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
Metrics that can be used to measure farm profitability include earnings before interest, taxes, and amortization (EBITA), net farm income, the operating profit margin ratio, return on assets, and return on equity. Each of these measures has its advantages and disadvantages. This article examines trends in net farm income and return on assets and its components for the U.S. farm sector.
Read MoreDue to weather and rapidly changing market conditions from year to year, farm income can vary substantially from one year to the next. For many producers, 2021 and 2022 have been relatively strong net farm income years. Therefore, tax planning strategies will be relatively important. This article briefly discusses some common tax planning strategies.
Read MoreThe balance sheet for the U.S. farm sector represents a marked improvement compared to the balance sheet in 2020. Both liquidity and solvency for the U.S. farm sector are relatively strong.
Read MoreBreakeven prices are helpful when making crop decisions and when marketing crops. Without breakeven price information, it is very difficult for a producer to gauge or evaluate market opportunities as crop prices change or make crop rotation decisions. Looking ahead to 2023, breakeven prices for corn and soybeans are 5-7% higher than those experienced in 2022.
Read MorePurdue agricultural economists Brady Brewer and Michael Langemeier discuss updated inflation numbers and interest rates and the impacts on agriculture in this episode of Purdue Commercial AgCast. Farm inputs like fertilizer, diesel, machinery and building supplies are discussed, as well as capital investments like land and real estate, and how the cost of debt is affecting budgets and operating interest rates.
Read MoreOn this episode Purdue ag economist Brady Brewer hosts a discussion that will provide you with 10 tips for better communication within your farm business. Joining Dr. Brewer is Family Business Management Specialist Renee Wiatt, Extension Area XI Director Kelly Heckaman, and Fayette County ANR Educator Heather Caldwell.
Read MoreObtaining control of land through leasing has a long history in the United States. Leases on agricultural land are strongly influenced by local custom and tradition. However, in most areas, landowners and operators can choose from several types of lease arrangements. With crop share arrangements, crop production and often government payments and crop insurance indemnity payments are shared between the landowner and operator. These arrangements also involve the sharing of at least a portion of crop expenses. Fixed cash rent arrangements, as the name implies, provide landowners with a fixed payment per year. Flexible cash lease arrangements provide a base cash rent plus a bonus which typically represents a share of gross revenue in excess of a certain base value. Each leasing arrangement has advantages and disadvantages.
Read MoreFarm Success and Technology Adoption slidedeck presentation by Michael Langemeier given in Rosario Argentina on August 11, 2022.
Read MoreDue to continued increases in demand for certified organic grains, crop farmers that have transitioned from conventional to certified organic grains report higher net returns per acre. This article uses FINBIN data from 2017 to 2021 to update comparisons of crop yields, gross revenue, total expense, and net returns for conventional and organic alfalfa, corn, oats, soybeans, and winter wheat.
Read MoreOn this episode Purdue ag economists Brady Brewer and Michael Langemeier discuss inflation and interest rates in the agricultural sector as well as the agricultural credit markets. Gain more insight on interest rates, inflation and more!
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