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Crops

Corn and Soybean Basis Levels Remain Weaker than Normal but are Strengthening

Corn and soybean basis remains weaker than normal in many parts of the United States. For example, in Central Indiana corn basis the first week of December was $0.45/bu. under March ‘24 corn futures.

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2024 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 March 2024 crop budget estimations for 2024.

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November 2023 Corn & Soybean Basis Update

As the calendar turns to November, many farmers in the eastern Corn Belt still have corn left to harvest. According to USDA, 68% of corn in Indiana has been harvested as of November 5th. Wet corn in the primary culprit. As a result, many elevators are full and are at drying capacity.

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Corn and Soybean Basis Weaken as Harvest Heats Up

As harvest heats up across the Midwest corn and soybean basis have been weakening. Weakening basis during harvest is typical of seasonal basis patterns. Therefore, to give context to current basis levels it is helpful to compare them to historical basis levels.

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Long-run Cash Rent

Examine breakeven prices, earnings per acre, breakeven cash rents, and trends in working capital with this spreadsheet tool.

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Déjà vu: Low Mississippi River Levels and Rising Barge Rates May Affect Grain Markets Again this Fall

Dry and hot conditions this year are again contributing to lower than normal river levels and, as a result, increasing barge rates. This is certainly something producers will want to pay attention to this fall.

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Conventional and Organic Enterprise Net Returns

Comparing crop yields, gross revenue, total expense, and net returns for conventional and organic alfalfa, corn, oats, soybeans, and winter wheat using FINBIN data.

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Comparing Net Returns for Alternative Leasing Arrangements

This article used a case farm in west central Indiana to compare the net return to land for crop share, fixed cash rent, and flexible cash leases. The average net returns to land from a landowner perspective were similar among the three lease arrangements.

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Forecasting New Crop Basis Bids for Fall 2023

We are now in the final weeks of the 2022-2023 crop marketing year, and after what has been a wild year for corn and soybean basis, basis bids for old crop corn and soybeans have largely settled and are in alignment with historical values for this time of year in most regions across the eastern Corn Belt.

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Comparing Corn and Soybean Marketing Strategies

This article identified the optimal portfolio of corn and soybean marketing strategies for a case farm in southeast Indiana. The hedge and roll strategy had the highest net return per acre, and the lowest level of downside risk of any of the individual marketing strategies. However, downside risk can be reduced by diversifying marketing strategies. In particular, combining the hedge and roll strategy with the marketing year cash price strategy was effective in reducing downside risk and resulted in only a slight decline in net return per acre.

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