6 After-Harvest Finance Questions to Answer

By: Sara Schafer, Editor
Previously published by AgWeb

Harvest marks the end of one season and the beginning of another. After you park the combine for the year, you should head to the office to grade your financial success and start planning for the next crop cycle.

“Just as the combine gives you absolute production yield, an office-centric mind will give you absolute profitability yield,” says Chris Barron, director of operations and president of Carson and Barron Farms in Rowley, Iowa. “Once harvest ends, take time to understand your production cost.” Continue reading

Soybeans Vs. Corn: Which to Plant Next Year?

By: AgWeb Guest Editor
Previously published on AgWeb


Tariffs on soybeans could mean more producers will be switching to corn next year. This year, farmers planted more soybeans than corn for the first time in more than three decades, assuming it would be in high demand, but those Chinese tariffs are causing big problems. It’s leading to lowers exports and lower prices. Now, some analysts are saying farmers could convert as much as four million acres from soybeans to corn next spring. That would be roughly equal to the size of Connecticut.

 

High Yields and Aid Help Offset Low Commodity Prices

By: Ohio’s Country Journal & Ohio Ag Net Staff

Record-high crop yields and new government aid are expected to help insulate Ohio crop farmers from significant financial losses that would have occurred because of low commodity prices, according to a recent Ohio State University study.

If net income for farms across Ohio this year follows the projected national trend, then it will decrease by 15% compared to last year’s total. But it could have been a whole lot worse. Continue reading

Syngenta Corn Seed Settlement Claims Due Oct. 12

By: Peggy Kirk Hall, Associate Professor and Director, OSU Agricultural & Resource Law Program

Those post cards advising producers of a $1.51 billion settlement in the Syngenta corn seed lawsuits are legitimate, and corn producers seeking compensation from the settlement must file claims by 11:59 p.m. on October 12, 2018. The settlement is the result of class action and individual lawsuits alleging that Syngenta failed to receive import approval from China before selling its genetically modified Viptera and Duracade seeds in the United States, which led to the rejection of U.S. corn shipments and a lowering of corn prices from 2013 to 2018. Continue reading

WASDE: Production, Ending Stocks on the Rise

By: U.S. Department of Agriculture

WHEAT

The U.S. 2018/19 wheat supply and demand estimates are unchanged from last month.  There are offsetting by-class changes for both exports and imports.  The season-average farm price range is unchanged at the midpoint of $5.10 per bushel and the range is narrowed $0.20 per bushel to $4.70 to $5.50. Continue reading

Details On How USDA Calculated Aid Payment Rates

By: Anna-Lisa Laca
Previously published by Farm Journal’s PORK

As promised by Agriculture Secretary Sonny Perdue, USDA released details on how aid payments were calculated on Thursday. The details, which were released by the office of USDA Chief Economist Robert Johansson, explain how payment rates for the Market Facilitation Program (MFP) were determined. Continue reading

Section 199A: The Rules For Entities

By: Paul Neiffer, The Farm CPA Blogger
Previously published by AgWeb Daily

The new tax code requires the 20% Section 199A deduction to be calculated for each separate business. Most farm operations operate in a multi-entity structure: an entity as the “farmer,” one or more entities to own the farmland that is rented to the “farmer” and perhaps even other entities to hold the equipment and rolling stock. Continue reading

Farm Capital Expenditures Turns Higher

By: David Widmar, Previous published in Agriculture Economic Insights

When times are tough in agriculture, efforts to lower costs and improve cash flow often necessitate a cut, or delay, in capital expenditures. As expected, farm capital expenditures, after peaking in 2014, rapidly contracted as net farm income and commodity prices turned sharply lower. Continue reading

Late August Updates

Check out some upcoming Opportunities and Resources

What We Learned from Growing Barley in 2018:  Eric Richer has scheduled a twilight program on August 28 to review the yields and quality metrics from several test fields of malt barley grown here in NW Ohio in 2018.  If you are considering this crop in 2019 or beyond, please come learn about the one year’s worth of data we have here locally.  7 pm at Robert Fulton Ag Center with a chance to see double crop bean comparisons after wheat and barley with a local farm tour.  PLEASE RSVP to Ruetz.1@osu.edu but there is NO COST to attend.

ODA’s Clean Sweep pesticide collection program: ODA will be doing a collection of unwanted pesticides on Sept 6, 2018 at Wood County Fairgrounds in Bowling Green (closest location) from 9 am to 3 pm. More info about what’ accepted

(NOT motor oil, antifreeze, commercial pesticides, etc) – https://pested.osu.edu/agriculturalpesticides
Dropoff location: Wood County Fairgrounds (Champion Barn)
13800 W. Poe Rd., Bowling Green, OH 43402

 

FARM MANAGEMENT:

Ohio Farm Custom Rates fact sheet 2018: attached, hot off the press from Barry Ward.  Or found athttps://farmoffice.osu.edu/farm-management-tools/custom-rates-and-machinery-costs

Western Ohio Cropland Values and Cash Rents 2017-18: attached, hot of the press from Barry Ward. Or found athttps://farmoffice.osu.edu/sites/aglaw/files/site-library/farmBusiness/Western%20Ohio%20Cropland%20Values%20and%20Cash%20Rents%202017-18%20Final.pdf

 

 

Strategies To Nail Your Cash Rent Negotiations

By: Sara Schafer, Top Producer editior. Previously published on AgWeb Daily.

If thinking about negotiating cash rental rates makes you sweat—you’re not alone. This annual task can be unnerving, especially if you are asking for a rental reduction. The current cloudy profitability and policy picture adds even more pressure this year. Continue reading