Most Recent Blog Posts

Apr 14, 2015

Oil prices & other economic factors impacting farm revenue

In my road warrior travels interacting with producers and agribusiness leaders, there is much discussion concerning oil prices and other economic....More
Apr 07, 2015

Family dynamics in business: The curse of wealth and compensation

A “kiss of death” to businesses is bringing the younger generation into the business on a manager’s salary, but with hired employee work or skill....More
Mar 31, 2015

Family dynamics in business: Handling employee issues

Handling employee issues in a farm business, particularly a family-run farm business, is tricky. Sometimes, a meeting is a better choice than an....More
Mar 24, 2015

Impact of family dynamic on business dynamics

How often do we find a major change in operations or expansion makes perfect economic sense; however, the important human elements trump economics....More
Mar 17, 2015

Do you have the sixth C of credit?

The five Cs are important criteria for credit, but a sixth C is very important in terms of management, which frequently makes a difference in the....More
Mar 10, 2015

Impact of education on income and unemployment

Education does have an impact on employment, income, and who participates in the workforce. Moving forward, the agriculture industry will be starved....More
Mar 03, 2015

Should I buy the farm?

The first question I ask is, “Will the farm purchase be consistent with your business, family, and personal goals?” Too often investment decisions....More
Feb 24, 2015

Farm working capital 101

By definition, working capital is current assets, which can be turned to cash in one year or less, minus current liabilities due within one year....More
Feb 17, 2015

Ag borrowers who will struggle, part 2

There are certain characteristics of borrowers who will struggle at the end of the agricultural commodity super cycle. This includes farmers who won....More
Feb 10, 2015

Ag borrowers who will struggle, part 1

In the coming years, there will be ag borrowers who will struggle. Three specific groups to watch are those businesses that utilized too much of....More
Feb 03, 2015

Do you know your cost of production?

Many producers, including larger operations, quickly get themselves into a serious financial condition if they are complacent and fail to monitor....More
Jan 27, 2015

Advice for teens who want to farm

At a recent event, David Kohl offered advice to teenagers who want to farm or be in the agriculture business. Focusing on different types of....More
Jan 20, 2015

Decision making with negative margins, part 2: Returning to positive margins

Let’s examine five-steps for returning to positive margins in your agriculture business, in no particular order. Some of these steps can be used to....More
Jan 13, 2015

Decision making with negative margins, part 1

The reality is setting in that some producers, particularly those in the grain sector, will experience negative margins in 2015, which is something....More
Jan 06, 2015

2015 Kickoff

Everyone has had their fill of football bowl games, and now we are into the college and professional football playoffs, which usually provide some....More
What's Road Warrior?

Dave Kohl is an ag economist specializing in business management and ag finance. He can be reached at sullylab@vt.edu.

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