Wheat

Corn Acres Top 95 Million, But There's a Silver Lining in USDA's March Acreage Report

Mon, 31 Mar 2025 18:05:59 GMT

USDA’s first survey-based acreage report of the year confirmed one thing: U.S. farmers plan to plant considerably morn corn acres than they did in 2024. But even with corn acres coming in above 95 million, and nearly 1 million acres more than what the trade anticipated, the corn market seemed unfazed by the news.

USDA’s March Prospective Plantings report estimates U.S. farmers will plant:

95.3 million acres of corn, up 5% from 2024
83.5 million acres of soybeans, down 4% from last year
45.4 million acres of wheat, down 2% from 2024
9.87 million acres of cotton in 2025, down 12%.

Total corn and soybean acres in the March report equal 178.8 million, which is up 1.1 million from a year ago.

The corn acreage came in above the average trade guess, which was 94.361 million, but the USDA survey results were below the soybean prereport estimates, which was 83.76 million acres. Why weren’t traders more surprised by USDA’s large acreage number for corn?

“I think it’s probably because there was also the expectation that no matter how high the number on corn plantings that it would be the smallest number of the year on corn plantings,” says Chip Flory, host of “AgriTalk” and Farm Journal’s economist. “So, the trade was leaning up on the corn number, but don’t rule out it having a negative impact by the end of the day.”

Ben Brown, an extension agricultural economist at the University of Missouri , says even though 95.3 million is above the average trade guess, it’s not as high as what some expected.

“There have been whispers that managed money traders were anticipating a number in the upper 95s or even 96-million-acre range for corn,” says Brown. “Those whispers pushed new corn down 9 cents per bushel last week and new crop soybeans up 22 cents per bushel. If true, today’s planting intentions report would have been disappointing to them and trigger a reversal of last week’s movement. It is still a relatively large corn acreage number.”

According to USDA’s report, total corn acreage is expected to be up 5%, with some of the biggest increases coming in the South.

Arkansas: Up 42%
Mississippi: Up 41%
Tennessee: Up 29%

“Iowa was the biggest amongst the I-States at over a half a million acres higher,” AgMarket.net’s Matt Bennett told AgDay’s Michelle Rook . “That’s no surprise. As I’ve been in Iowa several times this winter. I’ve heard over and over that they’re going to be heavy corn growers have told me that personally that it just didn’t work for them to plant soybeans. Then, if you add up Illinois, Indiana and Iowa, you’re over 1.1 million acres of additional corn.”

Bennett says the entire Midwest is seeing higher corn acres in 2025, as well.

“I understand that profit margins are still raised or thin. It’s just that we all know that U.S. growers love to plant corn first of all, and second of all, with $10 cash beans for the bids for beans, t that was a big factor for a lot of these folks,” Bennett added in his interview with Rook.

Shift in Acreage and Potential Impact on Yield
If farmers want to search for something positive in USDA showing such a large number of acres being planted in corn this year, Flory says you don’t have to go far. And that’s the fact that some of the large acreage shifts are coming in the fringe acres, which could bring down the national average yield on corn.

“The movement of acres from cotton and spring wheat to corn should make it tough to get to the 181 bu. per acre for a national average corn yield that USDA currently has penciled in,” Flory says.

If you dig into the details of USDA’s acreage report, and look at where the acres went, the 2025 principal crops planted acreage number fell in the Plains, but corn acres actually increased in some of those states.

“We haven’t hit the USDA trend line yield the last seven years causing many to wonder if the trend has changed and drawing the ire of many producers, so, the 181 bu. per acre number is already under question,” says Brown. “However, where corn increases matters. Of states with an average yield over 181 bushels per acre, which is 14, 13 of them had an increase in corn acreage relative to 2024. One could thus then make the case- we have increase corn acreage in states with state wide yield averages better than 181 bu. per acre.”

Soybean Acres Slip

The pretrade estimates were wide for corn, ranging from above 96 million to below 93 million. For soybeans, the range was 82.5 million to 85.5 million. USDA’s actual report number came in at 83.5 million, which was only 1 million acres higher than the lowest trade estimate. So, why did the soybean market trend lower after the report? Flory says it’s the opposite of corn.

“There was an attitude that the bean number would be the biggest we see this year, so the trade was leaning down on the bean number,” Flory explains.

Biggest Surprises Out of USDA’s Reports
The fact that the March 31 reports included Prospective Plantings and World Agricultural Supply and Demand Estimates (WASDE) means the markets have a lot of information to digest. But what are the biggest surprises?

Here’s Flory’s list:

That the market surveys did a fantastic job of identifying the March 1 corn, soybean and wheat stocks. Wheat stocks are a touch heavy but not enough to make a difference.
Also, USDA printed a cotton plantings number below 10 million. “I think that’s important, even if the market doesn’t — wow,” Flory says.
Spring wheat at 10 million seedings is a bullish number.

For Brown, the biggest surprise wasn’t in acreage; it was the fact the March Grain Stocks report didn’t produce any shocks to the market.

“Maybe it’s adrenaline- but I was surprised the stocks report was as accurate as it was as it can be full of surprises especially for corn,” says Brown “However, corn came in spot on and the smallest surprise in the corn quarterly stocks since I started tracking in 2018/2019. Beans and wheat were also relatively small surprises.”

Brown says the total prospective acreage number wasn’t really a surprise, but he does question if U.S. farmers will hit that total this year.

“I just don’t know if producers will break their necks to plant everything this year,” says Brown.

Brown also points out sorghum was able to increase acreage in 2025 vs 2024 by 265,000 acres.

“Sorghum prices have been relatively weak compared to corn- but it is dry in Kansas and that could incentivize people to plant more of crops that do better in dry conditions,” says Brown.

Your Next Read:
Where Did the Acreage Shifts Come From and What Does it Mean for Prices?

EXCLUSIVE: Ag Secretary Brooke Rollins Provides Timing Update on $10 Billion in Emergency Relief Payments

Thu, 27 Feb 2025 16:36:23 GMT

Time is running out for USDA to issue the nearly $10 billion of economic relief payments to farmers . Congress approved a 90-day window to release those payments, and in an exclusive interview with U.S. Secretary of Agriculture Brooke Rollins Thursday morning, we asked when exactly those payments will be released. Rollins confirmed to Farm Journal that those payments will be released before the current deadline.

“Congress gave us until March 21, that is the ideal deadline,” Rollins said. “It looks like we’re going to be able to beat that, so it should be just around the corner.”

As USDA works to release those payments within the next few weeks, according to some sources, producers are banking on the payments, even making business decisions based on projected payment calculations.

Pro Farmer Washington policy analyst Jim Wiesemeyer says the only issue that could impact that timing is a possible government shutdown. If the government shuts down beginning March 15, and those payments haven’t been released yet, that could impact the March 21 deadline.

Wiesemeyer also reports based on history, the initial payment will likely be around 85% of the projected total, with a supplemental payment likely coming in the summer. Most expect the per acre payment rates to be in line with what staffers on the House Ag Committee released last year, which are:

Corn: $43.80
Soybeans: $30.61
Wheat: $31.80
Cotton: $84.70
Rice: $71.37

Payment Cap
Like other recent disaster programs, the payment limit for farmers will depend on how much of a farmer’s income is derived from agriculture. However, this program is based on average gross income rather than adjusted gross income (AGI).

The payment cap will be:

If < 75% of average gross income from 2020 to 2022 is from agriculture, then the limit is $125,000
If 75% or more of average gross income from 2020 to 2022 is from agriculture, then the limit is $250,000
USDA says standard FSA “actively engaged in farming” requirements apply

While USDA will determine the finalized per acre payments, these are the estimated American Relief Act payments for farmers.

(Lindsey Pound )

Update on Timing of $1 Billion to Combat Avian Flu
Led by Rollins, USDA announced on Wednesday plans to invest up to $1 billion in new funding to combat impacts of highly pathogenic avian influenza (HPAI) and soaring egg prices.

“The important piece is not just this immediate short-term goal of getting the cost of eggs down and repopulating our layers and locking our barns down,” Rollins told Farm Journal on Thursday. “But much more importantly, perhaps, is figuring this out for the long term, so we’re not having the same conversation over and over and over again.”

The avian flu plan, which USDA rolled out on Wednesday, includes five major points:

Dedicate up to $500 million to help U.S. poultry producers implement “gold-standard” biosecurity measures. USDA has developed a successful pilot program, called Wildlife Biosecurity Assessments, to identify and implement more safety measures. USDA will pay up to 75% of the cost to address any identified biosecurity vulnerabilities at poultry farms.
Make up to $400 million of increased financial relief available to farmers whose flocks are affected by avian flu, and USDA will assist farmers in receiving faster approval to begin safe operations again after an outbreak.
USDA is exploring the use of vaccines and therapeutics for laying chickens. While vaccines aren’t a stand-alone solution, they will provide up to $100 million in research and development of vaccines and therapeutics, to improve their efficacy and efficiency. This should help reduce the need to depopulate flocks, which means killing chickens on a farm where there’s an outbreak. Note: USDA hasn’t yet authorized the use of a vaccine. Before making a determination, USDA will consult state leaders, poultry and dairy farmers, and public-health professionals. The agency will also work with trading partners to minimize potential negative trade effects for U.S. producers and to assess public-health concerns.
USDA will take other actions to lower the price of eggs. For starters, it will remove unnecessary regulatory burdens on egg producers where possible. This will include examining the best way to protect farmers from overly prescriptive state laws, such as California’s Proposition 12, which established minimum space requirements for egg-laying hens.
USDA will consider temporary import options to reduce egg costs in the short term. They will proceed with imports only if the eggs meet stringent U.S. safety standards and if they determine that doing so won’t jeopardize American farmers’ access to markets in the future.

As for the $500 million that will go toward beefing up biosecurity efforts, Rollins says that will happen immediately.

“The team is putting together right now the guardrails for that, but I think they’re almost finished, and that money should be moving out very quickly,” Rollins told Farm Journal. “That biosecurity money is based on a pilot program where 150 different egg laying farms were piloted on specific biosecurity measures. Of those 150, only one has seen the avian flu. Once they implemented, there’s a massive audit that USDA comes in. They help audit. We’re hiring a whole bunch of new folks to come on board to do that — and new epidemiologists to help us work through all of the science on this, and hopefully you see that immediately.”

Where is the $1 Billion Coming From?
At a time when the Trump administration is looking to save money, not spend, we asked Rollins where exactly is the $1 billion of funds going to be sourced.

“We’ve repurposed funds from other programs within USDA, so this is not spending new money,” Rollins said. “Clearly, we’re in an era where President Trump’s vision is to really streamline government, but this is not that. This is outside that lane. This is a really, really important issue. You know, it’s affecting every single American, not just our poultry producers. And so there’s short-term and long-term fixes here now.”

Some of that money, however, is coming from savings from the Department of Government Efficiency (DOGE).

“We are pulling it from multiple different pots. But yes, there’s no doubt that we’ve been able to find some serious savings in DOGE,” Rollins said. “We’ve canceled almost a thousand DEI trainings that were across USDA.... All of it adds up, and we’ve really pulled a lot of that money back. And now putting it where we think it really helps farmers and ranchers.”

What Will It Take for the Ag Economy to Recover

Rollins is set to give the keynote address at USDA’s Ag Outlook Forum on Friday. Rollins told Farm Journal there are a lot of farmers hurting in this economy, saying “it’s one of the worst for that industry that we’ve seen in decades.”

Considering 64% of ag economists think the row crop sector of agriculture is in a recession , we asked Rollins what it will take for the ag economy to recover.

“There’s no doubt, to your point, a lot of our producers in the different lanes are really hurting. Listen, we’ve got to get the cost of input down. We have got to get our export markets opened up around the world. I mean, we’re facing this year a $45 billion trade deficit,” said Rollins.

Rollins says when President Trump left the White House in 2020, there wasn’t a trade deficit. And she says the growign trade deficit is something President Trump wants to address.

“Just think about the amount of ag production that we were once moving out across the world that was keeping our farmers whole and making sure that they could make some kind of a profit,” said Rollins. “That’s not there anymore. Obviously, inflation, the cost of energy has absolutely decimated our producers. The input cost is up 30%. So when you’ve got all of these different factors that are basically piling on at one time, it’s it’s no surprise that sorghum, cotton and so many others are really hurting right now. And we’ve got to do something about that.”

As input prices remain elevated, and commodity prices are below break-even for some, Rollins says she and President Trump are aligned in what needs to happen to bring relief to farmers.

“My perspective, and the president’s perspective, is how do we achieve this through broader access to markets, broader access to capital, making sure that that the cost of inputs goes down. Hopefully with our energy plan, we see that happening almost immediately. And I think that will move into a different era for prosperity for ag, but there’s no doubt it is a dire, dire forecast right now without significant change.”

During the the first Cabinet meeting in President Trump’s second-term, which was held Wednesday, President Trump floated 25% tariffs on the European Union.

“Obviously, tariffs always come up. I’m always saying, ‘let’s be very, very careful and intentional how we move here,’” Rollins said about the first Cabinet meeting. “The border came up, immigration deportations came up. So all the things that the ag community is concerned about that came up, course, I’m at the table. My job is to ensure that that our community’s voice is heard, but also to help effectuate the president’s vision. And we’re moving forward on all fronts.”

You can listen to the complete interview with Secretary Rollins below.

Your Next Read:
EXCLUSIVE: As DOGE Works to Stop ‘Wasteful Spending,’ Ag Secretary Rollins Says Vital Farm Programs Aren’t at Risk

Congress Approves CR, Includes $31 Billion in Farmer, Disaster Aid and Farm Bill Extension

Mon, 23 Dec 2024 16:50:13 GMT

With little if any drama like the House, the Senate easily cleared the 118-page continuing resolution (CR) early Saturday morning with a vote of 85-11 (four members did not vote). The measure funds the government through March 14. The CR includes nearly $110 billion in disaster and farmer aid ($21 billion ag disaster and $10 billion in farmer aid), and a one-year extension of the 2018 Farm Bill.

The Senate vote came hours after the House passed the measure on a 366-34 vote, well above the two-thirds majority threshold required under that chamber’s suspension of the rules procedure, with no Democrats voting no along with 34 Republicans. Texas Dem Rep. Jasmine Crockett voted “present”.

Debt Ceiling

GOP leaders dropped a two-year suspension of the statutory debt ceiling that was in a previous CR version and that helped push the bill through both chambers. Democrats opposed inclusion of the debt limit provision, arguing it would make it easier on Republicans next year to cut taxes and ram through other partisan priorities. Cutting the debt limit language was enough to convince Democrats to go along with the stripped-down bill, even though it excluded their priorities contained in an i nitial 1,547-page bipartisan measure .

One ag sector lobbyist said, “Ag groups need to start playing the game… those who always vote no on everything… why not actively oppose them… they don’t support farm bills anyhow.”

Breaking Down the Votes

Here is the list of House Republicans who voted no on the CR that contained $31 billion in ag sector assistance:

House no votes on CR

(House of Representatives)

Some notable representatives who voted against the CR include Nancy Mace (South Carolina), Thomas Massie (Kentucky), and Chip Roy (Texas). The reasons for voting against the CR varied among representatives, with some citing concerns about high levels of spending, lack of reforms, or opposition to giving the current administration additional funding.

Here is the list of Senate Democrats who voted no:

Senate no votes on CR

(U.S. Senate)

Farmer Aid in the CR

This is a breakdown of the $31 billion in farmer assistance via the CR:

Farmer aid breakdown

(House Ag Committee)

Possible Payment Amounts to Farmers

The farmer aid should be available 90 days after the legislation’s enactment. Farm CPA Paul Neiffer estimated per acre payment amounts via the Economic Loss Assistance program based on his knowledge of the provisions.

Possible payments as calculated by Farm CPA Paul Neiffer

(Lindsey Pound )

While USDA will make the final calculations, based on Neiffer’s estimates, producer payments look like this per acre, using the following calculation: (USDA’s Projected Cost of the Crop – National Projected Returns) x Eligible Acres x 26% = Total Payment.

Corn: $43.80
Soybeans: $30.61
Wheat: $31.80
Cotton: $84.70
Rice: $69.66

Neiffer says there is a payment limit of $125,000 dollars, which is down from the $175,00 originally proposed in the FARM Act. He says it’s also key to note with the updated relief, if 75% of your total gross income comes from farming, which includes wages and interest and dividends, then you qualify for the double payment.

Related Story: Poll Results: 71% of Farmers Say Congress Should Approve Economic Aid Before Year-End

House Ag Committee Fact Sheet Details Payments

The House Ag Committee released a fact sheet on the farmer economic assistance that is provided in the current Continuing Resolution (CR), modeled off of Rep. Trent Kelly’s (R-Miss.) FARM Act (HR 10045). There is a list of eligible commodities, a payment formula, administrative provisions, and estimated payment rates.

House Ag panel staffers say please keep in mind that the payment rates in this document are estimates and “almost certain to change slightly once implemented. These rates are the best approximation based on the data cited in text. This does incorporate the minimum payment rate provision. You’ll see that those crops receiving payments via the minimum payment provision have an asterisk.”

The House Ag panel had the Agricultural and Food Policy Center at Texas A&M analyze the impact of the economic assistance provided through this provision. Their findings suggest that the funds will improve ending cash position on their Representative Farm system by nearly 20% by the end of 2025.

Farmer aid

(House Ag Committee)

Your Next Reads:

Poll Results: 71% of Farmers Say Congress Should Approve Economic Aid Before Year-End

Ag Gets Potential Christmas Gift from Congress: Continuing Resolution Includes $31 Billion in Aid for Producers

What Impact Will Tariffs Have on Ag Markets and the Broader Economy?

Mon, 02 Dec 2024 17:23:00 GMT

President-elect Trump has threatened to place 25% import tariffs on Mexico and Canada and 10%a additional tariffs on China on day one of his second term.

What will this mean for the agricultural markets?

Jim McCormick with AgMarket.Net says Mexico, Canada and China are the top three export customers of the U.S. and account for 40% of total exports.

Mexico has already threatened retaliation, so another trade fight will be devastating for agricultural markets.

McCormick says during the trade war in 2017-18 prices for agricultural commodities, but especially soybeans, took a tumble due to retaliatory tariffs from China.

He says the agricultural markets have handled the threat well because of the flush of export demand for many ag products that the market is already seeing.

China has been front loading their purchases of U.S. soybeans and Mexico has been buying U.S. corn in anticipation of the tariffs starting after January 20.

Weekly exports on Friday were a marketing year high at 91.5 million bu. and China accounted for 40 million of that total.

Additionally on Friday morning private exporters reported flash soybean sales of 30.9 million bu. to unknown destinations and another 5.6 million bu. to unknown both for 2024-25.

Corn exports were at 41.8 million bu. for the week ending Nov. 21 and 16 million bu. went to Mexico.

Additionally, President-elect Donald Trump’s trade strategy, particularly his proposed tariffs on imports from Mexico, Canada and China, appears to be more of a negotiating tactic than a straightforward economic policy. Analysts interpret this approach as part of Trump’s broader strategy to leverage tariffs as tools for negotiation rather than strictly for trade regulation or economic improvement.

However, if a trade war were to happen McCormick says there could also be negative impacts for the broader economy as prices for all imported goods would rise for consumers.

Additionally, the U.S. imports a large amount of crude oil from Canada and so a 25% tariff could raise gas prices and the U.S. auto industry is reliant on imports of parts and autos from Mexico.

All this could drive inflation back up which is negative for consumers and businessses.

At a time when the FOMC is trying to cut interest rates a return of inflation could force the Fed to change course and maybe even raise interest rates.

USDA’s Latest Farm Income Data Looks Brighter Than Early 2024 Numbers

Thu, 12 Sep 2024 15:42:03 GMT

USDA–Economic Research Service (ERS) has released updated projections for 2024 farm income, and though it’s still anticipated to decline, the outlook doesn’t look quite as dim as it did earlier this year.

The new numbers show net cash farm income for the 2024 calendar year will fall $12 billion, which is about 7% down from 2023, and net farm income will fall $6.5 billion or 4.4%. This is compared to projections released in February of this year that suggested net farm income would fall 26%.

“There are a lot of factors going on here, but to me, the primary ones are that the revisions reflect expectations that animal and animal product cash receipts will increase while production expenses will fall,” says USDA–ERS economist Carrie Litkowski. “This is largely due to the incorporation of new data.

Litkowski shares the primary cause for the fall in 2024 farm income comes from commodity prices. Cash receipts or sales are expected to decrease by $27.7 billion. When combined with the inventory adjustment for crops, the value of crop production is forecast to decrease $25.6 billion from 2023. The largest decline comes from corn and soybeans, though wheat producers are expected to have a nearly 50% decline in average net cash farm income in 2024.

USDA ERS Row Crop Cash Receipt Projections 9-5-24

(USDA ERS)

But it’s not all bad news for crop farmers. Fertilizer expenses are expected to fall almost 10%.

Better News in Livestock
The outlook for livestock producers is more positive. Total animal and animal product recipes are expected to increase by $17.8 billion, or 7.1%, with the main driver coming from egg prices.

“Receipts for eggs are perhaps the biggest story here, in that they are forecast to see the largest increase in 2024 at 35%, or about $6 billion. Eggs alone account for a little more than half of the total increase in animal and animal product receipts,” Litkowski says. “Back in February, we did not anticipate that egg prices were going to increase as much as they have. That’s due to supply restraints we’re seeing due to the avian flu.”

Dairy farm businesses can expect to see the largest increase in average net farm income at 47.2%. Litkowski attributes this to higher milk receipts and lower expenses in 2024.

Farm businesses specializing in hogs are forecast to have an 11% increase but remain low relative to prior years. Beef farm businesses are projected at a 9.7% increase and poultry will see an 11.7% increase.

USDA ERS Livestock Cash Receipt Projections 9-5-24

(USDA ERS)

These operations should see big savings in feed as well, with an anticipated decline of 12%.

Geographic Breakdown
Looking at the data by region, six of USDA’s nine regions will see lower average net cash farm income. Farmers in the heartland states will be hit the hardest with a 23% decline.

Income increases are forecast for producers in the northern crescent and fruitful rim regions — between 1% and 4%. Litkowski says this is where many dairy farms are located and can be attributed to the expectations for higher dairy receipts and lower expenses.

“Regional performance of farm businesses can vary considerably due to the strong geographic concentration of certain production specialties or average farm size,” she explains. “Across all farm businesses, average net cash farm income is forecast to decrease 9% from 2023 to 2024 in nominal dollars.”

USDA ERS Farm Income By Region 9-5-24

(USDA ERS)

Household Income Remains Unchanged
Total farm household income is projected to increase 1.7% in 2024 to $99,683. However, when inflation is taken into consideration, Litkowski says she categorizes it as “relatively unchanged”.

“1.7% is less than the expected rate of inflation in 2024, so it’s really more like a decline of 0.7% in real dollars,” she explains.

The Big Picture
While this year’s income projections may have producers concerned about their bottom line, USDA–ERS stresses the importance of looking at the numbers with the past 20 years in mind.

“The farm sector balance sheet is projected to remain strong,” Litkowski says. “Net farm income fell 22% from 2022 to 2023, and in 2024 net farm income is forecast to fall nearly 7%. Even with these expected declines, both sectors in 2024 are forecast to remain above their 20-year-average.”

USDA ERS Farm Income 20-year Average 9-5-24

(USDA ERS)

Click here for the full report.

Your Next Read: How Do You Know When Agriculture Is In A Recession?

Drought No More, Farmers Watch Western Kansas Corn Fields Get Hammered by Hail

Wed, 09 Aug 2023 21:58:49 GMT

What’s often called the “white combine” is hammering western Kansas this year, an ugly reality for an area that’s finally receiving rain after nearly five years of drought.

The hail has been widespread, but the severity varies field to field. Oakley, Kan., which sits southeast of Colby, seems to be a bull’s-eye for the hail. Sharon Springs, which is almost to the Colorado border, has also been hit hard by the severe weather.

Whitney Larson , who farms with her husband around Sharon Springs, says prayers were answered this spring when the rains started to fall, but the essential moisture is bringing other challenges.

“We had been in a catastrophic drought for five years,” Larson says. “Seeing rain has been a reminder that our faith finally paid off. We started seeing some rains in March and April, and it’s continued since then, but we did have some very bad hail three weeks ago and then again last night.”

(Farm Journal)

Not only did the area see severe hail Monday night, but it also hit again Tuesday night.

“It’s been disheartening in the fact that it killed some crops,” she says. “But as far as the rain goes, it’s been a very, very big blessing this year.”

Western Kansas farmers are used to dealing with the good with the bad. Drought, hail and even tornadoes this year, the weather is a constant battle.

“Three weeks ago, we had what they say was straight line winds, but it was definitely a tornado,” Larson says. “We have neighbors who live four miles east, and it took out their shop and barn; a 160-year-old concrete barn is now completely gone.”

The tornado flipped over pivots and other machinery in the area.

Hail has been a more common sight, and it even impacted the Larson’s wheat crop. With all the rain, harvest was extremely late this year. Normally, they would be heavy in wheat harvest the beginning of July. This year, they hadn’t even started harvesting in mid-July.

“We had some wheat get tennis ball-size hail and completely totaled it,” Larson says. “But a lot of our wheat actually yielded better than we thought, which was a big blessing. The rains also mean a lot of our area has struggled with weeds.”

Impact on Yields

Some fields hit with hail are already a total loss, while other fields have shredded leaves. According to Crop-Tech Consulting’s Isaac Ferrie, the yield impact will vary.

“In fields that hadn’t pollinated yet, the hail could cause pollination issues, which obviously affects yield potential,” he explains. “In corn that is already tasseled, that means the leaf growth on the plant is done. So, whatever is damaged will not regrow.”

If the plants with shredded leaves can stay alive, Ferrie says they can still benefit the plant to some degree versus plants with leaves that turn brown and die.

“With shredded leaves, the benefit can be limited,” he adds. “It really depends on how long after pollination the hail happened, if the ear is into grain fill, and if so, how far into grain fill. The further along the ear is into grain fill, the better the yields will be.”

Drought Story Differs Greatly Across Kansas

(Farm Journal)

According to the U.S. Drought Monitor, dry conditions still cover nearly 88% of the state, with nearly 30% in D3, or extreme drought. In central and southeastern Kansas, the corn crop is showing signs of drought stress. However, 12% of the state is drought-free, which includes where the Larsons farm.

Moderate or severe drought is prevailing through much of the Corn Belt and many areas of #Kansas, #Missouri and #Nebraska are experiencing extreme #drought. Learn more about extreme heat and Kansas farm income in the article: https://t.co/luqqXatSnI pic.twitter.com/eIiCtbOhRH
— K-State Agronomy (@KStateAgron) August 9, 2023

What was green Monday is not upon returning today. #HarvestIsComing pic.twitter.com/wHEug1FF3j
— Brian Sieker 🌾 (@SiekerSales) August 4, 2023

Brutal Blast of Cold Set to Bring Widespread Freeze to the Western Corn Belt and Plains

Wed, 19 Apr 2023 18:43:48 GMT

Meteorologists say much of the country should brace for freezing temperatures this weekend and into early next week. The late April blast of cold weather doesn’t pose a big risk for the corn already planted in fields, but there are growing concerns about the potential damage to winter wheat.

USDA meteorologist Brad Rippey thinks the freezing temperatures could drop as far south as Texas.

“We are going to be watching at the end of this week on into next week some cold air that’s been kind of pulled up over Alaska in western North America swinging southward,” says Rippey. “And by the time we get to this weekend and on into early next week, we can easily see sub-freezing temperatures all the way down into north Texas. So, that means everybody north of that, including the northwestern half of Oklahoma, much of Kansas, all those areas should experience freezes.”

Friday night expected Kansas freezing temps. 22-27F West. 30-35F C and E. pic.twitter.com/p7M3yKjIxp
— Allen Motew (@QTweather) April 19, 2023

Rippey points out winter wheat is already heading in some of those geographies, including southern Oklahoma and parts of Texas.

“So, that is a concern where you overlap some freezing temperatures and heading winter wheat, with the part of the crop that’s even still viable, could be harmed by sub-freezing temperatures over the next few days,” says Rippey. “And unfortunately, that pattern seems like it’s going to continue. Although I think in time as we head into late April and early May, some of that colder air may spill more into the Midwest than the Great Plains. But this initial shot will deliver freezes likely as far south as at least the northern panhandle of Texas.

Rippey says he’s not as concerned about the corn crop that’s already planted since the crop either hasn’t emerged or the crop is still young enough that the growing point is below the soil.

“I think soils are warm enough to help insulate that growing point at this early stage. And as you move to the far north where it’s going to be really cold, we don’t have any corn planted yet. So I think we’ll be okay with the summer crops at this early stage,” says Rippey.

Western Belt freezing temps Friday night. pic.twitter.com/mlVKk4LYNp
— Allen Motew (@QTweather) April 19, 2023

Drew Lerner of World Weather has been keeping an eye on this weather pattern for more than a week. He originally warned about the possibility for a crop-damaging freeze late last week, but also said it was too early to see just how widespread the cold would be.

His latest forecast is colder than NOAA’s, but he points out crops may not be far enough along in potential problem areas.

“NOAA’s map is too warm, though, frost and freezes will occur southward into northern Oklahoma, southern Missouri and parts of Kentucky with Saturday’s coolest in the central Plains and Sunday’s and Monday’s coolest in the Midwest and middle Atlantic Coast States respectively,” says Lerner.

“Wheat, rye and oats are heading in the south of Oklahoma while canola is flowering. We are not expecting much more than frost in those areas, but it might be an area to watch. Most of the wheat in the lower Midwest is not far enough advanced to be impacted in a permanent negative manner,” says Lerner.

For the week ending April 16, 2023, there were 6.1 days
suitable for fieldwork, according to @USDA_NASS Winter wheat condition rated 60% very poor to poor, 26% fair, 14% good to excellent. Winter wheat jointed was 27%, behind 32% last year and 35% for the five-year average. pic.twitter.com/KkW31zYOdL
— KansasWheat (@KansasWheat) April 18, 2023

Winter wheat conditions are already in historically poor condition. Kansas’ crop is rated 60% poor to very poor, Oklahoma has 53% of the crop in the worst two categories and the Texas winter wheat crop is rated 52% poor to very poor.

“If you look at U.S. winter wheat conditions as a whole, as of April 16, we are seeing our lowest overall U.S. winter wheat conditions since the spring of 1996, and it’s really driven by these really abysmal numbers across the Central and Southern Great Plains,” says Rippey. “Right up and down the Central and Southern Great Plains everywhere, it’s almost every day that passes here, we’re losing more of this crop. Some of it never emerged. Some of it’s incredibly poorly established. And each passing day now in April, as the warmth, the wind and the dryness continue, we’re seeing lowering of those yield prospects and expectations for higher abandonment.”

From the dry weather and intense winds, to now the frigid air that could hit the crop into the weekend, winter wheat conditions continue to see weather challenges this year.

First Thing Today: Hot, Dry Forecast for Spring Wheat Country

Wed, 21 Sep 2022 07:45:15 GMT

Firmer tone ahead of reports... Grain traders are favoring the upside as they prepare for the onslaught of USDA data today. Corn and soybean futures are both mostly 3 to 4 cents higher. Wheat futures are up 12 to 16 cents, with the HRS market again leading the charge. The U.S. dollar index is up slightly, as are crude oil futures.

All eyes on USDA... USDA’s much-anticipated Acreage and Grain Stocks Reports arrive at 11:00 a.m. CT today. Traders expect USDA to report corn plantings fell slightly while soybean plantings climbed a bit from March intentions to 89.903 million acres and 89.750 million acres, respectively. All wheat plantings are expected to come in around 46.070 million acres, up marginally from March. Cotton acres are also expected to climb slightly to 12.233 million acres. June 1 corn and soybean stocks are expected to come in at their third highest level on record at 5.123 billion bu. and 983 million bu., respectively. Quarterly wheat stocks are expected to come in around 1.137 billion bu., Their highest level since 1988.

Hot, dry forecast for spring wheat country... The National Weather Service forecast for July 5-9 calls for heat across the country, with western areas of the Northern Plains expected to see some of the highest temps. Adding to worries, NWS also anticipates the weather will be dry for the Northern Plains and into Minnesota, as well as in Texas. This is concerning for an already-battered spring wheat crop that will be in its key grain filling stage, as well as for the corn crop that will be nearing pollination. Above-normal precip is likely for southern and eastern areas of the Corn Belt.

Heat wave pulls French wheat crop ratings lower... As expected, French soft wheat crop ratings fell the week ended June 26 as a heat wave took a toll on the crop. FranceAgriMer lowered the amount of soft wheat rated good to excellent by 3 percentage points to 65%, which is equal to year-ago at this point. The hot, dry conditions have also accelerated crop development, leading to an early start to harvest. Four percent of the crop was harvested as of Monday, the French farm office reports. The recent heatwave also prompted the European Commission to lower its estimate of common wheat usable production (excluding durum) by 2.4 MMT to 138.9 MMT.

Conaway reaches deal on ag budget cuts... House Ag Chairman Mike Conaway (R-Texas) late Thursday said he reached agreement with the Budget Committee on a cut to food stamp spending. “As far as Ag Committee and Budget, we’re done,” he said. Conaway did not provide details of his agreement but said he agreed to specific cuts the House ag panel would have to abide by in the fiscal 2018 budget. He indicated that the cut would be small enough to make it politically feasible to move forward later this year with developing a new farm bill. Conaway also said he still plans to act on a farm bill through regular order late this year or early in 2018.

New CBO baseline signals 2018 farm bill spending levels... The Congressional Budget Office (CBO) on Thursday released an updated 10-year baseline of federal revenue and spending that includes projected costs of mandatory farm and nutrition programs. CBO estimates spending on agriculture will amount to $137 billion between fiscal 2018 and 2027, while the Supplemental Nutrition Assistance Program (SNAP/food stamps) will cost $679 billion over the same decade. The shifts in the baseline put even more pressure on farm-state lawmakers to determine how to divvy up what appears to be a smaller pie. Get more details .

Trade talks between the U.K. and U.S. ahead... The U.K. and U.S. will begin “actual discussions” over a post-Brexit trade agreement on July 24, U.K. Trade Secretary Liam Fox told BBC TV’s Question Time. Britain cannot formally sign trade deals with other countries until it leaves the EU in March 2019, but it can lay the groundwork for them so they can be ratified soon after.

Uptick in Chinese manufacturing for June... China’s manufacturing activity accelerated more than expected in June, as the world’s second-largest economy continues to confound expectations for a slowdown. The official manufacturing Purchasing Managers’ Index rose to 51.7, compared to a reading of 51.2 in May. Investors also digested economic data out of Japan, but local equities sold off following the fall in tech stocks overnight.

U.S. and Mexico expected to officially sign a deal on sugar trade as soon as today... The suspension trade agreement reduces the amount of refined sugar Mexico can export to the U.S. The deal will be implemented on Oct. 1 for the start of the 2018 fiscal year. President Donald Trump commented on the deal on Thursday, saying it “is a very good one for both Mexico and the U.S.” Officials with both the Corn Refiners Association and the American Sugar Alliance agree.

Perdue in China to mark return of U.S. beef... USDA Secretary Sonny Perdue is in China to mark the official return of U.S. beef to the Asian nation. He’ll meet with China’s Minister of Agriculture Han Changfu and Chinese Vice Premier Wang Yang. Perdue also will join U.S. Ambassador to China Terry Branstad and cut prime rib from Nebraska to celebrate the move. China has rapidly become a major importer of beef. USDA said the first shipment of U.S. beef arrived in China on June 19. Han told Perdue and Branstad that agriculture deals between China and the U.S. would improve the well-being of the two peoples, and would aid in particular the farm industry of the U.S.

Ranchers in Brazil say a FMD vaccination overhaul is needed... Cattle ranchers in Brazil are pushing for an overhaul of the country’s vaccination program against Foot and Mouth Disease (FMD), which was one of the issues that led to the U.S. banning imports of fresh beef from the country. CNPC, a national council of cattle ranchers, asked the government to cut doses in half, change the location where the vaccine is administered from the muscle to just under the skin and to remove a substance called saponin from the vaccine. The group also believes the mandatory, twice annual vaccination should be eliminated in 12 states that have not reported a case of FMD in 20 years.

More lower cash cattle trade... Cash cattle trade picked up between $118 and $120 across the Plains yesterday, which was down from week-ago, as expected. The June contract that expires at noon today is trading in line with the upper end of this week’s action, while the August contract holds around a $1.50 discount to the low end of that range.

Neutral H&P Report... Yesterday’s Quarterly Hogs & Pigs Report show the U.S. hog herd stands at a record-level, but that was not surprising. All Hogs & Pigs, Kept for Breeding and Kept for Marketing all came in basically in line with expectations. This means traders will likely quickly shift their attention back to the cash hog market and whether it is working on a top. Yesterday, cash bids strengthened across much of Midwest, with the exception of the eastern Corn Belt.

Overnight demand news... Jordan bought 50,000 MT of hard wheat from optional origins. It also issued a new tender to buy 100,000 MT of feed barley from optional origins.

Today’s reports:

11:00 a.m., Acreage -- ERS
11:00 a.m., Grain Stocks -- ERS
2:00 p.m., International Food Security Assessment -- ERS

First Thing Today: Scouts Measure Sub-par Spring Wheat Yield Potential

Wed, 21 Sep 2022 07:45:15 GMT

Good morning!

Short-covering leads to modest rebound overnight... Corn futures saw a mix of followthrough selling and short-covering overnight, but as of 6:30 a.m. CT most corn contracts are steady to a penny higher. Soybeans also saw two-sided trade overnight but most contracts are currently around a penny higher. Winter wheat futures are up 3 to 4 cents thanks to some corrective trade, but spring wheat is mixed, with nearbys firmer and deferred months under pressure. The U.S. dollar index and crude oil futures are slightly higher.

Scouts measure sub-par spring wheat yield potential... Scouts on Day 1 of the Wheat Quality Council Tour through North Dakota and neighboring areas of Minnesota and South Dakota measured an average yield of 37.9 bu. per acre, which is down from last year’s first-day yield of 43.1 bu. per acre and the five-year average of 45.7 bu. per acre for Day 1. Routes favor central and southeast North Dakota on the first day, and conditions are expected to worsen as scouts get into western areas of the state. Scouts reported that the poorest crops they saw yesterday were in southwest areas of North Dakota, where fields had already been cut for hay.

Russian ag ministry hopes to export some of its grain stockpile... Russia’s ag ministry hopes to receive government approval to export 532,800 MT of grain stockpiles from the 2008 to 2013 crop years to free up storage space and lessen federal budget spent caring for the stocks. The ministry hopes to have a decision by September. Exporters are opposed to the proposed sales as their margins are thin due in part to recent big crops.

Senate healthcare reform debate continues... Republicans voted to begin debate on health care Tuesday, but then their first vote rejected a provision that would have rolled back parts of ObamaCare. There were several provisions in the package, including ones that would have allowed insurers to offer plans that don’t meet ObamaCare standards and one that would have helped low-income people transition from Medicaid to private insurance. The chamber is expected today to vote on a plan to largely repeal ObamaCare with a two-year expiration deadline, the idea being to give lawmakers more time to come up with a replacement plan. The GOP also has a “skinny repeal” fall-back plan that would rescind ObamaCare’s requirement that many employers provide health insurance and would strike down a mandate penalizing those who don’t have health insurance. Get more details .

Biofuel programs at USDA targeted for defunding... The Bioenergy Program for Advanced Biofuels and Biomass Crop Assistance Program would be defunded under a bill to be offered today by Rep. Andy Biggs (R-Ariz.) as he maintains the programs disregard market signals and cost taxpayers money. However, the legislation would certainly run into opposition in the Senate.

Reuters: Brazil trade chamber postpones decision on taxing U.S. ethanol... Brazil’s foreign trade chamber, Camex, has put off for 30 days a decision on whether to impose a tariff on ethanol to curb a surge in imports from the U.S., a senior government official who attended the meeting told Reuters on Tuesday. The official said the chamber could not agree on applying a tariff and may consider quotas for imported ethanol at its next meeting. The quota proposal to be discussed would allow in 500,000 MT a year of ethanol and apply a 20% tariff on any imports beyond that quota. Brazilian ethanol imports jumped 330% in the first half of 2017 compared to the same period a year earlier to around 1.3 million cubic meters, mostly from the United States.

FOMC meeting concludes today... The Federal Open Market Committee (FOMC) meeting will wrap up today, and without a post-meeting press conference, the attention will solely be on the statement released at the conclusion of the confab. The market will look for any signals the Fed sends on the next rate action, on any timing hints on when the initial phase of the reduction in the Fed’s massive $4.5 trillion balance sheet will start and on how the Fed characterizes recent economic data which has been less than stellar. Another key will be on inflation as that has emerged as a factor mentioned or talked about by global central bankers in recent weeks. Expectations are the Fed will retain its guidance that it expects only “gradual” rate increases ahead.

Clovis officially nominated for key USDA post... President Donald Trump officially nominated Sam Clovis for USDA undersecretary for research, education and economics on Tuesday. His nomination has been controversial although many farm and commodity groups recently noted their support. Senate Agriculture Chairman Pat Roberts (R-Kan.) said a nominee who regarded crop insurance as unconstitutional “might as well not show up” to his committee hearing. In a 2013 interview with an Iowa talk radio host, Clovis listed crop insurance subsidies as spending that he said was unconstitutional. Roberts later said “it’s too early” to say whether Clovis’ expected nomination should be withdrawn. Clovis should have the opportunity to talk with the Agriculture Committee leaders and explain “why in the hell he said that,” Roberts said.

Food inspectors on strike in Brazil... Federal food inspectors in Brazil resumed their protest this week, slowing oversight at meatpacking companies, ports and airports. The Anffa Sindical union says inspectors lack sufficient staff to ensure the safety of the country’s meat shipments and are demanding the government hire 1,600 more inspectors. The union is also asking the government to add veterinarians to more efficiently handle food inspections. The first day of the strike last week lasted 24 hours. This week’s protest is slated to last 48 hours and more stoppages are planned. This comes in the wake of a bribery scandal involving the country’s food inspectors as well as a U.S. decision to cut off fresh beef imports from Brazil due to food safety concerns.

Uzbekistan lifts ban on U.S. pork... Uzbekistan has lifted a ban on U.S. pork put in place in 2014 after an outbreak of porcine epidemic diarrhea virus (PEDV), according to the U.S. Meat Export Federation (USMEF). “The suspension was very unfortunate because initial shipments of U.S. pork had just reached Uzbekistan a short time before the ban, and the product was quite well-received,” said Yuri Barutkin, a USMEF representative in the region. The lifting of the ban “did not happen as soon as we would have liked, but we never gave up,” he said.

Beef prices working on a low?... On Tuesday, Choice and Select boxed beef prices again strengthened, signaling beef prices may have put in a low. Movement was decent at 113 loads. So far there has been some light cash market tests at $116 in Iowa and $118 in Nebraska, steady to down a bit from trade ranging from $118 to $120 in these areas last week. But sales volume has not been enough to set a trend. Today’s online Fed Cattle Exchange auction should provide additional cash market insight.

Strong pork movement... Pork movement surged to 424.78 loads on a 70-cent rise in the pork cutout value on Tuesday. This was a dramatic improvement from load counts ranging from roughly 251 to 287 the prior three business days. This could help cash hog prices to stabilize after softening the first two days of the week.

Overnight demand news... Egypt purchased 300,000 MT of wheat from Russia, 60,000 MT of wheat from Romania and 60,000 MT of wheat from Ukraine. Algeria bought up to 500,000 MT of milling wheat from optional origins, with traders saying the wheat will likely come mainly from France. Japan received no offers in its simultaneous buy and sell auction at which it was seeking 120,000 MT of feed quality wheat and 200,000 MT of feed barley.

*Correction... In “Evening Report” we reported that USDA in June forecast grocery store prices would rise 1% to 2% in 2017. It actually forecast prices would hold steady to rise 1% this year in its update last month.

Today’s reports:

9:30 a.m., Weekly Ethanol Production -- EIA
1:00 p.m., FOMC meeting concludes -- Fed
2:00 p.m., Broiler Hatchery -- NASS

First Thing Today: North Korea Tensions Rise

Wed, 21 Sep 2022 07:45:01 GMT

Good morning!

Soybeans push to new highs for the month... Corn and soybean futures started the overnight session under pressure, but both markets are now trading high-range, with corn up a penny and soybeans 7 to 8 cents higher. Winter wheat futures are up 1 to 2 cents, with spring wheat posting even stronger gains. The U.S. dollar index is under moderate pressure, with crude oil futures also favoring the downside.

Harvest-friendly forecast... The National Weather Service forecast for Sept. 27 through Oct. 1 calls for normal temperatures and dry weather in the western Corn Belt and into Illinois. Indiana and Ohio are expected to see warm temperatures and normal rainfall. The Central and Southern Plains are expected to see cool, wet weather over this timeframe.

North Korean tensions rise... North Korea reacted to President Donald Trump’s latest sanctions, announced yesterday, with Kim Jong Un warning of the “highest level of hard-line countermeasure in history.” The country’s foreign minister suggested this could include testing a hydrogen bomb in the Pacific. Asian stocks closed slightly lower into the weekend following the increase in tensions.

NAFTA 2.0 negotiators meet for third round of talks in Ottawa... Round 3 of North American Free Trade Agreement (NAFTA) modernization renegotiations will include sensitive topics like dispute settlement and rules of origin for automobiles as negotiators meet Sept. 23-27 in Ottawa. An agreement on digital trade is expected to be an early win for the negotiators. Commerce Secretary Wilbur Ross is getting ahead of a more challenging third round of NAFTA negotiations with Mexico and Canada by pushing for tougher rules of origin, based on the Trump administration’s belief that auto imports in particular have too little U.S. content. U.S. Trade Representative Robert Lighthizer will submit new proposals covering rules of origin, labor standards in Mexico and dispute resolution. U.S. negotiators view achieving several changes to NAFTA as necessary for meeting Trump’s goal of cutting the U.S. trade deficit. This includes: limiting Buy American procurement waivers, increasing U.S. content in rules of origin, raising Mexican wages, and changing investment rules.

Strong Russian wheat shipments thus far in 2017-18... Russia will likely export 4.1 MMT of wheat in September, projects the ag consultancy SovEcon. This would be a 15.8% increase from year-ago and 195,000 MT increase from August. For the first three months of the 2017-18 marketing year, the consultancy projects grain exports will total 9.4 MMT, up 1.058 MMT (12.7%) from this point in 2016-17. Egypt has been its top customer.

Rainy weather reportedly slows Russian winter grain seeding... Rainy weather has delayed winter grain plantings in Russia, reports Pyotr Checkmarev, head of the ag ministry’s crop growing department. He also said “next year does not really promise a good harvest,” which is why the country should have reserves for next year. But the latest ag ministry data does not reflect any major delays. As of Sept. 21, 10.0 million hectares had been planted, or 57.5% of the intended winter grain area. That compares to seedings of 10.1 million hectares at this point last year. Regarding the 2017 grain crop, the ag ministry is sticking with its 110 MMT by clean weight peg, which is well below crop estimates from other analysts topping 130 MMT. The ministry explains that there is risk some areas won’t harvest their crop before cold weather hits.

Lagging EU wheat shipments... From the start of the 2017-18 marketing year through Sept. 19, The European Union has exported 3.7 MMT of soft wheat, down 42% from last year at this point, official trade data shows. The region has struggled to compete against an influx of cheap wheat out of the Black Sea region.

Arkansas advances a measure to ban dicamba use over growing season... Arkansas’ State Plant Board advanced a proposal that would ban the use of dicamba weed killers from April 16 to Oct. 31, 2018, meaning the state is just one step away from enacting an official ban on the herbicide that farmers charge can drift and damage crops not meant to withstand the chemical. Monsanto’s Vice President of Global Regulatory Ty Vaughn said the decision was not based on science and warned that “all options are on the table for Monsanto’s next move.” Previously, the company said it may file a lawsuit if the board denied its petition for it to reject the proposed cutoff date for sprayings, which the board did with a unanimous vote. BASF and DuPont also sell dicamba herbicides under different brand names. After a public comment period and public hearing on Nov. 8, the proposal will move to the Arkansas legislative subcommittee for final approval.

Senators push for more funding of ag export promotion programs... A group of lawmakers have introduced bipartisan legislation that would double funding over the course of five years for two of USDA’s export promotion programs -- the Market Access Program and Foreign Market Development Program. The measure was introduced by Senators Joe Donnely (D-Ind.), Angus King (I-Maine), Joni Ernst (R-Iowa) and Susan Collins (R-Maine). “As American farmers and ranchers are struggling with historically low commodity prices, maintaining and strengthening U.S. trade relationships around the world is critical to the survival and profitability of the agricultural community,” Ernst explained, adding that these programs have “proven to be effective in expanding foreign markets for American agricultural goods.”

Exchange lowers initial margins on live cattle... CME Group has lowered initial margins for speculators in live cattle futures from $1,925 per contract to $1,650 per contract; the rates will take effect after the close of business today.

Another week of extended cash cattle negotiations... Cash negotiations are again stretching late into the week. So far, just a few hundred head have changed hands in Kansas around $107. Trade could be limited leading up to the Cattle on Feed and Cold Storage Reports this afternoon. The former is expected to show a 2.9% drop in Placements from year-ago.

Pork tumbles as aggressive slaughter continues... For the third day in a row, packers slaughtered an estimated record-high 455,000 hogs on Thursday, keeping this week’s kill ahead of week-ago and well ahead of year-ago levels. In fact, this week’s kill could be near the fall high. An abundance of pork has also weighed on the product market. The pork cutout value plunged $3.01 yesterday and it is now down $4.58 from last Friday. Movement also slowed after strong load counts the prior two days.

Overnight demand news... South Korea issued a tender to buy 55,000 MT of corn from worldwide origins.

Today’s reports:

2:00 p.m., Cattle on Feed -- NASS
2:00 p.m., Chickens and Eggs -- NASS
2:00 p.m., Cold Storage -- NASS

Cereal Grains Enhance Dairy Cropping Options

Fri, 16 Apr 2021 16:53:10 GMT

Growing an array of cereal grains to augment the traditional corn-alfalfa cropping cycle has become the new normal for dairy farmer Josh Tranel and his family of Cuba City, Wis.

“We got burned so many times with alfalfa winter-kill,” Tranel shared on a recent Iowa State University webinar . “And we wanted to take advantage of a longer growing season. Trying to raise all of our feed in just a few months in the summer wasn’t working very well.”

The Tranels now raise a variety of small grains as both cover and nurse crops to feed their 600-cow organic herd. Through several seasons of trial and error, they have learned the best ways to incorporate winter wheat, triticale, winter rye, oats, sorghum-Sudan grass, and summer forage “cocktail mixes” into their cropping plans. By raising more cereal grains, they also are now able to grow more corn as well.

“In our old rotation, we could only keep about 25% of our acres in corn,” said Tranel. “Now we can routinely plant 40% of our acres to corn.” He cited several additional benefits to embracing small grains, including:

Soil health and protection. By keeping the ground covered virtually year-around, less soil is lost to erosion, soil tilth is improved, nutrient update is better, and weed pressure is reduced.

More tonnage from the same acres. Tranel shared a calculation of their 5-year average annual tons per acre now versus their years of a strict corn-alfalfa program. On the same 2,000 acres, the farm’s new rotation yields an average of 12.25 tons of dry matter per acre per year more than the old program.

Greater manure management flexibility. Because crops are coming off at different times of the year, the Tranels have more opportunities to hose-applicate liquid manure on acres close to their dairy site. This saves on hauling time and expense; allows them to keep their manure inventories lower; and expands the manure application season, versus just small windows of opportunity in the spring and fall.

The Tranels also appreciate the harvesting flexibility of cereal grains, which can easily be chopped for silage; baled and wrapped; or grazed. Because they are almost always one-cut crops, the chop height can be fairly low, at about 3 inches.

Along the way, they’ve learned to customize forages and harvest times depending on the target group of animals they will be feeding. Lactating-cow rations generally require harvest at boot to late-boot stage for maximum digestibility. Heifer forages will yield appropriate nutrition and more tonnage at the heading-milk stage. Dry-cow rations are best formulated with forages like winter wheat at the milk-to-dough stage.

Tranel’s favorite small grain forage? “Triticale, for sure,” he shared. “It has flexibility for fall or spring seeding, is fairly high in protein, and has tremendous NDF value compared to alfalfa.”

Food Box Idea Draws Criticism

Fri, 20 Nov 2020 05:49:14 GMT

WASHINGTON (AP) — The Trump administration is pushing what it calls a “bold new approach to nutrition assistance": replacing the traditional cash-on-a-card that food stamp recipients currently get with a pre-assembled box of canned foods and other shelf-stable goods dubbed “America’s Harvest Box.”

Office of Management and Budget Director Mick Mulvaney likened the box to a meal kit delivery service, and said the plan could save nearly $130 billion over 10 years. But the idea, tucked into President Donald Trump’s 2019 budget, has caused a firestorm, prompting scathing criticism from Democrats and nutrition experts who say its primary purpose is to punish the poor.

“The main goal is to alleviate food insecurity, and the reason SNAP is so successful is because it gives low-income families the autonomy and dignity to make their own food choices,” said Craig Gundersen, a professor in agricultural strategy at the Department of Agricultural and Consumer Economics at the University of Illinois at Urbana-Champaign. Gundersen said people will leave the program as a result of the shift.

SNAP — the Supplemental Nutrition Assistance Program — is the official name for the food stamp programs.

“All of a sudden you’re saying, ‘we don’t trust you to make the right decisions for your family.’ It’s demeaning and it’s patronizing. This is pro-hunger, because people will leave the program,” Gunderson said.

Under the proposed plan, households that receive more than $90 in SNAP benefits each month — roughly 81 percent of households in the program, or about 16.4 million — would be affected.

Agriculture Secretary Sonny Perdue called the box “a bold, innovative approach to providing nutritious food to people who need assistance feeding themselves and their families.”

But the proposal doesn’t include any concrete details about how much the program would cost or how it would be implemented, saying only that states will be given flexibility to distribute the boxes “through existing infrastructure, partnership, and/or directly to residences through commercial and/or retail delivery services.”

Lawmakers say they aren’t even sure where the idea came from.

Rep. Jim McGovern, D-Mass., the ranking member of the House nutrition subcommittee, called the proposal a “cruel joke” that came out of nowhere. He said despite having numerous hearings on SNAP, Monday’s budget was the first time he’d heard of the food box proposal.

“I don’t even know how to implement it. Who would distribute these boxes?” he said. “How would we do this? Do they anticipate recipients getting them at supermarkets? In addition to being a cruel and demeaning and awful idea, it’s just not practical.”

A spokeswoman for House agriculture committee Chairman Mike Conaway, R-Texas, said the committee has held 21 hearings and invited 80 experts to speak about SNAP in its preparations of the forthcoming farm bill, and the idea of a food box was not once discussed.

An Agriculture Department spokesman said the idea was developed internally, but didn’t provide further details on the brainstorming process. Mulvaney credited it to Perdue.

Michigan Sen. Debbie Stabenow, top Democrat on the Senate agriculture committee, said the food box idea “isn’t a serious proposal and is clearly meant to be a distraction from this Administration’s proposed budget that fails our families and farmers.”

The proposal is part of a broader plan to gut the SNAP program, reducing it by roughly $213 billion — nearly 30 percent — over the next decade. The plan also proposes tightening work requirements for recipients.

Matt Knott, president of hunger relief network Feeding America, called it “an unworkable solution in search of a problem.”

“SNAP is an efficient program that already utilizes a grocery system,” Knott said. “It’s a program that expands and contracts as the economy expands and contracts as well. It’s flexible, timely and efficient, and converting a sufficient portion of it to an antiquated program where boxes are delivered is simply unworkable.”

Copyright 2018, The Associated Press

ConAgra’s Fruitless Ralcorp Deal Invites Breakup Talk

Fri, 20 Nov 2020 05:40:28 GMT

The best way for ConAgra Foods Inc. to commemorate the two-year anniversary of buying Ralcorp Holdings Inc. may be to undo the deal.

Since ConAgra completed the $6.7 billion acquisition, it’s the only food-products maker in the Standard & Poor’s 500 Index that’s handed losses to shareholders, making it one of the industry’s cheapest stocks. Chief Executive Officer Gary Rodkin last month announced plans to step down as he struggles to prove the purchase he oversaw was worth the money.

It’s time for ConAgra’s board to evaluate options, including breaking up the $14 billion company and selling the pieces, according to Rhino Trading Partners LLC. ConAgra also could draw the attention of activist investors. While Rodkin said in November 2012 that adding Ralcorp’s faster-growing private-label business would be a “great fit” for the maker of Chef Boyardee, Slim Jim and Healthy Choice foods, the unit has since dragged down profit and contributed to a $681 million writedown.

“When you make a very large bet and it’s not working out and your CEO leaves, this is exactly the kind of situation where you’d want to be evaluating strategic alternatives,” Timothy Chen, a New York-based analyst at Rhino Trading, said in a phone interview. “We’re two years post-merger and people expect results. If the results aren’t there, investors are going to expect the board to take action.”

Teresa Paulsen, a spokeswoman for Omaha, Nebraska-based ConAgra, said in an e-mail last week that the company is “confident of and committed to our strategy that includes differentiated positioning and strong balance among our consumer foods, commercial foods and private brand businesses. We are making good progress and we are confident of our ability to meet this year’s financial commitments.”

Hybrid Company

Before the Ralcorp acquisition, ConAgra was focused on branded packaged foods such as Hunt’s ketchup, Swiss Miss cocoa and Orville Redenbacher’s popcorn. Most are second- and third- tier brands, according to Ken Shea, a food and beverage analyst for Bloomberg Intelligence.

Buying Ralcorp made ConAgra more of a hybrid company by substantially increasing its revenue from private-label foods, which are sold under supermarket names.

Most food companies sell either branded products or private-label items, so ConAgra still has to prove that it makes sense to have both, Shea said. Skepticism that it can is reflected in the stock price, he said.

Underperforming Shares

From the deal’s closing in January 2013 through last week, ConAgra shares slipped 0.3 percent, while every other food- products company in the S&P 500 advanced at least 10 percent, according to data compiled by Bloomberg. ConAgra was valued last week at about 14 times this year’s estimated profit, a 30 percent discount to the median multiple for similar-sized North American food manufacturers, the data show.

The acquisition tripled ConAgra’s ratio of debt to earnings before interest, taxes, depreciation and amortization. Its credit standing was lowered to one level above junk status by S&P. And for the fiscal year ended in May, the company booked a $681 million non-cash charge, most of which related to the private-label business.

“ConAgra really stretched its balance sheet almost to the limit to buy Ralcorp,” Shea said in a phone interview. While the writedown doesn’t impact cash flow, “it does communicate to investors that the company perhaps overpaid.”

Even after the writedown, ConAgra’s goodwill-to-assets ratio is about 40 percent, among the highest in the S&P 500, data compiled by Bloomberg show. Goodwill is the amount paid above the book value of a target company’s assets. If the value declines after the acquisition closes, it must be written down on the acquirer’s balance sheet.

Bad Situation

“ConAgra is burdened with a challenging portfolio, and the situation is getting worse,” Alexia Howard and other analysts from Sanford C. Bernstein & Co. wrote in a July note. “It remains to be seen whether the company can successfully manage both private-label and branded products under the same roof.”

Amid the challenges the Ralcorp deal has presented, ConAgra said last month that CEO Rodkin plans to retire next May and that it’s searching for a replacement.

“They’re really in limbo right now,” Jack Russo, an analyst at St. Louis-based Edward Jones & Co., said in a phone interview. “I don’t see a lot of options. I think investors are just going to have to be patient as we go through this leadership change.”

A breakup or sale may be unlikely, at least for right now, because ConAgra probably prefers to give the next CEO a chance to lay out a strategy, Russo said. It would also be difficult to find a buyer that wants the whole company given that it operates two different businesses, he said.

TreeHouse Combination

Selling itself in pieces is an option, Chen of Rhino Trading said. It may make sense for TreeHouse Foods Inc., a $3.5 billion private-label foodmaker, to combine with that piece of ConAgra, he said. TreeHouse has purchased at least 13 companies since 2006, though this would by far be its largest deal, according to data compiled by Bloomberg.

Ron Bottrell, a spokesman for Oak Brook, Illinois-based TreeHouse, said the company doesn’t comment on deal speculation.

The dilemma in divesting Ralcorp now is that ConAgra may get less than it paid for the business, Russo of Edward Jones said.

Activist Invitation

Still, the CEO departure and Ralcorp disappointments have opened the door for some sort of deal or even activist investors’ initiatives, according to Chen.

On the company’s June earnings call, analysts from firms including Citigroup Inc. and Barclays Plc also asked whether it’s time to explore strategic alternatives such as a breakup or selling assets to boost shareholder value. Absent any changes, ConAgra’s shares may not have any upside given that they traded last week for about the same price as analysts’ average 12-month price target, data compiled by Bloomberg.

“The board certainly needs to evaluate all options,” Chen said. “If they don’t, it’s not going to be very long until their shareholders ask them to -- if they haven’t already.”

Farmers Share Their Thoughts On Tariff Aid

Fri, 20 Nov 2020 03:01:36 GMT

In late July, U.S. Agriculture Secretary Sonny Perdue announced a $12 billion pro- gram to help farmers who are bearing the brunt of President Donald Trump’s trade tactics. Program sign-ups began Sept. 4.

The package includes a market facilitation program, a food purchase and distribution program of surplus commodities, and a trade promotion program to provide private sector assistance to new markets.

When USDA released the specific details of the tariff aid package, some farmers were thrilled, while others were greatly disappointed. Funds included in the Market Facilitation Program, which is the arm of the three-pronged program that results in direct payments, were not distributed equally. Instead, the rates were based on tariff impact. Still, some agriculture organizations say the payments are off-base and won’t help farmers in need.

Farmers who produce corn, wheat and dairy say the program leaves much to be desired. Jimmie Musick, president of the National Association of Wheat Growers and an Oklahoma wheat farmer, says producers appreciate Trump’s steps to hold China accountable but “tariffs and the subsequent self-inflicted need to provide aid aren’t the answer.”

Similarly, dairy producers were disappointed by the trade aid payment rates, which will amount to approximately 12¢ per cwt.

“The dairy-specific financial assistance package provided by USDA, centered on an estimated $127 million in direct payments, represents less than 10% of American dairy farmers’ losses caused by the retaliatory tariffs imposed by both Mexico and China,” says Jim Mulhern president and CEO of the National Milk Producers Federation.

Likewise, corn farmers are upset with their payment rate of 1¢ per bushel on 50% of 2018 production.

“While most members prefer trade over aid, they support relief if it helps some farmers provide assurances to their local bankers and get through another planting season. Unfortunately, this plan provides virtually no relief to corn farmers,” says Kevin Skunes, National Corn Growers Association president and North Dakota farmer

The consistent message across various sectors of the industry is that trade is the solution—not aid.

Q. What are your thoughts on the tariff relief package for agriculture?

Dwayne Faber, Burlington, Wash.

“We milk 1,800 cows in the Pacific Northwest and ship to Darigold. Our herd consists of Holsteins, Jerseys and cross-bred cows. We grow corn and grass silages to maximize our ration with local forages.

A: It is estimated that the impact of the tariffs on the dairy industry will be a loss of $1.5 billion this year and a potential $3 billion next year. The largest bites were a 25% tariff on dairy products by China and a 20% to 25% tariff on cheese by Mexico. While initial reports were a tariff aid pack- age of $1 to $1.50 per cwt, the news of a paltry 12¢ or 6¢ on annual production was a rude awakening. The dairy industry has worked hard to develop market share in other countries, and it is incredibly frustrating to see that being eroded by Canada and our own government. Universally dairy farmers would prefer to make their margin on free market sales. However, being the unwanted pawn in a global trade chess game isn’t the position we prefer. I personally feel that aid in this situation is warranted.”

Garry Niemeyer, Auburn, Ill.

“We grow corn and soybeans on more than 2,000 acres in central Illinois. I’ve been involved in farm- ing since I could walk and previously served as president of the National Corn Growers Association.

A: What the government’s giving us—$1.65 on soy- beans and a penny on corn—is almost an embarrassment. I figured they were going to allow year-round E-15% instead of a larger aid payment on corn, but that hasn’t happened. Really, the payment is 82.5¢ on soybeans and a half cent on corn because they are only paying on half of total production. If I had 100,000 bu. of corn, that’s $500. I can’t take a family of four to a St. Louis Blues hockey game for $500. I mean, $12 billion dollars is a lot of money. But, agriculture throughout the U.S. is huge. So, there’s half of me that says, ‘How long do you let somebody take advantage of you and your intellectual property? You have to say enough is enough.’ We want to make sure we get a good deal. But how long does it take to shape this, and are we going to get a good deal? I mean, really, nobody expected that China would ever go this long and not have to buy some soybeans. Then there’s the other side that nobody wants to talk about. Maybe they are getting U.S. soybeans through the back door from other countries. That’s as aggravating as not getting a legitimate tariff deal done.”

Michelle Jones, Broadview, Mont.

“My dad, husband and I grow wheat, malt barley, safflower, sunflowers, corn, alfalfa, forage grains and cattle on 10,000 acres in Montana. I am currently president of the Montana Grain Growers Association, and I serve on the National Association of Wheat Growers board.

A: We appreciate the administration putting together the Market Facilitation Program and recognizing the trade issues have had a negative impact on agriculture. We were disappointed to only have a 14¢ payment on half of our production. While a second payment is a possibility, the wheat industry had demonstrated that we have lost 75¢ per bushel as a result of lost export demand. We are hoping to see further progress on NAFTA negotiations, and we were encouraged by a handshake deal between Mexico and the U.S. pursuing more negotiations with China, as well as new agreements. Our farm, and the wheat industry as a whole, depends on our access to the global marketplace.”

Small Grain Silage Harvest Can Cause Soil Compaction

Fri, 20 Nov 2020 01:56:30 GMT

Farmers need to be aware that harvesting small grains as silage in late spring, especially if soils are wet, can cause soil compaction that can then lower or limit subsequent corn silage yields that is double cropped.

“Soil is most sensitive to compaction when it is in the ‘plastic’ state—that is when soil particles easily slide over each other leading to a denser soil with fewer pores,” says Sjoerd Duiker, a Penn State Extension soils specialist. “If, by molding a handful of soil, you can easily form a ball, the soil is in the plastic state.”

When compaction occurs, large soil pores are compressed, which leads to reduced aeration, water percolation and increased penetration resistance. That, in turn, makes it harder for corn roots to establish themselves.

Waiting until soils dry is not always an option because small grains have a narrow harvest window to optimize quality. And the longer corn planting is delayed, the greater chance of poorer corn yields as well.

To avoid compaction, consider lowering axle load to below 10 tons by decreasing load or increasing the number of axles. Reducing contact pressure below 35 psi and increasing equipment footprint by using tracks or flotation tires at low pressure also will help. If ruts are created, it’s often tempting to perform tillage to smooth soils ahead of planting. “You always have to remember that tillage makes your soil more susceptible to recompaction in the future,” says Duiker.

For more tips on reducing spring soil compaction, click here .

Trade War Could Crush Dairy, Grain Markets

Fri, 20 Nov 2020 01:54:06 GMT

Last week President Trump announced new tariffs on steel and aluminum imports. Entering into this kind of trade war could have a significant impact on farmers analysts say.

While he hasn’t officially imposed the tariffs, his announcement which did not have the support of his entire cabinet, is already raising eyebrows around the world.

According to Brian Kuehl, Executive Director of Farmers for Free Trade, these tariffs are very likely to accelerate a tit-for-tat approach on trade, putting U.S. agricultural exports in the cross-hairs.

“There’s a real possibility this could invite retaliation against agriculture in the U.S.,” Jeff Harrison of Combest Sell & Associates explained on AgriTalk Friday. “The consequences are altogether too real.”

Canada and Mexico will be two countries most impacted by the tariffs said Shawn Haney of RealAgriculture.com.

“Will there be exemptions? From what I’ve read the president has been very firm on no exemptions,” he told Clinton Griffiths on AgriTalk.

If the president were to impose these tariffs, it would be using an authority granted because of national security threats. Countries like Canada are taking offense to that.

“It is entirely inappropriate to view any trade with Canada as a national security threat to the United States,” said Chrystia Freeland, Canada’s Minister of Foreign Affairs. “We will always stand up for Canadian workers and Canadian businesses. Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers.”

According to Edge, a dairy cooperative in Wisconsin, a trade war with “major trading partners” will not be good for the U.S. and would likely result in less dairy sales for dairy farmers.

“That would be a tragic loss at the worst possible time as farmers struggle to make ends meet,” they said in a statement.

Harrison is quick to point out this isn’t the first time Trump has made this kind of move. Earlier this year he put tariffs on washing machines and solar panels.

“China retaliated unrelatedly to U.S. sorghum,” he said. “Farmers are really pinched right now and they can’t afford to stub their toe. We can’t afford to lose market share in the world and keep our farmers afloat.”

Haney points out the irony is that this protectionist action from Trump is exactly what he has been accusing Canada of doing for dairy in the North American Free Trade Agreement negotiations.

The Happiest Doorstep on Earth!

Sun, 08 Nov 2020 17:26:17 GMT

In case you missed it you can now share the -8-25-20 evening of absurdity with nationally-syndicated cartoonists Leigh Rubin, creator of the comic strip “Rubes,” and Wisconsin State Journal editorial cartoonist Phil Hands. This odd couple riffed off each other’s cartoons, demonstrated how the twisted minds of two different cartoonists work. If you’ve ever wanted to learn from a professional smart-aleck or full-time doodler, now’s your chance!

Enjoy!

https://youtu.be/DMKXBYXOkHQ

John Deere Introduces Easier Mid-mount Mower Decks

Fri, 20 Nov 2020 05:30:29 GMT

An AgWeb.com Farm Equipment Special John Deere is introducing easy-to-attach mid-mount mower deck designs with their new 60D and 72D AutoConnect™ mower decks, available for the 3000 TWENTY (3120, 3320, 3520 and 3720) Series Compact Utility Tractors.

The AutoConnect mower decks feature the ability to physically drive over the mower deck and automatically connect the PTO drive shaft.

According to the company’s new product announcement, the AutoConnect feature automatically connects the mower deck to the tractor and hooks up the difficult to reach PTO shaft when the customer drives over the top of the mower. This means consumers can install their mower deck in seconds without leaving the tractor seat, virtually eliminating all frustration typically associated with this task. Removing the mower deck is just as simple.

“Based on customer input, John Deere brings yet another industry exclusive innovation to the market with the new AutoConnect mower decks,” said John Arthur, Strategy Manager, Property Owner Segment. “Combined with existing attachment systems like iMatch AutoHitch™ , Quik-Park™ Loaders and rock-shaft assist backhoes, the new AutoConnect mid-mower decks solidify John Deere’s position as the market leader in easy-to-use compact tractors and attachments.”

According to the company, the AutoConnect mower decks will be available beginning this month at John Deere dealers nationwide.

Famous Case IH Farmall Line Turns 85

Fri, 20 Nov 2020 05:30:55 GMT

An AgWeb.com Farm Equipment Special An icon of American agriculture has turned 85. The first Farmall tractors were introduced in 1923, sending a lot of horses to pasture.

Parent company Case IH is celebrating the Farmall line. According to the company’s birthday announcement, the innovative Farmall Regular tractors had a revolutionary narrow design and higher ground clearance, which allowed farmers to put it to work in taller row-crops without pushing down plants. “In addition, the original Farmall Regular design allowed implements to be mounted fore and aft, further expanding its versatility. “These innovative features, combined with a broad dealer network, enabled the Farmall Regular to quickly become the tractor of choice for progressive farmers throughout North America,” says Shawn Boone, manager of livestock marketing for Case IH.

In honor of Farmall’s 85-year anniversary, Case IH is expanding the Farmall tractor lineup with new utility and mid-range models, with PTO horsepower ratings up to 90 hp. “Customers can get a new Case IH Farmall tractor that packs as much horsepower as those original Farmalls,” Boone says.

The full Case IH Farmall lineup includes 20 models, with configurations ranging from compact straddle mount models to platform models with cab or ROPS options. “Whether you’re in the market for a simple, reliable compact tractor or a high-end, high-horsepower model with all the bells and whistles, there’s a Farmall for you,” Boone says. “It’s one of the most famous names in the history of tractors and Case IH is committed to upholding Farmall’s reputation for power, versatility and ingenious engineering.”

2008 Farmall compact tractor upgrades

Improvements in 2008 include an upgraded Case IH Farmall compact line-up. All Farmall compact tractors are now equipped with a fuel efficient, clean burning Tier 3-compliant engine and MFD. Customers can choose from hydrostatic, synchro or power-shuttle transmissions, depending on the model.

Case IH also simplified the Farmall naming system. “We dropped the D, DX and JX letter naming conventions, and kept the number, which corresponds to horsepower,” says Boone.

In 2008, five Class 2 and Class 3 Farmall compact models are available with PTO horsepower ranging from 25 to 43:

* Farmall 31 - formerly the DX31 - with 31 hp
* Farmall 35 - formerly the DX34 - with 35 hp
* Farmall 40 - formerly the DX40 - with 40 hp
* Farmall 45 - formerly the DX45 - with 45 hp
* Farmall 50 - new in 2008 - with 50 hp

There also are two Class 4 Farmall models with PTO hp ratings of 47 and 51 respectively:

* The Farmall 55 - formerly the DX55 - with 55 hp
* The Farmall 60 - formerly the DX60 - with 60 hp

An abridged history of Farmall: After their successful roll-out in the 1920s, the first Farmall Regular tractors were replaced in 1932 by F Series Farmalls, with their powerful four-cylinder engines. The famous “Harvester Red #50" paint was introduced in 1936 to make the tractors more visible to motorists on country rounds.

In 1939, the F Series Farmalls were replaced with different letter series - including A’s, B’s, H’s and M’s -along with “modern” styling. More than 390,000 Farmall H tractors were produced, ranking it as the top-selling Farmall of all time.

The letter series gave way to the number series in 1954, with the Farmall 100, 200, 300 and 400. The Farmall name continued into 1973.

Then in 2003, Case IH reintroduced the legendary Farmall name on a line of compact Case IH tractors worthy of their namesake. The compact tractors were chosen to carry the Farmall name because of their strong, simple design and ability to handle all tasks on small farms and fill key roles on larger farms.