Growing Returns

Selected tag(s): profitability

How can we measure the profitability of healthy soils? There’s a new guide for that

Any investment, from Wall Street to a local park, requires investors to establish expectations for the costs, benefits and timing. They dedicate significant resources to researching and identifying these expectations to optimize their investment decision.

Investing in soil health should be no different.

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New resources help farmers and advisers maximize sustainability and profitability

Winter is a critical planning period for farmers and their advisers. As they gear up for the 2019 growing season, a new set of resources can help build operational resilience in the near- and long-term.

Sustainability Programming for Ag Retailers and CCAs (SPARC) was recently launched by the Agricultural Retailers Association, the American Society of Agronomy, Environmental Defense Fund and Field to Market to provide farmer advisers with resources and training modules to help producers continuously improve agronomic and environmental outcomes.

Here’s why advisers should take advantage of SPARC resources as they help farmers plan for the year ahead. Read More »

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Farmers open their books to show financial impact of conservation

Farm accountants have a lot more to offer than advice on how to maximize tax returns. In fact, they play a pivotal role in scaling conservation.

Environmental Defense Fund and K·Coe Isom AgKnowledge, a managerial accounting service for farmers and ranchers, teamed up with three Midwestern grain farmers to study how the adoption of conservation practices affects farm budgets.

These farmers, based in Iowa, Kansas, and Ohio, have all adopted some combination of no-till, crop rotations, cover crops and nutrient management. They were generous enough to open up their books so that AgKnowledge could analyze the financial impact of these conservation activities.

The full report will be out later this year, but initial results show how conservation can benefit farmers’ bottom lines. Here are three lessons we learned from this analysis. Read More »

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A call to help us strengthen the economic case for sustainability practices

Green tractor on Iowa corn farm

Visiting my friend and Iowa corn farmer, Tim Richter.

Before installing a new heating system for your home, you’d want to conduct an analysis to make sure it’s worth the money, right? The same logic applies to farming – before a producer considers implementing conservation practices or new technologies, he or she will need to know how those practices will affect an operation’s bottom line.

Despite some good anecdotal information and several isolated field trial studies, the reality is we don’t have nearly enough information on the economic impacts – good or bad – of individual conservation practices. That means we cannot yet make an ironclad business case that will persuade the majority of farmers to implement conservation practices.

There are several key reasons for the dearth of information, and that’s partly my fault.

I’m hoping you can look past this and consider my call to work together to collect the necessary data to strengthen the case. Our food, livelihoods and landscapes depend on it. Read More »

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Conservation relies on profitability

Conservation practices help make this wheat field more profitable Whether in agriculture or any other business, if you don’t have enough money coming in to pay the bills, it’s hard to find the time or resources for anything other than working to turn a red budget spreadsheet black.

A wheat farmer friend from Washington recently told me that current prices are $4/bushel, the same as 40 years ago. Take into account inflation, and that’s a significant decline. Nationally, the USDA predicts that net farm income will drop by almost 9 percent this year, the fourth year in a row of declines after reaching a record high in 2013. Farmers also face enormous volatility in income, with fluctuations in yield, demand, as well as crop and input prices.

It’s no surprise then that environmentalists’ calls to cut crop insurance, disaster programs or other conservation payments fall on deaf ears in the agricultural community – or serve only to raise blood pressure levels across the Corn Belt. Read More »

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Why Sonny Perdue should prioritize these 3 farm programs

Sonny Perdue will now lead the United States Department of AgricultureThe U.S. Senate will confirm the Secretary of Agriculture today, empowering former Georgia Governor Sonny Perdue to lead an agency with a $155 billion budget, some 100,000 employees and ultimate responsibility for our nation’s food security.

Over 80 percent of this budget goes toward farm programs, food stamps, school meals and other mandatory spending programs. The remainder goes to protect farmers’ livelihoods, rural economies and the environment – but according to the Administration’s budget proposals, this pot of funding could be cut by over 21 percent.

Retaining current funding levels for the U.S. Department of Agriculture (USDA) – and conservation programs in particular – ensures that farmers can remain productive during periods of extreme weather, protects habitat for wildlife without sacrificing profitability and improves on-farm efficiencies.

Secretary Perdue will need to advocate on behalf of farmers to protect these programs – and he’ll need help from the private sector, since the federal government alone cannot maintain farming as a core industry in America, make sustainable agriculture the norm or feed a growing population.

Here are three programs that provide widespread benefits – and that should be a top priority for the new Secretary. Read More »

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