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Displaying 4141 - 4150 of 7386
Capital Managed
Days79 496280
Value Farm Production/Worker80 658,786494,970
Net … 3,515,3122,734,062
Value of Farm Production/Operator83 1,157,064611,247
Net …
County Summary
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est, East, and A
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East …
March 1, 2012
Basis
them to
make profitable production and managerial decisions …
January 1, 2002
Basis
the prices for
the meat products are not locked in as well …
March 20, 2015
Commodity Program Papers
The development of both products was led by Rick Gibson and …
February 11, 2015
Commodity Program Papers
these prices by the amount of production sold in that month to come …
August 28, 2015
Financial Management
2
whether renting or purchasing land is the most profitable option. However, even if purchasing land is more profitable
than renting, purchased land will not cash flow (Oltmans).
A third potential issue with accessing profitability using solvency ratios is the payment of loan principle. While
this does not affect profitability, the loan principle payment does take cash away from other areas where the cash
could be employed. Thus the loan principle could indirectly lower farm profitability.
As the preceding discussion indicates, it is not clear if solvency ratios can reliably predict future net farm
income. Given the easy with which the solvency ratios (particularly the debt‐to‐asset ratio) can be calculated, this
paper tests the ability of two solvency ratios to future net farm income. A positive result might indicate that a
solvency ratio could be used as a quick way to screen farms for future profitability.
Data and Methods
Data for this study comes from the Kansas Farm Management Association (KFMA) where farm information
has been collected since 1973. The KFMA program employs a set of field economists who typically assists 100 farmers
each to make management and tax decisions. As part of this process, farm‐level financial and production data are
collected and recorded. In this study, a panel data set of farms with 20 consecutive years of records was used (1995
to 2014).
For this study, three sets of comparisons were conducted. The first comparison divided farms into two groups
based on an initial debt‐to‐asset ratio. This initial debt‐to‐asset ratio grouping was based on the average debt‐to‐asset
ratio from 1995 through 1997. Each farm was then assigned to either the high‐risk group (i.e., the individual farm
debt‐to‐asset ratio was above the median) or the low risk group (i.e., the individual farm debt‐to‐asset ratio was
below the median). For each group the median net farm income per acre was computed for each year. The net farm
income per acre was used as a profitability measure to eliminate any size differences that net farm income might
cause.
The second comparison divided farms into two groups based on an initial solvency ratio. The solvency ratio is
not one of the 21 recommended FFSC ratios but it is a ratio commonly used with non‐agricultural businesses. The
solvency ratio is computed from net farm income plus depreciation and then divided by total debt capital. The
comparisons based on solvency were computed in a similar fashion to the debt‐to‐asset ratio comparison.
The final comparison was a baseline check to examine what would happen when dividing the farms into two
groups based just on the net farm income per acre. This constitutes the naïve model test. The comparison with
groups based on dividing by net farm income per acre was conducted similarly to the other two comparisons.
Kansas State University Department Of Agricultural Economics Extension Publication …
July 29, 2013
Research Papers and Presentations
size, farm type, or soil productivity) was a factor
in the yearly …
February 4, 2013
Macro and Global Economic Perspectives
Days Available
Days Available
2/4/2013
3
U.S. Ag Exports to China
Source: USDA, Foreign Agricultural Service
Demand for agricultural products has remained
strong, especially international demand.
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Soybeans (left
axis)
Red Meat
Frozen/Chilled
(right axis)
Million Metric Tons• …
December 1, 2003
Assessing Business Opportunities
about the organization
{ Products, services, value proposition …