Working Capital on the Farm
Low commodity prices are quickly eating into the reserves farmers built up over the last several years. Todd Gleason has more on agriculture’s ‘working capital’.
markets and weather for the farming world | Todd Gleason, Farm Broadcaster
Low commodity prices are quickly eating into the reserves farmers built up over the last several years. Todd Gleason has more on agriculture’s ‘working capital’.
Cash rents on professionally-managed farmland are set to decrease next year. That’s the conclusion of a survey in the state of Illinois.
An ag economist on the University of Illinois campus is continuing his calls for farmers and landowners to lower cash rents.
Quote Summary - Since 2011 on through 2014 diesel fuel prices have average about $3.50 per gallon. Today’s cost is about a 36% decline. It is a significant decline in the cost of diesel fuel from the last four years.Here’s how that costs translates directly to the farm. Last year fuel cost Illinois farmers, on average, $24 per acre of corn production. A 36% drop puts that estimated cost this year at $15 per acre. It’s a nine dollar savings, but certainly not enough to really ease the coming income woes of the American corn farmer comments Schnitkey.
Quote Summary - The total cost to raise an acre of corn is about $600. So, the fuel savings is a relatively small portion of the total cost of producing corn, and for that matter soybeans in the state.Schnitkey thinks producers should certainly consider taking advantage of the diesel fuel prices today. The other two items of note related to energy costs concern drying corn in the fall and nitrogen fertilizer. The ag economist thinks drying costs should be much lower this fall. As for the cost of nitrogen fertilizer - and this would be for next year - well he says…
Quote Summary - Patients, relative to nitrogen fertilizer and buying it, might be a good thing. Because maybe someday that will come down.The cost of nitrogen fertilizer this year is actually higher than it was last year. Its primary creation cost is for natural gas.
timeline posted to USDA FSA website August 1, 2014 |
USDA June Estimate | Average | Ranges | June 2013 | March 2014 | |
Corn | 3,723 | 3,046-4,050 | 2,766 | 7,006 | |
Soybean | 382 | 334-440 | 435 | 992 | |
Wheat | 597 | 561-633 | 718 | 1,056 |
USDA June Estimate | Average | Range | March 2014 | 2013 | |
Corn | 91.709 | 91.00-92.50 | 91.691 | 95.365 | |
Soybean | 82.213 | 81.30-84.00 | 81.493 | 76.533 | |
All Wheat | 55.777 | 54.80-56.50 | 55.815 | 56.156 | |
Spring | 11.937 | 11.30-12.20 | 12.009 | 11.596 | |
Durum | 1.795 | 1.69- 1.90 | 1.799 | 1.470 |