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Tag Archives: farm economics

LEASING GLUT

Farmers are increasingly leasing tractors and other equipment but it’s raising the risk of prolonging an equipment glut. Today’s Wall Street Journal looks at farm implement dealers and the slowdown they’re facing.

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INTEREST COSTS

If net farm income trends lower and farm debt levels trends higher into 2016, interest expense may account for an even larger share of total earnings, Ag economist David Widmar says. He says these are trends that will likely make the financial situation in agriculture less comfortable than it has been for some time.

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CASH MORE IMPORTANT

Farmdoc Daily reports commodity program and Crop Insurance payments are a lower percentage of crop revenue since 2006 as compared to 2000 through 2005. Farmdoc economists say this lower percentage holds two implications. First, crop revenue has become more important as a revenue source. The second relates to a popular benchmark of appropriate cash rents…. read more

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2016 FARM BUDGETS

U of I’s Gary Schnitkey says projected 2016 crop returns show a continuing need to adjust to lower returns. He says cash flows will need to be reduced even if corn prices are above $4.00 per bushel

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FARM-SECTOR EARNINGS PLUNGE

Earnings for workers in the U.S. farm sector plunged in the early months of 2015, with all but 9 states posting declines, the Commerce Department said Monday. Farm earnings fell 22.4% in the first quarter, which Commerce attributed primarily to lower livestock output. In Iowa, Kansas, Nebraska and South Dakota, farmers have grappled with severe… read more

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COST PRESSURES

Farmland returns are projected to be lower in 2015 than in recent years. If prices do not rebound significantly, there will be pressures to reduce cash flows for the 2016 year. Farmers will need to reduce one or more of the following costs: fertilizer, seed, chemical, and cash rents, according to U of I farm management… read more

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FARM INCOME

In 2012, nearly 70% of farm sole proprietors reported a farm loss, totaling almost $24 billion. The remaining farms reported profits totaling $18.2 billion in 2012, the latest year for which complete data are available from the U.S. Internal Revenue Service.

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FARMDOC DAILY HITS 1,000 POSTS

Four years ago, a crazy idea was hatched: post an original article that analyzed an aspect of Corn Belt farm economics every day. Today, University of Illinois agricultural economist Darrel Good had the honor of posting the 1,000th article on farmdoc daily. The daily economics blog-style website was the brainchild of U of I agricultural economist… read more

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MAKING A PROFIT

A new study by Farmdoc looks at profitability of Illinois farms in a new way.  The study looks at gross farm receipts divided by production costs. Both the average and 2013 data show that Production/$1 of Cost increases as farm size increases but does show tendencies of leveling out as farm size in acres increases.

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DEERE OUTLOOK

Deere anticipates a > expected fall in equipment sales for the fiscal year amid sluggish conditions in the farming sector. The firm says its aggressive cost cutting, its broad lineup of equipment and slamming the brakes on production should help it navigate through the current slump.

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