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Farm size and growth are often discussed in the context of economies of size. Previous research suggests that the average cost curve in production agriculture is downward sloping or at a minimum L-shaped (Langemeier, 2013). Thus, in general, larger businesses have lower costs of production […]
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USDA recently announced that they project net farm income to decline for a third straight year in 2016, and is expected to be the lowest since 2002 (USDA-ERS, 2016). Government payments are to rise to $13.9 billion which if realized would represent approximately 25 percent of net farm income […]
READ MOREFinancial risk is incurred when a farm borrows money to purchase assets or operate the farm. Financial risk is caused by uncertainty pertaining to interest rates, lending relationships, changes in market value of assets used as collateral, and cash flow used to repay debt. Financial risk is […]
READ MOREFinancial risk is incurred when a farm borrows money to purchase assets or operate the farm. Financial risk is caused by uncertainty pertaining to interest rates, lending relationships, changes in market value of assets used as collateral, and cash flow used to repay debt. Financial risk is often […]
READ MOREThere are numerous sources of risk in production agriculture. Sources of risk can be summarized using five broad categories: production and technical, price and market, financial, legal, and personal. In this article, managing financial risk through the use of credit reserves will be briefly discussed […]
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