by Brent Gloy
Most of those involved in agriculture understand that farming can be a volatile business, with wide swings in profitability and earnings. But just how wide are those swings and on average what should one expect in terms of a return for their investment in agricultural assets? This week we take a look at the historical experience of the rate of return on assets in agriculture. Continue reading
by David A. Widmar
The USDA recently released the latest estimates of sector-level net farm income. These data provide an overall measure of the economic and financial conditions of the agricultural sector. The latest forecast revealed a much higher forecast of net farm income than previously estimated. Those who regularly monitor these data – as Brent and I do – were surprised by the large, upward adjustment to sector income. This week we take a look at the latest data, the adjustments, and the implications moving forward. Continue reading
by Brent Gloy
Last week I thought that it would be a good time to look at farm sector financial conditions, particularly some ratios of repayment capacity. My timing could have been a little better because only a couple days after I wrote the post, USDA made an update to its farm sector income forecast. Usually you can count on these updates to be relatively minor. Not this time.