Road Warrior http://cornandsoybeandigest.com/blog/70011/feed Dave Kohl is an ag economist specializing in business management and ag finance. He can be reached at sullylab@vt.edu. en Repayment risk in a variable economic environment http://cornandsoybeandigest.com/blog/repayment-risk-variable-economic-environment <div class="node-body blog-body"><p>Lessons from the past find that the stress point in business financials is repayment capacity given debt service commitments. Repayment capacity and the management factors that influence it should be front and center in many farmers’ game plans. </p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/repayment-risk-variable-economic-environment" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/repayment-risk-variable-economic-environment#comments Issues Management Road Warrior Tue, 25 Nov 2014 21:32:00 +0000 94671 at http://cornandsoybeandigest.com 5 Characteristics of profitable farmers http://cornandsoybeandigest.com/blog/5-characteristics-profitable-farmers <div class="node-body blog-body"><p>The grain industry is taking a body blow punch as prices have moderated over the year. If the lower prices continue into 2015 and beyond, there will be a “punch in the mouth” which will disrupt many producers’ strategic planning in the middle and later parts of the decade. A certain set of producers will still be profitable in the economic moderation. Let’s examine some of their characteristics.</p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/5-characteristics-profitable-farmers" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/5-characteristics-profitable-farmers#comments Issues Management Road Warrior Tue, 18 Nov 2014 17:05:00 +0000 94521 at http://cornandsoybeandigest.com Economic straight talk: The grain industry http://cornandsoybeandigest.com/blog/economic-straight-talk-grain-industry <div class="node-body blog-body"><p>The great commodity super cycle has burned out. It lasted for a decade, two and one-half times longer than any previous super cycle boom time over the past century. The easy money has been made in the grain industry; however, top-flight managers can still earn a profit when they focus on production and operations, marketing, risk management, and, of course, carefully monitoring finances. </p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/economic-straight-talk-grain-industry" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/economic-straight-talk-grain-industry#comments Issues Management Road Warrior Tue, 11 Nov 2014 20:35:00 +0000 94401 at http://cornandsoybeandigest.com Formal education in agriculture doesn't mean success http://cornandsoybeandigest.com/blog/formal-education-agriculture-doesnt-mean-success <div class="node-body blog-body"><p>Too often young people attend a university for the degree rather than the education, which can be a waste of money and time. As a professor, I am not disputing the value of an education; however, some of the most motivated lifelong learners are outside a degree program and they often make very successful entrepreneurs.</p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/formal-education-agriculture-doesnt-mean-success" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/formal-education-agriculture-doesnt-mean-success#comments Issues Management Road Warrior Tue, 04 Nov 2014 22:15:00 +0000 94261 at http://cornandsoybeandigest.com Tips for farmer-lender meetings, communication http://cornandsoybeandigest.com/blog/tips-farmer-lender-meetings-communication <div class="node-body blog-body"><p>Recently, a farmer asked a panel I was a member of, “How often should farmers and lenders communicate during the year, particularly during the planning season?” The panel recommended having a meeting during planning season followed by a quarterly or semi-annual assessment, along with a year-end evaluation, which is imperative to determine financial success. </p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/tips-farmer-lender-meetings-communication" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/tips-farmer-lender-meetings-communication#comments Issues Finance Road Warrior Tue, 28 Oct 2014 15:18:00 +0000 94151 at http://cornandsoybeandigest.com Financial measure of efficiency for farm businesses http://cornandsoybeandigest.com/blog/financial-measure-efficiency-farm-businesses <div class="node-body blog-body"><p>In many of my speeches I emphasize that better is better before bigger is better; that is, get efficient before you embark on growth. What is a good financial measure of efficiency for farm businesses? One of my favorites is the operating expense to revenue ratio. </p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/financial-measure-efficiency-farm-businesses" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/financial-measure-efficiency-farm-businesses#comments Issues Management Road Warrior Tue, 21 Oct 2014 20:50:00 +0000 94031 at http://cornandsoybeandigest.com What's the coverage ratio for your farm? http://cornandsoybeandigest.com/blog/whats-coverage-ratio-your-farm <div class="node-body blog-body"><p>One of the key financial ratios that agricultural lenders use to determine repayment ability is the term debt and lease coverage ratio. It measures the amount of debt obligations (debt service which includes principal and interest), compared to the debt servicing capacity (net income plus interest and depreciation). </p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/whats-coverage-ratio-your-farm" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/whats-coverage-ratio-your-farm#comments Issues Management Road Warrior Tue, 14 Oct 2014 18:05:00 +0000 93941 at http://cornandsoybeandigest.com Slipping farm profitability http://cornandsoybeandigest.com/blog/slipping-farm-profitability <div class="node-body blog-body"><p>After stellar financial performance from a net farm income standpoint from 2009 to 2012, median net incomes are moving back to levels observed in the period between 2003 and 2008. In that era, median net farm income for the average group was typically in the $40,000 to $60,000 range. </p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/slipping-farm-profitability" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/slipping-farm-profitability#comments Issues Road Warrior Tue, 07 Oct 2014 19:46:00 +0000 93831 at http://cornandsoybeandigest.com Got the racecar, but don’t know how to drive It http://cornandsoybeandigest.com/blog/got-racecar-don-t-know-how-drive-it <div class="node-body blog-body"><p>How often do we see, particularly in family business transition, a situation in which the younger generation returns to a business that has been a profitable high performer for the previous generation, but it continuously fails to “finish the race” or underperforms compared to peers when the younger generation steps into the driver’s seat? </p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/got-racecar-don-t-know-how-drive-it" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/got-racecar-don-t-know-how-drive-it#comments Issues Management Road Warrior Wed, 01 Oct 2014 00:47:00 +0000 93671 at http://cornandsoybeandigest.com The power of inflation: Time is not on your side! http://cornandsoybeandigest.com/blog/power-inflation-time-not-your-side <div class="node-body blog-body"><p>As you think about retirement, keep in mind how inflation can impact your investment strategies. At a 4% historical long-term inflation rate, $50,000 becomes $25,000 in buying power by the year 2032 (72 / 4 = 18 years). As a goal, one should aspire to generate a return on your investments including dividends and appreciation that meets or exceeds the rate of inflation to maintain buying power. </p></div> <div class="og_rss_groups"><ul class="links"><li class="og_links first last"><a href="/blog/road-warrior">Road Warrior</a></li> </ul></div><p><a href="http://cornandsoybeandigest.com/blog/power-inflation-time-not-your-side" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/power-inflation-time-not-your-side#comments Issues Management Road Warrior Tue, 23 Sep 2014 14:48:00 +0000 93531 at http://cornandsoybeandigest.com