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    Using Technical Indicators in Agricultural Commodity Marketing Plans

    Technical signals can be incorporated into agricultural marketing plans to identify decision points. There are many types of technical signals that can be utilized.

    Read More »

    Understanding New Generation Agricultural Marketing Contracts for Risk Management

    The emergence of complex grain marketing contracts, both over-the-counter products (e.g. accumulator contracts), and combinations of futures and vanilla options (e.g. price plus contracts), has complicated the management of farm portfolio risk. These new complex grain marketing contracts are often given unique names, and are unique in the way they manage risk.

    Read More »

    Farm Value-at-Risk for Soybeans: Brookings County, S.D.

    Calculating farm value at risk can be done using tools we have made available. This article looks at a histogram plot of the revenue risk for soybean production in Brookings County South Dakota in 2018.

    Read More »

    Creating a Commodity-Rule Based Marking Plan

    What is a dynamic commodity rule-based marketing plan? It is a plan that identifies decision points and actions. Each operation should have a unique rule-based marketing plan that reflects production costs, cash flow needs, and insurance coverage.

    Read More »

    Managing Agricultural Commodity Risk Using Value-at-Risk

    The emergence of agricultural insurance products and complex grain marketing contracts has complicated farm risk management decisions. With greater choices available, producers need to know how much risk can be reduced with each risk management product in order to choose a risk management portfolio that optimizes expected return relative to the risk they take.

    Read More »

    Farm Value-at-Risk for Corn: Brookings County, S.D.

    Calculating farm value at risk can be done using tools we have made available. This article looks at a histogram plot of the revenue risk for corn production in Brookings County, South Dakota in 2018.

    Read More »

    Graduation Presents You Didn’t Consider, But Should Have

    The Class of 2018 has, or soon will be, walking across the stage and shaking hands with the School Board President and receive their diplomas. This act officially moves them on to the next stage of their lives.

    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 »

    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 »

    Bookwork, The Missing Management Component: Part 4 - Consistency of Financial Records

    Consistency is important to many aspects of the ag operation: cattle are fed at a consistent time of day to prevent acidosis problems, cows are milked at a consistent time of day to maintain production levels, and herbicide protocols are mixed in a consistent manner to ensure proper coverage.

    Read More »

    Bookwork, The Missing Management Component: Part 3 - Balance Sheet Valuations

    The financial crash of the 1980’s has been attributed to changes in producer’s balance sheets, due to a decline in land prices. After this time, a two-column balance sheet was developed to help prevent that type of balance sheet collapse from occurring in the future.

    Read More »

    Wet and Cool October Ahead

    On September 30, NOAA’s Climate Prediction Center released an update to the October climate outlook. For the Northern Plains, there are some substantial changes to the previous outlook that was issued a couple of weeks ago.

    Read More »

    Storage Mold: Precautions to Avoid Grain Spoilage During Storage

    Harvesting of corn and soybean is underway and/or will soon be starting throughout the state. Growers need to be aware of storage mold which can spoil the grain during storage.

    Read More »

    Bookwork, The Missing Management Component: Part 2 - Depreciation Determination and Use

    In Part 1 of The Missing Management Component we covered the difference an accounting system makes on the Net Income Calculation. The Jones and Smith farms were equal in Net Cash Income, but there was a large discrepancy when the Accrual Method was used to include inventory changes and calculate the Net Income.

    Read More »

    Grain Storage: It Starts With Harvest

    As producers prepare to fire up combines for the 2018 fall harvest, there is much concern about commodity prices and markets. Many producers realize that it will be difficult to sell soybeans for the foreseeable future and are making preparations to store this commodity for a number of months or possibly longer.

    Read More »

    Bookwork, The Missing Management Component: Part 1 - Farm Income Determination

    It is fair to say that many ag producers do not like bookwork. Many times this job gets pushed to the side, until a bill is due or taxes need to be filed. It is also fair to say it is a missing component to the management of most operations.

    Read More »

    South Dakota Per Pair and Yearling Monthly Pasture Rental Rates for 2018

    The SDSU agricultural land value survey collected 2018 data statewide for cow-calf pairs and yearling monthly pasture rental rates based on South Dakota regions. The cow-calf pair statewide weighted average in 2018 was $48.41 with a high of $61.63 and a low of $35.26.

    Read More »

    Using Technical Indicators in Agricultural Commodity Marketing Plans

    Technical signals can be incorporated into agricultural marketing plans to identify decision points. There are many types of technical signals that can be utilized.

    Read More »

    South Dakota Per Pair and Yearling Monthly Pasture Rental Rates for 2018

    The SDSU agricultural land value survey collected 2018 data statewide for cow-calf pairs and yearling monthly pasture rental rates based on South Dakota regions. The cow-calf pair statewide weighted average in 2018 was $48.41 with a high of $61.63 and a low of $35.26.

    Read More »

    Using Technical Indicators in Agricultural Commodity Marketing Plans

    Technical signals can be incorporated into agricultural marketing plans to identify decision points. There are many types of technical signals that can be utilized.

    Read More »

    Understanding New Generation Agricultural Marketing Contracts for Risk Management

    The emergence of complex grain marketing contracts, both over-the-counter products (e.g. accumulator contracts), and combinations of futures and vanilla options (e.g. price plus contracts), has complicated the management of farm portfolio risk. These new complex grain marketing contracts are often given unique names, and are unique in the way they manage risk.

    Read More »

    Creating a Commodity-Rule Based Marking Plan

    What is a dynamic commodity rule-based marketing plan? It is a plan that identifies decision points and actions. Each operation should have a unique rule-based marketing plan that reflects production costs, cash flow needs, and insurance coverage.

    Read More »

    Managing Agricultural Commodity Risk Using Value-at-Risk

    The emergence of agricultural insurance products and complex grain marketing contracts has complicated farm risk management decisions. With greater choices available, producers need to know how much risk can be reduced with each risk management product in order to choose a risk management portfolio that optimizes expected return relative to the risk they take.

    Read More »

    Farm Value-at-Risk for Corn: Brookings County, S.D.

    Calculating farm value at risk can be done using tools we have made available. This article looks at a histogram plot of the revenue risk for corn production in Brookings County, South Dakota in 2018.

    Read More »

    2018 South Dakota Pasture Cash Rental Rates

    Average cash rental rates per-acre reflect regional differences in productivity and carrying capacity of pasture and rangeland tracts, with fluctuations in the commodity markets and potential profits, affecting cash rental rates.

    Read More »

    Rates of Return to Pasture and Cropland Diverge

    The gross rate of return to pasture versus cropland widened in 2018 to a 1.1 percentage point difference compared to 2017. Pasture/rangeland gross rate of return reported in the 2018 survey is 2.4% and for non-irrigated cropland is 3.5% compared to 2017 rates of return at 2.8% for pasture and 3.5% for non-irrigated cropland.

    Read More »

    2018 Cropland and Pasture Value Changes

    Weighted-average state cropland values were basically unchanged from 2017 to 2018, with a slight increase of less than one percent at 0.9%. However, pasture/rangeland weighted-average value increased 3.0% statewide.

    Read More »

    2018 SDSU Land Value Cash Rental Rate Overview

    According to the 2018 SDSU Farm Real Estate Market Survey statewide change in average cash rental rates per-acre from 2017 to 2018 was positive for cropland and unchanged for pasture/rangeland.

    Read More »

    Bookwork, The Missing Management Component: Part 4 - Consistency of Financial Records

    Consistency is important to many aspects of the ag operation: cattle are fed at a consistent time of day to prevent acidosis problems, cows are milked at a consistent time of day to maintain production levels, and herbicide protocols are mixed in a consistent manner to ensure proper coverage.

    Read More »

    Bookwork, The Missing Management Component: Part 3 - Balance Sheet Valuations

    The financial crash of the 1980’s has been attributed to changes in producer’s balance sheets, due to a decline in land prices. After this time, a two-column balance sheet was developed to help prevent that type of balance sheet collapse from occurring in the future.

    Read More »

    Wet and Cool October Ahead

    On September 30, NOAA’s Climate Prediction Center released an update to the October climate outlook. For the Northern Plains, there are some substantial changes to the previous outlook that was issued a couple of weeks ago.

    Read More »

    Bookwork, The Missing Management Component: Part 2 - Depreciation Determination and Use

    In Part 1 of The Missing Management Component we covered the difference an accounting system makes on the Net Income Calculation. The Jones and Smith farms were equal in Net Cash Income, but there was a large discrepancy when the Accrual Method was used to include inventory changes and calculate the Net Income.

    Read More »

    Grain Storage: It Starts With Harvest

    As producers prepare to fire up combines for the 2018 fall harvest, there is much concern about commodity prices and markets. Many producers realize that it will be difficult to sell soybeans for the foreseeable future and are making preparations to store this commodity for a number of months or possibly longer.

    Read More »

    Bookwork, The Missing Management Component: Part 1 - Farm Income Determination

    It is fair to say that many ag producers do not like bookwork. Many times this job gets pushed to the side, until a bill is due or taxes need to be filed. It is also fair to say it is a missing component to the management of most operations.

    Read More »

    South Dakota Per Pair and Yearling Monthly Pasture Rental Rates for 2018

    The SDSU agricultural land value survey collected 2018 data statewide for cow-calf pairs and yearling monthly pasture rental rates based on South Dakota regions. The cow-calf pair statewide weighted average in 2018 was $48.41 with a high of $61.63 and a low of $35.26.

    Read More »

    Using Technical Indicators in Agricultural Commodity Marketing Plans

    Technical signals can be incorporated into agricultural marketing plans to identify decision points. There are many types of technical signals that can be utilized.

    Read More »

    Understanding New Generation Agricultural Marketing Contracts for Risk Management

    The emergence of complex grain marketing contracts, both over-the-counter products (e.g. accumulator contracts), and combinations of futures and vanilla options (e.g. price plus contracts), has complicated the management of farm portfolio risk. These new complex grain marketing contracts are often given unique names, and are unique in the way they manage risk.

    Read More »

    Farm Value-at-Risk for Soybeans: Brookings County, S.D.

    Calculating farm value at risk can be done using tools we have made available. This article looks at a histogram plot of the revenue risk for soybean production in Brookings County South Dakota in 2018.

    Read More »

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