Weekly Outlook - Cattle Producers Show Surprise Interest in Expansion

While beef supplies will be very short for several more years, the USDA’s Cattle report indicated that the very early stages of beef cattle expansion has begun as beef heifer retention has increased a modest one percent. However, the big picture is that beef cow numbers dropped 3 percent last year and this will mean a smaller calf crop in 2012 that will keep cattle slaughter small for 2013 and 2014. If producers follow through with more heifer retention in 2012 and 2013, slaughter supplies will decline over the next two years and increase finished cattle prices even more.

There have been two dominate drivers of cow numbers in recent years. The first was the dramatic increases in feed prices after calendar year 2007. The beef industry could not pass higher feed costs on to consumers in 2008 and 2009, but rather had to suffer negative margins. Poor returns led to liquidation of beef cows that has continued into the current report. The second large driver was the drought in the southern Plains in recent years that caused further liquidation of cows due to lack of pasture and forages. <Read More> 

Purdue On-Farm Research Opportunities

Over the years, Spencer County has been the site of many field crop research efforts and variety trials, including the wheat variety plot, one of just three Extension-sponsored wheat plots in the state, the soybean cyst plots of years past, and various industry-sponsored research.



Planting Spencer Co. corn seeding rate
trial in 2010



In recent years, Purdue Extension has renewed its focus towards on-farm research. These new research efforts involve full-scale, field-sized research trials in which producers around the state collaborate with local educators and state specialists and host the trials.

On-farm research not only seeks to identify answers to important questions but may also serve to validate previously discovered answers or convince growers that an alternative crop management practice is profitable for their own situations.

Current on-farm research efforts include:
     1) Seeding rate trials in corn and soybeans

     2) Evaluating early-applied foliar fungicides in corn

     3) Nitrogen rate trials in corn

     4) Soybean fungicide efficacy trials in soybeans.

The efforts require very little extra effort on the part of collaborators beyond normal field operations.

We are currently looking for Spencer County producers who are interested in serving as collaborators in any of these research efforts.

Additional information on the five research efforts can be found at the On-Farm Research website.  If you are interested in participating in one of these projects or would like more information, please contact the Extension Office at (812) 649-6022 or nheld@purdue.edu.

New Purdue Custom Farming Rate Survey

The Purdue Custom Rate publication, EC-130, which lists average custom farming rates in Indiana, is one of the most requested Purdue Extension publications in Spencer County and around the state. However, as anyone who uses the custom rate report knows, it is far from perfect. For one, it is only updated every four to five years and as a result, it does not always accurately reflect changes in the current economic climate, such as changes in commodity or fuel prices.

Second, it contains a limited number of field operations, especially when compared to similar reports from Iowa State or Ohio State, and does not always provide all the information producers are seeking. Both of these problems are due, at least in part, to the data collection method and its very limited reach.

To address these problems, the data collection has been changed significantly for the 2012 report. In the past, the survey was a part of NASS surveys and reached only a couple hundred producers, leaving many items on the survey with little or no response. The custom rate survey is now available to any producer in the state who either does or hires custom work or otherwise has knowledge of custom work rates.

Locally, the survey will be available at upcoming events, such as PARP sessions, Crop Day, and Corn and Soybean Day. The survey is also available at the Extension Office and is posted on the Purdue Extension-Spencer County website under the “Hot Topics” section.

If you are involved with any type of custom work, I hope you will consider filling out the survey to help improve and expand this important resource.

Weekly Outlook - Corn Price Swings to Continue

Since early October, corn prices have bounced in a wide trading range.  March 2012 futures have traded between about $5.75 and $6.75 while December 2012 futures have been between about $5.35 and $6.20.

The wide price fluctuations have reflected numerous changes in indications of underlying supply and demand for corn.  Those changing factors included USDA production and stocks reports, South American weather, the rate of exports and export sales, the rate of ethanol production, and expectations about the potential size of the 2012 U.S. crop.  Prices have also likely been influenced by the volatility in the financial, currency, and metals markets.  Currently, March 2012 futures are near the middle of the four-month trading range, while December 2012 futures are in the low end of the recent range. <Read More>