Road Warrior http://cornandsoybeandigest.com/blog/70011/feed en 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 Biggest threats to young, beginning farmers http://cornandsoybeandigest.com/blog/biggest-threats-young-beginning-farmers <div class="node-body blog-body"><p>The saga of the young farmer and rancher continues as transition in the agriculture industry is in full bloom. While there is no surefire way to get started, there are some common threats, whether starting from scratch or entering a family business. Let’s examine some of the threats and pitfalls that frequently arise.</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/biggest-threats-young-beginning-farmers" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/biggest-threats-young-beginning-farmers#comments Issues Management Road Warrior Tue, 16 Sep 2014 17:36:00 +0000 93401 at http://cornandsoybeandigest.com Profit margin compression, part 3 – Price reality http://cornandsoybeandigest.com/blog/profit-margin-compression-part-3-price-reality <div class="node-body blog-body"><p>Inflation, while benign in the general economy, has been running full steam ahead in input and operating costs in the agriculture industry ranging anywhere from 5% to 10% annually. Combine this with increases in real estate taxes and the fixed cost component of equipment and machinery, and one can quickly observe how profit margins have quickly disappeared with lower commodity prices.</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/profit-margin-compression-part-3-price-reality" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/profit-margin-compression-part-3-price-reality#comments Corn Issues Soybeans Prices Road Warrior Mon, 08 Sep 2014 16:42:00 +0000 93251 at http://cornandsoybeandigest.com Profit margin compression, part 2: Operating expenses to revenue ratio http://cornandsoybeandigest.com/blog/profit-margin-compression-part-2-operating-expenses-revenue-ratio <div class="node-body blog-body"><p>The average producer on FINBIN databases typically spends 73-75¢ to generate $1 of income, leaving only roughly 25¢ for other financial obligations. It is disturbing that this ratio jumped above 80¢ in 2013 for the first time since 1995, illustrating severe margin compression, particularly among the average producers.</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/profit-margin-compression-part-2-operating-expenses-revenue-ratio" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/profit-margin-compression-part-2-operating-expenses-revenue-ratio#comments Issues Management Road Warrior Tue, 02 Sep 2014 15:48:00 +0000 93121 at http://cornandsoybeandigest.com Profit margin compression, part 1 http://cornandsoybeandigest.com/blog/profit-margin-compression-part-1 <div class="node-body blog-body"><p>In over 30 years analyzing and examining farm record data, I have noticed that profitability decline will usually precede cash flow and repayment ability issues by about two to three years. Could it happen this time?</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/profit-margin-compression-part-1" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/profit-margin-compression-part-1#comments Issues Management Road Warrior Tue, 26 Aug 2014 19:30:00 +0000 92921 at http://cornandsoybeandigest.com Global and domestic economic risk http://cornandsoybeandigest.com/blog/global-and-domestic-economic-risk <div class="node-body blog-body"><p>Currently, as of mid-August, geopolitical risk is the largest risk with a “code red.” The unrest in Ukraine and tension in the Middle East move markets daily. Unfortunately, agriculture is often the industry first affected by political and military unrest. </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/global-and-domestic-economic-risk" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/global-and-domestic-economic-risk#comments Issues Management Road Warrior Tue, 19 Aug 2014 20:16:00 +0000 92781 at http://cornandsoybeandigest.com Ag lenders talk about agriculture land values http://cornandsoybeandigest.com/blog/ag-lenders-talk-about-agriculture-land-values <div class="node-body blog-body"><p>Nearly 30% of participants in a recent class indicated values had increased by more than 10%, while the largest percentage, 64%, responded there had been between a 0% and 9% increase. The remaining 8% indicated land values were slightly declining in their region.</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/ag-lenders-talk-about-agriculture-land-values" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/ag-lenders-talk-about-agriculture-land-values#comments Issues Prices Road Warrior Tue, 12 Aug 2014 15:47:00 +0000 92631 at http://cornandsoybeandigest.com Strategies for handling tighter margins in agriculture http://cornandsoybeandigest.com/blog/strategies-handling-tighter-margins-agriculture <div class="node-body blog-body"><p>A young agricultural lender recently asked, “With tighter margins anticipated in the future, where should producers focus their energy to maintain viability of their operations?” While there is no one strategy to fit all, the following is some advice that can be applied regardless of the business cycle or business enterprise.</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/strategies-handling-tighter-margins-agriculture" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/strategies-handling-tighter-margins-agriculture#comments Issues Management Road Warrior Mon, 04 Aug 2014 21:15:00 +0000 92471 at http://cornandsoybeandigest.com Back to the Future, Part 3: Interest rates now vs. 1980s http://cornandsoybeandigest.com/blog/back-future-part-3-interest-rates-now-vs-1980s <div class="node-body blog-body"><p>It is not only today’s low interest rates, but the fact that there has been little movement in rates over almost a half a decade which is interesting. The accommodative Federal Reserve, attempting to stimulate the general economy, has, in turn, stimulated the agriculture and rural economy, putting it on steroids with extreme appreciation in farmland values and a depressed dollar, which has been very beneficial to agricultural export markets. </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/back-future-part-3-interest-rates-now-vs-1980s" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/back-future-part-3-interest-rates-now-vs-1980s#comments Issues Management Road Warrior Tue, 29 Jul 2014 20:52:00 +0000 92361 at http://cornandsoybeandigest.com Back to the Future, Part 2: Ag lending and financial management http://cornandsoybeandigest.com/blog/back-future-part-2-ag-lending-and-financial-management <div class="node-body blog-body"><p>An interesting trend in both the 1980s and today is that late in the economic cycle, many lending institutions saw opportunity in the agriculture industry, and thus came into the field of agriculture for profits. </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/back-future-part-2-ag-lending-and-financial-management" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/back-future-part-2-ag-lending-and-financial-management#comments Corn Issues Soybeans Finance Road Warrior Tue, 22 Jul 2014 15:17:00 +0000 92211 at http://cornandsoybeandigest.com Views from the corn field http://cornandsoybeandigest.com/blog/views-corn-field <div class="node-body blog-body"><p>In visiting with producers between sessions at a recent conference, the big question was, “What if a large crop occurs next year in both hemispheres?” If that does occur, many producers who have high fixed cost structures will either continue to burn through working capital and cash, or they may be required to refinance operating losses, if their lenders approve. </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/views-corn-field" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/views-corn-field#comments Corn Issues Soybeans Road Warrior Tue, 15 Jul 2014 18:18:00 +0000 92121 at http://cornandsoybeandigest.com Back to the Future, Part 1: Farm economy in 1980s vs. 2010s http://cornandsoybeandigest.com/blog/back-future-part-1-farm-economy-1980s-vs-2010s <div class="node-body blog-body"><p>One question during a recent forum discussion with ag lenders put me and other professors in the Back to the Future time machine to discuss the similarities and differences in the farm economy now compared to the 1980s. </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/back-future-part-1-farm-economy-1980s-vs-2010s" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/back-future-part-1-farm-economy-1980s-vs-2010s#comments Issues Management Road Warrior Tue, 08 Jul 2014 14:39:00 +0000 91961 at http://cornandsoybeandigest.com Economic halftime report http://cornandsoybeandigest.com/blog/economic-halftime-report-0 <div class="node-body blog-body"><p>Globally, the economic slowdown of emerging nations along with unrest in Ukraine, and now Iraq, bears watching. Remember, spikes in oil prices have been a major contributor to every recession since 1969. Overall, both the domestic and global economies are muddling along, uninspired by central bank stimulus both here in United States and abroad.</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-halftime-report-0" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/economic-halftime-report-0#comments Issues Management Road Warrior Tue, 01 Jul 2014 19:23:00 +0000 91891 at http://cornandsoybeandigest.com Complacency: The Silent Killer http://cornandsoybeandigest.com/blog/complacency-silent-killer <div class="node-body blog-body"><p>Complacency can be the silent business killer. Peer analysis and benchmarking can be the catalysts that motivate managers to focus on aspects of the business that are done well, and then step outside with the advisory teams and other leading businesses to break into new territory, taking the business to a new level.</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/complacency-silent-killer" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/complacency-silent-killer#comments Issues Management Road Warrior Tue, 24 Jun 2014 19:15:00 +0000 91761 at http://cornandsoybeandigest.com Crucial farm transition management conversations: In-laws joining farm operation http://cornandsoybeandigest.com/blog/crucial-farm-transition-management-conversations-laws-joining-farm-operation <div class="node-body blog-body"><p>How can a son-in-law or daughter-in-law bring up the conversation about joining the farm operation or possible ownership? Often the younger generation family members are intimidated particularly if they have provided labor for the business for quite a while. What will frequently occur is that time will slip by and months become years without these important questions being asked and answered, which often ends up being disastrous to all generations involved.</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/crucial-farm-transition-management-conversations-laws-joining-farm-operation" target="_blank">read more</a></p> http://cornandsoybeandigest.com/blog/crucial-farm-transition-management-conversations-laws-joining-farm-operation#comments Issues Management Road Warrior Tue, 17 Jun 2014 18:29:00 +0000 91641 at http://cornandsoybeandigest.com