Farmland Barometer Home » Farmland Barometer January 2011 » Outlook 2011
The upcoming year has some special bright spots in it for all. Lets take a quick look:
Grain Prices - With $5.00 to $6.00 corn and $12.00 to $14.00 soybeans your net farm income prospects are exciting. Project a 200 bushel per acre corn yield - - and income goes over $1,000 per acre!
Weather - A dry fall allowed deep tillage to remove compaction problems. Late season rain fall and early winter snows (poor man's fertilizer) and freezing temperatures are recharging the ground for an excellent chance at above average yields.
Ethanol - The extension of the blenders tax credit in the year-end congressional tax package gives ethanol a boost - - we will use 35% of the corn crop for ethanol. And it's competitive with world oil prices.
U.S. Dollar - Our currency continues to be weak worldwide which supports agricultural exports and drives our Agricultural sector higher.
Livestock - With $80.00 hogs and $110.00 cattle - - livestock continues to be profitable. They consume a lot of our grain.
Conservation Reserve Acres - Be careful - - there are nearly 40 million acres in the Conservation Reserve Program. If food price inflation threatens - - the government could allow lots of CRP acres to be planted to crops.
Rationing - Worldwide demand is so intense that commodity prices will have to get high enough to ration demand (not enough crop to go around). It takes $7.00 corn to ration ethanol! We should enjoy some exceptionally high prices this year.
2011 Winter Farmland Barometer
Take this issue of the Farmland Barometer with you by downlaoding the complete document here.
2010 Spring Farmland Barometer
Take this issue of the Farmland Barometer with you by downlaoding the complete document here.