Last week, the US Department of Agriculture released its updated Plant Hardiness Zone Map (PHZM). This well-known resource for home gardeners and large-scale producers alike has undergone an overhaul from its last version, which was published in 1990.
Although 2011 was a year to be remembered for record flooding, the last 5 months of the year have been much drier than normal, a welcome change for many who delayed field work or wanted to get a few more outdoor chores done before a deep snow cover locked them in. December 2011 continued the trend of the last several months, and was both warmer and drier than normal across South Dakota. Many climate observing sites placed in the top ten warmest and/or driest December on record last month, according to preliminary data.
Recent dry conditions and a lack of snow cover are having an interesting impact on soil temperature conditions. Obviously, the lack of snow cover, which usually insulates the soil, has allowed the soil to be exposed and respond to air temperatures. The lack of moisture in the soil has allowed soil temperatures to respond quickly, also.
The Climate Prediction Center updated their 30 and 90 day outlooks for temperature and precipitation last week. The main change for the rest of winter in our area was a reduction in chances for wetter and colder conditions this winter.
Much of the attention in the ethanol fuel industry in the last few months has been on the end of the Volumetric Ethanol Excise Tax Credit (VEETC), commonly referred to as the blender’s credit, on December 31, 2011. Certainly, the ethanol industry did ramp up production heading into the end of the year as it sought to capture as many credits as possible.
The release of the February World Agricultural Supply and Demand Estimates (WASDE) last Thursday prompted less market reaction than the release of the January WASDE report. Recall that last month’s report garnered a limit down move that was subsequently followed by a nearly 100% price retracement.
Live cattle prices in January were better than expected, rallying more than more than $5/cwt from the first to the third week of January. During that same time period, Choice boxed beef prices dropped nearly $10/cwt, while beef byproduct values were relatively constant. The result of these price changes was a dramatic reduction in beef packing margins, which will likely weigh on live cattle prices in weeks and months to come.
Cash prices are separated by region and a simple cash average price is then calculated for each specific region. The basis is calculated by subtracting the closing futures price of the nearby futures contract from the average cash price of grain in each of the six regions.
In the farm and ranch business today managers and employees can be overloaded with information making it hard to focus on the true essential items that will lead to success. This is where identifying key success factors (KSFs) can help.
A board of directors is a vital part of the governance and constitution of most businesses. The boards of family farms and businesses are many times a paper board only. Its purpose is limited to approving the business’s financials and other procedures that are required by law.
Accounting is often said to be “the universal language of business.” It is the process of recording what happens in a business on a daily basis. Accounting guidelines are used to record the dollars involved in each transaction.
This year’s high prices and income levels have made some individuals lax in their long term financial management. During periods of high volatility it is important to maintain high quality liquidity levels. Liquidity is a financial measure of how well the farm can meet its current obligations by using its current assets.