Collected Publications for profitability • farmdoc daily

Measuring Repayment Capacity and Farm Growth Potential

September 20, 2018
Michael Langemeier

Repayment capacity measures include the capital debt repayment capacity, capital debt repayment margin, replacement margin, term debt and capital lease coverage ratio, and replacement coverage ratio. Capital debt repayment capacity,…

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International Benchmarks for Wheat Production

July 6, 2018
Rachel Purdy and Michael Langemeier

Examining the competitiveness of wheat production in different regions of the world is often difficult due to lack of comparable data and consensus regarding what needs to be measured. To…

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International Benchmarks for Soybean Production

June 29, 2018
Rachel Purdy and Michael Langemeier

Examining the competitiveness of soybean production in different regions of the world is often difficult due to lack of comparable data and agreement regarding what needs to be measured. To…

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Interest Rates in 30-Year Perspective: The Case of U.S. 10-Year Treasury Rates

June 22, 2018
Carl Zulauf

On Wednesday, June 13, 2018, the Federal Reserve increased the Federal funds rate for the 2nd time in 2018 and 7th time since December 2015. It also signaled that 2…

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International Benchmarks for Corn Production

June 1, 2018
Rachel Purdy and Michael Langemeier

Examining the competitiveness of corn production in different regions of the world is often difficult due to lack of comparable data and agreement regarding what needs to be measured. To…

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2017 – Characteristics of Higher Profit Farms

May 18, 2018
Brandy Krapf, Dwight Raab, and Bradley Zwilling

This article uses 2017 data from Illinois Farm Business Farm Management to highlight selected differences between the highest profit grain farms (high one-third) and lower profitability grain farms (low one-third). …

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What is My Sustainable Growth Rate?

May 4, 2018
Michael Langemeier and Michael Boehlje

There are numerous motivations for farms to expand their businesses. Even in today's environment of tight margins, many farms are exploring expansion options. When exploring these options, it is important…

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Farm Growth: Challenges and Opportunities

August 5, 2016
Michael Boehlje and Michael Langemeier

Farm size and growth are often discussed in the context of economies of size. Previous research suggests that the average cost curve in production agriculture is downward sloping or at…

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Identification of Unique Resources

June 3, 2016
Michael Langemeier

Understanding a farm's strategic position is increasingly important in today's competitive environment. For a farm to be successful over a long period of time, it must respond rapidly to competitive…

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Does More Corn = More Profit for 2015???

May 20, 2016
Bradley Zwilling, Dwight Raab, and Brandy Krapf

Acres allocated to crop enterprises can change for any number of reasons. Economics is a prevailing influence but dealing with weed and/or disease pressures, the installation of drainage tile, and…

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