The Ohio State University Farm Income Enhancement Program
Loading...
Date
2019-04
Journal Title
Journal ISSN
Volume Title
Publisher
Ohio State University. Office of Outreach and Engagement
Abstract
U.S. agriculture is experiencing a downturn, with debt increasing faster than assets and equity. In Ohio, farmers are faced with negative profitability and debt-to-asset ratios greater than national averages. Even though farm income is not as low as during the farm crisis, we should still be concerned, as this downturn is showing no signs of ending. To address these problems, the Farm Income Enhancement (FIE) program conducts cutting-edge research to identify factors affecting farm businesses and understand the best strategies to improve farm finances. Recent work has looked at farm financial stress and tax policy, effect of bank regulations on farm stress, factors affecting farmers’ access to credit, effect of credit availability on land values, and fiscal policy impact on new farmers. Through this work, the FIE team hopes to enable farmers across the nation to better weather financial downturns and position themselves to thrive far into the future.
Description
U.S. agriculture is experiencing a downturn which started in 2013, and the overall financial situation of farms is concerning, as debt is increasing at faster rates than assets and equity. Moreover, Ohio farmers are facing negative profitability ratios and debt-to-asset ratios greater than national averages. Even though farm income is not as low as that witnessed during the farm crisis of the 1980s, we should still be concerned, as this agricultural downturn that started in 2013 is already of significant duration and is showing no signs of ending. This situation of increased financial stress is unhealthy and has left farmers to struggling to cope. To address these problems that threaten the sustainability of agriculture by negatively impacting farm financial health, the Farm Income Enhancement (FIE) Program engages in cutting-edge research to identify the factors affecting farm businesses and to understand the best strategies to improve farm finances. Recent projects have studied: 1) farm financial stress: investigating the financial performance and stress level of U.S. farmers; examining macroeconomic factors impact on delinquencies/bankruptcies; 2) farmland tax issues: forecasting of Ohio's Current Agricultural Use Value (CAUV); identifying scope of tax transfers from landlords to tenants; 3) farmland values: answering how factors like bank liquidity/interest rates affect land values; and 4) agricultural credit and lending institutions: studying the effects of bank concentration on agricultural loans; understanding how bank deregulation affects farm debt. These are a few examples of the research conducted at the FIE program. Through robust empirical analysis the FIE team hopes to enable farmers in Ohio and across the nation to better weather financial downturns and to properly position themselves to thrive far into the future. The FIE program is also involved in disseminating results to agricultural managers, agribusiness executives, and practitioners all across Ohio. By actively and widely sharing the conclusions from our analyses, we desire to promote the long-term stability of farm businesses and also hope to foster financially resilient farmers. Examples of our outreach activities include: Farm Science Review "Ask the Expert" info sessions; annual ag policy and outlook presentations; fact sheets; agricultural outlook newsletters. Through this work and with the help of a community partner, the Ohio Farm Bureau Federation, the FIE program hopes to provide a pathway to sustainable agriculture in Ohio, the United States, and around the world.
AUTHOR AFFILIATION: Ani Katchova, Farm Income Enhancement chair, Ohio State Department of Agricultural, Environmental and Development Economics, katchova.1@osu.edu (Corresponding Author); Eric Davis, Farm Income Enhancement research assistant, Ohio State Department of Agricultural, Environmental and Development Economics; Ana Claudia Sant'Anna, Farm Income Enhancement postdoctoral researcher, Ohio State Department of Agricultural, Environmental and Development Economics
AUTHOR AFFILIATION: Ani Katchova, Farm Income Enhancement chair, Ohio State Department of Agricultural, Environmental and Development Economics, katchova.1@osu.edu (Corresponding Author); Eric Davis, Farm Income Enhancement research assistant, Ohio State Department of Agricultural, Environmental and Development Economics; Ana Claudia Sant'Anna, Farm Income Enhancement postdoctoral researcher, Ohio State Department of Agricultural, Environmental and Development Economics
Keywords
farm financial stress, sustainable agriculture, farm stability, outreach to farm businesses, partnerships with agricultural stakeholders
Citation
Engaged Scholars, v. 7 (2019).