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Finances

International Benchmarks for Soybean Production (2021)

This paper examined yield, gross revenue, and cost for farms in the agri benchmark network from Argentina, Brazil, Russia, the Ukraine, and the United States with soybean enterprise data.  Yield, gross revenue, and cost were substantially higher for the U.S. farms. 

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Impact of Higher Corn Prices on Cattle Finishing Net Returns

Each $0.10 increase in corn price results in an increase in feeding cost of gain of approximately $0.88.  In turn, each $1 increase in feeding cost of gain results in a $5.56 per head decrease in cattle finishing net returns. 

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2021 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 February 2021 crop budget estimations for 2021.

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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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