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Showing posts from August, 2017

Your Ability to have a Critical Conversation is Important to Your Long Term Farm Business Success

By Don Nitchie, Extension Educator

Successful farm management today, often depends on your ability to discuss important items “beyond and between the numbers”, in a constructive way.  Often these discussions are about pivotal points in history for your farm business or careers.  Sometimes you may be struggling with or even attempting to have a badly needed “critical conversation” about a significant decision that has to be made or implemented.  This maybe with a business partner, spouse, other family members, a landlord, son or daughter.

While many Minnesota farms are on average holding up well financially in these tight profit margin times—there are some stress points on some farms. Some critical conversations are necessary on the best of farms  for example if;  liquidity is weakening more than average the last few years and profitability has been weak across enterprises and the whole farm for the last few years. This probably has resulted in a weakening of Net Worth and maybe over-e…

Finding Common Ground with Consumers

by Betty Berning
Extension Educator

Local, non-GMO, organic, gluten-free.  These are some of the words you might see if you look at a package of food at the grocery store.  Some of it might make you chuckle.  What exactly is non-GMO soda, anyway?  And wasn’t oatmeal always gluten-free?!  Why are food companies using these words?
The answer is simple.  Consumers are asking for it.  According to the Center for Food Integrity (CFI), a non-profit organization whose members and partners range from farmers to food companies, today’s consumer is different from the consumer of the past.  Their research indicates that the consumer of the past valued price, taste, and convenience, while today’s consumer is looking for more.  Health and wellness, safety, social impact, experience, and the overarching theme of “transparency” are values of younger consumers. This explains why there are more organic and natural offerings at the grocery store.  It also explains the to be a boom in agri-tourism (berry-p…

Marketing Grain in Low Price Market

By David Bau, Extension Educator

Current marketing opportunities for the 2017 crop have been below the average farmer’s breakeven prices. Each year farmers in my marketing groups determine breakeven prices needed to cover their crop input costs and living expenses. The average cash breakeven price is $4.26 for corn and $10.78 for soybeans for southern Minnesota farmers. The average cash corn and soybeans prices for Worthington in 2017 has been $3.23 for corn and $9.07 for soybeans, well below the prices needed to cover costs.

Using 2016 farming results for corn and soybean producers from FINBIN database, the numbers are not good. The average of 1382 corn farmers in Minnesota lost $62.35 per acre for corn, while making $7.88 per acre on soybeans. This compares to a loss of $55.07 per acre for corn in 2015 and income of $8.34 for soybeans. A trend of larger losses was created from 2015 to 2016 even while input costs including rent rates declined and yields increased. The average price f…