MN Farming Game

MN’s Agricultural Regions Arrowhead Dairy Belt Corn Belt Red River Valley

Polk Stearns Martin Renville Fillmore MN Farming Game

MN Farms with Livestock

Estimated Farms and Size 1984

MN Farming Game

Major MN Crops 1973

MN Soybean Acreage

1973 Farming Headlines 1973 was a record-breaking year! Corn and soybeans both experience record harvests Minnesota’s wheat harvest was largest since 1899! Oat production up 15% Barley harvest up 18% Sunflower harvest up 9% The average MN farmer made $19,337 – a new record

MN Farming Game

Departure from Normal Precipitation 1978

Minnesota Crop Yields

Major MN Crops

MN Crop Production Changes

Corn Production 1978

Soybean Production 1978

1978 Farm Headlines Farm production costs increase because of rising oil prices (fuel, fertilizer and chemicals) Good growing conditions throughout MN! Record yields for corn! Above normal yields for soybeans & sunflowers Wheat, barley and oat crops down significantly Big news was rapid expansion of sunflowers into MN Many farmers took advantage of Payment-In- Kind (PIK) and reduced acreages Average MN farmer made $15,865!

MN Farming Game

1984 Farm Headlines Farm production costs increase because of spiking oil prices (Iran-Iraq War)

1984 Farm Headlines Excellent growing conditions throughout MN Soybean crop breaks 1982 production record Corn production 88% higher than 1983 Record-breaking year for small grains Wheat & barley yields beat old records by 7 bushels/acre Barley production exceeds previous record set in 1935 Farm production costs increase because of spiking oil prices (Iran-Iraq War)

MN Leading Ag Counties 1984

Corn Production 1984

Soybeans Production 1984

Wheat Production 1984

Oats Production 1984

1984 Farm Headlines Big farm news in 1984 was low prices 1979 Russian grain embargo had created a vast surplus of crops Prices received below those of 1972! Yet farm production costs up 300% from 1973 Farm bankruptcies common 592 MN farmers lost their farms in 1984

Farm Bankruptcies Minnesota, North and South Dakota

Midwest Farm Bankruptcies 1984 Ohio % North Dakota % South Dakota % Nebraska % Kansas % Missouri % Iowa 1, % Minnesota % Wisconsin % Illinois % Indiana % Michigan %

Farm Journal What crops were most profitable for farmers in your region during this time? What was the main reason so few farmers made money during this period?

MN Farming Game

1988 Farm Headlines

Crude Oil Prices

1988 Farm Headlines Farm production costs decline with lower oil prices Energy prices down 27% since 1979

Departure from Normal Precipitation 1988

1988 Farm Headlines MN faces worst drought since 1934! Temps reach 110 o at Brown’s Valley in late June Farm production costs decline with oil prices lower Energy prices down 27% since 1979

Corn Yields Minnesota and United States

Soybean Yields Minnesota and United States

Effects of 1988 MN Drought

1988 Farm Headlines Low yields for all crops Corn and soybeans lowest since 1976 Small grains yields lowest since 1966 Oat crop smallest since 1879! Farm production costs decline with oil prices lower Energy prices down 27% since 1979 MN faces worst drought since 1934! Temps reach 110 o at Brown’s Valley in late June

Corn Production 1988

Soybeans Production 1988

Wheat Production 1988

Barley Production 1988

MN Leading Ag Counties 1988

MN Farm Income

MN Farm Income/ Government Payments

Stability of MN Farm Income Over 4 Decades

1988 Farm Headlines Prices up only slightly Government payments (PIK) soar! Average MN farmer made $16,546 in 1988 Farm production costs decline with oil prices lower Energy prices down 27% since 1979 MN faces worst drought since 1934! Temps reach 110 o at Brown’s Valley in late June Low yields for all crops Corn and soybeans lowest since 1976 Small grains yields lowest since 1966 Oat crop smallest since 1879!

2007 FUTURES CONTRACT MN Farming Game

March 1, 2007 Futures Contract MN County Agricultural Cooperative (MNCAC) offers farmers the opportunity to sell their entire crop at the following prices: Corn: $3.16/bu Soybeans: $6.75/bu Sugar Beets: $47.50/ton Alfalfa Hay: $91.00/ton Barley: $3.06/bu Spring Wheat: $4.79/bu Oats: $2.34/bu

2008 FUTURES CONTRACT MN Farming Game

March 1, 2008 Futures Contract MN County Agricultural Cooperative (MNCAC) offers farmers the opportunity to sell their entire crop at the following prices: Corn: $4.56/bu Soybeans: $11.30/bu Sugar Beets: $47.20/ton Alfalfa Hay: $130.00/ton Barley: $3.81/bu Spring Wheat: $9.55/bu Oats: $3.18/bu

MN Farming Game

2008 Farm Headlines The drought of ended in August 2007 when heavy rains cause flooding in SE MN

Median Net MN Farm Income

Crop Production Costs

2008 Farm Headlines The drought of ended in August when heavy rains cause flooding in SE MN Farm production costs skyrocket with rapid increases in oil prices Crop prices rise steadily to new records only to have them collapse in July with oil prices and other commodities Farmers who sold on futures contracts made out like bandits

MN Farming Game Summary

MN Farming Cash Receipts 2005

MN Farm Game Conclusions Corn = #1 Soybeans = #2 Hogs makes most $

MN Leading Ag Counties st 2 nd 3 rd 4 th 5 th All Crops MartinRenvilleStearns Blue EarthKandiyohi Corn RenvilleMartin FaribaultRedwoodKandiyohi Soybeans Redwood Polk FaribaultNobles Martin Wheat Polk MarshallKittsonNormanClay Oats Otter TailToddRoseau Fillmore Goodhue Barley MarshallRoseau Polk PenningtonKittson Sugar Beets Polk NormanClayMarshallWilkin Hay Stearns Otter TailWinonaMorrisonWabasha

Hogs 2002 Number of Hogs

MN Farm Game Conclusions Corn, soybeans and hogs concentrated in Corn Belt counties Corn = #1 Soybeans = #2 Hogs makes most $

Sugar Beet Production 2002 Total Tons

MN Farm Game Conclusions Corn = #1 Soybeans = #2 Hogs makes most $ Corn, soybeans and hogs concentrated in Corn Belt counties Small grains (spring wheat, barley and sunflowers) and sugar beets concentrated in Red River Valley

Dairy Cattle 2002 Number of Dairy Cows

Beef Cattle 2002 Number of Beef Cattle

Chickens 2002 Number of Chickens

MN Farm Game Conclusions Corn = #1 Soybeans = #2 Hogs makes most $ Corn, soybeans and hogs concentrated in Corn Belt Small grains (spring wheat, barley and sunflowers) and sugar beets concentrated in Red River Valley Hay, oats, dairy and beef cattle, chickens and turkeys concentrated in Dairy Belt

MN Farm Game Conclusions Many factors out of the farmer’s control Profit depends on weather and market conditions Good weather does not guarantee success Prices highest when product in short supply Farm income increasingly unpredictable Markets increasingly influenced by world events

Average MN Farm Size

MN Farm Size 2002

MN Farm Game Conclusions Number of farms declining Remaining farms getting larger (1972 = 272 acres, 2007 = 347 acres)

Farm Population as a Percent of Total Population

MN Farm Game Conclusions Number of farms declining Average farm size increasing (1972 = 272 acres, 2007 = 347 acres) Fewer people involved in farming

MN County Population Change

MN Farm Game Conclusions Number of farms declining Average farm size increasing (1972 = 272 acres, 2007 = 347 acres) Fewer people involved in farming Population decline occurring in many farming counties

MN Farm Game Conclusions Number of farms declining Average farm size increasing (1972 = 272 acres, 2007 = 347 acres) Fewer people involved in farming Population decline occurring in many farming counties Many leaving farms for higher paying jobs in the Twin Cities

2007 MN Farmland Values Average Price Market Per Acre: Value: