There is a misconception that the revenue protection insurance program guarantees a price. It does not. It does, however, guarantee minimum dollars per acre.Back in 1997 the U.S. crop insurance program shifted to a "revenue protection" program. WPI has written about this program often and will likely continue to do so in the future. It has been the major reason (at least in my opinion) for the runaway appreciation in land values and cash rental rates. The program is designed to guarantee farmers' revenue per acre for the next crop. It is based on proven yield history, planted acres and a pre-determined price point. The initial (and minimum) price point is determined during the month of February for the spring planted crops. The second price...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.