Purdue Commercial AgCast

Making Your 2021 Crop Insurance Decisions

Crop insurance is an important aspect of nearly every corn and soybean farm’s risk management program. There are some new choices to consider this year, including the Extended Coverage Option (ECO). This episode is a great opportunity for producers to review their crop insurance alternatives as Purdue University Center for Commercial Agriculture's ag economists Michael Langemeier and James Mintert walk participants through considerations for their 2021 choices. Download companion slides or a video recording at https://purdue.ag/webinar030121.

Crop Insurance Tools discussed in the episode can be found at the University of Illinois' Farmdoc website - https://farmdoc.illinois.edu/crop-insurance. 

Ag Barometer Insight: February 2021 Survey

February's Ag Economy Barometer changed very little compared to January, down 2 points to a reading of 165. Ongoing strength in ag commodity prices and farm income continue to support producers’ perspective on current conditions while concerns about possible policy changes affecting agriculture and eroding confidence in future growth in ag trade continue to weigh on producers’ future expectations. This month’s survey was conducted from February 15-19, 2021. Purdue ag economists James Mintert and Michael Langemeier review the results and give some insight into the February 2021 Ag Economy Barometer survey, a nationwide monthly survey of 400 ag producers. The full report is available at https://purdue.ag/agbarometer.

Farm Succession: Business Entities

Choosing a business entity is a key aspect in liability, taxation, capitalization, decision making, agricultural government payments, and transfer options for all farm businesses. When it comes time to transition your farm business to the next generation, whether your farm is set up as a sole proprietor, partnership, corporation, or LLC, how your business is structured will affect many aspects. Deciding on a business entity requires much thought and advice. In this episode, our seventh in our Farm Transition Planning series, Purdue ag economist Brady Brewer and members of the Purdue Farm Transition team Kelly Heckaman and Ed Farris discuss the impact of business structure in farm succession planning and give examples where it’s important to have structures in place that fit for your business. Find the rest of this series at http://purdue.ag/2OYomxd and more information on farm succession planning on the Purdue Institute for Family Business’ YouTube channel.

Understanding the Five C's of Credit

Purdue University agricultural economist Brady Brewer is joined by Purdue agricultural economist Michael Langemeier to discuss credit underwriting and the criteria financial institutions use to determine eligibility of an applicant. Character, capital, capacity, collateral, and conditions are the five Cs of credit used in credit underwriting. These metrics are used for credit ratings to quantify and decide eligibility, interest rates and credit limits of borrowers. This episode focuses on what credit analyst means for farmers, how each of the 5 Cs are measured, and how farms can use this information for their gain and to manage risk.

February Corn & Soybean Outlook Update

Purdue ag economists Michael Langemeier, Nathanael Thompson and James Mintert discussed USDA’s February Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports. Tight U.S. crop supplies combined with concerns about the South American harvest and prospects for big acreage swings are all on ag producers’ minds. The Purdue team reviewed updated information from USDA and other sources and discussed strategies to consider for 2021. Find more information on the current crop outlook and farm economy by visiting the Purdue Center for Commercial Agriculture's website at https://purdue.ag/webinar021021.

Ag Barometer Insight: January 2021 Survey

The Ag Economy Barometer drifted lower in January to a reading of 167, a decline of 7 points compared to December and equal to the index’s November reading. The barometer’s decline over the last three months is all attributable to weaker expectations for the future as the Index of Future Expectations has fallen 35 points or about 19 percent since October. This month’s survey was conducted from January 18-22, 2021. Purdue ag economists James Mintert and Michael Langemeier review the results and give some insight into the January 2020 Ag Economy Barometer survey, a nationwide monthly survey of 400 ag producers. The full report is available at https://purdue.ag/agbarometer.

Farm Succession: Business Governance for Transition Planning

Adding on to our series about Farm Transition Planning, in this sixth episode, we focus on the importance of governance in a farm business. Having policies on who's in power, how decisions are made, and how to hold accountability among team members (especially when it comes to family) makes running a farm business easier. Purdue agricultural economists Brady Brewer and members of the Purdue Farm Transition team Renee Wiatt and Dr. Maria Marshall discuss the impact of governance in farm transition planning and give examples of decisions where it's important to have policies in place (in-laws, prenuptial, social media, employment and compensation). Find the rest of the episodes in this series at https://purdue.ag/3a5jXQb and more information on farm succession planning on the Purdue Institute for Family Business' YouTube channel.

2021 Farm Bill Decisions for Crop Producers

Crop producers need to make their 2021 farm program choices at their local Farm Service Agency (FSA) office (or online) by March 15, 2021. Producers have the option of choosing either the Agriculture Risk Coverage (ARC) or the Price Loss Coverage (PLC) program. Purdue agricultural economists Michael Langemeier and James Mintert review how the most commonly chosen program options during the last sign-up period played out for the 2019 crop and are likely to play out for the 2020 crop. They conclude with a discussion about how to go about making your 2021 program elections. Find the accompanying pdf document of this discussion at http://purdue.ag/2021farmbilldecisions.

January Corn & Soybean Outlook Update

Purdue ag economists Michael Langemeier, Nathanael Thompson and James Mintert discussed United States Department of Agriculture’s (USDA) January Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports. The Purdue team reviewed information released in the USDA reports and looked at what the year ahead may have in store during the webinar. Carryover corn and soybean supplies have tightened considerably, and concerns exist regarding the size of South America's harvest. Find more information on the current crop outlook and farm economy by visiting the Purdue Center for Commercial Agriculture's website at https://purdue.ag/webinar011321.

Ag Barometer Insight: December 2020 Survey

Farmer sentiment improved modestly in December as the Purdue University-CME Group Ag Economy Barometer rose to a reading of 174, up 7 points from November. Both of the barometer’s sub-indices, the Index of Current Conditions and the Index of Future Expectations, were higher in December than in November although the current conditions improvement was three-times the size of the future expectations increase. Purdue ag economists James Mintert and Michael Langemeier review the results and give some insight into the December 2020 Ag Economy Barometer survey, a nationwide monthly survey of 400 ag producers. The full report is available at https://purdue.ag/agbarometer.