Finance-Accounting
Beyond what you pay for food and consumer goods, inflation impacts your balance sheet.
U.S. net farm income, a broad measure of farm profitability, is currently forecasted at $113.7 billion, down 4.5%, according to USDA’s most recent Farm Sector Income Forecast.
Inflation is exceptionally difficult to tame, says Chip Flory, Farm Journal Economist and “AgriTalk” Host: “To tame it, you have to kill it. If you kill it, you kill the economy, and it sends you into recession.”
The Federal Open Market Committee’s (FOMC) inflation target is 2%. Yet in February the rate, which is the measure of general price trends throughout the economy, was 6.4%.
Need a good conversation to fill some tractor or road time this spring? Listen to “The Farm CPA Podcast” with Paul Neiffer.
Collect and analyze the best financial data to aid decisions on your farm operation.
Think about how your farm has grown in size and scope over the past decade. Has your financial reporting followed suit?
See how rising costs impact you and your family.
For the sixth time in the past seven months, the rural economy has posted signs of weakness. That’s according to the Rural Mainstreet Index (RMI) from Creighton University.
Profitable farmers create financial habits that separate them from others. These habits, consistently applied through the years, add up, and the results are evident.
For a sixth consecutive month, the rural economy has posted signs of weakness. That’s according to the Rural Mainstreet Index (RMI) from Creighton University.
At Seven Springs Farm in Cadiz, Ky., the calculator drives decisions. With acute focus on ROI, Joe Nichols has expanded and contracted his farm’s size and scope through the years.
With higher interest rates the new norm, it’s time to assess your debt structure and interest rate risk.
In 2022, the average interest rates on farm loans skyrocketed from record lows to decade highs. While that jump is remarkable and expected to continue, a little perspective is needed.
Farmers can harvest incredible value by stress testing their business margins, says Chris Barron, a national financial consultant for Ag View Solutions and Iowa farmer.
While the fall of Silicon Valley Bank and Signature Bank is unique, the situation does provide lessons for farmer’s financial management and risk management.
Agricultural lending by U.S. farm banks increased 8.1% in 2022 to $103.1 billion, according to the American Bankers Association’s annual Farm Bank Performance Report.
If your spouse dies, look into filing Form 706 Federal Estate Tax Return with the IRS. Taking that step could help you protect farm assets so they pass to your heirs without estate taxes. The process isn’t automatic.
As we look ahead, here is what I have seen the best operations do in both good and challenging years.
Suppliers and retailers continue to cut glyphosate prices in the U.S. as the industry grapples with too much supplies. With no resolve in sight, one inputs analyst thinks glyphosate prices could remain low through 2023.
Wednesday’s interest rate decision broke a streak of 10 straight meetings where the Fed announced higher rates. Officials say another half-a-percentage-point hike is likely yet this year.
The 2023 crop is in the ground and growing steady, just like ag’s financial risks this year, according to Alan Rosendahl, farmer and senior vice president at Iowa State Bank in Kesley, Iowa.
If you’re ready to meet with an alternative lender, here are some points to keep in mind.
Despite the positive sentiment, local community bankers report concerns about lower commodity prices, the ‘big bank mess’ and another potential rate hike in June by the Fed.
Just as your crops will be doing soon, financial risks are growing this year.
Having another financing option can make all the difference when the right opportunity comes your way.
USDA’s first official net farm income forecast shows an expected 16% drop in 2023 net farm income, largely due to a decline in commodity prices and government payments with higher expenses and costs at the farm level.
As a 21st century farm manager, you’ve invested in high-tech tractors, more efficient irrigation systems and automated milking parlors. But what about your farm office?
An increasing number of farms might soon be unable to service their debt with existing assets. This means they face extremely difficult decisions and might be considering filing bankruptcy—which provides both opportunities and challenges.
Overall, cash rent levels will likely increase across all land classes. But, they’re less than the increases that happen between 2021 and 2022.