Ep. 6 Review of 2023 STAX Payments and Implications for Price Risk Management in Cotton

00;00;07;03 – 00;00;28;03
Riley Smith
0001 good friend I went to high school with actually runs one or He has a couple stores that he sees after in Missouri, but yeah, it’s, they all get together and have their morning coffee and shoot the breeze and, you know, just catch it from the week and they do that every Friday morning.

00;00;28;06 – 00;00;28;23
Dr. Hunter Biram
There you go.

00;00;28;29 – 00;00;30;01
Riley Smith
But that’s cool.

00;00;30;05 – 00;00;31;17
Dr. Hunter Biram
That’s very special.

00;00;31;20 – 00;00;34;06
Riley Smith
Well, you ready to get started?

00;00;34;08 – 00;00;35;05
Riley Smith
I’m ready if you are.

00;00;35;06 – 00;00;47;04
Riley Smith
Well good morning. Good morning. Welcome to another episode of Morning Coffee and Ag Markets we got Dr. Biram with us today. Dr. Ryan, he’s in. He’s at Purdue University.

00;00;47;04 – 00;00;49;15
Dr. Hunter Biram
And not not Peru, but not Peru.

00;00;49;16 – 00;00;59;28
Riley Smith
I did the mistake of saying I was thinking Peru, and I said Purdue, the country. So it kind of sounded like I had no clue what I was talking about, but I was pretty close.

00;01;00;02 – 00;01;02;16
Dr. Hunter Biram
Hey, geography is hard. Yeah, we’re.

00;01;02;20 – 00;01;09;05
Riley Smith
We’re economists, so it’s, So. Yeah, we got Dr. Biram in here today. how are you.

00;01;09;08 – 00;01;09;15
Dr. Hunter Biram
Man

00;01;09;15 – 00;01;26;23
Dr. Hunter Biram
I’m just doing dandy. Doing dandy? you know, as we were just talking about, you know, got to get my nine month old. He’s trying to walk on me, and, my back hurts, and, but, we’re we’re doing good, man. I I’m I’m very blessed. I couldn’t be more fortunate.

00;01;26;26 – 00;01;29;25
Riley Smith
So you were out last week. I believe, weren’t you?

00;01;29;27 – 00;01;41;19
Dr. Hunter Biram
Last week? Yeah, I think I was, I believe last week was, Army, you know. Yeah. The southern, southern, southern risk management meeting was that last week.

00;01;41;19 – 00;01;44;10
Riley Smith
And when you went to Panama? Yeah, it was.

00;01;44;12 – 00;01;45;05
Dr. Hunter Biram
Pensacola.

00;01;45;06 – 00;01;53;13
Riley Smith
Or not. Panama. Pensacola. Yeah. Yeah. Y’all went back to Florida. And, because I think Ryan come in late that morning because his flight got delayed. That’s right.

00;01;53;13 – 00;02;17;03
Dr. Hunter Biram
It’s some flight issues. Yeah, that that was a really good meeting. We, we engaged with, with with our 1890 land grant institutions. so, you know, think of, you know, for our listeners thinking about University of Arkansas, Pine Bluff, thinking about North Carolina and, Alcorn State University, in, in Mississippi. And so we engaged with that group and, and a few of the 1862.

00;02;17;03 – 00;02;40;29
Dr. Hunter Biram
So, so your land grants like U of A and Oklahoma State and Tennessee and Mississippi State, you know, think about those. And so we engaged with a few of those institutions as well. And talked about issues, surrounding risk management. And so with crop insurance, furniture producers, we talked about whole farm revenue and micro farm. And, and we also talked about some legal issues, some heirs property, things like that.

00;02;40;29 – 00;02;47;02
Dr. Hunter Biram
So that was a very well attended and well engaged, event.

00;02;47;04 – 00;03;00;03
Riley Smith
Oh, good. We’ll have to have we’ll have to have Doctor Rainey in here at some point talking about his management. That’s his that’s his cup of tea. but what we’re going to talk about today, so it has to do with risk management.

00;03;00;09 – 00;03;02;12
Dr. Hunter Biram
Absolutely. As most things that we’re talking about do.

00;03;02;12 – 00;03;25;27
Riley Smith
Here, it does. And that’s what we’re all here for. today we’re going to be talking about review of 2023 STAX payments and implications. for price risk management in cotton. so so you just kind of give us a up to date what STAX’s is and what it does, and then we’ll, we’ll go into unpacking this.

00;03;26;04 – 00;03;50;25
Dr. Hunter Biram
Sure. So what what actually, just what brought this to my attention. And Scott Stiles is attention is the fact that the beginning of July, the, STAXs payments for 20, 23 were disbursed. And so whenever I say payment, I really mean and Dimity Castex is a crop insurance, product. And so indemnities were disbursed at the beginning of July of this year, 2024, for last year’s program, crops.

00;03;50;25 – 00;04;07;06
Dr. Hunter Biram
So that’ll be 2023. So we’re, in a way, we’re a year behind. And that’s typically how these programs work. You know, losses get determinate in at the end of the season, and you don’t get the indemnities until the following year. And so we saw those payments go out. And I believe we only had payments from counties in southwest Arkansas.

00;04;07;09 – 00;04;26;24
Dr. Hunter Biram
none and none in East Arkansas. So think of your little river. Think of your Lafayette and Miller counties. I believe that they all triggered a tax payment this year, but no other county in Arkansas did to to, to shed some light here. STAXs stands for STAXed income protection. And now, as I mentioned, Stax is a federal crop insurance program.

00;04;26;26 – 00;04;57;21
Dr. Hunter Biram
And, so it’s administered by RMI and it does have a premium subsidy tacked to it. So producers won’t pay the actuarially fair premium, they’ll pay that subsidized premium for it. And, importantly, it’s only, the only crop eligible for Stax is cotton. And so just a brief history as to why, Stax or Cotton gets its own crop insurance program is because in the 2014 farm bill, seed cotton was removed as an eligible crop for commodity program payments such as Arc and PLC.

00;04;57;24 – 00;05;20;07
Dr. Hunter Biram
So the cotton had no had no federal risk protection. More or less is the way to think about that. And, you know, without going into too great detail, apparently the, seed cotton the way that it was going to be protected under title one in the farm bill violated, WTO trade rules. And so, so anyway, they took it out and, so seed count was not a covered commodity.

00;05;20;07 – 00;05;45;16
Dr. Hunter Biram
And so in response, the Stax program was created, a subsidized, crop insurance program was created. So how does it work? So Stax importantly provides area revenue protection. It does not provide farm level protection. And so, you know, by by area coverage, I mean, think about the county. So this is a county level triggers, you know, for those who know what Ark is agriculture risk coverage.

00;05;45;18 – 00;06;08;00
Dr. Hunter Biram
You know, ARC has a county revenue guarantee. Stax also has a county level revenue guarantee. So, you know, payments are gonna be based on what happens on the farm. In fact, you know, if if you as a producer, if you’re listening, if you’re cotton yields tend to be higher than the county average, Stax probably won’t provide any protection for you because you consistently perform better than the county.

00;06;08;03 – 00;06;21;05
Dr. Hunter Biram
so it’s really important when you think about buying this product. you know, how how closely are your yields aligned with the county? Or put differently, how closely are your farm yields correlated with that of the county?

00;06;21;07 – 00;06;54;04
Riley Smith
Well, and on that the so it even though that they may have a higher yield in the county though it’s still beneficial to them to get Stax coverage on their crop because if something were to say happen like, and this is off the top of my head for but say a boll weevil infection takes over an area, say a whole county, then they get payments based because several farms was affected by that, not just one particular operation.

00;06;54;04 – 00;06;54;26
Riley Smith
Correct?

00;06;54;29 – 00;07;10;07
Dr. Hunter Biram
That’s true. And, you know, that’s a really good point. I’m glad that you brought that up. You know. Yeah, I guess one way you can think about this is you know, because it’s a county level product, even if you do perform better than the county. But everybody else had a tough year. You know, you’re still necessarily you still won’t get a tax payment.

00;07;10;07 – 00;07;28;00
Dr. Hunter Biram
And, you know, it’s interesting that you bring that up because I was talking with a farmer a couple of years ago, whenever we had several tax payments go out due to pollination, pollination issues and drops in crop price. we had a lot of we had relatively more payments in 2020. for, for the 2022 year.

00;07;28;00 – 00;07;40;06
Dr. Hunter Biram
And I was talking with about he’s like, man, he said I get good yields, I get really good yields. He said, but I still got a stax payment. He’s like, can you explain that to me? And I was like, well, it’s because everyone else in the county they might not have has good of a year as you did.

00;07;40;06 – 00;07;52;05
Dr. Hunter Biram
And so the yields fell across the county relative to what they should have been. And so, yeah, no, that’s a really good point. So in that case, the farmers actually had higher yields. They still ended up getting some, some protection.

00;07;52;05 – 00;08;04;29
Riley Smith
And, I miss may be misunderstanding this, but did they get that? So is this like a particular, like an, insurance policy that you have to get for your crop? Or does the county is it just covered automatically by STAXed?

00;08;05;01 – 00;08;10;04
Dr. Hunter Biram
Good question. So you do have to opt into it okay. You do have to pay a premium for it okay.

00;08;10;07 – 00;08;23;23
Riley Smith
So I’m just making sure that they, that they had to spend a certain amount like a producer had to spend, spend a certain amount to be able to be eligible for a stax payment if the county was to or area was to receive a STAX payment.

00;08;23;25 – 00;08;43;18
Dr. Hunter Biram
That’s right. So the farmer to get the protection they have to buy the coverage. Now that doesn’t necessarily, I’m trying to think of the best way to, to talk about this with. So how so how is the yield determined I guess is the question that I’m trying to think of how to answer. So it’s all based on arm yields.

00;08;43;26 – 00;09;01;07
Dr. Hunter Biram
So don’t think about nice yields. You know don’t don’t think about you know with Nass it could be that a nesse numerator is going to go out and collect data from a farmer. And they’re going to say, what do you think your cotton yield is. They’re going to say, I’m looking at it here. It’s about I think it’s about a 1,200 pound an acre, yield.

00;09;01;09 – 00;09;15;22
Dr. Hunter Biram
No, it’s going to be based on the Army realized yield. So it’s going to be based on it’s going to be a more accurate yield measure. but, it will be among those who, have been insured in the past and who are currently insured in the present.

00;09;15;22 – 00;09;25;01
Riley Smith
So, my, I may not have heard you, you may have already said it, but so is that on produce predicted yield or actual yield.

00;09;25;04 – 00;09;33;17
Dr. Hunter Biram
So the expected yield. Good question. The expected yield is based on you can think of it as a as a as a prediction in a way.

00;09;33;17 – 00;09;40;28
Riley Smith
So so is it is the bridge is the oil okay. So like they don’t receive that payment though until after actual yield.

00;09;40;28 – 00;09;49;08
Dr. Hunter Biram
That’s right. That’s what I’m trying to. There is an average yield that the expected you know the quote the I guess in a way the predicted type of yield is going to be. So they.

00;09;49;08 – 00;09;57;05
Riley Smith
Get asked. So like, who whoever is who covers tax who’s the insurer I guess.

00;09;57;08 – 00;09;59;22
Dr. Hunter Biram
Well whoever’s in a GRP with Army okay.

00;09;59;22 – 00;10;19;00
Riley Smith
All right. So you you give your expected yield, you know, all your producers in that county. and so that sets the baseline. And so then what they’re saying is, is that after after harvest, if it’s below said expected yield, then they send out the payments.

00;10;19;06 – 00;10;26;09
Dr. Hunter Biram
Depending on the coverage level. But yes, in short it has to be below whatever the coverage level is times the yield times the price.

00;10;26;11 – 00;10;26;26
Riley Smith
Okay.

00;10;26;29 – 00;10;27;09
Dr. Hunter Biram
Yeah.

00;10;27;11 – 00;10;30;26
Riley Smith
Okay. So the I just wanted to you got my wheels turning now.

00;10;30;26 – 00;10;34;15
Dr. Hunter Biram
So no, no these are great questions okay.

00;10;34;17 – 00;10;39;17
Riley Smith
so where is most of our insured acreage in the US for STAXs?

00;10;39;17 – 00;10;53;21
Dr. Hunter Biram
Well, I bet I can give you three guesses. And, you could probably figure it out, but, our our neighbors to the west and to the south. Texas, take a I think over half the list is pasture. Over half of the insured acres.

00;10;53;25 – 00;11;08;05
Riley Smith
I think I read the newsletter, too. And you, and I believe it did say that Texas, southwest Oklahoma, Kansas and Texas covered over half of the Purdue or the, planted acres in the US.

00;11;08;05 – 00;11;09;16
Dr. Hunter Biram
Yeah, all the insured acres.

00;11;09;17 – 00;11;14;08
Riley Smith
Okay. Yep. Well, okay.

00;11;14;10 – 00;11;18;25
Dr. Hunter Biram
which could be different than planted because not everybody that plants is going to insure.

00;11;18;27 – 00;11;28;20
Riley Smith
Yeah. And I get and I think I saw somewhere that like 48% I believe of Planet Acres is insured by stags is what I saw on the newsletter.

00;11;28;26 – 00;11;33;14
Dr. Hunter Biram
That that sounds about right to me. I can’t remember the exact percentage. but yeah I think you’re right.

00;11;33;19 – 00;11;49;26
Riley Smith
But so what is the kind of food kind of changing direction? So is this useful? Is this useful protection? And why not just use the farm bill programs like PLC or Arc?

00;11;49;29 – 00;12;09;14
Dr. Hunter Biram
Yeah. to yeah. To the first question, we can already hit on this a little bit talking about that basis risk. What I mean by basis risk is farm level yields versus county yields. So like how you as a farmer, how your yields perform relative to the county. There’s a there’s a risk there. There’s a risk. And the difference between what you have, what the county has.

00;12;09;14 – 00;12;24;03
Dr. Hunter Biram
Because again, this is not a farm level, private county level product. And so it could be useful. I mean we just talked about an example that even if you are performing a board above the county, you could still possibly get an indemnity based on how everyone else in the county performs. That’s just on yield. What about on price?

00;12;24;05 – 00;12;53;11
Dr. Hunter Biram
On price? It could be it could be useful, in that maybe the price, the projected price is relatively high at planting and then at harvest, that harvest price falls so much that maybe even on price alone, you could get protection. Now, there there’s a possibility of that. But what we see and when we talk about the newsletters that actually on the average over the past ten years, STAXs only has, on the average fallen by about 1%, the prices.

00;12;53;11 – 00;13;13;07
Dr. Hunter Biram
So the harvest price relative to the projected price is only falling about 1%, over that ten year span. Now, sometimes we saw big increases and sometimes we saw, you know, some decreases. But in terms of just price alone, it doesn’t seem to prove to be as useful as it could be. I mean, there’s always a chance that the market could crash between planting and harvest.

00;13;13;09 – 00;13;30;08
Dr. Hunter Biram
and those two prices are vastly different. But what we see historically is that that doesn’t tend to be the case. Now, this is a good segue into what about PLC and what about Arc? Well, so if you have STAXs and now under the 18 farm bill, cotton is a covered commodity for Arc and PLC. So we can talk about this.

00;13;30;08 – 00;14;01;20
Dr. Hunter Biram
And then context of the 18 farm bill. Now what’s different though is STAXs provides protection on counter yield measure Rama and a price provided by the futures market by the Ice. The intercontinental Exchange, now an PLC that is based on a marketing year average price for cotton, lint, upland cotton, lint and seed cotton. So it’s whatever that weighted average marketing your average price is, which is a cash price different than the futures market in the future market.

00;14;01;20 – 00;14;18;22
Dr. Hunter Biram
But it still is a cash price. So that’s how that PLC payment is determined is based on of course, the reference price. But the reference price is based on the market year, average cash price based on the Lynn and seed cotton prices. So it’s a bit more of a localized price measure, because you get that cash price.

00;14;18;22 – 00;14;40;10
Dr. Hunter Biram
Now, the, now on the, on the ark side of things, we’re in a similar boat price wise. But on the yield side, you’re looking at an Olympic average county yield. So that’s going to be, pulled from that’s like a song we pulled from. Aam so so it’s gonna be a different yield measure. So you could do PLC or Ark or Stax.

00;14;40;10 – 00;14;59;06
Dr. Hunter Biram
There’s something else that we should talk about is you can’t go Stax and PLC or Stax and Ark. You can only go one of those three. but I think this is an interesting avenue of research that, you know, I’d like to look at is, you know, well, we know that PLC and Ark provide different coverages for price and for yield than Stax.

00;14;59;06 – 00;15;24;02
Dr. Hunter Biram
So, you know why why separate them? so I think that’s interesting. I think something else that’s interesting is this talk of Esco. So the supplemental coverage option and ECL, the enhanced coverage option and how if the subsidy rates are increased for ex-CEO, there are some that say, well, what if you what if you bring together Esco, eco and PLC with your underlying revenue protection?

00;15;24;02 – 00;15;38;08
Dr. Hunter Biram
So I mean, there’s there’s a lot of there’s a lot of avenues that we can go down for protection. but, you know, I think the main takeaway here is you can’t use STAXs and PLC or STAXs and ARC. you have to use one of those three.

00;15;38;10 – 00;15;50;11
Riley Smith
Right. so you is in a, in a brief way you can, you know, is there a can you explain the, the, difference? Yeah. Between all three. Yeah.

00;15;50;11 – 00;16;02;26
Dr. Hunter Biram
I think it has to deal with the way prices are measured and the way yields are measured, because the prices for STAXs are measured for a futures price, whereas PLC in arcs on cash market. and then on the yield sum, you’re looking at yields versus year.

00;16;02;26 – 00;16;26;13
Riley Smith
So you know yields in a consulting position. Who would what would you recommend to look at first I know we’re talking about STAXs. And that’s kind of the highlight today. But I know you’re also heavily involved in PLC in ARC. Yeah. you know, in a situation kind of give us a situation for STAXs where it’d probably be more beneficial versus PLC or Arc.

00;16;26;16 – 00;16;51;05
Dr. Hunter Biram
Yeah. I think one, one, situation where STAXs could be more beneficial than PLC is if we’re at planting and the market is higher than what we think it should be. And so if we think if we know that the market is higher than what it is, then and we think, hey, you know, there’s some big crops coming online across across, you know, Pakistan, across India, across, across other areas.

00;16;51;05 – 00;17;07;18
Dr. Hunter Biram
I think even Brazil could be thrown in. That makes now, you know, maybe we think they’re going to have a bigger crop than what is projecting. And, maybe the market’s not thinking about that. So if we have a good hunch the price is going to fall a great deal, I think that’s a very clear, transparent way of looking at price decline and saying, you know what?

00;17;07;20 – 00;17;28;01
Dr. Hunter Biram
I think that you’re gonna get some good price, some good price protection. Now, on the yield side, it’s a little bit it’s a little bit more, more tricky. I think the question becomes do you trust aam or Nash yields more. Or do you think that Nash more accurately more more closely resembles what you produce on the farm.

00;17;28;03 – 00;17;41;04
Dr. Hunter Biram
Or do you think the yield is a better representation of what you produce on your farm? Not that they’re right or wrong necessarily. It’s just, you know, what do you think represent your yield risk better? So I think I need to give that good old economist answer. I think it really depends. I think it really depends on the year.

00;17;41;04 – 00;17;56;02
Dr. Hunter Biram
I remember, a couple of years ago whenever I first started my job, you know, that was a big question of, well, if I could go plc on, you know, cotton, then I got, you know, I can’t go STAXs. And, so I would just have a conversation with farmers and say, hey, like, what is your yield situation look like?

00;17;56;03 – 00;18;11;18
Dr. Hunter Biram
You know, how how do, how do your yields typically STAX up against what’s happening at the county? And we would just kind of break it down and we would talk through whether STAXs or PLC would be a better would be a better bet. Most of the time. Those the conversations I have, we really don’t talk much about our kids normally as snacks versus PLC typing.

00;18;11;22 – 00;18;12;08
Dr. Hunter Biram
Okay.

00;18;12;11 – 00;18;39;14
Riley Smith
Well, I just know what triggered that was, you know, as I’m not a producer, but from a producer standpoint, if cotton is seen in the 2018 farm bill, you know, as a crop now or a covered crop, you know what I’m trying to say? you know, now, now it becomes, well, there’s STAX and there’s plc. You know, even though ARC is involved but PLC and STAX.

00;18;39;14 – 00;18;49;10
Riley Smith
So I just didn’t know if there might be a difference. You know, a dramatic difference in having STAXs versus having PLC because you can only have one.

00;18;49;10 – 00;19;08;04
Dr. Hunter Biram
Yeah I think it largely depends on the year. I you know, I’d say that, but I mean, I’m just being totally honest. Like it just depends on the crop year. and depends on what’s happening on the farm. And, I think it’s just worth it to have conversation with your crop insurance agent or, you know, with your extension specialist, to, you know, break down what’s going to be best term for me to give a wide spread.

00;19;08;04 – 00;19;24;11
Riley Smith
Well, let’s just say that that stuff is in the fine print, so we can’t I mean, we don’t have the time to sit here and unpack both of them and and give a debrief on what? What if you’re listening to this and you’re a cotton producer, you know, we can’t can’t answer that because we don’t know what you’re doing.

00;19;24;11 – 00;19;31;23
Riley Smith
So, well, is there anything else you want to add as far as talking about STAXs, I think we’ve.

00;19;31;23 – 00;19;47;25
Dr. Hunter Biram
STAXed it up pretty well. We’ve talked a lot, a lot about, you know, again, the history of it and why it even came to be. And because, you see, cotton was not a covered commodity in the 14 farm bill. And and isn’t an 18 farm bill. And, so now as Riley said, I mean, you make a good point.

00;19;47;26 – 00;20;12;05
Dr. Hunter Biram
It’s a it’s a decision. Now it is is this a decision? Is it Stax or PLC? because you can’t do both. But, you know, maybe going forward with the new and then with the next farm bill, maybe it’s worth it to think about. Could there be provisions to provide where you could get Stax and PLC, or is there should we start talking about using SEO and echo with with PLC and, and bringing those products together?

00;20;12;05 – 00;20;21;12
Dr. Hunter Biram
So I think there’s a lot of avenues for future research here. And, lots of avenues for risk management strategies, for, for cotton farmers.

00;20;21;12 – 00;20;37;04
Riley Smith
That would be interesting if they could combine the two and become, you know, come up with another acronym, come up with another acronym that would cover, you know, what Stax does, AMP plc does. So that way you can get best of both worlds.

00;20;37;06 – 00;20;50;21
Dr. Hunter Biram
Yeah. Because I mean, to me, whenever I, you know, you you all hear me talking about this, but they measure two different things fundamentally. and so to me, if they measure two different things for a million that we’re, we’re capturing two different sources of or multiple sources of risk.

00;20;50;21 – 00;20;51;09
Riley Smith
Right.

00;20;51;11 – 00;21;10;17
Dr. Hunter Biram
So, I don’t know, I’d like to put pen to paper that maybe for the next, maybe a future newsletter. Yeah. And I mean, as we’ve talked about on this podcast, in the, in the newsletter, but, I mean, producers face risk that’s out of their control. The markets are out of their control, whatever price it is that they are faced with, that’s what they got to take.

00;21;10;17 – 00;21;32;14
Dr. Hunter Biram
Their price takers. and the, the yield is out of their control. I mean, they’re to a degree, I think farmers have more control over production than they do over price. But still, I mean, as you said, what if there is widespread drought? You know, what if we have widespread excess rainfall? you know, what if there is, a pest outbreak and what if there’s pollination issues?

00;21;32;14 – 00;21;38;09
Dr. Hunter Biram
I just have an Arkansas couple of years ago. I mean, those are the things that farmers don’t have control over that’s totally out of their control.

00;21;38;09 – 00;22;11;03
Riley Smith
And they’re they’re gambling every time they take their checkbook out of the back pocket because, I mean, they’re they don’t know what. They just know what to do and how to prevent as much as they can. That’s in their control, that they can’t control everything. Just like I mean anything else. But, that would be interesting to see if there that they could, you know, potentially be able to have STAXs and PLC or combine the two and, you know, have a new, policy, you know, created that would include both.

00;22;11;05 – 00;22;16;05
Riley Smith
So, I think that’s everything for it.

00;22;16;05 – 00;22;17;22
Dr. Hunter Biram
Yeah. No that’s great. This one. Great.

00;22;17;23 – 00;22;38;03
Riley Smith
We want to thank you, for coming in and talking STAXs with us today. And, cotton coverage. We, hope any producers out there, if you are farming cotton and you don’t have that coverage that you go check it out. do some do your own research, see what STAXs has to offer for you or PLC.

00;22;38;03 – 00;22;57;14
Riley Smith
I know this is all about STAXs, but we’re all about what? The coverage and, the risk management portion of, commodity farming in the state of Arkansas. We’re, go do your own research. Go talk to your adjuster, see what you can get done. because in the long run, it may help you in the short run, it may help you, but, we’re we’re we’re here for y’all.

00;22;57;16 – 00;23;26;05
Riley Smith
So, following this will be my market report, so y’all stay tuned. Thank you. Hey, guys. So here’s your market report for the week. So September 24 corn contracts at current at $3.81 per bushel. month ago price is at $3.91 per bushel. And the difference on that’s $0.10. -$0.10 year agos price is at $4.64 per bushel, down $0.83 from current price.

00;23;26;08 – 00;23;58;12
Riley Smith
September 24 rice contract $14.98 per cwt month agos price at $14.70 per cwt thats up $0.28. Year agos price is at $15.59 per cwt, down $0.61 from current price. November 24 soybeans contracts at $9.69 per bushel. Month agos price is at $10.40 per bushel, down $0.71. year agos price is at $13.05 per bushel.

00;23;58;14 – 00;24;31;22
Riley Smith
Down $3.36. July 25 wheat contract $5.91 per bushel month agos price is at $5.99 per bushel, down $0.08. year agos price is at $6.72 per bushel, down $0.81 for grain price. December 24 cotton contract, 66. excuse me, $0.67 per pound. month agos price at $0.72 per pound, down $0.05. year agos.

00;24;31;22 – 00;25;02;13
Riley Smith
Price $0.85 per pound, down $0.18. your weekly U.S average for peanuts is at $528 per ton a month agos price at $538 per ton, down $0.10 or $10. Excuse me per ton. And, year agos price is at $562 per ton, down $34. So now for your fertilizer prices this week, Urea $498.33 per ton. UAN is at $462.33 per ton.

00;25;02;15 – 00;25;38;00
Riley Smith
DAP at $792.67 per ton. Potash is at $483.33 per ton, Ag Lime at $60 per ton. And your diesel prices this week is at $2.58 per gallon. the Mississippi River level this week at Memphis current level is at -.5 feet, and year ago was at 5.13ft. So other than that, thank you all again for listening for this week to Morning Coffee and AG markets episode number six.

00;25;38;02 – 00;25;43;10
Riley Smith
We, hope you enjoy the rest of your week, enjoyed your morning coffee, and we’ll catch you on the flip flop. Bye bye. Now.