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Ohio Ag Manager

Nov
20

The Forgotten Variable: Yield and the Choice of Crop Program Option

by Carl Zulauf, Ohio State University, and Gary Schnitkey, Jonathan Coppess, and Nick Paulson, University of Illinois at Urbana-Champaign Background:  Price has been the focus of almost all discussions about the one time irrevocable opportunity to choose among Agriculture Risk Coverage ▬ county (ARC-CO), Agriculture Risk Coverage ▬ individual (ARC-IC), and Price Loss Coverage (PLC).  This article instead focuses on the forgotten variable:  yield.  It concludes yield can play an important role in the decision. Yield Types Impacting Crop Program Choice ►  Program Yield ▬ fixed yield on file with Farm Service Agency (FSA) used to calculate PLC payments ■    This yield will be either (1) updated program yield [90% of average yield on FSA farm for 2009-2012], (2) current program yield [default yield], or (3) FSA update replacement yield [75% of 2008-2012 average yield for county]. ►  Yield component of ARC...
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Nov
18

Year-End Tax Planning Considerations

By: Larry Gearhardt, OSU Extension Asst. Professor, Taxation

This post is a reprint of a post by daniels.498 that originally appeared at Recent Blog Posts.
Nov
18

U.S. Farm Input Price Dynamics, 1981-2013

By: Carl Zulauf, Professor, and Nick Rettig, B.S. Department of Agricultural, Environmental, and Development Economics Ohio State University

The sharp drop in crop prices over the last 2 years has focused attention on farm input prices.  In particular, how closely do farm input prices follow crop prices?  To put this question in historical perspective, this article looks at various aspects of the dynamics of U.S. farm input prices since 1981.  Findings include that, after adjusting for general price inflation, not all farm input prices have increased, that farm input prices do adjust with crop prices, that the adjustment varies by input but is a lag process that becomes larger over time, and that, on average across the inputs examined in this article, the adjustment process appears to reach closure after approximately 5 years. To download the full pdf document Click Here.

Nov
14

GMO Webinar Kicks Off New Agricultural & Food Law Consortium

Ohio State University Extension’s Agricultural and Resource Law Program is excited to announce a new partnership with a group of universities creating a new Agricultural and Food Law Consortium.  The Consortium is a national, multi-institutional collaboration designed to enhance and expand the development and delivery of authoritative, timely, and objective agricultural and food law research and information.

This post is a reprint of a post by daniels.498 that originally appeared at Recent Blog Posts.
Nov
05

Determining the Market Year Average Price for Farm Bill Program Payments

By: Chris Bruynis, Assistant Professor and Extension Educator The 2014 Farm Bill uses a market year average price for calculating the revenue guarantee for both the County Agriculture Risk Coverage (ARC-CO) and Individual (ARC-IC) programs. Additionally, the market year average price is used to determine the actual crop revenue for ARC-CO and the price used in calculating potential PLC payments. Because of the importance of this price in the determination of program payments, it is important that producers understand how this number is derived. In Ohio the primary crops that will be insured are corn, soybeans and wheat. This discussion is limited to these crops although there is data for most crops grown in Ohio.  The market year average is the national average price received by producers during the 12-month marketing year.  The marketing year is different for each crop.  The marketing year for wheat is June 1 to May 31 while ...
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Nov
05

MarketMaker Links Producers and Potential Buyers

By: Brad Bergefurd, Extension Educator

There are nearly 8,000 farmers markets in the U.S., an increase of more than 150 percent since 2000.  Direct-to-consumer agriculture sales produce $1.2 billion in annual revenues. To be successful in your agricultural business an important thing is to have a good marketing plan. The Ohio State University South Centers leads Ohio’s Direct Agricultural Marketing program and has many resources available to assist producers with resources and educational opportunities to assist with their direct agricultural marketing plans. Launched in 2008, one very important resource is Ohio MarketMaker which currently hosts one of the most extensive collections of searchable food industry-related data in the country. The web based program contains demographic, food consumption, and business data that users can search to find products to buy, or find a place to ...
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Nov
04

Should I Give my Tenant Power of Attorney for 2014 Farm Bill Decisions?

By: Chris Bruynis, Assistant Professor and Extension Educator There are multiple decisions that need to be made in regards to the 2014 Farm Bill. Some of the decisions have been designated as the land owner’s responsibility and other have been designated the farmer’s/tenant’s responsibility. This division of decision responsibilities adds another level of confusion and leads to the question on the validity of previously signed power of attorney documents on file with FSA. Specifically the yield update and the base acre reallocation decisions are the land owner’s decision to make. When the land owner is not the farmer, there may be a disconnect between the person charged with making the decision and the person who has the information needed to make the decision.  Landowners have several choices at this point.  First, they can choose not to update their farm yields and/or reallocate their farm’s base acres. It is esti...
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Oct
29

What is a Fair Rental Price for Farm Buildings?

by David Marrison Farm buildings and livestock facilities often outlast their owner’s need for them, but can still provide usable service. Other farmers in the community may wish to use these buildings instead of investing in new facilities. Both parties can benefit from a leasing arrangement. However, they must agree on the amount of the rental payment and the use and care of the property.  However, information about common rental rates for farm buildings is not easily obtainable.  To help provide information for farmers, a survey was recently conducted by the North Central Farm Management Extension Committee.  The survey was conducted across the Midwest and was completed by farm operators, farm owners, professional farm managers and rural appraisers. The survey assumed that building tenants would provide labor and management and pay the cost of utilities and minor upkeep. Owners would generally be responsible for major repa...
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Sep
30

Manure Regulation in Ohio

Although long considered a natural fertilizer that can benefit our soils, manure has a history of increased regulation in recent years based on potential impacts to water quality.   The following explains how state and federal law regulates the production, storage and application of animal manure in Ohio.  

Livestock Environmental Permitting Program

This post is a reprint of a post by hall.673 that originally appeared at Recent Blog Posts.
Sep
26

Pricing Standing Corn for Silage Harvest – 2014

Dianne Shoemaker, Bill Weiss, and Normand St-Pierre Extension Dairy Specialists, The Ohio State University If it’s late summer it’s time to talk about pricing a corn crop standing in the field for corn silage. This is always a challenging question as there are a number of factors that contribute to the final price agreed upon by the buyer and seller that are challenging to quantify. This corn silage pricing discussion begins with a corn crop standing in the field. The grower’s goal is to recover the cost of producing and harvesting the crop plus a profit margin. Their base price would be the price they could receive for the crop from the grain market less harvesting/drying/storage costs. Hopefully, this would meet their goal of covering production costs and generating a profit. During price negotiations, it should be recognized that harvest risk is also being shifted from the grower to the buyer. To the grain farmer, the ...
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Sep
12

Revised – 2013 ACRE payments for Corn

By: Chris Bruynis, PhD, Assistant Professor & Extension Educator, OSU Extension.

 

Earlier I had written an article on the possibility of Ohio getting an ACRE Payment for the 2013 corn crop.  The USDA corn yield for Ohio ended up at 177 bushels of grain, which was significantly higher than the 152 bushel five year Olympic average.  Initially I had overestimated the state revenue guarantee, which is actually $690 per acre.  Because of the higher yield and the corrected revenue guarantee at the state level, the market average price would need to fall below $3.90 for the 2013 crop.  Current estimates (August 2014) have the market average price at $4.45 which is significantly higher. With this new information, it is highly unlikely that corn will make a payment for the 2013 corn crop.

Sep
11

2014 Farm Bill Decisions: Program Choice – A Big Picture Perspective

By:  Carl Zulauf, Ohio State University, and Gary Schnitkey, Jonathan Coppess, and Nick Paulson, University of Illinois at Urbana-Chapaign

The 2014 farm bill gives Farm Service Agency (FSA) farm owners a 1-time opportunity to elect their Title 1 crop program for the 2014 through 2018 crop years.  Three program options exist: Agriculture Risk Coverage-individual (ARC-IC), Agriculture Risk Coverage-county (ARC-CO), and Price Loss Coverage (PLC) with the choice to buy the Supplemental Coverage (insurance) Option (SCO).  This article examines the choice between ARC-CO and PLC.  In contrast to ARC-CO and PLC, ARC-IC pays on 65% not 85% of program acres and is elected on a FSA farm basis, not a program crop basis.  ARC-IC thus is an option to consider based on the ARC-IC farm situation, including when (1) production on the ARC-IC farm unit is hig...
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Sep
08

Leasing Your Land for Hunting: Legal Considerations

With fall quickly approaching, now is a good time to consider whether you should lease your land for hunting. Leasing your land for hunting can be beneficial by giving you an extra source of income as well as managing wildlife populations and decreasing crop damage. However, there are some considerations to make before granting that lease to someone.

This post is a reprint of a post by daniels.498 that originally appeared at Recent Blog Posts.
Sep
02

Leasing Your Land for Hunting: Legal Considerations

With fall quickly approaching, now is a good time to consider whether you should lease your land for hunting. Leasing your land for hunting can be beneficial by giving you an extra source of income as well as managing wildlife populations and decreasing crop damage. However, there are some considerations to make before granting that lease to someone.

This post is a reprint of a post by daniels.498 that originally appeared at Recent Blog Posts.
Sep
01

Do Futures Forecast the Future?

By: Carl Zulauf, Ohio State University, Nick Rettig, B.S., Ohio State University, and Matt Roberts, Associate Professor, Ohio State University

A common presumption is that futures prices can predict future price, specifically the price during the last or delivery month of trading on a futures contract.  This presumption has potential importance for both marketing and policy.  Many crop insurance contracts use futures prices to establish their pre-plant and harvest prices.  In addition, it is common to hear that futures prices should be used to forecast prices when evaluating the farm program choices in the 2014 farm bill.  This article calls into question the presumption that futures prices can predict future price.  It also finds that cash price performs as well as futures price in forecasting future price.  Because of the technical natur...
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