Transcript SURVIVING THE RISK: A look at lease agreements, budgets, communications and much more!

SURVIVING THE RISK:
A look at lease agreements, budgets, communication
and much more!
Abstract
Delmarva is known as the corn belt of the East Coast. Large commercial grain farms have formed
over the years to feed Delmarva’s large poultry industry. In October of 2006 the feed grains
commodities began an uptrend in price, which was driven by increased demand of corn for the
ethanol industry and uncontrolled influx of hedge fund into the commodities market. Grain prices
have since decreased sharply due to the downturn in the stock market causing many farmers to
reevaluate their budgets, rental agreements and marketing plans.
A regional Extension program was designed to provide the tools and resources for farms
experiencing this price squeeze. “Surviving the Risk: a look at lease agreements, budgets,
communication and more” was developed to address the current volatility and price margins of
agricultural producers. It began in December of 2008, directed at 15 rural business providers
including banks, lenders and advisors. In 2009 these programs were conducted for 45 farmers.
Excel spreadsheet budgets, curriculum from Ag Decision Maker (University of Iowa) and Winning the
Game (University of Minnesota) were utilized. Also incorporated were new and innovative tactics
such as a farm newsletter and resume to foster landowner and tenant relations.
As a result of the workshops, participant intentions include: 81% creating crop budgets, 77%
increasing communication with landlord and 92% having new resources. In follow up evaluations,
two attendees have created a resume and sent it to 5 landowners.
This regional Extension program addresses timely topics affecting the profitability of our family farms.
Impacts
Materials and Methods
This series of workshops started by educating agricultural loan specialist
from local banks, farm credit and the farm service agency. Topics covered
included crop budgets, custom rates, grain marketing basics, landlordtenant relationships, crop insurance, new farm bill programs, lease
agreements, and an introduction to flexible leases. The loan specialists
were asked to send their customers to the next series of meetings.
These meetings were held in three locations on the Eastern Shore of
Maryland.
An informational workbook was put together as a resource for the
attendees. The workbook included all presentations along with a new
custom rate chart, soil types productivity table, examples of a farmer
newsletter and resume, copies of sample lease agreements, list of
resourceful websites and a section on leasing your farm for hunting. All
information was also posted on the Maryland Grain Marketing website,
so information could also be downloaded for easier use. From this series
of workshops a need was discovered to teach farmers the basics of excel.
Two weeks later, an interactive educational program was offered that
taught the basics of using spreadsheets and each participant received a
2G memory stick with a folder of functional farm spreadsheets.
Website
www.mdgrainmarketing.umd.edu
Results
F RANK ’ S F ARM
What’s Going On
“What’s Going On”
Since my last quarterly newsletter, we have
completed the fall harvest. We are finally
getting the rain we much needed this past
summer. Grain prices have fallen dramatically
since the fall of the stock market and oil
prices. The corn crop was average this year,
but the soybean crop was below average since
we didn’t have much rain when the soybeans
needed it. We have cleaned and waxed all
equipment and put it away for the winter.
Fannie and I have been busy attending and
speaking at the County Commissioners and
Planning commission meetings about the new
proposed ordinance 08-25
Crop conditions
Our wheat crop is looking good so far. The
crop had very even emergence this fall while
getting some good growth before it got cold.
We planted the maximum amount of acres of
cover crop, which is part of the Maryland
Department of Agriculture Cover Crop
program.
Weather update
Lots of rain so far this winter! The water table
is still low, so we hope the moisture will
continue in the form of rain.
Acknowledgements
Jennifer Rhodes, Shannon Dill, John Hall
Extension Educators, Agriculture & Natural Resources
Frank Farmer
Frank and Fannie Farmer
100 Better Farmer Lane
Centreville, Maryland 21617
Phone : (410) 758-9999
Fax: (410) 758-9988
E-mail: [email protected]
Winter 2009
V o lu me 1, Issu e 1
5
Commodity prices (as of 12/29/08)
Cash Wheat July 09 $4.74
Cash Corn Dec 09 $4.30
Cash Soybeans Nov 09 $9.19
Call the QAC Extension office daily for prices
410 758 0166 ext 25
Technology update
We are working on printing our yield maps for
each field. We had a great deal of deer
damage on most of our farms. We are working
with Quality Deer Management to develop a
plan to manage deer.
Upcoming events
Regional Land Use Policy Forum – Jan 21st,
Chesapeake College.
Agronomy Day – March 6th, QAC 4-H Park
See other dates in the Extension Ag
Newsletter
Conclusion
This has been an historic year as far as the
cost of inputs and the price of commodities.
We are working on crop budgets for this year,
so far the cost of fertilizer has decreased,
thank goodness since the commodity prices
have fallen.
HAPPY NEW YEAR!
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.