Final plan prepared by the 2002 Strategic Planning Committee () [more…]
Based on a survey conducted with the National Bison Association, the best current available estimate of the number of privately owned bison in the United States is more than 107,000 head. The value of the national bison inventory in 1997 was estimated at $232,134,542 and the value of production of the national bison herd was nearly $69,977,831. The primary business use of bison is meat sales, but other bison-related activities also are important. The average direct income for a job in the bison industry is $23,081, which exceeds the average income for employment in U.S. agriculture. Bison production in 1997 appears to have been a viable and profitable option for agricultural producers. Based on input from the census surveys received, the average net profit per head of bison was approximately $297.39 in 1997. (Vol. 65, No. 1, Pages 3-9) [more…]
Network hog production allows collaboration among farmers in meeting the scale, scope, and coordination characteristics of contract production operations initiated by processors, food companies, and input suppliers. This study addresses the financing capabilities of network hog production, based on a survey of lenders about a network’s access to debt capital and the related financing terms. Results indicate that commercial lenders, on average, would allow a maximum debt-to-asset ratio of 0.47, thus leaving significant equity capital needed by the farmers or from other investors. (Vol. 65, No. 1, Pages 10-14) [more…]
Differences in individuals’ risk attitudes often affect farm management decisions. In this paper, agricultural choice dilemmas are used to illustrate sources of risk, risk-returns trade-offs and a scale of risk attitudes. This scale has been used with farmers, professional farm managers, and agricultural lenders and can be useful in group decision situations. (Vol. 65, No. 1, Pages 15-20) [more…]
Despite the many advances in technology that can facilitate how one communicates with others, professional farm managers, and rural appraisers can still commit many sins of poor communication. Many well-educated professionals may know their subject well, yet make preventable communication blunders as they speak before large or small audiences or make individual contacts. With proper planning and preparation, professional farm managers, appraisers and consultants can work to avoid and correct these most frequent communications sins. Through effective communication they can develop the professional reputation required to be successful. (Vol. 65, No. 1, Pages 21-25) [more…]
A two-phased survey was undertaken to assess realities and perceptions of precision agriculture across farmers, extension and industry in Arkansas. Results show these groups have generally reached similar conclusions. We hypothesize that collaborative research and education efforts among these groups led to a consensus of opinion. This survey technique may be valuable to educators in other states wishing to assess precision agriculture or other innovated practices and gauge the impacts of their research and education efforts in these areas. (Vol. 65, No. 1, Pages 26-31) [more…]
Labor expense and availability are critical determinants of net returns from produce. Federal guest worker programs provide opportunity to hire temporary nonimmigrant workers in times of shortage. Comparison of farm-level returns using traditional hiring practices with current H-2A legislation and a proposed reform indicates both programs may increase harvest expenses. (Vol. 65, No. 1, Pages 32-42) [more…]
Geographic Information Systems (GIS) data are used to measure parcel specific environmental and visual amenities for 138 agricultural land sales in Wyoming. Land values are correlated with the environmental and visual amenity measurements as well as production attributes. This suggests there is potential for using GIS to measure attributes objectively that traditionally have been less quantifiable. (Vol. 65, No. 1, Pages 43-52) [more…]
Correlations between futures and cash prices indicate that to manage price risk in canola, the use of futures at the Winnipeg Commodity Exchange is preferred to the use of futures for soybeans, soybean oil or soybean meal. Although traditionally hedges are 1:1, risk could be further reduced by using a hedge ratio of about .8 to .9. Hedging in futures was superior to other preharvest marketing strategies. Selective storage was the most profitable harvest/postharvest strategy. The analysis was based on 1993-2000 data. (Vol. 65, No. 1, Pages 53-63) [more…]
Farm management/asset management is defined as the coordination and supervision of a farm business to increase long-term profits or to achieve other specified goals. It involves management in all areas of successful business operation, including production, marketing, finance, and personnel. This article explores fundamental aspects of each with application to professional farm management. (Vol. 65, No. 1, Pages 64-68) [more…]
The study reported herein focused on 453 tracts of irrigated cropland that were sold in South-central Idaho during 1993 to 1999. The objective of the study was to evaluate the effects of different attributes that impact farmland values, with emphasis on determining whether farmland values in the study area are appreciably influenced by nonagricultural development pressures. Models were developed and tested for different sizes of parcels. Results should be interesting and useful to persons interested in rural land values, such as landowners, potential landowners, lenders, appraisers and policymakers concerned with property taxes and land use. Results were consistent with a priori expectations, and indicated that study area farmland values are largely determined by factors that affect agricultural productivity (profitability). (Vol. 65, No. 1, Pages 69-77) [more…]
Precision farming (PF) patrons of an Ohio cooperative were surveyed. Adoption levels for PF component technologies were measured. Binomial probit analyses were used to assess perceived net benefits of the PF system. Results suggest that the value of the yield monitor is reliant on the presence of a global positioning system. (Vol. 65, No. 1, Pages 78-89) [more…]
The role of transaction costs and property rights theory considerations in farmer’s lease choice are explored, using data generated in an experimental design approach with a panel of Illinois row crop producers. Results indicate that these transaction-related characteristics, in combination with certain producer characteristics, significantly influence both farmers’ preferred leases and bidding behavior. (Vol. 65, No. 1, Pages 90-98) [more…]
The standard discounted earnings model is applied to Saskatchewan farmland for the test period 1979 to 1999. Each of the components of the earnings model is estimated, based on information available to investors at that time. The estimates are used to predict farmland values for each year in the test period, which are then compared to actual farmland prices. The resulting comparison of predicted to actual farmland values implies that the discounted earnings model is a reasonably good predictor of Saskatchewan Farmland prices. (Vol. 65, No. 1, Pages 99-106) [more…]
The recently published Agricultural Economics and Land Ownership Survey for 1999, by NASS/USDA reveals a substantial increase in the use of combined cash/share leases in Midwestern U.S. agriculture, based on the landlord portion of the survey. These changes, occurring nation-wide but varying among states, indicate potentially significant changes in leasing arrangements, perhaps reflecting the need for additional flexibility in the pricing of farmland leasing contracts. (Vol. 65, No. 1, Pages 107-110) [more…]