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Diagnosing a Farm Profitability Problem

Scott Stiles and, Kelly Bryant (1999)

Summary

Net income on any farm depends on several factors, but much of the differences in net income between farms can be attributed to farm size, physical efficiencies of production, economic efficiencies of production, enterprise combinations, fixed cost structure and commodity marketing. A complete analysis of these areas of the farm business should be conducted on a regular basis. However, a diagnostic procedure for locating the source of a farm profitability problem is presented in this publication.