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Showing posts from September, 2014

Extension launches 2014 Farm Bill dairy education seminars

University of Minnesota Extension and the Farm Service Agency of the U.S. Department of Agriculture begin a series of free dairy education seminars this month to help farmers make decisions brought about by the 2014 Farm Bill.

Dairy producers have until Nov. 28 to enroll in the Dairy Margin Protection Program. Newly created by the farm bill, the program aims to reduce producers' exposure to catastrophic losses through risk management. The program is voluntary and pays producers when the difference between the national price of milk and the average cost of feed falls below a level selected by the producers.

"The farm bill creates a new opportunity for dairy producers to manage risk. These training sessions will go through various scenarios to help dairy producers make the most appropriate decisions for their operations," said Kevin Klair, University of Minnesota Extension economist and program leader at the university's Center for Farm Financial Management. "This i…

Farm Bill base acre correction deadline fast approaching

In July, farm landowners received a base acre and yield commodity crop history summary letter from their Farm Service Agency (FSA) office. The summary letter lists the landowner's FSA farm planted acres for 2008 through 2012. Landowners have 60 days from the time they received the summary letter to contact the FSA office if there are any discrepancies in the data listed. This information is essential to being able to sign up for the new 2014 Farm Bill programs.

There have been instances in which the summary lists no data or the data is incorrect. If the data is missing or the data listed in the summary letter is incorrect, the landowner should contact the FSA office in the county where the land is located. If the landowner rents the land to a tenant, the tenant can contact the FSA office on the landowner's behalf. Once contacted, the FSA office staff can research and correct the base acre information for the specific FSA farm.

The 60-day deadline is required only if there are er…

Limiting Losses can be an Important Grain Marketing Decision

By Don Nitchie, U of M Ag Business Management Extension Educator

We have probably all listened to stories from a neighbor who laments about having sold grain or livestock at a modest profit when a more profitable market price was available earlier or later than their selling date. We probably put on our understanding face and consoled them with some comment like; "we have all been there", "hind-sight is always 20/20" or "at least it was profitable".

Too many folks may have forgotten over the last 7-8 years of strong grain prices especially, that limiting losses in more lean times can prove to be a sound part of your marketing plans. One of the most important lessons learned from experienced, long-time professional commodity traders is that eliminating losing positions before they get worse can be as important as when to price in a increasingly profitable market. If you can do this with good self discipline you may help sustain your capital base and be th…

CFFM releases a new, improved web version of FairRent

Land rent negotiations are going to be very challenging this year. At current commodity prices it is going to be very important for producers to know their costs and look at options to limit downside risk. The Center for Farm Financial Management, University of Minnesota has just released a tool to help producers and landlords evaluate alternative land rental arrangements. FairRent for the Web is a new and improved web version of the FairRent desktop software that CFFM has distributed for over 20 years.

The new web version of FairRent includes the option to evaluate seven different flex lease options as well as traditional cash rent and share rental returns. Another improvement is the inclusion of crop insurance in the analysis to show how insurance limits downside risk.

FairRent is free to use. Just sign up at https://fairrent.umn.edu/ and begin creating rental plans. Also, check out FINBIN, a great source of information of crop production costs for your rental plans.