Whole-Farm Revenue Protection as a Factor of Economic Stability in Crop Production
Abstract
:1. Introduction
2. Research Methods and Data
2.1. Data Sources
2.2. Methods
3. Results
4. Discussion
5. Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
References
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Tax Year | Allowable Revenue ($) | Allowable Expenses ($) |
---|---|---|
2013 | 30,600 | 21,198 |
2014 | 27,587 | 17,807 |
2015 | 26,882 | 15,028 |
2016 | 29,778 | 19,933 |
2017 | 32,600 | 18,999 |
Total | 147,447 | 92,965 |
Average | 29,489 | 18,593 |
if (Formulas (2) and (3)) | 1.069 | 0.961 |
Indexed amount (Average ∙ if) | 31,523 | 17,868 |
Whole-Farm Historic Average | 31,523 | 18,593 |
Commodity Name | Yield (t∙ha−1) | Expected Value ($∙t−1) | Expected Revenue ($∙ha−1) | Intended Quantity (ha) | Share | Total Expected Revenue ($) |
---|---|---|---|---|---|---|
1 | 2 | 3 = 1∙2 | 4 | 5 | 6 = 3∙4∙5 | |
Spring wheat | 4.94 | 163 | 805 | 12 | 1.00 | 9660 |
Corn | 8.92 | 141 | 1257 | 5 | 1.00 | 6285 |
Soybean | 3.62 | 350 | 1267 | 6 | 1.00 | 7602 |
Sunflower | 2.88 | 294 | 847 | 9 | 1.00 | 7623 |
Total Expected Revenue | 31,170 | |||||
Whole-Farm Historic Average Revenue (Table 1.) | 31,523 | |||||
Approved Revenue (lesser of Total Expected Revenue and Whole-Farm Historic Average Revenue | 31,170 | |||||
Approved Expenses (Approved Revenue/Average Revenue (Table 1.) ∙ Average Expenses (Table 1.) | 18,593 |
Items | Realized Revenue ($) | Allowable Revenue Per Item ($) |
---|---|---|
Sales of livestock, produce, grains and other products you raised | 19,976 | 19,976 |
Subsidies | 5400 | 0 |
Rental income from mechanization | 1484 | 0 |
Federal gasoline or fuel tax refund | 1365 | 0 |
Cooperative distributions | 822 | 822 |
Crop insurance proceeds and federal crop disaster payments | 0 | 0 |
Total revenue | 27,766 | |
Allowable Revenue for Tax Year | 20,798 |
Items | Realized Expenses ($) | Allowable Expense Per Item ($) |
---|---|---|
Labor | 5951 | 5951 |
Interest: Mortgage and Other | 5302 | 0 |
Fertilizers | 4804 | 4804 |
Seeds material | 3880 | 3880 |
Gasoline, fuel and oil | 3174 | 3174 |
Rent or lease: Vehicles, machinery, equipment, and other | 2898 | 0 |
Pesticides | 2755 | 2755 |
Repairs and maintenance | 2430 | 2430 |
Utilities | 2114 | 2114 |
Taxes | 1550 | 0 |
Supplies | 1420 | 640 |
Transport costs | 1053 | 1053 |
Depreciation | 1039 | 0 |
Storage and warehousing costs | 783 | 783 |
Rent for land | 0 | 0 |
Total expenses | 39,153 | |
Allowable Expenses for Tax Year | 27,584 |
Approved Revenue ($) | Coverage Level (%) | Premium Rate (%) | Subsidy Amount (%) | Premium Amount ($) |
---|---|---|---|---|
1 | 2 | 3 | 4 | 5 = 1 · 2 · 3 - 4 |
31,170 | 85 | 3,2 | 56 | 373 |
Allowable Expenses (Table 5) | Approved Expenses (Table 3) | Expense Percentage | Expense Reduction Factor | Approved Revenue (Table 3) | Coverage Level (%) | Insured Revenue | Allowable (Realized) Revenue (Table 4) | Revenue Loss |
---|---|---|---|---|---|---|---|---|
1 | 2 | 3 = 1/2 | 4 | 5 | 6 | 7 = 5∙6 | 8 | 9 = 7–8 |
27,584 | 18,593 | 1.48 | 0 | 31,170 | 85 | 26,495 | 20,798 | 5697 |
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Kokot, Ž.; Marković, T.; Ivanović, S.; Meseldžija, M. Whole-Farm Revenue Protection as a Factor of Economic Stability in Crop Production. Sustainability 2020, 12, 6349. https://doi.org/10.3390/su12166349
Kokot Ž, Marković T, Ivanović S, Meseldžija M. Whole-Farm Revenue Protection as a Factor of Economic Stability in Crop Production. Sustainability. 2020; 12(16):6349. https://doi.org/10.3390/su12166349
Chicago/Turabian StyleKokot, Željko, Todor Marković, Sanjin Ivanović, and Maja Meseldžija. 2020. "Whole-Farm Revenue Protection as a Factor of Economic Stability in Crop Production" Sustainability 12, no. 16: 6349. https://doi.org/10.3390/su12166349