R. F. D. News & Views, October 29, 2014

by Tim Alexander

 

Cash Deficits Predicted For Corn

URBANA – Corn growers’ concerns were confirmed regarding future profitability when University of Illinois Department of ACES ag economist Gary Schnitkey announced cash deficits for corn are projected for 2014 and 2015. With gross revenue for corn projected to be much lower through 2015 when compared with the years 2011-2013, and cash rent farmland costs projected at higher than gross revenue for 2014-2015, losses are projected at over $100 per acre.

“Many farmers built up cash reserves from 2010 through 2013. If revenues and costs are as projected, these financial reserves will decrease in 2014 and 2015,” Schnitkey said of his findings, all of which were posted October 24 at www.farmdocdaily.illinois.edu. “Farmers will need to look at making adjustments including 1) lowering or eliminating capital purchases, 2) lowering fertilizer and seed costs, 3) lowering cash rents, and 4) reducing other cash flows.”

In general, lower losses will occur for soybeans, Schnitkey concluded.

 

USDA Touts Rural Illinois Investments

WASHINGTON, D.C. – The USDA released a new state-by-state “Made in Rural America” update illustrating the impact of USDA investments in rural communities. The report highlights specific USDA investments in rural business, manufacturing, energy, water and other infrastructure development. Over the past five years, USDA has invested more than $34.6 billion in Illinois to support the farmers, ranchers and growers who are driving the rural economy forward, according to the update, issued Oct. 22 by the USDA Office of Communications.

The Illinois state fact sheet reveals that USDA invested more than $2.8 billion in economic development, $9.5 billion in farm and ranch programs that provide access to credit, support a strong farm safety net and promote new markets, and $1 billion in conservation efforts to help keep land in production while improving natural resources.

In addition, USDA devoted more than $526 million in infrastructure development, $393 million in food security, agricultural and natural resources, and contributed $8.3 billion to the Illinois economy through assistance with exports of farm and ranch products.

The Illinois fact sheet can be accessed at www.usda.gov/documents/Illinois_Investments.txt.

 

On Harvest Weather, Yields & Prices

EUREKA – There should be a major increase in the percentage of harvested acres across Illinois this week and through early November, according to local forecasts and the National Weather Service Climate Prediction Center’s outlook for the fall. For Illinois, November temperatures have equal chances (EC) of above, below, and near-average temperatures. In addition, November precipitation is rated an EC, save the northeast quarter of the state, where an increased chance of below-average precipitation is forecast.

“The category of EC is a little hard to interpret,” blogged Jim Angel, Illinois state climatologist on the climateillinois wordpress blog. “Basically, it means that there are no consistent indications that conditions could be too warm/cold/wet/dry. Sometimes I call it a neutral forecast.”

In addition to the Corn Belt, cold and rainy conditions have also slowed down harvests in Michigan, Minnesota, North Dakota and Wisconsin, where less than ten percent of the corn harvest was complete by mid-October, according to USDA. Some Illinois and Midwest farmers are reporting record yields where corn has been harvested, leading many ag economists to predict that December corn futures will likely not break the $3.50 mark.

“I haven’t heard any specific yield reports,” cautioned Jolene Neuhauser, manager of the Woodford County Farm Bureau. “The two words I’ve heard are ‘varied’ and ‘scattered,’ so I think that gives you an idea.”

 

CBMP Schedules Cover Crop Update

BLOOMINGTON – After flying a mixture of oats, oilseed radish and turnip over 20 acres of standing soybeans in rural McLean in August, the Illinois Council on Best Management Practices (CBMP) is ready to host a cover crop field day originating at nearby Sugar Grove Nature Center on Tuesday, Nov. 4 at 1 pm. Those who witnessed the fly-on are invited back to check the progress of the cover crops, as are those who missed the event but want to learn more about growing cover crops on their farmland.

Cover crops specialists Pete Fandel and Mike Plumer will return to deliver presentations on the use and management of soil health and discuss how cover crops can improve soil and water quality and increase productivity. With production farmland and educational facilities in such close proximity– Sugar Grove Nature Center is bordered by the 20-acre test plot– “the location is ideal for the establishment of a cover crop demo site,” said Caroline Wade, of CBMP and the Illinois Corn Growers Assoc. More info: (309) 231-7440 or cwade@illinoiscbmp.org.

 

ISA Launches Farm Journal Harvest Tool

BLOOMINGTON – Daily updates on Illinois soybean yields are being provided by the Illinois Soybean Association (ISA), in conjunction with Farm Journal, through ISA’s soybean production blog, www.ILSoyAdvisor.com. Growers are encouraged to share their harvest data with others around the state as part of a larger Illinois soybean checkoff-funded initiative to support farmers in improving soybean management practices.

“This is an exciting addition to ILSoyAdvisor.com that allows growers to record their yields while checking on harvest results across the state. We hope growers from every county in Illinois contribute to this project,” said Linda Kull, ISA director of strategic research programs.” (ISA news release)

 

Illinois Farm Fact:

All told, sales of farm and ranch products contributed more than $19.6 billion to Illinois’ economy in 2012. (USDA)

 

(Tim Alexander is a freelance reporter who writes agriculture, news and feature articles for the News Bulletin, Farm World and many other publications.)