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Abstract

Farm managers are currently in an agricultural environment of high risk and major changes in the farm business model (e.g., increases in leasing arrangements and outsourcing services). Cash is certainly important during these times, but it is even more important to make long-run decisions that generate earnings or profits. These profits should buffer the farm from the large amount of present and future risk and enable it to operate well into the future. Given today’s agricultural environment it may not be an overstatement that “cash is king, but profitability is the kingdom!”

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