Corn: The Original Economic Indicator
If the height of corn were our
only economic indicator, our financial future would look very bright this
year. As I drove through the 17th Senate District this past weekend, the
phrase “knee-high by the 4th of July” reverberated through my mind. I hopped
out of my truck and stood next to a plot on my property to measure and I can
report that the corn is already over my head; significantly past it’s 4th of
July milestone.
This colloquial Wisconsin saying is something we all think about this time of
year as we consider the status of agriculture in our communities. If it were
the only economic indicator for the agricultural economy, we would be very
optimistic. Unfortunately, there are other factors in play that we must
consider.
While the weather has been perfect so far this year and the height of corn
everywhere shows us that we’re more than on track for good production, we
have a long way to go before our crops are in the bin. We continue to be at
the mercy of temperatures, storms and rainfall as well as the speculation of
the commodities market.
The commodities market is volatile and can be impacted by many different
factors. One of the largest factors is supply that outweighs demand if crop
yields overwhelm the market. It’s not just local or even domestic demand that
impacts commodities, its demand from all over the world. When production is
strong in other parts of the globe, our markets are impacted. When demand
changes, for a wide variety of reasons, our markets are impacted. Unlike
manufacturing, a soft commodity, such as corn or soybeans are impossible to
manage on a supply-and-demand basis. Once the crops are in the field, they
become supply.
The market can also be impacted by the strength of the dollar, which moves
based on politics, trading and other seemingly unrelated global issues. The
most recent decision by the United Kingdom to exit the European Union will
impact commodities. We just don’t know how and to what extent at this time.
In addition, commodity prices often adjust based on long-range weather issues
such as droughts or significant storms that could damage crops.
Farming is risky business that is at the mercy of nature, consumers and
forces beyond an individual person’s control. A farmer I know was once asked
if he wanted to join a poker game and his reply was, “I don’t need to join
the game to gamble, I’m a farmer.”
The farmers in our communities are working hard to grow their crops and
animals this summer and are hopeful that prices will insure a good year,
financially, for their businesses. Whether we work in the fields and barns,
or not, the success of local agriculture means something to every one of us.
The successes and failures of the agricultural industry have a direct impact
on the rural, main street economy. When farm economies are strong, farmers
spend money. When farm economies struggle, farmers pull back and conserve.
These responses directly impact our local grocery stores, farm equipment
dealers, restaurants and small businesses.
As we drive through the 17th Senate District and measure the height of the
corn, soy beans and wheat, let us also remember all of the risk and faith
each of our farmers employ every single day of this growing season. Thanks
farmers!
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Useful
Information
2016-17 General School Aid Estimates
The Wisconsin Department of
Public Instruction (DPI) recently released its estimate of state general aid
for the 2016-2017 school year. The distribution of the $4.584 billion in aid
to local school districts is based primarily on three variables: enrollment,
cost per pupil, and property value. As each of these variables fluctuate
relative to the rest of Wisconsin, the state aid also fluctuates. The
following is a comparison of the 2016-17 state general aid compared to the
prior year for each of the school districts in the 17th Senate District:
2016-17
State General Aid Estimates - School Districts of the 17th Senate District
School District
|
2016-17
July 1
General Aid
|
2015-16
October 15
General Aid
|
Dollar Change
|
Percent Change
|
Argyle
|
$2,136,697
|
$2,220,076
|
-$83,379
|
-3.76%
|
Belmont Community
|
$2,204,943
|
$2,161,850
|
$43,093
|
1.99%
|
Benton
|
$2,045,178
|
$2,002,151
|
$43,027
|
2.15%
|
Black Hawk
|
$2,609,317
|
$2,315,655
|
$293,662
|
12.68%
|
Boscobel Area
|
$5,689,207
|
$5,681,315
|
$7,892
|
0.14%
|
Cassville
|
$914,775
|
$935,949
|
-$21,174
|
-2.26%
|
Cuba City
|
$4,223,903
|
$4,049,843
|
$174,060
|
4.30%
|
Darlington Community
|
$5,715,401
|
$5,364,568
|
$350,833
|
6.54%
|
Dodgeville
|
$6,867,820
|
$6,789,569
|
$78,251
|
1.15%
|
Fennimore Community
|
$5,876,550
|
$5,511,036
|
$365,514
|
6.63%
|
Highland
|
$2,401,145
|
$2,267,342
|
$133,803
|
5.90%
|
Hillsboro
|
$3,495,945
|
$3,254,151
|
$241,794
|
7.43%
|
Iowa-Grant
|
$5,666,026
|
$5,790,340
|
-$124,314
|
-2.15%
|
Ithaca
|
$2,508,494
|
$2,464,023
|
$44,471
|
1.80%
|
Lancaster Community
|
$6,398,608
|
$5,939,271
|
$459,337
|
7.73%
|
Mauston
|
$9,463,582
|
$9,012,415
|
$451,167
|
5.01%
|
Mineral Point Unified
|
$4,452,327
|
$4,474,294
|
-$21,967
|
-0.49%
|
Monroe
|
$16,427,504
|
$16,339,001
|
$88,503
|
0.54%
|
Necedah Area
|
$2,802,120
|
$2,669,779
|
$132,341
|
4.96%
|
New Lisbon
|
$2,967,781
|
$3,034,266
|
-$66,485
|
-2.19%
|
Pecatonica Area
|
$2,651,289
|
$2,535,397
|
$115,892
|
4.57%
|
Platteville
|
$7,790,054
|
$7,431,027
|
$359,027
|
4.83%
|
Potosi
|
$2,168,502
|
$2,213,117
|
-$44,615
|
-2.02%
|
Reedsburg
|
$14,741,349
|
$14,667,607
|
$73,742
|
0.50%
|
Richland
|
$8,870,325
|
$8,096,233
|
$774,092
|
9.56%
|
River Ridge
|
$3,542,481
|
$3,473,861
|
$68,620
|
1.98%
|
River Valley
|
$4,901,856
|
$5,560,313
|
-$658,457
|
-11.84%
|
Riverdale
|
$4,739,963
|
$4,678,034
|
$61,929
|
1.32%
|
Royall
|
$46,86,847
|
$4,520,922
|
$165,925
|
3.67%
|
Shullsburg
|
$2,730,429
|
$2,715,632
|
$14,797
|
0.54%
|
Southwestern Wisconsin
|
$3,344,969
|
$3,380,390
|
-$35,421
|
-1.05%
|
Weston
|
$18,84,094
|
$1,841,531
|
$42,563
|
2.31%
|
Wonewoc-Union Center
|
$1,664,791
|
$1,547,157
|
$117,634
|
7.60%
|
17th Senate District
Total
|
$152,013,331
|
$154,938,115
|
-$2,924,784
|
-1.89%
|
Statewide Total
|
$4,467,460,738
|
$4,347,490,680
|
$119,970,058
|
2.76%
|
*Source:
Wisconsin Department of
Public Instruction
|