Profit Tips

Resource Library

  • Publications
  • Articles
  • Videos
  • News
  • Events

    Ag Land Values Decrease Statewide on Average

    From 1991 to 2015, agricultural land values in South Dakota, and in most other major agricultural production states, appreciated each year. In 2016 on average all agricultural use land decreased in South Dakota except rangeland, which will be discussed in a future article.

    Read More »

    Decrease in Gross Cash Rent to Value Ratio: What does it mean for SD land investors?

    The current average cash rent to value rates of return on agricultural land in South Dakota remain very low. The rent to value (RTV) ratio is calculated by taking the cash rent per acre divided by the land value per acre. This calculation is an approximation for how rapidly an asset will pay for itself. The 2016 average RTV of land value was 2.7% for all agricultural land. Categorically, the average was 3.3% for cropland, and 2.4% for rangeland. During the 1990s, the same ratios were 7.4% for all agricultural land, 8.0% for cropland, and 6.8% for rangeland.

    Read More »

    Working Capital for South Dakota Farms

    Many farms in South Dakota built working capital and financial reserves between 2009 and 2012, a recent period of relatively high returns. Since 2013 the strong working capital position has been on a downward trend. Figure 1 shows average working capital positon per acre of farms enrolled in South Dakota Center for Farm and Ranch Management (SDCFRM) program.

    Read More »

    Key Corn Production Costs Trends and Rent

    Crop production costs have not adjusted to the decrease in revenues received from them. The major costs (direct and fixed) which include seed, fertilizer, machinery, management and labor and cash rent, have not decreased as much as the revenues that farm operators have received in recent years. The costs for 2015 did decline from 2014 with most of the decrease coming from fertilizer and cash rent. Cost control will need to continue in 2017 as revenues are down and Agricultural Risk Coverage (ARC-CO) payments will likely decrease.

    Read More »

    Crop Rental Rates Down for Second Year in 2016

    This past year crop rental rates declined state wide compared to 2015. In 2015 the average rental rate for cropland across South Dakota was $145.10 per acre in 2016 the average was $141.00 per acre. This is a 2.8% decrease in the cropland rental rate state wide. This follows up a 3.3% decrease in 2015 as well. Some regions, such as the Northeast had greater decreases (12%), while others such as the Southwest had lower decreases (1.9%). The continuation of the decrease in crop rental rates is likely due to the current economic conditions.

    Read More »

    2016 Farm Family Income Expectations: What they mean

    The 2016 forecast of national net farm income was recently released by the USDA Economic Research Service (ERS). The ERS estimates a 3 percent decline compared to 2015 income figures. This is a potential decrease of $1.65 billion dollars in net farm income, a reduction in farm income from $56.45 billion in 2015 to $54.8 billion in 2016.

    Read More »

    FSA Disaster Assistance During Times of Drought

    As drought conditions continue, counties within the hardest hit areas have an opportunity to apply for emergency funding for farmers and ranchers requiring assistance with water relief and water conservation measures through the USDA Farm Service Agency.

    Read More »

    Annual Forages for Feed

    With the early onset of drought, many livestock producers are concerned about feed supplies. Annual forages may be an option for producers on unplanted fields with good moisture reserves or on failed fields when soil moisture levels improve.

    Read More »

    South Dakota Climate & Drought Summary

    As of June 15, 2017, 45% of South Dakota is in drought, and an additional 35% is experiencing abnormally dry conditions. The last four weeks have been marked by rapid degradation in drought severity and extent.

    Read More »

    Is Drought Affecting You?

    Drought conditions have rapidly worsened in South Dakota over the last two weeks. A dry spring season affected early growth in grasses, pastures and yards across much of the northern and central regions. Now that the heat has been turned on, it is challenging for SDSU Extension and others who monitor drought conditions to keep up with the impacts of drought around the state.

    Read More »

    The Cost of Late Calvers

    Pounds of beef sold is a key number for cattlemen. Late calvers the cows that drag out the calving season, may cost producers more than extra work and management, they may actually be costing dollars. Standardized Performance Analysis (SPA) has been around for decades. This tool helps determine what the actual costs to raise a calf from breeding to weaning. Many producers create a budget for marketing and financing purposes, but SPA calculates the real, final costs.

    Read More »

    Expectations of Farm Income

    Two methods of measuring farm income are used and reported on by the United States Department of Agriculture (USDA) and other reporting sources, Net Cash Farm Income and Net Farm Income. While the two use very similar words, the formulas and use of them is different, and should be understood when reading reports regarding one or the other to discuss and understand the current farm income situation.

    Read More »

    The Ethics of Decision Making

    Leaders often make challenging decisions. In your leadership role, you agreed to take on the responsibility that comes with the role and your actions are constantly being viewed by others. How you choose to make decisions will impact the type of leader you are and how followers like employees, committee members or volunteers will respect you. Will they view you as a leader with integrity or not?

    Read More »

    Bringing the Next Generation Back - Part 1: Wealth Distribution

    Answering the tough questions about transitioning the operation to the next generation is an important step for farm families. It is also a step that is often missed. “It’s family, it will all work itself out” is a common myth believed by fathers, sons, moms and daughters. This perception sets the family up for discord, unfavorable work conditions and the failure of the operation to pass to the next generation. Those three situations are rarely the goals the family has for personal relationships or the business.

    Read More »

    Breakeven Yields: Corn & Soybeans

    The 2016 U.S. crop-year showed record acreage for soybeans and a large acreage for corn. The combination of more acres, warm temperatures, and adequately-timed rainfall events, resulted in also record yields. According to the NASS stocks for corn and soybeans have been increasing since 2014, a trend that’s likely to continue in 2017.

    Read More »

    The Cost of Late Calvers

    Pounds of beef sold is a key number for cattlemen. Late calvers the cows that drag out the calving season, may cost producers more than extra work and management, they may actually be costing dollars. Standardized Performance Analysis (SPA) has been around for decades. This tool helps determine what the actual costs to raise a calf from breeding to weaning. Many producers create a budget for marketing and financing purposes, but SPA calculates the real, final costs.

    Read More »

    Expectations of Farm Income

    Two methods of measuring farm income are used and reported on by the United States Department of Agriculture (USDA) and other reporting sources, Net Cash Farm Income and Net Farm Income. While the two use very similar words, the formulas and use of them is different, and should be understood when reading reports regarding one or the other to discuss and understand the current farm income situation.

    Read More »

    Farm & Ranch Taxes: 2016 Changes

    Tax rules and regulations change annually, so it is important for producers and tax professionals to stay up to date. For 2016 there have been some changes to the farmers and ranchers tax guide. This article will highlight the majority of the 2016 updates.

    Read More »

    Insuring Corn and Other Spring Crops

    With producers evaluating marketing strategies and the looming March 15 insurance sales deadline, several trends are emerging. By monitoring these trends, producers may be able to refine their marketing plans for corn, soybeans and spring wheat. New crop futures prices are tallied during February and their average during the month determines the projected price for insurance purposes.

    Read More »

    Ag Land Values Decrease Statewide on Average

    From 1991 to 2015, agricultural land values in South Dakota, and in most other major agricultural production states, appreciated each year. In 2016 on average all agricultural use land decreased in South Dakota except rangeland, which will be discussed in a future article.

    Read More »

    Decrease in Gross Cash Rent to Value Ratio: What does it mean for SD land investors?

    The current average cash rent to value rates of return on agricultural land in South Dakota remain very low. The rent to value (RTV) ratio is calculated by taking the cash rent per acre divided by the land value per acre. This calculation is an approximation for how rapidly an asset will pay for itself. The 2016 average RTV of land value was 2.7% for all agricultural land. Categorically, the average was 3.3% for cropland, and 2.4% for rangeland. During the 1990s, the same ratios were 7.4% for all agricultural land, 8.0% for cropland, and 6.8% for rangeland.

    Read More »

    Key Corn Production Costs Trends and Rent

    Crop production costs have not adjusted to the decrease in revenues received from them. The major costs (direct and fixed) which include seed, fertilizer, machinery, management and labor and cash rent, have not decreased as much as the revenues that farm operators have received in recent years. The costs for 2015 did decline from 2014 with most of the decrease coming from fertilizer and cash rent. Cost control will need to continue in 2017 as revenues are down and Agricultural Risk Coverage (ARC-CO) payments will likely decrease.

    Read More »

    FSA Disaster Assistance During Times of Drought

    As drought conditions continue, counties within the hardest hit areas have an opportunity to apply for emergency funding for farmers and ranchers requiring assistance with water relief and water conservation measures through the USDA Farm Service Agency.

    Read More »

    Annual Forages for Feed

    With the early onset of drought, many livestock producers are concerned about feed supplies. Annual forages may be an option for producers on unplanted fields with good moisture reserves or on failed fields when soil moisture levels improve.

    Read More »

    South Dakota Climate & Drought Summary

    As of June 15, 2017, 45% of South Dakota is in drought, and an additional 35% is experiencing abnormally dry conditions. The last four weeks have been marked by rapid degradation in drought severity and extent.

    Read More »

    Dry Conditions: Hope for the best, but prepare for the worst.

    Most of the Great Plains have always been considered a semi-arid area of the U.S. This Region is characterized by hot, relatively short summers (with a rainfall pattern), and usually cold, dry winters. Annual precipitation increases by almost 70 percent between the Western (East of the Rockies) and Eastern ends of the Region.

    Read More »

    South Dakota Drought Update: June 6, 2017

    Dryness has been lingering in South Dakota for the last several weeks. The month of May was near average for temperature, and even a little on the cool side for the Eastern region. But now that temperatures have soared into the nineties and above, in combination with some wind, drought conditions have rapidly taken over Northern South Dakota.

    Read More »

    Is Drought Affecting You?

    Drought conditions have rapidly worsened in South Dakota over the last two weeks. A dry spring season affected early growth in grasses, pastures and yards across much of the northern and central regions. Now that the heat has been turned on, it is challenging for SDSU Extension and others who monitor drought conditions to keep up with the impacts of drought around the state.

    Read More »

    2017 West River Field School: June 20th in Rapid City, S.D.

    The third annual SDSU West River Field School is set for June 20th and will be held at The SDSU West River Ag Center. This event is intended to provide continuing education to crop advisors and others who work with farmers and ranchers in central and western South Dakota. Attendees will have a chance to receive hands-on, in-field experience during this one-day event.

    Read More »

    Summer Season Climate Outlook 2017

    The long-range outlook for the summer climate was released on Thursday, May 18. With the recent rains and transition to cooler temperatures, will this trend last for a while? The last couple of weeks of May are more likely to stay on the cooler side of average, according to NOAA’s Climate Prediction Center. Rainfall is also projected to taper off this weekend, and South Dakota will turn drier again for the rest of the month.

    Read More »

    The Ethics of Decision Making

    Leaders often make challenging decisions. In your leadership role, you agreed to take on the responsibility that comes with the role and your actions are constantly being viewed by others. How you choose to make decisions will impact the type of leader you are and how followers like employees, committee members or volunteers will respect you. Will they view you as a leader with integrity or not?

    Read More »

    Sign Up For Email!

    • Field Staff Listing
    • South Dakota 4HOnline