Performance and risk of agricultural assets: A time-varying approach

Agricultural assets have recently received increased media attention and investor interest. One of the arguments driving this interest is that agricultural asset values have very little correlation with equity markets. Previous research has shown this to be true of farmland. This study compares the risk and returns to 5 agricultural asset groups: agricultural commodities, farmland, Fertilizer and Ag Chemicals equities, Agricultural Products equities, and Packaged Foods & Meats equities over the period of 1992 – September 2008. Flexible least Squares models are used, as unrelated research has shown that the Capital Asset Pricing model beta, a measure of an asset\u27s systematic risk, is not constant over time. Results show that beta is not constant for any of the 5 assets over the time period studied. Consistent with previous research, farmland and agriculture commodities show little correlation with securities markets, while agricultural equities show much higher, positive beta values. Results also show that systematic risk for the fertilizer and agricultural processing equities has increased sharply in 2008. Alpha, or risk-adjusted returns, from the flexible least squares output, shows that farmland had the highest and most consistent return over the sample period. Results are most useful for investors seeking to diversify their investments into agriculture as the findings provide a more detailed analysis of anecdotal news media claims

Dairy Farm Business Summary, Western and Central Plain Region, 2005

E.B. 2006-05Dairy farm managers throughout New York State have been participating in Cornell Cooperative Extension's farm business summary and analysis program since the early 1950's. Managers of each participating farm business receive a comprehensive summary and analysis of their farm business. The information in this report represents averages of the data submitted from dairy farms in the Western and Central Plain Region for 2005. Program Objective The primary objective of the dairy farm business summary, DFBS, is to help farm managers improve the business and financial management of their business through appropriate use of historical data and the application of modern farm business analysis techniques. This information can also be used to establish goals that enable the business to better fulfill its mission. In short, DFBS provides business and financial information needed in identifying and evaluating strengths and weaknesses of the farm business. Format Features This regional report follows the same general format as the 2005 DFBS individual farm report received by participating dairy farmers. The analysis tables have an open column or section labeled My Farm. It may be used by any dairy farm manager who wants to compare his or her business with the average data of this region. The individual farm data, the regional averages and other data can then be used to establish goals for the business. Non-DFBS participants can download a DFBS Data Check-In Form at http://dfbs.cornell.edu. After collecting the data on the form, it can be entered in the U. S. Top Dairies business summary program at the same web site to obtain a summary of their business

Dairy Farm Business Summary, Western and Central Plain Region, 2006

E.B. 2007-06Dairy farm managers throughout New York State have been participating in Cornell Cooperative Extension's farm business summary and analysis program since the early 1950's. Managers of each participating farm business receive a comprehensive summary and analysis of their farm business. The information in this report represents averages of the data submitted from dairy farms in the Western and Central Plain Region for 2006. Program Objective The primary objective of the dairy farm business summary, DFBS, is to help farm managers improve the business and financial management of their business through appropriate use of historical data and the application of modern farm business analysis techniques. This information can also be used to establish goals that enable the business to better fulfill its mission. In short, DFBS provides business and financial information needed in identifying and evaluating strengths and weaknesses of the farm business. Format Features This regional report follows the same general format as the 2006 DFBS individual farm report received by participating dairy farmers. The analysis tables have an open column or section labeled My Farm. It may be used by any dairy farm manager who wants to compare his or her business with the average data of this region. The individual farm data, the regional averages and other data can then be used to establish goals for the business. Non-DFBS participants can download a DFBS Data Check-In Form at http://dfbs.cornell.edu. After collecting the data on the form, it can be entered in the U. S. Top Dairies business summary program at the same web site to obtain a summary of their business