November 20, 2009
Cornbelt Update
Cornbelt Update is a weekly summary of news from Extension, government, and other attributable sources, focused on marketing, farm management, and other issues that are of interest to Midwestern farm owners and operators.Posted by Stu Ellis at 12:50 AM | Comments (0) | Permalink
November 19, 2009
Have You Ever Considered Defaulting On A Grain Delivery Contract?
Throughout the long harvest corn prices have stayed in the upper range of prices established in the late summer. The uncertainty of the quality and quantity of the crop has kept the market interested enough to offer prices in the mid to upper level of USDA’s expected price range for the year; and many farmers have forward contracted corn in anticipation of higher prices. The objective for every producer is to forward contract at a profit, and not be challenged if the market moves decidedly higher than his contracted price. That happened in 1995 and 1996 when it turned hedge-to-arrive contracts inside out to the point they were nearly declared illegal. And it recurred in 2008 when highly volatile prices created financial challenges for elevator managers leery of offering forward contracts. There is always a temptation to ignore a grain delivery contract and sell at another elevator if prices go higher. So what will be done by the grain industry to prevent the failure to deliver?Posted by Stu Ellis at 10:20 PM | Comments (0) | Permalink
What Is The Financial Future Of Your Farm?
Whether you are a livestock producer besieged by high input prices and low market prices, or whether you are a crop producer besieged by high input prices and low market prices, you are being blown apart by a “perfect storm” that threatens to financially devastate your operation. As you begin to look at the end of 2009 and the start of 2010, what is your thought process to evaluate your options?Posted by Stu Ellis at 12:09 AM | Comments (0) | Permalink
November 17, 2009
How High Will Corn Yields Go?
If your spring planting was not delayed, and if the corn had matured before cold temperatures stopped that process, and if wet weather had not jeopardized your harvest, what would your corn have yielded? Most farmers in the Cornbelt would have been generally happy with 2009 yields, if they would have occurred in a normal weather year. That may cause some of your minds to wander this winter wondering what the prospects are for trends in corn yields.Posted by Stu Ellis at 12:16 AM | Comments (0) | Permalink
November 16, 2009
Zero Capital Gains Taxes. Are You Ready To Take Advantage?
You are approaching the year 2010 when there will be a zero tax on property that would normally be subject to a capital gains tax when it is sold. For example, if you sell a farm in 2010 for more than you paid for it, the gain would not be subject to a capital gain tax, if you are in the 10% or 15% tax brackets for ordinary income. Yes, 2010 is all of next year, why should you be concerned about that in the next 45 days. We’ll tell you why.Posted by Stu Ellis at 12:22 AM | Comments (0) | Permalink
