By: Ben Brown, Department of Agricultural, Environmental, and Development Economics- The Ohio State University, Previously on the Ohio Ag Manager.
Click Here to Access the Entire Article With Figures/Tables
The Agricultural Adjustment Act of 2014 ushered in two programs to the safety net for producers in Ohio and across the country: Agricultural Risk Coverage (ARC0-CO) and Price Loss Coverage (PLC). Both programs serve as shallow loss programs protecting against large variations in revenue and price respectively. The two programs operate differently and should not be compared as substitute programs. However, producers were allowed a one time choice at the beginning of the farm bill to enroll each commodity in either ARC-CO or PLC. Participation rates in Ohio largely followed the national participation rates for corn and soybeans but differed for wheat. The national participation rate for wheat favored PLC, whereas in Ohio, producers favored heavily toward ARC-CO. Nonetheless there are producers in Ohio that are enrolled in ARC-CO and PLC for corn, soybeans, and wheat. This report looks toward the end of the marketing year to estimate county level payments for ARC-CO and PLC in Ohio. As a reminder, payments finalized in October 2018 will be for program year 2017. This information will be important for producers and lenders wishing to estimate their autumn cash flow. Continue reading
If you ask a group of my friends to describe me using a handful of words, you will probably get a variety of answers, some of which I am proud of, and some others not fit for print (all in good humor though). One description that would probably come up a few times, of which I am generally proud of, is the word frugal. Frugal means to be economical with regards to money, or as I like to say “thrifty”. Growing up on a small beef and hay operation in the foothills of Appalachia, we didn’t have much of a choice other than to be thrifty when it came to farming. Still to this day the only new piece of farm equipment my father has ever owned was a four-basket hay tedder that he purchased some 15 years ago. In our farming operation low cost and efficiency was the name of the game, especially when it came to raising forage. The goal was to maximize quality and yield at low costs. Continue reading
By: David Widmar, Agricultural Economic Insights
In a post from October, we reviewed fertilizer price trends and noted prices, especially for anhydrous ammonia, had continued lowers. Over the last four years, the relevant budget question has been “how much lower” will fertilizer prices be for the upcoming year. While reduced fertilizer prices in 2018 seemed possible just a few months ago, recent data – based on the USDA’s reported fertilizer prices from Illinois – show fertilizer prices have turned higher for 2018. Continue reading
By Tyne Morgan, US Farm Report
The new tax code is being assessed, and many are calling it a mixed bag for agriculture.
Section 199A is an area that some producers want to see changed, and others want it left untouched.
Sen. Chuck Grassley (R-Ia.) says legislators reached a fix last week, but sources close to the matter say that’s simply not true.
Watch the Farm Journal Report on U.S. Farm Report above.
By: Sara Schafer, Farm Journal’s Pork
This year’s season-average price for corn is forecast at $3.40, which is up 3% from 2017. The season-average price for soybeans in 2018 is forecast at $9.25, a 0.5% drop from 2017, per USDA’s forecast at its 2018 Agricultural Outlook Forum. ( USDA Photo by Preston Keres )
Trade will remain a critical factor, as the decline in U.S. trade share of the last several years is expected to slow, says Robert Johansson, USDA Chief Economist. © USDA
The official start of spring is just a few weeks away. As the planters start rolling and acres are claimed by crops, how will grain prices respond? Continue reading
By: Paul Neiffer, The Farm CPA Blogger
Now that President Donald Trump has signed the Tax Cuts and Jobs Act, it’s time to dig deeper into the details and see how it affects most farmers. As with any major tax change, there will be winners and losers. But overall, I would label this new law as a winner for the ag industry. Continue reading
By: Dianne Shoemaker and Haley Shoemaker, Ohio State University Extension
Which number is closest to your total direct and overhead cost of production per bushel of corn: $3.08, $4.17, or $6.21? Do you know? Forty-two farms completed their 2016 farm business and crop enterprise analysis in 2017. Farm size ranged from 40 to more than 1,900 acres.The four lowest cost producers averaged $3.08 per bushel, the median COP was $4.17, and the four highest cost producers averaged $6.21 per bushel. Continue reading
I owe a big thanks to all of the sponsors and attendees of NW Ohio Crops Day that braved the snowy roads last Friday morning. We had around 70 people in attendance at the Bavarian Haus, not bad for the Henry County agriculture extension meeting in a decade. Based on the program survey, it looks like we may have a similar event in the years to come.
I have spent the past two days at Ohio Pork Congress in Columbus, an annual meeting where the pork industry networks, shares information, and recognizes those who have made significant contributions to promoting pork. This OSU Extension’s own Glen Arnold, field specialist for manure and nutrient management, was recognized for his service to Ohio’s hog farmers. Glen is a national leader in working to extend the manure application season. His research focuses on methods that aid in water quality protection by allowing for manure application on growing crops. Congratulations Glen! Continue reading
By: Nate Birt, Top Producer Managing Editor
Some producers grow organics and non-GMO crops because there’s a local market for them. Others do so in the belief the supply chain of the future will demand it.
Chief Executive Eric Jackson of Minneapolis-based Pipeline Foods thinks farmers should consider adding these crops for a far more practical reason: Producers will make more money in the long run, and they’ll be better diversified, too. Continue reading
By: Eric Richer, OSUE Fulton County & Diane Shoemaker, OSUE Field Specialist, Dairy Production Economics
It is never too late to complete your farm’s balance sheet. The balance sheet is a “snap shot” in time of your farm’s financial position, including what assets you own and how they are financed. The balance sheet is also known as the net worth statement. When completed accurately and in a timely manner, the balance sheet and corresponding ratios are a very valuable tool to evaluate farm financial health. The balance sheet objectively measures farm business growth, liquidity, solvency, and risk-bearing capacity.
Categorizing Balance Sheet Items
The assets and liabilities on the balance sheet (including the financing of the assets) are used to determine the equity, or net worth, of the farm owner. The owner’s equity is used by lenders and insurers to determine a farm business’ value. Calculation of owner’s equity, or net worth is simple. Simply subtract the total liabilities from the total assets:
Assets – Liabilities = Owner’s Equity Continue reading