Yield analysis sheds light on the answer, but you have to look at what impacts profit first.

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Profit = Income - Expense

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The equation is pretty simple at first glance. Dig a little deeper though and growers discover ways to improve a farms bottom line. For example, yield influences both the income and expense side of the profit equation. That makes understanding yield a powerful tool for managing a farms profit.

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There are not many options to control the price of an input such as seed or fertilizer. Most of the time the prices are dictated by the retailers.  Input rates, however, are adjustable and connected to yield. The more yield potential an area has the more seed and fertilizer typically applied to that area. Input dollars spent are connected to how much yield an area can produce.

 

When yield data is collected there is an opportunity to identify yield potential.  By exploring a fields potential yield these questions often arise:

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• Do we push yields, correct issues, and improve profit?

• Do we maintain yields, accept some issues are not correctable, and improve profit?

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How about both? Depending on the field either may be a good choice.  Profit can be improved by fine-tuning the expense and income side of the equation. The proper management of yield potential allows this to happen.

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