Harvest and Yields
We had favorable weather for fall harvest in west central Ohio and east central Indiana. Harvest was completed timely. The crops dried down in the field, and we had little to no corn drying expense. Yields were surprisingly good, considering the excessive moisture in June and early July. The saturated soils temporarily stunted bean growth this summer and gave us concerns of fungal diseases in the crops. With the drier conditions in late July and August, the crops recovered nicely. Bean yields in the region were generally in the 55-65 bu./acre range and most of the corn yielded over 200 bu./acre on productive well-drained soils.
Real Estate Market
The farm real estate market had peaked. The market for highly productive soils in competitive areas is holding firm, while we have seen a decrease in marginal farmland values. If you have thoughts of selling your property, Halderman Real Estate Services can help you determine a potential sale price range and how best to market the farm.
The November 10th USDA crop production report was bearish on the commodity markets. U.S. corn production estimates increased 1.3 bu./acre from the October report to 169.3 bu./ac. With this figure, the 2015 corn yield will be the 2nd highest yield on record. The bean estimate increased by .08 bu./acre from the October report to a high 48.3 bu./acre. We are pleased with the yields in our region, but there will be challenges finding significant market rallies to price grain this winter.
There will be challenges, as well, to maintain land lease terms based on tighter operating margins. The higher than expected yields in our region will help counter the drop in the commodity prices, but still net farm incomes will be lower. Lease terms on managed properties have remained mostly unchanged for the 2016 crop.
Enjoy the upcoming holiday season, and do not hesitate to call the Halderman Companies for your farm management and real estate needs.