The 2024 Fall harvest season had been progressing at a very fast pace across most of the Upper Midwest, with harvest nearly completed in many areas. The combination of above normal temperatures together with zero or very limited rainfall from late September until late October has allowed corn and soybean harvest to progress rapidly in most of the Corn Belt, with very few glitches. Very few locations had received enough precipitation during October to cause any delays in harvest progress and Fall tillage. The corn and soybean yield levels have been highly variable across the Midwest, with portions of Iowa, Illinois, and the Eastern Corn Belt having some of their best yields in recent years, while farmers in a large area of Southern Minnesota realizing some of their lowest corn and soybean yields in the past two decades.
 
Based on the USDA Crop Progress Report on October 20, it was estimated that 81 percent of the soybeans in the U.S. had been harvested, which was above the 72 percent harvested by that date in 2023 and was well above the 5-year average of 67 percent harvested. In the Upper Midwest, Minnesota led the way with 95 percent of the soybeans harvested by October 20, followed by Wisconsin at 93 percent, Iowa and South Dakota at 91 percent, North Dakota at 89 percent, and Nebraska at 85 percent. Other soybean harvest figures as of October 20 were Illinois at 76 percent, Indiana at 75 percent, and Ohio at 78 percent. All states were slightly ahead soybean harvest progress a year ago in late October and were significantly ahead of the 5-year average progress.
 
It was estimated that 65 percent of the corn in the U.S. was harvested by October 20, which was well ahead of the 55 percent harvest rate on that date in 2023, as well as the 5-year average of 52 percent harvested. Iowa was the leader in harvested corn acres in the Midwest with 68 percent harvested, followed by Illinois at 67 percent, Minnesota at 66 percent, Nebraska at 63 percent, and Indiana at 61 percent harvested. Other corn harvest figures in the October 20 report were South Dakota at 56 percent harvested, Ohio at 51 percent, North Dakota at 47 percent, and Wisconsin at 44 percent harvested. By comparison, all of the listed states were slightly ahead of the corn harvest pace a year ago and were well ahead of the 5-year average level of corn harvested by October 20.
 
Corn harvest in Minnesota has progressed more rapidly in many portions of southern and western Minnesota, as well as adjoining areas of eastern South Dakota and western Iowa, with many farmers nearing completion harvest for the 2024 growing season. Corn harvest in the eastern half of Minnesota, especially in southeast Minnesota, eastern Iowa, and Wisconsin has been somewhat slower due to having crops that were a bit later maturing and having higher yield levels. Normal planting dates in 2024, together with above normal growing degree units in the summer months in most areas, allowed most corn and soybeans to reach full maturity by late September. Later planted crops and replanted soybeans in the very wet areas of southern Minnesota and northwest Iowa did not mature until after October 1st.
 
Overall, the reported soybean yields across the Midwest have been highly variable, mainly due to excessive rainfall in some locations early in the growing season and limited rainfall late in the growing season in portions of the region. In some cases the same areas of southern Minnesota and northwest Iowa that had near-record rainfall during June also experienced near-record dryness during September and early October. The term “disappointing” was heard a lot when referring to 2024 soybean yields in many portions of southern and western Minnesota, meaning that yields were below the more optimistic expectations that existed in August. Many soybean yields in the region were 10-25 percent below crop insurance APH (average) yields. Most of the western and northern Corn Belt had soybean yields that were lower than the 2022 and 2023 soybean yield levels, while many areas of Iowa, Illinois, and the eastern Corn Belt experienced above average soybean yields in 2024.
 
2024 corn yields have also been highly variable across the Corn Belt. Similar to soybeans, corn yields this year have seemed to be more consistent in much of Iowa and Illinois, and other areas of the eastern Corn Belt that benefitted from more favorable growing conditions from May to July than other areas. Corn yields in many portions of the Upper Midwest seemed too vary considerably, depending on corn hybrids, planting dates, and the level of excessive rainfall early the growing season. There have been some “whole field” yield reports of 200 bushels per acre or higher in southern Minnesota and northern Iowa; however, there have also been yield reports below 100 bushels per acre at some locations in south central and southwest Minnesota. Overall, the 2024 corn yields in the Upper Midwest are not nearly as consistent as the past few years and for many farmers in southern Minnesota will be 10-20 percent below crop insurance APH (average) yields.
 
One piece of good news for producers regarding the 2024 corn harvest has been the harvest moisture of the corn coming out of the field. Most of the corn being harvested this Fall has been under 18 percent moisture, which means that a large portion of this year’s corn crop could go directly in the bin for storage, without the need for additional drying, which is a cost saving to farmers. Corn should be dried to about 15-16 percent moisture before going into the grain bin for safe storage until next Spring or Summer. Some corn that has been harvested was near 11-13 percent moisture, which is actually too dry and results in harvest losses for producers. The test weight of the corn being harvested has also been a pleasant surprise this year, with most corn having a test weight at or above the standard corn test weight of 56 pounds per bushel.
 
Drought Conditions Expand
Limited rainfall and above average temperatures from late August until late October has raised drought concern in most of the Midwest and Plains States. Most areas of Minnesota, Iowa, South Dakota, Nebraska, Kansas, Missouri, and Wisconsin was listed in “moderate” to “severe” drought by late October, based on the weekly U.S. Drought Monitor report. Much of Illinois, Indiana, Ohio, and Michigan were also included with a drought designation. By comparison, The U.S. Drought Monitor report on August 20 listed only portions on the southern Plains States, Kansas, and Ohio in any of the drought categories.
 
Total precipitation measured at the University of Minnesota Southern Research and Outreach Center at Waseca during September was only .48 inches, making it the second driest September on record in the over 100 years of weather data at the site. As of October 28, only .05 of precipitation had been recorded in October. This compares to normal precipitation levels at Waseca of 4.12 inches in September and 2.77 inches in October. For the year, total precipitation is very near normal at Waseca, which is largely due to the 10+ inches above average precipitation that was recorded in May and June this year.
 
2024 was also the sixth warmest September at the Waseca location, averaging 66.9 degrees Fahrenheit, which was just 1.6 degrees below the warmest-ever average September temperature of 68.5 degrees in 1931. Average temperature in October have also been over 8 degrees above normal. The first frost event at Waseca occurred on October 7, which ended the 2024 growing season. A total of 2,781 growing degree units (GDU’s) were recorded from May 1 until October 7 this year, which is 11 percent above the season average total of 2,509 GDU’s.   
 
Fall tillage and manure applications have been occurring as soon as harvest is completed; however, those operations have been more challenging in many locations due to very dry soil conditions. Producers in some areas of the region typically apply nitrogen fertilizer for the corn crop that will be raised in the following year, once the current year’s harvest is completed. It is recommended to wait until soil temperatures are 50 degrees Fahrenheit or lower to apply nitrogen in the fall in order to avoid significant losses. Soil temperatures have been above that level through most of October. Farm operators are reminded to follow the statewide restrictions for fall nitrogen fertilizer application in their area, and to check with their State Department of Agriculture or Land Grant University for fall nitrogen application recommendations and requirements in their State.
Note - For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions
Phone - (507) 381-7960; E-mail - [email protected]

​Arriving at equitable land rental rates is always an ongoing challenge for farm operators and landlords alike, which will likely be an even bigger challenge for the 2025 growing season. Many times, land rental rates for a coming crop year are based on the profitability in crop production in the previous year or two before. In some cases, this can present profitability challenges for farm operators, if grain prices drop or there are yield challenges. On the other hand, there can be extra profit for farm operators in years with above average yields and higher levels of crop prices. Many landlords have been gradually increasing cash rental rates in the past few years (2019-2024). With the advent of much lower grain prices late in the past 12-plus months, along with reduced 2024 crop yields in portions of the Upper Midwest, one wonders if it will have an impact on 2025 cash rental rates. However, from a landlord perspective, it should be noted that property taxes have increased substantially in many areas.
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Approximately two-thirds of the farmland in the Upper Midwest is under some type of cash rental agreement. Based on farm business management land rental data compiled by the University of Minnesota, average rental rates from 2015 to 2019 in Minnesota declined by 10-20 percent. Based on the U of M data, average land rental rates in Minnesota increased by 6 percent from 2022 to 2023, and increased by over 25 percent from 2019 to 2023. According to USDA Cash Rental Summary released in late August of 2024, average cash rental rates in Minnesota were nearly the same in 2024 as the average rental rates in 2023. Farm management analysts expect 2025 cash rental rates in most areas to stay fairly steady or maybe decline slightly in most areas, given the projected continuation lower corn and soybean prices and tight profit margins for 2025.
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The commodity prices for corn and soybeans in 2022 and early 2023 reached the highest levels since 2012-13, due to increased domestic usage and higher export levels of U.S. corn and soybeans and the associated decreases in the nation’s grain supplies. The final USDA national market year average (MYA) crop prices for the 2023-2024 marketing year were $4.65 per bushel for corn and $12.50 per bushel for soybeans. The MYA prices are the average farm-level prices, calculated from September 1 in the year of harvest, until August 31 of the following year. The MYA corn prices in other recent years were $6.54 per bushel in 2022-23, $6.00 per bushel in 2021-22, $4.53 per bushel in 2020-21, and $3.56 per bushel in 2019-20. Recent MYA soybean prices were $14.20 per bushel in 2022-23, $13.30 per bushel in 2021-22, and $10.80 per bushel for 2020-21, and $8.57/bu. in 2019-20.
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USDA is estimating the MYA average prices for the 2024-25 marketing year at $4.10/bu. for corn and $10.80/bu. for soybeans (as of 10-01-24). Current forward cash prices for Fall delivery of the 2025 crop year are near $4.00-$4.25 per bushel for corn and $10.00-$10.50 per bushel for soybeans at many locations in the Upper Midwest. Many ag lenders are using $4.50 per bushel for corn and $10.50 per bushel for soybeans as 2025 planning prices for 2025 crop budgets. The USDA long-range price projections for the next 5 years for average on-farm commodity prices are near $4.00 per bushel for corn and $10.50 per bushel for soybeans.
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Many farm operators had significantly higher crop input costs in 2023 and 2024, as compared to 2022 or 2021. Fertilizer costs eased somewhat in 2024; however most other crop input costs for seed, chemicals, fuel, labor and repairs are expected to remain relatively high in the coming year compared to recent years. Based on Southern Minnesota Farm Business Management (FBM) records, the average total direct cost in 2023 for seed, fertilizer, chemicals, fuel, etc. on cash rental acres, excluding land rents, was near $631 per acre for corn and near $316 per acre for soybeans. The 2023 FBM records showed an average of $120 per acre on corn acres and $75 per acre on soybean acres for overhead expenses, which includes machinery costs, hired labor, insurance, and other ongoing expenses, but does not include any net return to the farm operator. In addition, short-term interest rates for farm operating loans have doubled in many instances in the past two years, which further adds to the cost of production. Most experts project input costs for 2025 to remain fairly high, with possibly a slight decrease in short-term interest rates.  The combination of relatively high crop input costs and continued lower commodity prices could result in some challenging breakeven price levels for 2025, especially if land rental rates are at quite high levels.
Typically, Southern Minnesota farm operators use average yields near 200 bushels per acre for corn and 60 bushels per acre for soybeans for cash flow planning purposes. If the direct expenses for corn are $635 per acre, with overhead expenses of $125 per acre, and a land rental rate at $275 per acre, the total expenses, before any allocation for labor and management would be $1,030 per acre. With a corn yield of 200 bushels per acre, the breakeven price to cover the cost of production and land rent would be approximately $5.15 per bushel, which would increase to $5.73 per bushel if the corn yield drops to 180 bushels per acre. If a $60 per acre allocation for labor and management (family living expenses) is included, the corn price breakeven levels would rise to $5.45 per bushel with a 200 bushel per acre yield, and $6.06 per bushel with a 180 bushel per acre yield. If the cash rental rate or other expenses are $50 per acre higher than estimates, breakeven levels increase to $5.70 per bushel at 200 bushels per acre and to $6.34 per bushel at 180 bushels per acre.
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Similarly, with soybeans, using direct expenses of $320 per acre, overhead expenses of $80 per acre, land rent of $275 per acre, and a management fee of $60 per acre, the total costs would be $735 per acre. The breakeven soybean price to cover the cost of production and land rent would be about $12.25 per bushel with a yield of 60 bushels per acre, which would increase to approximately $14.70 per bushel with a yield of 50 bushels per acre. There can be big differences in crop yields and expenses from farm-to-farm, which can cause breakeven prices to vary compared to the average. Based on 2023 FBM records for Southern Minnesota, the average breakeven prices on cash rented land to cover direct expenses and overhead costs, plus about $55 per acre return to management was $4.96 per bushel for corn and $11.71 per bushel for soybeans. The 2023 FBM average yields in the same region were 203 bushels per acre for corn and 57 bushels per acre for soybeans.
Considerations for
Flexible  Cash Leases
An alternative to a flat cash rental rate that may be difficult to “cash flow” would be for a farm operator and landlord to consider using a “flexible cash lease” agreement that allows the final cash rental rate to vary as crop prices and/or yields vary or exceed established targets. The use of a flexible cash rental lease is potentially fairer to both the landlord and the farm operator, depending on the situation and how the lease is set up. Most flexible leases have been modified in recent years into a “bonus rent” agreement that uses a reasonable “base rental rate” that can “flex” upward with an added rental payment to the landlord, if the “base” crop yield and/or base crop prices (or the base crop revenue per acre) are exceeded; however, the final rental rate does not drop below the base rental rate. The big key, regardless of the flexible lease agreement, is that both the landlord and tenant fully understand the rental agreement, and the calculations that are used to determine the final rental rate.
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Utilizing “flexible cash lease agreements” between farm operators and landlords can be a good management strategy as an alternative to extremely high straight cash rental rates; however, these agreements need to be fair and equitable to all parties. Landlords also need to be willing to adjust the “base” cash rental rates lower as necessary if crop margins become quite tight in future years. It is extremely important that all aspects of a flexible land rental lease agreement be detailed in a signed written rental contract that includes the base rent, yield, and price determination, as well as other provisions of a flex lease. Successful “flexible cash lease agreements”, just as any other long-term cash rental agreement, have always involved cooperation, trust, and good communication between the farm operator and the landlord.
Resources for Land Rental Agreements and Flexible Leases
For additional information on flexible rental leases, land rental rates, and 2025 crop budgets, as well as sample lease contracts, please forward an e-mail to: [email protected]. Some other good resources on
flexible cash leases, including sample cash rental contracts, are available on the Iowa State University “Ag Decision Maker” web site at: http://www.extension.iastate.edu/agdm/, as well as through University of Minnesota Extension at: https://extension.umn.edu/business/farmland-rent-and-economics.
Note - For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Phone - (507) 381-7960; E-mail - [email protected]

​Based on yield reports from many areas of the Upper Midwest, it is likely that a significant number of corn and soybean producers may qualify for crop insurance indem-nity payments in 2024. The excess rainfall and drown-out damage conditions early in the growing season and very dry conditions at the end of the growing season, together with the price declines from the crop insurance base prices on March 1, increases the likelihood of 2024 crop insurance indemnity payments. Given the much tighter breakeven margins in corn and soybean production in 2024, farmers and ag lenders are now trying to estimate the amount potential crop insurance indemnity payments that may occur following harvest this year.
With Federal Crop Insurance, every year is different, and with the multiple options available to producers, there are many variable results from crop insurance coverage at harvest time. The 2024 crop year will be no different, with some producers choosing Yield Protection (YP) policies (yield only) versus Revenue Protection (RP) policies (yield and price), and producers having different levels of coverage on various crops. Producers also vary on having “optional units” versus “enterprise units” for their crop insurance coverage. In addition, some producers also have enhanced insurance coverage through private insurance companies, or through the “Supplemental Crop Option” (SCO) and Enhanced Coverage Option (ECO) policies that were available in 2024.
In the Midwest, most corn and soybean producers in recent years have tended to secure some level of revenue protection (RP) crop insurance coverage, in order to have the flexibility of insurance coverage for reduced yields, as well as in instances where the harvest price drops below initial base price. The established base prices for 2024 RP crop insurance policies were $4.66 per bushel for corn and $11.55 per bushel for soybeans. These base prices will serve as the final price to calculate revenue guarantees for determining potential RP crop insurance indemnity payments for corn and soybeans in 2024.
The final harvest price for RP insurance policies is based on the average CBOT December corn futures and CBOT November soybean futures during the month of Octo-ber, with prices finalized on November 1, 2024. The harvest price is used to calculate the value of the actual harvested bushels for all RP insurance policies. As of October 9, the crop insurance CBOT price estimates were $4.27 per bushel for December corn futures and $10.41 per bushel for November soybean futures, which are well below the spring base prices.
The lower crop insurance harvest prices greatly increase the likelihood of crop payments for Upper Midwest corn and soybean producers that have 80% and 85% RP in-surance policies for 2024. Based on current CBOT December corn price projections, 2024 indemnity payments for corn could begin at final yields that are at about 93 percent the 2024 APH yields for farmers with 85% RP insurance policies. For example, with an 85% RP policy on corn with a 200 bushel per acre APH yield and a $4.27 per bushel harvest price, 2024 crop insurance indemnity payments would begin at a yield just over 185 bushels per acre (93% of APH yield). If the harvest price increases to $4.50 per bushel, the payments would begin at a yield below 176 bushels per acre (88% of APH yield). For soybeans with an 85% RP policy and a 60 bushel per acre APH and a $10.41 per bushel harvest price, crop insurance payments would begin at about 56.5 bushels per acre or approximately 95 percent of the APH yield.
Farmers had the option of choosing RP crop insurance coverage levels from 60% to 85% for corn and soybeans. for 2024. Many Midwest corn and soybean producers utilize “enterprise units” for their crop insurance coverage, which combines all acres of a crop in a given county into one crop insurance unit, rather than choosing “optional units” that allow producers to insure crops separately in each township section. The level of insurance coverage and the type of crop insurance units that were selected will greatly affect the potential crop insurance indemnity payments for 2024.
Simple Method to Estimate Potential 2024 Crop Insurance Payments
Many farmers and ag lenders would like to estimate potential 2023 crop insurance indemnity payments. One simple method to estimate potential insurance payments is to calculate the estimated 2024 “threshold yield” for crop insurance payments to begin for corn and soybeans with Revenue Protection (RP) crop insurance policies. If the final farm yield is lower than the “threshold yield”, there is potential for 2024 crop insurance indemnity payments, depending on the final harvest price for corn or soybeans. Following is the formula to calculate the “threshold yield” at different APH yields and levels of insurance coverage, as well as the potential gross insurance in-demnity payment:
Multiply the APH yield on a farm times the crop insurance spring price times the crop insurance coverage level to get the crop insurance guarantee, and then divide by the estimated fall harvest price to arrive at the “threshold yield” where RP crop insurance payments are initiated. (The spring prices were $4.66 per bushel for corn and $11.55 per bushel for soybeans.)
Following that calculation, subtract the actual farm yield from the “threshold yield” and multiply the difference times the projected harvest price to arrive at the estimated gross crop insurance indemnity payment. Be sure to account for the differences in “enterprise” and “optional” units. Remember that this is just an estimate of gross payments, and that this calculation does not account for deductions for crop insurance premium payments. The calculation will vary as the estimated crop insurance harvest prices change from day-to-day. Harvest prices will be finalized on November 1, 2024. The estimated crop insurance harvest prices are available on the RMA web-site at: https://prodwebnlb.rma.usda.gov/apps/PriceDiscovery.
Following are examples of calculations for crop insurance payment estimates for corn and soybeans:
Corn
(85% RP Policy; 200 APH; 170 bu./A farm yield; projected harvest price of $4.27/bu.)
200 bu./A APH x $4.66/bu. x .85 = $720.20 guarantee divided by $4.27/bu. = 185.53 bu./A. “threshold yield”.
185.53 bu./A. – 170 bu./A = 15.53 bu./A x $4.27/bu. = $66.32/A. est. insurance indemnity payment
Soybeans
(85% RP Policy; 60 APH; 45 bu./A farm yield; projected harvest price of $10.41/bu.)
60bu./A APH x $11.55/bu. x .85 = $589.05 guarantee divided by $10.41/bu. = 56.59 bu./A. “threshold yield”.
56.59 bu./A. – 45 bu./A = 11.59 bu./A x $10.41//bu. = $120.66/A. est. crop insurance indemnity payment
Producers that have crop revenue losses in 2024, which could result in potential crop insurance indemnity payments, should properly document the yield losses, regard-less of their type or level of insurance coverage. A reputable crop insurance agent is the best source of information to make estimates for potential 2024 crop insurance indemnity payments, and to find out about documentation requirements for crop insurance losses. It is important for producers who are facing crop losses in 2024 to understand their crop insurance coverage and the calculations used to determine crop insurance indemnity payments.
Kent Thiesse has prepared an Information Sheet titled “2024 Crop Insurance Payment Potential”, as well as a spreadsheet to estimate potential 2024 crop insurance in-demnity payments. Both are available by contacting: [email protected]. The University of Illinois FarmDoc web site also contains some good crop insurance in-formation and spreadsheets to estimate crop insurance payments. The FarmDoc web site is located at: https://farmdoc.illinois.edu/crop-insurance.
Note - For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Phone - (507) 381-7960; E-mail - [email protected]
For more information, please visit our website:
www.fairmontphotopress.com/kent-thiesse

The 2024 Presidential election has gathered a majority of the news headlines in recent weeks, as we head to National Election Day on November 5. As we have listened to the presidential debates, interviews, and campaign ads, very little discussion has been focused on issues directly related to agriculture or family farm businesses. However, there are many key issues affecting farmers and the ag industry during this election season. It is also important to remember that there are other elections on November 5th besides the Presidential election, which includes congressional races, state legislative races, and local races for county commissioners, school boards, etc. It is important to pay attention to where the various candidates stand on the issues that are most important your business and your family.
Following are some of the main issues that are important to agriculture during the 2024 election:
• Passing a New Farm Bill -The inability of Congress to pass a new Farm Bill and the provisions in the next Farm Bill are front and center for many farmers and most ag organizations in 2024. The U.S. House Agriculture passed its version of a new Farm Bill earlier this year; however, the bill has not been voted on yet by the entire U.S. House of Representatives. The U.S. Senate has not yet released any version of a new Farm Bill and has offered no timeline for any action on a new Farm Bill.
Most of the congressional candidates from the major political parties in the Upper Midwest agree on many aspects of the next Farm Bill, especially as it related to enhancing and improving the “safety net” programs for farmers. Many of the agriculture leaders, as well as several of the candidates, have proposed increasing crop reference prices, enhancing crop insurance options, and improving risk protection opportunities for livestock producers and farmers that raise specialty crops.
There has also considerable discussion regarding the importance of conservation programs and how those programs can enhance ongoing carbon sequestration efforts in the U.S. Most members of both political parties agree that the nutrition title of the Farm Bill, which accounts for over 80 percent of the annual Farm Bill spending, should not be separated from the Farm Bill; however, there are some differences on specific provisions in the nutrition title. There are also many other important programs and provisions that are part of the existing titles in the Farm Bill, including rural development, ag research and extension, trade promotion, livestock disease mitigation, beginning farmer loans, and hemp production.
The 2018 Farm Bill originally expired on September 30, 2023; however, the current Farm Bill was extended until September 30, 2024. Now the question is: “Will we get a new Farm Bill passed in time for the 2025 growing season in the Midwest, or will we have another one-year extension until September 30, 2025 ?” While there is still a possibility that a new Farm Bill might be completed during “lame-duck” congressional session following the 2024 election, most ag experts feel that another one-year extension of the current Farm Bill until September 30, 2025 is more likely. The experts include the rather large cost of the Farm Bill, differences on nutrition, conservation, and other policies, as well as the continued partisan political divide in the U.S., as the main reasons that a new Farm Bill is not likely to pass later this year.
•Downturn in the Farm Economy - The continued tight margins and low profitability in farming seems to be on everybody’s mind in ag country this Fall. Profit margins in crop production have worsened considerably in the past two years, which could put some farm operations at the brink of financial disaster. Crop production expenses and land rental rates have increased substantially in 2023 and 2024, while crop prices for corn, soybeans and wheat have remained below breakeven levels, and are now at the lowest levels in several years. For Upper Midwest farm operators that are experiencing crop losses in 2024 due to weather issues, the financial situation is likely to be even more severe.
The struggling profit margins for crop producers are somewhat linked to discussions on the new Farm Bill and the need for improved risk management tools for farmers. Many farm operators are wondering if Congress will pass a supplemental agriculture disaster program after this year’s election to deal with 2023 and 2024 crop losses. The last disaster program of this type was only inclusive through the 2022 crop year.
Much of the livestock sector has not fared much better from a profitability standpoint in the past couple of years. Iowa and Minnesota are the top two swine production states in the U.S. and most swine producers have had very low or negative profit margins in the past two years. Dairy profit margins have improved in recent months; however, that followed a long period of very low profit margins that forced several dairy farmers to discontinue operation. Payments through the Dairy Margin Coverage (DMC) program, which is authorized through the Farm Bill, helped prevent even more small-to-medium sized dairy farms from being forced to exit the industry. Dairy and poultry producers have also been dealing with the impacts of the highly pathogenic avian influenza (H5N1) outbreak in certain areas of the U.S.
• Importance of Ag Exports and Trade Agreements - Most agriculture leaders and farm operators are very focused on the importance of having strong trade agreements and solid markets for ag exports. Many farmers are quite concerned about the potential for future trade disputes between the United States and China, as well as the lack of any new trade agreements with other countries. There is also some concern regarding the future of the current trade agreements with China and other countries, as well as with the current United States-Mexico-Canada Agreement (USMCA) trade agreement. China, Canada and Mexico are the three largest trading partners for U.S. ag exports.
• Future of the Renewable Fuels Industry - Many farm operators, agriculture and community leaders, and investors in renewable energy plants, are concerned about government policies related to the development and use of ethanol and other biofuels. Many States in the Upper Midwest, including Minnesota, have a very strong and well-established corn-based ethanol industry, which utilizes over 35 percent of the corn produced each year in the United States. The U.S. Environmental Protection Agency (EPA) has been slow to implement E-15 as an ethanol fuel blend for wide-scale use in the U.S. The renewable diesel industry in the U.S. has also been growing significantly in recent years, which has become more important for soybean usage in the past few of years. In addition to the direct benefits to farmers, renewable energy plants have become cornerstones in rural communities by providing jobs, adding to the local tax base, and enhancing the overall economic vitality of the communities.
Many leaders point to “sustainable aviation fuel” (SAF) as a key growth opportunity for both the ethanol and renewable diesel industries in the future. However, federal agencies have set up very stringent farm-level practices that farmers must follow in order to be eligible to sell their corn and soybeans to processing plants for SAF production. Due to the restrictions being placed on U.S. farmers and the processing plants, some feedstock for SAF production, such as used cooking oil, is being imported from other countries. Ag leaders wonder how the Presidential and congressional elections, as well as statewide elections, might shape the future for ethanol and renewable diesel.
The new Farm Bill, the struggling rural economy, ag trade agreements, and the future of renewable energy issues are only a few of the issues affecting farm families and rural businesses. There are many other issues and programs that affect rural families, businesses, and communities in a variety of ways. These include dealing with the economic challenges currently being experienced by farmers and rural businesses, impact of labor policies and shortages on rural communities, family health care access and costs, expansion of broadband coverage in portions of rural areas, infrastructure needs, and other issues affecting agriculture and rural communities. Elections do have consequences, so take time to find out where the candidates for national, state, and local offices stand on the issues that are most important to your family, your business, and your community.
Note - For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Phone - (507) 381-7960; E-mail - [email protected]
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