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.
On a recent spring afternoon, five AEDE 4106 Business Strategy students sat in a conference room hashing out how to reduce the amount of time it would take to get their products to market. They consulted an industry conditions report, checked their balance sheets, production schedules and marketing budget. These students aren’t running a real business but are CEOs, COOs and CFOs of a virtual company through the Capsim Capstone Business Strategy Simulation.
With deadlines set for enrollment in the 2014 farm bill’s crop programs in February and March, farmers have only a few weeks left to make decisions about key farm safety net decisions, recently said AEDE's Carl Zulauf. These decisions are significant considering that enrollment in the farm bill’s crop programs will last through the life of the legislation, which will expire after the 2018 crop year.
While cropland values in Ohio increased in each of the past three years, several factors, including continued low interest rates, low debt-to-asset ratios and lower profit margins, are likely going to make for a relatively flat land market in 2015, recently said Barry Ward an AEDE economist.
To help provide guidance and understanding of the financial and legal issues surrounding farmland leasing, Ohio State University Extension’s Agricultural and Resource Law program and Production Business Management program, which is overseen by AEDE's Barry Ward, will discuss the topic during a workshop to be held in four sites around the state.
While cropland values in Ohio increased in the past two years, they have remained flat, and in some cases declined depending on the land class, in 2014, Barry Ward, an AEDE economist and production business management leader for Ohio State University Extension recently said.
In a recent statewide survey of Ohio farmers, farm managers, landowners and farm equipment operators, Barry Ward found that, on average, custom farm work rates in the state of Ohio are rising. The survey findings are used by agriculture professionals to understand current market rates for farm services.
In the most recent issue of Choices, a publication of the Agricultural & Applied Economics Association (AAEA), research by AEDE faculty member Brian Roe examining risk tolerance by U.S. farmers is featured. Roe found that farmers are less tolerant of risk than nonfarm business owners but are more tolerant than the general population.
While cropland values in Ohio increased in 2012 and 2013, they are expected to remain flat or even decline in 2014, Barry Ward recently said at the opening of the 2013-2014 Agricultural Policy and Outlook Conference Series.