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September 2013 Archive for Farmland Forecast

RSS By: Marc Schober, AgWeb.com

Marc Schober is the editor of Farmland Forecast an educational blog devoted to investments in agriculture and farmland.

Crop Progress: Corn Conditions Unchanged

Sep 30, 2013

Corn conditions remained unchanged over the last week. Corn and soybean harvests are both behind their historical five year averages.

As of September 29, 2013, 16% of the corn crop was in poor or very poor condition, unchanged from last week. Corn in good or excellent condition was 55%, unchanged from last week. Matured corn was at 63%, 7% behind the five year average. Corn that has been harvested was at 12%, behind last year's pace of 52%.

Soybean condition was 15% in poor or very poor condition, a 2% decrease from last week. Soybeans in good or excellent condition was 53%, an increase of 3% from last week. Soybeans dropping leaves were at 67%, compared to 83% last year at this time. A total of 11% of the soybean crop has been harvested, 9% behind the five year average.

Winter Wheat planted as of September 29, 2013 was 39%, only a percentage point behind the five year average. 12% of the winter wheat crop has emerged, unchanged from last year at this time.  

December futures for corn ended the week at $4.41 per bushel, a 2.6% decline from last week. November soybeans ended the week at $12.82, a 1.9% decrease from last week, and December wheat ended the week at $6.78, a 3.8% increase from last week. Year to year corn prices are down 41.7%, soybeans are down 17.8%, and wheat is down 23.3%.

For daily articles on farmland and agriculture, visit www.farmlandforecast.com

 

Grain Stocks Higher Than Expected

Sep 30, 2013

The USDA estimated corn stocks at 824 million bushels, well above even the highest of pre-report estimates. Soybean stocks were reported on the high side of expectations, mainly due to increases in 2012 production data.

Quarterly Stocks September 2013

USDA reported 824 million bushels of old crop corn on hand for September 1, 2013, down 165 million bushels from last year at this time. Of the total stocks, 275 million bushels were stored on farms, a 12% drop from last year. Off-farm stocks were at 549 million bushels, down 19% from a year earlier. June-August 2013 disappearance was 1.94 billion bushels, compared to 2.16 billion bushels a year ago.

Old crop soybean stocks decreased 17% compared to last year with 141 million bushels as of September 1, 2013. Stocks stored on farms totaled 39.6 million bushels, a 3% increase from last year. Off-farm stocks were 101 million bushels, down 23% from last September. June-August 2013 disappearance was 294 million bushels, a decrease of 41% from last year.

The USDA reported changes to 2012 soybean production data, "Based on an analysis of end-of-marketing year stock estimates, disappearance data for exports and crushings, and farm program administrative data, the 2012 soybean production is revised to 3.03 billion bushels, up 18.6 million bushels from the previous estimate."

Wheat stocks decreased 12% from last year with 1.85 billion bushels being reported on September 1, 2013. On-farm stocks were estimated at 547 million bushels, down 5% from last September. Off-farm stocks were down 15% from last year, coming in at 1.31 billion bushels. The June-August 2013 disappearance was 991 million bushels, up 10% from September of last year.

 

Outlook

 

With old crop corn stocks reported well above the highest pre-report estimates, one has to wonder if the USDA was including some new crop bushels in that data. Conveniently, the USDA increased soybean production data to in turn increase stocks. As long as the USDA is in control they have the power to move the market, but how long until the market catches on?

For daily articles on farmland and agriculture, visit
www.farmlandforecast.com

Understanding Farmland Values and the Long-Term Outlook

Sep 30, 2013

The last decade for agriculture has been the most exciting in many generations. Rising commodity prices and strong domestic and global demand has driven U.S. row crop farmland and other agricultural assets to record highs. Farming used to be a sleepy business that now is frequently on the front page of the New York Times and The Wall Street Journal.

Over the last decade, U.S. farmland values have increased 116%, from $1,340 per acre in 2004 to $2,900 per acre in 2013, according to the U.S. Department of Agriculture. The Midwest Corn Belt, the primary farming region of the U.S., has been the leading beneficiary of the agriculture boom, with farmland values increasing over 200% in Illinois and Iowa. The global demand for agriculture has not only created wealth in the U.S., but across the globe from South America, to Eastern Europe, and Asia-Pacific.

Average Value per acre of US Farmland

Jim Rogers said, "the farmers are going to be driving the Lamborghinis," and this is coming true. In Illinois, the average farmer income was over $250,000 in 2012, up substantially from $66,000 in 2005. Higher commodity prices, increased production, and expense management, have led to the record farm income. Farmers have reinvested their profits back into their operations, increasing the size and scale of their farming operations and driving up farmland values.

Farmland values per acre in Illinois and Iowa as of 2013 are now $7,800 and $8,400 per acre, respectively. Yes, farmland has sold for $15,000 per acre and even over $20,000 per acre, but U.S. farmland is a $2.5 trillion asset class and a few million dollar sales are not representative of the overall asset class.

U.S. farmland has been an attractive investment for not only farmers, but investors as well. The consistent income, diversification, lack of correlation to other asset classes, and inflation hedge of farmland has been an attractive investment for individuals and institutions.

Despite the recent enthusiasm for agriculture, we believe farmland values are fairly valued based on current market fundamentals and have substantial upside. Farmland values, like all assets, are a function of their future cash flows. Commodity prices are just one variable in the equation and production and expenses are keys to analyzing profitability.

The average high quality farm in Iowa generates $950 per acre in revenues. We estimate the average input costs for a high quality Iowa farm to be $425 per acre and average cash rents to be $425, leaving a profit for farmers of $100 per acre, which is what most farmers use as their annual profit target per acre. 

Average Value of Farmland in Iowa

Over the last 40 years, U.S. farmland has sold at an average capitalization rate of 5.0%. Using this historical multiple, with the average cash rent for a high quality Iowa farm of $425 per acre, generates an average value of Iowa farmland at $8,500 per acre, which is $100 more per acre than Iowa farmland is currently valued at.

The last ten years have been the "Decade of the Farmer," but this is just the beginning and we estimate we are in the second-to-third inning of a long-term bull market. We have highlighted a few data points that are important in driving farmland’s returns over the next decade.

Rising Global Demand – The global demand story will continue to strain the world’s food supply. The global population is expected to grow from 7.0 billion people to 9.0 billion people by 2050. Over this same time period, food production will need to double to meet the needs of a higher protein diet.

Land Scarcity – There are approximately 3.5 billion acres of arable land in the world and the potential for adding a mere 5% over the next few decades. Soil erosion and population growth are also depleting arable land by the minute. Over two acres are disappearing per minute according to the American Farmland Trust.

Improving Technology – Precision technology and sustainable farming techniques will allow farmers to increase profitability over the next decade. Efficient use of fertilizer has already lowered costs to 15% of revenues, from 20% a decade ago. Drought and cold tolerance traits will allow farmers to have more stable yields. New technology will have a substantial affect on margins.

 

Expansion of the Corn Belt – Planted corn acreage has grown 17% over the last decade as high commodity prices and improving technology has allowed farmers to plant corn farther north and west. Expanding infrastructure is also changing the direction of grain. Historically grain has been sent to the Mississippi River and the east, but rising demand in Asia has more grain being sent to the west. 

 

Multiple Expansion – Despite the rising interest in agricultural assets and low interest rates, farmland values have not seen an expansion in multiples. Over the last 40 years, farmland has been valued at cap rates of 5.0% and farmland still averages 5.0% cap rates in 2013.

Conservative Balance Sheets – Farmer balance sheets are the most conservative in over 40 years according to the USDA. In Iowa, 78% of farmland has no debt against it, up from 75% in 2007.

Investors Yet to Participate – In Illinois and Iowa in 2012, 85% and 82% of farmland was bought by local individuals, respectively. Investors’ have yet to have a meaningful impact or participation in the asset class. There is less than 1% of farmland currently in institutional hands.

Aging Farmer – As of 2007, the age of the average U.S. farmer was 57.1. Over the next decade there will be a substantial change in who is sitting on the tractor as today’s farmers enter retirement. Typically the average parcel changes ownership once every 75 years. We see this generational change as one of the best opportunities to acquire farmland due to the unusually high volume of land potentially changing hands.

Over the next decade, agriculture will have a few bumps in the road. Despite the strong demand story, we have highlighted some risks that may be hurdles in the short-term.

Rising Interest Rates – Interest rates can’t stay low forever and we have already seen a substantial rise in 2013. A considerable rise in interest rates may prohibit growth in agriculture and farmers access to capital.

Washington – Indecision in Washington and to-be-determined Farm Bill has left farmers uneasy about what support the government will provide in the short-term.

Macro Economic Uncertainty – The end of easy monetary policy and potential slowdowns in emerging markets may slow the development of the global demand story.

Identifying Assets – Rising agricultural asset values is making it harder to find undervalued assets. Ten years ago you would have made money by purchasing anything, now it takes hard work and deep analysis to identify the right assets that will outperform over the next decade.

Understanding Farmland – All farmland is not created equal and two properties across the street from each other can have completely different production and economics. Identifying high quality assets that will benefit from the global demand story is key to an allocation in agriculture.

When analyzing an investment in agriculture, it is important to look to the future. Farming has changed drastically over the last decade and will continue to develop over the next decade. Today’s progressive American farmer doesn’t merely work the land: he is also salesman, manager, accountant, buyer, marketer, scientist, agronomist, mechanic, and computer expert.

Over the next decade, famers will continue to consolidate and produce larger amounts of acreage, lowering their fixed costs and overhead. Precision farming and lower fertilizer use will increase margins and drive profitability.

 

Farmland is a long-term investment and the focus should not be on commodity prices and yield estimates over the next twelve months, but over the next ten, twenty, thirty years. Farmland is the one variable in the farming equation that cannot be replaced and with sustainable farming methods, an investment in farmland will last longer than we can even imagine.

For daily articles on farmland and agriculture, visit
www.farmlandforecast.com

Rural Economy Still Expanding

Sep 24, 2013

The rural economy tapered its growth this month but remains above growth neutral. Low grain prices and uncertainty over the farm bill has decreased rural sentiment toward equipment purchases and overall confidence of the economy moving forward. The farmland price index remains above growth neutral and has been since February of 2010.

Dual Farmland Price and Rural Mainstreet Index September 2013

The Rural Mainstreet Index (RMI), ranging between 0 and 100 with 50.0 representing growth  neutral, decreased to 52.4 in September, from 55.8 in last month’s survey. Ernie Goss, economist at Creighton University, commented, "Lower grain prices this year are slowing the growth in the Rural Mainstreet economy. Additionally, 39.4 percent of bankers this month indicated that lower grain prices have encouraged farmers to store grain and hold for higher prices later. This strategy is likely to payoff for the farmer given the Federal Reserve’s decision this week to continue their current stimulus program. This $85 billion per month Fed bond program will be supportive of higher agriculture commodity prices and the farm economy in the months ahead."

The farmland price index contracted again and has decreased nine of the last ten months, but remains above growth neutral, 54.0, for the 44th month in a row. Goss noted, "Our farmland-price index has been above growth neutral since February 2010. However, lower farm commodity prices are slowing growth in farmland prices. The Federal Reserve’s decision to make no changes to their expansionary monetary policy is definitely bullish for agriculture. Most economists, including me, expected the Fed to begin tapering QE3. Thus, the Fed’s lack of action in September will be supportive of agriculture commodity prices, farm income and farmland prices in the weeks and months ahead."

Bankers were asked this month how cash rents have changed year over year. Bankers reported, on average, cash rents increased 9.9 percent from last year.

For the second month in a row, farm equipment sales were below growth neutral at 48.3. "Lower agriculture commodity prices are weighing on farmer confidence and their willingness to purchase big ticket items such as agriculture equipment," said Goss.

The loan-volume index increased to a healthy 73.5, from August's 70.5. The checking-deposit index rose to 56.3, from August's 51.7.

The confidence index declined to below growth neutral, 46.1, from 53.4 last month. "The farm economy continues to grow but is trending lower as agriculture commodity prices have moved lower. This and the uncertainty surrounding passage of the Farm Bill and potential Congressional budget impasses pushed confidence below growth neutral for the month," said Goss.

Chart of RMI September 2013

Survey

This survey represents an early snapshot of the economy of rural, agriculturally and energy-dependent portions of the nation. The RMI is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy.

- Colvin

For daily articles on farmland and agriculture, visit www.farmlandforecast.com

 

Crop Progress: Crop Conditions Improve

Sep 23, 2013

Crop conditions improved for the first time in five weeks. Corn and soybean harvests are both behind their five year averages.

As of September 22, 2013, 16% of the corn crop was in poor or very poor condition, a 2% decrease from last week. Corn in good or excellent condition was 55%, a 2% increase from last week. Corn was 91% dented this week, behind the five year average of 93%. Matured corn was at 40%, 15% behind the five year average. Corn that has been harvested was at 7%, behind last year's pace of 37%.

Soybean condition was 17% of the crop in poor or very poor condition, a 1% decrease from last week. Soybeans in good or excellent condition was 50%, unchanged from last week. Soybeans dropping leaves were at 47%, compared to 71% last year at this time. A total of 3% of the soybean crop has been harvested, 6% behind the five year average.

Spring wheat was 93% harvested as of September 22, 2013, in line with the five year average.

 

December futures for corn ended the week at $4.53 per bushel, a 0.7% decline from last week. November soybeans ended the week at 13.07, a 3.0% decrease from last week, and December wheat ended the week at $6.53, a 1.9% increase from last week. Year to year corn prices are down 39.1%, soybeans are down 18.8%, and wheat is down 26.8%.

For daily articles on farmland and agriculture, visit www.farmlandforecast.com

Crop Progress: Corn Harvest is Upon Us

Sep 16, 2013

Crop conditions continue to steadily decrease and corn harvest in the south is in full gear.

As of September 15, 2013, 18% of the corn crop was in poor or very poor condition, a 1% increase from last week. Corn in good or excellent condition was 53%, a 1% decrease from last week. Corn was 81% dented this week, behind the five year average of 86%. Matured corn was at 22% and last year at this time corn was an astonishingly 73% mature. Harvest has begun and as of yesterday, 4% of the corn crop has been harvested.

Soybean condition was 18% of the crop in poor or very poor condition, a 3% increase from last week. Soybeans in good or excellent condition were 50%, a 2% decrease from last week. Soybeans dropping leaves were at 26%, compared to 54% last year at this time.

Spring wheat was 90% harvested as of September 15, 2013, compared to 99% last year.

 

December futures for corn ended the week at $4.56 per bushel and wheat ended the week at $6.41. November futures for soybeans ended the week at $13.48 per bushel. Year to year corn prices are down 35.5%, soybeans are down 14.4%, and wheat is down 27.2%.

For daily articles on farmland and agriculture, visit www.farmlandforecast.com

WASDE: Corn Yields Higher Despite Warm Weather

Sep 12, 2013

The USDA surprised analysts with an increase in average corn yields to 155.3 bushels per acre, increasing the ending stocks-to-use ratio slightly to 14.6%. The 2013 corn crop is expected to be the largest on record in the U.S. Soybean production was lowered by 3% as dry weather has stressed the crop through the month of August and into the beginning of September. The USDA forecasts 2013/14 soybean ending stocks at 150 million bushels, putting the ending stocks-to-use ratio at 4.8%.

 

Corn

The USDA forecasted 2013/14 U.S. corn production 80 million bushels higher to a record 13.8 billion bushels. The corn yield forecast for this year was increased by 0.9 bushels per acre to 155.3 bushels per acre, surprising analysts who were expecting a roughly one bushel decrease in yield due to the warm weather over the last month. Increased yields in the Central Plains and the South more than offset the decreased yield in Iowa (the largest corn producing state in the U.S.) and North Dakota.

U.S. ending corn stocks for 2013/14 were increased by 18 million bushels, to 1.855 million, due to the increase in average yield. The season average corn price for 2013/14 was decreased 10 cents at both ends of the range to $4.40 to $5.20. Global course grain supplies for 2013/14 was decreased by 0.5 million tons mainly due to lower foreign production.

Corn use for the 2012/13 marketing year was increased by 55 million bushels. Ethanol use was increased by 15 million bushels due to stronger than expected August ethanol production. Exports for 2012/13 were raised by 20 million bushels due to higher August grain inspections. 2012/13 estimated feed and residual use was increased by 25 million bushels due to the later availability of the new crop corn.

WASDE Ending Stocks September 2013

 

Soybeans 

U.S. average soybean yields in 2013/14 were decreased by 1.4 bushels per acre from last month, to 41.2 bushels, due mainly to weaker production in the western Corn Belt. Production for the 2013/14 year was decreased by 106 million bushels to 3.149 billion bushels.

Ending stocks for soybeans in the 2013/14 marketing year were lowered by 70 million bushels, to 150 million. Exports were also lowered, by 15 million bushels, due to increased competition from South America. The projected season average price range for 2013/14 was $11.50 to $13.50 per bushel, an increase of $1.15 on both ends of the range.

Soybean imports for the 2012/13 marketing year were increased by 5 million bushels to a record 40 million bushels.

 

Wheat 

U.S. wheat supplies for 2013/14 were increased by 10 million bushels due to a higher than expected wheat crop from our neighbors to the north, Canada. Ending stocks for 2013/14 were increased from 551 million bushels to 561 million. The season average wheat price for 2013/14 was estimated at $6.50 to $7.50 per bushel, narrowed by 10 cents on each end of the range.

Global wheat supplies for 2013/14 were increased by 3.0 million tons due to record production. It is estimated that world production of wheat will produce a record 708.9 million tons, an increase of 3.5 million from last month.

 

Outlook

The USDA miraculously increased U.S. corn yield and production; Monsanto must be selling a hybrid corn seed that is invisible to early planting, short growing season, and dry temperatures during the crucial growing stages of a plant. The USDA has also redefined statistical reporting and Darin Newsome, senior analyst at DTN, points out a few changes they have made:

 1.     USDA does not have to change planted acres to account for prevented plantings.

2.       2.   USDA does not use its own (NASS) weekly crop condition numbers when calculating potential yield changes.

 

3.       3.   USDA does have to maintain certain levels of ending stocks and ending stocks-to-use in an attempt to control market chaos.

For daily articles on farmland and agriculture, visit www.farmlandforecast.com

 

Crop Progress: Conditions Worsen for Corn and Soybeans

Sep 09, 2013

A steady decline in crop conditions continue for corn and soybeans as September rolls on.

As of September 8, 2013, 17% of the corn crop was in poor or very poor condition, a 1% increase from last week. Corn in good or excellent condition was 54%, a 2% decrease from last week. Corn in the dough stage was 92%, compared to the five year average of 94%. Corn was 64% dented this week, behind the five year average of 75%. Matured corn was at 9%, well behind the five year average of 28%.

Soybean condition was 16% of the crop in poor or very poor condition, a 1% increase from last week. Soybeans in good or excellent condition were 52%, a 2% decrease from last week. Soybeans dropping leaves were at 11%, compared to 34% last year at this time.

Spring wheat was 80% harvested as of September 8, 2013, compared to 97% last year.

 

Corn prices decreased 4.2% over the past week ending at $4.77 per bushel, and soybean prices decreased 2.2% ending at $14.04 per bushel, and wheat prices ended the week at $6.28 per bushel, a 1.3% decrease from last week. Year to year corn prices are down 38.9%, soybeans are down 18.0%, and wheat is down 27.6%.

For daily articles on farmland and agriculture, visit www.farmlandforecast.com

 

Crop Progress: Crop Conditions Continue Downward Trend

Sep 03, 2013

Throughout the month of August, crop conditions deteriorated weekly. As we move into the fall months, a crop's overall maturity and condition will be the important indicators of yield potential.

As of September 1, 2013, 16% of the corn crop was in poor or very poor condition, a 2% increase from last week. Corn in good or excellent condition was 56%, a 3% decrease from last week. Corn in the dough stage was 84%, compared to the five year average of 89%. Corn was 42% dented this week, behind the five year average of 61%. Matured corn was at 4%, well behind the five year average of 17%.

Soybean condition was 15% of the crop in poor or very poor condition, a 2% increase from last week. Soybeans in good or excellent condition were 54%, a 4% decrease from last week. Soybeans setting pods were at 92%, compared to 98% last year at this time.  

Spring wheat was 64% harvested as of September 1, 2013, compared to 93% last year. Spring wheat in poor or very poor condition was 6% and spring wheat in good or excellent condition was 70%.

Corn prices decreased 0.2% over the past week ending at $4.98 per bushel, and soybean prices increased 1.5% ending at $14.35 per bushel, and wheat prices ended the week at $6.36 per bushel, a 2.2% decrease from last week. Year to year corn prices are down 38.3%, soybeans are down 19.0%, and wheat is down 26.6%.

For daily articles on farmland and agriculture, visit www.farmlandforecast.com

 

 

Many Risks Surrounding 2013 Crop

Sep 03, 2013

The weather across the Corn Belt has made a full circle from 2012's drought to the very wet spring of 2013 and now back to a moderate drought. The first four weeks of August in Decatur, IL have produced 0.09 inches of rainfall and 12 days above 85 degrees, reaching as high as 95 degrees. Farmers should typically be preparing for soybean harvest in the southern Corn Belt by now, but very late maturing crops are delaying the harvest season. The hot and dry weather is causing concern over both corn and soybean yields, but the inevitable upcoming frost could cause an even worse problem for immature crops in late September and through October.

Grain Prices

December corn prices were nearly unchanged this month, closing at $4.83 per bushel. Extremely hot and dry weather across the Corn Belt in late August helped prices rebound after the successful pollination period ended in early August. The USDA estimated the average U.S. corn yield 1.3% lower in the August WASDE Report to 154.4 bushels per acre. The Farm Service Agency released a report in early August on the amount of Prevent Planted acres in the U.S. and found 7.711 million acres were unplanted due to wetness complications with 3.411 million acres being corn. 7.5% of the entire corn acreage in Minnesota was unplanted this year. Speculative buyers have been slowly converting their net short positions in the direction of net long over the past two weeks signaling a longer-term rally.

November soybean prices increased by 12.5% this month to close at $13.57 per bushel. There's a high concern of even an average first frost date that will severely damage soybean yields this year due to the extremely late planting dates across the Corn Belt. The hot and dry weather this month also hurt soybean plants during their pod filling stage which is directly correlated to yield. In this month's WASDE, the USDA estimated the average U.S. yield 1.7 bushels per acre lower to 42.6 bushels per acre. Ending stocks were also estimated 75 million bushels lower to an extremely tight 220 million bushels. The November 2013 soybean contract is currently trading at an all-time high.

The September wheat contract decreased by 3.3% this month, closing at $6.43 per bushel. Estimated ending U.S. wheat stocks were decreased this month by 25 million bushels due to increased exports, but a stronger U.S. Dollar in August kept prices from moving higher. Additionally, the USDA estimated world wheat production at a record 705.4 million metric tons.

Farmland Values

Year over year, "good" farmland values increased 17% across the Seventh Federal Reserve District, although for the second quarter of 2013, values remained unchanged. Four out of the five states within the Seventh District, which includes Iowa, Wisconsin, Illinois, Michigan, and Indiana, posted double digit annual increases in farmland values with Indiana leading the way with a 21% increase. In the Tenth Federal Reserve District, non-irrigated farmland values rose 18%, irrigated farmland values increased 25%, and ranchland values rose 14% year over year. The Tenth District includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, a portion of New Mexico, and Missouri.

The Creighton University farmland price index decreased this month for the eighth time in the last nine months, but remains above growth neutral at 55.8. Professor Ernie Goss noted, "Our farmland-price index has been above growth neutral since February 2010. However, lower farm commodity prices are slowing growth in farmland prices. I expect farmland price growth to continue to weaken as agriculture commodity prices soften." Bankers estimated that only 20% of all farmland transactions are purchased by investors; this was the same percentage given in the spring when bankers were asked the same question.

Crop Conditions

As of August 26, 2013, only 59% of the U.S. corn crop and 58% of the soybean crop was in good or excellent condition. 22% of corn and 32% of soybeans were in good or excellent condition at this same point in 2012. Corn maturity is severely lagging with only 23% of the crop in the dented stage compared to 73% last year and the five year historical average of 45%.

Although corn pollination was completed in ideally mild temperatures, the extreme heat and dryness across the Corn Belt throughout August has put major stress on the crop filling kernels. Soybeans have also been stressed in the heat during the critical pod filling stage. At this point in maturity, even a historically average first frost date would cause yield loss in both corn and soybeans due to the late spring planting.

Outlook

Crop conditions are below average in the U.S. Corn Belt and the weather outlook is not very promising as high temperatures and low precipitation dominate local forecasts. An early to average first frost date will continue to loom in many trader's minds throughout September.

Farmers will start to plan out the 2014 crop year post harvest and should be happy to find lower input costs. Major fertilizer costs have significantly decreased over the past two months partially due to the world's largest potash producer, Uralkali, ending their production limits. Potash prices were forecasted last month to eventually drop to the lowest since 2010.

For daily articles on farmland and agriculture, visit www.farmlandforecast.com

 

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