Getting Started In Ag: How Do I Know if My Farm Is Profitable?

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WHILE it may seem like a question that is relatively easy to answer, often the answer is more complex.

The first goal of any production agriculture business should be to turn a profit or generate more revenue than expenses. If you are new or just starting out in agriculture, you may not realize there is more to profitability than simply generating more income than expenses. Looking at an enterprise in terms of cash receipts or expenses is only the first step toward determining profitability. There are many factors, several non-cash in nature, that must be considered to form an accurate picture of profitability.