by Brent Gloy and David Widmar
(Brent and David originally wrote this piece for the Fall issue of The Feed, available here).
With planning for 2017 underway, many are finding the tight budget environment is likely to persist in 2017. When evaluating the major row crops and major growing regions of the country, our crop budget estimates suggest that 2017 will be another challenging year for row crop producers.
While there has been a significant amount of negative news about the 2016 economic situation, there were some positives. Perhaps the most important of these is costs of production declines. This year saw some reductions in fertilizer and fuel prices, as well as, cash rents. Unfortunately, higher crop prices and additional cost reductions will likely be necessary to restore profitability in 2017. Continue reading
by David A. Widmar
A few weeks ago we evaluated fixed expenses to see if adjustments lower had occurred. Changes have been slow, but have started to emerge. Another second component of production costs are variable expenses. These are the expenses producers typically monitor very closely; fuel, fertilizer, and seed. This week we take a look at the USDA’s cost of production data and the Purdue crop budgets to evaluate where source of lower variable expense have occurred. Continue reading
by David Widmar
With corn planting nearly underway in the Corn Belt, farmers are finalizing their planting decisions. One of the last decisions may be corn population rates. Corn plant population has been a hot topic in recent years (here, for one example) and we decided to take a look into the data and evaluate the trends. Continue reading