Crop Insurance Decisions for 2019

By: Bruce Sherrick and Gary Schnitkey, Department of Agricultural and Consumer Economics
University of Illinois Farmdoc Daily

The price discovery period used to determined projected prices and volatility factors for federally sponsored corn and soybean crop insurance products for 2019 is completed.  For the majority of the Cornbelt, the approved Projected Price (PP) for corn is $4.00 and the Volatility Factor (Vol) is .15, and for soybeans, the Projected Price is $9.54 with a Volatility Factor of .12.  Table 1 below contains the historic Projected Prices, Volatility Factors, and Harvest Prices from 2011 to present.  The Projected Price and Harvest Price (HP) are used to determine guaranteed revenue based on futures prices, and do not reflect the local cash basis. Continue reading

Crop Insurance Decisions for 2019

By: Bruce Sherrick and Gary Schnitkey, Department of Agricultural and Consumer Economics, University of Illinois
Previously published by Farmdoc Daily online

The price discovery period used to determined projected prices and volatility factors for federally sponsored corn and soybean crop insurance products for 2019 is completed.  For the majority of the Cornbelt, the approved Projected Price (PP) for corn is $4.00 and the Volatility Factor (Vol) is .15, and for soybeans, the Projected Price is $9.54 with a Volatility Factor of .12.  Table 1 below contains the historic Projected Prices, Volatility Factors, and Harvest Prices from 2011 to present.  Continue reading

Tracking the Pace of Soybean Consumption

By: Todd Hubbs, Department of Agricultural and Consumer Economics, University of Illinois

Previously published by Farmdoc daily online

Recent developments in trade negotiations with China provided support to soybean prices and raised hopes of reducing the 910 million bushel ending stock projection for this marketing year.  The current pace of soybean consumption confirms the notion that any reduction of ending stocks lies with increased soybean exports. Continue reading

There Are Viable Strategies for Transitioning the Farm

By: Robert Moore, Attorney, Wright & Moore
Previously published by the Ohio Farmer

Each family farm facing a succession to the next generation must come up with a strategy to transfer ownership. Depending on the situation, it can be challenging to transfer ownership that does not trigger taxes, cause financial stress or cause financial discomfort for the family. There are several strategies that can be implemented to bring the next generation into the farming operation. Continue reading

Sales To Cooperatives Under The New Tax Law

By: Barry Ward, Director, Ohio State University Income Tax Schools, Leader, Production Business Management

Upon passage and signing of the Tax Cuts Jobs Act in December 2017, Cooperatives suddenly had a decided advantage in buying over “independent” buyers of ag commodities. The new tax law had somewhat inadvertently included a “grain glitch” (which would have affected more than grain sales) that had effectively allowed for a 20% deduction on gross sales which conferred a decided advantage over sales to other non-Cooperatives. Continue reading

How Many Soybean Acres Do We Need In 2019?

By: Todd HubbsDepartment of Agricultural and Consumer Economics University of Illinois
Previously published by Farmdoc Daily

We have reached the time of the year where speculation about acreage for the 2019 crops begins in earnest. While the number of acres planted to soybeans appears set to decrease, current projections indicate an intention to plant significantly more acres than necessary to reach breakeven prices in Illinois under current consumption and stock level forecasts.

Projections by industry analysts place 2019 soybean planted acreage in a range from 84.5 to 86.5 million acres. A reduction in soybean acreage from the 89.1 million acres planted in 2018 seems probable. Continue reading

Tips for Speaking with Your Lender

By: Chris Zoller, ANR Extension Educator, Tuscarawas County

2019 is upon us and you may be meeting soon with your lender to discuss financial needs for the year. We all know agriculture is suffering from poor economic conditions – and the outlook for many sectors of the industry doesn’t look real promising. A variety of factors are forcing lenders to be more critical of loan applications. Let’s review a few things you can do to assist your lender as they review your loan application. Continue reading