Monthly Archives: April 2012

Ending Stocks Steady for Corn, Shrinking for Soybeans (4/10/12)

Chad Hart , ISU Extension Grain Marketing Specialist, provides a summary of the March 9th report from USDA.

Given the earlier Grain Stocks report, the trade had anticipated lower corn ending stocks and steady soybean ending stocks.  It got that general pattern, but the crops were switched.  All of the corn numbers were held steady in this update with feed demand at 4.6 billion bushels, ethanol at 5 billion, and exports at 1.7 billion.  2011/12 ending stocks remain at 801 million bushels.  The season-average price range was tightened by 10 cents on each end, leaving the midpoint at $6.20 per bushel.  In their write-up, USDA noted that weekly ethanol production data has been on the decline through 2012 and corn feed demand through the 1st half of the marketing year was nearly 240 million bushels lighter than last year.  With the prospects of larger corn and wheat crops this summer and fall, the feed outlook remains weak.

Soybean demand was boosted both domestically and internationally.  Domestic crush demand was raised 15 million bushels as soybean meal demand via feed and soybean oil demand via biodiesel has been stronger.  Export demand was also raised 15 million bushels as the South American crop continues to shrink.  After some slight adjustments to seed and residual use, 2011/12 ending stocks are projected at 250 million bushels, down 25 million from last month.  USDA also boosted and tightened its season-average price range, putting the mid-point at $12.25 per bushel, up 25 cents from last month.

Ag Decision Maker (AgDM)

An agricultural economics and business web site.

Early Planted Acres May Lose Replant Insurance

Contributed by William Edwards, extension economist

Unusually warm and dry weather has allowed crop producers to start spring field work earlier than can be remembered by most people.  Getting an early start on tillage and planting reduces the risk of getting behind schedule later if an extended period of rainy weather occurs, but it also has its risks.  The Risk Management Agency (USDA) has some specific rules about early planted crops with regard to crop insurance coverage.  For each insurable crop RMA has set an “early planting date.”  The earliest planting dates allowed for counties in the state of Iowa are April 11 for corn and April 21 for soybeans.  Dates will vary in other states, and by county within a state.

Acres planted before these dates are no longer eligible for replant coverage payments should it be necessary to replant them.  The maximum replant payments each year are equal to 8 bushels of corn and 3 bushels of soybeans, times the RMA projected price for that year, which is the price used to establish the value of the insurance guarantees that the producer  purchases.  For 2012 the projected prices are $5.68 per bushel for corn and $12.55 for soybeans, so the maximum replant payments are $45.44 and $37.65 per acre, respectively.

Any acres that are planted  before the earliest planting dates lose replant coverage, even if the entire farm or insurance unit has not been planted.  However, early planting does not affect a producer’s normal yield or revenue insurance guarantee.  That guarantee is still in effect, and any indemnity payments will depend on the final harvested yield.  Normal good management practices must still be followed, included replanting of crops if the potential yield increase is enough to offset the costs of replanting.

Records should be kept of when all acres are planted.  Check with your local crop insurance agent for questions.

Ag Decision Maker (AgDM)

An agricultural economics and business web site.