1. Home
2. Conferences
3. 2016 National Farm Management Conference

Cutting Costs without Cutting Profits

Eugene Matzat

Summary

With the predicted tight profit margins for Midwestern crop farmers going into 2016 after record farm incomes from recent years, Purdue Extension developed and delivered farm financial management workshops during the fall/winter of 2015/2016 to encourage farmers to take a closer look at their financial positions, particularly working capital. A long term cash rent tool was demonstrated and shared, ag lenders were invited to present their expectations for farmer financial ratios at operating loan renewals, and emphasis was put on ways to cut production costs in order to “push the pencil harder” to find profit margins in 2016. This presentation will share opportunities at which farmers have to look for and realize savings in both variable and fixed costs for mainly crop production, sharing research-based options from North Central Extension specialists. The focus will be on seed, fertilizer, pesticides and energy variable costs and machinery, labor and land fixed costs.

Details

---