Taxes, on average, are going down for owners of farmland across Ohio and are expected to decline at an even faster rate beginning in 2020, a study by researchers with The Ohio State University shows.
Economists from the Ohio State University looked at the trends in Chapter 12 filings each year, evaluating whether the recent downturn in commodity prices is impacting the number of bankruptcies agriculture is seeing.
Corn prices are on the rise, while soybean prices are projected to continue to dip this year before recovering a bit in 2020, according to government projections.
And this year, national net farm income, which takes into account many commodities not grown in Ohio, is projected to increase 10 percent over last year’s total, forecasts from the U.S. Department of Agriculture (USDA) show.
The United State Department of Agriculture (USDA), on March 6th, forecasted U.S. net farm income for 2019 to increase 10% from last year, from $63.1 billion in 2018 to $69.4 billion in 2019. This forecast is a positive sign to producers after a drop in farm income in 2018.
Farmers can actually file under four possible chapters of the bankruptcy code, said Robert Dinterman, a researcher with Ohio State University’s Department of Agricultural, Environmental, and Development Economics. They are chapters 7, 11, 12, and 13.
Researchers at the Ohio State University told PolitiFact that farmers and fishermen, especially those who exceed the Chapter 12 debt limit, can also file for Chapter 7 and Chapter 11 bankruptcies.
Chapter 12 bankruptcy filings have been fairly stable over the past few quarters and have stabilized to around the same levels as when chapter 12 became a permanent fixture of the bankruptcy code in 2005. The US experienced elevated levels of chapter 12 filings towards the end of 2009 through mid-2012, but aside from the second quarter of 2017 there has not been a quarter with more than 150 chapter 12 bankruptcies filed and that is a good sign for the agricultural sector.
Continued low commodity prices and uncertainty due to the trade war with China has economists predicting another fall for farm incomes in Ohio.
Farming in America is a complex undertaking. There exists great diversity in the size, structure and organization of farms. All farming operations are integral to the U.S. economy and the supply of reliable food sources. To understand the agricultural sector better and maintain good agricultural policies, data collection methods and measurement tools need to keep up with the current realities of farming.
Ani Katchova in National Academies news release. The report provides recommendations to help USDA identify new approaches for effectively collecting data and reporting information about American agriculture, given the increased complexity of farm businesses in recent decades.
Ani Katchova, Ian Sheldon, and Ben Brown in Columbus Dispatch
This fall most farmers in Ohio will be grinning at the numbers they see on their yield monitors and scowling at the numbers they see in the markets as combines roll through crop fields.
It’s a paradox in the heartland. Farmers are looking at silo-busting harvests and thin wallets.
The United State Department of Agriculture (USDA), on August 30, forecasted U.S. net farm income for 2018 to decline 13% from last year, from $75.5 billion in 2017 to $65.7 billion in 2018 (USDA 2018). If realized, U.S. net farm income would decrease to levels witnessed in 2016 (Figure 1). This decline is even larger when we consider inflation-adjusted values, showing a 14.8% decrease in real U.S. net farm income. The USDA also made a similar downward forecast for U.S. net cash income. Net cash income is projected to drop 12% in 2018, from $104 billion in 2017 to $91.5 billion in 2018.
Ani Katchova completed her three-year term on the Agricultural & Applied Economics Association’s (AAEA) Executive Board. Dr. Katchova is an Associate Professor and Farm Income Enhancement Chair at the Department of Agricultural, Environmental, and Development Economics at The Ohio State University. AAEA is a leading organization for applied and agricultural economists to present their work and network with colleagues.
Dr. Allen Klaiber and the graduate program committee would like to ask you to share in their congratulations of the 2017-2018 winner of the Bernie Erven Teaching Award, Feng-An Yang. This award is presented annually to the graduate student who best exemplifies the tradition of teaching excellence that Bernie Erven achieved throughout his distinguished career as a professor in Agricultural, Environmental, and Development Economics.
AEDE Associate Professor Ani Katchova is serving as a chair for a review panel for the USDA’s Economic Research Service (ERS) Farm Income and Wealth Forecast Program.
“Our goal is to study how ERS makes farm income forecasts and estimates for the U.S. and state farm sector income and to offer recommendations for improvement,” Katchova said.
She received funding from a cooperative agreement with ERS to support this work.
There are two types of tax values that are on the minds of farmers: market value (the value per acre for highest and best potential use) and current agricultural use value. Farmers who farm more than 10 acres and participate in the Current Agricultural Use Value (CAUV) program typically benefit from lower tax bills because tax is calculated based on below true market values. The program began in 1973 with the intention of leveling the playing field for farmers by computing farmland values based on crop yield, soil conditions, interest rates, and crop prices that have proven to be volatile
Issues Affecting Rural and Urban Communities Around the World Associate Professor Joyce Chen: “Climate Change, Rural Livelihoods, and Adaptation” - https://youtu.be/etjvI3GP35U PhD Candidate Bo Feng: ''Social Mobility, Economic Opportunity and Interregional Migration'' - https://youtu.be/ntTTcsX7ZCc PhD Candidate Rodrigo Perez Silva: “Knowledge Spillovers” - https://youtu.be/xmS2Uyn4jZ4
Even amid lagging profits from corn and soybeans, Ohio farmers have a reason to be somewhat optimistic, according to Ani Katchova, an associate professor and Farm Income Enhancement Chair in the Department of Agricultural, Environmental, and Development Economics at The Ohio State University. Katchova spoke at the Agricultural Policy and Outlook Conference on November 9, 2017, an annual event organized by AEDE at Ohio State, presenting resea
With some improvements in 2017 in farm income and farm assets, optimism is slowing growing for finding the bottom in the current low agricultural economic cycle.
Ani Katchova in Columbus Dispatch
Ohio’s farm economy is a bit like an ambiguous weather forecast: partly cloudy with a chance of gloom but the possibility of sunshine.
Masterminds, held on October 5th, is a new event that features The Ohio State University's strongest colleges and most brillant faculty who hold endowed positions. The first endowed chair was established at The Ohio State University in 1963. Since then, more than 170 endowed chair positions have been created to benefit The Ohio State University for generations to come. Three AEDE Professors who hold Endowed Chairs were honored.
The agricultural economy is currently experiencing a downturn, with lower farm incomes, flattening land values and cash rents, and increased levels of financial stress, according to Ohio State University agricultural economists speaking at the Farm Science Review Ask the Expert sessions. The outlook for the agricultural economy though is not as negative as we are not experiencing the conditions in the 80s when grain prices dropped, debt soared, and numerous farms went bankrupt.