Projected crop insurance prices for counties in AgriLife Extension Districts 1 and 2 were set in February. Today, we consider what these prices imply about the financial risk that producers face in 2025. [Read more…] about Projected Crop Insurance Prices and Revenue Guarantees in 2025
Examining the 2025 Corn and Sorghum Budgets
Corn on Tuesday, Sep 17, 2024, in El Campo, Texas. (Michael Miller/Texas A&M AgriLife)
The 2025 crop and livestock budgets are available on the Texas A&M AgriLife Extension Economics website. In today’s post, we break down the District 1, District 2, and District 3 corn and sorghum budgets and discuss what they imply about feed grain production in 2025. [Read more…] about Examining the 2025 Corn and Sorghum Budgets
Examining the 2025 Cotton Budgets
Cotton on the Texas A&M AgriLife Farm in Snook, Texas on Sept. 9, 2021. (Sam Craft/Texas A&M AgriLife Marketing and Communications)
The 2025 crop and livestock budgets will soon be available on the Texas A&M AgriLife Extension Economics website. In today’s post, we break down the District 1 and District 2 cotton budgets and discuss what they imply about cotton production in 2025. [Read more…] about Examining the 2025 Cotton Budgets
Input Costs in 2025
As we enter a new year, producers are making plans for a new crop. Those plans will depend in part on their expectations regarding their costs of production. In this post, we’ll discuss our expectations for five important costs in 2025. [Read more…] about Input Costs in 2025
Using Financial Ratios to Manage Debt, part 2
Does your business generate enough income to make scheduled debt and lease payments? If necessary, could that income also cover payments on additional debt? In today’s post, we’ll look at a set of financial measures that can help you answer these important questions. [Read more…] about Using Financial Ratios to Manage Debt, part 2
Use Financial Ratios to Manage Debt
Can you borrow to finance new purchases when you need to? Or will borrowing more put your business at risk of bankruptcy? Your ability to answer these questions accurately is an important part of managing your business for long-term success. In today’s blog we’ll look at some information taken from a farm’s business records that can help you make financially responsible borrowing decisions.
Considering the Impact of Loan Structure on Loan Cost
An important part of managing a farm business is managing debt. Producers who utilize debt effectively can increase the profitability of their operation. However, borrowing comes at a cost. Today, we’ll discuss the different types of loans available to producers and their structures. We’ll also look at how different loan structures impact the cost of borrowing.
[Read more…] about Considering the Impact of Loan Structure on Loan Cost
To Harvest or Not to Harvest? Cotton Harvest Decisions
Cotton harvest on Oct. 20, 2021. (Courtney Sacco/Texas A&M AgriLife Marketing and Communications)
It’s almost time for producers to begin harvesting cotton in this part of the state. Today, we look at the decision to harvest low-yielding fields and discuss the costs and benefits of doing so. We also present a tool to help producers evaluate the profitability of harvesting cotton from low-yielding fields. [Read more…] about To Harvest or Not to Harvest? Cotton Harvest Decisions
Building a Drought Management Plan
Droughts have had devastating effects on our operation. While 50% of the Southern Plains are not currently in a drought, the CPC-IRI Forecast has increased the likelihood of having a Niña season by the end of this summer until the end of the 2025 winter, which is correlated with lower rainfall in our area. To prepare our business for the future and ensure long-term sustainability, we must have and implement a drought management plan.
What yields do we need to be profitable?
Wheat prices have increased in this last month. Still, Texas farmers are facing challenges due to high price basis and high production costs. To be profitable, above-average yields are needed. Today will discuss which breakeven yields do we need have a profitable wheat crop.