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They’re not making any more farmland, right? Wrong. “Don’t believe that myth,” advises Mike Boehlje, an agricultural economist at Purdue University. The Corn Belt hasn’t expanded as if by magic. But the red-hot commodity prices of recent years have stimulated a dramatic increase in new land coming into production around the globe, Boehlje says. In addition, productivity of existing farmland continues to climb as high prices justify more intense management....More

The current low interest rates should remain low through 2013 and possibly through 2014, according Purdue University agricultural economist Mike Boehlje. He says the U.S. Federal Reserve is keeping interest rates artificially low to stimulate an economic recovery. “Ben Bernanke has said he will continue to keep interest rates low even until 2015,” Boehlje explains. “That is a pretty good indication we will probably have interest rates at this level for the next year....More

Generally, farms with more of their acres cash rented at higher cash rent levels will face more downside income risk compared to farms with fewer acres cash rented at lower cash rent levels. As a result, farms with high cash rent levels could face large losses in some future year. This is illustrated by projecting 2013 incomes for farms with different rental situations. Farm situation...More

Energy crop company Ceres, Inc. today announced that its Brazilian subsidiary Ceres Sementes do Brasil Ltda., has signed a sweet sorghum market development agreement with Syngenta. The companies will work together to support the introduction of sweet sorghum as a source of fermentable sugars at Brazil's 400 or more ethanol mills.  ...More

Current futures prices suggest harvest-time 2013 prices of $5.80 per bu. for corn and $12.40 per bu. for soybeans. Given these prices, 2013 farm incomes likely would be above average. Worst case incomes depend on levels of projected prices used to set crop insurance guarantees. Likely projected prices will provide significant downside revenue protection. To quantify income projections, farm incomes for a 1,200 Illinois grain farm are simulated and presented. Farm situation...More

As the lower 48 states experienced the third hottest summer on record and nearly 80% of agricultural land has been affected by the first major drought since 1988, many AEM member companies may be wondering what effect this will have on equipment sales. Based on data compiled by AEM’s market intelligence staff, the short answer is – it may not be as significant as many think....More

Penton Media today acquired Farm Progress from Fairfax Media Limited of Sydney, Australia, significantly expanding its agriculture sector footprint to become the largest and most diversified agriculture information business in North America, offering live events, digital products, data, marketing services and publications. This acquisition directly supports a key Penton strategy of increasing investment in existing sectors that offer strong long-term growth potential, and it more than doubles Penton’s position in agriculture, which becomes the company’s largest sector group....More

Wilbur-Ellis Company, a recognized leader in the distribution and marketing of plant protection, seed and nutritional products, announced it has acquired the assets of Mott Grain, located in Mott, N.D.  The acquisition broadens Wilbur-Ellis’ footprint in Southwest North Dakota and will complement the company’s aerial application business. ...More

Soybean prices reached a peak on September 4, with November 2012 futures trading to $17.89 per bu. The price of that contract declined to about $15.50 by the end of September and has been in a range of $14.86 to $15.74 since then. The price is currently in the lower half of that range....More

People tend to think of ozone as something in the upper atmosphere that protects the earth’s surface from UV radiation. At the ground level, however, ozone is a pollutant that damages crops, particularly soybean.   Lisa Ainsworth, a University of Illinois associate professor of crop sciences and USDA Agricultural Research Service plant molecular biologist, said that establishing the exposure threshold for damage is critical to understanding the current and future impact of this pollutant.  ...More

Corn and soybean prices have been high in recent years, leading to high farmland returns and increasing cash rents. In the following article, the ability to pay cash rent is examined under differing corn and soybean price scenarios that are likely to occur over the next several years. These price scenarios include 1) 2013 price estimates, 2) long-run price estimates, and 3) low price estimates. The 2013 price projections yield returns that can sustain high cash rents. Lower prices likely will lead to downward pressure on cash rents....More