Farm Management Tour: July 17, 2024

Learn about innovative farm management strategies, new technologies for improving efficiency and productivity, ways to ensure a successful transition of farm operations to the next generation. Join us at the 91st annual Purdue Farm Management Tour and reception honoring the 2024 Indiana Master Farmers in Randolph County (Winchester), Indiana on Wednesday, July 17th.

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Finances

Understanding the Five C’s of Credit

Purdue ag economists Brady Brewer and Michael Langemeier discuss credit underwriting and the criteria financial institutions use to determine eligibility of an applicant in this episode of the Purdue Commercial AgCast.

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Cattle Finishing Net Returns Prospects for 2021

COVID-19 and fluctuating fed cattle and feed prices resulted in another challenging year for cattle finishers. This article updates feeding cost of gain, breakeven prices, and net return estimates for 2020 and provides projections for the first half of 2021.

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December 2020: USDA Farm Income Forecast Update

Purdue agricultural economists James Mintert and Brady Brewer discuss the latest December release of the USDA Farm Income Forecast report. Each year, United States Department of Agriculture (USDA) forecasts farm income in February and then releases additional updates throughout the year as more data becomes available. This Purdue Commercial AgCast episode discusses the latest updates to the 2020 forecast released by USDA on December 2nd.

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Crop Cost and Returns

On this Purdue Commercial AgCast episode, Dr. Michael Langemeier and Dr. Brady Brewer discuss the latest numbers from the Purdue Center for Commercial Agriculture’s decision tool along with tips on how to use this tool to make farm operating decisions.

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Differences in Working Capital among Farms

This article examines differences in the characteristics for farms with a current ratio above and below 2.0.  In addition, we examine the correlation between the current ratio and farm characteristics.

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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.

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Financial 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.

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Examining 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.

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Cattle 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.

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Operating 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.

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