According to a March 6 report from the U.S. Energy Information Administration (EIA), estimated ethanol production margins at U.S. corn ethanol plants averaged 22 cents per gallon in 2017.
While steel tariffs are currently grabbing most ag headlines these days, possible changes to the Renewable Fuel Standard (RFS) may produce longer term challenges for U.S. agriculture. Battle lines between oil refiners and ethanol producers and their suppliers (corn growers) have been clearly drawn.
According to a Dec. 13 report in Agrimoney.com, MetLife thinks the official estimates for this year’s U.S. harvest may be too large and that there will be a global production “pullback,” that could result in the new year being a “turning point” for grain prices.
In today's newscast, we look at 2014 forecasts that point to a softening in the ag equipment market, what a shift from corn to soybeans could mean for equipment sales, the new financial report from ag equipment manufacturer Buhler Industries and the increase in demand for lawn and garden equipment.
It has been shown that U.S. sales of farm machinery closely correlate with the price of U.S. corn. With the two core components of demand for corn being exports and ethanol, equipment dealers and manufacturers closely scrutinize the trends in both these segments.
While opinions vary on the impact the drought will have on farm equipment sales for the rest of this year and next, most analysts agree the lower yields will result in higher commodity prices. This combined with the wider use of crop insurance is likely to blunt a major falloff in ag machinery sales in 2013.
With relatively mild weather this past winter across much of the U.S., prospects were favorable for the 2012 U.S. corn crop to be planted early this year. Planting progress data for corn indicated an advanced pace through much of the spring.
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There was plenty of technology on display at the World Dairy Expo in Madison, Wis., a few weeks ago. Farm Equipment editor Mike Lessiter caught up with Monarch Tractor’s John Issacson and got his take on the top 5 applications in autonomy right now.