Harvesting the Headlines
Between the 24/7 demands of running an agricultural operation and the blinding pace of our world today, there is little time to sift through all the headlines. The good news is that you no longer have to!
Our goal is to point you to some of the most important headlines in agriculture, so you can stay informed on the forces shaping your livelihoods.
To save you time, here are the week's top links and news items:
Farmland recently sold in Sioux County, IA for $30,000/ac! While pasture/rangeland has not been quite as hot as cropland, values across all types of land have seen significant increases in 2022. Prices have been driven by strong commodity prices and limited supply.
What is really interesting is that the vast majority of buyers are producers, not investors. While most analysts expect values to remain strong in 2023, there are reasons for caution. Keep an eye on rising interest rates and commodity prices going forward.
It's time to start thinking about your risk management plan for the 2023 crop, and the backbone of any good plan is crop insurance. The University of Illinois has produced a Crop Insurance Decision Tool for the 2023 crop year.
The screenshots in the link highlight expectations for crop insurance prices in Illinois, but the tool does cover all of the major crop producing states.
Current expectations for a slight (less than 5%) increase in crop insurance premiums over 2022. However, much can change between now and March 15th. Go talk to your crop insurance agent!
High feed costs and the third straight year of drought conditions have resulted in relatively low cattle inventory numbers.
This link covers all the major factors influencing cattle prices (weather, production costs, demand, global trade, etc.) and includes some nice graphics.
The lower overall numbers would suggest that cattle prices will be strong in 2023.
Up to this point, most major equipment manufacturers have required customers to use company service divisions for repairs.
A recently signed memorandum of understanding between Farm Bureau and John Deere has granted a significant win for the "right to repair" movement.
In a time when overall production costs are rising, this move has the potential to provide savings for many producers.
McKinsey & Co surveyed 5,500 farmers across the globe to determine the forces shaping the future of agriculture. The report has some very nice graphics and concludes that the top areas shaping the future are:
1. Willingness to Innovate
2. Digital Commerce Adoption
3. Growth in Digital Financing and Payments
4. AgTech Adoption
5. Adoption of Sustainability Practices
Get in touch
If you have any links you'd like to share or have any questions, please contact Travis Carlstrom, Sr. Ag Credit Analyst at FBN.
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