Manager’s Article July 11, 2017

gayCORN YIELDS LIKELY TO REMAIN STABLE – Despite dry conditions for the next two weeks, without a significant heat event in July, national corn yield is unlikely to fall too far below the long-term trend, further expanding global supplies. Given the current state of the 2017 corn crop, and the weather forecasts for early July, final yield shouldn’t fall more than 3 or 4 percentage points below USDA’s trend of 170 bushels per acre.
We will conduct our annual Corn Yield Tour sometime in August and will let everyone know what the outcome for Franklin County is at that time. We are usually pretty close to the state wide average.
With that being said – According to the University of Illinois, farmers planning for 2018 cash rents and acreage allocations can safely plan on corn prices of $3.80 and soybean prices of $9.50.  These are based on trend yields, future price levels, and long-term forecasts by USDA, Food and Agricultural Research Institute, and Chicago Mercantile Exchange.
A $3.80 price for corn would continue a series of corn prices below $4.00 per bushel that began in 2014.  This is assuming that 2017 price averages below $4.00 which could be a premature assumption as yields could still vary from the trend.
Actual prices in 2018 have a large possibility of being different from these 2018 price projections. As has often happened in the past, some combination of events could lead to prices that differ from forecasts. Until those events materialize, using a $3.80 corn price and $9.50 soybean price for 2018 seems reasonable.
Congratulations to all of the 4-H participants for their hard work at the fair this past week. The BBQ and the Auction are the last things being held on Wednesday evening with the BBQ starting at 3:30 pm to 7:00 pm and the Auction beginning at 6:30 pm. BBQ tickets are $7 for adults and $4 for 10 & under.
The Future Energy Jobs Act (FEJA) is one of the post significant pieces of energy legislation ever to pass the Illinois General Assembly. The Act will stimulate job creation with new investments in energy efficiency, wind and solar, and enhance Illinois’ position as a leader in the clean energy economy.
Specifically, FEJA will:
~~Expand energy efficiency programs to drive customer savings while also expanding options for commercial, industrial, and low-income customers.
~~Commit up to $750 million for low-income communities to save money and ensure they have access clean energy and clean energy jobs.
~~Generate $180 million per year —growing to $220 million per year—in funding for renewable resources, including new wind power; large-scale solar power projects; and rooftop and community solar.
~~Provide job training and create thousands of clean energy jobs in energy efficiency, energy innovation, and renewable power industries.
~~Protect consumers through a $0.25 monthly cost impact cap for residential customers through 2030 and a 1.3% cost cap for business customers.
Taken together, these provisions will create tens of thousands of jobs, spark up to $15 billion in wind and solar development, and deliver more than $4 billion in consumer savings.
For more information attend one of the upcoming forums – July 25th at John A Logan College from 1pm to 4:30pm or at Southeastern Illinois College on July 26th from 9am to 12:30pm. To register or for more information call Pam or Lan at (217) 607-1948 or (773) 556-3417 (cell).
Remember we are farmers working together. If we can help let us know

Leave a Reply

Your email address will not be published. Required fields are marked *