Profit Tips Article Archive

Cover Crop Adoption: Farmers’ perceived benefits & barriers

Cover crops are generally defined as crops planted between cash crops to cover and protect the soil. Some demonstrated benefits of cover crops include: reduced soil erosion, increased soil organic matter, increased biological diversity, increased nitrogen supply, and weed control. Depending on the farmers’ objectives, different species of cover crops can be planted. For example, if a farmer’s main objective is to increase nitrogen supply, then legume cover crops best suited to the farm area should be selected.

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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.

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USDA-ARMS Survey Data: Benefits for university agriculture research & outreach

Conducted since the mid-1990s, the USDA Agricultural Management Resource Survey (ARMS) is a multi-phase, multi-level nationwide survey of agricultural producers that collects information on a large sample of farms and their characteristics. Data collected includes financial performance, expenses, revenues, farm organization characteristics, farm management techniques, use of contracts, and operator demographic characteristics.

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Keep Carbon in the Picture: Modifying the cut and carry system

After a recent trip to Ethiopia, I began thinking about how farming on the steep, terraced hillsides of the rural highlands there might relate to agriculture across the rolling plains of South Dakota. As part of the Farmer-to-Farmer Program, jointly sponsored by USAID and Catholic Relief Services, I had the opportunity to speak with nearly 300 smallholder farmers about fertility and soil health.

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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.

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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.

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