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Updated Harvest Prices

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November 1st, 2012

Although the final corn and bean harvest prices have not been officially revealed, the University of Illinois in their FarmDoc daily blog, just released their final harvest estimate.  Back on October 11, I posted a guess of the final corn price being $7.55 per bushel.  FarmDoc indicates a final price of $7.50 (I was a nickel too high).

In the same post, I thought soybean prices would average $15.30 and FarmDoc estimates this number at $15.39  ( I am off by 9 cents, but about the same percentage).  My net miss for both crops was 4 cents.

The original spring price for corn was $5.68.  Therefore, the final difference is $1.82 which about a 32% increase over the spring price.

The original soybean spring price was $12.55 and the final number represents a $2.84 increase or about 23%.  I believe these are largest price increases ever, but the percentage increase is third and sixth highest ever for corn and soybeans, respectively.

The FarmDoc post has additional information on the history of these price differences.  They are also are predicting average GRIP payments for Illinois districts and it appears that extreme drought recorded in Southern Illinois may result in GRIP payments exceeding $800 per acre.

2012 is shaping up as a year where crop insurance more than pays for itself (just ask your banker).

Paul Neiffer, CPA

Paul Neiffer

Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a partner with CliftonLarsonAllen in Yakima, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation. Leave a comment for Paul. If you would like to leave a comment for Paul, follow the link above, however, please make sure to include your email address so that he can reply to your comment (your email address will not automatically show up).

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    Great time with @MRRChip today on Market Rally talking about the new farm bill. 1 day ago

    Drove over 2,000 miles in last 12 days. Saw a lot of good looking corn. Beans not so much 3 days ago

    When you drive through Minnesota, South Dakota and Iowa this time of year you see a lot of corn and beans and not much else 2 weeks ago

    Possible another reason for high US corn yield estimates is acres switched to beans were lower yield corn acres 2 weeks ago

    Don't understand why nobody claims the USDA manipulates the data when the report is bullish 2 weeks ago

    USDA pegged lower corn production but if yields trends continue this will quickly change to production increase. 2 weeks ago

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    If prices stay where they are at I estimate some farmers will $100 ARC payments next October. Could be difference between profit & loss 2 weeks ago

    I think the corn and bean markets are starting to feel like Brazil in the World Cup on Tuesday 2 weeks ago

    Do the Highs in Live Cattle equal the Lows in Corn and Beans 2 weeks ago