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Depreciation and Expensing Options

December 1, 2013

This article reviews depreciation and expensing options for recent years and options currently available for 2013 and 2014. The discussion emphasizes changes affecting agricultural producers and farm businesses.

Crop Insurance Indemnities: Some Tax Considerations for 2013

December 1, 2013

Corn and soybean yields for most Indiana producers are higher in 2013 than they were in 2012, but crop prices are lower. A number of producers may also have crop insurance indemnities from 2012 crops which have not yet been reported as income.

The Business Climate for Agriculture: Positioning for Turbulent Times

September 8, 2013

A key theme underlying the discussions and presentations at the 2013 Kansas City Federal Reserve Bank Agricultural Symposium — the Shifting Nexus of Global Agriculture — was the uncertainty the industry is facing in many dimensions

Determining a Value for Corn Silage

April 8, 2013

Pricing silage crops can be much more challenging than pricing grains, since they are not sold as routinely and, therefore, do not have a readily known market price. The following is a brief discussion of some methods for determining prices for various types of silage.

Farmland Price to Earnings Ratios for Indiana

March 28, 2013

This paper explores trends in farmland values, cash rents, interest rates, the farmland price to cash rent (P/Rent) multiple, and the price to earnings (P/E) ratio on stocks. The P/Rent multiple averaged 17.6 from 1960 to 2012 and ranged from 11.1 in 1986 to 29.5 in 2012.

Agricultural Price and Land Values: Insights from Participants in the “Financial Health of Farming and Land Values” Conference

March 27, 2013

Several agricultural economists associated with CCA have recently sought to address questions surrounding farmland values and related investment decisions. Soaring Corn Belt farmland values have also been on the minds of farmers, agricultural industry professionals and investors.

Farm Managers and Rural Appraisers’ Assessment of Indiana’s Farmland Market

March 6, 2013

Even with a severe drought during the summer of 2012, the Indiana land market continues to move higher. The February 2013 issue of the AgLetter, a Federal Reserve Bank of Chicago newsletter, indicated that farmland values in the Seventh District (Iowa, and parts of Illinois, Indiana, Michigan, and Wisconsin) increased 16% from January 1, 2012 to January 1, 2013.

Rental Agreements for Farm Buildings and Livestock Facilities

February 8, 2013

Farm buildings and livestock facilities often outlast their owner’s need for them, but are still usable. Other operators want the services of certain types of farm buildings but are not in a position to invest in new facilities. Both parties can benefit by developing a lease arrangement.

Beef Cow Rental Arrangements for Your Farm

February 8, 2013

Managing risk is required for many farm enterprises to be profitable and sustainable. Leasing assets, rather than purchasing them, is a form of risk management as it typically requires less capital. Leasing or sharing arrangements between farm operators and property owners have long been used to acquire control of land.

Strategies for Success in Turbulent Times: Ten Strategic Initiatives

January 31, 2013

Farm businesses are facing increasing complexity and uncertainty in today’s turbulent business climate. Farms continue to be family based businesses and are modest size compared too much of the industrial sector, but an increasing number of farms are becoming multi-million dollar gross sales businesses with a sizeable work-force and rapidly increasing financial capital and land resources.