By: Todd Hubbs, Department of Agricultural and Consumer Economics, University of Illinois. farmdoc daily (10):133
Stronger export numbers and lower acreage boosted corn prices since the end of June. Concerns about demand weakness in ethanol production emerged recently. A recovery in economic activity helped ethanol plants ramp up production as gasoline demand increased. A resurgence in virus incidences threatens ethanol production over the short run and injects uncertainty into long-run prospects.
Gasoline demand recovered to almost 89 percent of pre-coronavirus lockdown levels in early July. Despite this positive development, the recovery in demand flattened out over the last few weeks. Gasoline stocks began to recede but still sit substantially above levels seen at this time of the year. Attempts to reopen the economy hit a snag as the virus spread rapidly around the country after initial hopes saw a rapid opening in many areas. At 8.648 million barrels per day, demand recovered substantially from the low point of 5.311 million barrels per day seen in early April. The path back to normal gasoline demand levels appears stalled. Ethanol production followed this recovery and will feel the implications of flattening gasoline use. Continue reading
USDA’s Risk Management Agency (RMA) announced changes to the Livestock Gross Margin (LGM) insurance program for cattle and swine beginning in the 2021 crop year. Changes include adding premium subsidies to assist producers and moving premium due dates to the end of the endorsement period for cattle.
“These changes build upon RMA’s continued effort to make livestock policies more affordable and accessible for livestock producers,” RMA Administrator Martin Barbre said. “We are working to ensure that these improvements can be implemented by the July 31 sales period so producers can take advantage of these changes as soon as possible.”
Prior to this change, LGM-Cattle and Swine did not have premium subsidies. Now, subsidies have been added and are based on the deductible selected by the producer. For LGM-Cattle, the subsidy will range from 18 percent with 0 deductible up to 50 percent with a deductible of $70 or greater. For LGM-Swine, the subsidy will range from 18 percent with 0 deductible up to 50 percent with a deductible of $12 or greater. Continue reading
By Anne Dorrance and Pierce Paul, CORN Newsletter
Several calls this past week for fungicide applications on corn and soybean at all different growth stages. So let’s review what might be at stake here.
Soybeans. Frogeye leaf spot and white mold on susceptible varieties when the environment is favorable for disease easily pay the cost of application plus save yield losses. Let’s dig a bit deeper. Both of these diseases are caused by fungi but the frogeye leaf spot is a polycyclic disease, meaning that multiple infections occur on new leaves through the season while the white mold is monocyclic and the plant is really only susceptible during the flowering stage. Both of these diseases are also limited geographically in the state. White mold is favored in North East Ohio and down through the central region where fields are smaller and airflow can be an issue. Frogeye has been found on highly susceptible varieties south of 70, but it is moving a bit north so it is one that I am watching.
White mold is also favored by a closed canopy, cool nights, and high relative humidity. So farmers in these areas should double-check their variety ratings first. If it is moderate to low score for resistance (read the fine print) then this year a spray may be warranted. We have gotten consistent control of white mold with Endura at R1. Herbicides that are labeled for white mold suppression have also knocked back this disease, but if a drought occurs or no disease develops, losses of 10% or greater can occur due to the spray alone. For these purposes, R1 is a flower on the bottom of 1/3 of the plants in the field. Continue reading
Sometimes this information is helpful in your farm management decisions. The National Ag Statics Service (NASS) sends different updates throughout the year. This week was a big week of updates for the Great Lakes Region. I am including those PDF updates links below.
Ohio Weekly Crop Progress & Condition Report
Ohio Acreage Summary
Ohio June 1 Grain Stocks
Ohio May Agricultural Prices
Ohio Biotechnology Varieties
State Climatology Field Specialist, Aaron Wilson, and Ben Brown, Assistant Professor of Professional Practice in Agricultural Risk Management, both with The Ohio State University will give summer weather and grain market update after the release of the 2020 Acreage and Grain Stocks Reports from the United States Department of Agriculture. Due to the Coronavirus, economic conditions for corn changed rapidly after the Prospective Plantings Report with likely changes in acreage for the Eastern Corn-Belt. Weather, as always, during July and August will play a major factor in final yields and production in 2020.
One of the questions I have received this week is I can’t join the OSU Farm Office Live, where do I get these recordings. Great News — You can view these recordings and also download the presenter slides at farmoffice.osu.edu/farmofficelive.
I have also included the webinars from April 6 to June 11 below. Go to the link above to review today’s session. Continue reading
Today on the OSU Farm Office Live, there was a great discussion about CAUV. This information is very helpful for any landowner in Paulding County. You can listen to the recorded session at farmoffice.osu.edu/farmofficelive
Check out this website for more information: https://www.robertdinterman.com/CAUV/
Additionally, I am adding the most recent article from Robert Dinterman.
Tax Value of Farmland Expected to Drop
There’s a bit of good news for Ohio farmers to counter the bad news caused by COVID-19, as well as by last year’s historic rain. In counties scheduled for property value updates in 2020—about half of Ohio’s 88 counties—the average value of farmland enrolled in the Current Agricultural Use Value (CAUV) program should be about 40% lower than 2017–2019, or about $665 per acre. Continue reading
The Tri-State Fertilizer Recommendations provide the foundation for agronomic nutrient management recommendations from the land-grant universities in Ohio, Michigan, and Indiana. The original publication, which came out in 1995, has been comprehensively updated with the release of the 2020 Tri-State Fertilizer Recommendations for Corn, Soybean, Wheat, and Alfalfa.
The publication relies on Ohio-generated data from 198 farmer-coordinated, on-farm trials in 39 Ohio counties and long-term plots at OARDC Ohio Agricultural Research and Development Center Agronomic Research Stations conducted from 2006-18. This data validates the recommendations against modern hybrids and varieties and agronomic management practices under current weather conditions. Key recommendations from the guide are included here. Continue reading
OSU Extension Paulding County is pleased to again partner with our statewide Farm Office Team to present Farm Office Live. For those of you who have not yet participated, this is a discussion among our agricultural economists, lawyers, and farm management specialists as we help Ohio farmers navigate through the COVID-19 stimulus packages and everyday economic challenges.
The next Farm Office Live will be held on Tuesday, June 25 from 9:00 – 10:30 a.m. Topics to be covered include updates on the Paycheck Protection Program, the reopening of the EIDL program, Dicamba, and the status of Ohio legislation affecting the agriculture industry.
The event is free and you can register and join at https://go.osu.edu/farmofficelive. You can also view past presentations at this link.
I hope you can join us. — Sarah Noggle
by: Dianne Shoemaker, OSU Extension, firstname.lastname@example.org
Click here for a PDF version of the article
One hundred and fifty days. In only 150 days we have gone from anticipating a solid year of recovery for the dairy industry to seeing an April Class III price of $13.07 per cwt, the lowest Class III milk price in 10 years, with May announced at $12.14 on June 8th. In that same time period, major market disruptions occurred for nearly every commodity with impacts all along the food chain. The response to the anticipated economic impact at the farm level has been swift, with a variety of options available to assist dairy farms. We will touch on a few of them here, including links for additional information. Every farm should review these options and see if there are opportunities to assist with cash flow shortfalls. Continue reading
by: Chris Zoller, Extension Educator, ANR
Click here for Article (access the figures)
Liquidity is a measure of the ability of a farm to use cash or ability to convert assets to cash quickly to meet short-term (less than 12 months) liabilities when due. Data from the United States Department of Agriculture Economic Research Service (USDA-ERS) forecast a continued decline in 2020 of liquidity on U.S. farms. This article discusses two metrics, the current ratio, and working capital, to evaluate liquidity. Continue reading
OSU Extension is pleased to be offering the “Farm Office Live” session on Thursday morning, June 11 from 9:00 to 10:30 a.m. Farmers, educators, and ag industry professionals are invited to log-on for the latest updates on the issues that impact our farm economy.
The session will begin with the Farm Office Team answering questions asked over the two weeks. Topics to be highlighted include:
- Updates on the CARES Act Payroll Protection Program
- Prevent Plant Update
- Business & Industry CARES Act Program
- EIDL Update
- CFAP- update on beef classifications and commodity contract eligibility
- Dicamba Court Decision Update
- Other legal and economic issues
Plenty of time has been allotted for questions and answers from attendees. Each office session is limited to 500 people and if you miss the on-line office hours, the session recording can be accessed at farmoffice.osu.edu the following day. Participants can pre-register or join in on Thursday morning at https://go.osu.edu/farmofficelive
By David Marrison, OSU Extension, email@example.com
Click here to access a PDF version of the article
Since the beginning of January, market prices for major commodities have fallen sharply since COVID-19 reached the United States. There have been many efforts through federal and state legislation to offset the impact of COVID-19.
Enrollment is currently being taken by the USDA Farm Service Agency (FSA) for one such program targeted to help agricultural producers. This program called the Coronavirus Food Assistance Program (CFAP) is providing financial assistance for losses experienced as a result of lost demand, short-term oversupply, and shipping pattern disruptions caused by COVID-19. Continue reading
Listen to the recording Ben Brown and Dianne Shoemaker for a webinar on “Navigating Direct Support for Ohio’s Farmers and Ranchers” recorded on May 27, 2020, with Ohio FSA Director Leonard Hubert. Go here to access the recorded webinar, here for webinar handouts and here to access the CFAP fact sheet.
Additionally, here is the national website from FSA for the CFAP program which includes a link to the calculator. https://www.farmers.gov/cfap?fbclid=IwAR36XOa1V8FtSWpNsUMCtKqlnk7u8LZRYWArbwqRv0YjlHaV-h0wyA8VW9Y
OSU Extension is pleased to be sponsoring two events to help Ohio farmers learn more about the Coronavirus Food Assistance Program (CFAP). Join us:
Wednesday, May 27 from 9:30 – 11:00 a.m.
Join OSU Extension’s Ben Brown and Dianne Shoemaker for a webinar on “Navigating Direct Support for Ohio’s Farmers and Ranchers” on Wednesday, May 27, 2020 at 9:30 am with special guest, Ohio Farm Service Agency Director Leonard Hubert. This webinar is generously produced and distributed by Ohio Ag Net. The webinar will be available for viewing at https://farmoffice.osu.edu/, or through Ohio Ag Net’s Facebook Live Video.
Thursday, May 28 from 9:00 to 10:30 a.m.
OSU Extension is pleased to be offering a “Farm Office Live” session on Thursday morning, May 28 from 9:00 to 10:30 a.m. The session will begin with the Farm Office Team answering questions asked over the past 2 weeks. Topics to be highlighted include Updates on the CARES Act, Payroll Protection Program, Economic Injury Disaster Loan (EIDL), and Coronavirus Food Assistance Program (CFAP). Participants can pre-register or join in on Thursday morning at https://go.osu.edu/farmofficelive
by: Peggy Kirk Hall
Farmers aren’t traditionally eligible for unemployment benefits, but that won’t be the case when Ohio’s newest unemployment program opens. We’ve been keeping an eye out for the opening of the Pandemic Unemployment Assistance (PUA) program, which will provide unemployment benefits to persons affected by COVID-19. The program is targeted to persons who are not eligible for regular unemployment benefits, such as self-employed and 1099 filers. PUA is yet another economic assistance program generated by the Coronavirus Aid, Relief and Economic Security (CARES) Act recently passed by Congress. Continue reading
by: Chris Zoller, Extension Educator, ANR, Tuscarawas County
The word “resilience” is used often in the agricultural press. What does this mean? Merriam-Webster defines resilience as:
- The capability of a strained body to recover its size and shape after deformation caused especially by compressive stress.
- An ability to recover from or adjust to misfortune or change.
We often see resilience used in agriculture when discussing climate and weather. There is documented evidence of weather changes that have impacted agriculture, and farmers have done their best to adapt to these changes. Examples include building soil health, managed grazing, the use of cover crops, water management strategies, technology adoption, and more.
Resilience can also be used when discussing the economics of agriculture and the resulting effects. It is no surprise to anyone in agriculture that people are strained, are experiencing stress, and are trying to adjust to new and different ways of operating. Continue reading
Ben Brown, Peggy Kirk Hall, David Marrison, Dianne Shoemaker, and Barry Ward
The Ohio State University
Since the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020, and the announcement of the Coronavirus Food Assistance Program (CFAP) on April 17, 2020, producers in Ohio and across the country have been anxiously awaiting additional details on how the Coronavirus Food Assistance Program (CFAP) will provide financial assistance for losses experienced as a result of lost demand, short-term oversupply and shipping pattern disruptions caused by COVID-19.
The additional details on CFAP eligibility, payment limitations, payment rates, and enrollment timeline arrived on May 19, 2020, when the USDA issued its Final Rule for CFAP. In this article, we explain the Final Rule in this issue of News from the Farm Office. Continue reading
By Barry Ward
COVID-19 has created an unusual situation that has negatively affected crop prices and lowered certain crop input costs. Many inputs for the 2020 production year were purchased or the prices/costs were locked in prior to the spread of this novel coronavirus. Some costs have been recently affected or may yet be affected. Lower fuel costs may allow for lower costs for some compared to what current budgets indicate.
Production costs for Ohio field crops are forecast to be largely unchanged from last year with lower fertilizer expenses offset by slight increases in some other costs. Variable costs for corn in Ohio for 2020 are projected to range from $359 to $452 per acre depending on land productivity. Variable costs for 2020 Ohio soybeans are projected to range from $201 to $223 per acre. Wheat variable expenses for 2020 are projected to range from $162 to $198 per acre. Continue reading