Surviving the Risk: A look at lease agreements, budgets, marketing and more!
Delmarva is known as the corn belt of the East Coast. Commercial grain farms have formed over the years to feed Delmarva’s large poultry industry. Due to the increasing need for grain, farmers have been receiving higher grain prices. In October of 2006, the feed grains commodities began a long uptrend in prices, which was driven by the increased demand of corn from the growing ethanol industry in the Midwest and uncontrolled influx of hedge funds into the stock market. As a result, grain prices received by U.S. farmers doubled and tripled in 2007. Unfortunately, Delmarva farmers did not prosper in 2007 due to a widespread drought and reduced yields.
The effect of increased grain prices created a wave of increased costs to our farmers. Crop inputs have sky rocketed with equipment, fertilizer, seed, and fuel prices doubling and tripling. Landowners heard of this new prosperity and they also wanted a part in the “profits”. As a result, land rental rates increases are being proposed and disputes arise between the landlord and the farmer. Grain prices have since decreased due to the downturn in the stock market causing many farmers to reevaluate their budgets, rental agreements and marketing plans.
The workshops will include crop budgets, custom rates, lease agreements, new farm bill programs, crop insurance and grain marketing. Bankers, farm loan specialist, farmers and landowners will be invited to attend.
This regional Extension program addresses these timely topics affecting the profitability our family farms.
|Conference||2009 National Extension Risk Management Education Conference|