A paper, titled “Commodity Storage and the Cost of Capital: Evidence from Illinois Grain Farms,” says higher capital costs — mostly made up by the interest on borrowed money that could be covered by grain sales — affect the storage decisions of some but not all farmers.
Tag Archives Agricultural economics

Grain storage decisions more complex than pure economics
Trying to save tax by delaying sales can be a treadmill you can’t get off

Arrell Family Chair to focus on the people side of agri-economics
New research position to make connections
Dr. Tongzhe Li is the inaugural Arrell Family Chair in Behavioural and Experimental Economics. The $1 million, five-year research chair position represents an emerging field at the University of Guelph focused on making agri-food production in Canada more efficient and sustainable. The funding is provided by the Arrell Family Foundation. In a new release, Managing […] Read more

Opinion: Business risk management reform remains possible
Among the long list of complaints to government from producers in recent months, their concern over business risk management programs has been the most consistent. Other grievances remain. The carbon tax is an irritant, but the now-futile campaign against it has lost steam throughout the pandemic. Lack of labour and access to foreign trade markets […] Read more

U.S. cash farm income expected to slump as government aid drops
Crop farmers are expected to face continued pressure from low prices
Reuters – U.S. net cash farm income will fall 11 per cent this year as production costs rise and government aid programs set up to assist producers during the U.S.-China trade war wind down, according to a U.S. Department of Agriculture forecast issued on Feb. 5. The drop, of $13.1 billion in inflation-adjusted 2020 dollars, […] Read more

Economic challenges mean U.S. farm bankruptcies are up but land prices hold steady
USDA says farm real estate prices holding up, but the potential for a fall is there
Reuters – The United States Department of Agriculture is concerned about a potential decline in farmland real estate prices, but has seen no sign of that happening so far, said USDA chief economist Robert Johansson. Farmland prices are a key pillar of equity for the U.S. agricultural heartland, which has been suffering from lingering weakness […] Read more

Yes, we can
CAPI Report: New report from the Canadian Agri-Food Policy Institute calls for ‘quality growth’ strategy as Canada eyes roughly doubling export share by 2027
Going beyond Barton When consultant Dominic Barton recommended to the federal government in 2016 that agriculture be one of the leaders in the growth of the Canadian middle class it opened up all sorts of discussions across the country. The latest contribution is a report from the Canadian Agri-Food Policy Institute (CAPI) that looks at […] Read more