The coronavirus and its control measures have changed economic outlook, leading to lower soybean prices. This webinar will discuss ways for farmers to deal with this situation, covering the latest in Federal and state programs to provide aid for farmers and look at up-to-date price and income outlooks for farmers. We will also look at guidance for management decisions for the upcoming growing season.
Presenter: Gary Schnitkey, Professor, Department of Agricultural and Consumer Economics at the University of Illinois at Urbana-Champaign
Gary Schnitkey, Ph.D., is a professor and farm management specialist in the Department of Agricultural and Consumer Economics at the University of Illinois at Urbana-Champaign (UIUC) and regularly contributes content to farmdoc Daily. Schnitkey focuses on farm management and risk management by examining issues impacting the profitability of grain farms including corn-soybean rotations, machinery economics and factors separating profitable from unprofitable farms. Schnitkey grew up on a grain and hog farm in northwest Ohio and received his Bachelor of Science degree from The Ohio State University and a master’s degree and Ph.D. from UIUC.
Gary’s Five Points of Advice:
Consider planting soybeans on “switchable” acres
Economics have changed and favor soybeans over corn
Grab all cash (PPP and EIDL), conserve all working capital
Farm outlook for 2020 looks ok (will probably see losses)
Cash flow will be helpful in 2021, though
Coronavirus Food Assistance Program – 27% of MFP 2019
About a $15 to $25 per acre payment
Start marketing remaining 2019 crop
Adjust 2020 crop marketing goals to lower prices
If we have a high soybean yield we could potentially reduce farm loss
Ethanol losses having more severe impacts on corn than soybeans
Realize the danger in setting 2021 cash rents at current levels
Still seeing low returns in early 2021 projected budgets
2021 budgets released from farmdocDAILY in 2021 – will not include any MFP or government aid
The Illinois Soybean Association (ISA) checkoff and membership programs represent more than 43,000 soybean farmers in Illinois. The checkoff funds market development, soybean production and government relations efforts, while the membership program, Illinois Soybean Growers (ISG) and the Illinois Soybean Growers PAC actively advocates for positive and impactful legislation for farmers at local, state and national levels. ISA upholds the interests of Illinois soybean farmers through promotion, advocacy, research and education with the vision of becoming a trusted partner of Illinois soybean farmers to ensure their profitability now and for future generations.