Hot Button Issues
One of the most discussed issues at the moment is the Farmer Assistance and Revenue Mitigation bill (FARM ACT), which is $21 billion agricultural aid initiative currently under consideration by Congress. This legislation aims to provide essential support to the farming community. Initially, there were hopes that these payments would be delivered by the end of the year or early 2025. However, it now appears that Congress has a packed agenda during their “lame duck” session, and this matter may not be prioritized. While there is speculation that it could be linked to a hurricane relief bill, farmers are advised not to rely on this occurring soon. Link to the full article – Proposed FARM Act would have major impact – Brownfield Ag News
Below is a graphic illustrating how payments *might* look if the plan is approved as currently proposed.
Quick Commodity Price Chat
- December Corn prices are up by a dime since Friday, buoyed by significant gains in the wheat market. The national average cash corn price has increased by 3 cents to $4.04 per bushel. Corn Dec ’24 Futures Price – Barchart.com
- Total shipments for the marketing year have reached 9.062 million metric tons (356.77 million bushels), marking a 31.88% increase compared to the same period last year and a six-year high for this week.
If you’re anticipating a price increase, it’s wise to have a target in mind and act when it reaches that point. Just because prices are on the rise doesn’t guarantee they will continue to climb.
From the Boots on the Ground at ARM
There is a significant connection among the regions highlighted below, with all expressing concerns about land rent for 2025. In our next newsletter, we will conduct an analysis of land rent trends throughout ARM’s coverage area.
Let’s get started in the South.
In Louisiana, the harvest is finished! However, basis prices are still negative, and many farmers are holding onto their crops in hopes of better pricing. Cotton ginning is underway, and although not much is being reported about the grades, yields have been average. Cash rent for 2025 is top of mind, as many are concerned if the price per acre will work with current commodity prices.
Moving over to Arkansas, harvest conditions have been quite dry. Recent rainfall has complicated the conclusion of the harvest. Overall, rice and corn yields have been above average, while soybean yields are average. A hot topic in the region is the rising cash rent for farmland. Farmers believe there may be opportunities to acquire new land for farming, but the costs associated with this may exceed what many farmers can currently afford.
Now to the North.
In South Dakota, the corn crop performed well, with most yields meeting or surpassing expectations. Soybeans, however, faced challenges due to a dry spell later in the season, impacting their yield. Farmers without variable rent agreements are particularly anxious about the 2025 growing season. North Dakota, on the other hand, experienced a less favorable season, with no crops exceeding expectations. The growing season began with a significant number of prevent plant acres, and while the crops that were planted performed adequately, it was not an exceptional year overall.