World Perspectives
feed-grains soy-oilseeds wheat

Another Very Good Year for Farmers

No matter how you cut it, 2012 was a very good year to be a famer in the U.S. Not drought, pestilence or fiscal cliff could slow the juggernaut of rising net farm incomes and soaring land values. There were many assorted players that contributed to the enormous profitability:

An incredible crop insurance program that guaranteed high net income regardless of the level of production. The massive Corn Belt drought of 2012 likely enhanced -- not hurt -- net farm income because of the high revenue insurance guarantee and reduced harvest expenses. A tax scenario that allows farmers to accelerate expenses and defer income. More importantly, there was the bonus depreciation tax incentive in 2012 that allowed farmers to fully depreciate (100...

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feed-grains soy-oilseeds wheat

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U.S. grain transportation markets are slowly recovering from the shocks of bitter cold weather and low water levels on the Mississippi River System and from the surge in export demand. The latter is also causing strong rallies in ocean freight markets, particularly in the Atlantic basin. With g...

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livestock

Livestock Round Up: Cattle Margins and Distribution

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From WPI Consulting

Illuminating the value of technical research

On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.

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