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Finances

Comparing Corn Marketing Strategies

While there have been numerous studies or articles that have evaluated grain marketing and crop insurance strategies separately, there is limited previous literature that examines these tools simultaneously. The purpose of this study was to identify which strategies contributed to an optimal portfolio of corn marketing strategies for a case farm in southeast Indiana using a downside risk model.

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Benchmarking Crop Machinery Cost and Investment

The continued increase in size of tractors, combines, and other machinery has enabled farms to operate more acres and reduce labor use per acre. However, this increase in machinery size also makes it increasingly important to evaluate the efficient use of machinery.

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Contingency Planning with Cash Flow Shortages

Contingency plans related to how to respond to changes in projected cash flows are also important. Given the expected drop in crop prices this fall, it would be prudent for a farm to examine the sensitivity of their cash flow and repayment capacity to changes in crop prices.

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What Does the Federal Fund Rate Increases at May FOMC Meeting Mean?

During the May 3rd Federal Open Market Committee (FOMC) meeting, the FOMC voting members raised the Federal Funds Rate by another 25 basis points; making the target Federal Funds Rate between 5% and 5.25%. This Federal Reserve has consistently increased the Federal Funds Rate during each FOMC meeting for over a year.

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Trends in General Inflation & Farm Input Prices

Most of the recent discussion involving input price changes in U.S. production agriculture has focused on fertilizer prices, which have declined during the last few months. Other inputs have not necessarily experienced this decline in prices.

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Comparison of Conventional & Organic Crop Rotations (Spreadsheet Tool)

This spreadsheet compares conventional and organic rotations over a ten-year horizon. Specifically, net returns are compared for a conventional corn/soybean rotation, a conventional corn/soybean/wheat rotation, and an organic corn/soybean/wheat rotation.

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2023 Crop Cost and Return Guide

The Purdue Crop Cost and Return Guide offers farmers a resource to project financials for the coming cropping year. These are the March 2023 crop budget estimations for 2023.

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Financial Risk Management & Contingency Planning

Farming is never the same from year to year – sometimes prices are good, net farm income is high, and other times margins are tight. Planning ahead, or contingency planning for financial hardship is important for any farm operation. How to evaluate farm financials, update financial statements, analyze performance, and when borrowing makes sense.

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Thinking Like A CFO for Your Farm Operation

A farm manager who thinks like a CFO can leverage balance sheet and cash flow information to develop accrual income, sources and uses of funds, and owner’s equity statements which can be used to ensure the farm is well positioned for the future. Join Purdue ag economists Michael Langemeier and James Mintert for an episode discussing why you should think like a CFO for your farm operation.

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Cattle Finishing Net Returns Prospects for 2023

This article discussed recent trends in feeding cost of gain, the feeder to fed cattle price ratio, breakeven prices, and cattle finishing net returns. Average cattle finishing losses in 2022 were estimated to be approximately $70 per head.

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