Hot Button Issues
Welcome to the inaugural ARM Newsletter of 2025! We have quite a bit to discuss! On December 20th, Congress approved a bill aimed at averting a government shutdown. Among its provisions was a substantial $110 billion earmarked for Disaster Assistance, with $10 billion specifically designated for economic support for farmers. Furthermore, the existing farm bill, originally established in 2018, has been extended until September 2025. This extension ensures that existing payment programs (ARC/PLC) and crop insurance terms will continue through the 2025 crop year.
Link to full article: A closer look into farm assistance in the recently passed continuing resolution – Agweek | #1 source for agriculture news, farming, markets.
*The chart below illustrates the payment amounts per acre as outlined in the aforementioned bill.
Quick Commodity Price Chat
- March corn prices have surged significantly since January 9th, with an increase of nearly 20 cents. This rise follows a more optimistic USDA report that revised corn and soybean yield estimates.
- The national average corn price currently stands at $4.40.
- There has been a steady stream of farmer sales being reported across the country, as this is the rally many were waiting for.
From the Boots on the Ground at ARM
Let’s get started in the South.
Georgia has faced a tough battle with nature, experiencing a six-week drought during the hottest summer months, followed by an unprecedented hurricane in late September that severely impacted yields. Even irrigated crops struggled under the intense summer heat before the hurricane wreaked havoc on what remained. As farmers in Georgia plan for 2025, it is clear that challenges lie ahead.
North Carolina has encountered similar weather challenges, plagued by drought followed by tropical storms. Many farmers are experiencing disappointing yields and prices, leading to significant shortfalls within the ag community. As they look toward 2025, many farmers are uncertain about their crop mix, with cotton prices plummeting and tobacco growers awaiting clarity on demand as China, a major importer of US tobacco, remains tight lipped about potential tariffs.
Now to the North.
In Iowa, often haled as the “Queen of Corn”, cash flow remains tight, similar to the rest of the nation. However, it’s not all negative in the kingdom. Farmers with diversified operations that include cattle are benefiting from rising beef prices. Additionally, both feed and ethanol plants are supporting corn cash prices across various areas in the state. Unfortunately, fertilizer prices remain high and have not decreased, even as commodity prices have substantially fallen.