The quest for profitability drives the modern farmer, but paradoxically, precision technology that could spike their earnings remains heavily underutilized. Farmers feel comfortable with it for auto-steering and some VRT. Some farmers go one step further to apply precision data in crop insurance, but it barely scratches the surface of what’s possible with this powerful data.
An overwhelming majority of producers (76%) selected profitability as the number one indicator of the success of their operation, according to Farm Journal’s State of Sustainable Ag Report. In that pursuit, the USDA anticipates record highs in planted acres across the country in 2023. But is more always better? Is planting every piece of land possible the pathway to peak profitability?
Not all acres are created equal—some simply do not yield a profit. All farmers have those parts of the field where they have lower yields. Precision data doesn’t just confirm this; it points to a transformative approach to agriculture.
It’s time for the best producers to lead the way. It’s time to convert these unprofitable acres into profit makers, with precision technology as the key. Farm margins have become too thin to lose money on any part of a field. Once precision data identifies the underperforming areas, Profitability Partners can help producers generate more revenue and reduce overall operation expenses.
To harness the potential, farmers must embrace a four-step data journey.
1: Create Accurate and Actionable Precision Data with PRM Data Specialists
You may already be collecting data, but its potential is only as great as its accuracy. Quality data is the foundation of any successful endeavor, and agriculture is no exception. Precision technology must be correctly set up and calibrated to yield accurate and actionable insights. While some growers are adept at this, others might benefit from an expert data partner that sets up and fine-tunes their technology to ensure quality data is collected. If poor data goes in, poor products come out. PRM Data Specialists ensure the quality of the precision data by going on-farm to set up and calibrate the equipment.
2: Apply Data Immediately to Make Insurance Faster and Easier
Precision technology can be leveraged to take crop insurance to a new level. This integration can streamline reporting, protect against audits, reduce premiums by ensuring only precision-planted acres are insured, and boost Average Production History (APH). The immediate application of precision data in crop insurance is a game-changer that should be applied immediately. PRM was founded on utilizing precision technology to the fullest for crop insurance purposes.
3: Analyzing Where It is Costing Money to Put Seed in Soil
The largest yields during harvest should not be the sole aim; profitability reigns supreme for large operations. Once the precision technology has been set up and data are collected, a comprehensive analysis can pinpoint exactly where money is being lost in every field. This analysis can inform crucial adjustments in yield or expenses to flip a loss into profit. For instance, in a PRM profitability case study, one field increased returns by 6.9%, reduced expenses by $5,868, and increased profits by $663. This was achieved by simply not planting where precision data shows it’s not worth it.
4: Turn Unprofitable Acres into Money Makers with Profitability Partners
Leaving acres unused is never the goal. After identifying the unprofitable acres, it’s essential to transform them into profitable ones. It’s not as hard as you may think. Now is time to bring in the ‘Profitability Partners’ who can offer tailored solutions. Organizations like Pheasants Forever can turn unprofitable acres into habitat with stackable financial incentives through a variety of programs. LandTrust is another great example. They connect landowners and outdoor enthusiasts with rental-like agreements that can pay $10,000 per year – on top of government payments to restore the land. PRM takes the extra step for our customers to create new opportunities for our customers with our Profitability Partners.
Why Aren’t We Turning Acres Profitable?
There are many ways to generate better revenue. For example, USDA pays good money for prairie strips where you might be losing money now. Yet, nearly two-thirds of farmers (59%) said they have never calculated the economic benefit(s) provided by conservation practices, according to Farm Journal.
The data opportunities listed here are just the beginning and one possible path. The potential of precision technology is vast, and every farmer seeking to maximize their operation’s profitability must fully embrace it. It begins with recognizing the power of the data at our disposal and using it to its fullest potential.
To unlock these different paths, it takes the right partners. Precision Risk Management specializes, and pioneers advanced precision technology uses for crop insurance. Our Data Specialists come on-farm to set up precision technology to your specifications at no cost to the grower. And we can connect you with the right Profitability Partners to increase revenue even more. You can learn more at PrecisionRiskManagement.com
