The fall corn and soybean harvest is now getting into full swing in many portions of southern and western Minnesota. Primary attention is being focused on the soybean harvest, as many soybeans have now reached maturity, and timeliness is very critical to prevent soybean harvest loss. Frequent rainfall events in the past couple of weeks have slowed soybean harvest in many areas. Early soybean yield reports are predictably highly variable in Southern Minnesota, ranging from less than 40 bu./acre to over 60 bu./acre. Most growers are reporting good to excellent soybean yields thus far. Some farm operators have also harvested some early corn; however most producers will be letting the corn dry-down naturally in the field before harvesting the corn, in order to reduce corn-drying costs. Early corn yield reports in southern Minnesota are above average, but below the record corn yield levels achieved in 2005.
Expected CCPs This Fall
2005 – The estimated final level of earned CCP payments is expected to be about $.37/bu., based on a final National Average Corn Price of $1.98/bu. for 2005. (Please note that this will not be finalized by USDA until after Sept. 30, 2006.) Based on the current estimate, the entire advance CCP payment on the 2005 corn crop ($.28/bu.) can be retained by producers that received the advance CCP payment, plus they will likely receive an additional $.08 or $.09/bu. final CCP payment in October, 2006. Producers that chose not to receive the advance CCP payments will receive the entire 2005 corn CCP payment of an estimated $.37/bu. in October, 2006.
2006 – No advance CCP payment is likely on the 2006 corn crop, given current USDA national average farm corn price estimate of $2.35/bu. for the 2006 corn crop. The $2.35/bu. price estimate for the Sept. 1, 2006, through August 31, 2007, marketing period is based on the latest USDA Supply and Demand Report released on Sept.12, 2006. Any additional advance CCP on the 2006 corn crop in February, 2007, will depend on the national average corn price projections by USDA in late January, 2007.
2005 – The National Average Soybean Price for the 2005 crop marketing year is estimated at $5.65/bu., which means that no CCP would be earned on the 2005 soybean crop. No advance CCP was made on the 2005 soybean crop, so no CCP repayment is necessary on 2005 soybeans
2006 – An advance CCP payment on the 2006 soybean crop is not likely this fall, given current USDA national average farm soybean price estimate of approximately $5.40/bu. for the 2006 soybean crop. As with corn, any future advance CCP in February, 2007, will depend on price projections in late January, 2007, and any final CCP on the 2006 soybean crop will not occur until October, 2007.
As fall harvest season begins, it’s always good to remind to everyone to review their farm safety procedures in their operation. More farm accidents occur during the fall than at any other time of the year. Special care should be taken with children and senior citizens around farm and grain handling equipment, as these groups are the most vulnerable to farm accidents. The non-farm public also needs to pay extra attention when driving on rural roads during harvest season, especially before and after work and school. Farm vehicles are larger and move much slower than cars.
Editors note: Kent Thiesse is a former University of Minnesota Extension educator and now is Vice President of MinnStar Bank, Lake Crystal, MN. You can contact him at 507-726-2137 or via e-mail at [email protected].