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.
SDSU Extension publishes the South Dakota Pest & Crop Newsletter to provide growers, producers, crop consultants, and others involved in crop production with timely news pertinent to management of pests, diseases, and weeds in South Dakota.
Crop performance testing results are released annually through the activities of SDSU Extension and the South Dakota Agricultural Experiment Station at SDSU.
Cash rents are under pressure as farm incomes continue to decrease. This leads to the question, “How do I determine a fair cash rent for my farm?”
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.
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.
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.
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.
It seems this year will be another challenging one for agriculture in South Dakota and the nation overall. In reality it might not be strikingly different from the three previous ones albeit with maybe somewhat tighter margins. US agriculture is increasingly dependent on global markets, and the success or not of their own agricultural production.
There was a time in agriculture when greater yields always meant greater profitability. Today’s economic environment is characterized by high input costs and depressed commodity prices. Under this scenario when the optimum input/output relationship has been attained, more inputs do not necessarily result in greater returns on investment. Therefore, todays’ agriculture paradigm requires management that addresses production “optimization”. This is the point where a previously known level of inputs maximizes outputs before incurring into greater investments that result into diminishing returns.