Spring Ag Update

Warmer temps have allowed many producers to start planting their 2021 crops. 

We are now well into 2021.  The winter was great with just enough snow coverage and mild temps to help the winter wheat crop make it to spring.  The warmer temps in March have allowed many producers to start planting their 2021 sugar beet crop.  The weather has cooled some now that we are in April and May, but soil conditions have been ideal for planting.  So far, the longer-range forecast is showing mild temps and normal to below normal precipitation. Cross our fingers that this will allow for a great spring planting season. 

Crop prices have continued to rise throughout the 1^st quarter.  Export sales continue to be very strong with a smaller than expected crop inventories and we have prices that we have not seen for more than 5 years.  South American weather continues to be a topic of discussion and is currently helping to support prices.  

After the first quarter, it appears that we are starting the 2021 growing season off on the right foot.  Crops are going in the ground and the wheat is coming along nicely.  Couple this with higher prices and the ag outlook looks promising.  Also, the farmers balance sheet continues to be strong due to these high prices and capital injections from the government.  Many producers have taken advantage of the PPP program and there was additional direct payment of $20 per acre in April.  Given these factors, the ag forecast for 2021 looks bright.