Farmers continue to be pessimistic of farming conditions. For the second month in a row the Ag Economy Barometer declined sharply – going to 137 points. That’s 21 points below May. Producers in June say they are less optimistic about current conditions and future expectations.
Since peaking in April perception of farm performance has fallen sharply with expectations of input costs to rise faster this next year than the last decade.
Public versus private yield
There’s a bit of a difference between private and public yield and production forecasts in the US. According to Barchart, corn production is at 14.6 billion bushels with a yield of 176.5 bushels per acre. The USDA’s initial projection was 15 billion bushels and 179.5 yield. For soybeans, Barchart expects 4.3 billion bushels with 50 bushel per acre. USDA expects more: 4.4 billion bushels and 50.8 bushels per acre.
The forecasts offer users insights to help their crop marketing and business decisions ahead of when traditional government reports are released.
Cover crops and crop insurance
Farmers with crop insurance can now have more cover crop uses. The policy change lets producers with insurance hay, graze or chop cover crops for silage or hay at any time and still get a hundred percent of the prevent plant payment. Previously that could only happen after November 1st.
The USDA says they are dedicated to responding to the need of producers and the flexibility is good for agriculture.
Animal disease research
Iowa is getting some new dollars to fund animal disease research. The National Institute of Food and Agriculture on Wednesday announced a $14 million dollar investment in research to protect agricultural animals from disease. Of that, $500,000 will go to Iowa State University in an effort to protect cattle against stress and respiratory disease.
The USDA says the dollars overall go to understand, diagnose, control and prevent diseases in agricultural animals.
A look at the markets
We’re nearing the end of the week. Market analyst Jamey Kohake has the details:
“So far this week kind of a mixed bag trending lower, lots of volatility came in after long weekend, limit down and still trying to find stability off of that. Pretty much all the weakness coming off the forecast starting today through saturday time period with northern iowa southern minnesota see how that pans out early talk right now, it’s been light and scattered but markets still factor with more on the way but technically we may have hit way five, we also have fundamentals a real bearish number, real bullish in south america. Over to cattle, seasonally very weak right now, look for boxes trending on lower as well, we would have 124 in cash some very light trade of 125 yesterday, but futures trending on lower the next two weeks kind of bought them up to the early part of August. Over in the hogs, mixed bag here little bit choppy, the market got sideways until we get more stability in the cash and the cutouts here short term.”