Agricultural Economics Commons^™

The Impact Of Covid-19 On Nebraska’S Nonprofits, John C. Beghin

Cornhusker Economics

This article describes the impact of COVID-19 on nonprofit organizations in Nebraska based on evidence gathered in two business surveys coordinated by a research consortium. The consortium is made of the State of Nebraska, the Nebraska Chamber of Commerce, the University of Nebraska (UNO, UNL) and several local project partners. Additional information was provided by the Nonprofits Association of the Midlands (NAM), through two surveys of its member-ship and interviews with core staff at NAM, to corroborate the survey results. The business surveys took place in April and June 2020 gathering response of 646 (April) and 137 (June) nonprofit entities. …

Multi-Peril Crop Insurance Basics, Matthew Stockton, Duran Rudnick, Chuck Burr

Cornhusker Economics

The Federal crop insurance corporation (FCIC) https://www.rma.usda.gov/Federal-Crop-Insurance-Corporation and https://www.everycrsreport.com/reports/R45193.html offers three types and eight levels of taxpayer subsidized multi-peril crop insurance (MPCI) policies, sold for four different unit types. The unit types are designed to define the nature of the farm area being insured. There are four types of insurable units, optional, basic, enterprise and whole farm. Each of these units has differences in costs per acre and is likely to create variations in indemnities. For example, a highly localized severe hail storm on a single field covered using basic units would likely have an indemnity, versus not likely to …

2020 Nebraska Property Tax Changes, J. David Aiken

Cornhusker Economics

The Nebraska Unicameral enacted significant property tax relief legislation in the closing days of the 2020 legislative session. The last-minute compromise was negotiated by seven legislators selected by the Speaker. The compromise estab-lishes a refundable state income tax credit of an estimated 6% of the property taxes paid for local schools (excluding property taxes for school bonds and school budget overrides). Taxpayers will be able to claim this credit on next year’s Ne-braska state income tax return. For fiscal years (FYs) 2021-22 through 2023-24 (i.e. from July 1, 2021, through June 30, 2024), the amount availa-ble for the refundable state …

Annie’S Project: Know Your Numbers, Know Your Options, Jessica Groskopf

Cornhusker Economics

To help farmers and ranchers improve their record keeping and decision making, Nebraska Extension has hosted several Know Your Numbers, Know Your Options courses across the state since October 2019. These programs are inspired by Annie’s Project.

Annie's Projects are educational courses for wom-en that focus on agricultural risk management topics. These hands-on programs aim to increase the knowledge, skills, and abilities of attendees. They encourage attendees to ask questions, connect with participants and speakers, and share their experiences.

Risk Management Needs And Challenges For Agriculture, Bradley D. Lubben

Cornhusker Economics

Farmers and ranchers must continually manage risk in their operations to be successful. But the amount of risks and challenges they have faced over the past few months and years seems almost unprecedented. From financial challenges toproduction and market shocks to public health scares and policy developments, agriculture has had to respond and adapt to a wide range of issues.

Cares Act Implications On Tax Planning For Farmers, Tina N. Barrett

Cornhusker Economics

The CARES Act, passed in March of 2020, provid-ed many changes that directly impacted farmers. It created both the Payroll Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), which many farmers utilized. However, the CARES Act included several other provisions that didn’t get as much attention. Farmers need to be aware of these as they go into tax planning this fall, as they could benefit their operations.

Estimating A Fair Value For Standing Forage, Jay Parsons, Daren Redfearn, Mary E. Drewnoski

Cornhusker Economics

Several things need to be considered when deciding what value to place on standing forage. Forage prices reflect current inventories, demand, expected current season production and associated yield risk, and quality characteristics. Standing forage can be harvested in a number of different ways which need to be considered when pricing it. Below, we provide a few general thoughts and questions concerning harvesting method and comparable feed value to consider when pricing standing forage. We follow with a few examples illustrating pricing calculations for forage mechanically harvested as hay, haylage, and silage. We close with pricing considerations for forage harvested by …

Feeder Cattle Future Price Spreads: Opportunities To Hedge?, Elliott James Dennis

Extension Farm and Ranch Management News

First paragraph:

Feeder cattle future price spreads across all months have recovered to near pre-COVID-19 levels as quarantine restrictions and packing plant capacity issues have been mostly sorted out. For example, for the week of July 17, 2010 [sic], prices reached levels not seen since the beginning of March 2020. Pasture and corn progress are two factors that have the potential to push prices lower in the next coming months. Given current market conditions, producers have some options to lock in a margin.

Historic Analysis Of Flooding And Excessive Moisture Across Nebraska And Implications For Agricultural Lease Arrangements In 2020, Jim Jansen, Jeffrey Stokes

Cornhusker Economics

The Nebraska Farm Real Estate Market Survey and Report 2019-2020 provides insight on recent trends on the market value of agricultural land and cash rental rates across the state. Each year, the special feature section from this report covers topics on new or emerging issues related to the agricultural land industry in Nebraska. These topics reflect interest expressed by panel members and readership of the Nebraska Farm Real Estate Market Highlights Reports. The special feature section in 2020 evaluates historic flooding and excessive moisture over the prior decade across Nebraska and implications on accounting for this type of risk in …

Coronavirus Food Assistance Program (Cfap) Payments For Nebraska Livestock Producers, E. Wesley F. Peterson

Cornhusker Economics

In the June 10, 2020 issue of Cornhusker Economics, the Coronavirus Food Assistance Program (CFAP) was described and the average level of payments to Nebraska Corn and Soybean Producers from this program were estimated. CFAP includes payments for both livestock and crops and in this issue, I explain eligibility requirements, payment sources, and expected payments for Nebraska livestock producers. The COVID-19 epidemic in the United States caused hardships for both producers and consumers of livestock products. The virus affected workers in livestock processing and packing plants, in particular, due to the nature of the work which normally requires working in …

2020 Nebraska Agricultural Custom Rates With Statewide Survey Summary, Glennis Mcclure

Cornhusker Economics

With the large investment cost of agricultural machinery and equipment, and often with the uncertainty of labor availability, many Nebraska farms and ranches utilize and pay for custom services. There is generally great interest in the biennial University of Nebraska-Lincoln Custom Rates Survey report from those that perform services and those that pay for services. The recently completed 2020 Nebraska Custom Rates Survey and accompanying report summarize current rates charged for specific machinery operations and custom services across the state.

The Value Of Soil Sampling And Sampling Density: Conceptual Framework (Part 1), Taro Mieno, David Bullock

Cornhusker Economics

When considering variable-rate nitrogen or seed application, soil sampling can provide farmers and their consultants with valuable information about the spatial distributions of soil properties such as organic matter, micro- and macro-nutrients, and pH. Conceptually, that information may be especially valuable for site-specific input management. But just as farmers make decisions about input applications, they also must make decisions about soil sampling, and in particular, must choose soil sampling density. It is standard practice for U.S. corn and soybean farmers to take soil samples on their fields every three or four years at a density of one sample per 2.5 …

Farm And Ranch Enterprise Budgets: Return To What?, Larry Van Tassell, Jay Parsons, Glennis Mcclure

Cornhusker Economics

Budgets capturing the projected revenues and costs associated with producing and marketing a single commodity are generally called enterprise budgets or cost and return estimates but can also be referred to as profit center budgets. Two of the major purposes for developing enterprise budgets are to determine which enterprises are the most profitable and to determine breakeven prices for use in a marketing plan. Enterprise budgets produced by the University of Nebraska-Lincoln can be found at farm.unl.edu.

Can Commodity Prices Be Negative? Revisiting The Events In The Crude Oil Market In April., Fabio Mattos

Cornhusker Economics

Preventive measures adopted during the COVID-19 pandemic have changed our lives and businesses in many ways. Commodity markets have also witnessed unique events that were partially influenced by those changes. In April, for the first time in history, prices in a large exchange-traded futures market turned negative. Crude oil futures prices for May 2020 delivery were traded below zero on April 20 and 21, reaching a minimum of –$40.32/barrel. If I am selling crude oil to you for –$40.32/barrel, it means that I am giving you the contracted amount of crude oil and paying you $40.32/barrel to take my oil. …

Utilizing Annual Forage Crops In Rotations, John Hewlett, Jay Parsons, Jeff Tranel

Extension Farm and Ranch Management News

First paragraph

Approximately 60 million acres of forage are harvested annually in the United States, according to the National Agricultural Statistical Service (NASS). With lower commodity grain and oilseed prices along with high pasture rental rates and/or difficulty finding range and pasture to rent, some producers are considering ways to incorporate more forages into their crop rotations.

Coronavirus Food Assistance Program (Cfap) Payments, Anil Giri, E. Wesley F. Peterson, Sankalp Sharma

Cornhusker Economics

On April 17, 2020, U.S. Secretary of Agriculture Sonny Perdue announced the Coronavirus Food Assistance Program (CFAP), a new program to assist producers and consumers affected by the COVID-19 pandemic (USDA 2020b). CFAP will provide $19 billion in relief to producers and entities throughout the supply chain. This will be done through two programs, Direct Support to Farmers and Ranchers ($16 billion) and USDA Purchase and Distribution ($3 billion) (USDA 2020a). Producers will be paid on actual losses due to decreases in prices and/or disruption of supply chains. On May 19, 2020 USDA announced the details of the CFAP. There …

Impact Of Covid-19 On Demand For Distillers Grains From Livestock Operations, Daniel Gertner, Elliott James Dennis

Cornhusker Economics

Government and industry responses to COVID-19 cases have created a variety of unique situations in the agriculture industry. "Stay-at-home" orders forced consumers to be homebound, increasing the demand for food in grocery stores while reducing the need for food in restaurants. These caused a series of rapidly changing supply and demand conditions along the livestock supply chain. Meat destined for restaurants need to be repacked and reprocessed to make it compatible to sell in grocery stores. Meat packing plants continued to try to process harvest-ready animals, but a growing number of positive cases among plant workers forced idling, reduced plant …

The Impact Of The Covid-19 Crisis On Nebraska's Ethanol Industry, John C. Beghin, Sushant Timalsina

Cornhusker Economics

This article looks at the impact of the pandemic crisis on Nebraska’s ethanol industry. We trace the changes in return margins since the last quarter of 2019 to early May of this year and show the deterioration of these margins and the resulting reduced returns, gross revenues and production reduction induced by the low returns.

Workforce Development In A Post-Covid World: A Grassroots Approach, Cheryl A. Burkhart-Kriesel, Kristina Bayton, Samantha Guenther, Blayne Sharpe

Cornhusker Economics

As the world slowly emerges from COVID 19 both the virus and the lingering effects on the economy will be in the spotlight. There is a real urgency to get businesses up and running and employees working again. Some businesses may be able to "flip a switch" and up to speed while other may need to ramp up more slowly and will only be able to "turn up the dial." In both situations, there are implications for the local workforce and for the community.

North Central Extension Risk Management Education Center, Christine Lockert, Bradley D. Lubben

Cornhusker Economics

Managing through the current economic challenges and accumulating shocks in ag sector will be a major challenge for farmers and ranchers. Educating producers to manage these risks and position their farm or ranch for future growth and success is the fundamental purpose of the Extension Risk Management Education (ERME) program.

Nebraska National Agri-Marketing Association And The Covid-19 Effect, Austin Harthoorn, Rosalee A. Swartz

Cornhusker Economics

The University of Nebraska-Lincoln’s National Agri-Marketing Association (NAMA) student organization is one of more than 30 student chapters across the U.S. and Canada. The objective of the student NAMA on campus is to learn first-hand about the many career opportunities in agri-marketing from professionals in marketing, advertising, communications, promotion, sales, and public relations. As chapter members, students develop valuable personal contacts and working relations with agri-marketing professionals and have meaningful opportunities to develop and practice their managerial skills and leadership abilities.

Economic Impacts Of Food Fraud, Syed Imran Ali Meerza, Konstantinos Giannakas, Amalia Yiannaka

Cornhusker Economics

When you order seafood at a restaurant, do you get what you pay for? Scientists from Oceana, a non-profit marine conservation organization, conducted one of the largest seafood fraud investigations on 1,215 samples from 674 outlets in 21 states of the United States (U.S.) over the period 2010 to 2012.They found that there is, on average, a 33% probability that you do not actually get what you pay for. The share of mislabeled food was (a quite remarkable) 74% for seafood sold in sushi restaurants and 18% of seafood sold in gro-cery stores with mislabeled “red snapper” and “tuna” accounting …

Some Economic Implications Of The Covid-19 Pandemic In Nebraska, John C. Beghin

Cornhusker Economics

It is now clear that the spread, mortality and morbidity impacts of the coronavirus pandemic are sizeable but extremely heterogeneous across multiple dimensions. Geography shows that places with lower human con-centrations (urban/rural divide) and away from main travel axes, such as major interstate highways and in-ternational airports, have a lower incidence of cases. Large urban centers with high human concentrations have been much disproportionally affected and with much higher mortality rates. Age and health status are equally important. Mortality increases dramatically for people 60 years old and older. People with comorbidi-ties (cardiovascular, obesity, diabetes, and others) are much more likely …

Covid-19, Farm Survival And Decision Making, Cory Walters, Jessica Groskopf, Richard Preston

Cornhusker Economics

COVID-19 is causing us to experience events that have always been possible, just not yet observed. For farmers these events may have a big negative financial impact, or they may not. The impact on each individual farm has to do with how that individual farm has prepared for rare financially devastating events. Preparing for unseen events represents a logical approach. We call this approach stress testing. Just because you have not seen an event, it does not mean it does not exist. Or said another way, absence of evidence is not evidence of absence. In this article, we discuss how …

2020 Cares Act – Financial Supports For Small Business, Marilyn R. Schlake

Cornhusker Economics

Whether a business is impacted by weather-related disasters, road construction or sudden economic downturns, having a plan to mitigate the impacts can be crucial to the immediate and long-term survival of the business. Unforeseen circumstances, such as the COVID-19 pandemic, may require owners to re-evaluate their business models, cut operating costs and seek outside financial supports – all to keep cash flowing and the business open. To help small businesses during the pandemic, the Coronavirus Aid Relief, and Economic Security (CARES) Act was signed into law on March 27. It contains $349 billion in relief for American small businesses and …

2020 Cares Act – Apoyo Financiero Para Pequeñas Empresas, Marilyn R. Schlake, Sandra Barrera

Cornhusker Economics

Ya sea que un negocio se vea afectado por desastres relacionados con el clima, la construcción de carreteras o las recesiones económicas repentinas, tener un plan para mitigar los impactos puede ser crucial para la supervivencia inmediata y a largo plazo del negocio. Circunstancias imprevistas, como la pandemia de COVID-19, pueden requerir que los propietarios reevalúen sus modelos de negocios, reduzcan los costos operativos y busquen apoyos financieros externos, todo para mantener el flujo de efectivo y abrir el negocio. Para ayudar a las pequeñas empresas durante la pandemia, el 27 de marzo se promulgó la Ley de Ayuda y …

Sin Acceso A Alimentos Seguros, Saludables Y Económicos: El Modelo Agroindustrial Dominante Y Sus Efectos En Los Consumidores En Salta, Argentina / Without Access To Safe, Healthy, And Affordable Food: The Dominant Agroindustrial Model And Its Effects On Consumers In Salta, Argentina, Sara Paulsen

Independent Study Project (ISP) Collection

This paper analyzes the effects of the hegemonic food system on low income consumers in Salta, Argentina. Results from previous literature indicate a relationship between the dominant agroindustrial model in Argentina and the concentration of power in the food production system. This paper seeks to contextualize the reports of malnutrition in Salta, a province in northwest Argentina, within larger social, cultural, and nutritional trends. To answer the question of how the hegemonic food system affects access to safe, healthy, and affordable food in Salta, I analyzed reports of various health outcomes (including malnutrition, cancer, birth defects, and obesity) and contextualized …

Examining The Role Of The Crop Insurance Selling Agent, Nathan Delay, Hayley Chouinard, Cory Walters, Philip Wandschneider

Cornhusker Economics

The United States Department of Agriculture, Risk Management Agency (RMA) partners with private insurance companies to deliver the federal crop insurance program through agents who sell policies directly to producers. The government subsidizes producers in the form of premium discounts and reimburses private insurance companies for administrative and operating (A&O) costs. The government provides further assistance to the industry by offering a cooperative reinsurance agreement that reduces loss exposure for insurance companies (Appel and Borba, 2009).

Subsidization of private market players may facilitate rent-seeking behavior—efforts to capture larger shares of tax dollars devoted to the program— especially in the settings …

Pricing Stallion Seasons For An Individual Stallion: The Existence Of Top Tier Pricing And Market Power, Robert L. Losey Ph.D., Thomas E. Lambert 1959-

Faculty and Staff Scholarship

This paper is an academic treatment of the pricing of stallion seasons (a “season” confers the right to breed a mare to a stallion) The commercial stallion seasons market can be represented schematically as a triangle that normally has a single-digit number of stallions offering high-priced seasons in the narrow apex, a moderate number of stallions composing the middle section, and over 150 in the $5,000-$10,000 range. We argue that it is logical for profit-maximizing stallion managers, most especially those in the apex of the stallion seasons triangle, to charge different prices for different groups of buyers of the same …

Nebraska Women In Agriculture Celebrating 35 Years, Jessica Groskopf

Cornhusker Economics

A crowd of almost 300 gathered together February 20 and 21 in Kearney, Nebraska for the Nebraska Women in Agriculture conference, with the theme — Celebrating 35 Years! The conference is one of the longest-running women's conferences of its kind in the country. The goal of the Nebraska Women in Agriculture Conference is for women to build relationships with each other while gaining valuable knowledge about managing risk on their farms and ranches. The event featured 5 general session speakers and 35 workshop sessions.