Valuing Farm Financial Information

Despite the merits of good farm record keeping, little is known about the value farmers place on their farm financial records. This study uses a willingness-to-accept experimental second price auction to elicit such values from farmers. Results indicate farm records are extremely valuable and that some diversity in values is explained by the characteristics of the records and farmers. We find that experimental auctions can be used to elicit values for extremely high-valued goods, and we demonstrate how they can be used to value a complex good comprised of many sub-components.Farm Management,

THE EFFECTS OF FOOD SAFETY ISSUES ON DIVERSIFIABLE AND NONDIVERSIFIABLE AGRIBUSINESS RISK

This effects of food safety issues on food and agribusiness firm financial risk and return are quantitatively examined using a Bayesian switching model. A capital asset pricing model is estimated to examine the pre- and post-issue on the firm. In addition, the diffusion process on other firms in the industry is also analyzed.Agribusiness, Food Consumption/Nutrition/Food Safety,

Irrigated Crop-Share Leasing Arrangements in Kansas

Farm Management,

Technology Adoption, Management Practices, and Financial Performance of New and Beginning Farmers: Evidence from a National Survey

More than 50 percent of current farmers are over age 55, and the number of new farmers replacing them has fallen. This paper examines factors that contribute to the financial performance of new and beginning farmers in the U.S. A weighted regression analysis was used on data from the 2005 Agricultural Resource Management Survey (ARMS) to measure new and beginning farmers financial performance given farm and operator characteristics, production and marketing, and risk management strategies. Particular attention was given to the impact of technology adoption and management strategy on financial performance. Results indicate the adoption of Genetically Modified (GM) crops, having a written business plan, controlling variable costs, participation in coupled farm program payment, and participation in marketing contracts lead to higher financial performance while education, age, and off-farm work lowered financial performance for new and beginning farmers.financial performance, technology adoption, Genetically Modified (GM) crops, Business plan, new and beginning farmers, contracting, coupled farm program payments, Farm Management, Productivity Analysis,

Measurement Issues in Assessing Farm Profitability through Cash Tax Returns

It is widely accepted that net farm income reported on an accrual-adjusted income statement is a more appropriate profitability measure than net farm income reported on Schedule F of the federal tax return, which is prepared using cash basis accounting. However, a common practice among agricultural lenders is to use Schedule F net farm income, which uses the cash basis of accounting, as a proxy for accrual-adjusted net farm income. A study of 1,045 individual Illinois farms’ records from 2002 through 2006 found the median absolute annual percentage difference between a three-year average cash and a three-year average accrual-adjusted net farm incomes is 57 percent for farms of stable size; 43 percent for farms with annual gross revenue increasing at rates of less than 5 percent, 50 percent at rates of 5-10 percent, and 58 percent at rates over 10 percent; and 61 percent for farms with a debt-to-asset ratio greater than 40 percent.Agricultural Finance,

THRESHOLD EFFECTS IN FOOD AND AGRIBUSINESS STOCK PRICE MARKETS

This study investigates the dynamics of agribusiness stock returns and the market return for 22 firms in a switching-regression framework. Threshold levels and regression slopes are estimated and tested. Results indicate how parameters differ for alternative regimes, at what levels dynamic adjustments take place, and the adjustment time involved.Marketing,

Magnetic Fields in Star-Forming Molecular Clouds I. The First Polarimetry of OMC-3 in Orion A

The first polarimetric images of the OMC-3 region of the Orion A filamentary molecular cloud are presented. Using the JCMT, we have detected polarized thermal emission at 850 microns from dust along a 6' length of the dense filament. The polarization pattern is highly ordered and is aligned with the filament throughout most of the region. The plane-of-sky magnetic field direction is perpendicular to the measured polarization. The mean percentage polarization is 4.2% with a 1 sigma dispersion of 1%. This region is part of the integral-shaped filament, and active star formation is ongoing along its length. The protostellar outflow directions do not appear to be consistently correlated with the direction of the plane-of-sky field or the filament structure itself. Depolarization toward the filament center, previously detected in many other star-forming cores and protostars, is also evident in our data. (abstract abridged)Comment: 9 pages plus 2 figures (1 colour); accepted for publication in the March 10, 2000 issue (vol. 531 #2) of The Astrophysical Journa

ASSESSING THE EFFECT OF ECR ON FINANCIAL AND OPERATING PERFORMANCE

A debate has emerged in the literature and trade press whether the adoption of Efficient Consumer Response (ECR), the supply chain management initiatives for the food industry, leads to improved inventory and financial performance. Using regression analysis, the financial performance for adopters of ECR is about 3 to 4% higher than for non-adopters. However, the growth in profit does not appear to come from improved performance for traditional inventory measures (such as inventory turnover, inventory-to-sales, or inventory-to-assets). The driving force behind these improved financial measures can be attributed to changes leading to a shorter cash conversion cycle. In addition, size matters; ECR is more effective due to economies of scale, information technology, and buying power.Industrial Organization,

THE FINANCIAL EFFECTS OF ECR

Agribusiness,

A new view on the ISM of galaxies: far-infrared and submillimetre spectroscopy with Herschel

The FIR/submm window is amongst the least explored spectral regions of the electromagnetic spectrum. It is, however, a key to study the general properties of the interstellar medium of galaxies, as it contains important spectral line diagnostics from the neutral, ionized and molecular ISM. The Herschel Space Observatory, successfully launched on 14 May 2009, is the first observatory to cover the entire FIR/submm range between 57 and 672 mum. We discuss the main results from the ISO era on FIR spectroscopy of galaxies and the enormous science potential of the Herschel mission through a presentation of its spectroscopic extragalactic key programs.Comment: 10 pages, 4 figures, accepted for publication in New Astronomy Review