Impact of Fuel and Nitrogen Prices on Profitability of Selected Crops: A Case Study
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Increasing prices for fuel and N fertilizer affect crop production decisions and profitability. Nitrogen response functions are estimated for corn ( Zea mays L.), sugar beet ( Beta vulgaris L.), dry bean ( Phaseolus vulgaris L.), and malt barley ( Hordeum vulgare L.) using data from field studies conducted in the Big Horn Basin of Wyoming. These N response functions are used to evaluate the impact of increases in N and fuel prices on the profitable level of N use. Enterprise budgets are developed for seven selected crops to determine return to management [Return to Management = Price × Yield – Total Cost (preplant, plant, growing, harvest, land, and other)] under price increases for fuel and N. Finally, a linear programming model is used to determine the impacts of increased prices for fuel and N on farm profit and crop mix. Results illustrate that impacts of increasing fuel and N prices on individual crops are quite different and also vary with the overall crop mix. In particular, adding alfalfa ( Medicago sativa L.) and perennial ryegrass ( Lolium spp.) seed production to the crop mix reduced the impacts of increasing fuel and N prices. This suggests producers should adjust production practices on individual crops and also analyze their crop mix when faced with rising fuel and N prices if they are to minimize impacts on profitability.This paper summarizes the 1998 results of the Dairy Profitability and Production Efficiency project. Among the major findings are that the average cost of production was almost exactly equal to the average milk herd revenue on a per hundredweight basis. All eight farms covered variable costs of producing milk. Five of the eight farms showed a profit when all costs of production were included. All six farms that raised their own replacement heifers lost money on the enterprise. With respect to crop production, corn and corn silage were not profitable enterprises. The hay enterprise was profitable for five of the farms.
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Abstract In economic practice, many specific indicators of profitability are used. They may differ in the complexity of the calculation, the availability of necessary information, and the usefulness of the analytical conclusions process. To measure the size of profit and the amount of funds used to achieve it in the industry economy, the indicator profitability of production is used. Profitability of production is an important parameter for determining the efficiency of the economy. Profitability of production is the most general, qualitative indicator of economic efficiency of production, efficiency of functioning of companies in the industry. This indicator is very important for making current and strategic decisions. The article presents the author’s model for analyzing the profitability of production. The article reveals the influence of factors affecting the change in profitability and are more methodical approaches to its calculation (methods of factor analysis developed by Filatov E. A.). The article presents the author’s analytic, systematic statistical material for the analysis of key indicators revealing the impact on the change of profitability of the construction industry in Irkutsk region of the Russian Federation.
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The objective of this research was to analyze the profitability of a beef heifer production system, in the growing and fattening phases, under a grazing system. Specific aims were to evaluate the effect of year on profitability, identify the components of total cost and effective operational cost that exercised greatest influence on the cost per arroba produced, and to estimate the breakeven point. Data were collected between January 2008 and December 2009 from an operation located in the municipality of Curvelo-MG. The profitability analysis used the Custo Bovino Corte® software, considering the gross and liquid margins and the result (profit or loss) as indicators of economic efficiency. In both years studied, the gross and liquid margins and result were all negative, indicating that the activity did not have conditions to enable survival over the short, medium or long term. The variable cost per arroba exceeded the selling price, thus, it was not possible to estimate the breakeven point. The most representative components of the total cost in both years were, in decreasing order, animal acquisition, feeding, compensation for the land and labor; those of effective operational cost were animal acquisition, feeding and labor.
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The efficiency in crop production depends on, on the one hand, achieved yields and selling prices (production value) and, on the other hand, on the incurred production costs. These data suggest different economic indicators which indicate the efficiency of farm operations. Data on the basic parameters of production were collected using the method of survey, which was conducted during the five-year period (2009-2013) on the selected 40 family farms (<100 ha), divided into five groups, each consisting of 8 farms, oriented exclusively towards crop production in the region of two municipalities in the South Banat District. Production efficiency and rational usage of available resources of observed family farms were measured by calculating their profit including state incentives for agriculture and evaluating their own resources engaged in the production.
Crop Production
Family farm
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Nigeria pineapple production remains low when compared to other producing nations. The production output of the crop has been attributed to inefficient use of available inputs. This study focused on profitability and technical efficiency of pineapple production. Two Agricultural Development Project zones with three blocks each were randomly selected from the study area. The blocks consist of six cell-units each from which 101 pineapple farmers were selected. Data from interviews were analysed using descriptive statistics, cost and return and stochastic frontier production function. The result showed that the pineapple production business is profitable and returning more to the farmer than the original investment in terms of purchased inputs. The study showed that farms were operating inefficiently with efficiency score of 0.603. The study recommends policy that makes production inputs available to pineapple farmers in proportion they can afford.
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This paper assesses the profitability of industrial potato production in Poland. The studies indicated changes on the market concerning industrial potatoes and involved an assessment of the area of cultivation and level of production achieved in comparison to other EU countries. Farm profitability is determined based on the calculated gross margin from which its agricultural income was estimated. An analysis of the profitability of assets and sales was also prepared. Changes in potato production and crop yield as well as the general situation on the potato market were analysed. It was shown that the purchase price of potatoes and potato crop cultivation materials are the most important factors contributing to the profitability of potato production. Research was carried out at a specifically selected family farm specializing in potato production. It was observed that the farmer did not pursue drastic reductions in production costs, as this would have led to a decrease in income and profitability. However, their strategy did allow for a sufficiently high gross margin to be obtained. The gross margin from potato production that was obtained in 2014-2018 was positive, and higher than the average in their province.
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Margin (machine learning)
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Crop Production
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This paper summarizes the 1998 results of the Dairy Profitability and Production Efficiency project. Among the major findings are that the average cost of production was almost exactly equal to the average milk herd revenue on a per hundredweight basis. All eight farms covered variable costs of producing milk. Five of the eight farms showed a profit when all costs of production were included. All six farms that raised their own replacement heifers lost money on the enterprise. With respect to crop production, corn and corn silage were not profitable enterprises. The hay enterprise was profitable for five of the farms.
Silage
Variable cost
Total revenue
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Various indicators of profitability are widely used in many industries to assess the companies’ financial and economic performance. For example, production profitability and sales profitability indicators are used for comparative assessing the performance of individual economic entities and industries that produce different volumes and types of products. To compare the amount of profit and the amount of funds used to achieve it in the sectoral economy, production profitability indicator is used. Basically, production profitability is one of the key parameters for determining the efficiency of the economy. This indicator is very important for making current and strategic decisions. The author of the article has developed a 4-factor model to carry out a factor analysis of production profitability. In deterministic factor analysis, the author’s model of production profitability (effective criterion indicator) is represented by the product of 4 factors, of which three are well-known and one is found by the author. The relationship between these four factors and the production profitability is functional. The article reveals the influence of factors influencing the change in the production profitability and gives the author’s methodological approaches to its calculation (methods of factor analysis, developed by E.A. Filatov). The article presents the author’s analytical and systematized statistical material for the analysis of the key indicators that reveal the impact of the changes in the production profitability of small enterprises in the construction industry of the Irkutsk region of the Russian Federation.
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ABSTRACT : Based on the purpose, rice is distinguished into rice for seeds and consumption. This study aims to determine the differences in profit, efficiency, and profitability of rice seeds and rice consumption farming in Kabupaten Karanganyar. The location is decided purposively with 60 respondents. There are primary data and secondary data, with data collection techniques by observation, interview, and recording. The data were analyzed using Independent Sample t-test at the 95% confidence level (α 0,05). The results shows that the cost of rice seeds farming is Rp22.983.454/ha, revenue of Rp34.989.150/ha, and profit of Rp12.014.696/ha. The cost of rice consumption farming is Rp22.054.424/ha, revenue of Rp29.987.760/ha, and profit of Rp7.933.336/ha. The efficiency and profitability values are 1,52 and 0,52 for rice seeds farming, 1,36 and 0,36 for rice consumption farming. The results of the test indicates that there are differences in profit, efficiency, and profitability between rice seeds and rice consumption farming. Keywords: Comparative Analysis, Rice Farming, Karanganyar
Rice farming
Gross profit
Consumption
Net profit
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