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Even during a growing season when 1.5 million fewer acres of soybeans and corn were planted in Ohio, average farm incomes in the state are likely to increase compared to last year, according to an agricultural economist with The Ohio State University.

The Current Agricultural Use Valuation (CAUV) program allows farmland devoted exclusively to commercial agriculture to be taxed based on their value in agriculture, rather than the full market value, resulting in a substantially lower tax bill for the farmer.

Financial stress, expressed as the ability of farmers to repay loans, is important to follow during times of low farm income.  A new report “Ohio Agricult

AEDE Associate Professor Ani Katchova’s service as Chair of a USDA Review Panel ended this past summer when she and the rest of the panel members delivered their findings after a two-year long review of the USDA’s Economic Research Service (ERS) Farm Income and Wealth Forecast Program.

Farm bankruptcies across the nation are up, but Ohio’s rate remains among the lowest in the Midwest, according to a new analysis by researchers at The Ohio State University College of Food, Agricultur

 AEDE faculty and graduate students have a long-standing history of membership and leadership with the Agricultural and Applied Economics Association (AAEA).

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 wit

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.

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.  

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. In general, the second quarter, which consists of the period between April 1st and June 30th, is the quarter that typically has the highest number of bankruptcies in a year.

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.

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. These declines in farm income reverse the small rebound in income in 2017 to what would be the second lowest values in inflation-adjusted terms since 2002.

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.

 

AEDE 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. 

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.

farm

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 research with post docs Lawson Connor, Robert Dinterman, and Ana Claudia Sant’Anna in the Farm Income Enhancement Program.

Masterminds

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.

Farm Income

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

Katchova and Ahearn receiving the AAEA-AFM Outstanding Research Award in Chicago

AEDE’s Ani Katchova recently received an Outstanding Research/Quality of Communication Award in the agricultural finance sector by the Agricultural and Finance Management (AFM) section of the Agricultural and Applied Economics Association (AAEA).  Katchova and her co-author Mary Ahearn, retired from USDA-ERS, were nominated for this award based on their publication, “Dynamics of farmland ownership and leasing: implications for young and beginning farmers” published in Applied Economic Perspectives and Policy in 2016. 

Declining farm income and farmland values likely will lead to an increase in the number of farmers who are delinquent on their loans and eventually a rise in farm bankruptcies, predicted a pair of Ohio State University agricultural economists.

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