Working Capital Changes Projected for Grain Farms in 201606/22/2016
Corn and soybean prices have increased in the past several months (see farmdoc daily, June 13, 2016), leading to improved 2016 income prospects. Even given these price increases, working capital is still projected to be negative for rented farmland, leading to a continuing need to cut costs. When making these projections, yields are at their expected levels. Lower yields would result in higher working capital losses. More accurate income and working capital prospects will be known in August, once yield levels are more certain and attended price responses come into clearer focus.