Ag Outlook meeting set for Sept. 13

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September 7, 2010

Anonymous CNHI The Rushville Republican Tue Sep 07, 2010, 08:21 PM EDT

RUSHVILLE —

The Rush County Extension Service will present a program titled “Agricultural Outlook 2011” at 7:30 a.m. Sept. 13 at the Root Building on the Rush County Fairgrounds. The program is free to the public, including a complimentary breakfast, and is designed to help farmers, land owners, input suppliers, and those interested in agriculture make better business decisions in the coming year. The program will be presented by Dr. Chris Hurt, an Agricultural Economist from the Purdue campus. U.S. farmers may have record high yields in 2010, yet demand remains strong for grains, soybeans, and food around the world. Will there be enough to feed and fuel the world in 2011? The Agricultural Outlook for 2011 will help answer this and other important questions. The Russian drought has been front page news recently and will reduce world production of wheat. The reductions in Russian wheat exports are expected to sharply increase U.S. exports of both wheat and corn. In addition, much higher wheat prices have farmers considering planting wheat this fall after the lowest Indiana wheat acres on record were seeded in 2009. More wheat acres this fall will compete with corn and soybean acres next spring. Thus, the bidding war for 2011 acres is already underway. The volume of corn used for ethanol will set new records in 2011, but the rate of ethanol expansion is slowing sharply. Will there be enough corn acres to meet those demands next year? China excited the corn market this spring by purchasing U.S. corn for the first time in 15 years. Some believe this could be the beginning of growing Chinese purchases in coming years. Costs of crop inputs appear to be moving upward again for 2011 crops. This program will outline which inputs are headed higher and examine the crops which will provide the strongest expected returns next year. The livestock sector is recovering after two financially devastating years in 2008 and 2009. Most species have reduced herds and flocks and can now pay $4 a bushel for corn and still cover all costs. However, expansion is anticipated for some of the animal industries and the concern is that prices could fall back below costs by late 2011 for some species. Other species are not going to expand and that will mean strong profits for several years to come. The program will outline which of the animal industry will have strong returns in 2011. Everyone close to the land wants to know which direction land values and cash rents may be headed in 2011. The Purdue land values survey indicated Indiana land values dropped a bit in 2009, but recovered in 2010. Hear what the prospects are for 2011. Those wishing to attend should contact the Rush County Extension Office at 765-932-5974 by Thursday to make a reservation to attend this meeting.

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