Apr 24, 2012
blog

How Much Working Capital Do Farmers Need? 1

The other day a producer asked me an interesting question. With all the emphasis on working capital and cash lately, how much should you keep on hand? First, we must ask some specific questions. In this case, the farmer indicated that he would need a $1 million operating line of credit to purchase inputs for his 1,400-acre farm. Next, discussion focused on the lender’s advance rate. In this case the lender would loan up to 70% of the value of the producer’s assets on inputs for the operation. The lender requires the borrower to come up with 30% to margin the loan....More
Apr 24, 2012
blog

2012 Custom Farming Agreements

An alternative to leasing farmland is a custom farming agreement (CFA). In a typical CFA, the custom operator agrees to perform all the machine operations on the owner’s land in exchange for a set fee or rate. The landowner pays for all seed, fertilizer, chemicals, crop insurance and other input costs; receives the all grain produced and all eligible farm program payments on the land; and is responsible to store and market the grain....More
Apr 24, 2012
blog

Corn Planting Slips off Record Pace

U.S. corn planting progress slipped off a record pace last week as wet, cold weather limited planting activity in the western Corn Belt, even though producers in the eastern Belt made good progress last week....More

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