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 ... Read More »
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.
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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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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By: Carl Zulauf, Professor, Ohio State University, and Gary Schnitkey, Professor, University of Illinoi at Urbana-Champaign
The 2014 farm bill gives Farm Service Agency (FSA) farm owners the option to choose their crop program for the 2014 through 2018 crop years. A factor, perhaps key factor that will influence this decision is the payment by the program choices for the 2014 crop year. This article uses the just released U.S. yield and price estimates in the August 2014 World Agricultural Supply and Demand Estimates (WASDE) to calculate an indicator of potential payments by the Agriculture Revenue Coverage – county program (ARC-CO) and the Price Loss Coverage (PLC) program. The indicator estimates are for the 2014 crop year for barley, corn, oats, long grain rice, medium (and short) grain rice, sorghum, soybeans, and wheat. These are indica...
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By: Clif Little, OSU Extension Agricultural and Natural Resources Educator Guernsey County
It has become a common occurrence in Eastern Ohio to see oil and gas related pipelines being installed through pastures and crop fields. While many sections of these lines are installed and reseeded to the farmer’s satisfaction, some are not. Lately, I have been asked by farmland owners and contractors alike to assess the reseeding success of individual sections of right-of-ways. Below are some ideas which I hope will curb some of the incidents I have noticed.
Above all, have the document prepared by your attorney addressing the farm needs and reseeding. Too many times landowners are attempting to negotiate a potentially lifelong contract without legal advice.
Identify the location and width of the temporary work area and pipeline. Landowners may want the pipeline company (referred to as the grantee) to provi...
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