No matter how you cut it, 2012 was a very good year to be a famer in the U.S. Not drought, pestilence or fiscal cliff could slow the juggernaut of rising net farm incomes and soaring land values. There were many assorted players that contributed to the enormous profitability:
An incredible crop insurance program that guaranteed high net income regardless of the level of production. The massive Corn Belt drought of 2012 likely enhanced -- not hurt -- net farm income because of the high revenue insurance guarantee and reduced harvest expenses. A tax scenario that allows farmers to accelerate expenses and defer income. More importantly, there was the bonus depreciation tax incentive in 2012 that allowed farmers to fully depreciate (100...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
