FARE Blog

Food, Agriculture, and Resource Economics

Use Accrual Accounting to Better Gauge Farm Profitability

By Amanda R. Smith Most farmers are familiar with the method of cash-based accounting. With cash-based accounting, a farmer records income when they receive a cash payment for their crops, animals or animal products. Furthermore, they record an expense when a payment is made by the farmer to the input…
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Feedlot Conditions and Beef Prices

by Levi Russell Any time I discuss economic conditions in the industry, I try to be as faithful as I can to forecasts and current conditions and avoid undue pessimism or optimism. The beef cattle industry from pastures to processors has had a pretty good year so far in terms…
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Planted Acres vs Base Acres

by Adam Rabinowitz There have been some comments from policymakers regarding the upcoming farm bill and the debate between planted acres and base acres.  Here is an explanation as to why base acres have been used and the potential impact of using planted acres. The 2014 Farm Bill contains provisions…
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Tool for Valuing Replacements

One important financial aspect of cow-calf production is evaluating replacement decisions. Whether you always hold back your own replacements or look for opportunities to expand when the price is right, it’s crucial to take an objective look at the profitability and feasibility of your investment. To help producers with this…
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Looking Ahead: Feed Costs This Fall

As we saw in 2013, corn price movements can have a big impact on steer prices. Feed prices are obviously important for feedlot operators, but they have implications for stocker and cow-calf operators as well. Recent crop condition reports and yield estimates, combined with a 3% reduction in planted acres…
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Beef Exports to China – Webinar

Many folks in Georgia are interested in hearing about the possibility of exporting beef to China. Now that the first shipment has been made, I feel more comfortable discussing the economic impacts of this new market. The webinar, linked below, gives the details on the restrictions the Chinese government has…
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First Shipment of Beef to China

I’ve been getting a lot of questions lately about opportunities for the US beef industry in China. Given the way these deals can go, I was hesitant to put a lot of faith in the  possibility of re-opening this market (after 14 years). But today we received news that Greater…
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