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Allows
you to see the outcomes of a decision prior
to making it. This will enhance decision
making and execution of a plan - with you in control!
Orientation: Total
Profitability or Revenue
Allows
a producer to alter:
- Crop
Insurance Alternatives
- Production
Variables
-Marketing
Alternatives
These
variables are evaluated over a continuum of the producer’s
2 biggest risks:
- Yield
- Price
This
unique approach allows a producer to make educated
decisions in:
- Marketing
of Grain
- Crop
Insurance Selection
Uses:
- Evaluate
a marketing plan
- Evaluate
Crop Insurance
- Secure
Financing
- Crop
Selection Decisions
- Cost
Sensitivity Analysis
- Build
Confidence
- Enhance
Long Term Profitability
Analysis of Pretax Profitability for
Enterprise
Each
page of the analysis is labeled with the appropriate headings as
various isolations and combinations of marketing plans and crop
insurance are introduced to the analysis.
Pre-Tax Profitability
is evaluated over a range of both price and yield.
Each numerical value
in the yield/price matrix is graphed in a 3-D fashion to add visual
perspective to the analysis.
When
a marketing plan is introduced into the analysis, that plan is
shown at the bottom of the page while the impact is factored into
the calculations. Same goes for the impact of a crop insurance
plan.
This analysis allows
the inclusion of Government payments along with traditional crop revenue.
Through individualizing
this analysis, you are provided with the opportunity to experiment
with adding or minimizing risk by altering your marketing plan, crop
insurance, crop mix, production costs and farm structure, to find your
optimal Profile.
This
approach allows you to find the best Crop Revenue Profile for
you and your farming operation!
