, cuts the corporate tax rate from much more and equal to 35% tax and brings it all the way down to 20%, and cuts tax breaks for small businesses to the lowest level in more than eight years. The President also says it will be possible for most Americans to do their taxes on a single sheet of paper.

The particulars of the reform would double the standard deduction so that $12,000 of income for individuals and $24,000 for married couples would be tax-free. It would consolidate the eight existing tax brackets for income to four brackets: zero, 12 percent, 25 percen…