Reading Time: 6 minutes The spring rush is over, so now is the time to take a moment and reflect. As you gaze across fields flush with new growth, think about how much things have evolved in the last few years. Although that lone tree out there still leans to the east, and the sun still sets in the […] Read more
Six numbers in agriculture to make you stop and think
It isn’t as quiet as you might think on the home front. Yes, today’s farms seem stable, but the next evolutionary wave is gaining energy
Keeping up with the high cost of farm living
When farmers have more, they spend more. The question is, can farm families stop spending if they have less?
Reading Time: 7 minutes Maybe the biggest surprise is that the numbers aren’t all that surprising. Researchers at the University of Illinois have found the average amount of family living expendables skyrocketed from about $53,000 per farm in 2004 to $81,000 in 2013. After starting at $84 per acre, living costs jumped in that one decade to $121 per […] Read more
Finance metrics you may not have thought of — diagnosing operating inefficiency
AME Management Part 2: The importance of watching and understanding trends and comparisons
Reading Time: 3 minutes Our last column introduced the concept of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and used it to define Operating Efficiency Ratio, (EBITDA/Total Revenue). With some exceptions, financially successful farms have Operating Efficiency Ratios above 35 per cent, i.e. with at least 35 cents left from every dollar of sales after paying all non-capital […] Read more
Finance metrics you may not have thought of — operating efficiency
AME Management Part 1: Basic financial tools to help determine your operating income
Reading Time: 3 minutes In good times or bad, there are some basic financial tools that allow farmers (and other managers) to gauge their operating efficiency, diagnose where they have problems, and measure the financial risk they are bearing or are about to undertake when they make a substantial investment. We find, however, that we hear very few people […] Read more
A message from April Stewart, Country Guide's Associate Editor
