Increasing Agricultural ProfitabilityPlan of Work

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Daviess County CES

Title:
Increasing Agricultural Profitability
MAP:
Increasing Agricultural Profitability
Agents Involved:
Hardy, Heisdorffer
MAJOR PROGRAM 1:
Beef
MAJOR PROGRAM 2:
Grain Crops
MAJOR PROGRAM 3:
Farm Management
MAJOR PROGRAM 4:
Integrated Plant Pest Management
Situation:

A recent rapid downturn in commodity prices following a period of record profitability created a paradigm shift in how producers face an uncertain future. Massive erosion of equity has already begun as producers maintain payments on machinery and land purchased during the peak of profit taking. Row crop agriculture, animal livestock production and tobacco are all enterprises maintained on Daviess county farm businesses. Producers face the challenge of continuing production practices adopted during the peak profit period when the return on investment was much greater. No one seeks to allow yields to decline but producers must face the challenge of responsible farm management and determine inputs and enterprises which grow profit rather than erode equity. Input sources, contracts and machinery replacement must be carefully considered and producers will rely on unbiased research based information provided by the university in seeking profitable farm management practices.

Situation:

Fruit and vegetable production is an important industry in Daviess County for wholesale, road side stand, and farmers’ market growers. As in field crop production, careful consideration must be given to inputs used in growing fruits and vegetables, or deciding when to make the investment into production practices such as using high tunnels to extend the growing season. Growers look to the unbiased, researched information provided by the University of Kentucky to make informed decisions.

Long-Term Outcomes:

Daviess County Agricultural producers will remain successful into the future, providing opportunities for expansion and for a successful succession to the next generation of family interested in continuing the business

Intermediate Outcomes:

Clientele will endeavor to persevere as the adopt practices and farming methods in grain and livestock which lower costs, maintain yields and improve soil through stewardship. Clientele will adopt farming practices which increase their net revenue potential. Quality of produce will increase.

Initial Outcomes:

Clientele will utilize Daviess County research and demonstration data to make informed decisions as they adjust to lower revenues. Clientele will gain knowledge and awareness of improved farming practices.

Evaluation:

Long-term Outcome:

Indicator: Daviess County farms will continue profitable management providing the opportunity for the next generation to transition successfully, clientele will adopt farming and management practices which provide security in profitability, clientele will learn about agricultural production techniques which provide the greatest return on investment.

Method: Survey Evaluation, Observation

Timeline: Winter 2020, 2021

Learning Opportunities:

Audience: Farmers

Project or Activity: Ag expo

Content or Curriculum: grain production research update

Inputs: ANR, extension specialists, local agricultural businesses

Date: January 2020


Audience: Farmers

Project or Activity: private pesticide applicator certification

Content or Curriculum: grain production weed & insect update

Inputs: ANR, specialists

Date: Winter 2020


Audience: Farmers

Project or Activity: Daviess County research and demonstration plots

Content or Curriculum: grain, tobacco, livestock

Inputs: ANR, local agriculture businesses

Date: Fall 2019, Spring 2020


Audience: Farmers

Project or Activity: CPH45

Content or Curriculum: Beef Marketing & Management

Inputs: ANR, Extension specialists

Date: February 2020


Audience: Farmers

Project or Activity: Midwest Beef Summit

Content or Curriculum: understanding animal breeding and genetics

Inputs: ANR, extension specialists, KBN

Date: August 2019


Audience: Farmers

Project or activity: Fertilizer Summit

Content or curriculum: increasing understanding of fertilizer & inputs in crop production

Inputs: ANR, extension specialists

Date: November 2019


Audience: Vegetable producers

Project or activity: Vegetable Production Meeting

Content or curriculum: UK information

Inputs: Horticulture Agent, Extension Specialists

Date: January/February 2020



Success Stories

Midwest Beef Summit

Author: Clinton Hardy

Major Program: Beef

The cost of production, in all aspects of agriculture, continues to increase while prices remain stable or decrease.  This scenario requires producers to analyze each decision as it relates to margin management.  For cow/calf operations, the cost of replacement breeding stock often takes 9 years before a positive return on investment occurs.  The need to cull typically coincides with the conclusion of this period, leaving salvage value as the only profit.  Understanding genet

Full Story

Master Cattleman

Author: Clinton Hardy

Major Program: Beef

Beef cattle production is an important enterprise in the Daviess County agricultural economy. Cattle are grown by nearly 200 full time agricultural producers as well as individuals who utilize cattle production revenue as a supplement for off farm employment.  Cattle and forages were historically low priorities regarding management of the breeding season and ensuring the highest quality forage nutrition available.  Typical revenues on a per acre basis were low in comparison to grain an

Full Story
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