Starting with the USDA crop report on June 30, 2010, grain markets have moved mostly higher, peaking in early June on weather related planting delays. Since then, global financial concerns and a surprising (and somewhat suspect) USDA acreage report estimating higher corn acres to be harvested this fall have taken the markets off their highs. We are still at very high historical price levels, however, with prices at the time of this writing for fall 2011 delivery in the mid $6.00 per bushel range for corn and the over $13.00 per bushel range for soybeans. Moreover, bids offered for fall 2012 are also near those levels. These prices are critical as it will determine how to structure farm leases going into 2012.
Our Spring newsletter discussed the land market moving substantially higher last winter. The land market through this spring and early summer has continued to move higher, perhaps at an even faster rate. There has been no shortage of land offered for sale; in fact, it appears safe to say that the amount of land offered for sale during the past nine months is as high as it was during 2007 and 2008. However, the land market is local, and in any given township there are still only a few open-market transactions per year. We’ve noted a higher than normal percentage of privatelynegotiated landlord-to-long-term tenant sales as well. Farmers are buying probably 75% of the sales. Investors are also strong in the market. “Fund” buyers are not prevalent in our area but are more active in other parts of the country
Flooding on the Missouri River has been well documented by local news outlets, perhaps not as well from a national standpoint. Stalcup Ag Service manages a number of farms on the Missouri River “bottoms” as they are known. Managing farms in this region is a different challenge compared to other areas. However, this year presents a challenge we have not seen before.
Variable best describes the weather we have seen during the first half of the 2011 growing season. Cool and wet conditions prevailed in April, and while some tillage and fertilization was completed, very little corn was planted. Starting in early May we were fortunate to get a ten day window of warm, dry weather, during which virtually all the corn and a good portion of the soybeans were able to be planted into good soil conditions. Wet weather took over again, delaying the last half of soybean planting in many areas until late May or early June. After good weather in early June, heavy rains moved in again in the last half of the month, making late corn fertilizer and herbicide applications a challenge.
Chad Husman joined the Stalcup staff in May 2011 to meet a steadily growing business and add to our ag technology knowledge and ability. Chad has an excellent background of education and experience: raised on and helped operate a grain and livestock farm, an agronomy degree from Northwest Missouri State, and a lead position as a Precision Ag Specialist with a large retail farm input organization.