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
Wheat Alternatives
Wheat Alternatives: Maximizing Profitability in a Tough Market
With wheat prices in Texas steadily declining, farmers are once again facing tough decisions about how to maximize returns on their crops. As cash wheat prices dip below the breakeven point, alternative uses for wheat—such as grazing or baling—may offer better profitability. This year, with drier conditions than last and future wheat prices still below breakeven, it’s more important than ever to carefully evaluate your options. By comparing wheat for grain, grazing, and hay, we can determine which strategy is most financially viable given the current market. [Read more…] about Wheat Alternatives
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
Ag Economic on the Plains – Year in Review
(Laura McKenzie/Texas A&M AgriLife Marketing and Communications)
Welcome to our final post of the year. Today, we will review the economic topics that garnered the most attention in 2024 and discuss some of the challenges we anticipate in the upcoming year. Andrew and I are wrapping up the blog for 2024. Enjoy this Holiday Season, and see you all next year!
[Read more…] about Ag Economic on the Plains – Year in Review
Management Information System
Photo by Laura McKenzie
In today’s competitive agricultural environment, a Management Information System (MIS) it’s a necessity. Whether you’re managing a small family farm or a large commercial ranch, this tool can help you make data-driven decisions, improve efficiency, and achieve your goals. [Read more…] about Management Information System
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.
USDA Management Tool to Help Mitigate Drought Losses – PRF
In recent years, drought has been a common occurrence in Texas. The U.S. Currently, the Drought Monitor reported that approximately 90.5% of Texas is experiencing some level of drought as of October 22, 2024 (Fig 1). Producers are increasingly adopting the USDA’s Pasture, Rangeland, and Forage Insurance (PRF), recognizing its crucial role in supporting ranchers during these challenging times. Texas has enrolled 42.8 million acres in this program in 2024 (a 191% increase from 2011). The most exciting factor of this program is that it showed positive net benefit of indemnities over premiums in many cases. But most importantly, it generated significant payments in those years when it was needed most. [Read more…] about USDA Management Tool to Help Mitigate Drought Losses – PRF
Wheat 2024-25 Budget and Breakeven Prices
The current downward trend in wheat prices continues to impact wheat production in our area.
The prices are currently at or below the economic breakeven levels calculated for various regions
within our districts. Additionally, higher costs and an expected dry season due to another La
Niña year are increasing the risk for ranchers this year. [Read more…] about Wheat 2024-25 Budget and Breakeven Prices
The Impact of Peer Advisory Groups on Agricultural Producers: Enhancing Farming Practices and Business Success
Peer advisory groups serve as a resource for farmers and ranchers by fostering collaboration, exchange of experiences, and problem-solving. By sharing information and utilizing each member’s strengths, peer advisory groups help farm businesses thrive in a competitive environment.
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.