The message is clear: farms must know their costs of production for corn, soybeans, hay, milk, meat, and any other commodities they produce. Why? To make informed marketing, production, and financial management decisions that contribute to the overall profitability of the whole farm business.
Farm business analysis is a tool that can be applied to any farm, regardless of size, crop, or livestock enterprise. Financial management is critical to the success of every farm business, and with analysis, farms are able to better understand the numbers behind their profits or losses.
Farmers have the choice of completing a whole farm analysis, or a whole farm with enterprise analysis. Upon completion, they receive their farm’s analysis and enterprise summaries that include their costs of production per acre, per unit (bu, ton, cwt, head) as well as machinery costs per acre. At the conclusion of each year’s analysis, farmers receive Ohio summary data, along with personalized benchmark reports that help them quickly identify areas of strength and concern. All data collected is handled with care to preserve confidentiality.
The comprehensive quality of the program enables farmers to see and analyze their business in a more complete manner. After completing an analysis, farms are also able to compare themselves against other farms both locally and nationally, which offers a clearer picture of their financial standing.
To learn more about farm business analysis, contact Dianne Shoemaker at 330-533-5538 or email at shoemaker.3@osu.edu. To see past farm business summaries, visit http://farmprofitability.osu.edu.