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Talks between farmers and landlords on cash rent will likely be more difficult this winter, says a University of Minnesota extension expert.
“I would say, yeah, it’s tougher entering into a more depressed market,” Nathan Hulinsky, agricultural business management extension educator, told farm publication AgWeek. That’s particularly the case after 2022 and 2023 saw high income that left farmers willing to pay more for land rent, he said. “And now, when corn and soybean prices come down, they’re not willing to pay as much.”
Hulinsky told the publication he expects farmers in general to request flat or reduced rental rates for 2026 – not out of greed, but due to depressed crop markets. On the plus side, he thinks most landowners and farmers will be able to come to an understanding on a fair price if the numbers are laid out for both sides.
Big bet on Southeast Asia dairy consumers
Farm Fresh Bhd., Malaysia’s largest dairy producer, is ramping up its expansion across Southeast Asia in a bid for a bigger chunk of the region’s half a billion consumers, Bloomberg reported.
The company has established a presence in the Philippines. It’s planning to open a plant in Cambodia after border tensions between the country and Thailand disrupted milk supplies. And it’s now looking at opportunities in Indonesia, the report said.
Bloomberg said Farm Fresh has applied to establish a 230-hectare (568 acres) farm in Bandung on Indonesia’s island of Java and is looking for potential partnerships to establish local distribution. The report said the push is central to CEO Loi Tuan Ee’s goal of sustaining 10% to 20% annual growth even with revenue expected to exceed 1 billion ringgit ($240 million) in the current financial year.
Notable closes
It was a brutal day in the cattle market after Tyson Foods on Friday announced it would close its Lexington, Nebraska, beef plant and reduce an Amarillo, Texas, facility to a single shift. Industry watchers had long expected to see cuts to capacity given negative beef margins for meat packers amid historically tight cattle supplies. Still, the news sent live-cattle futures limit down right out of the gate in Monday trading.
February live cattle fell the daily trading limit of $7.25 to $207.525 and hit a nearly five-month low. January feeder cattle also dropped the daily trading limit of $9.25 to $304.975 and hit a nearly five-month low. Daily trading limits in both markets will be expanded on Tuesday.