farmdoc daily

The 2025 CROP INSURANCE DECISION TOOL: LOWER ECO FARMER-PAID PREMIUM — by Gary Schnitkey, Ryan Batts, Nick Paulson and Carl Zulauf The 2025 Crop Insurance Decision Tool has been released to aid in crop insurance decisions. It is a Microsoft Excel workbook that can be downloaded from farmdoc daily. It provides farmer-paid premiums for different federally regulated policies administered through the Risk Management Agency. Using 2024 projected prices and volatilities, farmer-paid premiums for most policies would be similar to last year, except those related to the Enhanced Coverage Option (ECO). ECO’s premiums will be lower because of an increase in premium support. Read more: https://lnkd.in/gGFwpzEz #crop #insurance #premiums #farmer #prices #coverage

THE EVOLVING NATURE OF PRECISION AG: THE CONFLUENCE OF SOCIETAL INTERESTS AND PRECISION AGRICULTURE — by Steve Sonka The term confluence refers to the coming together of two powerful forces – think of the Mississippi River’s confluence with the Missouri River north of St. Louis. For precision agriculture, two driving forces are the emerging advances in technology and the evolution of society’s expectations of the food and ag system. This article expanded the horizon of agricultural decisions to include technological applications enabling farmers to better respond to societal concerns, such as environmental effects and carbon sequestration. While presented individually, it is the integrated effect of these and other future technologies which should enhance profitability and effectively respond to societal interests. Farmers and managers who routinely search out and evaluate these opportunities are likely to earn the early adopter benefits. Read more: https://lnkd.in/e94UM59F #precision #agriculture #technology #food #farmers #society

In today's shorter-than-normal edition of the Weekly Roundup Newsletter from farmdoc daily, we provide an outlook for farmland values, with current fundamentals suggesting land value reductions of around 3% in 2025. We also take a deep dive into the evolving nature of precision agriculture and look at where that evolution could lead. Here's a look at last week's work:

MULTICROP INSURANCE — by Carl Zulauf and Gary Schnitkey Most crop insurance is bought for a single crop. Since prices, yields, and revenues are not perfectly correlated across crops, multicrop insurance has the potential to reduce premiums, an important factor in farmers’ crop insurance decisions. Insuring corn and soybeans jointly as opposed to individually is found to reduce indemnities/premiums by 19% on average for the states in this study. Adding wheat to corn-soybean multicrop insurance reduces indemnities/premiums by 37%. A strong interaction is found between multicrop insurance and irrigation, resulting in further reductions. Read more: https://lnkd.in/eMMphDCC #crop #insurance #prices #yields #revenues #corn #soybeans #wheat #irrigation

OUTLOOK FOR FARMLAND VALUES IN 2025 — by Nick Paulson, Gary Schnitkey and Carl Zulauf Lower returns to rented land and higher interest rates began to signal the potential for downward pressure on farmland values in 2023. Those signals continue, with current fundamentals suggesting land value reductions of around 3% in 2025. A 3% decline would be in line with observed adjustments since the 1980s as well as expectations from professional farm managers surveyed in 2024. On the other hand, valid arguments exist for continued strength in farmland values. In particular, strength in the average financial position of grain farms suggests declines in farmland values, if they occur, are not likely to be significant in the short term. Read more: https://lnkd.in/eFXWs-TV #farmland #interestrates #value #land #farm #grain

THE EVOLVING NATURE OF PRECISION AG: FORWARDS TOWARDS THE 2040s — by Steve Sonka In this article, a diverse set of future agricultural applications has been used as examples of enhanced decision-making methods that could be routinely employed by the 2040s. An underlying purpose for describing those examples was to illustrate capabilities that are currently emerging, such as autonomous farm vehicles of large and small size, massively expanded remote sensing networks integrating multiple means of data collection, and analytics which will employ concepts we’ve become introduced to in the last decade such as Big Data, Cloud Storage, and Traditional and Generative AI. While individually intriguing, it is the combined effect and application of these technologies that will drive performance. Farmers and managers who lead in integrating them on the farm are likely to earn the early adopter benefits. Read more: https://lnkd.in/e-kX4KE4 #agriculture #technology #autonomous #analytics #data #farm #farmers

Happy Monday and happy (almost) #Thanksgiving to all who celebrate! In today's Weekly Roundup Newsletter from farmdoc daily, we discuss why a new #FarmBill is not in the cards in the lame duck session of Congress. We also analyze corn acreage trends in South America, which show steady planted #corn acreage in #Brazil but a decline in #Argentina during the 2024/25 crop season. Here's a look at last week's work:

ILLINOIS FARM ECONOMICS SUMMITS The Illinois Farm Economics Summit returns this December to help producers and landowners navigate the latest economic conditions and policy issues impacting Illinois agriculture. Join us at one of three in-person events where the farmdoc daily team will analyze factors shaping farm profitability this year through presentations and Q&A on crop budgets, grain markets, risk management, farm policy, land values, and more. The farmdoc daily team of experts will provide information and insights to aid with management decisions during this period of financial stress. The summits are scheduled for: - Monday, Dec. 16 in Mt. Vernon, IL  - Tuesday, Dec. 17 in Peoria, IL  - Wednesday, Dec. 18 in Dekalb, IL Register here to attend: https://lnkd.in/ecjGF3R

BIOFUELS WEBINAR SERIES Due to the breadth of material to be covered, our previously announced #biofuels #webinar will now be presented as a two-part series. farmdoc daily's Scott H. Irwin will first deliver a session on Wednesday, Dec. 4, that will analyze the outlook for #ethanol and #SAF in the next several years and examine how the re-election of President Donald Trump has created layers of policy uncertainty. Then, on Dec. 11, Irwin will take a deep dive into the outlook for #renewable #diesel and FAME #biodiesel, focusing especially on how renewable diesel experienced a truly historic boom starting in 2021 but has started to plateau recently. Register here for both webinars: https://lnkd.in/edZS_k4w

REAUTHORIZATION OR RECONCILIATION: THOUGHTS ON THE FARM BILL'S PROSPECTS — by Jonathan Coppess Given the outcomes of the election, no action on Congress reauthorizing the Farm Bill will take place in the lame duck session. A majority of American voters placed their bets on Republicans in the 2024 election, with the party winning a trifecta (regaining the Presidency and a Senate majority, while retaining control of the House of Representatives). A bill with billions of dollars in food and agricultural policy for the next five years is not in the cards. Another year-long extension will kick the can down the road and punt the matter to the next (119th) Congress, where the prospects are difficult to predict. To handicap Farm Bill reauthorization, this discussion detours through a review of budget reconciliation and a few slices of history. Read more: https://lnkd.in/gde5ii9Q #FarmBill #Congress #food #agriculture #policy #budget