November 9, 2012
Market Journal: Grain Sales and Year-End Tax Planning
On this week's Market Journal Jeff Peterson, president of Heartland Farm Partners in Lincoln, reviews the USDA November Crop Report and discusses sales strategies for corn, soybeans, and wheat. Peterson expects soybean exports to China to continue at a good rate, partly due to a reduced harvest predicted for South America. Corn exports should pick up soon, he says, and growers may want to delay selling both their old and new crop corn. (See segment, at right, for more on the grain markets.)
Also on this week's program:
- Year-End Tax Preparations — Tina Barrett, director of Nebraska Farm Business, Inc., discusses tax changes and why this is an excellent time to do your end-of-year tax planning. Unlike the past couple years, depreciation will be more limited this year, which could mean fewer new trucks on Main Street, Barrett says. Production margins are tighter than they were for several years and are likely to be tight again next year with input costs where they are. A lot of tax laws will expire at the end of this year. That factor, along with the chance for continued drought, is complicating long-term tax planning and decisions about whether to defer income.
- Optimizing By-Products — Drought has decreased the supply of corn across the country, lead to price increases. Producers buying distillers grains from ethanol plants now face a price nearly equal to corn. Terry Klopfenstein, UNL professor of animal science, discusses how to optimize the use of by-products in feedlot diets.
- Platte River Plan Update — In May, two Platte River basin Natural Resources Districts proposed converting irrigation from surface water to ground water in hopes of helping meet water needs of the Platte River. The Central Platte NRD and the Twin Platte NRD then commissioned a feasibility study on converting canal irrigation to underground wells. UNL Extension ag and water law specialist Dave Aiken explains portions of the report.
- Drought Effects on Windbreaks — Unusually high temperatures with little precipitation may have led to deterioration of windbreaks last summer. Dennis Adams, a forester with the Nebraska Forest Service, says producers can look at renovating or building windbreaks with adapted trees for Nebraska.
- Weather Update — How much of a change in temperature can we expect and for how long? Al Dutcher, UNL Extension state climatologist, gives his weekly forecast.
View this week's program, as well as previous programs, online at marketjournal.unl.edu and watch for future broadcasts on these networks.
- NET1 – Saturday, 7 a.m. CT
- NET2 – Sunday, 9 a.m. CT
- Podcast on iTunes