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With the vast majority of the U.S. corn, cotton, soybean and sorghum crops yet to be harvested, crop insurance companies have already paid out nearly $2 billion in indemnities to farmers who have suffered losses this year....More

As one of the driest Septembers in state history comes to an end, the drought situation in Minnesota is being assessed by a number of state agencies as well as University of Minnesota Extension....More

November 2012 soybean futures reached a high of $17.89 on September 4, but have declined sharply since then. The USDA's September 12 Crop Production report containing a smaller yield and production forecast provided some brief support, but that contract has traded under $16 and is currently about $1.90 below the high. Basis levels have also weakened over the past three weeks. The average cash bid in central Illinois, for example, was $0.03 over November futures on September 4 and $0.13 under on September 21....More

Because most of the states hit by the 2012 drought were in the corn-producing areas of the country, serious feed shortages will occur for most livestock operations this winter. Yet, in spite of this ominous forecast, beef cattle producers likely will rely on the ability of their cattle to adapt to a variety of diets and ingredients. However, feeding strategies must be reviewed before considering use of drought-stricken crops and forages....More

Corn and soybean yield projections decreased Wednesday (Sept. 12) as the nation's Corn Belt continues to suffer through the worst drought since at least 1956. According to a U.S. Department of Agriculture Crop Production report, the nation's corn crop could be just 10.7 billion bu., down less than 1% from the Aug. 10 report and 13% from 2011. Those numbers represent the smallest corn crop since 2006....More

According to the National Agricultural Statistical Service (NASS), Illinois cash rents in 2012 increased by 16% over 2011 levels. Cash rents increases between 2012 and 2013 likely will not be as large. Results from a midyear survey by the Illinois Society of Professional Farm Managers and Rural Appraisers suggest increases between 1% and 3%. County cash rents in 2012...More

Crop insurance will make large payments this year as a result of reduced yields caused by the drought. Contributing to these large payments is the fact that most farmers purchased Revenue Protection (RP), a revenue insurance that has the harvest price option. Under the harvest price option, revenue guarantees increase when the harvest price exceeds the projected price. Crop insurance would have been lower had farmers purchased insurance with the harvest price exclusion....More

The pace of consumption of U.S. corn has been slowing, as evidenced by small weekly exports and export sales, smaller weekly estimates of ethanol production, declining cattle feedlot placements, and increased slaughter of dairy cows and the hog breeding herd. The extent of rationing required in the current marketing year that has just begun, however, is still not clear since the size of the 2012 crop is not yet known....More

The 2012 drought will be one for the record books. Its high temperatures and lack of rain put it among the 10 worst droughts in U.S. history, and the Corn Belt is stuck in the middle of it. The corn crop is expected to be 13% smaller than last year’s crop, according to USDA. Insured crop...More