On the next rainy day, take a few moments to check out some of the latest releases on Farmdoc at www.farmdoc.uiuc.edu, the University of Illinois Department of Agricultural and Consumer Economics web site.

Marketing

• "Looking Beyond the Corn and Soybean Harvest" by Darrel Good released September 26, 2005. Darrel gives us an outlook for the 2005 corn and soybean prices beyond harvest.
• "Corn Pricing Alternatives" by Darrel Good released September 19, 2005. Darrel discusses the impact of our lowest basis level in two decades from the larger than expected crop yields and snarled transportation. He reviews strategies for Loan Deficiency Payments, loan program, forward pricing, or hedging with put options.

Management

• "Variable Cost Increases for Corn and Soybeans in Historical Perspective" by Gary Schnitkey and Dale Lattz released September 30, 2005. For the four year period 2002-2006, variable costs for corn are projected to be $55 per acre higher in 2006 than in 2002 and soybeans will be $22 per acre higher over the four year period. In percentage terms, cost increases are 33% for corn and 19% for soybeans for the four year period. Increases of this magnitude have not occurred in recent history and will cause reductions in farm profitability.
• "Effect of Higher Fuel Prices on Machinery Costs" by Dale Lattz and Gary Schnitkey released September 23, 2005. Dale and Gary update the April, 2005 Machinery Cost Estimates to reflect our recent higher diesel prices for fall machinery operations. The April cost estimates used a diesel fuel cost of $1.50 and they updated costs in 50 cent increments to reflect diesel fuel price up to $3.00 per gallon. For example, Corn harvesting uses 3.75 gallons per acre and diesel fuel at $1.50 costs $5.63 per acre and diesel fuel at $3.00 costs $11.25 per acre.
• "2005 and 2006 Crop Budgets: Implications for Cash Rents and Production Decisions" by Gary Schnitkey and Dale Lattz released August 30, 2005. Gary and Dale examine per acre returns for corn and soybeans in 2005 and 2006 that are projected to be significantly lower than returns in 2003 and 2004. Landlords and tenants may wish to renegotiate cash rents. Fertilizer and fuel costs have increased dramatically causing soybean profitability to increase relative to corn profitability. Shifting acres to soybeans, reducing fertilizer rates, and eliminating tillage passes may be economical.

Farm Beginnings

Illinois Farm Beginnings is the educational and support program designed to assist people plan and begin sustainable agriculture enterprises. The ten session program begins October 22 in Bloomington and ends March 16, 2006. For further information, go to www.farmbeginnings.uiuc.edu or contact Deborah Cavanaugh-Grant at (217) 968-5512.