LINKAGES BETWEEN FARM AND FINANCIAL MANAGEMENT

Agricultural Finance, Farm Management,

THEME OVERVIEW: FUNDAMENTAL FORCES AFFECTING AGRIBUSINESS INDUSTRIES

Agribusiness, Market Forces, Structural Change, Porter’s Five Forces, Community/Rural/Urban Development, Q13, L10, L22, M22, L80,

THE INDUSTRIALIZATION OF AGRICULTURE: IMPLICATIONS FOR FUTURE POLICY

Farming is in the midst of a major transformation—not only in technology and production practices, but also in size of business, resource (land) control and operation, business model and linkages with buyers and suppliers. This paper describes the fundamental drivers of today’s structural change in U.S. agriculture. The impact of the drivers are illustrated by describing some illustrations of the kinds of innovative farming operations that are developing in agriculture, not the typical farms but those who appear to be leading and shaping the new agriculture. Finally, farm policy implications of the transformation of farming to an industrial manufacturing model are discussed.Farm policy, industrialization of agriculture, structural change, biological manufacturing

DETERMINANTS OF RESTRUCTURED FARM LOAN PERFORMANCE

A probabilistic model is applied to cross-sectional data to identify determinants of post-restructure performance of Federal Land Bank loans. The results indicate that restructured loans were sensitive to factors that determine the debt repayment burden and the repayment ability of the restructured farm operations. Loan performance is found to be relatively more sensitive to the levels of the post-restructure interest rate and cash farm income than to the financial structure and leverage position of the restructured farm. The relationships between the post-restructure interest rate, cash farm income level, and the probability of loan performance are illustrated.Agricultural Finance,

ADJUSTABLE -TERM FINANCING OF FARM LOANS

Firm-level simulation is used to analyze farm financial performance with adjustable-rate, adjustable-term, and fixed-rate financing. Adjustable-term financing is accomplished by changing the term of the loan, instead of payment size, when interest rates change. Simulation results indicate that the adjustable-term loan is an innovation which reduces the cash flow destabilizing effects of volatile interest rates.Agricultural Finance,

LAND VALUES AND ENVIRONMENTAL REGULATION

Environmental Economics and Policy, Land Economics/Use,

Economics Of Mining Coal In Iowa

The Department of Economics at Iowa State University has three major areas of research responsibility as a part of the Iowa Coal Research Project 1) economic analysis of the feasibility of a major Iowa coal producing industry, 2) analysis of the legal dimensions of mining coal in Iowa, and 3) economic analysis of the coal transportation network in Iowa. This paper summarizes research results from the economic feasibility study in an Executive Summary format. Distribution is intended for persons on and off the Iowa State University campus who are interested in the basic results, but are not concerned specifically with the research methodology employed; consequently, this paper will not discuss in detail the mathematical model used in the feasibility analysis or the development and justification of the input data. Rather, the purpose of this discussion is to present the economic climate in which the Iowa coal industry competes and the general results of the economic analyses performed to date. More detailed analyses in the feasibility area are listed in the References section [14, 15 16]

Theme Overview: Fundamental Forces Affecting Agribusiness Industries, Part II

Agribusiness, Market Forces, Structural Change, Porter’s Five Forces, Agribusiness, Q13, L10, L22, M22, L80,

Extension on the Brink - Meeting the Private Sector Challenge in the Information Marketplace

The Cooperative Extension Service is facing unprecedented competitive pressure in the information and education marketplace. As data are combined with knowledge to create information from which revenue and value can be gained, private information providers are placing Extension at a competitive disadvantage. As information customers reassess their needs and place higher value on convenience and access over objectivity, several questions must be answered. Chief among them: Can Extension and the Land-Grant System survive and succeed in head-to-head competition with private information providers, or will the system be most successful as a wholesale source of information and education in partnership with private-sector information providers

REAL OPTIONS ANALYSIS FOR INVESTMENT IN ORGANIC WHEAT AND BARLEY PRODUCTION IN SOUTH CENTRAL NORTH DAKOTA USING PRECISION AGRICULTURE TECHNOLOGY

Real options theory is employed to measure the value of investing in organic wheat production using precision agriculture technology. Results reveal that an option to wait until market uncertainty is resolved is valuable. Information obtained via precision agriculture technology is also valuable to producers seeking organic certification.organic wheat production, real options theory, precision agriculture technology, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,