OSU Navigation Bar

The Ohio State University

Ohio Ag Manager

Farm Policy

Feb
20
2012

Projected Prices for Crop Insurance Based on First Two-weeks of February

Gary Schnitkey, University of Illinois

During February, projected prices used in crop insurance guarantees applicable to Midwestern states are set for corn and soybeans. These projected prices are the averages of daily settlement prices of Chicago Mercantile Exchange (CME) contracts during February, with the December contract used for corn and the November contract for soybeans. Through the first two weeks of February, settlement prices have averaged $5.74 per bushel for corn and $12.35 per bushel for soybeans. Continue reading at: http://www.farmdocdaily.illinois.edu/2012/02/projected_prices_for_crop_insu.html

No Comments
Farm Policy, March 2011
Share |
Feb
15
2012

Is 2012 the Year to Elect the Average Crop Revenue Election (ACRE)?

By: Chris Bruynis, Assistant Professor & Extension Educator

Ohio farmers have previously had three opportunities to elect into the Average Crop Revenue Election provision as create by the 2008 Farm Bill. Looking back, the question is was it a good decision for those farmers that elected in previously?  There are many ways to answer that question. From a risk management perspective, the answer is yes. The downside revenue protection that was provided was worth the approximate $4.00 per acre in reduced direct payments. From a cash flow perspective, the answer is mostly no (except under certain circumstances) because the ACRE payments for wheat in 2009 and 2010 were not enough to offset the reduction in direct payments. Farmers are now into the fourth year and have the final opportunity to elect into ACRE provision. Click here to read Estimated ACRE Coverage Levels for 2012

No Comments
Farm Policy, March 2011
Share |
Feb
14
2012

Trend-Adjusted Actual Production History (APH) Option Available

By: Chris Bruynis, Assistant Professor & Extension Educator Click here for a PDF version of the 2012 Trend Adjusted APH Farmers in Ohio purchasing certain types of crop insurance will be able to elect a new provision called Trend-Adjusted Actual Production History (TA APH). This provision will allow farmers the ability to raise their farm APH in line with current expected yields. If elected, this option would adjust the farm yield to reflect increases in yields through time in the county. Trend adjustments are made on each eligible yield within a qualifying APH database based on the county’s historical yield trend, which is provided in the county actuarial documents. The approved APH yield is calculated using trend-adjusted yields, as well as any other applicable yields, within the APH database. Many farmers feel that the 10-year average Actual Production History (APH) yields used to determine their multiple peril crop insurance guarantees do not accurately reflect their current yield potential, due to improved crop genetics and cultural practices that have been introduced in recent years. Trend-Adjusted APH has been approved by the Federal Crop Insurance Corporation (FCIC) Board for both corn and soybeans in most of the Corn Belt. In, Ohio there are 69 counties where trend adjustments are available. These are displayed in Table 1 in the attached document. If a county does not appear in the list, there was no trend adjustment yield approved by FCIC for that cou...
Read More »
No Comments
Farm Policy, February 2012
Share |
Jan
18
2012

Agricultural “Outlook” for 2012 Posted Online – Listen to the “Live” Outlook presentations by OSU Extension Economists

By: Barry Ward, Leader, Production Business Management, OSU Extension, Department of Agricultural, Environmental and Development Economics and Bruce Clevenger, Extension Educator, Agricultural and Natural Resources, OSU Extension, Defiance County

Farmers, agribusinesses and others in the agricultural industry had the opportunity to learn more about the current farm outlook at an Ohio State University Extension 2012 Farm Outlook Program in Defiance County on December 20, 2011.

Ohio State University’s Department of Agricultural, Environmental, and Development Economics and OSU Extension made presentations that brought forth the latest outlook on the grain markets, energy, land values and rent, production inputs and farm policy.

You can listen to each of the ‘live’ presentations from that evening linked below. Featured topics and speakers include:

Carl Zulauf, OSU Extension Agricultural Economist, on Farm Policy and the Farm Bill (In Zulauf’s absence, Matt Roberts did this presentation).

Barry Ward, OSU Extension Agricultural Economist, on production economics of farmland values and input costs such as seed, chemical and fertilizer markets.

Matt Roberts, OSU Extension Agricultural Economist, on grain and energy market outlook.

The files are available by accessing the link listed below. Presentations may take a minute to load, but should play well on high speed connections.

http://fairfield.osu.edu/news/farm-outlook-for-2012-is-posted-here

No Comments
Farm Policy, February, February 2012
Share |
Dec
30
2011

RMA Makes Changes in Biotech Endorsement Program and Streamlines Crop Reporting Dates

By: Chris Bruynis, Assistant Professor & Extension Educator, Ross County Farmers that were able to reduce crop insurance premiums by using the Pilot Biotechnology Endorsement (BE) approved by the Federal Crop Insurance Corporation Board of Directors (FCIC Board) starting with the 2008 crop year (CY), will no longer be able to beginning with CY 2012. The Pilot BE has provided a premium rate reduction to eligible producers that plant certain qualifying corn hybrids. After careful consideration, and in consultation with the pilot submitters, the FCIC Board has concluded the Pilot BE will terminate in the interest of program simplification. However, RMA will consider an appropriate reduction in the underlying base premium rates for corn in the existing pilot area beginning with the 2012 crop year. Ohio was one of the states in the Pilot BE Program. The Risk Management Agency (RMA) and the Farm Service Agency (FSA) have established 15 common acreage reporting dates for producers participating in RMA and FSA programs. Before the streamlining, RMA had 54 acreage reporting dates for 122 crops, and FSA had 17 dates for 273 crops.  In Ohio, this change means producers will now have four acreage reporting dates instead of five. Beginning in 2012 burley tobacco, spring cabbage (planted 3/15-5/31), corn, grain sorghum, hybrid corn seed, spring oats, popcorn, potatoes, soybeans, tomatoes, and any other crops not listed elsewhere will have a July 15 acreage reporting date. ...
Read More »
No Comments
Farm Policy, January 2012
Share |
Dec
13
2011

Biotechnology and Variation in Average U.S. Yields

By: Carl Zulauf, Professor, and Evan Hertzog, Metro High School Junior Department of Agricultural, Environmental and Development Economics Introduction: In a previous article, we compared the trend in U.S. average yield per harvested acre for the 1940-1995 and 1996-2011 periods. The year 1996 was the first year that biotech varieties of crops were commercially adopted in the U.S. The analysis included 14 crops, 3 biotech crops (corn, cotton, and soybeans) and 11 crops for which adoption of biotech varieties is limited. This article specifically examines the deviation of average U.S. yield from its trend-line yield. The objective is to provide information concerning the commonly-expressed argument that biotechnology has reduced yield variability. Analytical Procedures: The data for this analysis are from the U.S. Department of Agriculture, National Agricultural Statistics Service, accessed at http://www.nass.usda.gov/Data_and_Statistics/) during November 2011. The observation period is from 1940 through 2011, with 1940 being the approximate year that average yield began to increase for most U.S. crops. We will use corn yields since 1995 to illustrate the calculation of yield variation used in this analysis. The yearly corn yield, along with the linear trend line, is presented in Figure 1. We calculated the percent deviation of the actual yield from the estimated trend-line yield for each year. For example, U.S. average corn yield was 160 bushels per harvested acre in...
Read More »
No Comments
Farm Policy, January 2012
Share |
Dec
13
2011

Biotechnology and U.S. Crop Yield Trends

by: Carl Zulauf, Professor, and Evan Hertzog, Metro High School Junior Department of Agricultural, Environmental and Development Economics Introduction: Biotechnology varieties first became available for commercial use in the U.S. in 1996. By 2011, they accounted for 88%, 90%, and 94% of the acres planted to corn, upland cotton, and soybeans, respectively (U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS), Acreage, http://www.nass.usda.gov/Publications/index.asp, 6/30/11). For other crops, adoption of biotech varieties has been limited or nonexistent. Given that 15 years have passed, this article compares the trend in U.S. average yield since 1995 with the trend that existed from 1940 through 1995, a period that predates commercial biotech varieties. The year 1940 approximates when the average yield of most U.S. crops began increasing, due in part to traditional breeding methods. Analytical Methods: Yields per harvested acre were obtained for corn, all cotton, soybeans, and 11 crops for which adoption of biotechnology varieties is limited or non-existent. Source of the data is USDA, NASS, http://www.nass.usda.gov/Data_and_Statistics/, 11/2011. Linear yield trends were estimated for 1940-1995 and 1996-2011 using regression analysis. The estimated yield trends are tested statistically to determine if they exceed zero at the 95% confidence level. Also, the 1996-2011 yield trend is compared against the upper value of the 95% confidence ...
Read More »
No Comments
Farm Policy, January 2012
Share |
Dec
13
2011

Understanding Current Prices: Lack of a U.S. Corn Yield Trend since 2003

by: Carl Zulauf, Professor, and Evan Hertzog, Metro High School Junior Department of Agricultural, Environmental and Development Economics Introduction: Growth in demand tops most lists of causes of the post-2005 run-up in the price of farm commodities. The growth in demand has two primary sources: (1) world-wide growth in income and the associated demand for food and (2) increased use of farm commodities for biofuels. However, supply factors also have a role in explaining current prices. This article highlights a seldom-discussed explanatory factor: lack of a trend in average U.S. corn yields over the last 9 years (see the graph below, constructed using data obtained from the USDA, National Agricultural Statistics Service, accessed October 17, 2011 at http://www.nass.usda.gov/Data_and_Statistics/). Discussion: Statistical analysis finds no statistically significant time trend in average U.S. corn yields since 2003. Thus, the increase in consumption of U.S. corn from 10.2 billion bushels to 12.6 billion bushels between the 2003/04 and 2011/12 crop years, has largely been met through an increase in planted acres of 13.3 million (from 78.6 million acres to 91.9 million acres). It is important to note that it is not uncommon to find no statistically significant trend in U.S. average yield over a 9 year period. Of all 64 9-year periods starting with the 9 years that begin in 1940, less than half had a statistically significant upward trend in corn yields. This may seem ...
Read More »
No Comments
Farm Policy, January 2012
Share |
Dec
07
2011

Insurability of Crops Following Cover Crops

SPRINGFIELD, Ill., December 1, 2011 – An announcement made by the Risk Management Agency (RMA) outlines changes that will provide producers more flexibility when insuring a crop that follows a cover crop in the states of Illinois, Indiana, Michigan, and Ohio. Heavy spring rains last year delayed planting in parts of the Midwest raising concerns about the impact a cover crop may have on the insurability of a subsequent spring crop. Restrictions limited insurance coverage on crops that followed a cover crop that was harvested or reached the budded stage in the same crop year. For 2012, crops planted following a cover crop are insurable as long as the cover crop is killed on or before June 5th. Whether the cover crop has headed, budded or has been harvested no longer effects insurability. These changes affect corn, popcorn, sweet corn, hybrid seed corn, pumpkins, soybeans, grain sorghum and processing beans. The cover crop practice is defined as a crop planted within twelve months of planting the insurable crop and is recognized as a sound agronomic conservation practice for the area. Brian D. Frieden, Director of the Springfield Regional Office, RMA, said that this change recognizes the importance of crop insurance in protecting a producer’s livelihood and conservation in protecting the soil. For more details on how cover crops may impact your crop insurance policy, contact a crop insurance agent. Winter is the perfect time to review your crop insurance needs fo...
Read More »
No Comments
Farm Policy, Financial Management, January 2012
Share |
Dec
01
2011

2012 Farm Outlook Meetings from OSU Extension

By: Bruce Clevenger, OSU Extension Defiance County Farmers and agribusiness need to keep tuned into markets, production economics and farm policy. Trends can change due to measurable factors or seemingly unpredictable forces. Farmers, agribusinesses and others in the agricultural industry have the opportunity to learn more about the current farm outlook at an Ohio State University Extension 2012 Farm Outlook Program. Ohio State University’s Department of Agricultural, Environmental, and Development Economics and OSU Extension will make presentations that will bring forth the latest outlook on grain markets, domestic and foreign energy, livestock and dairy and farm policy. Five programs are scheduled beginning December 13. Meetings are coordinated by local OSU Extension office and/or local agri-business to deliver Ohio State University’s foremost authorities. Featured speakers include: Matt Roberts, OSU Extension Agricultural Economist, on grain and energy outlook; Barry Ward, OSU Extension Agricultural Economist, on production economics of farmland values and input costs such as seed, chemical and fertilizer markets; Carl Zulauf, OSU Extension Agricultural Economist, on Farm Policy and the Farm Bill; Cam Thraen, OSU Extension Agricultural Economist, on Dairy Marketing and Policy. The 2012 Farm Outlook Programs are open to the public and will provide insightful information for farming in 2012 and beyond. Locations, dates, times and registration inf...
Read More »
No Comments
December 2011, Farm Policy, Upcoming Events
Share |
Nov
07
2011

CHANGES TO THE AGRICULTURAL CHILD LABOR REGULATIONS: What it could mean when hiring young people on the farm

By: Dee Jepsen, Assistant Professor, Agricultural Safety Specialist Recently the Department of Labor issued a proposed ruling to change the kinds of agricultural equipment and agricultural chores young people (under age 16) would be permitted to perform. Farm employers and agricultural businesses are encouraged to read more about the proposed changes and how these changes will affect youth working in agricultural settings. To access the complete document, visit the US DOL website: http://webapps.dol.gov/FederalRegister/HtmlDisplay.aspx?DocId=25286&Month=9&Year=2011 These proposed changes will be the first update since 1970. They are designed to bring agricultural jobs in line with other guidelines required of employers in non-agricultural areas. NOTE: The proposed rules would continue to exempt children working on family farms.  A summary of the changes include: 1) Regulatory changes to the Child Labor Laws for Agriculture. • Tractors operated by 14 and 15-year old youth be equipped with approved Roll-Over Protective Structures (ROPS) and seatbelts; and that seatbelt use be mandated. • Prohibit the use of tractors of any horse power, including small garden-tractors; whereby the training exemption will either be removed or changed to 90 hours of study. • Require that student learners operating tractors & farm machinery on public roads have a valid state driver’s license. • Prohibit use of electronic devices, including communicatio...
Read More »
No Comments
Farm Policy, Labor Management, November 2011
Share |
Oct
19
2011

Ohio Livestock Care Standards Released

There have been several meeting held around the state where the Ohio Livestock Care Standards Board have presented their recommendations.  David Tornero from the Ohio Department of Agriculture has made video clips of  the Ohio Livestock Care Standards meeting.  They are broken up by the topics of Dr. Glauer’s Powerpoint presentation.  These videos are being posted as educational information for our readers.

 History and Process  http://youtu.be/OdqXbkYJIow

 Outreach and Definitions  http://youtu.be/XOtwhltB6LU

 Water and Feed  http://youtu.be/us0sraF6wNc

 Management  http://youtu.be/nIfJRVb26Sk 

 Health   http://youtu.be/D7yngXIHhm0

 Transportation  http://youtu.be/ab-4JCEq21s

 Euthanasia  http://youtu.be/62E8QPtSUDY

 Enforcement  http://youtu.be/XlRuFkX2AFA

 Enforcement (Dr, Forshey)  http://youtu.be/dlO8rhtM6jY

 

No Comments
Farm Policy, November 2011
Share |
Jul
07
2011

Eliminating Direct Payments and Potential Impacts of Extending Ethanol Tax Credit

by Chris Bruynis, Extension Educator

The University of Missouri recently released two articles that are of interest to farmers. The first examines the effect on the agriculture economy if direct payments would be eliminated from the next Farm Bill while the second examines the potential impacts of extending the ethanol tax credit.

Eliminating direct payments is expected to increase the participation in ACRE or similar options in the next Farm Bill, have no effect on acres planted by crop, and reduce land values slightly. For more information go to Potential Impacts of Eliminating Direct Payments.

The ethanol tax credit article can be found at FAPRI U.S. Biofuel Baseline and impact of extending the $0.45 ethanol blenders credit. Although this article looks at the benefit and probable outcomes of extending the credit, the reader can infer what the probable outcome may be now that the tax credit has been voted out by the Senate.

No Comments
Farm Policy, July 2011
Share |
Jun
16
2011

GIPSA Hog Contract Requirements

by Robert Moore, Attorney-Wright Law Co. LPA Dublin, Ohio The 2008 Farm Bill contained specific provisions that must be included in all hog production contracts. The Grain Inspection, Packers, and Stockyards Administration (GIPSA) defines hog production contracts as “any growout contract or arrangement under which a person or business raises and cares for swine according to the instructions of another person”. In essence, anyone raising, feeding, or growing hogs for another person or business is subject to these provisions. Four specific provisions must be included in all hog production contracts executed after June 18, 2008. The provisions are as follows: 1. The Grower may cancel the contract within three days after signing or within some other agreed to period. The method of notice and deadline for cancellation must be specifically provided. 2. Include a disclosure statement on the first page that clearly states that additional large capital investments may be required of the grower during the term of the contract. 3. Allow growers to opt out of arbitration provisions before entering a contract. 4. The venue for a contractual dispute shall be the federal judicial district in which the contract was performed and the choice of law shall be governed by the state in which the dispute arose (unless otherwise prohibited by the law of the state in which the contract was being performed). Contracts that were executed after June 18, 2008 but do not contain the...
Read More »
No Comments
Farm Policy, July 2011, Legal Issues
Share |
Jun
15
2011

USDA Announces Projects to Provide Increased Renewable Energy Production, Reduce Reliance on Foreign Oil

NE Ohio has been designated a BCAP project area!! See below news release Click here to access more information about Aloterra Energy and BCAP in Ohio WASHINGTON, June 15, 2011 — Agriculture Secretary Tom Vilsack announced today the establishment of four additional Biomass Crop Assistance Program (BCAP) project areas to promote the cultivation of crops that can be processed into renewable energy. Acreage in Arkansas, Missouri, Ohio and Pennsylvania will be designated to grow giant miscanthus, a sterile hybrid warm-season grass that can be converted into energy to be used for heat, power, liquid biofuels, and bio-based products. “Renewable, home-grown, clean energy from American producers is vital to our country’s energy future because it reduces our reliance on foreign oil and creates good-paying production jobs that cannot be exported,” said Vilsack. “Today’s announcement will make a significant contribution to rural America and create nearly 4,000 jobs, demonstrating the great economic potential the production of renewable energy holds for our rural communities.” It is estimated that each of the four project areas and conversion facilities would earn about $50 million per year. According to industry estimates, a large number of biorefinery, agriculture and support jobs will be created in each area. The estimates are: Ashtabula, Ohio - 1,210 jobs added; Paragould, Ark. - 750 jobs added; Aurora, Mo. - 960 jobs added; and Columbia, Mo. - 98...
Read More »
No Comments
Farm Policy, July 2011
Share |
« Older Entries

Information presented above and where trade names are used, they are supplied with the understanding that no discrimination is intended and no endorsement by Ohio State University Extension is implied.

Ohio State University Extension embraces human diversity and is committed to ensuring that all research and related educational programs are available to clientele on a nondiscriminatory basis without regard to race, color, religion, sex, age, national origin, sexual orientation, gender identity or expression, disability, or veteran status. This statement is in accordance with United States Civil Rights Laws and the USDA.

Keith L. Smith, Ph.D., Associate Vice President for Agricultural Administration and Director, Ohio State University Extension TDD No. 800-589-8292 ( Ohio only) or 614-292-1868