Dairy Revenue Protection (DRP) is a new federally subsidized insurance plan specifically for dairy producers. DRP protects revenue based on price and production.
Coverage is provided on declines in quarterly revenue from milk sales relative to the guaranteed coverage level.
DRP is an area-based plan of coverage and does not insure a dairy’s individual milk production. Production for the insurance period will be determined on the state-level with milk production reports from the National Agricultural Statistics Survey.
Coverage is available quarterly and can be purchased into the next year. Daily quotes are available for up to five quarters and endorsements may be purchased daily. The chart below details the purchasing windows.
To determine the level of coverage, dairy producers must decide on the following:
The value of the milk protected – class or component pricing
Class Pricing – uses Class III or Class IV futures prices
Component Pricing – uses component milk prices for butterfat protein
The amount of milk production to cover
Determined by the producer and can be less than the actual quarterly estimated production.
Coverage level from 70-95% with a protection factor up to 150%
Quarterly endorsement based on the current sales period
Contact your local crop insurance agent to learn more about how Dairy Revenue Protection can work for your operation.
WHOW THE BIG 1520 across Central Illinois, 92-point-3 FM in DeWitt County, and 106-point-5 FM in Logan County, again sponsored the Antique Tractor Show Contest at this week's Greater Peoria Farm Show.
Attendees were invited to submit their favorite antique tractors on display, on ballots during the show.
WHOW announced those winners today on its Noon Farm Show. They included first place winner being a Farmall 460 owned by Roger Henderson, of Jacksonville, IL who won a 150-dollars from WHOW.
Second place was a 1951 Oliver 77 owned by George Weyrich of San Jose, Illinois, who won a 100-dollars from WHOW.
Third place winner was a 1944 VA Case owned by Robert Blue, of Canton, Illinois, who won a 50-dollars from WHOW.
WHOW and the Greater Peoria Farm Show thank all the antique tractor owners that brought their machinery to this year's show.
For the last four years, the land value benchmark study completed by FCI each summer has shown an overall decline in value. But in certain cases, values have risen year after year. What factors affect the overall trend in your local market? Download the full 2018 report for detailed findings.
1. Commodity Prices
Land values typically correlate with commodity prices. When one goes up, the other follows suit, helping fuel the dramatic rise in land values from 2003-2014 and contributing to declining values since 2015.
Exports are crucial to corn and soybean pricing. Illinois farmers are expected to export 2.225 billion bushels of the 2018-2019 corn crop and 2.04 billion bushels of new crop soybean, according to a July USDA report. If trade negotiations are made, a small correction to commodity prices may prove beneficial. However, if negotiations drag on and tariffs remain, commodity prices will remain low, translating to lower Illinois land values.
3. Rising interest rates
Historically low interest rates from 2008-2015 made the cost of borrowing money for land owners and farm operators decrease, allowing for increased investment. The cost to borrow money has increased as the FOMC raised rates by a quarter point seven times so far since 2015. Each hike reduces the demand for farmland and increases the competition of other investment opportunities.
4. Supply and Demand
Currently in Illinois, less than one percent of farmland transfers ownership in a calendar year. A large amount of farmland was sold before the end of 2012 in response to the possibility of changes to capital gains tax law. Since then, the volume of farm sales moderated and remains low. Even with signs of reduced working capital on some farms, there haven’t been many liquidation sales coming to the market. This lower supply coupled with steady demand, have caused prices decrease only slightly.
As with all real estate, location is key. Certain areas of the FCI territory remain closely held by a small number of owners. When a farm becomes available in these areas, there is more than sufficient demand, driving prices above typical market values.
Factors within and outside your local region contribute to its land values. Overall, farm prices are expected to continue declining moderately in correlation with lower commodity prices, rising interest rates, and lower net farm incomes. However, given your area’s market condition and its specific land class, farmland can deviate from the norm.
Local farm broadcaster Jared White is traveling Central Illinois recording his popular Combine Reports. He's riding with local farmers in their combine, recording interviews on how this year's growing season went, and how harvest is progressing.
Jared is riding in a 2019 Chevy Silverado provided by Baum Chevrolet Buick in Clinton. The Silverado is the Official Truck of this fall's illinoisfarmradio.com Combine Reports.
The 2019 Chevy Silverado has gotten Jared into fields to visit with Central Illinois farmers in the midst of harvest.
Its solid body style still provides Jared with a smooth ride, even among the corn stalks!
Whether the field is near an oil derrick or a township road, Jared rides in comfort in the 2019 Chevy Silverado provided by Baum Chevrolet Buick in Clinton! The Silverado is the Official Truck of this year's illinoisfarmradio.com's Combine Reports!
Posted September 17, 2018
Rebecca Wiggins, a 16-year-old writer from Taylorvillle, attended the Illinois State Fair last month. She provided illinoisfarmradio.com this article on her perception of the Fair from a city girl's perspective.
Here is Rebecca's article:
Attending the State Fair has always been an entertaining and enjoyable experience as a long-time resident of central Illinois. As I have grown I've discovered that there is much more to explore than just unique food combinations and thrill-inducing rides. This past week I have had the opportunity to venture through the fairgrounds learning more about agriculture and what makes this industry vital to Illinois.
Living in downtown Taylorville for the majority of my life, I did not have much experience when it came to farming, or even realizing how valuable the agricultural industries are to our area. I knew of agriculture and farming from observing our corn and beans growing throughout the summer along Route 48, or watching the grain trucks and tractors pull into the elevator on Route 29. I simply did not realize the impact that agriculture nor those corn and beans had on our global economy.
On Thursday, August eighth, I was able to attend the Butter Cow unveiling in the Dairy Building on the grounds of the fair. The reveal was preceded by a press conference, which taught me a bit more about the origins of the creation, as well as why it is such a long-time and noteworthy fair attraction each year. I learned that Illinois has over six hundred dairy farms that generate thousands of jobs. The Butter Cow has been a crowd favorite for nearly a hundred years, bringing the dairy industry to the forefront and allowing a public display of thanks to our farmers.
In a quest for even more knowledge, I looked to my friends, the Future Farmers of America (FFA), who brought a new attribute to learning, enthusiasm. I decided to hop onto the Ag Tour cart, which was being pulled by a tractor, and my journey began. The tour was extremely informational, traveling across the fairgrounds explaining several aspects of farming along the way. From dairy farming, to horse racing, to the traditional grain industry, agriculture was affirmed as the heart of the Illinois economy. The guides providing the narrative made the tour interesting, telling jokes and asking many questions to ensure we were entertained as we deepened our knowledge. I learned that successful farmers must be self-motivated and hard-working, giving me a newfound respect for them. I also discovered, after our tractor had a minor issue, that a golf cart can pull a tractor and a cart full of people!
The final stop of my pursuit to learn more about the industry was Conservation World, which was filled with educational kiosks focusing on topics across the spectrum from fishing to natural resources. Children were able to engage in fishing clinics and study about Illinois sport and native species, even participating in a hands-on experience which allowed them to touch the fish. In the Illinois Department of Natural Resources (IDNR) Education Tent, we were gifted with a pack of seeds to plant to start a pollinator garden, and learned more about the significance of natural pollinators. IDNR Forest Resources specialists were more than happy to assist in answering any questions I had about keeping our wildlife protected, and also gave me additional information on this topic.
The Illinois State Fair was an exceptional and enjoyable experience! I learned more than I ever could've anticipated in this fun and adventurous setting. I now have a profound level of appreciation for agriculture and the world around me thanks to the farmers of Illinois.
illinoisfarmradio.com broadcast live from Agriculture Day at the Illinois State Fair on Tuesday, August 14th. The broadcast featured interviews with many commodity and ag leaders across the state, to spotlight the importance of agriculture as the state's largest industry. Current issues facing agriculture were also discussed with the guests.
Here are pictures of a couple of the many guests we interviewed:
Local farm broadcaster Jared White (left) interviewing Aaron Carlson with the Illinois Corn Growers Association.
Jared (right) interviewing Jim Martin, a board member with the Illinois Soybean Association.
Here is what the 40-minute broadcast sounded like:
Pictured above from L to R: Rod Stoll, Farm Credit Illinois vice president of marketplace engagement; Jessica Barkley; Bradley Barkley, Macoupin County farmer-veteran; Karen Neff, Farm Credit Illinois board member and St. Clair County farmer; Rep. Rodney Davis of Illinois; Steve Thursby, Macoupin County farmer-veteran; Brandi Thursby
Farm Credit Illinois farmer-veteran members were present Wednesday as the AgriBank District Farm Credit Council (ADFCC) conferred its 2018 Friend of Farm Credit Award to U.S. Rep. Rodney Davis of Illinois, who has served on the House Agriculture Committee since coming to Congress in 2013 and currently serves as chairman of the Subcommittee on Biotechnology, Horticulture, and Research.
Davis received the award for his important work on behalf of rural communities, agriculture, and the Farm Credit System. ADFCC members are in Washington to meet with members of Congress about issues important to farmers and ranchers in AgriBank’s Midwestern District. The current deliberations on the Farm Bill are foremost on their agenda.
“The leadership Congressman Davis provides through his service on the House Agriculture Committee is critical to the well-being of our rural communities and our agricultural producers across the country,” said Karen Neff, a grain and livestock farmer from near Belleville, Ill.; a board member of Farm Credit Illinois; and ADFCC member. “We especially appreciate Congressman Davis’s efforts to ensure the crop insurance program remains an effective risk management tool to help producers deal with the uncertainties of weather and the markets. In addition to the counter-cyclical programs that are so important to producers, crop insurance is a vital component of ensuring an adequate safety net. Through his leadership on the House Committee on Agriculture, Congressman Davis ensured the crop insurance provisions remained strong in the House version of the Farm Bill.”
“It’s always an honor to be called a friend of farmers because they truly are some of the hardest working people I know,” Davis said. “What our farmers do is crucial to our economy and feeding the world. I’m proud to support their hard work in Congress by fighting to pass another Farm Bill that protects crop insurance and other policies critical to agriculture. I appreciate the Farm Credit Council and members, like Karen Neff, who continue to be a strong voice for farmers throughout Illinois.”
Farm Credit supports rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow. Farm Credit has been fulfilling its mission of helping rural America grow and thrive for more than a century by providing farmers with the capital they need to make their businesses successful and by financing vital infrastructure and communication services. For more information about Farm Credit, please visit www.farmcredit.com.
The AgriBank District Farm Credit Council represents Farm Credit farmers and ranchers in a 15-state area from Wyoming to Ohio and Minnesota to Arkansas and including Illinois. About half the nation’s cropland is located within the AgriBank District.