Wednesday, we are supposed to get 1.5" of rain and a little more tomorrow; however, it looks like the heaviest of the rain went to our south. We currently have adequate moisture going into planting. The temperature forecasts though are kind of concerning. Next week, the forecasted high temperatures are 70 degrees. This has us slightly nervous because it is a little early for those high temperatures.
We have been to plenty of agriculture meetings this past winter, and the sentiment throughout the industry seems to be cautious optimism. Right now, commodity prices are pretty low going into a new season, and this is the first time ever that we`have gone into a new season unhedged to this extreme. We are hopeful commodity prices will rebound and provide us an opportunity to sell 2016 crop at profitable levels.
Throughout the winter, we had discussions with retailers, landowners, and farm managers regarding the current financial state of the agriculture industry and our farm business. All talks were successful, and our policy of open and honest communication will hopefully prepare all of us for budget cuts.
One of the most successful investments we made throughout the winter was in drainage tile projects. Partnering with landowners, we have found this to be the most beneficial way to increase profitability for both the landowner and us. Depending on fund availability we have more planned for this year.
We are looking forward to planting our 2016 crop and are hopeful for another profitable year.
