Commodity prices have dropped dramatically as supply and demand have leveled out. However, cash rents paid to produce crops like corn, soybeans, and wheat are still high. Todd Gleason has more on the potential income prospects for those acres rented at the highest levels.
Farmers have been operating for more than a year now without a farm bill. Since the 2008 bill expired, there’s been an ideological debate surrounding the funding of certain programs in the farm bill, including the Supplemental Nutrition Assistance Program. There are currently two versions of the farm bill stalled in Congress, one passed by the Senate and one passed by the House, and if legislators can’t come to a compromise by January 1, farm policy written in the 1940’s will take effect. This hour on Focus, we’ll talk about why there’s been such a fight over this year’s farm bill and how that differs from farm bills past.
Jonathan Coppess, a Clinical Professor of Law and Policy in the Department of Agriculture Economics at the University of Illinois at Urbana-Champaign and former chief of staff to Michigan Senator Debbie Stabenow, (D) who worked on the Senate version of the bill and Mary Kay Thatcher, Senior Director of Congressional Affairs for the American Farm Bureau Federation join us.
This morning UK's Ron Hustedde introduced agriculturalist attending the 2013 University of Illinios AgMasters Program to Hanrtz Farms. It is a project working to take the blighted areas of Detroit (between downtown and the 8 Mile Road) and turn them into farms. Todd Gleason spoke with Mike Score from Hantz Farms in 2010. You may listen to that interview using the link conected to this entry.
Work done at the University of Illinois may offer victims of last months tornados in the Midwest a quick, eco friendly, and affordable way to rebuild their homes. Todd Gleason has more from the Urbana-Champaign campus.
Join the University of Illinois farmdoc team for the Illinois Farm Economics Summits the week of December 16th, 2013. It is a 'must attend' event for farmers, bankers, lenders, and landowners.
Speakers will explore farm profitability, price outlook, and management challenges from several perspectives, including farm income prospects and crop rotation decisions, trends in farmland prices and rents, renewable fuels policy and crop markets, the new farm bill, and health reform.
The United States Environmental Protection Agency has proposed rule making that would change the amount of renewable fuel required to be blended in the domestic supply of gasoline. University of Illinois agricultural policy specialist Jonathan Coppess wonders if the agency hasn't over stepped its congressionally granted authority.
University of Illinois Ag Economist Darrel Good talks with farm broadcaster Todd Gleason about the November USDA Crop Production & WASDE reports.
Commodity prices likely will be lower in the next several years than they have been in the past several years. As a result, per acre returns will decline, decreasing the ability to pay high cash rents from returns. This situation may require some farms to adjust. Those farms with over 90% of their acres cash rented and having farm-minus-county cash rents over $25 per acre may face the most financial pressures.
However, these farms also may do well if they have lower than average costs. In any case, about 4% of farms cash rent more than 90% of their acres and have $25 per acre or more farm-minus-county cash rents. A higher proportion of larger farms meet these criteria.
Wednesday, November 13
9:00 am to 3:30 pm
Hilton Garden Inn
1501 S. Neil Street
$99 after November 8th
Keynote Speaker: Joseph Glauber, Chief Economist, United States Department of Agriculture
Dr. Glauber will address the State of U.S. Agriculture, and provide linkages between commodity markets, global supply and demand markets, and forces affecting Farmland Markets in the future.
* Bruce Sherrick: Farmland Markets – farmland performance as a financial asset for both owners and operators
* Gary Schnitkey: Rental Arrangements – how income is split with different types of rental contracts
* Scott Irwin: Commodity Outlook – RFS impact on current and future prices
* Jonathan Coppess: Farm Bill – update on progress, deadlines and program expirations, and farm program alternatives
* Tim Hopper: Top 10 Global Dynamics that Make Your Farm What it is Worth
Special Lunch Guest: Mike Thomas, University of Illinois Athletic Director
Registration includes lunch and materials
The apparent pace of commodity exports from the United States has many wondering if USDA's September estimate is too low. Those numbers will be updated this Friday.