Corn and Soybean Basis Strengthen Across the Midwest Amidst Decreasing Prices
Between February 12th and March 12th, the markets for corn and soybeans significantly changed. As market prices have dropped, corn and soybean basis across the Midwest have strengthened. The basis strengthening is a welcomed change following over 2 months of weakening or unchanging basis. The falling market prices have decreased the value of uncontracted stored grain. Stored grain hedged through futures markets has increased in value over the last month as the basis has strengthened.
Read MoreThe Role of Technology in Improving Farm Profitability | Commodity Classic 2025
Each year, numerous emerging technologies claim to boost your production, reduce input usage, or streamline your farm’s operations. However, the effectiveness of these technologies varies across different farms. Purdue ag economists James Mintert, Michael Langemeier, and Chad Fiechter examined how technology affects long-term farm growth and profitability, and share insights from farm financial records and farmer surveys during their 2025 Commodity Classic Learning Center Session on March 4, 2025. Watch the recording now!
Read MoreContingency Planning with Cash Flow Shortages
Contingency plans related to how to respond to changes in projected cash flows are important. Given the expected drop in crop prices this fall and wide variability in expected prices, it would be prudent for a farm to examine the sensitivity of their cash flow and repayment capacity to changes in crop prices. Using a case farm in southwest Indiana, Michael illustrates how contingency plans could be used.
Read MoreFarmer Sentiment Rises as Current Conditions Improve on U.S. Farms
U.S. farmer sentiment continued its upward trend in February, as the Purdue University/CME Group Ag Economy Barometer rose 11 points from the previous month to a reading of 152. Purdue ag economists James Mintert and Michael Langemeier share some insight into the results of the February 2025 Ag Economy Barometer survey, conducted from February 10-14, in this episode of the Purdue Commercial AgCast.
Read MoreFebruary Indiana Crop Basis Update & Using the Crop Basis Tool to Plan Storage Hedges
Since the beginning of December, corn and soybean basis across Indiana have generally been stable. Over the 10 weeks, most basis levels stayed within a $0.10/bu. range.
Read MoreFlexible Cash Rent Leases, Presentation at Ag Women Engage
Michael Langemeier presented at the Ag Women Engage Conference in Fort Wayne, Indiana on February 13, 2025, on flexible cash rent leases.
Read More2025 Crop Cost and Return Guide
The Purdue Crop Cost and Return Guide offers farmers a resource to project financials for the coming cropping year. These are the February 2025 crop budget estimations for 2025.
Read MoreBenchmarking Labor Efficiency and Productivity
Labor costs are one of the most prevalent costs on a farm. As such, farm managers need to evaluate whether they are utilizing labor efficiently and productively. One way to evaluate this issue is to use benchmarks created using data from similar farms. Labor benchmarks should include family and operator labor as well as hired labor.
Read MoreU.S. Farmers’ Retain Optmistic Outlook for 2025 Despite Ag Trade Uncertainty
U.S. farmers retained their post-election optimistic outlook at the start of the new year as the January Purdue University/CME Group Ag Economy Barometer Index rose 5 points above a month earlier to a reading of 141. Purdue ag economists James Mintert and Michael Langemeier share some insight into the results of the January 2025 Ag Economy Barometer survey, conducted from January 13-17, in this episode of the Purdue Commercial AgCast.
Read MoreIndiana crop basis to nearby contracts are stable through the first half of January
Through the first three weeks of January, corn and soybean basis have been stable or weakened slightly. This is a continuation of the stabilization and slight weakening that started in December and follows statewide strengthening throughout November. Before November, the 2024-2025 crop basis levels were well below the three-year average.
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