Farm Industry Trends

  • Working Capital – Lifeblood of a Farm

    Dave Kohl is an ag economist who writes the Road Warrior of Agriculture for Corn and Soybeans Digest.  His columns are usually very insightful regarding economic issues related to agriculture.  Back in March, he had an article regarding working capital being the financial shock absorber for farms and business. Working capital is the excess of […]

    More

  • Foreign Banks Continue to Expand into US Agriculture Lending

    TierOne Bank of Lincoln, Nebraska was closed by the FDIC on June 4, 2010 and then sold to Great Western Bank of Sioux Falls, South Dakato which is a subsidiary of National Australia Bank, a large agricultural lender that has expanded its farm-based lending in the United States and appears ready to continue to expand […]

    More

  • Go West Corn Belt

    As the old saying goes “Go west, young man, go west”, the corn belt will probably be expanding at least 300 miles to the west over the next few years.  As part of the two-day agricultural symposium held in Omaha last week, this was one of the central themes of the meeting. Drought resistant corn […]

    More

  • $6 Billion Cuts in Crop Insurance Program

    As we have discussed in this blog before, the Obama administration is going forward with $6 billion in cuts to the crop insurance program.  This will end up slashing agent commissions that have been as high as 30% of premium.  Under the new plan, these commissions will now be capped at around 18% of premiums […]

    More

  • Food Demand Drives Farmland Prices

    I try to skim a few of the major Mid-West farm cities and the Omaha World-Herald recently had an article on how food demand is driving farmland prices higher.  There was a regional conference in Omaha sponsored by the Federal Reserve of Kansas City.  The meeting brought forth various good nuggets of information about the […]

    More

  • Russia is Going for Dominance in Wheat

    I had a post from about two weeks ago about the USDA predicting that Russia would become a larger exporter of wheat than the US by about 2019. Bloomberg Businessweek just wrote an article on how Russia is fighting for World Dominance – in Wheat!.  The article recaps that Russia is able to sell their […]

    More

  • You Can Use an IRA Too – Maybe!

    My post from yesterday resulted in several comments and questions that I would like to respond to. One comment is that code section 4975 deals with prohibited transactions regarding you and your pension plan or IRA.  There are severe penalties for not obeying the rules regarding these transactions.  However, if you obey the rules, the […]

    More

  • Tap Your 401(k) to Start Your Farm Business

          I know that many of our readers currently have jobs not related to farming, however, you would like to leave that job and start farming on a full-time basis.   One of the major drawbacks to doing this is the lack of capital.  However, many of you could have a substantial asset that […]

    More

  • The Law of Diminishing Returns

    In my post yesterday, I indicated that maximizing your net return per acre was more important than the most yield per acre.  One of our readers wrote a great comment regarding how their operation tries to maximize their yield to achieve the most net revenue per acre. My post should have stressed that your farm operation […]

    More

  • Net Revenue Per Acre Trumps Yield Per Acre

    I was watching Agday yesterday and noted in the business section that Mark Gold of Top-Third Marketing was the guest and had a discussion on how gross revenue per acre was more important than yield per acre.  His insight is that it can be more important to budget for getting top marketing dollars for your […]

    More

Subscribe to Our Email List

* indicates required