Peter Caffarelli, Graduate Research Assistant; Dr. Gustavo Ferreira, Assistant Professor; Dr. Gordon Groover, Associate Professor; Dr. Kathryn Boys, Assistant Professor, Agricultural and Applied Economics, Virginia Tech
Contributing over $635 million in cash receipts, grain and soybeans are an important part of agriculture in Virginia. Within the grain sector, grain storage (both on- and off-farm) has useful functions in the grain supply chain from farm to final consumer. For instance, at the farm level, it gives grain producers increased flexibility in determining where and when their crop is sold and contributes to faster harvest times. On the commercial side, elevators and processors expand the market opportunities for grain and facilitate its transportation. The purpose of this article is to examine the aggregate levels of grain stocks and capacity of Virginia’s off-farm grain facilities. The presented research offers a glimpse into the availability of grain and capacity at the state-level. Continue reading
Peter Callan, Extension Agent, Farm Business Management, Northern District
Frost seeding, also called overseeding, is an excellent way to incorporate legumes into a pasture. Preparation for frost seeding starts in the previous growing season. Pastures that will be frost seeded need to be grazed close prior to seeding. Since the seed is broadcast, there must be spots of bare soil showing so that there is soil/seed contact. If there is residue on the soil, it will be difficult for the seed to reach the soil and the young seedlings to grow through the residue. Continue reading
Jim Pease, Professor Agricultural and Applied Economics, Virginia Tech
At long last, the “Federal Agriculture Reform and Risk Management Act of 2013” (FARRMA), soon to be referred to as the Agricultural Act of 2014, was passed in the House of Representatives by a vote of 251-166, with Republicans voting 162-63 in favor of the Act, and Democrats voting 89-103 against. The Senate will probably pass the measure in the first week of February, and President Obama will sign the bill into law soon thereafter. After more than 2-1/2 years of legislative gridlock, there will finally be a Farm Bill that provides for commodity and conservation support, food and nutrition assistance, and other rural and agricultural programs for the next five years.
As estimated by the Congressional Budget Office, direct spending on FARRMA over the next ten fiscal years will be $956.4 billion, although the bill authorizes most program expenditures only over 2014-2018. Spending for five years is estimated to total $488.6 billion, broken down by Farm Bill title (i.e. section) in Figure 1 below. Most of these expenditures (80%) are estimated to be in food and nutrition programs such as SNAP (Supplemental Nutrition Assistance Program), WIC (Women, Infants, and Children), and the School Lunch Program. Of the remainder, crop insurance is estimated at 9% of the total, conservation at 6%, and commodity support programs at 5% of the total. All other FARRMA programs sum to just 1% of total expenditures over 2014-2018. The following presents a brief summary of some major changes in Commodity Support, Crop Insurance, and Conservation in this Farm Bill.
Kimberly L. Morgan, Extension Economist, Department of Agricultural and Applied Economics, Virginia Tech
The Kohl Centre Foundation serves a dual mission to: 1), provide business, financial, marketing and management advice, using the resources of VT faculty and students, in the entrepreneurial spirit of Dr. Dave Kohl; and 2), facilitate action-oriented, immersive professional development project opportunities for Kohl Centre teams in response to identified clientele needs in agribusiness and other sectors of the economy. Our primary goal is to develop and implement a branded beyond-the-classroom program that provides undergraduate student experiences in applying the concepts of firm-level strategic decision-making based on economic analyses. Continue reading
Gordon Groover, Extension Economist, Farm Management, Department of Agricultural and Applied Economics, Virginia Tech
Listed below are the items to consider adding to your farm business manager’s reading list and calendar for the next two months.
• Income taxes and related items:
- Farmer that do not pay estimated taxes, your 2013 return and taxes are due March 3, 2014. For Farmers that pay estimated taxes (using Form 1040-ES). You have until April 15 to file your 2013 income tax return (Form 1040).
- Virginia income tax returns must be postmarked by May 1, 2014.
- Need to find out more information about federal taxes relating to your farm business? The Farmers Tax Guide IRS Publication 225 is online and can be found at: http://www.irs.gov/file_source/pub/irs-pdf/p225.pdf Continue reading
Registration is now open for the 2014 Governor’s Conference On Agricultural Trade
Program, registration & lodging information available at conference web-site: http://events.SignUp4.com/GovAgTrade2014