PROFITABILITY MATTERS: Tips to Manage Nutrients
Farmers have been bringing food to American tables for generations. But we have a new challenge—there will be 2 billion additional mouths to feed by 2050. To keep up with such rapid population growth, we need farming to be both profitable and sustainable. While farmers never plan to use more nutrients than needed, changes in the growing season can make it difficult to pinpoint the right amount to use. In the fifth episode of “Management Matters,” Dr. Howard Brown, manager of agronomy services with GROWMARK, Inc., explains how farmers can effectively manage nutrients while protecting their profits. LAUNCH AUDIO [...]
PROFITABILITY MATTERS: Cover Crops
Fighting soil compaction, keeping nitrogen and phosphorous in your soil, and increasing your yield potential. Every farmer aims for these things, but how can you achieve them without spending more money than you have to? Every year, more farmers are adopting cover crops—the USDA Census of Agriculture report shows that U.S. farmers planted 10.2 million acres of cover crops in 2012—and for good reason. In this season’s last episode of “Management Matters,” Michael Plumer, coordinator with the Illinois Council on Best Management Practices (C-BMP), explains how farmers can take advantage of both the economic and environmental benefits of cover [...]
PROFITABILITY MATTERS: Stay Profitable in Uncertain Times
Aired: November 2014 Farmers deal with uncertainty on a regular basis, from fluctuations in weather to changes in market demand. But lower commodity prices and higher input costs pose a new challenge—staying profitable in a tough business climate. “We need to focus more on the financial management of the business than we have in recent years,” says Mike Boehlje, Ph.D., professor of agricultural economics at Purdue University. In the kickoff episode of “Management Matters: Focus on Profitability,” Boehlje explains how growers can make the most of the current economic situation and he offers advice to manage your farm’s finances [...]
PROFITABILITY MATTERS: Succession Planning
Aired: November 2014 What will happen to your farm when you retire? Many farmers will pass the reigns to their children, but the details of these transitions aren’t always clear. A succession plan is key to ensuring that your farming operation continues to be a success and that the next generation is prepared when the time comes. In the second episode of “Management Matters: Focus on Profitability,” Kevin Spafford, founder of Legacy by Design LLC, explains the importance of succession planning and shares tips on how farmers can effectively draft a plan of their own. LAUNCH AUDIO << Key [...]
PROFITABILITY MATTERS: Boosting Profitability in Times of Low Prices
Aired: December 2014 Over the past few years, many producers have gotten accustomed to high commodity prices. However, with prices now on the decline and costs remaining high, farmers face a more challenging financial situation. In the fourth episode of “Management Matters: Focus on Profitability,” David Kohl, agricultural finance author and professor emeritus at Virginia Tech University, explains that this downturn in the commodity supercycle calls for farmers to prioritize their financial management. He shares tips on how farmers can keep profits up in a tough economic climate, and he explains top characteristics of the most profitable farmers. LAUNCH [...]
PROFITABILITY MATTERS: Affordable Care Act Brings Changes to Small Farms
As small business owners, farmers often need to purchase health insurance for themselves and their families. In addition to this coverage, they also are responsible for deciding which healthcare options they will offer to their employees. The Affordable Care Act (ACA) brought changes to the health care system, and these changes extend to farmers’ health insurance as well. In the sixth episode of “Management Matters: Focus on Profitability,” Andy Biebl, agricultural tax specialist, CPA and principal at CliftonLarsonAllen LLP, explains the ACA’s impact on farmers, the available insurance options and how farmers can choose the best coverage for their operation. [...]
MANAGEMENT MATTERS: Cutting $100 per Acre in Soybeans
Aired: November 2015 2015 delivered a tough growing season for many Illinois farmers, and lower soybean prices to follow. For incomes to increase in 2016, either commodity prices need to rise or farmers need to cut costs. “Looking at where commodity prices are now, farmers’ costs need to be $100 less in some cases just to break even. They need to focus on their cost structure and see where they can afford to make cuts,” says Gary Schnitkey, Ph.D., professor of agricultural and consumer economics at the University of Illinois. In the kickoff episode of “Profitability Matters,” Schnitkey explains how [...]
MANAGEMENT MATTERS: 2016 Finances
Aired: November 2015 According to the USDA Economic Research Service, U.S. net farm income is set to decline by 36 percent in 2015, and commodity prices are not expected to improve in the foreseeable future. “Farmers are going to see more financial stress in the next six months, but they have many resources available to stay ahead of the curve on finances,” says Farm Management Specialist Steven Johnson, Ph.D., with Iowa State University Extension and Outreach. In this episode of Profitability Matters, Johnson shares his insight on 2015 and 2016 commodity markets and steps farmers can take to ensure a [...]
MANAGEMENT MATTERS: Crop Insurance Opportunities
Lower commodity prices pose a unique challenge of staying profitable in a tough market. Crop insurance provides farmers with an important risk management tool, and this is especially important as farmers look at continuing tight margins in 2016. “Producers are trying to find a positive net return in their budgets for 2016 and it’s hard to find,” says Giles Distinguished Agricultural Economics Professor Keith Coble, Ph.D., with Mississippi State University. “But good management and smart decisions will go a long way this year.” In this episode of Profitability Matters, Coble shares his insight on crop insurance decisions and steps farmers [...]
MANAGEMENT MATTERS: Farmland Values
Lower commodity prices have brought tight margins to farmers around the country—and last year farm income was the lowest since 2002. However, farm economics works in a cycle and land values are beginning to adjust. "The economics of crop production drives land values,” says Brent Gloy, Ph.D., agricultural economist with Agricultural Economic Insights. “These have fallen in recent years, so we can look for land values to follow.” In this episode of Profitability Matters, Gloy shared his insights on 2015 and 2016 farmland values, negotiating rents and financing tips for a profitable 2016. Launch audio>>> Key Takeaways: Land values and [...]
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