Agricultural Economics Commons^™

Legal Aspects Of Financial Distress: Refinancing Issues, J. David Aiken

Cornhusker Economics

Nebraska hog producers are currently facing prices that have reached historic lows. Some producers may be discussing financing options with their lenders and other creditors. This newsletter identifies some issues to consider when refinancing operating (and other) agricultural loans. Always consult an attorney before signing or negotiating legal documents, such as loan agreements.

Meeting Cash Flow Needs, Roger Selley

Cornhusker Economics

In the March 11, 1998 issue of this newsletter we discussed how projected cash requirements for the year could be distributed between enterprises. The objectives of that discussion were to arrive at 1) a budgeted cash requirement on a per acre basis to help determine crop insurance needs, and 2) a target price for each enterprise to help in pricing decisions. We suggested, however, that prioritization of cash requirements may be needed because yield and price protection may not be available at those levels or may cost more than you are willing to spend. The low prices we are currently …

Some Thoughts - Farm Business Management - Fall 1998, Larry L. Bitney

Cornhusker Economics

Crop and livestock prices have been universally low for Nebraska farmers and ranchers in the last few months. There have been conversations about whether the current conditions constitute a crisis, and how it is different from the farm financial crisis of the 1980's. Regardless of the differences or similarities with the 80's, many farm and ranch families are facing drastic reductions in income. There are, of course, exceptions. In view of the current situation which most families are facing, I was recently asked to speak on the topic of “Strategies for Dealing with Low Prices.” Following is a brief summary …

The Occupation Of Farming, Bruce B. Johnson

Cornhusker Economics

Farming is one of the world’s oldest occupations. It has been hailed as one of the most noble of occupations by Thomas Jefferson and countless others throughout recorded history. Tilling the soil and husbanding the livestock as a resource steward in the seemingly-endless cycle of seasons, this remains in the minds of many as the basic stereotype of a farmer.

Grain Storage: Value, Costs, And Returns, Roger Selley

Cornhusker Economics

Promise of a good crop and low prices at harvest has increased the interest in storage. Many elevators are requiring that 20% or more of the grain be sold upon delivery or be placed under a deferred pricing contract so they can move the grain. Commercial storage rates are expected to be 2½ to 3 cents or more per bushel where available. Farm storage rental charges may approach commercial rates.

Strategies For Sustainable Economic Development, Duane Olsen

Cornhusker Economics

During a conference highlighting "sustainable Communities," Margaret Thomas presented a paper based upon a 1994 research project designed to explore economic development strategies that would increase local prosperity and also protect the environment and protect natural resources. She described the economy and ecology as two sides of the same coin and proposed reconsidering human systems and industrial systems in the light of these two natural laws: 1) resources are to be used no faster than they are replenished, and 2) matter is ultimately recycled for reuse in biological or physical systems.

Estimating And Using Probabilities In Farm And Ranch Decisions, Al Wellman

Cornhusker Economics

A probability is a number that measures the likelihood or chance that a particular event will occur. This number, in terms of fractions or percentages, must be between zero (0) and one (1). Zero means there is no chance that the event will happen, and one means it is certain to happen. In between are all the possible probabilities that it will or will not happen. The sum of the probabilities of all the possible events that can occur in a given situation must add up to one.

Farming — Can You Make A Living At It?, Larry Bitney

Cornhusker Economics

I’ve observed that many families are running harder and faster to make ends meet on the farm. Farms that produced living expenses for a family ten years ago are no longer doing so. Many families who found it necessary to supplement farm earnings with an off-farm job in the 1980's have kept that job, and are now struggling again financially. Other families have expanded their farming operations to increase their sales volume, but seem to be reaching their limits of physical and mental energy, and are also struggling.

Beef Industry Productivity, Prices And Profits, Dillon M. Fuez

Cornhusker Economics

Cattle numbers in the U.S. peaked in 1975 at about 130 million head. Since that time, cattle numbers have generally been declining. Numbers are affected by the cattle cycle, but peak numbers are declining with each new cycle. The January 1, 1998 inventory of cattle was less than 100 million head.

Changing Technology And Share Leases Some Observations, Larry L. Bitney

Cornhusker Economics

The most popular method of leasing cropland in Nebraska is the share lease. Under this arrangement, the tenant and landowner both contribute to the production of a crop, which they share and market. The landowner’s contribution may be only the land, or he/she may also pay a share of the crop production expenses.

Creating A Business Plan, Allen Prosch

Cornhusker Economics

A business plan is becoming an increasingly important tool as farm operators need to explain complex operations to their associates. It has long been necessary to have good information for lenders. But in the current business environment there are many more persons such as crop consultants, landlords, employees and family members who may not always be present, but are involved in the operation.

Facing A Watershed: Managing Profitable And Sustainable Landscapes In The 21st Century, Heidi Carter, Richard Olson, Charles A. Francis

CARI Extension and Education Materials for Sustainable Agriculture

Overview of Freshwater Use, Introduction to Watershed Management, and a Watershed Management Plan

Group Dynamics in Designing and Implementing a Watershed Management Plan

Information Sources for Watershed Management

Conservation Buffers and Riparian Management

Farmland Protection, Green Corridors, and Suburban Sprawl

Information Sources for Sustainable Agriculture and Sustainable Agriculture Education

Nebraska Cooperative Extension Association 4-H Section, Officers And Awards (1972-2000), Tracy Behnken

National Association of Extension 4-H Agents (NAE4-HA)

No abstract provided.

Development Of New Generation Cooperatives, Mike Turner

Cornhusker Economics

Dr. Mike Cook, Professor of Agricultural Economics at the University of Missouri and his students have interviewed over 50 newly created agricultural cooperatives. The purpose of this study was to determine the steps taken to establish a new business. In each case the newly formed business was to establish a value-added opportunity for agricultural producers. The steps taken included the following:

Factors Affecting The Coordination Of Agricultural Production And Marketing, Jeffrey S. Royer

Cornhusker Economics

Agricultural markets depend considerably less on open market transactions than 40 years ago. Increasingly, the production and marketing of agricultural products have been coordinated by forward contracting, production and marketing contracts, and vertical integration. The degree to which these alternative marketing mechanisms have been employed varies across commodities and products. Production contracts, marketing contracts, and vertical integration dominate in several livestock markets, including broilers, turkeys, eggs and milk, and in most specialty crop markets, including fruits, vegetables and sugar beets. Market transactions have continued to be more important for field crops and the cattle and hog markets although contract production …

Production And Financial Standards For The Pork Industry, Allen Prosch, Larry Bitney

Cornhusker Economics

The 1996 summary for the Nebraska Swine Enterprise and Analysis Program shows that there is a lot of difference between average, the high 1/3 and the low 1/3 of producers when it comes to a profit. Producers in the average group showed a 27% rate of return on capital, while those in the top 1/3 showed a return of 49%. Total cost per cwt. for an average producer on the records program was $50.71 while the producers in the high profit 1/3 produced that pork for $44.96 per cwt.

Coping With Potholes In Your Farm Transition Pathway, Part Ii*, Paul H. Gessaman

Cornhusker Economics

Transferring a family-operated farm or ranch between generations presents many challenges. Typically, the transfer requires inter-generational transitions in management, ownership, and control of the operating unit. These transitions can occur a little at a time over a period of years. Or, they can happen very quickly when a divorce, a death, a disability, a dispute, or a departure quickly remove a person from production unit activities. Whether the transition is slow or quick, the life situations of two or more generations of individuals and families are changed.

Multi-Year Hedging Of Corn, 1973-1995, Dennis M. Conley

Cornhusker Economics

Multi-year hedging involves placing a hedge for more than one year and then unwinding it as physical product is sold. A recent study analyzed two-year hedges for corn in an attempt to capture the higher prices that occurred over the 23-year period of 1973- 1995. Cash prices were for No. 2 yellow corn at Omaha on October 15, or the nearest business day. Futures prices were from the December contract month at the Chicago Board of Trade.

Coping With Potholes In Your Farm Transition Pathway, Part I, Paul H. Gessaman

Cornhusker Economics

Sooner or later transitions emerge in personal and business life. Some are based on opportunities: land or other resources become available at an affordable cost, family members acquire and use new skills, new markets open, new technology is released, someone joins the family through marriage or adoption, or another form of good fortune occurs.

Future Horizons: Recent Literature In Sustainable Agriculture, Gabriel Hegyes, Charles A. Francis

CARI Extension and Education Materials for Sustainable Agriculture

Here is one building block in the foundation for a future agriculture. Increasing trainer literacy in sustainable agriculture can be defined on several levels. At its most literal, it is an anthology of reviews familiarizing the reader with some of the authors, topics, and titles that have composed the sustainable agriculture literature over the last decade or more. It also serves as an annotated bibliography where the dry abstracts of many such works are replaced with insightful essays. Most importantly, this primer is a language text, exposing the user to the semantics, symbols, and syntax of sustainable agriculture. This collection …

Nf96-273 Establishment Of Kentucky Bluegrass For Seed Production In The Nebraska Panhandle And Southeastern Wyoming, Ray E. Weed, David D. Baltensperger, Robert C. Shearman, Roger Hammons, Jim Krall

University of Nebraska-Lincoln Extension: Historical Materials

This NebFact contains information on selecting turfgrass seed fields, preparation of the fields for seeding, fertilizing for grass establishment, seeding, certification of seed quality, cultivar selection and quality maintenance, and suggested additional readings and resources.

Nebraska Farm Real Estate Market Developments 1994-95, Bruce Johnson

Nebraska Farm Real Estate Reports

Agricultural land values in Nebraska rose an average of 2.8 percent during the year ending February I, I995. While this represented the eighth straight year of value advances, it was the smallest annual percentage change of that period. Relative stability in agricultural real estate values during I994 was prevalent across the state with only, slight percentage changes in either direction recorded across the various types of land and location.

Despite a poor livestock economy, non tillable grazing land had the largest percentage gain during the I2-month period (4.9 percent). In contrast, gravity irrigated cropland rose only I percent for the …

Nebraska Farm Real Estate Market Developments 1993-94, Bruce Johnson

Nebraska Farm Real Estate Reports

Agricultural land values rose across the state during 1993, averaging 6.6 percent for the year ending February 1, 1994. According to the 1994 Nebraska Farm Real Estate Market survey, largest annual increases were reported in the east, southwest, and north areas with percentage increases of 8.9 percent, 8.4 percent, and 8:0 percent respectively.

While weather adversity was widespread across Nebraska during 1993, buyer interest remained keen, and appeared to intensify in late 1993 and early 1994 as crop commodity prices rose.

In any local market, agricultural land values will exhibit rather pronounced ranges in market values depending upon real and …

1994 Agriculture Outlook & Policy Issues, University Of Nebraska Agricultural Economics Department, Lynn H. Lutgen Compiler

Department of Agricultural Economics: News, Announcements, and Information

Introduction – Sam Cordes, Department Head

1994 General Economic Outlook — A.L. (Roy) Frederick

Agricultural Export Trading Companies: Their Potential for Nebraska Under NAFTA – Robert L. McGeorge

NAFTA and Agriculture in Nebraska – Jay E. Rempe and E. Wesley F. Peterson

Long-term Trends in Nebraska's Farm Product Mix – Rlchard K. Perrin

The State of the State's Transportation System – Dale G. Anderson

Issues For The 1994 Nebraska Legislature –A.L. (Roy) Frederlck

Agricultural Income and Finance Outlook – H. Doug Jose

Production Cost Prospects for 1994 – H. Doug Jose

1994 Custom Rates Outlook – Raymond E. Massey

Projected …

Nebraska Farm Real Estate Market Developments 1992-93, Bruce Johnson

Nebraska Farm Real Estate Reports

For the Sixth Consecutive year, Nebraska's agricultural real estate values rose in 1992. According to the 1993 UNL Nebraska Farm Real Estate Market Survey, the increase was just over 4 percent for the year ending February 1, 1993. Still, the 1993 all-state average value remains 30 percent below the peak level of value reached in 1981.

Not all areas of the state experienced land increases during 1992. All-land average values remained essentially unchanged during 1992 in the northwest, north, and southwest areas of Nebraska while gains of 5 to 7 percent were recorded in the eastern third of the state …

Ranch Management Practices In The Sandhills Of Nebraska: Managing Production, Sean A. Coady, Richard T. Clark

Nebraska Agricultural Experiment Station: Historical Research Bulletins

This report represents the second in a two-part series that summarize a comprehensive survey of Nebraska Sandhills range cattle operations. The focus of this report is on management of the production aspects of the ranch business and provides details on pasture and meadow management, hay production, crops, breeding programs, nutritional programs, and maintaining the health of the herd.

Rural Flies In The Urban Environment?, Gustave D. Thomas, Steven R. Skoda

Nebraska Agricultural Experiment Station: Historical Research Bulletins

Because metropolitan areas in the United States have been expanding at a dramatic rate, there has been direct competition between rural and urban interests for land. Also, market pressures often make it most profitable for meat producers to locate as close to urban centers as possible. A resultant growing interface between rural and urban centers, coupled with inadequate understanding of the people between the two centers, provides a potential for problems to develop. This book generally summarizes one area of contention - flies: few people tolerate flies in any setting anymore.

Another Look At Farm Size And Concentration, Roy Frederick

Cornhusker Economics

One of the legacies of the 1977 farm bill is that USDA is required to make an annual report to Congress on the status of family farms. This year's report (Peterson, R. Neal and Nora L. Brooks, 'The Changing Concentration of U.S. Agricultural Production During the 20th Century," Economic Research Service, Agriculture Information Bulletin Number 671, July, 1993) was issued a few weeks ago.

1993 Agricultural Outlook & Nebraska Policy Issues, University Of Nebraska Agricultural Economics Department

Department of Agricultural Economics: News, Announcements, and Information

Introduction by Sam Cordes

The Development of the U.S. Economy – Wesley F. Peterson

North America Free Trade Agreement – Roy Frederick

The Significance of Free Trade Agreements in an Era of Declining Import Duties – Robert McGeorge

Implications of Foreign Agricultural Assistance for Nebraska Agriculture – Dale Anderson

Ag Finance and Credit Outlook – Larry Bitney

Projecting Production Costs for 1993 – Doug Jose

1993 Custom Rates Outlook – Ray Massey

U.S. Tractor Sales Demand – Dennis Conley

Wheat Outlook in 1993 – Lynn Lute

Outlook for Soybeans in 1993 – Lynn Lute

Corn Outlook in 1993 – Lynn …

Packer Integration Into Hog Production: Current Status And Likely Impacts Of Increased Vertical Control On Hog Prices And Quantities, Azzeddine M. Azzam, Allen C. Wellman

Nebraska Agricultural Experiment Station: Historical Research Bulletins

In a survey conducted three years ago by the staff of Pork '88, it was found that some of the major players in the pork industry, like Smithfield foods, for example, have either integrated into hog production or have all the requirements for vertical integration in place. The move toward internalizing the exchange process in the hog/pork sector through vertical integration has raised several questions ranging from its impact on prices and quantities to its impact on individual hog producers. This report is a first step toward studying these issues. Its specific objectives are a) to provide some insights into …