Uncovering characteristics of a high profiting farm.
As we enter a period of potentially lower grain prices and lower returns to the farm, I'd like to share this article from farmdoc daily,
The Characteristics of Higher Profit Farms in Illinois, 2013 – 2022 Average.
The Characteristics of Higher Profit Farms in Illinois, 2013 – 2022 Average.
The piece illustrates some of the differences between higher and lower profiting farms. Certainly, economies of scale are a key component of costs per acre. I thought it was interesting that corn yields were one of the most important factors in determining the final profitability of a grain farm.
Machinery costs are also a key factor in the expense structure for farms as machinery costs have skyrocketed over the past few years.
As you consider changes and decisions for your operation this year, it's my hope that you find this helpful.
Should you have questions, please call, email, stop by, or schedule a meeting with a Relationship Banker today.
