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Top 5 Steps to Successfully Analyze Farm Performance

Here’s how to enhance farm profitability in 2024.
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Measurement is the key to performance evaluation, and targeted benchmarks will provide a built-in pathway to knowing whether you’re meeting, exceeding, or falling short of your goals. So, what are the main ways to successfully analyze farm performance? Consider these top-five steps:

1) Establish and track profit per acre and/or breakeven production

Among the key steps to success is using a proven model to dial in the breakeven costs per acre based on actual production history and to realize profitable grain sales.

ADM’s Shift® e-learning course can help you better understand farm profitability, the common tripwires that may impede it, and the tools needed to analyze and achieve your profit goals.

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2) Set up targets and benchmarks for farm sustainability and stewardship

ADM representatives can help you utilize products and programs to leave a lasting, sustainable legacy and significantly improve your bottom line. For example, ADM re:generations™ offers both financial and technical support to producers who newly adopt or continue current regenerative ag practices. The programs reward participants for practices that improve water quality, soil health, and biodiversity, and that reduce greenhouse gas emissions, among other possible natural resource benefits.

ADM also offers a full line of traditional nutrients, plus polymer coat and biostimulant products that increase nitrogen use efficiency. In addition, ADM representatives can help you develop ways to minimize your farm’s carbon intensity score (the energy used to produce a bushel of grain) and better prepare you to benefit from climate change reduction programs.

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3) Choose a marketing buddy, or a team, and set goals

Finding a trusted marketing buddy can also help you set specific, measurable farm-performance goals, and the best benchmarks and price targets for reaching them.

It could be as simple as choosing the right peer, family member, grain-marketing buddy, or farm financial advisor – or as complex as building an extended team similar to a board of directors, with expertise in major farm-management components. The main point is to set the right goals with price targets, benchmarks, regularly check progress, and be accountable.

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4) Lock in crop input costs to meet your needs

Crop input purchases (especially fertilizer) need to be made at affordable prices to ensure profits. ADM representatives can help you find opportunities that could lower your input costs, make and execute a purchase plan, obtain market insights, and use smart technology.

At the ADM Farm Direct Fertilizer customer portal, you can select your specific products or product blends, track markets, and lock in your fertilizer price without having to take ownership until you need it.

Big yellow tractor

5) Streamline your grain marketing strategy by utilizing technology

After you’ve established crop production and cost-control benchmarks, technology tools can help you track and manage the information you need to succeed. ADM account access tools such as ADM FarmView™ and the FBN app are ideal resources to help.

The app for all ADM regenerative ag programs, the FBN app, allows you to view your account information anytime, anywhere. You can view futures and cash bids, e-sign contracts, check out basis charts, and stay up to date on market news – all from your phone.

Another choice is ADM FarmView™, a straightforward app and website that offers easy access to information like contracts, scale tickets, settlements, and cash bids.

Choose one or both to suit your specific needs and preferences so you can make more informed decisions more quickly and streamline your grain marketing strategy.

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More Information

As always, reach out to your ADM representative with questions or check out ADMadvantage.com for valuable information.

ADM provides this communication for informational purposes, and it is not a solicitation nor offer to purchase or sell commodities. The sources for the information in this communication are believed to be reliable, but ADM does not warrant the accuracy of the information. The information in this communication is subject to change without notice. If applicable, any information and/or recommendations in this communication do not take into account any particular individual’s or company’s objectives or needs, which should be considered before engaging in any commodity transactions based on these recommendations. ADM or its affiliates may hold or take positions for their own accounts that are different from the positions recommended in this communication.

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