By: Chris L. Bruynis, Assistant Professor & OSU Extension Educator
This year is turning out to be a challenging year not only due to the weather, but due to low revenue streams into many family farm businesses. Granted not all family farms will find themselves facing financial issues, but there will be some that will. For those that will, the stress can be significant and management decisions paramount.
The starting place is to determine if the issue is a profitability, liquidity, or solvency issue. Managers need to determine if the lack of profitability is temporary due to an isolated condition or if the problem is likely to continue into future years if no business changes occur. If the business is not profitable, then management decisions need to be made to correct the problem. If management determines that business changes cannot correct the lack of profitability (like not having control over commodity prices), then... Read More »
By: Barry Ward, Leader, Production Business Management, Department of Agricultural, Environmental, and Development Economics
Production costs for Ohio field crops may be flat to slightly lower in 2015 but the profit picture looks poor, much the same as it did 2014. Variable costs for trend line Ohio corn and soybean production for 2015 will be slightly lower than 2014. Variable costs for corn (163 bushels per acre) for 2015 are projected to be $412 per acre. Variable costs for 2015 Ohio soybeans (48 bushels per acre) are projected to be $210 per acre. Lower energy and crop insurance costs and zero to slight increases for many other inputs have led to the slightly lower production cost projections for Ohio’s two major commodity crops.
With continued lower crop prices expected for 2015 returns will likely be low to negative for many producers. Projected returns above variable costs (contribution margin) range from $138 to $272 ... Read More »
By: Chris Zoller, Extension Educator, ANR
Over the years I have met with many farm families in barns, fields and around kitchen tables to discuss succession planning and all that it involves. These can sometimes be very stressful, difficult and emotional visits. Some families put off these discussions because the topic is one that many don’t like to consider. However, planning and preparation will be beneficial to all family members involved in the farm business.
Faculty at Penn State University, California State University and Old Dominion University published in the Journal of Extension the findings of a study they conducted of Pennsylvania farm families on the topic of farm succession planning. Below is a summary of the research findings.
In addition to growing... Read More »
In 1980 Doug Southgate, Cam Thraen and Carl Zulauf each started academic careers as Assistant Professors in OSU’s Department of Agricultural Economics and Rural Sociology. Thirty-five years later, each is retiring from OSU’s Department of Agricultural, Environmental and Development Economics (AEDE), leaving remarkable individual legacies in teaching, research and public engagement. Readers of this website (and previous off-line versions) will be no stranger to the work of Cam Thraen and Carl Zulauf, who are both frequent contributors to this forum, while former students of OSU and other institutions of higher education may have relied upon one or more of Doug Southgate’s books in the classroom.
The co-author of six books, Dr. Doug Southgate has influenced many students through his contributions to classroom favorites including the The World Food Economy and Agricultural Economics and Agribusiness, while engaging more genera... Read More »
By Larry R. Gearhardt, Assistant Professor and Field Specialist, Taxation
Owners of Agricultural land enrolled in the Current Agricultural Use Valuation (CAUV) property tax program in the twenty-four counties that are experiencing a reappraisal or triennial update in 2015 (payable in 2016) will see the highest CAUV values in history, based on preliminary numbers from the Ohio Department of Taxation. Similar to prior years, increases in values will be in the vicinity of 100% to 200%. However, lower crop prices and changes made to the CAUV formula by the Ohio Department of Taxation point to lower CAUV values in the future.
WHAT IS CAUV?
In 1972, Ohio voters approved a constitutional amendment that allowed qualified agricultural land to be valued at its current agricultural use value for real property tax purposes rather than fair market value. The home, home site and outbuildings are still valued at fair market valu... Read More »
Farmers Have Until April 7 to Update Yields, Reallocate Base Acres, and Make Final Selections
WASHINGTON, March 27, 2015 – Agriculture Secretary Tom Vilsack today provided farm owners and producers one additional week, until April 7, 2015, to choose between Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), the safety-net programs established by the 2014 Farm Bill. The final day to update yield history or reallocate base acres also will be April 7, 2015.
"This is an important decision for producers because these programs help farmers and ranchers protect their operations from unexpected changes in the marketplace," said Vilsack. "Nearly 98 percent of owners have already updated their yield and base acres, and 90 percent of producers have enrolled in ARC or PLC. These numbers are strong, and continue to rise. This additional ... Read More »
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Keith L. Smith, Ph.D., Associate Vice President for Agricultural Administration and Director, Ohio State University Extension TDD No. 800-589-8292 ( Ohio only) or 614-292-1868