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Nebraska Corn and Soybean Planting Progress Report

Nebraska Planting ProgressFarmers across the nation are hard at work getting their crops into the ground as we head into the final two weeks of May. The latest USDA weekly crop progress estimates from Monday showed progress being made for both corn and soybeans over the last two weeks. In Nebraska, farmers have also moved forward and are slightly ahead of neighboring states despite various weather-related factors, chief among them being last week’s cold temperatures and some rainfall.

By the numbers, for corn, as of May 18 Nebraska producers had 91 percent of their corn in the ground, versus 78 percent for the same date last year. This is slightly ahead of the five year average of 89 percent for the state for this date. For the total 18 states that the USDA reports these statistics, as of May 18, the nation’s farmers had 73 percent of corn planted, versus 65 percent at this date in 2013. This is only 3 percent short of the overall five year average for this time of 76 percent. Overall, these numbers show that planting progress for corn is once again keeping pace, despite the previous week’s weather delays.

For soybeans, Nebraska farmers have 65 percent planted, versus only 29 percent as of May 18, 2013. This is 10 percent higher than the five year average of 55 percent for the state. Overall numbers show slightly less progress, however, with 33 percent of soybeans in the ground, versus 21 percent in 2013. The overall average is 38 percent by this time over the past five years.

Planting progress only shows half the story, however, and the USDA also reported the percentages of emergence for both corn and soybeans in this week’s numbers. For Nebraska corn, the report showed 43 percent emergence, up substantially from the previous week’s 18 percent, and only slightly behind the NE corn emergence average of 45 percent. Overall, corn emergence was at 34 percent. While this is a significant gain from the previous week’s 18 percent emergence, it is still lagging the five year average of 42 percent. Soybean emergence is close to the usual five year averages, with Nebraska reporting 13 percent emergence and overall numbers reporting 9 percent. The averages are 14 and 11 percent, respectively.

After last week’s low temperatures, where many parts of the state saw frost on three consecutive nights, farmers are concerned that their newly planted crops were affected, and are now in the process of assessing whether or not they will have to replant. Either way, crop growth and development was hampered by the cold temperatures. Farmers concerned with potential damage need to do some investigating. The University of Nebraska Lincoln CropWatch analysts advise the following:

To determine the need for replanting, first estimate stands. Then, estimate yield potential. The most important factor in deciding whether to replant is to calculate expected yield with the current stand versus what you could potentially have if you replanted. Lastly, estimate replanting costs.  Consider costs of tillage, seed, fuel, additional pesticides, and labor. Consider also that delayed planting certainly means higher grain moisture at harvest and the possibility of fall frosts before physiological maturity. You may want to consider planting a shorter season hybrid seed. Caution: Before replanting, contact your crop insurance agent, Farm Service Agency, and others with an interest in your crop.

The weather forecast for the coming week predicts near to above normal rainfall for a large portion of the Midwest, which could add more delays to the last stretch of planting. However, warmer temperatures will help alleviate potential delays to a certain extent. If you have planting concerns or questions about your farmland, feel free to contact us at United Farm and Ranch Management.

United Farm and Ranch Management (UFARM) is a Nebraska-based company devoted to meeting landowners’ needs. UFARM offers a full range of Nebraska land management services, including real estate sales, rural property appraisals, consultations and crop insurance. UFARM has operated in Nebraska since the early 1930’s.  Find out more at ufarm.com.

 

Sources:
“Time to Dig In and Assess Need for Replanting Corn.” Cropwatch. University of Nebraska-Lincoln. 09 May 2014. Web. 20 May 2014.
“Corn and Soybean Planting Maps.” Agweb. Farm Journal. 19 May 2014. Web. 20 May 2014.

The Comeback Crop: Alfalfa

Alfalfa in NebraskaAfter the extreme drought conditions across the Midwest in 2012, it appears that alfalfa acres—both planted and harvested—rebounded in 2013. This is welcome news to many alfalfa growers, who would prefer a less volatile market that the availability of more alfalfa brings.

Traditionally, growers prefer alfalfa due to its low input costs. Nebraska’s climate is ideal for the growth of high-quality alfalfa, and the May through October growing season allows Nebraska alfalfa growers to harvest approximately 5 million tons on 1.5 million acres each year.

According to the USDA’s January crop report, the nation’s farmers produced 136 million tons of hay, which was 13% more than in drought-stricken 2012. 58 million acres of hay were harvested, up 4% from 2012. For alfalfa specifically, 57.6 million tons were harvested, a gain of 11% over 2012 yields. As for harvested acres, there were 17.8 million acres brought in nationwide, an increase of 3% above 2012 totals. Hay stored on farms in 2013 saw a 17% increase from 2012, at 89.3 million tons.

The January USDA report also indicated that growers seeded 2.52 million acres of new alfalfa, also a 5% increase from newly seeded alfalfa in 2012. Interestingly, although this marks the second consecutive year for new seeding, it is still the third smallest seeded area on record.

South Dakota State University agriculture economist Matt Dierson explains why this increase is welcome news to growers.

“Nationwide, we had 2.5 million new acres planted in 2013,” says Diersen. “That tells me we could be coming off the bottom for really low, harvested (alfalfa) acres. Any way you look at it, that’s a good thing.  Without some additional acres, we’re going to have continued swings in supplies and prices and more volatility in the market. This, at least, is a move in the right direction.”

Alfalfa prices in Nebraska hit up to triple times their normal price in 2012 due mostly to the drought, which significantly affected the alfalfa crop. High prices for corn in the years leading up to 2012 also had an effect on alfalfa prices, since many producers reduced their alfalfa production to put in more corn acres.

High dairy demand is also a major driver of alfalfa prices, and various economists believe that the uncertainty of feed sources facing many dairy farmers will contribute to increases in alfalfa hay prices. Economists also expect a high export demand for hay to similarly affect the price of alfalfa. Additionally, should the western growers continue to experience a prolonged drought, alfalfa prices for area growers could increase as a result.

Of course, Mother Nature always has the last word, and time will tell what growing and moisture conditions will greet Nebraska growers during the 2014 growing season. Although recent snowfall is welcome for its moisture, it is evident that the 2014 planting season will be later, and will possibly curb an earlier cutting for many alfalfa growers.

Taken in total, a projected increase in alfalfa acres combined with a healthy demand for the crop points toward a more stable market and a favorable price. UFARM can help you stay on top of the latest crop trends. Feel free to contact us for a free consultation.

Sources:
“Hay Production Makes a Comeback.” Hayandforage.com. Hay & Forage Grower. 14 Jan. 2014. Web. 04 Apr. 2014.
“Is An Acreage Comeback Looming For Alfalfa?” Hayandforage.com. Hay & Forage Grower. 31 Jan. 2014. Web. 04 Apr. 2014.

Can Your Land Benefit From Cover Crops Like Turnips And Radishes?

Planting Cover CropsWhile corn and soybeans are the dominant crops grown in Nebraska, many farmers are also looking toward maximizing their land’s efficiency and productivity by adding cover crops like turnips and radishes to their usual crop rotations.

There are multiple benefits to planting a cover crop. Planting cover crops to fallow fields improves soil structure, reduces weeds, adds and retains moisture, prevents erosion and runoff, adds important nutrients to the soil, builds up organic matter, and prevents compaction. They are used to feed cattle, as well. Increasingly, Nebraska farmers are recognizing these advantages and incorporating them into their fields as much as possible.

After a field is harvested, there is less residue remaining to protect the soil from the elements. In a drier year, many farmers harvest the residue as forage for their livestock or cut silage, so the residue remaining is even less. Less surface residue leaves fields more vulnerable to erosion from rain and wind. Research has shown that fields left open to the elements lose much more moisture to evaporation than fields that have a cover crop.

There is a lot of research going into microorganisms in soil, and the importance of feeding them. Just as humans benefit from consuming a diverse diet, so too do soil microorganisms. Cover crops provide this added nutritional diversity. Farmers who have grown cover crops for several years have seen the organic matter of their soil drastically improve as a result. They find that there is less need to apply nitrogen to their fields, as the radishes mine the depths of the ground for the existing nitrogen deep in the soil and make it more readily available on the surface for future crops such as corn.

Cover crops help prevent soil compaction that can occur in particular types of soils. In particular, this is why the root vegetables like turnips and radishes are useful; they naturally dig in and create soil channels where moisture and nutrients can then penetrate. Fields where farmers have planted radishes are often less susceptible to soil compaction, since the radishes produce a very long tap root that breaks through the tough, deep soil. The plants break up the soil while they are in the ground, like a natural plow.

Turnips are an excellent cover for farmers who graze cattle on their fields after harvest. They are a high moisture plant, and cattle favor them due to their high sugar content. They are packed with protein, as well, and so make a great forage plant for cattle through the winter months.

Turnip and radish seed are relatively inexpensive, and producers that have utilized them as cover crops say that the positive results they see are worth the cost.

As farmers and landowners endeavor to maximize their land, as well as to increase their yields, they are using any means available to get the most out of their ground while keeping input costs down. They are learning that planting beneficial cover crops like turnips and radishes are a great way to do just that.

The land managers at UFARM can help you maximize your land’s potential.  Contact UFARM today.

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How Will 2014 Crop Input Costs Affect The Bottom Line?

input costsAs farmers reach their last rounds in the combine harvesting 2013’s crop, most are already thinking ahead to 2014. One of their top concerns is input costs and how best to manage them to maximize their bottom line.

The drought of 2012 and its resultant high-demand and low supply of crops led to high commodity prices, but with some drought-relief in major corn and soybean areas of the country in 2013, it is expected that commodity prices will adjust to reflect a better grain supply. With grain prices on the general decline, farmers expect to contend with potentially tight profit margins in the coming harvest year. As a result, analysts expect changes in the money they pay for 2014 input costs such as fertilizer, fuel, chemicals, and seed.

On the whole, fertilizer costs have declined. In particular, potash and phosphate are down 15-17% since last spring, and nitrogen has declined 22% this fall. Depending on how much the weather will allow farmers to get their fertilizers applied this fall will further determine the price of fertilizers next spring. The decrease in the price of nitrogen reflects potential lower corn acres in 2014, as well as an increase in domestic production of nitrogen.

Likewise, fuel costs are expected to be down slightly in 2014. The price of the diesel fuel that runs most farm machinery is expected to be down by 4%. Similarly, the price of natural gas, which is commonly used to dry corn, is projected to be down by 4% as well.

The price of chemicals—in the form of herbicides, insecticides and fungicides—will be mixed. Purdue University farm business management specialist Alan Miller contends that chemical prices will be up slightly, with a 1% increase, with the exception of herbicides, which will remain flat. Experts urge farmers to try to buy chemicals in bulk when possible in order to cut costs. Another way to cut input costs is to consider purchasing seed and chemical package deals when making seed-buying decisions.

Seed prices are predicted to be up in 2014, perhaps as much as 2-3% for the 2014 planting season. However, while producers always attempt to watch their pricing inputs, they will not cut corners when it comes to selecting the type of seed they choose to grow. With the technology that goes into seed genetics and the beneficial ways these hybrids can maximize yields and overall profits, farmers realize that it is in their best interest to choose the right type of seed for their ground, regardless of cost.

Finally, experts predict land and rent prices to remain where they are in 2014. Machinery costs, which have increased an average of 7% per year from 2002-2012, could fall as a result of lower commodity prices, especially if these lower prices are sustained for a longer period of time.

While it is impossible to predict yields and prices for the 2014 growing season, it is necessary for farmers to make input decisions now in order to maximize profit and lower risk where possible.

If you have questions about how input costs will affect the profitability of your land or operation, please contact one of the professional farm managers at UFARM for a free consultation.

 

 

 

 

 

 

Nebraska Harvest in Full Swing

Combines across Nebraska have been running the month of October, even if the government hasn’t been. With the 17% government shut down, the USDA confirmed that the Crop Estimate and World Supply and Demand report will not be released as usual, since the data analysts and those who compile harvest data from Farm Service Agencies were furloughed the majority of October.  Since being reinstated there is now a back log of data. This leaves market analysts and farmers wondering about the particulars of the harvest data, including projections about corn and soybean acres.

In particular, due to the late, wet spring planting conditions, analysts were interested in seeing the prevented planting acreage numbers that were to be included in this report, and how this data might affect the overall corn and soybean markets. In mid-September, FSA reported that 3.57 million acres of corn and 1.69 million acres of beans were prevented from being planted. For the time being, though, life does go on, and the crops don’t care how soon Congress gets its act together.

Timing-wise, the start of the Nebraska harvest has been average to slightly later, although it has been much later than last year’s atypically early harvest. As of Oct. 8th, the overall corn harvest nationally was at 12% vs. the historical average of 23%. Beans were further behind at 11% vs. 20% historical average. Nebraska farmers were out in force, before a large rain system moved through the eastern half of the state, dumping significant amounts of rain in many areas and stalling harvest for several days. Frost was forecasted for certain areas, but stayed away the first part of October.

So far, corn and soybean yields have been higher than predicted or expected. Private analysts continue to report higher-than-expected yields for corn, with the average September corn yield higher than the 155.3 bushels/acre that was previously estimated. Higher than expected yields have resulted in rather bearish corn market. While soybean yields are also good so far, the USDA already raised last year’s crop size by 19 billion acres, so market adjustments to use should be minimal. Additionally, while early yields from early-planted fields have been favorable for both corn and beans, it’s still questionable whether or not these yield numbers will hold up as farmers begin to harvest from later-planted fields.

Favorable yields have also brought down the basis of both corn and beans, with the bean basis 5 cents lower than the 5 year max average and the corn basis is even with the 5 year max average. (dtn.com)  Some analysts believe the basis will continue a downward trend as harvest continues.

To date, the markets have coped fairly well without the smaller, weekly USDA reports. However, as we approach additional government budget issues, all the markets may feel the effects, including the grain markets. Hopefully negotiations on Capitol Hill will move forward and further shutdowns can be avoided.

If you’re looking for assistance managing the constant changes happening with your farmland,  contact a UFARM manager for a free consultation.