Farm Sector Income & Finances 2015 Outlook. By Ryan Kuhns and Kevin Patrick Economics Research Service, USDA

Size: px
Start display at page:

Download "Farm Sector Income & Finances 2015 Outlook. By Ryan Kuhns and Kevin Patrick Economics Research Service, USDA"

Transcription

1 Farm Sector Income & Finances 2015 Outlook By Ryan Kuhns and Kevin Patrick Economics Research Service, USDA

2 Net cash and net farm income forecast below 10-year moving average for first time since 2009 $1,000 (2009 dollars) 140,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000, F 2015F Annual net cash income 10-year movng average net cash income Annual net farm income 10 year moving average net farm income F=forecast The GDP chain-type price index used to convert the current-dollar statistics to real (inflation adjusted) amounts (2009=100) Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

3 Crop and livestock receipt forecasts driving major changes to net farm income from 2014F to 2015F $ $15.6 -$8.2 $0.7 $1.6 $73.6 -$10.1 -$2.5 -$ F-2015F change ($ billions) -$34.4 billion Net farm income 2014F Crop receipts Change in crop inventory Livestock receipts Change in livestock inventory Government Payments Production Expenses All other changes Net farm income 2015F Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

4 Crop receipts are expected to fall for all major crops in 2015 $ billion F 2015F Corn Oil crops Fruits and tree nuts Vegetables and melons Wheat Cotton F=Forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

5 Total livestock and products receipts are forecast down 5 percent in 2015 $ billion F 2015F Cattle and calves Dairy Broilers Hogs F=Forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

6 30 $ billion Government payments to farm producers, F All other payments 3/ Function of crop price payments 2/ Conservation payments Fixed payments 1/ F 2015F 1/ Includes direct payments (through 2013), cotton transition payments ( ).Payment rates are fixed by legislation. 2/ Includes counter-cyclical payments, average crop revenue election (ACRE) payments, loan deficiency payments, marketing loan gains, certificate exchange gains (ended after making payments for 2009 crop year), Price Loss Coverage(PLC), and Agricultural Risk Coverage (ARC ). 3/ All other payments include disaster relief payments, tobacco transition payments, and dairy program payments. F=Forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics using FSA, NRCS and CCC input data. Data as of February 10, 2015.

7 Real cash expenses expected to decline for the first time since 2009 Billions (2009 dollars) % average increase per year ( F) % average increase per year ( ) F F=Forecast The GDP chain-type price index is used to convert current-dollar amounts to real (inflation adjusted) amounts (2009 = 100). Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

8 Despite lower fuel costs, production expenses forecast to rise 2.5 billion -2.7% $ billion % 10.6% 4.1% % -26.7% 0.8% -3.2% 6.2% 5.0% Fuels Pesticides Rent Interest Repairs Seed Fertilizer Livestock Labor Feed F F=Forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, F

9 Farm Businesses Account for over 90% of farm production and 930,000 Percent farms ,160, , Farms Production Assets Debt Operators report they are retired or have a major occupation other than farming. Gross cash farm income less than $350,000 and operators report farming as their major occupation. Farm Businesses Residence Intermediate Commercial Gross cash farm income greater than $350,000 and farms organized as nonfamily corporations or cooperatives. Source: 2013 Agricultural Resource Management Survey (ARMS)

10 Average net cash income forecast lower for farm businesses 1 specializing in crop production $1, F 2015F Cotton and rice Specialty crops Corn Mixed grain Soybeans and Wheat peanuts 1 Farm level forecasts derived from partial budget modeling on the 2013 Agricultural Resource Management Survey (ARMS) using the sector forecasts. The model is static and therefore does not account for changes in crop rotation, weather, and other local production impacts that occurred after the base year. F = forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

11 $1, Average net cash income also forecast to fall for farm businesses 1 specializing in livestock, dairy and poultry F 2015F Hogs Dairy Poultry Beef cattle 1 Farm level forecasts derived from partial budget modeling on the 2013 Agricultural Resource Management Survey (ARMS) using the sector forecasts. The model is static and therefore does not account for changes in crop rotation, weather, and other local production impacts that occurred after the base year. F = forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

12

13

14 Farm Balance Sheet Outlook

15 $ trillion 3 First expected decline in real 1 asset and equity values since Debt Equity F F=Forecast 1 The GDP chain-type price index is used to convert current-dollar amounts to real (inflation adjusted) amounts (2009 = 100). Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

16 Real estate debt growth forecast to slow in 2015 Nonreal estate debt forecast to grow faster in 2015

17 Farm real estate accounts for the majority of the sector s assets and equity Nonreal estate debt $141.0 Assets $ billions Real estate debt $186.4 Real estate debt Nonreal estate debt Equity Equity $2, % Real estate equity Nonreal estate equity 84% Equity Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

18 An expected small decline in farm real estate values leads to slower asset and equity growth Percent change from previous year F percent decline in farm real estate assets Real estate assets Equity Assets F = forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

19 Sector leverage remains historically low despite debt being forecast to grow faster than assets in 2015 Percent F Debt to asset ratio Debt to equity ratio F = forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

20 Share of highly leveraged farm businesses forecast to increase in 2015F Share of farm businesses Crops Livestock D/A ( ) D/A (0.71 +) D/A ( ) D/A (0.71 +) F = forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

21 3 The rate of return on farm assets expected to fall in Return on assets from income Decomposing the rate of return on farm assets (ROA) ROA = Asset Turnover Ratio Profit Margin Ratio Value of production that assets generate Profit margin on value of production F = forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, Sector financial ratio documentation:

22 3 The rate of return on farm assets expected to fall Return on assets from income Profit margin Asset turnover F = forecast Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 10, 2015.

23 Farm Real Estate Outlook

24

25 Increases in December 31 st farm real estate values were greatest in corn producing regions from 2012 to 2013 Charts and Maps of U.S. Farm Balance Sheet Data:

26

27

28

29

30

31 Additional Analysis and Data Farm Sector Income & Finances Analysis coinciding with each of the ERS farm income group data release. Farm Sector Income and Wealth Statistics Data product updated 3 times per year. Next update: August 25 th, Includes historical state and national estimates, and national forecasts. Charts and Maps of U.S. Farm Balance Sheet Data Lets users visualize farm balance sheet data series and generate maps of farm real estate values for different years.

32 Amber Waves: Presents current ERS economic and policy research on agriculture, food, rural America, and the environment for policymakers, academics and the public. Via web connection or mobile app

33 Chart of Note: Daily chart and short analysis on current ERS economic and policy research on agriculture, food, rural America, and the environment for policymakers, academics and the public. Farm income Chart of Note from March 2 nd, 2015.

34 QUESTIONS? Ryan Kuhns Mitch Morehart Kevin Patrick Ted Covey

Outlook for the 2013 U.S. Farm Economy

Outlook for the 2013 U.S. Farm Economy Outlook for the 213 U.S. Farm Economy Kevin Patrick Farm and Rural Business Branch Resource and Rural Economics Division Highlights Net farm income in 213 forecast: $128.2 billion Net cash income in 213

More information

North American Agriculture: A Perspective As Indicated By U.S. Farm Financial Results

North American Agriculture: A Perspective As Indicated By U.S. Farm Financial Results North American Agriculture: A Perspective As Indicated By U.S. Farm Financial Results CAES Annual Meeting June 17-19, 212 Michael Harris Farm and Rural Business Branch USDA-Economic Research Service The

More information

U.S. Farm Income. Randy Schnepf Specialist in Agricultural Policy. February 28, 2014. Congressional Research Service 7-5700 www.crs.

U.S. Farm Income. Randy Schnepf Specialist in Agricultural Policy. February 28, 2014. Congressional Research Service 7-5700 www.crs. Randy Schnepf Specialist in Agricultural Policy February 28, 2014 Congressional Research Service 7-5700 www.crs.gov R40152 Summary According to USDA s Economic Research Service (ERS), national net farm

More information

North Dakota Agricultural Production and Rural Infrastructure

North Dakota Agricultural Production and Rural Infrastructure North Dakota Trends in Agricultural Production and Infrastructure Highlights - With no navigable waterways, North Dakota is heavily reliant on rail movements of its grain production. Did you know? Production

More information

Tennessee Agricultural Production and Rural Infrastructure

Tennessee Agricultural Production and Rural Infrastructure Tennessee Trends in Agricultural Production and Infrastructure Highlights - In many states the percentage of the state population designated by the U.S. Census Bureau as living in rural areas has declined,

More information

Managing Specialty Crop Risk in North Carolina: A Working Paper

Managing Specialty Crop Risk in North Carolina: A Working Paper Managing Specialty Crop Risk in North Carolina: A Working Paper James Robinson, Research & Policy Associate, RAFI Scott Marlow, Executive Director, RAFI Michelle Madeley, MPH-MCRP Candidate, UNC Chapel

More information

OBTAINING OPERATING CAPITAL FOR 2016 GRAIN OPERATIONS: NEEDS, RISKS, REWARDS & THE BOTTOM LINE

OBTAINING OPERATING CAPITAL FOR 2016 GRAIN OPERATIONS: NEEDS, RISKS, REWARDS & THE BOTTOM LINE OBTAINING OPERATING CAPITAL FOR 2016 GRAIN OPERATIONS: NEEDS, RISKS, REWARDS & THE BOTTOM LINE 02.03.16 JEFF RODIBAUGH FIRST FARMERS BANK & TRUST POLL: 2016 CORN BELT SEED CONFERENCE 1. You believe there

More information

Appendix I Whole Farm Analysis Procedures and Measures

Appendix I Whole Farm Analysis Procedures and Measures Appendix I Whole Farm Analysis Procedures and Measures The whole-farm reports (except for the balance sheets) include the same number of farms, which were all of the farms whose records were judged to

More information

Line 1b. In 2011, he sold steers he had bought for resale. He enters sales of $13,596. This amount is also written on the total line 1c.

Line 1b. In 2011, he sold steers he had bought for resale. He enters sales of $13,596. This amount is also written on the total line 1c. Schedule F (Form 1040), Profit or Loss From Farming Note. Schedule F has numerous changes for 2011. In addition, there are a number of lines that the IRS has decided not to use in 2011, but appear on the

More information

How much financing will your farm business

How much financing will your farm business Twelve Steps to Ag Decision Maker Cash Flow Budgeting File C3-15 How much financing will your farm business require this year? When will money be needed and from where will it come? A little advance planning

More information

U.S. Farm Policy: Overview and Farm Bill Update. Jason Hafemeister 12 June 2014. Office of the Chief Economist. Trade Bureau

U.S. Farm Policy: Overview and Farm Bill Update. Jason Hafemeister 12 June 2014. Office of the Chief Economist. Trade Bureau U.S. Farm Policy: Office of the Chief Economist Trade Bureau Overview and Farm Bill Update Jason Hafemeister 12 June 2014 Agenda Background on U.S. Agriculture area, output, inputs, income Key Elements

More information

ECONOMIC CONTRIBUTION OF NORTH CAROLINA AGRICULTURE AND AGRIBUSINESS

ECONOMIC CONTRIBUTION OF NORTH CAROLINA AGRICULTURE AND AGRIBUSINESS ECONOMIC CONTRIBUTION OF NORTH CAROLINA AGRICULTURE AND AGRIBUSINESS $76 BILLION Agriculture and Agribusiness, including the farming, processing, wholesaling and retailing of food, natural fiber and forestry

More information

Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2009 through 2015, Projected 2016

Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2009 through 2015, Projected 2016 CROP COSTS Department of Agricultural and Consumer Economics University of Illinois Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2009 through 2015, Projected 2016 Department

More information

Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2010 through 2015, Projected 2016 and 2017

Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2010 through 2015, Projected 2016 and 2017 CROP COSTS Department of Agricultural and Consumer Economics University of Illinois Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2010 through 2015, Projected 2016 and

More information

SOURCES AND USES OF FUNDS ON KFMA FARMS

SOURCES AND USES OF FUNDS ON KFMA FARMS KANSAS FARM MANAGEMENT ASSOCIATION Your Farm - Your Information - Your Decision N E W S L E T T E R Volume 6, Issue 3 March 2012 SOURCES AND USES OF FUNDS ON KFMA FARMS A flow of funds report, often referred

More information

AIC Farm Bill Brief #1

AIC Farm Bill Brief #1 University of California July 2007 Agricultural Issues Center AIC Farm Bill Brief #1 The Farm Bill and California Food and Agriculture* Daniel A. Sumner** Every five years or so the United States reconsiders

More information

Farm Financial Statements Net Worth Statement Statement of Cash Flows Net Income Statement Statement of Owner Equity

Farm Financial Statements Net Worth Statement Statement of Cash Flows Net Income Statement Statement of Owner Equity Farm Financial Statements Net Worth Statement Statement of Cash Flows Net Income Statement Statement of Owner Equity Recording Transactions in the Date Cash Journal Description Value Amount (bu., lb.,

More information

Cash to Accrual Income Approximation

Cash to Accrual Income Approximation Cash to Accrual Income Approximation With this program, the user can estimate accrual income using the Schedule F from his/her federal income tax return. Fast Tools & Resources Farmers typically report

More information

Long-Term Ag. Outlook Webinar October 30, 2015

Long-Term Ag. Outlook Webinar October 30, 2015 Long-Term Ag. Outlook Webinar October 30, 2015 email your ques-ons to jmintert@purdue.edu Long-Term Ag. Outlook Webinar October 30, 2015 The State of the Agricultural Economy Short-run: The Farm Boom is

More information

Agricultural Income and Finance Outlook

Agricultural Income and Finance Outlook United States Department of Agriculture A Report from the Economic Research Service www.ers.usda.gov AIS-88 December 2009 Agricultural Income and Finance Outlook J. Michael Harris, Kenneth Erickson, James

More information

ProPartners Financial Application Cover Page Please fax to 651-282-7861 with application

ProPartners Financial Application Cover Page Please fax to 651-282-7861 with application Loan Information: ProPartners Financial Application Cover Page Please fax to 651-282-7861 with application Applicant Name: Requested Amount Dealer Buy Down - % Dealer Add-On + % (Buy-down and add-on are

More information

Contents. Acknowledgements... iv. Source of Data...v

Contents. Acknowledgements... iv. Source of Data...v Kentucky Farm Business Management Program Annual Summary Data: Kentucky Grain Farms - 2011 Agricultural Economics Extension No. 2012-17 June 2012 By: Amanda R. Jenkins Michael C. Forsythe University of

More information

2015 Farm Bank Performance Report Key Findings

2015 Farm Bank Performance Report Key Findings 2015 Farm Bank Performance Report Key Findings The banking industry is the nation s most important supplier of credit to agriculture providing nearly 50 percent of all farm loans in the U.S. $170 billion

More information

3.3 Real Returns Above Variable Costs

3.3 Real Returns Above Variable Costs 3.3 Real Returns Above Variable Costs Several factors can impact the returns above variable costs for crop producers. Over a long period of time, sustained increases in the growth rate for purchased inputs

More information

STATISTICAL PROFILE OF CAPE BRETON. Prepared By: Nova Scotia Federation of Agriculture

STATISTICAL PROFILE OF CAPE BRETON. Prepared By: Nova Scotia Federation of Agriculture STATISTICAL PROFILE OF CAPE BRETON Prepared By: Nova Scotia Federation of Agriculture 1.0 Introduction Agriculture in the Local Economy Agriculture in Cape Breton is characterized by a diversity of farm

More information

First Quarter 2015 Earnings Conference Call. 20 February 2015

First Quarter 2015 Earnings Conference Call. 20 February 2015 First Quarter 2015 Earnings Conference Call 20 February 2015 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning

More information

Income Statement A Financial Management Tool

Income Statement A Financial Management Tool E-484 RM5-6.0 09-08 Risk Management Income Statement A Financial Management Tool Danny Klinefelter* An income statement measures the success of a business, in terms of net income or loss, for a period

More information

FARM SERVICE AGENCY Jason Shitanishi County Executive Director

FARM SERVICE AGENCY Jason Shitanishi County Executive Director FARM SERVICE AGENCY Jason Shitanishi County Executive Director USDA Farm Service Agency USDA has17 different agencies FSA serves farmers, ranchers, and agricultural producers We offer: Farm Loans Conservation

More information

The 2012 Census of Agriculture: Farm Sales and Production in Maryland

The 2012 Census of Agriculture: Farm Sales and Production in Maryland The 2012 Census of Agriculture: Farm Sales and Production in Maryland Introduction Sales of crops and livestock from Maryland s farms increased 13.2 percent between 2007 and 2012, after adjusting for inflation,

More information

Farm Credit s Mission to serve Young, Beginning, and Small Farmers. New loans made in 2010 to: Young: $7.3 billion Beginning: $10.

Farm Credit s Mission to serve Young, Beginning, and Small Farmers. New loans made in 2010 to: Young: $7.3 billion Beginning: $10. Farming s Future: The Next Generation Gary Matteson, Farm Credit Council VP Young, Beginning, Small Farmer Programs and Outreach Looking to the Future must know where beginning farmers are what beginning

More information

Cash Flow Budget: What Will It Tell Me? *

Cash Flow Budget: What Will It Tell Me? * Purdue Extension Knowledge to Go Cash Flow Budget: What Will It Tell Me? * How much financing will your farm business require this year? When will money be needed, and from where will it come? A little

More information

The data for this report were collected by Iowa Farm Business Association consultants and compiled by Iowa State University Extension and Outreach.

The data for this report were collected by Iowa Farm Business Association consultants and compiled by Iowa State University Extension and Outreach. 2015 Cash Iowa Rental Farm Rates Costs for Iowa Ag Decision Maker Returns 2015 Survey File C1-10 The farm record data utilized in this report were obtained from the Iowa Farm Business Association. The

More information

AGRICULTURAL SCIENCES Vol. II - Crop Production Capacity In North America - G.K. Pompelli CROP PRODUCTION CAPACITY IN NORTH AMERICA

AGRICULTURAL SCIENCES Vol. II - Crop Production Capacity In North America - G.K. Pompelli CROP PRODUCTION CAPACITY IN NORTH AMERICA CROP PRODUCTION CAPACITY IN NORTH AMERICA G.K. Pompelli Economic Research Service, U. S. Department of Agriculture, USA Keywords: Supply, policy, yields. Contents 1. Introduction 2. Past Trends in Demand

More information

Appendix A: Glossary

Appendix A: Glossary Appendix A: Glossary Acreage class - a structural indicator of farm size based on acres operated. The five acreage classes generally used in this report are: 1-49 acres, 50-179 acres, 180-499 acres, 500-999

More information

Research verification coordinators collaborate with Arkansas Division of Agriculture crop specialists to determine a typical production method for

Research verification coordinators collaborate with Arkansas Division of Agriculture crop specialists to determine a typical production method for 1 2 3 Research verification coordinators collaborate with Arkansas Division of Agriculture crop specialists to determine a typical production method for application in the crop enterprise budgets. 4 Whole

More information

AGRICULTURAL LOAN APPLICATION

AGRICULTURAL LOAN APPLICATION AGRICULTURAL LOAN APPLICATION REQUESTED LOAN AMOUNT PURPOSE APPLICANT TYPE INDIVIDUAL JOINT CORPORATION PARTNERSHIP OTHER REQUESTED LOAN TYPE OPERATING LINE OF CREDIT TERM EQUIPMENT REAL ESTATE INDIVIDUAL

More information

Setting up your Chart of Accounts

Setting up your Chart of Accounts FARM FUNDS WORKSHEETS Setting up your Chart of Accounts Supplies Supplies are any inputs that will be used on a field, group of livestock, or equipment. Setting up a supply will set up the related expense

More information

Weathering Unexpected Downturns in Agriculture. Paul Ellinger University of Illinois pellinge@illinois.edu

Weathering Unexpected Downturns in Agriculture. Paul Ellinger University of Illinois pellinge@illinois.edu Weathering Unexpected Downturns in Agriculture Paul Ellinger University of Illinois pellinge@illinois.edu Outline Risks and risk weights Agricultural producers Profitability Asset valuations Simple shocks

More information

The Debt Finance Landscape for U.S. Farming and Farm Businesses

The Debt Finance Landscape for U.S. Farming and Farm Businesses United States Department of Agriculture AIS-87 November 29 Contents Executive Summary.......... 2 Introduction................ 4 Trends in Agricultural Debt... 7 Loans and Credit Access Approaches Differ

More information

U.S. crop program fiscal costs: Revised estimates with updated participation information

U.S. crop program fiscal costs: Revised estimates with updated participation information U.S. crop program fiscal costs: Revised estimates with updated participation information June 2015 FAPRI MU Report #02 15 Providing objective analysis for 30 years www.fapri.missouri.edu Published by the

More information

Cash Flow Projection for Operating Loan Determination

Cash Flow Projection for Operating Loan Determination E-19 RM-7.0 02-09 Risk Management Cash Flow Projection for Operating Loan Determination Danny Klinefelter and Dean McCorkle* A cash flow statement can be simply described as a record of the dollars coming

More information

Audience Response Cards 2/13/2013. Operating with Today s Land Values. Outline for today: Know how. Know now. Know how. Know now. Know how. Know now.

Audience Response Cards 2/13/2013. Operating with Today s Land Values. Outline for today: Know how. Know now. Know how. Know now. Know how. Know now. Operating with Today s Land Values Prepared by: T. Lemmons & A. Vyhnalek Adapted from: B. Johnson. (2012). Nebraska Farm Real Estate Market Report. UNL Extension Presented by: Allan Vyhnalek 402 563 4901

More information

AgriInsurance in Canada

AgriInsurance in Canada AgriInsurance in Canada Brad Klak, President and Managing Director Merle Jacobson, COO, Operations Division Agriculture Financial Services Corporation Alberta, Canada Agriculture in Canada Total Cash Receipts

More information

New England Cash Receipts 2012

New England Cash Receipts 2012 New England Cash Receipts 2012 December 15, 2013 2012 Farm Cash Receipts down 2 percent in New England New England cash receipts from farm marketings totaled $2.702 billion in 2012, a decrease of $67 million

More information

This article illustrated deferred tax liabilities for a cash crop farm in west central Indiana. The

This article illustrated deferred tax liabilities for a cash crop farm in west central Indiana. The September 2014 Computation of Deferred Liabilities Michael Langemeier, Associate Director, Center for Commercial Agriculture This article is one of a series of financial management articles that will examine

More information

Agriculture & Business Management Notes...

Agriculture & Business Management Notes... Agriculture & Business Management Notes... Preparing and Analyzing a Cash Flow Statement Quick Notes... Cash Flow Statements summarize cash inflows and cash outflows over a period of time. Uses of a Cash

More information

CROP BUDGETS, ILLINOIS, 2015

CROP BUDGETS, ILLINOIS, 2015 CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2015 Department of Agricultural and Consumer Economics University of Illinois September 2015

More information

Using Enterprise Budgets to Compute Crop Breakeven Prices Michael Langemeier, Associate Director, Center for Commercial Agriculture

Using Enterprise Budgets to Compute Crop Breakeven Prices Michael Langemeier, Associate Director, Center for Commercial Agriculture October 2015 Using Enterprise Budgets to Compute Crop Breakeven Prices Michael Langemeier, Associate Director, Center for Commercial Agriculture Enterprise budgets provide an estimate of potential revenue,

More information

Agricultural Balance Sheet (Financial Statement)

Agricultural Balance Sheet (Financial Statement) Agricultural Balance Sheet (Financial Statement) This form can be used as a guide to collect information for an annual financial statement or for an application for credit. If you are using the Adobe PDF

More information

Farm Tax Record Book SAMPLE

Farm Tax Record Book SAMPLE Farm Tax Record Book TABLE OF CONTENTS Farm Receipts... Milk Sales and Deductions Worksheet... Government Payments Worksheet... Commodity Certificates... Sale of Livestock Worksheet... Farm Expenses...0

More information

The Farmland Asset Class

The Farmland Asset Class The Farmland Asset Class December 2010 Jeffrey A. Conrad, CFA President, Hancock Agricultural Investment Group jconrad@hnrg.com (617) 747-1601 Presentation Overview I. Introduction to the Hancock Agricultural

More information

Farm Financial Management

Farm Financial Management Farm Financial Management Your Farm Income Statement How much did your farm business earn last year? There are many ways to answer this question. A farm income statement (sometimes called a profit and

More information

Greening Income Support and Supporting Green

Greening Income Support and Supporting Green Conservation Program Design Greening Income Support and Supporting Green Roger Claassen and Mitch Morehart Green payments refer broadly to farm payment programs that would, if enacted, merge farm income

More information

MPP Decision Guide 15 01. MPP Dairy Financial Stress test Calculator: A User s Guide

MPP Decision Guide 15 01. MPP Dairy Financial Stress test Calculator: A User s Guide MPP Decision Guide 15 01 MPP Dairy Financial Stress test Calculator: A User s Guide Christopher Wolf and Marin Bozic Michigan State University and the University of Minnesota A financial stress test calculator

More information

Assessing and Improving Farm Profitability

Assessing and Improving Farm Profitability 1 Fact Sheet 539 Assessing and Improving Farm Profitability Is my farm making money? This is a question farm managers think about often. To stay in business, the farm must generate a profit, at least in

More information

but that was then. Today, those in agriculture may find themselves competing against lower-risk businesses for the services of a lender.

but that was then. Today, those in agriculture may find themselves competing against lower-risk businesses for the services of a lender. There was a time when lenders knew the financial pressures and capitalization needs of those involved in agriculture. They knew just about every member of the agricultural community by name and probably

More information

Enterprise Budgeting. By: Rod Sharp and Dennis Kaan Colorado State University

Enterprise Budgeting. By: Rod Sharp and Dennis Kaan Colorado State University Enterprise Budgeting By: Rod Sharp and Dennis Kaan Colorado State University One of the most basic and important production decisions is choosing the combination of products or enterprises to produce.

More information

U.S. Cattle History, Cycles and Trends

U.S. Cattle History, Cycles and Trends Breimyer Seminar July 17, 2013 U.S. Cattle History, Cycles and Trends Ron Plain, Ph.D. D. Howard Doane Professor Dept. of Agricultural & Applied Economics University of Missouri-Columbia http://web.missouri.edu/~plainr/

More information

2013 World Grain Outlook

2013 World Grain Outlook 2013 World Grain Outlook Presented by: John Roach February 18, 2013 Disclaimer: Futures/options trading involves substantial risk of loss and trading may not be suitable for all investors. You should fully

More information

How much did your farm business earn last year?

How much did your farm business earn last year? Your Farm Ag Decision Maker Income Statement File C3-25 How much did your farm business earn last year? Was it profitabile? There are many ways to answer these questions. A farm income statement (sometimes

More information

Third Quarter 2014 Earnings Conference Call. 13 August 2014

Third Quarter 2014 Earnings Conference Call. 13 August 2014 Third Quarter 2014 Earnings Conference Call 13 August 2014 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the

More information

Repayment Capacity Analysis

Repayment Capacity Analysis Repayment Capacity Analysis With this program, the user can estimate the cash needs required to meet living, debt, and investment payments plus evaluate the risks and returns for seven different types

More information

Crop-Share and Cash Rent Lease Comparisons Version 1.6. Introduction

Crop-Share and Cash Rent Lease Comparisons Version 1.6. Introduction Crop-Share and Cash Rent Lease Comparisons Version 1.6 Alan Miller and Craig L. Dobbins Spreadsheet can be found at http://www.agecon.purdue.edu/extension/pubs/farmland_values.asp Introduction This spreadsheet

More information

Issues In Agriculture

Issues In Agriculture Issues In Agriculture John Stulp, Commissioner of Agriculture November, 2010 Colorado Department of Agriculture CDA is charged with: Strengthening and advancing Colorado s agriculture industry; Ensuring

More information

Third Quarter 2015 Earnings Conference Call. 21 August 2015

Third Quarter 2015 Earnings Conference Call. 21 August 2015 Third Quarter 2015 Earnings Conference Call 21 August 2015 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the

More information

Implications of Crop Insurance as Social Policy

Implications of Crop Insurance as Social Policy Implications of Crop Insurance as Social Policy Bruce Babcock Iowa State University Presented at the Minnesota Crop Insurance Conference Sept 10, 2014 Mankato, MN Summary of talk 2014 farm bill irrevocably

More information

Main Street ECONOMIST: ECONOMIST THE THE. Economic information. Financing Young and Beginning Farmers. By Nathan Kauffman, Economist

Main Street ECONOMIST: ECONOMIST THE THE. Economic information. Financing Young and Beginning Farmers. By Nathan Kauffman, Economist THE Main Street ECONOMIST: ECONOMIST Economic information Agricultural for the and Cornhusker Rural Analysis State September 201 0 Federal Reserve Bank of of Kansas City Financing Young and Beginning Farmers

More information

A Summary of the USDA s Prospective Plantings and Grain Stocks Report

A Summary of the USDA s Prospective Plantings and Grain Stocks Report A Summary of the USDA s Prospective Plantings and Grain Stocks Report March 31, Aaron Smith and Chuck Danehower Department of Agricultural & Resource Economics University of Tennessee Extension A Summary

More information

2015 Risk and Profit Conference Breakout Session Presenters. 12. Managing Risk in Today s Environment

2015 Risk and Profit Conference Breakout Session Presenters. 12. Managing Risk in Today s Environment 2015 Risk and Profit Conference Breakout Session Presenters Elizabeth Yeager 12. Managing Risk in Today s Environment Elizabeth Yeager joined the Dept. of Agricultural Economics at Kansas

More information

AFBF Comparison of Senate and House Committee passed Farm Bills May 16, 2013

AFBF Comparison of Senate and House Committee passed Farm Bills May 16, 2013 CURRENT LAW SENATE AG COMMITTEE (S. 954) HOUSE AG COMMITTEE (HR 1947) Reported out of Committee 15 5 Reported out of Committee 36 10 Cost $979.7 billion over the 10 years before sequester reductions of

More information

Impact of Debt on Ontario Swine Farms

Impact of Debt on Ontario Swine Farms Impact of Debt on Ontario Swine Farms Prepared by: Randy Duffy and Ken McEwan University of Guelph, Ridgetown Campus November 2011 Funding support for this project. This project is funded in part through

More information

Impact of Fuel Price Increases on Texas Crops

Impact of Fuel Price Increases on Texas Crops Impact of Fuel Price Increases on Texas Crops Chris R. Eggerman Research Assistant Department of Agricultural Economics Texas A&M University College Station, Texas 77843-2124 creggerman@ag.tamu.edu James

More information

USDA Acreage and Quarterly Grain Stocks Reports, June 30, University of Tennessee Extension Aaron Smith and Chuck Danehower

USDA Acreage and Quarterly Grain Stocks Reports, June 30, University of Tennessee Extension Aaron Smith and Chuck Danehower Market Reaction USDA Acreage and Quarterly Grain Stocks Reports, June 30, 2015 University of Tennessee Extension Aaron Smith and Chuck Danehower On Tuesday June 30 th the USDA surprised the market releasing

More information

Map 1. Average Dollar Value of Agricultural Products Sold per Farm

Map 1. Average Dollar Value of Agricultural Products Sold per Farm Profiles: Government Farm Payments and Other Government Transfer Payments in the United States Iowa State University Department of Economics Authors: Liesl Eathington, Research Associate Dave Swenson,

More information

r:u ~ a custom farming contract (9 none of the above @ all the above types of credit are types of credit commercial banks provide c!

r:u ~ a custom farming contract (9 none of the above @ all the above types of credit are types of credit commercial banks provide c! --" Economics 330 Fall 2004 Exam 3 Name r:u Part I: Multiple Choice. Circle the best answer. (3 points each) 1. Advantages of land ownership would include: a. frees up working capital, operation size is

More information

Analysis of Risk Management Proposals

Analysis of Risk Management Proposals Analysis of Risk Management Proposals FAPRI Policy Working Paper #01-00 February 2000 Bruce Babcock Chad Hart Gary Adams Pat Westhoff Prepared by the Food and Agricultural Policy Research Institute University

More information

BKD LENDING INSTITUTE AGRICULTURAL LENDING WITH A FOCUS ON GRAIN LENDING. Knowing where we have been, where we are now & where we may be going

BKD LENDING INSTITUTE AGRICULTURAL LENDING WITH A FOCUS ON GRAIN LENDING. Knowing where we have been, where we are now & where we may be going BKD LENDING INSTITUTE AGRICULTURAL LENDING WITH A FOCUS ON GRAIN LENDING Knowing where we have been, where we are now & where we may be going July 14, 2016 Teddy Girton Director Loan Review Services tgirton@bkd.com

More information

Missouri. AgriculturePrevailingWageSurvey MISSOURIECONOMICRESEARCHANDINFORMATIONCENTER MISSOURIDEPARTMENTOFECONOMICDEVELOPMENT

Missouri. AgriculturePrevailingWageSurvey MISSOURIECONOMICRESEARCHANDINFORMATIONCENTER MISSOURIDEPARTMENTOFECONOMICDEVELOPMENT Missouri AgriculturePrevailingWageSurvey 2014 MISSOURIECONOMICRESEARCHANDINFORMATIONCENTER MISSOURIDEPARTMENTOFECONOMICDEVELOPMENT Introduction Introduction The 2014 Missouri Prevailing Wage Agriculture

More information

Topic 7: Financial Performance

Topic 7: Financial Performance Topic 7: Financial Performance One of the most important tasks in transition planning is analyzing the financial performance of the farm operation. Too many farms move ahead making decisions regarding

More information

298,320 3,041 107,825. Missouri Economic Research Brief FARM AND AGRIBUSINESS. Employment. Number of Agribusinesses.

298,320 3,041 107,825. Missouri Economic Research Brief FARM AND AGRIBUSINESS. Employment. Number of Agribusinesses. Missouri Economic Research Brief FARM AND AGRIBUSINESS Missouri s Farm and Agribusiness Missouri s farm and agribusiness sectors include crops, livestock, industries supporting farm production and farm-related

More information

Agriculture & Business Management Notes...

Agriculture & Business Management Notes... Agriculture & Business Management Notes... Preparing an Income Statement Quick Notes... The income statement measures the profitability of a business over a specific period of time. Cash reporting of income

More information

Composition of Farm Household Income and Wealth

Composition of Farm Household Income and Wealth Composition of Farm Household Income and Wealth Today it is rare for any household to receive all of its from a single source. Even when only one household member is employed, it is possible to earn from

More information

Understanding Key Financial Ratios and Benchmarks

Understanding Key Financial Ratios and Benchmarks Understanding Key Financial Ratios and Benchmarks How does my business stack up compared to my neighbors? This question is becoming more and more common as the agricultural industry continues to change

More information

ARC/PLC Program Overview

ARC/PLC Program Overview ARC/PLC Program Overview FSA and University of MN Extension Producer Meetings December 2014 January 2015 The 2014 Farm Bill provides the following: Eliminates DCP and ACRE program Allows for a one-time

More information

Statistical Profile of Lunenburg County

Statistical Profile of Lunenburg County Statistical Profile of Lunenburg County Prepared by the Nova Scotia Federation of Agriculture 1 Contents 1.0 Introduction... 2 Agriculture in the Local Economy... 2 2.0 Population and Population Change...

More information

AGRICULTURE CREDIT CORPORATION CASH WHEN YOU NEED IT MOST

AGRICULTURE CREDIT CORPORATION CASH WHEN YOU NEED IT MOST AGRICULTURE CREDIT CORPORATION CASH WHEN YOU NEED IT MOST OVERVIEW 1) Observations on Farm Debt in Canada 2) Overview of the APP and Changes 3) Overview of the Commodity Loan Program (CLP) 90000000 Total

More information

STANDARDIZED PERFORMANCE ANALYSIS

STANDARDIZED PERFORMANCE ANALYSIS STANDARDIZED PERFORMANCE ANALYSIS SPA-6 COW-CALF ENTERPRISE FINANCIAL PERFORMANCE MEASURES WORKSHEET (SPA-FCC) * 6-16-06 SPA is a standardized cow-calf enterprise production and financial performance analysis

More information

FUTURES TRADERS GUIDE TO THE WASDE

FUTURES TRADERS GUIDE TO THE WASDE FUTURES TRADERS GUIDE TO THE WASDE Your Guide To Understanding The USDA World Agriculture Supply & Demand Estimates For Corn, Soybeans And Wheat By Craig & Drew Daniels 1.800.800.3840 What Is The WASDE?

More information

Farm Business Analysis Report BEEF SUMMARY

Farm Business Analysis Report BEEF SUMMARY Extension No. M M-356 ESQ No. 490 1977 Farm Business Analysis Report BEEF SUMMARY Department of Agricultural Economics and Rural Sociology Cooperative Extension Service The Ohio State University Columbus,

More information

Section II: Problem Solving (200 points) KEY

Section II: Problem Solving (200 points) KEY ARE 495U Assignment 2-10 points Create 5 or more marketing plan questions that need to be answered related to FF. 2013 North Carolina FFA Farm Business Management Career Development Event Section II: Problem

More information

18. Agricultural Policy

18. Agricultural Policy 18. Agricultural Policy Congress should phase down and terminate crop subsidies, a process that was supposed to begin with passage of the 1996 Freedom to Farm Act; move farmers toward the use of market-based

More information

Managing Risk With Revenue Insurance

Managing Risk With Revenue Insurance Managing Risk With Revenue Insurance VOLUME 4 ISSUE 5 22 Robert Dismukes, dismukes@ers.usda.gov Keith H. Coble, coble@agecon.msstate.edu Comstock 10 Crop revenue insurance offers farmers a way to manage

More information

CROP INSURANCE. Reducing Subsidies for Highest Income Participants Could Save Federal Dollars with Minimal Effect on the Program

CROP INSURANCE. Reducing Subsidies for Highest Income Participants Could Save Federal Dollars with Minimal Effect on the Program United States Government Accountability Office Report to Congressional Requesters March 2015 CROP INSURANCE Reducing Subsidies for Highest Income Participants Could Save Federal Dollars with Minimal Effect

More information

AGRICULTURE FINANCIAL STATEMENT Borrower # AND LOAN APPLICATION Telephone #

AGRICULTURE FINANCIAL STATEMENT Borrower # AND LOAN APPLICATION Telephone # AGRICULTURE FINANCIAL STATEMENT Borrower # AND LOAN APPLICATION Telephone # For the purpose of obtaining credit from Ramsey National Bank (RNB) and any future credit granted by the RNB, or to support an

More information

Microloans Cultivating Big Dreams on a Smaller Scale

Microloans Cultivating Big Dreams on a Smaller Scale Microloans Cultivating Big Dreams on a Smaller Scale What is FSA? The U.S. Department of Agriculture s (USDA), (FSA) provides services to farmers through loans, payment programs, commodity price support,

More information

Analyzing Quicken Farm Records with FINPACK

Analyzing Quicken Farm Records with FINPACK Analyzing Quicken Farm Records with FINPACK FINPACK is a computerized farm financial planning and analysis system. It will help you evaluate your financial situation, explore alternatives, and make informed

More information

What s Great About Texas Agriculture?

What s Great About Texas Agriculture? What s Great About Texas Agriculture? A Special Publication Of The Center for Agricultural Technology Transfer Texas Tech University Prepared for the Texas Governor s Science & Technology Council March

More information

CROP REVENUE COVERAGE INSURANCE PROVIDES ADDITIONAL RISK MANAGEMENT WHEAT ALTERNATIVES 1

CROP REVENUE COVERAGE INSURANCE PROVIDES ADDITIONAL RISK MANAGEMENT WHEAT ALTERNATIVES 1 Presented at the 1997 Missouri Commercial Agriculture Crop Institute CROP REVENUE COVERAGE INSURANCE PROVIDES ADDITIONAL RISK MANAGEMENT WHEAT ALTERNATIVES 1 Presented by: Art Barnaby Managing Risk With

More information

Acquiring Working Capital. Presented by Allen Lash, CEO AgriSolutions Inc. Top Producer Seminar January 22, 2009

Acquiring Working Capital. Presented by Allen Lash, CEO AgriSolutions Inc. Top Producer Seminar January 22, 2009 Acquiring Working Capital Presented by Allen Lash, CEO AgriSolutions Inc. Top Producer Seminar January 22, 2009 Working Capital Fundamentals Working Capital Sources The Only Ways to Build Working Capital

More information

The financial position and performance of a farm

The financial position and performance of a farm Farm Financial Ag Decision Maker Statements File C3-56 The financial position and performance of a farm business can be summarized by four important financial statements. The relationship of these statements

More information