Corn: Over the past week, corn futures have struggled to gain ground. September corn futures have increased by $0.03 since the markets open on Monday. As the dollar continues to strengthen, corn exports will continue to face headwinds. However, ethanol production continues to remain relatively robust either due to building of stocks or an increase in gas consumption. The USDA will release their planting intentions report on March 31^st. This will be the next major milestone for the corn market. New crop corn basis for West TN continues to remain negative with an average of -$0.12.

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Corn: Over the past month, corn futures have been trading in a relatively sideways pattern. However, the past few days have allowed cash bids for new crop corn to be near $4.00 levels. Based on the UT Extension Crop Budgets, a producer could potentially lock in a profit at this price level, assuming an average yield of 150 bushels per acre. Private estimates are currently projecting corn acres to be lower in 2017 compared to last year’s levels. Continue reading →

In agriculture, we are constantly faced with risk. Farmers are faced with the risk of adverse weather conditions, volatile commodity markets, and many other production risks. As an Extension Farm Management Specialist, I try to communicate to producers the options they have to reduce their overall risk exposure.

I like to narrow down the areas of risk that farmers must manage to two main areas: financial risk and production risk.

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