Nebraska FARMcast - Farm and Ranch Management

On this episode, we look at a critical decision point for cow-calf producers: whether to retain heifers for herd replacement or to opt for purchasing them. This decision can have implications on the operational goals, finances, and the herd’s genetic future for cow-calf operators. To explore what to consider in this decision-making process, we're joined by TL Meyer, a Livestock Systems Educator with Nebraska Extension, who has just authored a new article on the topic.

We learn about the work of Buy Fresh Buy Local Nebraska to connect Nebraskans to local farms and foods amid their 2024 membership drive. The organization, based at the University of Nebraska-Lincoln, offers members inclusion in their popular local food guide, published annually and distributed across the state. Interim Coordinator Charlotte Narjes joins to discuss.

Bringing children into the operation is the goal for many farms and ranches, but it can require some creative approaches so that everyone involved can earn a living. Jessica Groskopf, an extension educator and agricultural economist with the Center for Agricultural Profitability, is writing a series of articles for our website, cap.unl.edu, detailing ideas to help this transition process. She joins to discuss her first article in the series, about monetary compensation for family members.

Dave Aiken, professor and extension agricultural law specialist at Nebraska, discusses two bills dealing with alien land ownership restrictions that have been introduced in the 2024 Nebraska legislative session.

Applications for cooperative business development mini grants are now being accepted for 2024 by the University of Nebraska-Lincoln’s Nebraska Cooperative Development Center. The mini grants are available to both existing cooperatives and groups who are exploring or developing cooperative business models. The application is open through February 15th. UNL Cooperative Development Specialist Cindy Houlden joins to discuss.

On this episode, we elve into the crucial realm of strategic planning within the agricultural sector, and establishing the vision and mission for an agribusiness. In an industry buffeted by the winds of economic change, environmental unpredictability, and technological advancements, having a strategic plan can act as a map through the uncharted territories of future market landscapes.

Larry Van Tassell, professor of Agricultural Economics at the University of Nebraska-Lincoln, and Director of the Center for Agricultural Profitability has authored a new article on the importance of strategic planning and we’ll discuss the art of transforming uncertainties into opportunities, the importance of understanding one's mission, and the need for assessing the ever-evolving external environment that shapes your farm's future.

Glennis McClure, a Farm and Ranch Management Analyst with Nebraska Extension, discusses her new article on Figuring Field Operation Costs Using the Agricultural Budget Calculator Program. In it, Glennis explores the use of UNL’s Agricultural Budget Calculator (ABC) Program, a tool designed to assist producers and custom operators in calculating machinery field operation and ownership costs. By comparing newer and older equipment, the article provides valuable insights into how these calculations can influence decisions regarding machinery upgrades and their impact on production costs.

In this episode, we'll continue discussion about the complexities of the farm bill and current state of agricultural policy. After passing an extension of the 2018 farm bill in late 2023, Congress gave itself another year to enact updated legislation, but debate is expected to continue as competing interests show few signs of compromise so far. In his latest monthly policy column for Nebraska Farmer Magazine, UNL Extension Associate Professor and Policy Specialist Brad Lubben looks into these competing interests and ongoing policy debates surrounding the farm bill, and the impact on Nebraska's agricultural community.

Marilyn Schlake, a Rural Prosperity Nebraska Extension Educator at the University of Nebraska-Lincoln, recently authored an insightful article titled "Agriculture and Community Well-Being: A review of three research studies," which sheds light on the dynamic relationship between agricultural producers and rural communities. I’m looking forward to hearing more about the relationship between main street and agriculture in rural communities.

For new and beginning farmers, access to things like land and capital can present challenges on their road to becoming established producers. Amid the economic challenges that come with being a beginning farmer, there are programs and strategies that can offer a leg up to getting on a good path. This was the topic of a recent Nebraska Farmer magazine column by Brad Lubben, an extension associate professor and ag policy specialist here at the University of Nebraska-Lincoln. He’s here to talk more about the realities of starting out in ag today, the looming challenges and some innovative solutions that can be implemented.

Estate and transition planning often focuses on what happens to the farm or ranch at the death of a key person. However, a good estate and transition plan should also include contingencies for disability. Planning for a disability is not an easy task because the severity and duration of the disability are unknown. Jessica Groskfop, extension educator and agricultural economist with UNL's Center for Agricultural Profitability, offers some key items to have in place to protect you and your operation from disability.

Lia Nogueira, Associate Professor of Agricultural Economics at the University of Nebraska-Lincoln, joins this episode to discuss a rent paper about a study, "Economics of Deficit Irrigation Utilizing Soil Moisture Probes in the Western Corn Belt." This research offers a fresh perspective on how technological advancements like soil moisture probes can optimize irrigation strategies, particularly in water-scarce regions like the Western Corn Belt. We discuss the complex interplay between water usage, crop yields, and economic outcomes, unraveling how these factors are reshaping the way we think about sustainable agriculture.

The research sheds light on the challenges faced by modern producers, and explores how data-driven irrigation methods can lead to more informed, efficient, and profitable farming practices.

There are many strategies that cow-calf producers can explore to be more profitable and on this episode, we’ll hear some examples that are based on data from the University of Minnesota’s FINBIN livestock analysis tool. Randy Saner is a Livestock Systems Extension Educator with the University of Nebraska-Lincoln, and he’s taken a dive into the data for a new article on our website, at cap.unl.edu. He’ll share some practices that can help lead to higher gross margins, the strategic moves involving calf transfers to other enterprises, and the role that government payments can play in bolstering farm and ranch income.

With recent land purchases, some are asking questions to learn more about IRS Section 180 and how it may provide tax deductions in the year of purchase. Shannon Sand is an agricultural economist and educator with Nebraska Extension who is based in North Platte. She joins the podcast to break down what exactly Section 180 is, who can potentially benefit from it, and how landowners can work with their tax professionals to utilize it.

Read more:

Cory Walters, associate professor in the Department of Agricultural Economics, recently co-authored an article analyzing how fuel efficiency in tractors has changed since the introduction of EPA emissions standards. The research was led by another co-author, Jerin TeKoste, a recent graduate of the Agricultural Economics Master’s program here at UNL. Dr. Walters discusses key findings from the research and offers his perspectives on how emissions regulations have impacted tractor performance over time and why this is important for farmers making equipment purchase decisions.

Read more:

Dr. Larry Van Tassell is a professor in the Department of Agricultural Economics at the University of Nebraska-Lincoln and director of UNL's Center for Agricultural Profitability. He discusses his research into the latest data from the USDA's Agricultural Foreign Investment Disclosure Act report about foreign investment in Nebraska agricultural land, exploring key findings, where the foreign owners are from and what this data means for Nebraska farmers, ranchers, and landowners.

The Nebraska Entrepreneurial TaskForce (NetForce) is hosting its sixth annual Nebraska Entrepreneurship Best Practices Summit on Tuesday, November 7th, at the Bosselman Conference Center, at Fonner Park in Grand Island. The one-day event will focus on strategies for building local and regional entrepreneurial ecosystems. Molly Brandt, Innovation and Entrepreneurship 4H educator with Nebraska Extension, discusses what to expect for entrepreneurs of all ages.

Foreign entities have been buying U.S. agricultural land for decades, but recent high-profile purchases have shone a spotlight on the practice. Critics argue it threatens our food security and allows foreign powers to exploit our resources. Others might see economic benefits outweighing any risks.

A new article looks at the scope of foreign farmland acquisitions, the countries involved, the incentives driving this investment, and the key pros and cons for American agriculture. It’s been published by Dr. Larry Van Tassell, professor in Agricultural Economics at UNL and director of the Center for Agricultural Profitability.

Cheryl Burkhart Kriesel is a professor and extension specialist with Rural Prosperity Nebraska. She joins the podcast to discuss an issue many communities may relate to - how to engage new volunteers and new ideas into established local events and activities.

Dr. Burkhart-Kriesel points out that we often hear comments like "we need new people!" and "its the same people do things every year!" when it comes to community events. But making that transition to new leadership and volunteers isn't always easy. Both established organizers and new community members wanting to help out can benefit from strategies to open up participation.

October is National Cooperative Month, a chance to celebrate cooperatives and learn about how these community-driven businesses operate, and their impacts across Nebraska.

Charlotte Narjes is an extension educator with Rural Prosperity Nebraska and director of the Nebraska Cooperative Development Center here at UNL. She has over 15 years of experience working with cooperatives and rural community development, which includes providing education and technical assistance to groups exploring cooperative business models. She is passionate about the power of cooperatives to drive economic opportunities in rural areas.

In 2023, Nebraska's farm real estate values have seen a substantial increase, with the average acre now valued at $4,240, according to new information from the USDA National Agricultural Statistics Services – or NASS. We’ll dive into the newly published report that details land values and county-level cash rates across the state, with Jim Jansen, an agricultural economist with the Center for Ag Profitability. He’s leads UNL’s efforts to publish the annual Nebraska Farm Real Estate Survey and Report, which was released earlier this summer. He’s just co-authored an article analyzing the new USDA report and what it could mean for the state. We'll discuss the key findings, what's driving these trends, and the implications for farmers, ranchers, and the broader agricultural community.

Cooperative businesses are playing an increasingly large role in fostering economic growth, community bonds, and preserving local character in communities across Nebraska. From grocery stores to homecare, the cooperative model is offering innovative solutions to communities across the state. Many of those organizations work with the University of Nebraska-Lincoln’s Nebraska Cooperative Development Center to both get their start and maximize their impact over time. Cindy Houlden is a Cooperative Development Specialist with NCDC and she joins me now to talk more about the impact that cooperative businesses are having across Nebraska.

While the challenges of farming are vast and varied, one often overlooked issue is the risk that comes with the unexpected death or disability of a younger member of the operation. Jessica Groskopf is an extension educator and agricultural economist with the University of Nebraska-Lincoln. Her latest article serves as a call for young individuals in the farming and ranching sector to take estate planning seriously, highlighting the importance of being prepared.

With the 2018 Farm Bill set to expire and the looming uncertainties, Brad Lubben, an extension policy specialist with the University of Nebraska-Lincoln, sheds light on the challenges and considerations surrounding this crucial piece of legislation.

Consumers seem willing to pay more for their burgers and meatballs, with continued strong demand despite ground beef prices remaining high. What does this mean for cattle producers thinking about expanding their herds this fall?

We explore that question with Elliott Dennis, assistant professor and livestock marketing economist with the University of Nebraska-Lincoln. He recently wrote an in-depth analysis looking at factors like retail beef prices, slaughter cow prices, heifers on feed, and more.

"Selling cattle is a complex process, with many factors determining the price producers can get for their animals. Calves with certain blemishes like bobbed tails, frozen ears, or off-colors are often discounted at sale barns. But is there another way for producers to market these calves and capture more value?

Randy Saner, a beef systems educator with Nebraska Extension, has a new article up on our site at cap.unl.edu, detailing ideas on how to add value to blemished calves.

We'll discuss Randy's advice on facilities, health protocols, enterprise analysis, and marketing needed to make this approach work. Randy will also share his insights on the cattle market outlook, given tighter calf supplies this year.

In 2017, the University of Nebraska-Lincoln’s Institute of Agriculture and Natural Resources and Nebraska Extension committed to implementing a multidisciplinary Beef Systems Initiative to develop and implement beef production systems a Nebraska. A parallel project, supported the the Foundation for Food and Agriculture Research, brought together a panel of Agricultural Lenders from across Nebraska, to advise UNL researchers on financial considerations for producers who are implementing new or expanding existing operations.

The panel of lenders first met in 2019, and recently reconvened from June 27-30, 2023, to assess the shifts in economic conditions and lender perspectives over the past four years. They discussed everything from the challenges posed by drought and rising inflation to the nuances of cash flow management and obstacles facing the next generation of farmers.

Jay Parsons, a professor and farm and ranch management specialist with the Center for Ag Profitability here at Nebraska, was part of both discussions and joins me now to talk more about what was covered this past June when the ag lenders panel held their forums.

Understanding your farm's finances is critical to making sound decisions and positioning your operation for success. But the accounting methods used for tax purposes don't always provide the information needed to properly manage your business.

Our guest today, Shannon Sand, is here to explain the key differences between tax accounting and managerial accounting. Shannon is an agricultural economist with the University of Nebraska specializing in farm management.

In a new article up on cap.unl.edu, she lays out how tax accounting focuses on external reporting and follows rules aimed at calculating taxable income. In contrast, managerial accounting looks inward, capturing the data needed to analyze production costs, cash flows, capital investments, and overall profitability.

With harvest just around the corner, many farmers may be considering the decision custom hire out harvesting work. Glennis McClure, a Nebraska Extension farm and ranch management analyst with the Center for Ag Profitability, has a new article on our site at cap.unl.edu, looking at the factors and costs that come into play when deciding between hiring a custom operator versus performing harvest with owned equipment. She also highlights how UNL’s Agricultural Budget Calculator program can assist with these decisions.

For landlords and tenants with verbal lease agreements in place, September 1st represents an important deadline in Nebraska. The state Supreme Court has ruled that the lease year begins on March 1st and the notice to a tenant to vacate under a verbal lease must be given six months in advance of the end of the lease – or no later than September 1st. We’ll walk through what this means for both parties, discuss the benefits of written leases over verbal agreements, and highlight the differences between cropland and pasture leases. Jessica Groskopf, an extension agricultural economist at UNL, discusses.

Tina Barrett, with Nebraska Farm Business, Inc., explains a new tax law that could impact many agricultural operations across our Nebraska

Earlier this year, the Nebraska Legislature passed LB754, which contains changes allowing partnerships and S-corps to elect to pay state income taxes at the entity level, rather than only at the owner level. This opens up potential federal tax benefits for pass-through entities that were previously only available to C-corps in Nebraska. The law also includes options to make this election retroactively from 2018 to 2022.

Tina discusses how this new approach works, who may benefit from it, and what business owners should consider if debating whether to make this election.

Agricultural commodity prices remain strong as we head into summer 2023, but market volatility is a constant presence for farmers and ranchers, and high prices can bring both optimism and anxiety for producers. That’s according to Jay Parsons, UNL Farm and Ranch Management Specialist with the Center for Ag Profitability, who has co-authored a new article on our site at cap.unl.edu, which discusses the importance of managing market volatility this year. He’s joins to talk about current commodity prices and some strategies for growers and sellers to navigate any potential challenges in the markets.

Impressive yields at harvest don’t mean a lot if the costs to grow the crop outweigh the price at marketing time. On this episode, we dive into the importance of calculating breakeven prices and yields to improve profitability. From understanding how much yield you need to cover your costs, to incorporating things like family living expenses and opportunity costs, there are many considerations to be made. Enterprise budgeting to understand those expenses and determine breakeven prices and yields can be time-consuming, but we’ll also talk about how UNL’s ag budget calculator program can streamline the process. 

Larry Van Tassell is a professor in Agricultural Economics and director of the Center for Agricultural Profitability here at UNL.

In a unique initiative by the American Councils for International Education, Nebraska Extension educators Molly Brandt and Marilyn Schlake were invited to travel to the countries of Georgia and Armenia in October 2022, and April 2023, to train local educators in the principles of the 4-H Entrepreneurship Investigation (ESI) curriculum.

Brandt, an innovation and entrepreneurship 4-H educator, and Schlake, a Rural Prosperity Nebraska educator in the Department of Agricultural Economics, prepared for what they thought was a one-time experience. However, after their successful endeavor in Tbilisi, Georgia, in October 2022, they were invited back in April 2023, to deliver similar training in Yerevan, Armenia.

As summer unofficially kicks off and fuel prices fluctuate, it’s important to understand how transportation factors like diesel prices, animal handling, and trucking industry changes are impacting the beef cattle industry. Elliott Dennis, assistant professor and livestock economist with the Center for Agricultural Profitability here at Nebraska, has a new article on cap.unl.edu about what’s behind the changing costs of cattle transportation in the U.S. and he joins the podcast to discuss what’s influencing the price of getting cattle from A to B and what challenges could be ahead for the livestock industry in this area.

When it comes to marketing feeder cattle in 2023, current calf prices are leaving some cow-calf producers optimistic about profits this year, even though forage availability continues to be tight and input costs continue to be high. Because a lot can happen between now and marketing time, price protection should still be a priority, even when that price outlook is optimistic.

That’s according to Jay Parsons, professor and farm and ranch management specialist in UNL’s Department of Agricultural Economics and Center for Agricultural Profitability. He’s authored a new article on our website, cap.unl.edu, and joins to discuss the importance of protecting prices and how Livestock Risk Protection insurance – and recent enhancements to the program – can serve as a valuable tool for managing market risks.

Cattle prices are up this year, but rising interest rates and challenges in the labor market present important decisions ahead for livestock producers. We'll explore how cattle producers can adapt their strategies to mitigate the the negative effects of the current economic environment while maintaining wide profit margins.

University of Nebraska-Lincoln Livestock Economist Elliott Dennis is an assistant professor in the Department of Agricultural Economics and has a new article on our website at cap.unl.edu, about current price trends and the importance of adopting strategies to be more profitable this year.

How active are rural Nebraskans when it comes to volunteering in their community? Rural communities depend on volunteers for a wide range of roles, including essential services like fire and rescue, coordinating community events, and supporting local youth organizations. The University of Nebraska-Lincoln’s 2022 Nebraska Rural Poll asked respondents about their volunteerism and attitudes toward volunteerism in their communities.

For the first time in history, the number of Americans 65 and older now exceeds the number of Americans five and under, according to census data. As the U.S. population continues to age, many rural communities are facing a lack of elder care facilities, forcing those in need of care to relocate to a larger community. Last year, the Nebraska Cooperative Development Center – or NCDC – at the University of Nebraska-Lincoln, launched a six-week Homecare Worker Cooperative Academy in partnership with the Northwest Cooperative Development Center in Washington State. The program aims to address the potential elder care crisis by supporting the development of local homecare worker cooperatives that provide in-home care in rural communities.

Cindy Houlden, cooperative development specialist with the University of Nebraska-Lincoln's Nebraska Cooperative Development Center, discusses the issues facing long-term senior care in rural communities and the benefits of worker cooperatives for homecare workers and the community.

Strategic planning can usually be beneficial to any business, and farm and ranch operations are no exception. Coming up with clear missions, visions, and goals for the business can provide a roadmap to achieve a farm’s objectives and get everyone on the same page. But are farmers and ranchers taking the time for strategic planning? 

Jay Parsons, professor and farm and ranch management specialist in the University of Nebraska-Lincoln’s Department of Agricultural Economics, looks at this topic in a new article posted on our Center for Ag Profitability’s website, cap.unl.edu. He discusses the importance of strategic planning and some barriers to the process that farmers and ranchers should seek to overcome for a healthier business.

Three significant ag law bills are being heard in the Nebraska Unicameral in 2023, dealing with agricultural leases, livestock nuisance lawsuits, and mesonet weather stations. Dave Aiken, professor and ag law specialist in the Department of Agricultural Economics at the University of Nebraska-Lincoln, walks through each of these and their potential implication for agriculture in Nebraska. 

Producers have until March 15 to enroll in crop insurance coverage for 2023. Two elections that have recently been getting new attention are the Supplemental Coverage Option – or S-C-O — and the Enhanced Coverage Options — or E-C-O.

Cory Walters, an associate professor in Agricultural Economics at the University of Nebraska-Lincoln, encourages caution and careful consideration before purchasing either S-C-O or E-C-O coverage.

The cattle industry right now is seeing decreases in the number of beef cows, as well as in the number of heifers held back for retention heifers expected to calve this year. Weather in the Northern Plains region continues to impact the availability of hay following an already shortened grazing season, and many input costs for cattle producers are likely to be high again this year. With feeder cattle supplies reduced nationally, the bred cow market may be appealing for producers looking to rebuild herds. For more on what considerations should be made before making this decision, Elliott Dennis, Assistant Professor and Livestock Economist with UNL’s Center for Ag Profitability joins us.

For older farmers and ranchers, the decision to retire and pass the operation along to the next generation can be a difficult one. Oftentimes, the older generation can find it difficult to give up the power and control they have accumulated over their careers, and may not know what else to do. However, as Nebraska Extension Educator Allan Vyhnalek points out in his work on transition and succession issues, it’s important for the older generations to train and incorporate the younger generations into the operation. And doing so with planning and care, especially in management and decision-making roles.

The U.S. economy in the upper Midwest and great plains is driven heavily by agriculture, with the seven-state region made up of Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota, being responsible for producing over 30 percent of the nation’s agricultural output. Nebraska continues to be a leader in the sector, with significant impact and high output, while occupying a substantial amount of cropland and pastureland in the region.

A new analysis on our website, cap.unl.edu, breaks down Nebraska’s position as an economic force in agriculture in both the region and the country. Tatum Brunkow is a Graduate Research Assistant in the University of Nebraska-Lincoln’s Department of Agricultural Economics. Hi, Tatum. And Brad Lubben is an associate professor and extension ag policy specialist with UNL.

In rural areas, leadership is essential to the development of communities. In areas with smaller populations, volunteers often fill leadership positions, with many community members taking on multiple roles. The 2022 Nebraska Rural Poll sought to find out how residents in or near rural communities feel about their leadership. Becky Vogt, survey research manager with the Nebraska Rural Poll, discusses the findings.