This Week In Ag #154
Old Man Winter has a wicked way of making time stand still during February. Bundled head-to-toe, watching gale-force winds blow snow mercilessly across the frozen prairies and plains, you wouldn’t expect much focus on farming. But the year’s shortest month is long on ag activity.
This is when market prices for Federal Crop Insurance are set. There are two key components for determining FCI revenue: Actual Production History (APH, which documents yields over time) and Projected Price per crop. During February, the average futures prices for December corn and November soybeans are calculated to determine the projected price. Last February, we saw market highs for corn in February. It was the only time corn reached above $5. That helped boost the FCI price to $4.70. It looks like we’ll fall short of that for 2026.
Now is tax time for farmers. Unlike other self-employed businesses, farmers are not required to make estimated quarterly tax payments. They pay it all on March 1. That’s due to the constant ebb and flows their business. Crop and livestock sales can occur any time throughout the year, based on market prices. Yet farmers still keep close watch on financial projections, especially in Q4, as December equipment purchases or pre-pays of the following year’s crop inputs can serve as tax write-offs.
Travel through the Central Valley of California, and you’ll see a different kind of white than what’s in the Midwest. It’s the beautiful blooms from almond trees. This is the ideal time to treat the trees with yield-enhancing products.
Spring calving season begins now. By calving earlier, producers can achieve heavier weaning weights, as calves have more time to put on weight.
Equipment maintenance and repair are going on in the machine sheds. This is the perfect time to inspect, replace worn parts and make improvements to planting equipment and change oil in tractors.
It’s the pinnacle of trade show season. This provides farmers with a great opportunity to kick tires and learn about new products and techniques, while they still have time to implement them for the upcoming production season. February is the time to attend popular shows such as CattleCon, Mid-South Farm & Gin Show, World Ag Expo, Farmer-to-Farmer and Commodity Classic – where I’m excited to be this week!
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