By: Dianne Shoemaker and Haley Shoemaker, Ohio State University Extension
Which number is closest to your total direct and overhead cost of production per bushel of corn: $3.08, $4.17, or $6.21? Do you know? Forty-two farms completed their 2016 farm business and crop enterprise analysis in 2017. Farm size ranged from 40 to more than 1,900 acres.The four lowest cost producers averaged $3.08 per bushel, the median COP was $4.17, and the four highest cost producers averaged $6.21 per bushel.
Only the high 20% of these corn enterprises generated a positive net return for corn. For the other 80%, the personalized benchmark reports they receive helped them identify strengths and areas of opportunity in each crop enterprise.
The highest cost producers will know if their costs were high compared to previous years due to weather or other yield-depressing event or if these numbers are “normal” and are waving a big red flag. Combining the real-numbers information from enterprise and benchmark reports with production information gives each farm manager powerful information to make positive changes.
The 2016 Ohio Farm Business Analysis Crop Summary with Benchmark Reports is now available to download at http://farmprofitability.osu.edu.
The report includes enterprise summaries and benchmark reports for corn, corn silage, soybeans, wheat, alfalfa and mixed hay. Any farm can use this information to supplement their decision-making.
All crop, livestock and dairy farms are encouraged to do farm business analysis for their farm. Thanks to a three-year grant from USDA, Ohio has expanded capacity to do farm business analysis work with four additional Farm Business Analysis Technicians working in Ohio. Each farm receives their farm’s analysis as soon as it is completed. All analyses will be completed by the end of May with benchmark reports and summaries available this summer.
Thanks to the USDA-NIFA Farm Business Analysis grant, the cost for a farm to complete an analysis for the 2017 business year is $100. To learn more about farm business analysis, contact Dianne Shoemaker or Haley Shoemaker at 330-533-5538 or email at shoemaker.3@osu.edu or shoemaker.306@osu.edu. See past farm business summaries at http://farmprofitability.osu.edu.