|
|
|
$11 Soybeans Require A Preharvest Marketing
Plan
The recent jump in soybean futures prices to above
$11/bu. has increased the potential payoff to farmers who develop a
solid preharvest marketing strategy, says Ed Usset, grain marketing
specialist for the University of Minnesota Center for Farm Financial
Management (CFFM).
"About a year ago, $4 cash corn prices resulted in a lot of acres being
planted to corn, but by the time harvest rolled around, we had only $3
corn prices," says Usset. "This year, $10 cash bean prices are going to
attract more acres in beans. So, a lot of people may plant soybeans this
year thinking they'll get $10 beans when they might only get $7 or $8
beans at harvest."
Farmers should keep in mind that "great marketing and great decision
making is not about finding the highest price -- that's too hard a game
to play," says Usset. "Great marketing is trying to shoot for a good
average price over time." Usset's newly released book, "Grain Marketing
is Simple (it's just not easy)," explains the need to pace marketing
decisions throughout the year.
Skilled grain marketers will develop a separate strategy for
preharvest and postharvest marketing, emphasizes Usset. Above all,
preharvest marketing requires a well-thought-out plan, he adds.
"You base your preharvest plan on either timing or price levels or a
combination of the two," says Usset. An example of the start of a
preharvest marketing strategy would be to set a goal of selling 10% of
your soybeans at a $10.25 cash price or $11 futures price by March 7,
with the pricing tool to be determined.
For postharvest marketing, the focus should strictly be on the storage
decision. "Look at the market incentives to store your crop and then
decide on what pricing tool to use to ensure you are paid adequately,"
he says.
Usset's last point of advice is that grain marketing may be simple, but
it's not easy. "There's no guarantee that the best plan will work in
your favor each year," he says, "but over time it will."
To read more tips on developing a preharvest marketing plant, click
here: www.cffm.umn.edu/GrainMarketing.
To read more about Ed Usset, click here: cornandsoybeandigest.com/marketing.
By John Pocock
|
Take
Precautions To Shelter Soy Biodiesel Fuel From Cold
As the mercury starts falling in thermometers across
the country, taking precautions to ensure your biodiesel fuel is
protected is a smart move. Just like petroleum diesel, biodiesel will
gel in very cold temperatures. That's why the soybean checkoff works
with the National Biodiesel Board (NBB) to determine best management
practices for biodiesel in cold weather.
Blends of B2 to B20 (2% biodiesel to 20% biodiesel) can be used
successfully all year -- even in the coldest of climates. Take similar
precautions and follow fuel-management techniques as you would with
petroleum diesel. These include blending with kerosene, using block and
filter heaters and storing vehicles indoors. It is best to purchase
biodiesel pre-blended from your petroleum distributor rather than trying
to implement these techniques on the farm.
"Soy biodiesel is a great fuel in any weather," says Chuck Myers, United
Soybean Board (USB) Domestic Marketing chair and a soybean farmer from
Lyons, NE. "As with petroleum diesel, you just have to take precautions
in extreme winter conditions to make sure biodiesel continues to perform
at the level you have come to expect."
While some fuel additive suppliers claim to have products that work with
neat (100%) biodiesel, it is more likely that these products impact
generic diesel's or heating oil's cold flow characteristics and not neat
biodiesel's. Still, NBB is overseeing checkoff-funded research on
additives that will help improve the cold-flow properties of neat
biodiesel.
To manage winter challenges, it is important to know how the cold
affects biodiesel. On average, a 20% blend of biodiesel will impact the
finished fuel's cold-weather operational temperatures by 2-10° F.
B20 blends have enjoyed a successful track record nationwide when these
instructions have been followed.
Petroleum distributors should store B100 blends at temperatures at least
5-10° F higher than the cloud point. Storage temperatures of
45-50° F are acceptable for most B100 fuels, although some may
require higher storage temperatures. Most underground storage facilities
are adequate, but above-ground fuel systems should be protected with
insulation, agitation, heating systems or other methods, depending on
the climate. These precautions should also be taken with piping, tanks,
pumping equipment, vehicles or any other equipment used for transport.
"If you follow the recommended storage and handling procedure during the
winter months, you should be able to realize the benefits of using soy
biodiesel, like increased lubricity and reduced emissions," says Myers.
"The bottom line is: if you take care of your biodiesel, it will take
care of you -- even in harsh winter conditions."
To read what cold weather users have to say, and for handling and use
guidelines, visit www.biodiesel.org. For more
information on how the soybean checkoff is supporting biodiesel efforts,
visit the "Farmers" link at www.unitedsoybean.org.
Source: United Soybean Board
|
A Premium On
Traits
Corn and soybean producers are in for an increase in
their seed bill in 2008. On average, corn seed prices are up an
estimated 15% over 2007 prices, and soybean seed prices are up 8-10% or
more.
The level of increase depends on the hybrid or variety selection, as
well as the trait package contained in that seed. In corn, some of the
top traited hybrids are seeing price increases well above 15%.
Gary Schnitkey, farm management specialist at the University of
Illinois, projects that corn seed prices will increase an average of
$11/acre and soybean seed prices an average of $9/acre.
To continue reading this article about higher costs for corn and
soybeans seed, click here: farmindustrynews.com/seed.
By Mark Moore
|
ADVERTISEMENT
Click
here! For an easy and free viewing of Moe Russell's Business Skills
Series. Enjoy an informative 15-minute webcast from Moe Russell
sponsored by Asgrow soybeans.
|
 |
CASE IH Expands B100 Biodiesel Use In Farm
Equipment
Case IH has extended its recommendations on use of
biofuels to include B100 -- pure biodiesel -- on even more of its farm
equipment models.
Farmers now can use B100 on nearly all Case IH medium- to
high-horsepower tractors, combines, windrowers and most self-propelled
sprayers and cotton pickers -- so long as proper protocols are followed
for engine operation and maintenance. "With record prices for crude oil,
Case IH committed to exploring better ways to use environmentally
friendly biofuels made from renewable raw materials," says Don Rieser,
Case IH director of tractor product management. "We have conducted
rigorous laboratory and in-field tests to evaluate how our engines
perform with various biodiesel blends. As always, our ultimate goal is
greater productivity for our customers."
Rieser says that Case IH dealers are knowledgeable about guidelines for
using biodiesel fuels in Case IH equipment and can advise farmers on
biodiesel approvals and technical requirements. Recommended practices
include sourcing pre-blended biodiesel from reliable suppliers,
following proper filter and oil change intervals and -- in some cases --
having dealers install special parts to help the vehicle perform as
expected with a higher percentage of biodiesel.
New approvals for use of B100 apply to Case IH JX series, JXC series,
JXN series and JXU series tractors, as well as the full-line up of
Maxxum, Puma and Magnum tractors -- including the new Magnum 335. All
new Steiger tractors also are approved for B100, except the highest
horsepower model, the Steiger 535.
Other Case IH models okayed for B100 are the new Module Express 625
module-building cotton picker and SPX3320 and SPX4420 self-propelled
sprayers.
All Case IH machines leave the factory with a blend of biodiesel and
traditional diesel fuel. Customers can use B5 in all Case IH engines
without restrictions or special engine maintenance. Case IH also
supports B20 use in more than 90% of the models it sells in North
America and Europe -- again with certain requirements for operation and
maintenance.
Customers can check biodiesel approvals and requirements by visiting the
Case IH Web site at www.caseih.com/
and looking for the special "Biodiesel Ready" logo on individual product
pages.
Source: Case IH
|
South Dakota AgOutlook 2008 Set For Dec.
13
AgOutlook 2008 will be held Dec. 13, 2007, in Sioux
Falls, SD, at the Ramkota Exhibit Hall. AgOutlook is a free, one-day
exposition featuring educational seminars, a trade show and the annual
meeting of the South Dakota Soybean Association. It's also an
opportunity for area agricultural commodity and livestock producers to
look ahead and find ways to meet the demands of the future.
Over 650 ag producers attended the second annual AgOutlook in 2006,
which featured 80 exhibitors. Featured speakers for this year's event
include: Bob Utterback, president/CEO of Utterback Marketing Services,
Inc.; Ron Hanson University of Nebraska professor of agribusiness; and
Jay Lehr, agricultural futurist.
AgOutlook is pleased to provide a free noon meal to the first 600
registrants. Register by Dec. 10 to receive your free noon meal ticket
and your ticket for the $1,500 bulk soy biodesel drawing (B2-B5 blend).
Register online at www.sdsoybean.org or call
605-330-9942.
Source: South Dakota Soybean
Association
|
How To Calculate Fair Cash
Rents
Are you part of a tenant-landowner tandem trying to
determine a fair cash rent for the 2008 crop year? Take comfort in the
fact you are not the only one, and the definition of "fair" is going to
cause many rent negotiations to be protracted well toward the arrival of
spring. The secret is to keep all options open and look for creative
ways to achieve the goal for both sides.
If a tenant and landowner have totally ruled out a crop share lease that
establishes a percentage of income and expenses for both sides, the next
alternative is a cash-rent lease. It is simple by the fact the operator
knows exactly what the financial obligation is, and it is simple for the
landowner who may have no interest in keeping expense records in return
for sharing in the commodity income. But structuring the lease and
establishing the rental rate are challenging.
To continue reading this article on how to calculate a fair cash rent,
click here: www.farmgate.uiuc.edu.
To read suggestions from Iowa State University (ISU) economists Don
Hofstrand and Bill Edwards on structuring cash rent agreements in the
November issue of the Ag Decision Maker newsletter, visit this ISU Web
link: www.extension.iastate.edu.
To read more articles from The farm gate, click here: www.farmgate.uiuc.edu/.
By Stu Ellis, The farm gate blogger and
editor
|
Central Ohio
Agronomy Day Convenes Dec. 18
Growing organic matter, managing foliar fungicides,
enhancing soybean traits and farming with precision technology are just
some of the topics being covered during the Central Ohio Agronomy Day on
Dec. 18.
The Ohio State University (OSU) Extension-sponsored event will take
place from 8:30 a.m. until 3:15 p.m. in Founders Hall at the OSU/Central
Ohio Technical College Newark campus. Registration is $25 before Dec. 14
and $30 at the door and includes refreshments, lunch, proceedings of
presentations and 6.5 hours of continuing education units from certified
crop advisors.
Topics of discussion during the event include growing organic matter and
tilth in your soils, scenarios and possibilities for 2008 weather,
enhanced quality soybean traits, fertilizer application accuracy,
optimizing fertilizer costs, soil and water balance, precision farming
with planter units and sprayer nozzles, foliar disease management in
corn and soybeans and weed resistance.
Event presenters include Jerry Hatfield, National Soil Tilth Lab in
Ames, Iowa; Jim Noel, National Weather Service; Scott Shearer, professor
of machine systems automation engineering at the University of Kentucky;
Robert Mullen, OSU soil fertility specialist; Dennis Mills, OSU plant
pathologist; and Mark Loux, OSU weed specialist.
For more information or to register for the Central Ohio Agronomy Day,
contact the OSU Extension Licking County office at 740-670-5315, e-mail
lick@postoffice.ag.ohio-state.edu,
or log on to licking.osu.edu/agriculture.
Source: Ohio State University
Extension
|
How Should
The Farm Business Be Organized?
Farm owners and operators have five main business
entities to select from. They include sole proprietorship, general
partnerships, limited liability partnerships (LLP), corporations and
limited liability companies (LLC). Each is unique as to liability
protection, taxation and ability to aid in the transfer process.
Sole proprietorship has one owner operator. In Minnesota this form is
the most common. General partnerships are also quite common. Two or more
individuals combine their assets, and that process determines their
share of ownership in the partnership. Usually the partnership holds the
checkbook, records and perhaps the machinery, livestock, equipment and
grain. Land can be included or excluded.
A partnership entity itself does not pay tax, so this simplifies the tax
process. Any profits or losses flow to the partnership members in an
amount equal to their ownership percentage. All members of the
partnership are fully liable for all debts and obligations of the
partnership.
An LLP includes general and limited partners. General partners handle
the day-to-day activities of the partnership. The limited partners
usually contribute only capital to the partnership. Because the
partnership is a closely held entity by the family, there is limited
marketability for the business. This allows for discounting asset
values, which is beneficial for decreasing a large estate's value. The
LLP affords limited liability exposure to the limited partner. As with
the general partnership, each partner has ownership units that can be
sold, gifted or passed through an estate to the entering generation.
There are two types of corporation, the S and the C corporation. The S
corporation is a pass-through entity. It is taxed just like the general
partnership and any profits or losses go to each shareholder in an
amount equal to the value of their shares.
For the C corporation, individuals pool their assets, form the C
corporation and issue shares of stock equal to the value of the assets
they contributed. The C corporation offers limited liability protection
to all shareholders. However, the C corporation is an entity unto
itself, so a corporate tax filing is required.
Land should not be placed into the corporation. Placing land into the
corporation is a tax-free event but getting it out is not. Corporation
shares can be sold, gifted or passed through an estate to the entering
generation.
The newest of business entities is the LLC. The LLC is a hybrid
offering the taxation procedure of the general partnership and the
limited liability of the corporation. If constructed properly and
registered in one of the protective states (which include Alaska,
Delaware, Nevada, South Dakota and Wyoming), both business and personal
assets can be protected from lawsuits, liens and the effects of divorce.
Parents generally keep their land, usually their largest retirement
asset, outside the business entity and then rent it to the entity to
generate a retirement revenue stream. If the parents are a member of the
business entity, it is currently acceptable in Minnesota, Arkansas,
Iowa, Missouri, Nebraska, North Dakota and South Dakota to rent to the
entity. The rental income is not subject to self-employment tax if the
rent is fair and reasonable.
By Gary Hachfeld, University of Minnesota
Extension
|
Growing Crops For Fuel Is Theme Of UNL
Workshops
Producers, consultants, dealers and others interested
in agriculture will want to attend one of five "Growing Corn or Soybeans
to Fuel Nebraska" workshops from Dec. 17-21, says Bob Klein, a
University of Nebraska-Lincoln (UNL) cropping systems specialist.
The workshops in Neligh, Beatrice, Hastings, Lexington and Sidney start
with registration at 9 a.m. and adjourn at 3 p.m., says Klein, who is
stationed at UNL's West Central Research and Extension Center at North
Platte.
Morning topics include pointers on making cropping system decisions,
information on making fuel from cellulose, crop residue values and how
much can be sustainably removed, equipment and planning for planting in
heavy residues and growing crops for better biodiesel.
In the afternoon, industry specialists will discuss what grain
characteristics make the best ethanol. Other topics include corn,
soybean and (in Sidney) wheat production costs; recognizing and managing
diseases in these grains; water management to conserve both energy and
water; and evaluating cropping systems.
The registration deadline for these workshops is one week before the
date of the workshop. A nominal fee to cover lunch and program materials
will vary from location to location. For details, call or e-mail the
contact listed below:
- Dec. 17, Antelope County Courthouse meeting room, Neligh; Dewey
Teel, 402-887-5414, dteel1@unl.edu.
- Dec. 18, Extension Office, Beatrice; Paul Hay, 402-223-1384, phay1@unl.edu.
- Dec. 19, Adams County Fairgrounds, Hastings; Ron Seymour,
402-461-7209, rseymour1@unl.edu.
- Dec. 20, Extension Office, Lexington; Dave Stenberg, 308-324-5501,
dstenberg1@unl.edu.
- Dec. 21, Holiday Inn, Sidney; Karen DeBoer, 308-254-4455, kdeboer1@unl.edu.
Source: University of Nebraska-Lincoln
Extension
|
Too Much
Money?
A country music song performed by Daryle Singletary
includes the lyrics, "Too much fun, what's that mean? It's like too much
money, there's no such thing." However, with current high fuel prices,
many American drivers may feel that refiners' earnings are too high.
While everyone might have a different idea of what constitutes "too much
money," the most recent quarterly financial reports from the large U.S.
refiners included in the Energy Information Administration (EIA)
Financial Reporting System (FRS) show that profits from domestic
refining and marketing were 54% lower in the most recent quarter (Q3,
2007) than they were a year earlier, despite higher motor gasoline
prices this year.
To keep reading "This Week In Petroleum," which includes information
about this week's lower heating oil, gasoline and propane prices, click
here: tonto.eia.doe.gov/oog/info/twip/twip.asp.
Source: The Energy Information
Administration
|
NASS Urges Farmers To Participate In 2007 Ag
Census
The USDA's National Agricultural Statistics Service
(NASS) urges farmers to ensure that the 2007 Census of Agriculture
counts their farm or ranch.
Conducted every five years by the USDA, the Census is a complete count
of the nation's farms and ranches and the people who operate them. The
Census looks at land use and ownership, operator characteristics,
production practices, income and expenditures and other topics. It
provides the only source of uniform, comprehensive agricultural data for
every county in the nation.
"Tools like the census enable farmers to help shape the future of
agriculture and their local communities," says NASS Administrator Ron
Bosecker. "To do this, we urge them to speak out and let their voices be
heard by participating in the 2007 Census of Agriculture."
NASS will mail out census forms on Dec. 28, 2007 to collect data for the
2007 calendar year. Completed forms are due by Feb. 4, 2008. Producers
can return their forms by mail or, for the first time, they have the
convenient option of filling out the census online. For more information
about the census, visit www.agcensus.usda.gov or call
toll-free 888-4AG-STAT or 888-424-7828.
Source: USDA
|
U Of I Corn
And Soybean Classics Convene Jan. 14-18
The latest perspectives on critical issues in crop
production and protection for corn and soybean growers will highlight a
series of regional conferences scheduled at five sites during Jan.
14-18, 2008.
The 2008 University of Illinois Corn and Soybean Classics will cover a
wide array of hot topics, including economic returns for corn and
soybeans. Other sessions will cover strip tillage, foliar fungicides for
corn, corn and soybean basis, corn rootworm management, soybean cyst
nematodes, corn following corn, soybean aphids and waterhemp management.
Scheduled speakers include U of I Extension specialists Darrel Good,
Fabian Fernandez, Gary Schnitkey, Carl Bradley, Mike Gray, Terry
Niblack, Emerson Nafziger, Kevin Steffey and Aaron Hager.
The day-long programs are scheduled at the Rend Lake Conference Center
in Whittington on Jan. 14, the Crowne Plaza in Springfield on Jan.15,
the i Wireless Center (formerly The Mark) in Moline on Jan. 16,
Kishwaukee College in Malta on Jan. 17, and the Interstate Center in
Bloomington on Jan. 18.
Registration begins at 8:30 a.m., and the program will start promptly at
9:00 a.m. Adjournment at each site is set for 3:00 to 3:30 p.m. The
pre-registration fee for each session is $45 through Dec. 22, 2007. Late
registration or registration at the door is $60.
Registration is available on-line at www.ipm.uiuc.edu/conferences
or by calling Sandy Osterbur at 217-244- 2124. Additional information is
available by contacting Aaron Hager at 217-333-4424.
Source: University of Illinois
|
Register Now
For Corn/Soy EXPO Wisconsin Dells
Registration is now underway for the annual Corn/Soy
EXPO Wisconsin Dells scheduled for Thursday, Jan. 24, through Friday,
Jan. 25, at the Kalahari Conference Center.
This year's program includes a key note address by John Phipps, host of
America's longest-running farm TV show U.S. Farm Report; a farm bill
update; and presentation by Elwynn Taylor, Iowa State University
agricultural meteorologist.
Educational breakout sessions Thursday, Jan. 24, cover topics ranging
from corn and soybean pest control strategies to insurance, marketing
and precision agriculture applications. University and industry
specialists will discuss whether it pays to spray fungicides on corn in
Wisconsin and representatives of several state ethanol plants will
discuss the benefits and features of their new distillers' grain
products.
The emerging practice of strip tillage is the topic of a panel
discussion featuring three growers from across the state with different
soil conditions, varying machinery and diverse cropping practices
sharing their experiences. University of Wisconsin Extension Soil
Specialist Dick Wolkowski will moderate this session and offer his tips
for success with strip tillage.
Both days of Corn/Soy EXPO Wisconsin Dells start with early bird
marketing outlook sessions and updates on association activities. Annual
meetings of Wisconsin Soybean Association, Wisconsin Corn Growers
Association, Wisconsin Soybean Marketing Board and the Wisconsin Corn
Promotion Board also are part of this event. A large industry trade show
runs in conjunction with the annual Corn/Soy EXPO Wisconsin Dells. A
Friday sit-down luncheon features a special, entertaining speaker.
Exclusive sessions for women are being expanded at this winter's
Corn/Soy EXPO, due to their popularity last year. Consultants from
Stewart-Peterson are conducting both a marketing basics class and an
advanced marketing session for women and a special grilling session is
planned in conjunction with the Wisconsin Pork Association. All three
women's breakout sessions are free of charge and registration isn't
required to attend.
This annual event is a great opportunity for corn and soybean growers to
mix business with family time at a popular Wisconsin winter destination.
Admission to the Pork Producers Taste of Elegance reception is
included as part of Corn/Soy EXPO and a special overnight, standard room
rate at the Kalahari of $99 is available for registered conference
attendees.
Program brochures and registration materials are available online for
download at www.wisoybean.org and
www.wicorn.org or by calling the
WASA office at 608-223-1111.
Source: Corn/Soy EXPO Wisconsin Dells
|
Tofu Bear
Anyone?
The holidays are approaching, and soy products are a
great gift option for many of those on your shopping list. The number of
unique and diverse products continues to grow, and includes everything
from stuffed animals and baby blankets to candles and crayons. Consider
Tofu Bear, a 100% SOYSILK brand fiber teddy bear. SOYSILK is made from
the waste produced during the tofu manufacturing process, and is known
for its soft cashmere-like feel. Tofu Bear and his friends are found at
www.tofubear.com.
Source: Illinois Soybean Association
|
New Year's
Resolution: A Note From The Soybean E-Digest
Editor
Each year we hear about people making a New Year's
resolution, but I wonder just how many people actually make them and if
they do, what percentage actually sticks with their resolution to make
it a life-long practice?
I myself have never made a New Year's resolution. I prefer to make
changes to any bad behavior as it's pointed out to me, which generally
occurs about every day in my family! Anyway, I've heard it only takes 21
days to break a bad habit. That means we all have plenty of time as of
today to start the new year bad-habit free.
My question to you is what are some common New Year's resolutions that
soybean growers might need to make in 2008? For example, one resolution
might be to develop a preharvest marketing plan before planting soybeans
this year. Another might be to buy a high-quality biodiesel fuel or a
biodiesel-fuel blend whenever possible.
My hope is that you can think of better examples than these and that
you'll take the time to send your suggestions to me to share with other
readers. If I hear back from enough of you, I'll share the top New
Year's resolutions in an upcoming Soybean E-Digest.
As always, if you have any other ideas on what you'd like to see covered
in a future issue of the Soybean E-Digest, or if you have
concerns or questions about this issue, please write me (John Pocock)
at: jpocock@csdigest.com.
Thanks for your readership.
|
|
|
You are subscribed to this newsletter as #email#
To unsubscribe from this newsletter go to: Unsubscribe
To subscribe to this newsletter, go to: Subscribe
More About this Newsletter
To get this newsletter in a different format (Text or HTML),
or to change your e-mail address, please visit your profile
page to change your delivery preferences.
For questions concerning delivery of this newsletter, please contact our
Customer Service Department at:
Customer Service Department
Corn and Soybean Digest
A Penton Media publication
US Toll Free: 866-505-7173
International: 847-763-9504
Email:cornandsoybeandigest@pbinews.com
Penton Media | 249 W. 17th Street | New York, NY 10011
Copyright 2007, Penton Media. All rights reserved. This article is
protected by United States copyright and other intellectual property
laws and may not be reproduced, rewritten, distributed, re-disseminated,
transmitted,
displayed, published or broadcast, directly or indirectly, in any medium
without the prior written permission of Penton Media.
|
|
Subscribe
