6 Feb 20

Improve Profitability

Every business owner wants to increase profitability. Farm operations are very complicated businesses. There can even be additional businesses as part of the farm just to make ends meet. Many farms are vertically integrated, which provides additional income pathways. What other job requires that a person to spend a million plus cash outlays before they ever see any revenue generated? Approximately 2 million American farm operations do it every year.  Most of the operational costs on a farm are variable.
But how do you manage labor costs, fertilizer, seed, chemical inputs, insurance, machinery repairs, fuel, depreciation, land costs, equipment, the list goes on…

A few ideas to improve profitability
  • Banding fertilizers to place fertility where plants need it most to save input costs

  • No-till after beans

  • Make sure you are enrolled in all the government programs.

  • Take advantage of specialty programs such as Conservation Stewardship Programs.

  • Reduce seed costs by analyzing trait choices and variable rate seeding.

  • Share the mistakes made so YOU don’t have to make the same mistakes in the future.

  • Use only the chemicals you need by scouting fields.

  • Maintain equipment and talk to local dealership while researching to help prevent common repairs.

  • Replace problem equipment if possible to help keep repair and service costs low.

  • Incentivize employees…Give an award at the end of the season/year to the most efficient or safest employee (no accidents/tickets/violations) to help improve insurance rates  

Advance yields

I don't know a grower out there who doesn't get excited with anticipation as they finally get to climb up in their combine and begin the long process of harvesting after all the blood, sweat, hard work, and long wait of a growing season. What a dream it would be to pick 300-350+ bushel corn or cut 80-100+ bushel beans. To some growers it seems as though that is impossible. We all hear the potential yield of seed is unending, but then we tear open the bag. There are so very many variables that affect yield. If you start with your end goals in mind you can make small changes to your planting plan and increase your chances of advancing your yields. We will share our ideas and what works for us to get a uniform stand, even emergence, improve seed vigor, and more.

A few ideas to advance your yields:
  • Choose seed varieties that fit soil types, fertility, and conditions.

  • Plant populations to fit nutrient availability and  soil productivity.

  • Variable Rate Seeding

  • Treat seed trench with inoculant to stimulate emergence.

  • Use a safe starter fertilizer product that will not harm seed.

  • Use a micronutrient seed treatment.

  • Keep planter tuned up to maximize emergence.

  • Don’t overuse chemicals in the crop's early growth stages.

Enhance Efficiency

Wouldn’t it be nice to have more free time to spend with family to go to the game or the race? More free time seems unattainable with all the work that goes in to operating a successful farming business. There are so many jobs to do and most growers don’t have the financial freedom to have excessive labor costs just so they can have time off.

So how can you solve that conundrum?

You can analyze your farms strengths and weaknesses and utilize that information to make your operation run smoother and be more efficient. You can maximize the productivity of the trips you are making across the field by adding planter applied fertility or using a tool bar that bands fertilizer as you apply nitrogen. You can use technology to improve accuracy of fertilizer application and seed population improving your productivity.

A few ideas to Enhance Efficiency
  • Utilize equipment wisely over every acre.

  • Save trips across the field by using no-till or strip-till practices.

  • Planter-applied fertility

  • Lower fertilizer application by balancing soils.

  • Reassess your farms strengths and weaknesses.

  • Use technology to improve accuracy.

Tweak ROI

A tractor that drives itself. A combine that adjusts the concaves and sieves on the go as you pick different varieties of corn. A planter that can perfectly plant at 11 mph. A new fertilizer product that promises you a 4-bushel bump. A miracle “snake oil” that guarantees 10 bushels. A chemical that is going to solve ALL your weed problems. Or even an extra 160 acres with $450 cash rent...

All of this expensive stuff would be really nice to have. But what is your return on investment (ROI)? It is so difficult to figure that out sometimes. It is exciting to have a new piece of equipment. It is hard to tell your salesperson no. And wow…an extra 160 acres would be nice to have. Making purchases can sometimes be emotional. Not so practical. Farming more acres doesn’t necessarily mean more money…bigger isn’t always better. Improve your soils, increasing your productivity and growing more crops on the acres that you already farm can make you more money. Keeping up with per acre costs throughout the growing season so you don’t overspend can be hard to do in the midst of the busy season.

How to Tweak ROI
  • Using your money wisely - prepay for seed or fertilizer inputs

  • Farming more acres doesn’t necessarily mean more money… bigger isn’t always better

  • Improve soils, increase productivity and grow more crop on the acres that you already run

  • Keep up with input costs throughout the growing season so you don’t overspend

  • Assess crop progress and feed throughout season to maximize every dollar spent on fertility costs

  • Share experiences with others so YOU don’t have to make same mistakes

  • Keep up with fuel and machinery expenses throughout the year

Using Sustainable Resources Efficiently

We all have a great respect the environment... every farmer cares about his soils and using resources the best way possible. We work at conserving nutrients, soil erosion, and water. Farmers want to take care of the land the way generations before us taught us to. We use sustainable resource to maintain fertility and utilize organic sources to enhance our soils. Farmers are stewards of the land. They protect their land as they would a member of their family. All farmers should want to be sustainable. It’s a win win for the farmer, the general population, and the environment!! Farmers must use sustainable methods that not only provide a profit but have a positive economic and social impact.

Ideas on how to Use Sustainable Resources Efficiently
  • Start by using sustainable resources

  • Manure instead of dry fertilizer products 

  • Conserve Irrigation water by using moisture probes

  • Nitrogen timing & placement to conserve nitrogen 

  • Fertilizer banding to use less fertilizer per acre placing it where crop needs it the most

  • Scout and only use chemicals that solve your specific problems & challenges 

  • Use tissue tests to feed crop and provide needs based on yield goals

The farmers of XtremeAg will introduce you to some of the ways that we have increased profitability on our own farms, for our own additional businesses and our own operations. Let us share with you what has worked and more importantly what has not worked on our farms to enhance efficiency so you can enjoy life and have more free time.  The farmers at XtremeAg.farm will share with you how we have tweaked our ROI to maximize our operations and how we use resources as efficiently as possible. You can increase your ROI by relying on Individuals like us to help!

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