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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.

Farmland Values – Will the Boom Turn Bust Presentation

January 30, 2013

Top Producer Seminar presentation by Dr. Brent Gloy.

Structural Change in Agriculture: Implications for the Farming Sector

January 28, 2013

The global food and agribusiness industry is in the midst of major changes – changes in product characteristics, in worldwide distribution and consumption, in technology, in size and structure of firms in the industry, and in geographic location of production and processing.

Alternative Futures for Agriculture: A Scenario Analysis Exercise

January 25, 2013

The point of scenario analysis is not to predict how the future will unfold, but rather to consider different scenarios that might occur and what the economic environment might look like in these scenarios. Participants then use these situations to consider what strategies their businesses might use were these situations to occur.