Measuring & Analyzing Farm Financial Performance
Compute accrual net farm income, and key financial ratios and repayment capacity measures from Schedule F information and beginning and ending balance sheets.
Read MoreFinancial Management – Statements & Analysis
A series of financial management articles that examine financial statements and financial analysis. Financial management involves the evaluation of liquidity and solvency, financial planning, acquisition and use of financial resources, asset purchases and farm growth, and relationships with agricultural lenders.
Read MoreExamining Trends in Liquidity for a Sample of Kansas Farms
This article examined trends in liquidity for a sample of KFMA farms. Liquidity, measured using the current ratio, has declined substantially since its peak in 2013.
Read MoreOctober Corn & Soybean Outlook Update
Recorded Oct. 9, 2020 | Purdue ag economists Michael Langemeier, Nathanael Thompson and James Mintert provide an updated corn and soybean outlook following release of USDA’s October Crop Production and World Agricultural Supply and Demand (WASDE) reports.
Read MoreCattle Finishing Net Returns in 2020
This article discussed recent trends in feeding cost of gain, the feeder to fed price ratio, breakeven prices, and cattle finishing net returns. Average cattle finishing losses in 2019 were estimated to be approximately $80 per head. Average losses for 2020 are projected to be approximately $85 per head.
Read MoreOperating Profit Margin Benchmarks
This article examines trends in the operating profit margin for a sample of farms over a ten-year period and develops financial performance benchmarks. Specifically, using KFMA whole-farm data for farms with continuous data from 2010 to 2019, the operating profit margin ratio is computed for each farm and year. Also, the operating profit margin ratio and corresponding farm characteristics are compared across financial performance quartiles.
Read MoreAg Barometer Rises as Crop Prices Rally and USDA Announces CFAP 2
Purdue ag economists James Mintert and Michael Langemeier review the results and give some insight into the September 2020 Ag…
Read MoreEvaluating New Ventures and Enterprises
Several factors need to be considered when evaluating new ventures and enterprises. In addition to determining how a new venture or enterprise fits into the current operation, it is important to evaluate expected returns and risk, the cost and ease of entry and exit, and managerial requirements and complexity.
Read MoreUnderstanding USDA Farm Income Forecasts
USDA forecasts farm income in February and then releases four additional updates throughout the year as more data becomes available. In this episode of the Purdue Commercial AgCast, Purdue agricultural economists Todd Kuethe and Brady Brewer discuss the USDA Farm Income Forecast, which was updated on September 2, and the accuracy and bias of these forecasts along with how to interpret the adjustments.
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