Newsletter | Past Issues

September, 2004

In This Issue:
Farmland Rental Agreement Guidelines

What Alternative Energy Options are Available for Farms?
AEDE Research Update-Pay for Better Weather Repors?

"From Bookkeeper to Chief Financial Officer"

Estate Planning-Help is Available

Soybeans receive good news: Start of a Rally or Dead Cat?

Hogs: Huge Slaughter Levels Absorbed by Increased Foreign Sales

Farmland Rental Agreement Guidelines
Bill, Hudson and Chris Bruynis, Extension Educators, Marion and Wyandot County (click here to view PDF version)

In Ohio, the majority of farmland is rented according to the 2002 USDA Census of Agriculture. Written rental agreements form the foundation for clear understanding and expectations on the part of both landlord and tenant. This written lease and the recording of the lease forms the basis for developing a strong landlord/tenant relationship.  All of this leads us to the bottom line and that is how much should I charge or pay for cash rent?  Recent OSU Extension research offers a cash rent calculator that generates an average land rent based on five factors that provide some guidance in rental rate determination.
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What Alternative Energy Options are Available for Farms?
By: Chris Bruynis, OSU Extension Educator, Wyandot County
 
With increasing energy costs, questions about alternative energy have been increasing.  Unfortunately, there are not many easy answers.  In examining alternative energy for farm application, one first needs to assess what energy resources are available, where the energy is needed and how much energy is needed.  For stationary uses such as building, alternative energy is more practical than for non-stationary uses such as tractors.  If the energy need lends itself well to non-petroleum sources of energy and the time horizon is long enough to justify the investment, there are some choices available.  Check out the USDA Alternative Farming Systems Information Center 's web site at http://www.nal.usda.gov/afsic/altenergy/altenergy.htm and the links contained on their page. 
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AEDE Research Update - Pay for Better Weather Reports?
Stan Ernst, Communication Specialists, AED Economics

If farmers "believe" long-range weather reports, they might be willing to pay. Recent analysis suggests 47% of Ohio farmers would use weather forecasts they could be confident of for decision-making. Results suggest that farmers would gain from the improved forecasts, potentially by being better equipped to use existing risk reducing technology like crop insurance or genetically altered seeds. A report by Brent Sohngen, Mark Tucker and Ted Napier at Ohio State indicates that higher confidence in long-term forecasts of temperature and precipitation would mean wide-spread adoption for farm production decisions, but not be as wide-spread as the current use of short-term forecasts. The researchers' models found farmers' willingness to pay for improved weather information works out to a value of about 15-cents per acre of cropland in Ohio .  Link to the research report at http://aede.osu.edu/resources/docs/pdf/45D8ECD1-60F8-48E1-B5D8C49E0AA8FA46.pdf .
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“From Bookkeeper to Chief Financial Officer” workshops to be held this Fall
David Marrison, Extension Educator, Ashtabula County

OSU Extension is pleased to announce that a three-day workshop series will be held in six locations in northeast Ohio during the fall of 2004.  Farm bookkeeping has traditionally been regarded as a process for calculating income tax liabilities with the goal of minimizing tax payments.  This workshop series will teach participants about different bookkeeping methods, income tax planning, enterprise budgets, balance sheets, credit card debt, income statements, and benchmarking.  By collecting and using minimal additional information, participants will be better equipped to make informed decisions which could positively affect the profitability and sustainability of their farm. 
 
These sessions will be held during the week of November 15, December 6, and December 13.  Be watching for the October issue of the Ohio Ag Manager for complete registration details.  Don't miss this chance to improve your management abilities!
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Estate Planning - Help is Available
Jim Skeeles, Extension Educator, Lorain County
(click here to view PDF version)

 We all know we have to do estate planning, even if we don't want to. With the new law changes in distribution of property without a will and the federal estate tax excluding only a million in seven years, farmers do need an estate plan. Help is available! A basic Estate Planning letter study course is available at costs ranging from $15 to $30 that will allow you to learn the basic concepts of estate planning in the comfort of your own home. For more details contact Jim Skeeles at skeeles.1@osu.edu or 440-326-5856 or refer to the more detailed article in this newsletter.  Click here to view full article

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Soybeans receive good news: Start of a Rally or Dead Cat Bounce?
Dr. Matt Roberts, Assistant Professor, Department of AEDE & Grain Marketing Specialist

After falling mercilessly since the April peak at nearly $8.00, new crop soybeans received some welcome news that the USDA is projecting a smaller harvest than the market had been expecting, 2.877bn versus the average trade guess of 2.965bn bushels. Predictably, soybeans opened strongly, and closed up 30c for the day. But while soybean prices have had a rough spring and summer, does this 90m bushel revision lend enough fire power to turn around the negative attitudes toward soybeans, and the grains complex in general?  This market report was released on August 20, 2004 .  Read the full article and link Matt Roberts' home page at http://aede.osu.edu/people/roberts.628/extension/GrainsNewsletters.htm

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Hogs: Huge Slaughter Levels Absorbed by Increased Foreign Sales
Dr. Brian Roe, Assistant Professor, Department of AEDE & Livestock Marketing Specialist

The volume of US hogs slaughtered during 2004 is well ahead of 2003 and, for only the second time in recorded history, weekly slaughter during August will eclipse the 2 million head threshold. As of mid-August the U.S. had slaughtered 1.7 million more hogs during 2004 than during the same period last year. And yet, the roof hasn't collapsed (though there are a few soft spots). Why?  See full report and link Brian Roe's home page at http://aede.osu.edu/people/roe.30/livehome.htm .
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Readers can subscribe electronically to this newsletter by sending an e-mail message to: ohioagmanager-on@ag.osu.edu. A successful subscription message will receive by an automatic reply from the listserv. Contact your local Ohio State University Extension Office or e-mail dmarrison@ag.osu.edu if you have problems subscribing.

Editors: Chris Bruynis, Bill Hudson & David Marrison

Information presented above and where trade names are used, they are supplied with the understanding that no discrimination is intended and no endorsement by Ohio State University Extension is implied. Although every attempt is made to produce information that is complete, timely, and accurate, the pesticide user bears responsibility of consulting the pesticide label and adhering to those directions.

All educational programs conducted by Ohio State University Extension are available to clientele on a nondiscriminatory basis without regard to race, color, creed, religion, sexual orientation, national origin, gender, age, disability or Vietnam-era veteran status.

Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Keith L. Smith, Director, Ohio State University Extension.

TDD # 1 (800) 589-8292 (Ohio only) or (614) 292-1868