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General Farm Management & Strategy
Farm buildings and livestock facilities often outlast their owner’s need for them, but can still provide usable service. Farm operators and livestock producers may be able to make use of certain types of farm buildings but are not in a position to invest in new facilities.
This article is one of a series of financial management articles that will examine financial statements and financial analysis. There are numerous sources of risk in production agriculture.
This University of Missouri equipment lease analyzer is designed to answer 2 questions regarding leasing farm equipment. First it seeks to determine whether a lease or a purchase is more profitable and feasible from a cash flow perspective. Second it helps decide the annual contract hours for a lease.
The 2014 Farm Bill has completely overhauled the U.S. crop commodity payment system. Direct payment, counter-cyclical payment, and ACRE (average crop revenue election) payment programs have all been eliminated.
The ARC-IC calculation depends on three measures of revenue defined on the first page. The ARC-IC payment is unique in the current farm bill for its use of planted acreage in determining the level of payment received. The ARC-IC is also unique in that it only allows for payments on 65% of a farm’s base acres.
Direct payments are to be eliminated from the new farm bill, an action that has near unanimous support among U.S. lawmakers.
Agricultural Risk Coverage-County Option (ARC-CO) is a new program in the 2014 Farm Bill. ARC-CO payments are made when the average county revenue for a commodity falls below that county’s revenue guarantee per acre.