Saturday, September 10, 2011
Friday, September 9, 2011
From Jay Frye
Harvest loss math link below...
http://corn.agronomy.wisc.edu/Management/L032.aspx
Our Reply: Thanks for the helpful tool Jay!
Thursday, September 8, 2011
Producer's Financial Records
In a nationwide and Canadian webcast for ag lenders sponsored by Web Equity Solutions, inquiring minds asked if I am seeing upgrades to financial records by producers.
My answer is yes and no. In the affirmative, the top 25% of producers economically have very sound financial record systems. That is, they complete annual and sometimes quarterly balance sheets on a cost and market value basis. They complete accrual adjusted income statements and develop projected cash flow statements.
What makes this group exceptional is that they not only complete the statements, but also use them in business decision-making. For example, one young producer at my ag lender school indicated that he monitors performance by comparing projected to actual results. He makes a note to his lenders concerning deviations and whether they are created by macro or microeconomic events.
Many of this top echelon of producers will benchmark their operation to others in the industry and in some cases, by enterprise. Exceptional data sets like FINBIN by institutions, state and lender databases are excellent resources with very clean data. Much of the data is compiled following Farm Financial Standards Council recommendations.
Does record keeping pay? A study I conducted a few years ago found that profits were twice as high for those operations that keep good records.
One danger that I see on the horizon is many business decisions and lending decisions are being made using only tax records, without factoring in accrual adjustments for inventory, payables, receivables, etc. This can be a recipe for disaster.
As seen on David Kohl's Corn & Soybean Digest Blog
My answer is yes and no. In the affirmative, the top 25% of producers economically have very sound financial record systems. That is, they complete annual and sometimes quarterly balance sheets on a cost and market value basis. They complete accrual adjusted income statements and develop projected cash flow statements.
What makes this group exceptional is that they not only complete the statements, but also use them in business decision-making. For example, one young producer at my ag lender school indicated that he monitors performance by comparing projected to actual results. He makes a note to his lenders concerning deviations and whether they are created by macro or microeconomic events.
Many of this top echelon of producers will benchmark their operation to others in the industry and in some cases, by enterprise. Exceptional data sets like FINBIN by institutions, state and lender databases are excellent resources with very clean data. Much of the data is compiled following Farm Financial Standards Council recommendations.
Does record keeping pay? A study I conducted a few years ago found that profits were twice as high for those operations that keep good records.
One danger that I see on the horizon is many business decisions and lending decisions are being made using only tax records, without factoring in accrual adjustments for inventory, payables, receivables, etc. This can be a recipe for disaster.
As seen on David Kohl's Corn & Soybean Digest Blog
Fertilizer Prices Higher
Five of the eight major fertilizers were just slightly higher compared to a month earlier. DAP had an average price of $703/ton, MAP $721/ton, potash $637/ton, urea $590/ton and anhydrous $805/ton.
As seen on DTN.com
Market Softens a Bit
Corn market bulls may be getting a little nervous as fundamental indicators continue to sag. The carry in the futures spreads has been strengthening again this week, indicating a slightly more bearish commercial outlook, said DTN.
As seen on marketwatchonline.com
Wednesday, September 7, 2011
NFL Season Kicks Off- Thursday
ESPN News - Peyton Manning (208 straight starts) will miss opener, Colts chairman Bill Polian told ESPN NY 1050
Opening Calls
CORN: Corn futures are called 3 to 7 cents higher.
SOYBEANS: Soybean futures are expected to start the day session 6 to 10 cents higher.
CATTLE: Cattle futures are expected to open 10 lower to 10 higher.
HOGS: Lean hog futures are called 10 to 30 cents higher this morning on Turnaround Tuesday bargain hunting.
As seen on marketwatchonline.com email blast
SOYBEANS: Soybean futures are expected to start the day session 6 to 10 cents higher.
CATTLE: Cattle futures are expected to open 10 lower to 10 higher.
HOGS: Lean hog futures are called 10 to 30 cents higher this morning on Turnaround Tuesday bargain hunting.
As seen on marketwatchonline.com email blast
"Productivity Gap"
Closing the Productivity Gap
By Charles Johnson
Progressive Farmer Contributing Editor
Supplying enough food to meet the ever-growing appetite of the world is a colossal challenge. The United Nations estimates the world head count is increasing by 78 million each year, about the size of the population of Germany. According to World Health Organization figures, as many as 3.5 million people a year -- or about 9,500 a day -- die due to malnutrition. By the time global population hits a projected 9 billion by 2050, food production around the world must be 70% greater than today's level to close the deficit between supply and demand. This is referred to as the "productivity gap."
Read the rest of the article
Farmland Auction Alert- Advanced Sealed Bid
Buchanan County Farmland Offered- Luloff Farm Partnership
Written offers being solicited and due September 8, 2011. Auction held for private bidders at 10 a.m. @ St. Patrick's Parish Center, Winthrop, IA
Closing: March 1, 2012
136 acres, sections 15 & 22 in Byron Township.
Luloff Farm Soil Map
Written offers being solicited and due September 8, 2011. Auction held for private bidders at 10 a.m. @ St. Patrick's Parish Center, Winthrop, IA
Closing: March 1, 2012
136 acres, sections 15 & 22 in Byron Township.
Luloff Farm Soil Map
Tuesday, September 6, 2011
Four Months to get New Farm Buildings Finished!
Farmers who are in the process of constructing new farm buildings or are thinking about it now have less than four months to go if they want to take advantage of 100% bonus depreciation and deduct all of the cost on their 2011 tax return.
Remember, there is no loss limitations on this deduction unlike Section 179 and a net farm loss can be used to offset other income such as wages, interest, rents, etc.
Also, the building must be finished before the end of the year, not simply paid for. Usually an occupancy permit from the county should be sufficient to show a "in service" status. If the building is not finished until 2012, then the deduction will occur in 2012 and the it will be limited to 50%, not 100% (unless they change the rules).
As seen on The Farm CPA Blog
Remember, there is no loss limitations on this deduction unlike Section 179 and a net farm loss can be used to offset other income such as wages, interest, rents, etc.
Also, the building must be finished before the end of the year, not simply paid for. Usually an occupancy permit from the county should be sufficient to show a "in service" status. If the building is not finished until 2012, then the deduction will occur in 2012 and the it will be limited to 50%, not 100% (unless they change the rules).
As seen on The Farm CPA Blog
Monday, September 5, 2011
Sunday, September 4, 2011
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