Farm Credit Services of America

As the cost to carry inventory increases, many in the supply chain are less willing to foot the bill. Our analysts at Terrain look at what this means for producers. https://lnkd.in/gUtvwd-J

Producers and farm managers make important decisions every day. While good decision making is always important, it is essential as margins tighten and profitability depends on strong financial management. This is a good time to revisit a conversation we had with ag economist David Widmar about how producers can assess the quality of those decisions. He shared the following. ⬇ The best farm managers separate skill from luck to avoid confusing outcomes with the quality of their decisions. Widmar recounted his own decision to speculate on some options, based on his assessment that USDA yield projections were too high. But the following month, rather than drop, yield projections were even higher. Still, Widmar said, when he sold his position 10 days later, he made a profit. “I can start thinking of myself as a pretty good grain marketer if I get my bad decisions confused with good outcomes because I got lucky,” he said. Widmar said producers need to think strategically about their business to improve decision-making. This includes pursuing opportunities with discipline. While a combine might be for sale at a good price, buying it is a bad decision if you actually need a tractor. Good opportunities are those that fit or fill a need in your operation. He suggests asking yourself the following questions when assessing an opportunity: ✔ What investments do I need to make in my operation? ✔ Is now a good time to make these investments? ✔ Is this a “good deal” or does it meet one of my needs? Once the assessment is complete, it is time to act, because sometimes no decision has the same impact as a bad decision.

Our latest benchmark farmland values report is out. Land values made modest gains in Nebraska, South Dakota and Wyoming, with each state experiencing increases in cropland and pasture. Iowa generally serves as a leading indicator for real estate trends and saw values decline for the first time in five years. Even so, Iowa’s benchmark values are up nearly 60% since 2019. Link to full report is available in the comments.

The July WASDE was bullish for corn, neutral for soybeans and bearish for wheat. Our economist Matt Erickson shares an outlook for each commodity along with a storage and basis analysis for producers. https://lnkd.in/gMf-264a

Our team is at the National Pork Industry Conference this week, speaking with pork producers and others in the industry.   Teammates Chris Ford and Matt Erickson shared their expertise on Monday – discussing the financial health of the industry and economic factors to watch for in 2024, respectively.

We joined Nebraska beef producers and other donors to mark the completion of University of Nebraska-Lincoln's feedlot innovation center – one of the largest research feedlots in the world. We’re proud to support this science-driven facility that will help innovate for a more sustainable beef industry while supporting local ag education.

Our summer interns gathered in Omaha last week and participated in a group volunteer outing with three local nonprofits – Nebraska Diaper Bank, Access Period and Whispering Roots. While volunteering, they packed: ✔ 18,000 diapers ✔ 175 three-month period packs ✔ More than 1,200 containers of soup Volunteering is one of many ways we serve the communities we and our customer-owners call home. We’re proud to include such an impactful event as part of our summer internship program.

We stand in solidarity with the communities impacted by recent flooding. As we continue to monitor and evaluate this evolving situation, we’re committed to actively supporting affected communities as part of our overall community giving activity. Our thoughts are with everyone during this challenging time.

The first year Sue and Terry connected precision data to their crop insurance, they appreciated the convenience. With each subsequent year, they have seen the benefit of applying their data from the field to their policy. Their insurance officer, Chad Loecke, pulls data from his customers’ monitors after they finish planting and again after harvest. From the monitors, he gets the plant date, crop type and number of acres planted. These aren’t government acres that producers have submitted at their FSA office, Loecke said. “These are actual acres that they have planted in the field and that they feel are a much more accurate number.” “It reduces their premium in the short run. This might not be a big number because generally you’re decreasing your acres by 5-10 acres. But for some producers that can be a very big number. The bigger thing is when you are insuring fewer acres against higher production. That gives you a higher production number per acre, so the producer is insuring more bushels and getting to insure more revenue dollars per acre.” Link to full story in the comments.

More than 100 nonprofit organizations received funding through our Working Here Fund grant program in Q1 of 2024. These grants support agriculture and rural communities by helping fund projects and purchases like greenhouses, rescue equipment, food pantries and agriculture education materials. To view a full list of recipients or learn more about our grant program, visit our website. https://lnkd.in/gtN_tYEy