Finding Your Financial Footing in 2016
|
|
- Dwain Cox
- 5 years ago
- Views:
Transcription
1 Finding Your Financial Footing in 2016 York Ag Expo York, NE January 13, 2016 Brent Gloy, LLC
2 Agenda The situation The outlook in 12 questions The long term trends Strategies for maintaining your financial footing Download the presentation and other materials from a private website developed just for you:
3 , LLC
4 Some Key Questions Heading into Will profitability fall for a third year? 2. Will costs adjust to alleviate margin pressure? 3. Will farmland prices continue to SLOWLY soften? 4. Will strong financial conditions hold? 5. How many acres of corn and soybeans? 6. El Nino, La Nina, or what? 7. What will happen with interest rates? 8. What about the dollar? 9. What about China and global uncertainty?
5 But the #1 Question I get is Is this going to end like the 1980 s? There are similarities There are important differences Still, the need to secure your financial footing is real Let s take a quick look
6 Farm Income Declines Sharply
7 Commodity Prices Spike and Fall Dramatically but Nothing like the 70 s and 80 s
8 Real (2009 USD) U.S. Farm Sector Debt, f Real debt levels have increased Still below peak of the 1980s Where to from here?
9 Exports are Critical to Ag but Different than 80 s
10 Dollar is Appreciating, but Less than 80 s
11 Inflation Remains Low Inflation remains below Fed s 2% target Tremendous decline in energy and commodity prices
12 Where to with World Economic Growth? SOURCE: IMF 2015 World Economic Outlook
13 China s Influence Two Examples
14 While there are similarities, today is not the 1980 s Factor 1970s and 1980s Today Farm income Big shock then big bust Big shock then big decline Commodity Tremendous short term shock then bust Big shock then decline prices Debt Huge increase in leverage Increase but not as dramatic Farmland values Huge increase then bust Huge increase and moderation to date Exports Huge increase then bust Large increase Exchange rate Dramatic appreciation in dollar in the General strengthening bust phase Inflation Very high inflation rates Very modest inflation Interest rates Negative real rates then extremely high real rates Relatively low real rates persist
15 Today s Agriculture Margin Compression Continues Little relief on variable costs Will be difficult to avoid until fixed costs adjust Rents Equipment Family living Land values Mitigating factors Crop insurance Crop mix Government program Bottom Line: Farmers Better Have Reserves and be Prepared for Tighter Finances than Many Have Dealt with for Years
16 2016 Looks Only Marginally Better Than 2015 Let s take a look at corn and soy budgets by regions shown in map
17 AEI 2016 Budget Estimates for Corn
18 Corn or Soybeans in 2016? Long-run average is 2.3 Earlier was favorable to corn now switching back toward balance
19 What Will Change the Situation?
20 Fertilizer Prices Remain High, but Beginning to Fall Have been through their own boom period Crop demand keeps these and other prices high Will likely soften if acreage mix changes Will likely change as supply/demand fundamentals change
21 Machinery Costs and Investment Machinery investment varies drastically This is one of the fixed costs that needs to adjust if prices remain low Source: Langemeier and Ibendahl, Crop Machinery Benchmarks. Journal of the American Society of Farm Managers and Rural Appraisers, 2014.
22 Farmland Prices Coming Under Pressure Farm incomes have fallen and market is reacting This is likely to continue as market adjusts to new situation Watch closely if interest rates start to climb Image Source: Kauffman and Cowley, Loan Volumes Continue Rising as Lower Farm Incomes Persist,
23 Immediate and Substantial Relief from Rent Reduction is Unlikely
24 Monetary Policy Environment is Evolving Source: Federal Reserve Board of Governors
25 Farm Interest Rates Remain Low
26 Long-Term Rates Remain Low How would people react to rising interest rates? Could have big impact on farmland values
27 Farmland Prices Likely to Remain Under Pressure
28 Farmland Values Likely to Remain Under Pressure Land values under the assumption of 200 bushel per acre corn, and 3.5% capitalization rate, current IN High Quality farmland = $9,266/acre
29 Farm Interest Expense on the Rise
30 Government Payments Will Not be as Large as in Previous Downturns
31 Perspective on the Situation
32 Building Your Strategy for the Shifting Environment
33 Producer Strategies for Success in Today s Environment 1. Stay laser focused on costs 2. Manage working capital 3. Pay attention to debt repayment capacity 4. Pursue good deals with discipline 5. Scout and crunch numbers 6. Manage lending relationships 7. Don t forget about price risk 8. Think beyond crop insurance when managing risk 9. Consider alternatives
34 Final Thought for Navigating Today and Tomorrow s Ag Environment Focus on management and strategic plan Deploy resources today for tomorrow s reality versus defending yesterday s decisions Peter Drucker Focus on Building Strategies to Take Advantage of the Key Trends and Maintaining Flexibility to Guard Against the Big Risks
When Do Farm Booms Become Bubbles?
When Do Farm Booms Become Bubbles? Brent Gloy Director, Center for Commercial Agriculture 2012 Agricultural Symposium Federal Reserve Bank of Kansas City Kansas City, MO July 16, 2012 Background Agriculture
More informationFarmland Values Will the Boom Turn Bust?
Farmland Values Will the Boom Turn Bust? Top Producer Seminar January 30, 2013 Brent Gloy Director, Center for Commercial Agriculture Bgloy@purdue.edu 765 494 0468 Agenda Is it a bubble? How much higher
More informationWhat s Ahead for Farmland Trends? How do Young Farmers Fit In?
What s Ahead for Farmland Trends? How do Young Farmers Fit In? Tomorrow s Top Producer Seminar January 29, 2013 Brent Gloy Director, Center for Commercial Agriculture Bgloy@purdue.edu 765-494-0468 Agenda
More informationFarm Finance Update. Nate Kauffman Omaha Branch Executive and Economist Federal Reserve Bank of Kansas City. March 17, 2017
Farm Finance Update March 17, 2017 Nate Kauffman Omaha Branch Executive and Economist Federal Reserve Bank of Kansas City The views expressed are those of the author and do not necessarily reflect the
More informationCenter for Commercial Agriculture
Center for Commercial Agriculture The Great Margin Squeeze: Strategies for Managing Through the Cycle by Brent A. Gloy, Michael Boehlje, and David A. Widmar After many years of high commodity prices and
More informationLynn Paulson SVP, Director of Agri-Business Development, Bell State Bank & Trust
Lynn Paulson SVP, Director of Agri-Business Development, Bell State Bank & Trust Email: lpaulson@bellbanks.com o Nearly unprecedented period of prosperity and profitability for row crop and grain producers
More informationMacroeconomic Outlook for U.S. Agriculture
Macroeconomic Outlook for U.S. Agriculture Nathan Kauffman Omaha Branch Executive and Economist Federal Reserve Bank of Kansas City May 18, 216 The views expressed are those of the author and do not necessarily
More informationAgricultural Economic Update
Agricultural Economic Update March 2, 217 Nate Kauffman Omaha Branch Executive and Economist Federal Reserve Bank of Kansas City The views expressed are those of the author and do not necessarily reflect
More informationMacroeconomic Outlook: Implications for Agriculture. It has been 26 years since we have experienced a significant recession
Macroeconomic Outlook: Implications for Agriculture John B. Penson, Jr. Regents Professor and Stiles Professor of Agriculture Texas A&M University Our Recession History September 1902 August1904 23 May
More informationRisk & Rewards A Roadmap for Your Farm in By: Mark Jensen SVP & Chief Risk Officer Farm Credit Services of America & Frontier Farm Credit
Risk & Rewards A Roadmap for Your Farm in 2017 By: Mark Jensen SVP & Chief Risk Officer Farm Credit Services of America & Frontier Farm Credit Service Area Overview Serve all of Iowa, Nebraska, South Dakota,
More informationJason Henderson Vice President and Branch Executive Federal Reserve Bank of Kansas City Omaha Branch April 10, 2012
Jason Henderson Vice President and Branch Executive April 1, 212 The views expressed are those of the author and do not necessarily reflect the opinions of the Federal Reserve Bank of Kansas City or the
More informationCREDIT IN A CHANGING ENVIRONMENT. Rick Nelson Vice President, Agribusiness
CREDIT IN A CHANGING ENVIRONMENT Rick Nelson Vice President, Agribusiness 1 Who is 100,000 member co-op Headquartered in Louisville Kentucky 1,100 employees 95 offices in Kentucky, Tennessee, Ohio, Indiana
More informationTop Producer Conference Chicago, Illinois January 21, 2009
Top Producer Conference Chicago, Illinois January 21, 2009 A Primer on Risk Management 2009 Jeff Beal JERRY GULKE S STRATEGIC MARKETING SERVICES, INC. PO BOX 6222, ROCKFORD, IL, 61125 Phone: 602-795-5893
More informationMANAGING THE RISK CAPTURING THE OPPORTUNITY IN CROP FARMING. Michael Boehlje and Brent Gloy Center for Commercial Agriculture Purdue University
MANAGING THE RISK CAPTURING THE OPPORTUNITY IN CROP FARMING by Michael Boehlje and Brent Gloy Center for Commercial Agriculture Purdue University Farming has always been a risky business with the returns
More informationNebraska Economic Update
Nebraska Economic Update Nathan Kauffman Omaha Branch Executive and Economist Federal Reserve Bank of Kansas City March 26, 215 Overview of the Federal Reserve System The Fed is the Central Bank of the
More informationJason Henderson Vice President and Branch Executive Federal Reserve Bank of Kansas City Omaha Branch May 17, 2011
Jason Henderson Vice President and Branch Executive May 17, 2011 The views expressed are those of the author and do not necessarily reflect the opinions of the Federal Reserve Bank of Kansas City or the
More informationInvesting Agricultural Land. Michael Swanson Ph.D. Wells Fargo
Investing Agricultural Land Michael Swanson Ph.D. Wells Fargo Economic and Commodity Risk Everything is connected. We just can t see how. A single loop from a subsystem Livestock Corn Ethanol Gasoline
More informationCredit Conditions for Young and Beginning Farmers. by Nathan S. Kauffman 1
Credit Conditions for Young and Beginning Farmers by Nathan S. Kauffman 1 Introduction Agricultural credit conditions for young and beginning farmers are shaped by lenders perception of the trade-off between
More informationPurdue Agricultural Economics Report
Purdue Agricultural Economics Report November 2011 Managing The Risk Capturing The Opportunity In Crop Farming Michael Boehlje and Brent Gloy*, Center for Commercial Agriculture Farming has always been
More informationCROP BUDGETS, ILLINOIS, 2017
CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2017 Department of Agricultural and Consumer Economics University of Illinois July 2017 Introduction
More informationCROP BUDGETS, ILLINOIS, 2019
CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2019 Department of Agricultural and Consumer Economics University of Illinois September 2018
More informationCROP BUDGETS, ILLINOIS, 2018
CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2018 Department of Agricultural and Consumer Economics University of Illinois February 2018
More informationNebraska Economic Outlook
Nebraska Economic Outlook Nathan Kauffman Omaha Branch Executive and Economist Federal Reserve Bank of Kansas City August 3, 16 The views expressed are those of the author and do not necessarily reflect
More informationINSIGHTS FROM AGRICULTURAL LENDERS. January 11 th, 2019 Top Farmer Conference Beck Agricultural Center Dr. Brady Brewer
INSIGHTS FROM AGRICULTURAL LENDERS January 11 th, 2019 Top Farmer Conference Beck Agricultural Center Dr. Brady Brewer bebrewer@purdue.edu AGRICULTURAL LENDER SURVEY Survey expectations and past results
More informationFINANCING IN AN EVOLVING AGRICULTURE DOWNTURN. Federal Reserve Bank of Chicago November 29, 2016 Paul E. Anderson EVP- CCO
FINANCING IN AN EVOLVING AGRICULTURE DOWNTURN Federal Reserve Bank of Chicago November 29, 2016 Paul E. Anderson EVP- CCO GreenStone $8.0 billion in assets 24,000 members 36 branch offices 510 employees
More informationRevenue and Costs for Illinois Grain Crops, Actual for 2012 through 2017, Projected 2018 and 2019
CROP COSTS Department of Agricultural and Consumer Economics University of Illinois Revenue and Costs for Illinois Grain Crops, Actual for 2012 through 2017, Projected 2018 and 2019 Department of Agricultural
More informationBUYERS, BUBBLES, AND BUTTERFLIES Senior Analyst Darin Newsom. DTN/The Progressive Farmer 2010 Ag Summit December 10, 2010
BUYERS, BUBBLES, AND BUTTERFLIES Senior Analyst Darin Newsom DTN/The Progressive Farmer 2010 Ag Summit December 10, 2010 Buyers -! "In other words, demand driven markets! "Demand driven markets: Increased
More informationRevenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2011 through 2016, Projected 2017 and 2018
CROP COSTS Department of Agricultural and Consumer Economics University of Illinois Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2011 through 2016, Projected 2017 and
More informationA Symposium Sponsored by the Federal Reserve Bank of Kansas City July 16-17, Session 1: When Do Farm Booms Become Bubbles?
A Symposium Sponsored by the Federal Reserve Bank of Kansas City July 16-17, 2012 Session 1: When Do Farm Booms Become Bubbles? When Do Farm Booms Become Bubbles? (Manuscript) Dr. Brent Gloy Director,
More informationAbility to Pay and Agriculture Sector Stability. Erin M. Hardin John B. Penson, Jr.
Ability to Pay and Agriculture Sector Stability Erin M. Hardin John B. Penson, Jr. Texas A&M University Department of Agricultural Economics 600 John Kimbrough Blvd 2124 TAMU College Station, TX 77843-2124
More informationSaturday, January 5, Notes from Al
Get This Newsletter Every Saturday from Al Kluis Commodities..."Your Markets, Right Now"...AlKluis.com Saturday, January 5, 2013 Notes from Al Happy New Year and welcome to a volatile 2013. It has been
More informationFarm Financial Update
Farm Financial Update Tina Barrett Nebraska Farm Business, Inc. Nebraska Farm Business, Inc. The Nebraska Farm Business Association was started in 1976 as part of Cooperative Extension & The University
More informationCourse Materials THE FARM ECONOMY AND THE FUTURE OF AG LENDING
Course Materials THE FARM ECONOMY AND THE FUTURE OF AG LENDING Michael Boehlje Center for Commercial Agriculture Purdue University and Senior Associate Centrec Consulting West Lafayette, Indiana boehljem@purdue.edu
More informationCropWatch.unl.edu Nov. 6, 2014
University of Nebraska-Lincoln CropWatch.unl.edu Nov. 6, 2014 Tightening Your Belt; Refocusing on Profitability This article by Tina Barrett, executive director of Farm Business Inc., is the first in a
More informationSteven D. Johnson. Presentation Objectives
January 30, 2013 Steven D. Johnson Farm & Ag Business Management Specialist (515) 957-5790 sdjohns@iastate.edu www.extension.iastate.edu/polk/farm-management Presentation Objectives Define Shallow Loss
More informationTHE ROLE OF DEBT IN FARMLAND OWNERSHIP
2nd Quarter 2011 26(2) THE ROLE OF DEBT IN FARMLAND OWNERSHIP Brian C. Briggeman JEL Classifications: Q14, Q15 Keywords: Agricultural Finance, Debt, Farmland Farm real estate debt often plays a key role
More informationChapter 4. Agricultural Finance Calum G. Turvey, W.I. Myers Professor of Agricultural Finance
Chapter 4. Calum G. Turvey, W.I. Myers Professor of General Outlook The financial condition of New York s agricultural economy in 2014 is holding steady if not improving over 2013. Although there is some
More informationMacroeconomic Risks for Farmer Cooperatives
Macroeconomic Risks for Farmer Cooperatives KFSA Directors & Management Meeting Hutchinson, KS November 21 st, 2011 Brian C. Briggeman Associate Professor and Director of the Arthur Capper Cooperative
More informationINSIGHTS REPORT VOLUME 14 WHAT S INSIDE. Five considerations for effective financial planning in 2018.
INSIGHTS REPORT VOLUME 14 WHAT S INSIDE Five considerations for effective financial planning in 2018. Revisit your risk management strategies to prepare for success in the beef industry. How changes to
More informationCASH RENT WITH BONUS LEASING ARRANGEMENT: DESCRIPTION AND EXAMPLE
FEFO 11-17 September 27, 2011 CASH RENT WITH BONUS LEASING ARRANGEMENT: DESCRIPTION AND EXAMPLE A cash rent with bonus leasing arrangement is a variable cash rent lease that has a base rent and the potential
More informationWHY WE AREN T LIKELY TO SEE A REPLAY OF THE 1980s FARM CRISIS
WHY WE AREN T LIKELY TO SEE A REPLAY OF THE 1980s FARM CRISIS Wendong Zhang Assistant Professor, Dept. of Economics Iowa State University Why We Aren t Likely to See A Replay of 1980s Farm Crisis Dr. Wendong
More informationFinancial Challenges Facing Nebraska Producers in 2015 Tina Barrett Executive Director Nebraska Farm Business, Inc.
Financial Challenges Facing Nebraska Producers in 2015 Tina Barrett Executive Director Nebraska Farm Business, Inc. Nebraska Farm Business, Inc. The Nebraska Farm Business Association was started in 1976
More informationSuppose a farmer is eligible what triggers a corn PLC Payment? Suppose a farmer is eligible what triggers a corn County ARC Payment?
AAE 320 Fall 2015 Final Exam Name: 1) (20 pts. total, 2 pts. each) True or False? Mark your answer. a) T F Wisconsin s dairy industry maybe important in the U.S., but production in New York far exceeds
More informationBalancing Business and Financial Risk Michael Langemeier, Associate Director, Center for Commercial Agriculture
July 2014 Balancing Business and Financial Risk Michael Langemeier, Associate Director, Center for Commercial Agriculture This article is one of a series of financial management articles that will examine
More informationPost Harvest Marketing Tips
Post Harvest Marketing Tips (from my best friends) Edward Usset Grain Marketing Economist, University of Minnesota usset001@umn.edu Corn & Soybean Digest columnist Center for Farm Financial Management
More informationStructure and Function of the Federal Reserve System
1/17/17 Economic Outlook Cortney Cowley Economist Federal Reserve Bank of Kansas City Omaha Branch October, 17 The views expressed are those of the author and do not necessarily reflect the opinions of
More informationSuppose a farmer is eligible what triggers a corn PLC Payment? Suppose a farmer is eligible what triggers a corn County ARC Payment?
AAE 320 Fall 2016 Final Exam Name: 1) (20 pts. total, 2 pts. each) True or False? Mark your answer. a) T F Wisconsin is the world s largest cranberry production region, producing almost half of global
More informationHow Will Rising Interest Rates and Fluctuating Exchange Rates Affect U.S. Agriculture
How Will Rising Interest Rates and Fluctuating Exchange Rates Affect U.S. Agriculture Jason Henderson, PhD Associate Dean and Director of Purdue Extension January 11, 2018 How Do Interest Rates and Exchange
More informationWill We See A Recession This Year?
Will We See A Recession This Year? Rising Rates Are Here This week, the Federal Reserve Bank (Fed) signaled their intention to raise their target interest rate when they meet in mid-march. If they do,
More informationcvacoop.com PROEDGE CONSULTING OUR GRAIN MARKETING FUNDAMENTALS
CONSULTING Do you utilize industry professionals to advise you on the various aspects of your farm business like accounting, insurance, taxes, or technology? How about Grain Marketing? PROEDGE CONSULTING
More informationThe Farm Debt Crisis of the 1980S: a Review Essay
The Annals of Iowa Volume 51 Number 3 (Winter 1992) pps. 288-293 The Farm Debt Crisis of the 1980S: a Review Essay Gilbert C. Fite ISSN 0003-4827 Copyright 1992 State Historical Society of Iowa. This article
More informationAgricultural Risk Coverage County (ARC CO) vs. Price Loss Coverage (PLC)
Agricultural Risk Coverage County (ARC CO) vs. Price Loss Coverage (PLC) Carl Zulauf, Ohio State University, November 2014 The 2014 farm bill gives Farm Service Agency (FSA) farms a 1 time opportunity
More informationMeasuring Risk and Uncertainty Michael Langemeier, Associate Director, Center for Commercial Agriculture
February 2015 Measuring Risk and Uncertainty Michael Langemeier, Associate Director, Center for Commercial Agriculture This article is the second in a series of articles pertaining to risk and uncertainty.
More informationFinancial Planning and Cash Flow Budgeting for 2006
Financial Planning and Cash Flow Budgeting for 2006 Hands-on Applications By Paul Ellinger and Bruce Sherrick Outline FAST Tools overview Benefits of financial planning Components of financial plan Getting
More informationJason Henderson Vice President and Branch Executive Federal Reserve Bank of Kansas City Omaha Branch September 27, 2011
Jason Henderson Vice President and Branch Executive September 27, 211 The views expressed are those of the author and do not necessarily reflect the opinions of the Federal Reserve Bank of Kansas City
More informationJason Henderson Vice President and Branch Executive Federal Reserve Bank of Kansas City Omaha Branch September 2012
Jason Henderson Vice President and Branch Executive September 2012 The views expressed are those of the author and do not necessarily reflect the opinions of the Federal Reserve Bank of Kansas City or
More informationRECESSION AND RECOVERY IN MISSOURI AND THE U.S.
RECESSION AND RECOVERY IN MISSOURI AND THE U.S. Alison Felix Senior Economist Federal Reserve Bank of Kansas City The views expressed are those of the presenter and do not necessarily reflect the positions
More informationA Long Slog Ahead for US Agriculture
Volume 1, Second Quarter, 2018 In This Issue Trends... 2 Farmland Index... 5 Our Thoughts... 7 A Long Slog Ahead for US Agriculture As was the case last year, the US agricultural sector remains in a state
More informationImpact of Crop Insurance on Land Values. Michael Duffy
Impact of Crop Insurance on Land Values Michael Duffy Introduction Federal crop insurance programs started in the 1930s in response to the Great Depression. The Federal Crop Insurance Corporation (FCIC)
More informationFinding the New, New Normal in Agriculture
Finding the New, New Normal in Agriculture Policy. Economy. Practices John M. Blanchfield 2016 Utah Bankers Ag Outlook and Conference January 28, 2016 John.blanchfield@verizon.net New Congress, New Ag
More informationThe Farm Safety Net: The Good and Not So Good Michael Boehlje and Michael Langemeier Center for Commercial Agriculture Purdue University
The Farm Safety Net: The Good and Not So Good Michael Boehlje and Michael Langemeier Center for Commercial Agriculture Purdue University USDA recently announced that they project net farm income to decline
More informationFALL 2018 AGRICULTURAL LENDER SURVEY RESULTS
FALL 2018 AGRICULTURAL LENDER SURVEY RESULTS A Contents Key Takeaways... 2 Introduction... 3 Agricultural Economy... 4 Farm Profitability and Economic Conditions... 4 Land Values and Cash Rent Levels...
More informationDCP VERSUS ACRE in 2013 For Indiana Farms
DCP VERSUS ACRE in 2013 For Indiana Farms The extension of the last farm bill for 2013 crops means that individuals need to make the decision of whether to participate in the regular Direct and Countercyclical
More informationWhat is in Store for the Agricultural Land Market?
February 2015 What is in Store for the Agricultural Land Market? Michael Langemeier, Associate Director, Center for Commercial Agriculture Michael Boehlje, Distinguished Professor, Center for Commercial
More informationU.S. & Missouri Economic Outlook
U.S. & Missouri Economic Outlook Missouri Government Finance Officers Association Jason Brown Economist The views expressed are those of the presenter and do not necessarily reflect the positions of the
More informationBrady Brewer, Allen Featherstone, Christine Wilson, and Brian Briggeman Department of Agricultural Economics Kansas State University
Agricultural Lender Survey Brady Brewer, Allen Featherstone, Christine Wilson, and Brian Briggeman Department of Agricultural Economics Kansas State University Results: Fall Survey, 2015 Survey Summary
More informationDenis Nadolnyak (Auburn, U.S.) Valentina Hartarska (Auburn University, U.S.)
Denis Nadolnyak (Auburn, U.S.) Valentina Hartarska (Auburn University, U.S.) 1 Financial markets and catastrophic risks Emerging literature studies how financial markets are affected by catastrophic risk
More informationSuppose a farmer is eligible what triggers a corn PLC Payment? Suppose a farmer is eligible what triggers a corn County ARC Payment?
AAE 320 Fall 2014 Final Exam Name: 1) (20 pts. total, 2 pts. each) True or False? Mark your answer. a) T F Wisconsin s cranberry industry maybe important in the U.S., but production in Canada far exceeds
More informationMerricks Capital Wheat Basis and Carry Trade
Merricks Capital Wheat Basis and Carry Trade Executive Summary Regulatory changes post the Global Financial Crisis (GFC) has reduced the level of financing available to a wide range of markets. Merricks
More informationA BULLISH CASE FOR CORN AND SOYBEANS IN 2016
A BULLISH CASE FOR CORN AND SOYBEANS IN 2016 Probabilities for higher prices, and the factors that could spur price rallies. Commodity markets tend to move on three variables: perception, momentum and
More informationOpportunities and challenges for agriculture. How will agriculture and the swine industry fare in today s economic climate? Opportunities.
The outlook for the swine industry and its relationship with the global economy Brian C. Briggeman Associate Professor and Director of the Arthur Capper Cooperative Center How will agriculture and the
More informationSecond Quarter 2016 Earnings Conference Call. 20 May 2016
Second Quarter 2016 Earnings Conference Call 20 May 2016 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the
More informationfactors that affect marketing
Grain Marketing / no. 26 factors that affect marketing Crop Insurance Coverage Producers who buy at least 80 percent Revenue Protection for corn are more likely to indicate that crop insurance is an important
More informationChart Pattern Secrets
Chart Pattern Secrets April 09, 2019 Next Alert: 04/11/19 The Trading System: Application of Trading Chart Patterns with Futures and Option Contracts Copyright 1997 All rights reserved. 1 The dollar made
More informationENDOWMENT ASSET ALLOCATION Insights from University of Illinois Treasury
University of Illinois Alma Mater statue ENDOWMENT ASSET ALLOCATION Insights from University of Illinois Treasury Purpose of an Endowment Fund The University of Illinois has an active endowment of over
More informationU.S. & District Economic Outlook
U.S. & District Economic Outlook Nebraska LEAD Program February 5, 2015 Jason Brown Senior Economist The views expressed are those of the presenter and do not necessarily reflect the positions of the Federal
More informationARC vs. PLC Enrollment Decisions
ARC vs. PLC Enrollment Decisions April 2014 Steven D. Johnson Farm & Ag Business Management Specialist (515) 957-5790 sdjohns@iastate.edu www.extension.iastate.edu/polk/farm-management FSA Commodity Crop
More informationNational Marketing Year Average Price less than the Reference Price ($3.70). Suppose a farmer is eligible what triggers a corn County ARC Payment?
AAE 320 Fall 2016 Final Exam Name: KEY 1) (20 pts. total, 2 pts. each) True or False? Mark your answer. a) T_X_ F Wisconsin is the world s largest cranberry production region, producing almost half of
More information83 Annual USDA Outlook Conference Agriculture at the Crossroads Energy, Farm & Rural Policy
83 Annual USDA Outlook Conference Agriculture at the Crossroads Energy, Farm & Rural Policy Alternatives to Risk Management: Confronting Conventional Wisdom by Dave Juday World Perspectives, Inc. www.worldperspectives.com
More informationArchie Flanders University of Arkansas Northeast Research and Extension Center Keiser, AR. The Farm Bill Decision Making Process
Archie Flanders University of Arkansas Northeast Research and Extension Center Keiser, AR The Farm Bill Decision Making Process Presentation at the 2014 Arkansas Rice Expo Grand Prairie Center August 1,
More information2017 Farm Bank Performance Report
2017 Farm Bank Performance Report 2017 Farm Bank Performance Report Key Findings The banking industry is the nation s most important supplier of credit to agriculture providing nearly 50 percent of all
More informationINSIGHTS REPORT VOLUME 08 WHAT S INSIDE. A variable swine market means there are key areas producers should focus on for shortand long-term planning.
INSIGHTS REPORT VOLUME 08 WHAT S INSIDE A variable swine market means there are key areas producers should focus on for shortand long-term planning. With the current state of the ag economy, it s more
More informationAgricultural Outlook Forum 1999 Presented: Monday, February 22, 1999
Agricultural Outlook Forum 1999 Presented: Monday, February 22, 1999 Farm Credit Conditions During the Agricultural Contraction of the 198's and Now Robert N. Collender Senior Financial Economist, Economic
More information2018 Farm Bill Economic Principles and Policy Challenges
2018 Farm Bill Economic Principles and Policy Challenges Bradley D. Lubben Ph.D. Extension Associate Professor, Policy Specialist, Faculty Fellow, Rural Futures Institute, and Director, North Central Extension
More informationChart Pattern Secrets
Chart Pattern Secrets April 02, 2019 Next Alert: 04/04/19 The Trading System: Application of Trading Chart Patterns with Futures and Option Contracts Copyright 1997 All rights reserved. 1 The dollar made
More informationSecond Quarter 2011 Earnings Conference Call. 18 May 2011
Second Quarter 2011 Earnings Conference Call 18 May 2011 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the
More informationAGRICULTURAL LENDER SURVEY RESULTS
Summer 2017 AGRICULTURAL LENDER SURVEY RESULTS Summer 2017 / Agricultural Lender Survey Results / 1 Contents Key Takeaways... 3 Introduction... 4 Agricultural Economy... 5 Farm Profitability and Economic
More informationAAPEX February Two Iowa Sales Sioux County. Chicago Fed Survey October Iowa Realtors Survey November, 2010
The Farmland Market: Buy, Sell, Hold Average Value Per Acre of Iowa Farmland Source: Iowa Agriculture Experiment Station The Market Two Iowa Sales Sioux County Parcel 1 80 acres, 70+ GSR - $3,260 Parcel
More informationRISK MANAGEMENT AND THE NEW 2014 FARM BILL
RISK MANAGEMENT AND THE NEW 2014 FARM BILL Paul D. Mitchell Associate Professor, Ag and Applied Economics March 11, 2014 Email pdmitchell@wisc.edu Office: 608-265-6514 http://www.aae.wisc.edu/pdmitchell/extension.htm
More informationPrimary and Alternative Crop Budgets along with Marketing for Presented by: Josh Tjosaas, Northland College FBM
Primary and Alternative Crop Budgets along with Marketing for 2019 Presented by: Josh Tjosaas, Northland College FBM Quick Quiz Which farmer is the most profitable per acre with Spring Wheat at $6.00 per
More informationAn Analysis of Historical Illinois Farmland Valuations
Southern Illinois University Carbondale OpenSIUC Research Papers Graduate School Fall 2016 An Analysis of Historical Illinois Farmland Valuations Benjamin Johnson bj89@siu.edu Follow this and additional
More informationTortilla Association
Tortilla Association Commodity Session Robert D. Bresnahan May 18, 2016 Late Imperial China The Ultimate Principle 221 B.C. to 206 B.C. When goods become extremely expensive, then they must become inexpensive
More information2014 Iowa Farm Business Management Career Development Event. INDIVIDUAL EXAM (150 pts.)
2014 Iowa Farm Business Management Career Development Event INDIVIDUAL EXAM (150 pts.) Select the best answer to each of the 75 questions to follow (2 pts. ea.). Code your answers on the answer sheet provided.
More informationFinancial Crisis Impact on Long Term Ag Forecast
1 Financial Crisis Impact on Long Term Ag Forecast Paul N. Ellinger University of Illinois pellinge@illinois.edu www.farmdoc.uiuc.edu/ellinger 217-333-5503 Economic Conditions Surging commodity prices
More informationFourth Quarter 2016 Earnings Conference Call. 23 November 2016
Fourth Quarter 2016 Earnings Conference Call 23 November 2016 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning
More informationLoan Deficiency Payments versus Countercyclical Payments: Do We Need Both for a Price Safety Net?
CARD Briefing Papers CARD Reports and Working Papers 2-2005 Loan Deficiency Payments versus Countercyclical Payments: Do We Need Both for a Price Safety Net? Chad E. Hart Iowa State University, chart@iastate.edu
More informationEXECUTIVE SUMMARY US WHEAT MARKET
MERRICKS CAPITAL SOFT COMMODITIES QUARTERLY THOUGHT PIECE DECEMBER 2016 IN THIS QUARTERLY THOUGHT PIECE WE HIGHLIGHT HOW THE EXIT OF BANK FUNDING AND LARGE GRAIN INVENTORY IS PROVIDING OPPORTUNITIES IN
More informationCommodity Programs in 2014 Farm Bill. Key Provisions
Commodity Programs in 2014 Farm Bill Gary Schnitkey, Jonathan Coppess, Nick Paulson, and Carl Zulauf University of Illinois The Ohio State University (February 13, 2014) 1 Key Provisions Eliminates direct,
More informationBrady Brewer, Allen Featherstone, Christine Wilson, and Brian Briggeman Department of Agricultural Economics Kansas State University
Agricultural Lender Survey Brady Brewer, Allen Featherstone, Christine Wilson, and Brian Briggeman Department of Agricultural Economics Kansas State University Results: March Survey, 215 Survey Summary
More informationMarket Outlook. David Reinbott.
Market Outlook David Reinbott Agriculture Business Specialist P.O. Box 187 Benton, MO 63736 (573) 545-3516 http://extension.missouri.edu/scott/agriculture.aspx reinbottd@missouri.edu Cotton Fundamentals
More information