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Hobbyfarmer
Honored Advisor

let the decisions begin

RMA Sets Projected Prices of

 

$4.15 For Corn,

 

$9.73 For Soybeans

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8 Replies
roarintiger1
Honored Advisor

Re: let the decisions begin

My decision is that I am going to farm another year............and, I am keeping my hammer close by.

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ray h.
Senior Contributor

Re: let the decisions begin

    Yes, you guys have a dicision to make,and the very dicision you make and sing up will give them the (powers that be) the info to use against you in the market place for the next annual! Tell them you are removed 10% by grassland expansion,see what happens!

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wrightcattle
Veteran Advisor

Re: better yet, ray h., don't just

tell em your putting back 10% to hay or grass...DO IT.

 

heck Japanese Millet grosses $1,500 to $2,500 per acre as high RFV hay ( 15 to 22 tons per acre )....nets bout half the afore.

 

 

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farmer46
Senior Contributor

Re: let the decisions begin

Well, looking at the numbers, I am thinking 300 rent is looking nice for a new landlord.  ME.

idalivered
Advisor

Re: let the decisions begin

New landlord is getting the shaft. better offer him more!!

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BA Deere
Honored Advisor

Re: let the decisions begin

Being as it`s a "odd numbered" year the decision on my 2015 corn/bean rotation was already known years ago, as I`m in a rotation regardless of the price.  That`s not to say it won`t dramatically change in the upcoming years.

 

Since fall, around here there was a opportunity to lock in more than the "$9.73" cash new beans, however "$4.15"  new corn would`ve been tough.   Just 20/20 hindsight, back in May of last year it looks like a guy should`ve sold both C5Z ($4.50)  and S5X ($11.50) all the way up to your APH.   But that`s all runway that`s behind us now.

 

The only decision that I`ll be making in 2015 is if we`ll have macroni and cheese or Ramen noodles for supper.   🙂

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Red Steele
Veteran Advisor

Re: let the decisions begin

Looks like the corn/soybean markets are back in some sort of relative harmony, with the price ratio being 2.35. The 50% corn and 50% ratio seems to be the way to go if this holds for a few years. WIth arc-co for our area, it doesn't matter what you plant to get the 2015 and 2016 payments, you want to plant what nets the most. 

 

I can make money on  $4 corn and $9.50 soybeans and those new crop guarantees look pretty good to me. I was going to go pretty bare on 2015 crop insurance, but those numbers look too good to pass up. 

 

When we get to 2017, 2018, etc down the road, and the government payments diminish, the cushion that we built up with prepaid expenses and deferred grain is gone.....that will be the time when we wil find out who has been swimming in the nude and who has their clothes on. My plan is to make sure that I can make money with $2.50 corn and $6 soybeans and that the rest will be gravey.

 

An Iowa question about Senator Grassley...he is influential in the farm committees and no doubt he has made sure that he gets his. WIth the new CSP signup, is Grassley going to collect $30 to $40 extra per acre for doing things the "right" way? What all does Grassley do that is conservation minded...I read an article about how he farms, doesn't he delay nitrogen fertilization until spring, leave his cornstalks and drill beans into them...anything else come to mind? The rest of us plebs need to know the "right" way of doing things, too.

 

I know that no-till soybeans do not work very well in my area and that is a sure way not to make any money at current prices, but if soybeans retreat to $6, a $40 CSP payment would be close to 7 bushels per acre. Strip till corn does seem to work all over, and if that is what it takes, I can be all in on that.

 

Something for the rest of us to think about. 

 

 

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westernia80
Senior Contributor

Re: let the decisions begin

I am farming another year.  Bankers projected cash flow looks better than my projected one.  He just sold the bank to a larger one, maybe thats why he approved me cuz he does care if I pay it off LOL.

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