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September 1, 2022
2022 Ag Lenders Conference Presentations
2022/2023
KSU Agricultural Lenders Meetings
Garden City & Manhattan … Continued high 2023 Fertilizer & other Crop Input Costs….
• … Continued high 2023 Fertilizer & other Crop Input Costs….
• …
May 1, 2023
Ag Law Issues
taxpayer’s main home and one other
residence. See, e.g., Boehme … residence interest). If the other residence is rented out … for a fair rent to persons
other than family members. The …
February 19, 2024
Ag Law Issues
affidavit, refund, claim, or other document related to the
ERC” … the amount of the credit or meets a gross receipts test.
The … test.
The bill also makes other changes to the ERC relevant …
October 20, 2016
Grain Market Outlook
e projected for “current” MY 2016/17. The “large crop‐over supply‐low price” situation that now
exists in World and U.S. wheat markets continues to have a strong prevailing negative influence on World
wheat prices.
However, the broader large crop‐over supply‐low price” situation in the World wheat market may be
“masking” or “obscuring” at least a couple of other important market issues. …
December 30, 2016
Grain Market Outlook
and 34.1%
ending stocks‐to‐use projected for “current” MY 2016/17. The “large crop‐over supply” situation that now
exists in World and U.S. wheat markets continues to have a strong prevailing negative influence on U.S. and
World wheat prices.
However, the broader large crop‐over supply‐low price” situation in the World wheat market may be “hiding”
at least a couple of other important market issues. …
June 17, 2015
Commodity Program Papers
decisions. In total, 231 meetings were conducted by Agricultural … base acres versus 85% in the other
programs, but also the sheer … communicated at educational meetings that the later 4 years of …
August 28, 2015
Financial Management
Executive Summary
Solvency ratios are normally used as an indicator of the long‐term viability of the farm business. Farms with
high leverage have a greater likelihood of going bankrupt. Bankruptcy occurs because a farm loses its equity.
However, for a farm to lose equity, it must generate negative profits, which might imply that highly leveraged farms
are earning less profit than those farms without debt. Thus it might be possible to predict future profitability based on
solvency ratios. This paper tests that hypothesis but finds a naïve model of looking at past profit to predict future
profits works the better than using solvency ratios.
Introduction
The Farm Financial Standards Council currently lists 21 ratios that can be used to evaluate a farm business.
Three of these ratios are solvency ratios. Solvency ratios assess the amount of debt capital used by a farm business
and help determine whether the business can meet long‐term obligations. Any business that uses debt capital incurs
an obligation to make principle and interest payments. If a business has too much debt, periods of low profitability
can lead to insufficient cash flow to cover the principle and interest. Thus, the use of debt increases the financial risk
of a farm business and the likelihood the farm business might become insolvent.
While solvency ratios are designed to measure a company’s financial health, can they also be used to predict
future profitability? Because debt capital introduces interest expense to a farm business, net farm income will be
lower compared to a farm with just equity capital (everything else being equal). Going forward though, future net
farm income might not always be lower for higher leveraged farms as these farms may have taken on more debt in
order to fund profitable segments of their business.
Another potential complication of using solvency ratios to predict future farm profitability is farmland
control. As land is the most valuable asset class on most crop farms, controlling that land is an important decision.
Few farms have enough of their own equity to supply all the land they need without either purchasing land with debt
capital or renting land. Farms that have taken on more debt to purchase land will need to rent less land than a similar
farm with lower debt levels and farming the same acreage base. The interest rate and the cash rental rate, determine
Kansas State University Department Of Agricultural Economics Extension Publication …
August 28, 2015
KFMA Research
Executive Summary
Solvency ratios are normally used as an indicator of the long‐term viability of the farm business. Farms with
high leverage have a greater likelihood of going bankrupt. Bankruptcy occurs because a farm loses its equity.
However, for a farm to lose equity, it must generate negative profits, which might imply that highly leveraged farms
are earning less profit than those farms without debt. Thus it might be possible to predict future profitability based on
solvency ratios. This paper tests that hypothesis but finds a naïve model of looking at past profit to predict future
profits works the better than using solvency ratios.
Introduction
The Farm Financial Standards Council currently lists 21 ratios that can be used to evaluate a farm business.
Three of these ratios are solvency ratios. Solvency ratios assess the amount of debt capital used by a farm business
and help determine whether the business can meet long‐term obligations. Any business that uses debt capital incurs
an obligation to make principle and interest payments. If a business has too much debt, periods of low profitability
can lead to insufficient cash flow to cover the principle and interest. Thus, the use of debt increases the financial risk
of a farm business and the likelihood the farm business might become insolvent.
While solvency ratios are designed to measure a company’s financial health, can they also be used to predict
future profitability? Because debt capital introduces interest expense to a farm business, net farm income will be
lower compared to a farm with just equity capital (everything else being equal). Going forward though, future net
farm income might not always be lower for higher leveraged farms as these farms may have taken on more debt in
order to fund profitable segments of their business.
Another potential complication of using solvency ratios to predict future farm profitability is farmland
control. As land is the most valuable asset class on most crop farms, controlling that land is an important decision.
Few farms have enough of their own equity to supply all the land they need without either purchasing land with debt
capital or renting land. Farms that have taken on more debt to purchase land will need to rent less land than a similar
farm with lower debt levels and farming the same acreage base. The interest rate and the cash rental rate, determine
Kansas State University Department Of Agricultural Economics Extension Publication …
July 26, 2018
Grain Market Outlook
18 U.S. soybean crop production prospects near
August 1st.
What is “Unknown” – The Strength of U.S. Soybean Exports Through Fall 2018: The imposition by the
Chinese government of a 25% tariff on U.S. soybean imports into their country has had a decidedly negative
impact on U.S. soybean prices over the past few weeks. However, in terms of actual shipments of U.S.
soybeans at the current time, U.S. soybean exports are still running “on pace” to meet USDA projections for
the …
May 8, 2020
Ag Law Issues
in price manipulation and other
practices deemed unfair … fruits, and groceries and many other commodities
not related … from using
or permitting others to use their distribution …