Updates Archive

2016 Cow-Calf Production Shows Less Profitability

In 2015 the University of Nebraska Agricultural Economics Department formulated four cow-calf budgets. The Sandhills cow/calf producer budget is for a herd of 500 cows and the data is from a panel of producers in Cherry County.
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5 Resolutions for Farm Finances in 2016

As 2015 comes to a close, many people will be turning to New Year’s resolutions. Many resolutions are really an effort to change unhealthy habits or to adopt new ones to improve your life or business. As we think about recent shifts in the farm economy, there are many changes producers should consider to improve the financial health of their operation in the new year.
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The Importance of Updating and Maintaining a Marketing Plan

Every operation should develop and maintain a marketing plan. When developing a marketing plan, complexity and detail are less important than having something you are comfortable working with and adjusting. In an earlier BeefWatch article (July, 2015), we discussed what goes into a marketing plan. This article will focus on the importance of updating your marketing plan on a regular basis and how to go about doing so.
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Six Factors Affecting Profit

Six factors interact to affect farm and ranch profits. The number of production units, production per unit, direct costs, value per unit, mix of enterprises, and overhead costs all interact to determine profitability.
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November 2015 NE-IA Dairy Budgets

NE-IA dairy producers did much better in November than October and 3 of 4 budgets broke even or better. A big part of that improvement was from a PPD that rose by 49 cents per cwt. The Central FMMO price for butterfat rose by 28 cents per pound, while butterfat test was 0.09% higher. The protein price dropped by nearly 40 cents per pound with only a 0.09% rise in protein content. Feed prices dropped, corn down 4 cents per bushel, soybean meal down $17.90 per ton and fat dropped by about 1 cents per pound. All of these changes led to an increase of 46 cents per cwt.
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October Nebraska-Iowa Dairy Budget

Even though the FMMO butterfat price, protein price and the producer price differential declined in October compared to September, the calculated milk price received rose. The rise was due to increased butterfat and protein content and a drop in the somatic cell count of the FMMO milk. A slight decline in cull cow price did negatively affect income also. Corn price remained the same as September, soybean meal price dropped by nearly $9 per ton and alfalfa hay price dropped by $17.50 per ton.
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Webinar series to address farm financial management issues

Crop and livestock producers, consultants and others interested in learning how to address critical issues related to farm finances are encouraged to view an upcoming webinar series. Beginning on Nov. 23 at 10 a.m. CST, experts from the Department of Agricultural Economics at the University of Nebraska–Lincoln will discuss financial issues affecting Nebraska farmers and ranchers during webinars held each Monday for five consecutive weeks. The webinar series is sponsored by the UNL Department of Agricultural Economics, Nebraska Extension and the Nebraska Department of Agriculture.
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Profitability vs. Feasibility and the Paradox of Purchasing Farmland

Profitability implies that the present value of the return flows over the life of the investment is greater than the present value of the cost flows over the life of the investment, where present value is the discounted (current) value of the flows. The cash inflows include annual returns from the investment, tax savings from depreciation and interest, and the salvage value, or selling price, of the asset at the conclusion of the investment.
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September Dairy Budget

September milk productions returns for the NE-IA budget improved compared to August. On the 20,000 pound budget, total feed cost annual declined by $38 and income rose by $48 for a total improvement of $86 or about $0.10 per cow per day. The improved income came from higher butterfat production and price even though protein price declined. Soybean meal price decline contributed the most to feed cost declines while corn price added a little as well.
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Cash Rent Flex-Calc

The Cast Rent Flex-Calc is an Excel spreadsheet designed to help landowners and tenants set up terms for using a base rental rate with bonus to adjust cash rental rates for price or revenue fluctuations. Users must have Microsoft Excel or a compatible program to use the decision aid.
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