Farm Leadership

  • Volatility – Is it Your Friend of Enemy?!

    Another nugget of information that I got out of the speech by Dr. Boehlje of Purdue University on Wednesday is that accordingto their studies at the school, the volatility associated with agriculture has gone up by 400% in the last few years.  This means that the price swings in ag commodities is now 4 times greater than […]

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  • Lock in Low Rates Now!

    Dr. Michael Boehlje, a farm economics professor at Purdue University spoke at out opening day of the National Ag conference of the American Institute of Certified Public Accountants (I know that is a mouthful).  He gave a 4 plus hour presentation on the agricultural economy both currently and insights into the future. One of the […]

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  • When is a Deposit Income?

    I will be at the annual American Institute of Certified Public Accountants Ag Convention in Denver today till Friday.  I hope to come away some ideas for our farmers. We had a reader ask the following question: “Can you hold checks that have been sent to us for grain sold in 2010 until 2011?” The […]

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  • How to Allocate Land Purchase?

    We received the following questing regarding our post on the allocation of land purchase to vineyard AVA: “Paul, You cover depreciating improvements on land. I am buying 150 acres in north-central Iowa that is bare ground. It has two county main tile lines running through it, has a blacktop road on one side and a […]

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  • Creative Taxpayer Gets Denied

    Many farmers forget to properly allocated their purchase price when purchasing land.  For tax purposes, you can not deduct land, however, you can depreciate any improvements made to the land.  For example, assume a farmer buyer a quarter section for $1 million dollars.  On that quarter section, there is a well, roads, fences, buried main […]

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  • Dynamic Live Budgeting – Update

    I have gotten a few requests on if there is software out there that will handle a dynamic live budget for farmers.  What I have found so far that works the best is to use an Excel spreadsheet.  I have reviewed a couple of budgeting programs that are for me simply to complicated to work […]

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  • Dynamic Live Budgeting – Use it to Prosper!

    I see way too many farmers and other business people who treat their annual budget as the necessary evil that the banker requires at year-end to get the loan.  A very successful farmer will, rather, treat a budget as a dynamic live tool that will help guide their operation to maximize profits. First, lets review […]

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  • What’s Your Contribution Margin?

    The University of Purdue and other universities do a good job of providing estimated crop costs and return guides for each major crop grown in their area.  I decided to take their 2010 Crop Cost and Return Guide and update with three ranges of prices for the five different crop rotations shown.  I am using a low, […]

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  • Remember Your 3 To 1 Ratio!

    Now that the USDA has really surprised us with an US corn crop of about 156 bushels per acre, as farmers you need to remember how this will correlate to your planting intentions for this year and next.  Since we can assume at current prices, corn, bean and wheat will be profitable next year, the […]

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  • A Battle for Acres

    It will be interesting to see which crop wins the battle for acres in 2011.  Right now, wheat, corn, beans and cotton are all enjoying much higher prices than last year.  The University of Purdue has calculated that the following returns above variable costs on high quality land are as follows: Corn – $447, Beans […]

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