USDA Cost of Production Estimates Show Little Change from 2016

by Brent Gloy

According to the latest USDA cost of production estimates, U.S. farmers will find the 2017 cost of producing corn, soybeans, and wheat basically unchanged from 2016.  Combined with the outlook for flat to slightly better commodity prices, the cost of production estimates portray yet another year of challenging economic conditions throughout corn, soybean, and wheat country. Continue reading

Fertilizer Leads Variable Expenses Lower

truck

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

How Did Your County Do? Changes in ARC-CO Revenue Guarantees

By Brent Gloy

ARC-CO Revenue

In our last post we discussed how the Olympic averaging process will almost certainly result in lower price guarantees for corn and soybeans in 2016.  In this post we take a look at the county level yield and revenue guarantees. Continue reading