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Representative Farms Economic Outlook for the December 2006 FAPRI/AFPC Baseline

Joe Outlaw, James Richardson (jwrichardson@tamu.edu), George M. Knapek, J. Marc Raulston, Brian K. Herbst, Roland J. Fumasi, David Anderson, Steven Klose and Peter Zimmel

No 42089, Working Papers from Texas A&M University, Agricultural and Food Policy Center

Abstract: Under the December 2006 Baseline, 25 of the 65 crop farms are considered in good liquidity condition (less than a 25 percent chance of negative ending cash in 2011). Five crop farms have between a 25 percent and a 50 percent likelihood of negative ending cash. The remaining 35 crop farms have greater than a 50 percent chance of negative ending cash. Additionally, 33 of the 65 crop farms are considered in good equity position (less than a 25 percent chance of decreasing real net worth during the study period). Eight crop farms have between a 25 percent and 50 percent likelihood of losing real net worth, and 24 crop farms have greater than a 50 percent probability of decreasing real net worth. The following discussion provides an overall evaluation by commodity considering both liquidity and equity measures.

Keywords: Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 123
Date: 2006-12
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Persistent link: https://EconPapers.repec.org/RePEc:ags:tamfwp:42089

DOI: 10.22004/ag.econ.42089

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