Sarah Mock, Brent Gloy, and David Widmar are back to shine a spotlight on the world of ag lending. How does a farm loan work? Where, exactly, does the money that farmers borrow come from? Farmers, agribusiness leaders, farm policy wonks, and students are each sure to glean insights.
'AEI.ag Presents' Podcast Launches Season 3
Nothing Borrowed, Nothing Gained
Sarah Mock, Brent Gloy, and David Widmar are back to shine a spotlight on the world of ag lending. How does a farm loan work? Where, exactly, does the money…
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Weekly Insights
January 30, 2023
Farm CapEx Jumps Higher
Changes in Capital Expenditures Capital assets – tractors, barns, and vehicles - are a unique expenditure as the asset’s useful life spans multiple years. Therefore, we expect capital purchases to ebb and flow as farm incomes rise and fall. Figure 1 shows that capital expenditures began trending higher in 2020…
I recently wrote an article for AEI Premium (here) discussing the key factors I’m watching for farmland in 2023. Coming off two years of very strong increases in sales prices, the question for 2023 is whether farmland prices will go higher yet, sustain the gains and plateau at current levels,…
Like all expenses, cash rents have also jumped in recent years. In Indiana, cash rental rates jumped $25 per acre in 2022. At $252 per acre, rates also passed the previous highs, $232 per acre, hit during the previous farm income boom (2014). With per-acre cash rents at all-time highs,…
Changes in Capital Expenditures Capital assets – tractors, barns, and vehicles - are a unique expenditure as the asset’s useful life spans multiple years. Therefore, we expect capital purchases to ebb and flow as farm incomes rise and fall. Figure 1 shows that capital expenditures began trending higher in 2020 (2022=100). After falling to lows…
I recently wrote an article for AEI Premium (here) discussing the key factors I’m watching for farmland in 2023. Coming off two years of very strong increases in sales prices, the question for 2023 is whether farmland prices will go higher yet, sustain the gains and plateau at current levels, or soften and experience declines…
Like all expenses, cash rents have also jumped in recent years. In Indiana, cash rental rates jumped $25 per acre in 2022. At $252 per acre, rates also passed the previous highs, $232 per acre, hit during the previous farm income boom (2014). With per-acre cash rents at all-time highs, it’s worth considering how pricey…