Metrics are an important component of agricultural business, assisting farmers in determining how well they're doing. Ultimately, one of the most important is crop return projections, which indicate how much of a return on investment farmers can expect from each type of crop they plant.
The return projections for 2012 were recently revealed for North Dakota, and it appears to be good news for farmers in that state. All major crops are projecting to be positive next year, though some will likely be more bountiful than others.
"With few exceptions, all crops show positive returns to labor and management in all regions of North Dakota where the projections were made," said Andy Swenson, a farm management specialist at North Dakota State University.
Malting barley and corn look to be the most profitable crop for next year. While barley has a higher average of $110 per acre, corn had the best possible result at $150 per acre, though this was only in some parts of the state. Soybeans and wheat are also predicted to be profitable, although less so.
Profits from a successful crop yield can be really taken advantage of if the farmer then invests those funds back into their business. The auction site IronPlanet allows farmers to bid on used agricultural equipment, like combine harvesters, dump trailers and more, which can help increase the yield of crops in future years.
