Missouri Soybean Economic Impact Report

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Missouri Soybean Economic Impact Report"

Transcription

1 Missouri Soybean Economic Report State Analysis March 2014

2 The following soybean economic impact values were estimated by Value Ag, LLC, as part of a Missouri Soybean Merchandising Council funded project.

3 TABLE OF CONTENTS About the Economic Values... 1 Executive Summary... 2 Chapter 1 Inputs Sector Production Costs Soybean Acreage Input Sector Economic... 6 Chapter 2 Farm Level Sector Soybean Farms and Soybean Farm Characteristics Farm Revenue and Profit Farm Level Sector Economic Chapter 3 Storage Sector Storage Facilities and Capacity Soybean Stocks Off Farm Storage Sector Economic Chapter 4 Transportation Sector Transportation Trends Off Farm Transportation Sector Economic Chapter 5 Processing Sector Soybean Processing Economic of Processing Missouri Soybeans A Economic of Processing Soybeans in Missouri Chapter 6 Biodiesel Sector Biodiesel Production Biodiesel Sector Economic Chapter 7 Exports Sector Soybean and Soy Products Exports Exports Sector Economic Methodology... 19

4 EXHIBITS About the Economic Values... 1 Executive Summary... 2 Chapter 1 Inputs Sector... 4 Exhibit Missouri Soybean Cost of Production... 4 Exhibit Missouri Soybean Production Dollars Spent, 2010 to 2012 Average, Millions... 5 Exhibit Missouri Planted and Harvested Soybean Acreage, 1970 to Exhibit Annual Estimated Economic s of Inputs Sector... 7 Chapter 2 Farm Level Sector... 8 Exhibit Missouri Soybean Farms, Acreage and Bushels Produced, Exhibit Missouri Soybean Production and Yield, 1970 to Exhibit Missouri Cash Receipts for Soybeans, Nominal Dollars, 1975 to Exhibit Missouri Soybean Cash Receipts in Real 1975 Dollars Exhibit Missouri Leading Commodities for Cash Receipts, 2010 to Exhibit Annual Estimated Economic of Missouri Soybean Farmer Revenue Chapter 3 Storage Sector Exhibit Locations of Missouri Grain Elevators, Exhibit Capacity (Bushels) of Missouri Grain Elevators, Exhibit Missouri Soybean Stocks on Dec. 1, 1949, to Dec. 1, Exhibit Annual Estimated Economic of Off Farm Storage Sector Chapter 4 Transportation Sector Exhibit U.S. Soybean Modal Shares Exhibit Annual Estimated Economic of Off Farm Trucking Sector Chapter 5 Processing Sector Exhibit Annual Estimated Economic of Processing Missouri Soybeans Exhibit 5.2A.1 Annual Estimated Economic of Processing Soybeans in Missouri Chapter 6 Biodiesel Sector Exhibit Annual Estimated Economic of Biodiesel Sector Chapter 7 Exports Sector Exhibit Annual Estimated Economic of Soy Products Exports Sector Methodology M1 Industries Represented in Economic Calculations... 20

5 About the Economic Values The Missouri Soybean Economic Report measures the economic value generated by seven sectors in the Missouri soybean products value chain: input suppliers, soybean producers, storage facilities, truck transportation providers, processors, biodiesel refineries and exporters. Throughout the report, as many as three economic impact values will be presented for each sector. Each value has a different meaning: Output economic impact: Output multipliers measure the total dollar change in output that occurs in all U.S. industries for each additional dollar of output delivered to final demand by the industry corresponding to the entry. Earnings economic impact: Earnings multipliers measure the total dollar change in earnings of U.S. households employed by all industries for each additional dollar of output delivered to final demand by the industry corresponding to the entry. Value added economic impact: Value added multipliers measure the total dollar change in value added that occurs in all U.S. industries for each additional dollar of output delivered to final demand by the industry corresponding to the entry. For some industries, only value added economic impact is reported because these industries play a supporting role in adding value to soybeans and soybean products. Page 1 of 20

6 Executive Summary Soybean production, processing and the industries that support these activities are significant economic contributors in Missouri. Between 2010 and 2012, Missouri farmers on average planted 5.28 million soybean acres annually and harvested 5.18 million soybean acres annually. During these three years, annual production averaged million bushels per year, and yield averaged 36 bushels per acre. Inputs Sector Missouri soybean farmers incur significant costs to produce crops. Seed and fertilizer are the major operating costs, and opportunity cost of land and capital recovery of machinery and equipment are the two most significant allocated overhead costs that Missouri soybean farmers incur. Funding all inputs involved in Missouri soybean production generated more than an estimated $3.14 billion in total output economic impact and $1.44 million in valueadded economic impact on average per year during 2010, 2011 and Estimated Total Annual Output Estimated Total Annual Estimated Total Annual Economic Earnings Value Added $3,141,519,688 $667,905,368 $1,449,556,866 Farm Level Sector Soybeans are Missouri s leading commodity for cash receipts. Missouri soybean cash receipts totaled $2.29 billion in 2012, and they averaged $2.31 billion per year between 2010 and During 2010, 2011 and 2012, they represented on average 24.8 percent of Missouri s total farm receipts and 6.2 percent of the total U.S. soybean cash receipts. From 2010 to 2012, farmer revenue from soybean production annually boosted Missouri s economy by more than an estimated $1.7 billion in total value added economic impact and an estimated $4.23 billion in total output economic impact. Estimated Total Annual Output Estimated Total Annual Estimated Total Annual Economic Earnings Value Added $4,236,873,976 $666,495,360 $1,706,505,828 Off Farm Storage Sector The storage sector supports the Missouri soybean industry, especially in highly productive years when on farm storage isn t sufficient. Firms that store Missouri soybeans annually contributed an estimated $12.62 million in value added economic impact on average between 2010 and Off Farm Truck Transportation Sector Estimated Total Annual Value Added $12,628,144 Trucking is another industry that supports Missouri soybean production. Semi trucks fulfill a majority of soybean transportation assignments. Firms involved in transporting Missouri Page 2 of 20

7 soybeans by truck contributed an estimated $30.59 million in value added economic impact per year during 2010, 2011 and Estimated Total Annual Value Added $30,590,825 Processing Sector Between 2010 and 2012, annual Missouri soybean production averaged more than million bushels. Missouri crushing facilities process a share of those soybeans that haven t been exported internationally. The remaining share is processed in neighboring states. Processing all Missouri produced soybeans that aren t exported annually contributed more than $7.01 billion in total output economic impact on average and $1.94 billion in total value added economic impact on average during 2010, 2011 and Estimated Total Annual Output Estimated Total Annual Estimated Total Annual Economic Earnings Value Added $7,014,139,406 $1,044,227,270 $1,943,232,625 An estimated 60 percent of Missouri produced soybeans crushed domestically were annually processed in Missouri during 2010, 2011 and 2012, and soybean processing activity in Missouri generates economic impact for the state. Between 2010 and 2012, processing soybeans in Missouri annually created an estimated $4.24 billion in total output economic impact, $ million in earnings economic impact and $1.17 billion in valueadded economic impact. Estimated Total Annual Output Estimated Total Annual Estimated Total Annual Economic Earnings Value Added $4,244,743,877 $631,934,590 $1,175,985,293 Biodiesel Sector Missouri biodiesel refineries produce both biodiesel and glycerin. Between 2010 and 2012, Missouri refineries annually produced an estimated million gallons of biodiesel using soybean oil. The annual value added economic impact from biodiesel and glycerin production is estimated to have averaged $ million per year from 2010 to Exports Sector Estimated Total Annual Value Added $328,718,054 When exporting Missouri soybeans and soybean products, exporters add value by coordinating sales with foreign buyers. As an annual average, exporters added an estimated $9.35 million in value added economic impact per year between 2010 and Estimated Total Annual Value Added $9,353,323 Page 3 of 20

8 Chapter I. Input Sector 1.1 Production Costs Exhibit presents soybean cost of production data. Opportunity cost of land is estimated using USDA National Agricultural Statistics Service data. The other costs are USDA Economic Research Service estimates for the Heartland Region, which includes Missouri and parts of Iowa, Illinois, Nebraska, South Dakota, Kentucky, Indiana and Ohio. Production costs include seed, fertilizer and chemicals; custom operations; fuel, lube and electricity; repairs; and interest on operating capital. Total annual operating costs averaged $ per acre between 2010 and Seed, fertilizer and chemical costs are the most significant operating expenses. Allocated overhead costs incurred are for hired labor; opportunity cost of unpaid labor; capital recovery of machinery and equipment; opportunity cost of land, or the land rental rate; taxes and insurance; and general farm overhead, which includes farm supplies, marketing containers, hand tools, power equipment, maintenance and repair of farm buildings, farm utilities and general business expenses. The opportunity cost of land and capital recovery of machinery and equipment are the most significant allocated overhead costs incurred for producing soybeans. Total annual allocated overhead costs per acre averaged $ between 2010 and Exhibit Missouri Soybean Cost of Production Operating Costs 2010 ($ Per Acre) Page 4 of ($ Per Acre) 2012 ($ Per Acre) Three Year Average ($ Per Acre) Seed $57.49 $55.05 $60.81 $57.78 Fertilizer * $16.88 $22.37 $23.98 $21.08 Chemicals $16.64 $16.30 $17.10 $16.68 Custom operations $6.10 $6.22 $6.33 $6.22 Fuel, lube, and electricity $13.06 $16.65 $16.55 $15.42 Repairs $11.69 $12.12 $12.49 $12.10 Interest on operating capital $0.12 $0.06 $0.09 $0.09 Total, operating costs $ $ $ $ Allocated Overhead Costs Hired labor $1.27 $1.28 $1.34 $1.30 Opportunity cost of unpaid labor $15.84 $16.01 $16.68 $16.18 Capital recovery of machinery and equipment $73.90 $78.40 $82.58 $78.29 Opportunity cost of land, rental rate (+) $94.00 $ $ $99.33 Taxes and insurance $9.29 $9.96 $10.18 $9.81 General farm overhead $14.90 $15.46 $15.92 $15.43 Total, allocated overhead $ $ $ $ Total costs $ $ $ $ Sources: USDA Economic Research Service and USDA National Agricultural Statistics Service (+) * Includes commercial fertilizer, soil conditioners and manure.

9 Each year, spending on soybean production inputs provides a significant boost to the agriculture economy. Between 2010 and 2012, on average, Missouri soybean producers annually planted 5.3 million acres of soybeans. After considering the three year average cost of production, Exhibit displays production costs incurred for Missouri soybean production. Combined, annual production expenditures were an estimated $1.85 billion. Excluding the cost of land, annual soybean production expenditures were $1.32 billion. The three industries that benefited most from soybean production in Missouri, excluding land, were capital recovery of machinery and equipment ($415 million annually on average), seed ($306.3 million annually on average) and fertilizer ($111.7 million annually on average), according to the USDA Economic Research Service and USDA National Agricultural Statistics Service. Exhibit Soybean Production Dollars Spent, 2010 to 2012 Annual Average General farm Taxes and overhead, $81.8 insurance, million $52.0 million Seed, $306.3 million Opportunity cost of land (rental rate), $526.5 million Source: USDA Economic Research Service and USDA National Agricultural Statistics Service I.2 Soybean Acreage Capital recovery of machinery and equipment, $415.0 million Exhibit shows trends in Missouri soybean acreage. Since 1980, Missouri soybean planted acreage has been relatively flat. Between 1980 and 2012, Missouri annually Page 5 of 20 Fertilizer, $111.7 million Chemicals, $88.4 million Opportunity cost of unpaid labor, $85.7 million Custom operations, $32.9 million Fuel, lube, and electricity, $81.7 million Repairs, $64.1 million Interest on operating capital, $0.5 million Hired labor, $6.9 million

10 planted 4.97 million soybean acres on average and harvested 4.87 million soybean acres on average. Between 2010 and 2012, Missouri farmers planted 5.28 million soybean acres annually on average and harvested 5.18 million soybean acres annually on average, according to the USDA National Agricultural Statistics Service. Exhibit Missouri Planted and Harvested Soybean Acreage, 1980 to ,000,000 6,000,000 5,000,000 Acres 4,000,000 3,000,000 2,000,000 1,000, Planted Acres Source: USDA National Agricultural Statistics Service Harvested Acres I.3 Input Sector Economic Exhibit reports the annual estimated economic contribution that Missouri soybean production caused the farm input sector to create during 2010, 2011 and As illustrated, opportunity cost of land provided the largest economic contribution. Capital recovery of machinery and equipment and seed sales were the second and third largest input sector contributors, respectively. The total output economic impact made by input sectors involved in the Missouri soybean industry annually totaled an estimated $3.14 billion between 2010 and These industries added $1.44 billion in value per year, and they contributed an estimated $667.9 million in earnings realized by households employed in all industries per year. Page 6 of 20

11 Exhibit Annual Estimated Economic s of Input Sector Subsector Total Output Total Earnings Total Value Added Seed $420,697,915 $122,806,918 $275,350,874 Fertilizer $218,620,465 $36,851,919 $68,397,788 Chemicals $151,931,114 $24,611,674 $69,017,003 Custom operations $51,317,029 $18,352,222 $27,277,925 Fuel, lube and electricity $106,867,642 $19,960,213 $41,290,699 Repairs $86,844,846 $27,312,967 $57,717,000 Interest on operating capital $642,996 $150,780 $432,925 Hired labor $10,703,659 $3,827,890 $5,689,605 Opportunity cost of unpaid labor $133,534,339 $47,755,138 $70,981,110 Capital recovery of machinery and equipment $673,097,965 $132,702,502 $285,198,342 Opportunity cost of land (rental rate) $1,076,940,213 $164,731,420 $436,493,513 Taxes and insurance $82,978,228 $23,300,663 $44,019,873 General farm overhead $127,343,277 $45,541,063 $67,690,208 Total $3,141,519,688 $667,905,368 $1,449,556,866 Page 7 of 20

12 Chapter II. Farm Level Sector 2.1 Soybean Farms and Soybean Farm Characteristics In 2007, 18,388 Missouri farms harvested soybeans. Exhibit details the number of soybean growing farms, soybean acreage and soybean production based on farm size. Note that nearly half of Missouri soybean growing farms in 2007 had less than 100 acres. Of the six farm size classifications, the category composed of farms with 500 acres to 999 acres represents the biggest share of Missouri soybean acres. It represents the largest share of soybean bushels produced, too, according to the 2007 Census of Agriculture. Exhibit Missouri Soybean Farms, Acreage and Bushels Produced, 2007 Farm Size Number of Soybean Farms % of Total Farms Number of Acres % of Total Acres Bushels Produced % of Total Bushels Produced 1 to 99 acres 8, % 383, % 12,848, % 100 to 249 acres 4, % 646, % 22,523, % 250 to 499 acres 2, % 931, % 32,907, % 500 to 999 acres 1, % 1,260, % 45,272, % 1,000 to 1,999 acres % 972, % 34,791, % 2,000 or more acres % 478, % 17,604, % Total 18,388 4,672, ,947,323 Source: USDA National Agricultural Statistics Service, Census of Agriculture, Farm Revenue and Profits Exhibit illustrates changes in Missouri soybean production and yields from 1980 to Yields and production values tend to jump periodically as seed genetic, fertility and management innovations are introduced to Missouri soybean producers. Production and yield dropped substantially during 2012 because Missouri experienced extreme drought conditions that limited the soybean production capability. Between 2010 and 2012, Missouri soybean production averaged million bushels per year, and yield averaged 36 bushels per acre, according to the USDA National Agricultural Statistics Service. Page 8 of 20

13 Exhibit Missouri Soybean Production and Yield, 1980 to Bushels/acre Millions of bushels Production Yield Source: USDA National Agricultural Statistics Service Between 2010 and 2012, soybean cash receipts annually averaged $2.31 billion, which represented 6.4 percent of total U.S. soybean receipts, based on an average of 2010, 2011 and 2012 data. Between 1980 and the mid 2000s, Missouri soybean cash receipts were relatively consistent. Since the mid 2000s Missouri soybean cash receipts have accelerated significantly, according to USDA Economic Research Service data. Exhibit shows historical changes in Missouri soybean cash receipts. Exhibit Missouri Cash Receipts for Soybeans, Nominal Dollars, 1980 to 2012 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Thousand Dollars Source: USDA Economic Research Service Page 9 of 20

14 Exhibit shows Missouri soybean cash receipts in real dollars, assuming that 1980 is the base year. In real dollars, Missouri soybean cash receipts were high during the early 1980s, but then, cash receipts in real dollars trended downward for several years. Since the mid 2000s, Missouri soybean cash receipts in real dollars have trended upward. Exhibit Missouri Soybean Cash Receipts in Real 1980 Dollars $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Thousand Dollars Source: USDA Economic Research Service and Value Ag, LLC Based on value, soybeans ranked as the leading Missouri commodity for cash receipts on average between 2010 and Soybean cash receipts represented nearly one quarter of all Missouri commodity cash receipts on average during the three year period. Corn, cattle and calves, hogs and turkeys in that order were the next most significant contributors to Missouri's total farm cash receipts based on a 2010 to 2012 annual average, according to the USDA Economic Research Service. See Exhibit Exhibit Missouri Leading Commodities for Cash Receipts, 2010 to 2012 Average Commodity Value of Receipts Percent of State Total Commodity Receipts Percent of U.S. Value for Commodity 1. Soybeans $2,314,220, % 6.2% 2. Corn $1,810,725, % 3.0% 3. Cattle and calves $1,636,048, % 2.7% 4. Hogs $915,486, % 4.4% 5. Turkeys $387,400, % 7.9% Source: USDA Economic Research Service Page 10 of 20

15 2.3 Farm Level Sector Economic Exhibit portrays annual estimated economic contribution generated by Missouri soybean farmer revenue between 2010 and Total economic output is estimated to be $4.23 billion. Farmers add an estimated $1.7 billion in value per year. This contribution led to earnings increasing by an estimated $ million for all households employed by all industries each year. Exhibit Annual Estimated Economic of Missouri Soybean Farmer Revenue Subsector Total Output Total Earnings Total Value Added Farm cash receipts $4,236,873,976 $666,495,360 $1,706,505,828 Page 11 of 20

16 Chapter 3: Storage Sector 3.1 Storage Facilities and Capacity Elevators provide storage space to farmers who do not have the ability to store grain on their farms or those who lack sufficient storage capacity on their farms. In years when production is high, producers may use off farm storage if they lack adequate on farm storage space. Missouri is home to many grain elevators and feed mills, which offer off farm storage space to Missouri crop producers. Exhibit pinpoints Missouri grain elevator locations. Exhibit Locations of Missouri Grain Elevators, 2012 Source: MDA Grain Dealer Database Exhibit illustrates the storage capacity of grain elevators in Missouri. Significant storage is available in pockets throughout Missouri. Page 12 of 20

17 Exhibit Capacity (Bushels) of Missouri Grain Elevators, ,000 50, , ,000-2,000,000 2,000,000-14,000,000 No Data Source: MDA Grain Dealer Database * Counties without contributing data are not shaded. 3.2 Soybean Stocks In recent years, Missouri soybean stocks have been more likely to be stored on farm than off farm. Off farm facilities, however, still store a good share of total Dec. 1 soybean stocks. Exhibit shows historical changes in Dec. 1 on and off farm soybean stocks. Page 13 of 20

18 Exhibit Missouri Soybean Stocks on Dec. 1, 1980, to Dec. 1, , , ,000 Thousand Bushels 120, ,000 80,000 60,000 40,000 20, On farm stocks Source: USDA National Agricultural Statistics Service Off farm stocks 3.3 Off Farm Storage Sector Economic Storage is one sector that supports the Missouri soybean industry. Exhibit presents the value added by firms that store soybeans off of the farm. Between 2010 and 2012, commercial storage annually contributed an estimated $12.62 million in value added economic impact. Exhibit Annual Estimated Economic of Off Farm Storage Sector Subsector Total Value Added Commercial storage cash receipts $12,628,144 Page 14 of 20

19 Chapter 4: Transportation Sector 4.1 Transportation Trends To ship soybeans domestically, the supply chain tends to favor truck transportation. See Exhibit Much smaller soybean volumes rely on rail and barge for domestic transportation. For exports, barge and rail are the predominant transportation systems used. For all soybeans, truck transportation is most popular. Exhibit U.S. Soybean Modal Shares Exports Domestic All Soybeans Rail % 14% 21% Five year average* 42% 12% 24% Barge % 2% 22% Five year average* 46% 2% 20% Truck % 84% 56% Five year average* 13% 86% 55% * Five year average computed as average from 2007 to Source: USDA Agricultural Marketing Service 4.2 Off Farm Transportation Sector Economic Trucking is another sector that supports the Missouri soybean industry. Exhibit presents the estimated annual value that truck transportation added to soybeans grown in Missouri between 2010 and The annual value added amount is estimated to be $30.59 million. Exhibit Annual Estimated Economic of Off Farm Trucking Sector Subsector Total Value Added Truck transportation receipts $30,590,825 Page 15 of 20

20 Chapter 5: Processing Sector 5.1 Soybean Processing Soybean processing involves crushing soybeans into meal, oil and hulls. According to soybean quality data from the U.S. Soybean Export Council and historical USDA Economic Research Service soybean processed value data, a typical bushel of Missouri soybeans is estimated to yield pounds of meal, 11.4 pounds of oil and 3.49 pounds of hulls. Per pound, soybean oil is more valuable than meal or hulls. For the 2010 to 2012 marketing years, central Illinois soy product prices averaged $0.51 per pound for soybean oil, $0.20 per pound for soybean meal and $0.09 per pound for soybean hulls, according to the USDA Agricultural Marketing Service. 5.2 Economic of Processing Missouri Soybeans Missouri produced soybeans that aren t exported internationally are crushed into meal, oil and hulls. Exhibit presents the economic impact that s estimated to have been generated annually by crushing all Missouri soybeans that aren t exported. Between 2010 and 2012, processing Missouri produced soybeans annually created $7.01 billion in total output economic impact and $1.94 billion in total value added economic impact. Exhibit Annual Estimated Economic of Processing Missouri Soybeans Subsector Total Output Page 16 of 20 Total Earnings Total Value Added Soybean meal $4,150,802,360 $617,949,083 $1,149,959,261 Soybean oil $2,710,689,219 $403,552,801 $750,983,039 Soybean hulls $152,647,827 $22,725,386 $42,290,325 Total $7,014,139,406 $1,044,227,270 $1,943,232, A Economic of Processing Soybeans in Missouri An estimated 60.5 percent of Missouri produced soybeans crushed domestically were processed in Missouri from 2010 to This processing annually generated an estimated $4.24 billion in output economic impact and $1.17 billion in valueadded economic impact. Exhibit 5.2A.1 Economic of Processing Soybeans in Missouri Subsector Total Output Total Earnings Total Value Added Soybean meal $2,511,939,367 $373,963,994 $695,920,376 Soybean oil $1,640,426,687 $244,217,883 $454,472,099 Soybean hulls $92,377,823 $13,752,712 $25,592,819 Total $4,244,743,877 $631,934,590 $1,175,985,293

21 Chapter 6: Biodiesel Sector 6.1 Biodiesel Production Between 2010 and 2012, Missouri produced an estimated million gallons of biodiesel using soybean oil, based on Missouri Department of Agriculture data. The average assumed B100 price is $4.64 per gallon, according to The Jacobsen. Given that producing a gallon of biodiesel requires 7.7 pounds of soybean oil, Missouri biodiesel production required an estimated million gallons of soybean oil per year between 2010 and 2012, according to the Food and Policy Research Institute at the University of Missouri. Biodiesel production also yields glycerin. Producing one gallon of biodiesel yields one pound of glycerin, according to the Missouri Soybean Association. Crude glycerin may be processed further into refined glycerin. Between 2010 and 2012, crude glycerin price averaged $0.10 per pound, and refined glycerin price averaged $0.40 per pound, according to The Jacobsen. 6.2 Biodiesel Sector Economic Exhibit outlines the economic contribution that biodiesel and glycerin production makes in Missouri. Missouri biodiesel production added an estimated $ million in value per year between 2010 and Glycerin production, both crude and refined glycerin, annually created an estimated $16.53 million in value added economic impact between 2010 and Exhibit Annual Estimated Economic of Biodiesel Sector Subsector Total Value Added Biodiesel $312,180,221 Glycerin $16,537,833 Total $328,718,054 Page 17 of 20

22 Chapter 7: Exports Sector 7.1 Soybean and Soybean Product Exports According to USDA Foreign Agricultural Service data, annual Missouri soybean product exports are estimated to have averaged 9.96 million bushels of soybeans, million pounds of soybean meal and million pounds of soybean oil between 2010 and Exports Sector Economic Exporting soybeans is another activity that adds value to Missouri grown soybeans. Exhibit describes the annual estimated value added economic impact generated by exporting Missouri soybeans, soybean meal and soybean oil between 2010 and Exporting whole soybeans added an estimated $3.08 million in value per year. Soybean meal exporting and soybean oil exporting contributed an estimated $4.45 million and $1.81 million, respectively, in value added economic impact during each year of the three year period. All soybean exports annually contributed an estimated $9.35 million in value added economic impact on average in 2010, 2011 and Exhibit Annual Estimated Economic of Soy Products Exports Sector Subsector Total Value Added Soybeans $3,083,180 Soybean meal $4,458,974 Soybean oil $1,811,169 Total $9,353,323 Page 18 of 20

23 Methodology Data used to compute the economic impacts originated from sources including USDA Economic Research Service, USDA National Agricultural Statistics Service, USDA Agricultural Marketing Service, University of Missouri Extension, the Missouri Soybean Association, U.S. Soybean Export Council, the Missouri Department of Agriculture, the Food and Policy Research Institute at the University of Missouri, The Jacobsen and USDA Foreign Agricultural Service. Prices used in the computations are for locations in Missouri or near Missouri. When possible, data were collected from 2010 to 2012 marketing years. Soybean marketing years start in September and end in August to 2012 data averages were used in computations to represent the general state of the soybean industry s economic contribution. Using an average avoids a single year s data skewing the economic impact estimations. To compute economic impact values, industry output and economic multipliers were used. Economic multipliers estimate the amount of economic activity that occurs due to a $1 change in an industry s output. The economic multipliers used in this report were obtained from the U.S. Bureau of Economic Analysis and are multipliers produced by the Regional Input Output Modeling System, or RIMS II, based on a national benchmark input output table from 2002 and regional data from RIMS II generates multipliers that can be used to estimate the impact [of a] final demand change on total gross output, earnings, employment, and value added, according to the Bureau of Economic Analysis. Multipliers used for this report are benchmark, type I multipliers, which consider direct and indirect economic effects, not induced economic effects. The value added multiplier applied to the exports sector was downward adjusted to reflect that some of the value added occurs outside of Missouri. As many as three economic impacts output, earnings and value added are calculated for industries and sectors involved in Missouri soybean production. Value added multipliers are exclusively used to quantify the economic contribution made by industries that support the Missouri soybean industry: storage, transportation, biodiesel and exports. Output multipliers measure the total dollar change in output that occurs in all industries for each additional dollar of output delivered to final demand by the industry corresponding to the entry. Earnings multipliers measure the total dollar change in earnings of households employed in all industries for each additional dollar of output delivered to final demand by the industry corresponding to the entry. Value added multipliers measure the total dollar change in value added that occurs in all industries for each additional dollar of output delivered to final demand by the industry corresponding to the entry, according to the Bureau of Economic Analysis. Exhibit M1 presents the industries represented in the economic impact calculations. These industries determined the multiplier values used in the economic impact computations. Page 19 of 20

24 Exhibit M1 Industries Represented by Economic Multipliers Seed Fertilizer Chemicals Custom operations Sector Fuel, lube and electricity Repairs Interest on operating capital Hired labor Opportunity cost of unpaid labor Capital recovery of machinery and equipment Opportunity cost of land (land rental) Taxes and insurance General farm overhead Soybean farm cash receipts Commercial storage cash receipts Semi truck shipments Soybean meal processing Soybean oil processing Soybean hulls processing Biodiesel Crude and refined glycerin Exports for whole soybeans Exports for soybean meal Exports for soybean oil Industry Classification "Wholesale trade" "Fertilizer manufacturing" "Pesticides and other ag chemical manufacturing" "Support activities for agriculture and forestry" Average of "petroleum refineries," "petroleum lubricating oil and grease manufacturing" and "electric power generation, transmission and distribution" "Commercial and industrial machinery and equipment repair and mainetenance" "Monetary authorities and depository credit intermediation" "Support activities for agriculture and forestry" "Support activities for agriculture and forestry" "Farm machinery and equipment manufacturing" "Crop and animal production" industry aggregation Average of "other government enterprises" and "insurance agencies, brokerages, related activities" "Support activities for agriculture and forestry" "Oilseed and grain farming" "Warehousing and storage" "Truck transportation" "Soybean and other oilseed processing" "Soybean and other oilseed processing" "Soybean and other oilseed processing" "Other basic organic chemical manufacturing" "All other food manufacturing" "Securities, commodity contracts, investments, related activities" "Securities, commodity contracts, investments, related activities" "Securities, commodity contracts, investments, related activities" Page 20 of 20

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

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

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

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

Soybean Supply and Demand Forecast

Soybean Supply and Demand Forecast Soybean Supply and Demand Forecast U.S. soybean planted acreage is expected to increase 11.5 million acres over the forecast period. U.S. soybean yields are expected to increase 7 bushels per acre or an

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

Corn Transportation Profile

Corn Transportation Profile Corn Transportation Profile AMS Transportation and Marketing Programs August 2014 Marina R. Denicoff Marvin E. Prater Pierre Bahizi Executive Summary America s farmers depend on transportation as the critical

More information

Cash Flow Analysis Worksheets

Cash Flow Analysis Worksheets Cash Flow Analysis Worksheets Trent Teegerstrom Introduction This article describes the cash budget and analysis worksheets available for downloading at the Department of Agricultural and Resource Economics

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

The Economic Impact of the Biodiesel Industry on the U.S. Economy

The Economic Impact of the Biodiesel Industry on the U.S. Economy The Economic Impact of the Biodiesel Industry on the U.S. Economy A study for: National Biodiesel Board November 2013 Research and analysis to inform your business decisions LMC International Oxford 4

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

Fertilizer is a world market commodity, which means that supply

Fertilizer is a world market commodity, which means that supply Supply & demand, Energy Drive Global fertilizer prices The Fertilizer Institute Nourish, Replenish, Grow Fertilizer is a world market commodity necessary for the production of food, feed, fuel fiber. &

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

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

Farmland Lease Analysis: Program Overview. Navigating the Farmland Lease Analysis program

Farmland Lease Analysis: Program Overview. Navigating the Farmland Lease Analysis program Farmland Lease Analysis: Program Overview The farmland lease analysis program is used to aid tenants and landlords in determining the returns and risks from different farmland leases. The program offers

More information

The 2010 Economic Impact of the Nebraska Agricultural Production Complex

The 2010 Economic Impact of the Nebraska Agricultural Production Complex Department of Agricultural Economics June 2012 Report No.192 The 2010 Economic Impact of the Nebraska Agricultural Production Complex by Eric Thompson Bruce Johnson Anil Giri The University of Nebraska

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

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

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

Ontario Agri Business Association Economic Impact Analysis Executive Summary

Ontario Agri Business Association Economic Impact Analysis Executive Summary Ontario Agri Business Association Economic Impact Analysis Executive Summary Prepared by: MNP LLP October, 2013 INTRODUCTION The Ontario Agri Business Association (OABA) commissioned MNP LLP (MNP) to carry

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

Grains and Oilseeds Outlook

Grains and Oilseeds Outlook United States Department of Agriculture Grains and Oilseeds Outlook Friday, February 26, 2016 www.usda.gov/oce/forum Agricultural Outlook Forum 2016 Released: Friday, February 26, 2016 GRAINS AND OILSEEDS

More information

Forage Economics, page2. Production Costs

Forage Economics, page2. Production Costs Forage Economics Geoffrey A. Benson, Professor Emeritus, Department of Agricultural and Resource Economics, and James T. Green, Jr., Professor Emeritus, Department of Crop Science, NC State University

More information

Wheat Transportation Profile

Wheat Transportation Profile Wheat Transportation Profile Agricultural Marketing Service / Transportation and Marketing Programs November 2014 Marina R. Denicoff Marvin E. Prater Pierre Bahizi Executive Summary America s farmers depend

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

Estimating Cash Rental Rates for Farmland

Estimating Cash Rental Rates for Farmland Estimating Cash Rental Rates for Farmland Tenant operators farm more than half of the crop land in Iowa. Moreover, nearly 70 percent of the rented crop land is operated under a cash lease. Cash leases

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

University of Illinois CROP BUDGETS. Consumer Economics

University of Illinois CROP BUDGETS. Consumer Economics CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2013 Department of Agricultural and Consumer Economics University of Illinois July 2013 Introduction

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

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

Agriculture (Ag) Trade Finance. Agriculture / Commodity Trade Finance

Agriculture (Ag) Trade Finance. Agriculture / Commodity Trade Finance Agriculture (Ag) Trade Finance Agriculture / Commodity Trade Finance Table of Contents Select U.S. Ag Export Statistics Need For Ag Trade Finance Overview of Ag Trade Finance Solutions Ag Trade Finance

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

CROP BUDGETS, ILLINOIS, 2014

CROP BUDGETS, ILLINOIS, 2014 CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2014 Department of Agricultural and Consumer Economics University of Illinois June 2014 Introduction

More information

Regional Economic Impact Analysis

Regional Economic Impact Analysis Section III: Applying Knowledge Regional Economic Impact Analysis Summary In this activity, teachers present a lecture related to assessing regional economic impacts and students use this knowledge to

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

Ethanol Usage Projections & Corn Balance Sheet (mil. bu.)

Ethanol Usage Projections & Corn Balance Sheet (mil. bu.) Ethanol Usage Projections & Corn Balance Sheet (mil. bu.) Updated 12/21/215 Historic Est. Prelim. Proj. 216-17 Year: (production/marketing) 1/ 211-12 212-13 213-14 214-15 215-16 Low Med. 4 High Yield (bu.

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

Using Enterprise Budgets in Farm Financial Planning

Using Enterprise Budgets in Farm Financial Planning Oklahoma Cooperative Extension Service AGEC-243 Using Enterprise Budgets in Farm Financial Planning Damona Doye Regents Professor and Extension Economist Roger Sahs Extension Assistant Oklahoma Cooperative

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

Grain Stocks Estimates: Can Anything Explain the Market Surprises of Recent Years? Scott H. Irwin

Grain Stocks Estimates: Can Anything Explain the Market Surprises of Recent Years? Scott H. Irwin Grain Stocks Estimates: Can Anything Explain the Market Surprises of Recent Years? Scott H. Irwin http://nationalhogfarmer.com/weekly-preview/1004-corn-controversies-hog-market http://online.wsj.com/news/articles/sb10001424052970203752604576641561657796544

More information

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

Iowa s average industrial electricity cost per kwh is 24 percent below the U.S. average.

Iowa s average industrial electricity cost per kwh is 24 percent below the U.S. average. Iowa s business climate has never been more favorable. Iowa has the lowest cost of doing business in the nation, is perfectly positioned with its central location and has a diversified and robust economy.

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

Crop Input and Technology Decisions: Risk Management. Gary Schnitkey University of Illinois

Crop Input and Technology Decisions: Risk Management. Gary Schnitkey University of Illinois Crop Input and Technology Decisions: Risk Management Gary Schnitkey University of Illinois Topics 1. General economic principles related to input choice 2. Corn versus soybean choice 3. Crop insurance

More information

Institute of Ag Professionals

Institute of Ag Professionals Institute of Ag Professionals Proceedings of the 2014 Crop Pest Management Shortcourse & Minnesota Crop Production Retailers Association Trade Show www.extension.umn.edu/agprofessionals Do not reproduce

More information

Technical/Business Planning: For Small-Scale Oilseed Processing and Biodiesel Production

Technical/Business Planning: For Small-Scale Oilseed Processing and Biodiesel Production Agricultural Marketing Resource Center Value-added Agriculture Profile Iowa State University November 2008 Technical/Business Planning: For Small-Scale Oilseed Processing and Biodiesel Production By Gary

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

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

Agricultural Production and Research in Heilongjiang Province, China. Jiang Enchen. Professor, Department of Agricultural Engineering, Northeast

Agricultural Production and Research in Heilongjiang Province, China. Jiang Enchen. Professor, Department of Agricultural Engineering, Northeast 1 Agricultural Production and Research in Heilongjiang Province, China Jiang Enchen Professor, Department of Agricultural Engineering, Northeast Agricultural University, Harbin, China. Post code: 150030

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

Chapter Five: Risk Management and Commodity Markets

Chapter Five: Risk Management and Commodity Markets Chapter Five: Risk Management and Commodity Markets All business firms face risk; agricultural businesses more than most. Temperature and precipitation are largely beyond anyone s control, yet these factors

More information

All Approved Insurance Providers All Risk Management Agency Field Offices All Other Interested Parties

All Approved Insurance Providers All Risk Management Agency Field Offices All Other Interested Parties United States Department of Agriculture Farm and Foreign Agricultural Services Risk Management Agency Beacon Facility Mail Stop 0801 P.O. Box 419205 Kansas City, MO 64141-6205 March 3, 2014 INFORMATIONAL

More information

Internal Revenue Service

Internal Revenue Service Internal Revenue Service Number: 201120008 Release Date: 5/20/2011 Index Number: 1382.00-00, 199.06-00 ------------------- ------------------------ ---------------------------- -------------------------------

More information

Calculating Your Milk Production Costs and Using the Results to Manage Your Expenses

Calculating Your Milk Production Costs and Using the Results to Manage Your Expenses Calculating Your Milk Production Costs and Using the Results to Manage Your Expenses by Gary G. Frank 1 Introduction Dairy farms producing milk have numerous sources of income: milk, cull cows, calves,

More information

Agriculture & Business Management Notes...

Agriculture & Business Management Notes... Agriculture & Business Management Notes... Farm Machinery & Equipment -- Buy, Lease or Custom Hire Quick Notes... Selecting the best method to acquire machinery services presents a complex economic problem.

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

WASHINGTON, D.C. 20548

WASHINGTON, D.C. 20548 * I III r 18 ai UNITED STATES GENERAL ACCOUNTING OFFICE. WASHINGTON, D.C. 20548 RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION B-214874 The Honorable E (Kika) de la Garza Chairman, Committee on

More information

FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales

FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales Fall 2015 FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales 1 Introduction Agriculture is always evolving. Average farm sizes

More information

CONTRIBUTION OF THE ETHANOL INDUSTRY TO THE ECONOMY OF THE UNITED STATES IN 2014

CONTRIBUTION OF THE ETHANOL INDUSTRY TO THE ECONOMY OF THE UNITED STATES IN 2014 CONTRIBUTION OF THE ETHANOL INDUSTRY TO THE ECONOMY OF THE UNITED STATES IN 2014 Prepared for the Renewable Fuels Association by John M. Urbanchuk Managing Partner February 2015 The U.S. ethanol industry

More information

Farm Financial Management

Farm Financial Management Farm Financial Management EC920e How to Calculate Machinery Ownership and Operating Costs Burton Pflueger, SDSU Farm Financial Management Specialist Machinery ownership and operating costs represent a

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

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

FCStone Grain Recap January 6, 2016

FCStone Grain Recap January 6, 2016 CORN: CH16 made new contract lows but were unable to hold below unchanged into the close. Weekly ethanol production marginally higher this week, up 4 thbpd to 996. Ethanol stocks built again reaching 21099

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

Leasing vs. Buying Farm Machinery

Leasing vs. Buying Farm Machinery Leasing vs. Buying Farm Machinery Department of Agricultural Economics MF-2953 www.agmanager.info Machinery and equipment expense typically represents a major cost in agricultural production. Purchasing

More information

Using Enterprise Budgets To Make Decisions about Your Farm Richar d Carkner

Using Enterprise Budgets To Make Decisions about Your Farm Richar d Carkner PNW0535 Using Enterprise Budgets To Make Decisions about Your Farm Richar d Carkner A Pacific Northwest Extension Publication Washington Oregon Idaho Enterprise budgets are important decision making tools.

More information

Impact of Crop Insurance and Indemnity Payments on Cash Rent and Land Values. Michael Langemeier Center for Commercial Agriculture Purdue University

Impact of Crop Insurance and Indemnity Payments on Cash Rent and Land Values. Michael Langemeier Center for Commercial Agriculture Purdue University Impact of Crop Insurance and Indemnity Payments on Cash Rent and Land Values Michael Langemeier Center for Commercial Agriculture Purdue University Background The magnitude of the impact of crop insurance

More information

Principles of Hedging with Futures

Principles of Hedging with Futures MARKETING & UTILIZATION Cooperative Extension Service Purdue University West Lafayette, IN 47907 NCH-47 Principles of Hedging with Futures Chris Hurt, Purdue University Robert N. Wisner, Iowa State University

More information

Evaluating Taking Prevented Planting Payments for Corn

Evaluating Taking Prevented Planting Payments for Corn May 30, 2013 Evaluating Taking Prevented Planting Payments for Corn Permalink URL http://farmdocdaily.illinois.edu/2013/05/evaluating-prevented-planting-corn.html Due to continuing wet weather, some farmers

More information

Grains and Oilseeds Outlook

Grains and Oilseeds Outlook United States Department of Agriculture Grains and Oilseeds Outlook Friday, February 20, 2015 www.usda.gov/oce/forum Agricultural Outlook Forum 2015 Released: Friday, February 20, 2015 GRAINS AND OILSEEDS

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

Market will worry about demand later Weekly Corn Review for May 11, 2016 By Bryce Knorr

Market will worry about demand later Weekly Corn Review for May 11, 2016 By Bryce Knorr Market will worry about demand later Weekly Corn Review for May 11, 2016 By Bryce Knorr USDA didn t do much to help the corn market in its May 10 reports other than give soybeans a big lift. That could

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

The Economic Benefits of Oil and Natural Gas Production: An Analysis of Effects on the United States and Major Energy Producing States

The Economic Benefits of Oil and Natural Gas Production: An Analysis of Effects on the United States and Major Energy Producing States August 2014 The Economic Benefits of Oil and Natural Gas Production: An Analysis of Effects on the United States and Major Energy Producing States THE PERRYMAN GROUP 510 N. Valley Mills Dr. Suite 300 Waco,

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

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

Understanding and Using Basis - Grains

Understanding and Using Basis - Grains Understanding and Using Basis - Grains By: E. Dean Baldwin Reviewers: John Ferris and David Holder Edited by Duane Griffith and Stephen Koontz 1 Basis is defined as the amount in cents per bushel a specified

More information

Cost of Production. Cost of Production. Cost of Production!

Cost of Production. Cost of Production. Cost of Production! Cost of Production Versus Cost of Production And then there is, Cost of Production! Ken Bolton and Gary Frank Introduction September 2009 Historically business advisors have encouraged farm managers to

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

How Crop Insurance Works. The Basics

How Crop Insurance Works. The Basics How Crop Insurance Works The Basics Behind the Policy Federal Crop Insurance Corporation Board of Directors Approve Policies Policy changes General direction of program Risk Management Agency Administers

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

A Business Newsletter for Agriculture. Vol. 12, No. 1 www.extension.iastate.edu/agdm. Energy agriculture - where s the nitrogen?

A Business Newsletter for Agriculture. Vol. 12, No. 1 www.extension.iastate.edu/agdm. Energy agriculture - where s the nitrogen? A Business Newsletter for Agriculture Vol. 12, No. 1 www.extension.iastate.edu/agdm November 2007 Energy agriculture - where s the nitrogen? by Don Hofstrand, value-added agriculture specialist, co-director

More information

The Supplementary Insurance Coverage Option: A New Risk Management Tool for Wyoming Producers

The Supplementary Insurance Coverage Option: A New Risk Management Tool for Wyoming Producers The Supplementary Insurance Coverage Option: A New Risk Management Tool for Wyoming Producers Agricultural Marketing Policy Center Linfield Hall P.O. Box 172920 Montana State University Bozeman, MT 59717-2920

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

Basis The Cash Futures Relationship

Basis The Cash Futures Relationship Agricultural Commodity Marketing: Futures, Options, Insurance Basis The Cash Futures Relationship By: Dillon M. Feuz Utah State University Funding and Support Provided by: Fact Sheets Knowing and Managing

More information

CHAPTER 7: CHANGE IN PRIVATE INVENTORIES

CHAPTER 7: CHANGE IN PRIVATE INVENTORIES (Updated: February 2014) Definitions and Concepts Recording in the NIPAs Overview of Source Data and Estimating Methods Benchmark-year estimates Nonbenchmark-year estimates Most-recent-year and current-quarterly

More information

U.S. SOYBEAN SUSTAINABILITY ASSURANCE PROTOCOL

U.S. SOYBEAN SUSTAINABILITY ASSURANCE PROTOCOL US SOYBEAN SUSTAINABILITY ASSURANCE PROTOCOL A Sustainability System That Delivers MARCH 2013 Since 1980, US farmers increased soy production by 96% while using 8% less energy US SOYBEAN SUSTAINABILITY

More information

THE ECONOMIC IMPACTS OF THE PORTS OF LOUISIANA AND THE MARITIME INDUSTRY

THE ECONOMIC IMPACTS OF THE PORTS OF LOUISIANA AND THE MARITIME INDUSTRY THE ECONOMIC IMPACTS OF THE PORTS OF LOUISIANA AND THE MARITIME INDUSTRY Prepared by: TIMOTHY P. RYAN UNIVERSITY OF NEW ORLEANS February, 2001 EXECUTIVE SUMMARY The ports of Louisiana and the maritime

More information

R008-H Renewable Oil Refinery Pilot Plant Construction Principal Investigators: Chad A. Wocken Request for $500,000; Total Project Costs $6,500,000

R008-H Renewable Oil Refinery Pilot Plant Construction Principal Investigators: Chad A. Wocken Request for $500,000; Total Project Costs $6,500,000 R008-H Renewable Oil Refinery Pilot Plant Construction Principal Investigators: Chad A. Wocken Request for $500,000; Total Project Costs $6,500,000 Energy & Environmental Research Center (EERC) Response

More information

Supply & demand outlook for the canola industry

Supply & demand outlook for the canola industry Supply & demand outlook for the canola industry J.P. Gervais Chief Ag Economist March 2015 @jpgervais Canola Canola is one component of the environment for oil producing crops Growth in demand has supported

More information

Vermont On-Farm Oilseed Enterprises: Production Capacity and Breakeven Economics

Vermont On-Farm Oilseed Enterprises: Production Capacity and Breakeven Economics Vermont On-Farm Oilseed Enterprises: Production Capacity and Breakeven Economics Netaka White and Chris Callahan Version Date: July 2013 LOCAL PRODUCTION FOR LOCAL USE VERMONT BIOENERGY INTIATIVE Vermont

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

Abstract. In this paper, we attempt to establish a relationship between oil prices and the supply of

Abstract. In this paper, we attempt to establish a relationship between oil prices and the supply of The Effect of Oil Prices on the Domestic Supply of Corn: An Econometric Analysis Daniel Blanchard, Saloni Sharma, Abbas Raza April 2015 Georgia Institute of Technology Abstract In this paper, we attempt

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

January 7, 2014 1/10/2014. Genuine People. Creative Ideas. Valuable Results. Copyright Kennedy and Coe, LLC 2012 All rights reserved.

January 7, 2014 1/10/2014. Genuine People. Creative Ideas. Valuable Results. Copyright Kennedy and Coe, LLC 2012 All rights reserved. January 7, 2014 1 Alan Grafton University of Mississippi BBA Finance 1992 MBA University of Memphis 2004 United Agri Products 1995 2001 Ag Services of America 2001 2003 AgKnowledge 2003 2013 Kennedy &

More information

Understanding budgets and the budgeting process R. L. Smathers

Understanding budgets and the budgeting process R. L. Smathers ALTERNATIVE AGRICULTURAL ENTERPRISES PRODUCTION, MANAGEMENT & MARKETING Understanding budgets and the budgeting process R. L. Smathers As a business owner, the primary problem you face is a limited supply

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

Grain marketing in the real world

Grain marketing in the real world 2009 GRDC FOR IRRIGATION CROPPERS Grain marketing in the real world Paper prepared by Ron Storey Australian Crop Forecaster Email: ron@cropforecasters.com.au IREC C/- CSIRO Land and Water, Griffith Private

More information

A Comparative Marketing Analysis of Major Agricultural Products in the United States and Argentina

A Comparative Marketing Analysis of Major Agricultural Products in the United States and Argentina A Comparative Marketing Analysis of Major Agricultural Products in the United States and Argentina Argentina Report 2 Sergio H. Lence MATRIC Research Paper 00-MRP 2 June 2000 A Comparative Marketing Analysis

More information

To: Board of Directors September 17, 2001 Federal Crop Insurance Corporation

To: Board of Directors September 17, 2001 Federal Crop Insurance Corporation United States Department of Agriculture Federal Crop Insurance Corporation 1400 Independence Ave, SW Stop 0801 Washington, DC 20250-0801 To: Board of Directors September 17, 2001 Federal Crop Insurance

More information