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What
does the Crop Revenue Profiler® software
program factor into pre-tax profitability? |
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The Crop
Revenue Profiler® software
program uses information gathered regarding basic farm operations,
the crop to be analyzed, estimates of cash grain market values,
production costs,
government program payments, potential crop insurance proceeds
and other factors. From these inputs, the software begins
to create estimated revenue streams and costs of production
for the crop being analyzed. |
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What
is included in the Revenues calculated in the Crop
Revenue Profiler® software
program? |
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Included
in the revenue stream of this program are three potential streams
of revenue: |
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1)
Revenue from the crop being produced,
2) Government farm subsidies, and
3) Crop insurance proceeds. |
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The
revenue calculated from the crop being produced includes the value
of any unmarketed crops, as well as the value of crops sold prior
to harvest (in certain views of the reports). The potential gain
or loss of overselling the crop to be produced in the event of
a lower than expected yield is factored into this analysis, and
the value for crops to be marketed is localized by a basis estimate
that is required to run the analysis.
Government farm
subsidies that can be included in the analysis for a crop include the
direct and countercyclical payments as well as the potential loan deficiency
payment (LDP) that may materialize in years of lower prices for crops.
These payments can be left out of any analysis if desired.
The revenue from
crop insurance is factored into an analysis as a value net of costs
in certain views of the reports. In the creation of an analysis, this
potential income is shown in a fashion that is isolated from the rest
of the analysis as well as combined with a producer's marketing plan.
This allows the producer to get a better feel for the impact crop insurance
can have on their enterprise. |
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Can
the Crop Revenue Profiler® software
program analyze crop insurance alternatives without marketing
or marketing alternatives without crop insurance? |
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Yes,
this software allows the user to view a marketing plan and a crop
insurance alternative either together or separately. In the event
that a producer wants to see the two combined, the output of an
analysis will provide views that show the impact of crop insurance
and marketing together and separately. Entry of a marketing plan
or crop insurance alternative is not required unless the user chooses
to see the results of such efforts modeled by the Crop
Revenue Profiler® software program. |
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How
are costs of production factored into the Crop
Revenue Profiler® software program? |
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During
the creation of an analysis, you can either choose to include or
exclude the cost of production. If excluded, an analysis can be
created that shows revenue estimates for a crop enterprise. If
costs are included, the software will allow the creation of an
estimated pre-tax profitability view for the enterprise as well
as a straight revenue view. The cost entries in the program are
simply an estimate of fixed and variable costs per acre at an APH
level of production. These costs can be adjusted to account for
the impact that varying yield can have on actual variable costs. |
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What
crops can be analyzed with the Crop
Revenue Profiler® software program? |
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The Crop
Revenue Profiler® software program can
be used to evaluate progressive risk management alternatives
for corn, cotton, soybean and wheat farmers. |
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What
insurance alternatives can be analyzed with the Crop
Revenue Profiler® program? |
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The Crop
Revenue Profiler® program will allow
a user to evaluate the following crop insurance types: |
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CAT
MPCI
CRC™
RA
RA-HPO |
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How
broad of a yield range will the Crop
Revenue Profiler® software program
evaluate? |
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The
user of the Crop Revenue Profiler® program
specifies the yield range that can be evaluated for any given analysis.
This allows each analysis to be created to cover the range of potential
yields that are relevant to your specific enterprise. |
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Does
the creation of an analysis from the Crop
Revenue Profiler® software program
create an obligation on the part of the producer? |
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The Crop
Revenue Profiler® program is
not a contract for future delivery of grain, to buy or sell
commodities, or to buy or sell crop insurance. The creation
of this analysis may help a producer make a decision, but
decisions regarding the marketing of crops and crop insurance
are handled
in their traditional fashion. |
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