Contingency Planning with Cash Flow Shortages
Contingency plans related to how to respond to changes in projected cash flows are also important. Given the expected drop in crop prices this fall, it would be prudent for a farm to examine the sensitivity of their cash flow and repayment capacity to changes in crop prices.
Read MoreImpact of Lower Corn Prices on Swine Feed Costs
Indiana corn prices during the first quarter of this year were on average approximately $6.60 per bushel. The most recent WASDE report indicates that corn prices could be substantially lower for the upcoming crop.
Read MoreNew and Improved Crop Basis Tool
It is hard for me to believe, but the Purdue Center for Commercial Agriculture Crop Basis Tool has been around for more than five years. Since then, the Tool has served as a valuable source of current and historical corn and soybean basis information for producers and grain industry participants.
Read MoreWhat Does the Federal Fund Rate Increases at May FOMC Meeting Mean?
During the May 3rd Federal Open Market Committee (FOMC) meeting, the FOMC voting members raised the Federal Funds Rate by another 25 basis points; making the target Federal Funds Rate between 5% and 5.25%. This Federal Reserve has consistently increased the Federal Funds Rate during each FOMC meeting for over a year.
Read MoreWhy is Managing Strategic Risk So Important in Production Agriculture?
Strategic risk is difficult to quantify. Despite this fact, it is important to prepare risks impacting U.S. farms and build resilience.
Read MoreU.S. Corn Exports Struggle to Meet USDA’s Weak Export Forecast
Seasonally, U.S. corn exports tend to peak in the spring and weaken into the summer months. Although weekly corn export shipments have improved since late winter, they have not increased enough to offset weak exports last fall and especially during much of the winter.
Read MoreProducer Sentiment and Farm Growth
There are numerous reasons why a farm may want to expand including the following: reduce costs, improve profit margins, improve…
Read MoreFarmer sentiment improves; less pessimism over interest rates
Purdue ag economists James Mintert and Michael Langemeier share some insight into the results of the April 2023 Purdue University-CME Group Ag Economy Barometer survey. Farmer sentiment improved modestly in April as the Ag Economy Barometer reversed a two-month decline up 6 points to a reading of 123. This month’s survey was conducted from April 10-14, 2023.
Read MoreCritical Juncture for Crop Basis & Your Marketing Strategy for the Remainder of ’22 Crop
On this episode of the Purdue Commercial AgCast, Nathanael Thompson and James Mintert explore what’s been taking place in the Eastern Corn Belt on corn basis, the May/July CBT corn spread, as well as the July/September CBT corn spread, and discuss how you might pursue some marketing strategies for the remainder of the ’22 crop that you might have in storage.
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