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    Tax Implications of Drought Induced Livestock Sales

    As South Dakota producers affected by severe drought have either made non-traditional livestock sales or plan to sell a larger than normal number of breeding animals in 2017, this article provides information and examples about two different tax treatments producers should be talking to their tax advisor or consultant about.

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    Exchange Rates and Their Effect on U.S. Sheep Industry

    Per capita lamb and mutton consumption is fairly stable in the U.S. Imports of lamb have offset the decline in domestic production in recent years. Lamb and mutton imports, currently account for nearly half of U.S. consumption, are mainly from Australia (about 68-70 percent) and New Zealand (about 30-32 percent).

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    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.

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    Expectations for Pasture Rental Rates 2016-2017

    The cash rental rates for pasture/rangeland in South Dakota last year saw some fairly large increases across the state. Despite a downward change in feed and live cattle prices in 2015, cash rental rates still increased. The state average for pasture/ rangeland rental was $31.40 per acre in 2015 and $28.40 in 2014.

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    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.

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    Cover Crops & Livestock Integration: An opportunity for profit on S.D. farms

    Cover crops have been gaining a reemerging acceptance over the last decade, with very few producers disagreeing about the potential soil health benefits of adding cover crops to their farming operation. However, with low commodity prices producers are trying to reduce expenses on inputs, especially on inputs with a varying or unknown return.

    Read More »

    Pasture, Rangeland, Forage Rainfall Index (PRF-RI) Insurance for 2018

    Sporadic rainfall early in 2017 focused attention on insurance for pasture and forages for livestock feed. The primary product, Pasture, Rangeland, and Forage (PRF) insurance, is offered nationwide. In South Dakota the coverage is based on a Rainfall Index (PRF-RI) with indemnity payments tied to a lack of rainfall in a given area.

    Read More »

    Tax Implications of Drought Induced Livestock Sales

    As South Dakota producers affected by severe drought have either made non-traditional livestock sales or plan to sell a larger than normal number of breeding animals in 2017, this article provides information and examples about two different tax treatments producers should be talking to their tax advisor or consultant about.

    Read More »

    2017 Rates of Return to Land

    According to results from a farm real estate survey conducted by agricultural economists at South Dakota State University, cash rates-of-return for all uses of agricultural land in the state declined slightly during the 1990’s and declined substantially from 2001 to the present.

    Read More »

    Fall Frost/Freeze Dates 2017

    Around this time of year, South Dakotans are expecting a hard frost to bring a conclusion to the growing season. Late September and early October are the average fall frost dates for most areas of the state, particularly in the Eastern Regions.

    Read More »

    Fall Climate Outlook 2017

    Fall harvest season is upon us, although the corn and soybean crops are slow to mature and dry down this year. Corn in the East Central Region has been slow to progress this year, as it has been behind average on accumulating growing degree days throughout the late summer.

    Read More »

    2017 South Dakota Agricultural Land Values

    There is considerable variation in land values within each Region and for each non-irrigated agricultural land use. For example, 2017 cropland values in the East-Central region vary from an average of $4,186 (in the Sanborn, Davison, Hanson and Kingsbury cluster) per-acre for low-productivity cropland to $9,025 (Minnehaha-Moody cluster) per-acre for high-productivity cropland.

    Read More »

    2017 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 »

    Pasture, Rangeland, Forage Rainfall Index (PRF-RI) Insurance for 2018

    Sporadic rainfall early in 2017 focused attention on insurance for pasture and forages for livestock feed. The primary product, Pasture, Rangeland, and Forage (PRF) insurance, is offered nationwide. In South Dakota the coverage is based on a Rainfall Index (PRF-RI) with indemnity payments tied to a lack of rainfall in a given area.

    Read More »

    2017 Rates of Return to Land

    According to results from a farm real estate survey conducted by agricultural economists at South Dakota State University, cash rates-of-return for all uses of agricultural land in the state declined slightly during the 1990’s and declined substantially from 2001 to the present.

    Read More »

    2017 South Dakota Agricultural Land Values

    There is considerable variation in land values within each Region and for each non-irrigated agricultural land use. For example, 2017 cropland values in the East-Central region vary from an average of $4,186 (in the Sanborn, Davison, Hanson and Kingsbury cluster) per-acre for low-productivity cropland to $9,025 (Minnehaha-Moody cluster) per-acre for high-productivity cropland.

    Read More »

    2017 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 »

    2017 SDSU Land Value Cash Rental Rate Overview

    According to the 2017 SDSU Farm Real Estate Market Survey average cropland value for the state is $3,903, down 4.7% from 2016. Cropland values saw continued pressure due to low margins for cropland production. Pasture land was steady to slightly down with a decrease of 0.6% and with state average value of $1,215.

    Read More »

    Changes to the 2017 Ag Land Value Survey

    This year marked a year of changes for the SDSU land value survey. The survey was condensed down to incorporate alfalfa hay into crop land and pasture/rangeland now incorporates all grass acres including tame pasture. These changes were made to better reflect the current land use in the state.

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    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.

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    Protecting Higher Cattle Prices

    In early 2017 cattle producers were frustrated by price levels below where fundamental indications suggested they could be. In recent weeks the cash and futures prices have moved higher, finally providing an opportunity for producers wanting solid price protection across different cattle sectors. It may also be a time for any hedgers that implemented protection strategies early in the year to revisit coverage and perhaps roll up to higher floor prices or lock in higher price levels available now.

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    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 »

    Cover Crops & Livestock Integration: An opportunity for profit on S.D. farms

    Cover crops have been gaining a reemerging acceptance over the last decade, with very few producers disagreeing about the potential soil health benefits of adding cover crops to their farming operation. However, with low commodity prices producers are trying to reduce expenses on inputs, especially on inputs with a varying or unknown return.

    Read More »

    Tax Implications of Drought Induced Livestock Sales

    As South Dakota producers affected by severe drought have either made non-traditional livestock sales or plan to sell a larger than normal number of breeding animals in 2017, this article provides information and examples about two different tax treatments producers should be talking to their tax advisor or consultant about.

    Read More »

    2017 Rates of Return to Land

    According to results from a farm real estate survey conducted by agricultural economists at South Dakota State University, cash rates-of-return for all uses of agricultural land in the state declined slightly during the 1990’s and declined substantially from 2001 to the present.

    Read More »

    Fall Frost/Freeze Dates 2017

    Around this time of year, South Dakotans are expecting a hard frost to bring a conclusion to the growing season. Late September and early October are the average fall frost dates for most areas of the state, particularly in the Eastern Regions.

    Read More »

    Fall Climate Outlook 2017

    Fall harvest season is upon us, although the corn and soybean crops are slow to mature and dry down this year. Corn in the East Central Region has been slow to progress this year, as it has been behind average on accumulating growing degree days throughout the late summer.

    Read More »

    SD Group Attends 2017 North American Manure Expo in Wisconsin

    In preparation for 2018, several members of the South Dakota North American Manure Expo (NAME) planning committee traveled to Arlington, WI on August 22-23 to attend the 2017 Expo, hosted by the University of Wisconsin Cooperative Extension and partners.

    Read More »

    2017 South Dakota Agricultural Land Values

    There is considerable variation in land values within each Region and for each non-irrigated agricultural land use. For example, 2017 cropland values in the East-Central region vary from an average of $4,186 (in the Sanborn, Davison, Hanson and Kingsbury cluster) per-acre for low-productivity cropland to $9,025 (Minnehaha-Moody cluster) per-acre for high-productivity cropland.

    Read More »

    2017 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 »

    2017 SDSU Land Value Cash Rental Rate Overview

    According to the 2017 SDSU Farm Real Estate Market Survey average cropland value for the state is $3,903, down 4.7% from 2016. Cropland values saw continued pressure due to low margins for cropland production. Pasture land was steady to slightly down with a decrease of 0.6% and with state average value of $1,215.

    Read More »

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