What a difference a year makes. Last year at this time, corn prices exceeded $7.00 per bushel. A record corn crop of nearly 14 billion bushels in 2013 and a subsequent doubling of ending stocks to 1.48 billion bushels have led to today’s price of $4.60 per bushel. Soybeans have held up better in comparison and currently offer a cash price over $13.00 per bushel as compared to about $14.00 per bushel last year at this time. Soybeans have benefitted from continued very strong export demand (mainly China) and some production and logistical problems with Brazil’s crop. Looking forward to 2014, October corn bids are near cash price of $4.50 per bushel. Corn acres are expected to decline this spring and demand will be stronger, helped out by lower prices. October soybeans are trading at a significant discount to cash, currently near $11.00 per bushel. Soybean acres will be higher this spring and world-wide ending stocks are projected to jump. Of course, it is early yet and planted acres can change depending on weather and prices as we near planting time.
Our Fall 2013 newsletter described the varying land market across our trade territory, stating that land to the west of Highway 71 was generally holding value a little better than land to the east, depending on individual location factors and quality of each parcel. This continues to be the case, but we have noted a generally steadier market across the board so far in 2014. Value ranges established last fall have been holding mostly steady so far in 2014.
Arne Waldstein, AFM, ARA, 89, passed away on February 8, 2014 in Waverly, Iowa. Arne grew up on a Buena Vista County farm and joined Buck Stalcup in 1955. Arne retired in 1999 and he and his wife Marianne moved to Waverly, Iowa to be closer to family.
The new and much-anticipated Agricultural Act of 2014, aka “the Farm Bill”, was signed into law by President Obama on February 7th. This farm bill contains a considerable amount of change from previous farm bills, probably the biggest changes to the Commodity Title since the 1995 bill which introduced “Freedom to Farm”, which untied base acres and actual production. Changes include less spending in the Commodity Title, Conservation, Nutrition, and an increased spending to Research, Energy, Specialty Crops, and mostly to Crop Insurance. This bill is projected to save $16.6 billion over ten years, plus an additional $6.4 billion via sequestration, according to the Congressional Budget Office.
Herald Hamann, daughter Peggy Adams, and her husband Jerry decided to change farm managers in 2008 on Herald’s Woodbury County farmland. After interviewing three farm management companies, they decided to hire Stalcup Ag Service. Herald said, “Making the choice to engage Stalcup Ag as our manager was clear after we met Rex Wilcox (farm manager) in St. Louis.”