Minding Ag's Business
Marcia Zarley Taylor DTN Executive Editor

Wednesday 07/23/14

Why Rents May Be Slow to Tumble
Farmers stand to lose money on cash rented land in 2014 and 2015, if average lease rates don't adjust to new economics. On the other hand, landowners may be slow to budge.[Read Full Blog Post]
Posted at 10:59AM CDT 07/23/14 by Marcia Zarley Taylor | Post a Comment
Comments (7)
If I remember correctly, the last major correction ended with about 80% ,give or take, of the farm land in Iowa being in receivership.
Posted by Bonnie Dukowitz at 6:45PM CDT 07/22/14
Your right Bonnie and I don't think lenders are going to be to eager to carry someone losing money every year.Why would you feed a dead horse? I feel this is just the first of many low or no profit years to come.I am glad we have no debt at this time and can farm at these prices.
Posted by Raymond Simpkins at 8:01PM CDT 07/22/14
I had an interesting visit with a neighbor yesterday who farms about 5,000 acres. He has "pushed the pencil" and found that reducing his average rent of $360/acre to $320/acre would have similar consequences as adding 18 cents a bushel to his average corn price. The question then arrises - do you risk upsetting your landlord for 18 cents a bushel which might be obtained with good marketing. He's hoping that fertilizer prices will come back down from stratosphere levels as a result of reduced demand. Like my neighbor, I don't see how revenue insurance will keep us out of the red for 2015's crop. When will the ag press do a story on that, considering how gleefully they reported insurance "profits" in 2012!!
Posted by Curt Zingula at 7:51AM CDT 07/24/14
Curt, crop insurance might not keep you out of the red next year, but do you think farmers are factoring in potential ARC payments yet? Given current price scenarios, Univ of Illinois economist Gary Schnitkey pencilled in $45-$75/acre 2015 corn payments on Ill. farms last week, which might alleve some stress. If that's the case, time might be best spent persuading landlords to sign up for the right farm program rather than arguing over a few dimes per bu., as your neighbor says.
Posted by Marcia Taylor at 10:35AM CDT 07/25/14
C'mon Marcia, How does one factor potential?
Posted by Bonnie Dukowitz at 4:21PM CDT 07/25/14
Curt is on point with what farmers can do! Less fertilizer demand!
Posted by Roger Cooper at 10:00AM CDT 07/27/14
We have been fortunate to get decent crops where we are when everyone else couldn't get a rain to save their lives, no basis is killing us with cash corn around two bucks, still county average yields are under sixty bushels per acre, it will take a miracle to save us this year!
Posted by JAMIE KOUBA at 11:27PM CDT 08/11/14
 
What Farm Widows Wished They Knew
Farm accidents can strike at any age. Good farm advisers and documentation of what couples own, farm lease terms and business roles after a partner's death can ease the grief.[Read Full Blog Post]
Posted at 10:58AM CDT 07/23/14 by Elizabeth Williams | 0 Comments | Post a Comment
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