I think we know something about you.
You’re a good farmer who’s running a sizable business and focused on growing your bottom line.
But even the most successful farmers have plenty of concerns that keep them up at night worrying.
This worry comes from a villian that faces all farms.
This villain presents in itself to farmers in many ways.
We all know that weather and commodity market volatility is here to stay.
Uncertainty is here to stay. That’s the nature of farming.
Farmers who love farming, working with the soil, and raising crops are increasingly being forced to take on a second role.
This role is one that doesn’t come naturally to many.
This role is one of a professional business manager.
You are the manager of a sophisticated manufacturing business.
Sophisticated manufacturing businesses, in other industries, have many things outside of their control. They are also victims of uncertainty.
How do they fight this uncertainty? They have people, processes, and tools in place to help them analyze, manage, and optimize their businesses.
Your farm should be no different!
How do you defeat uncertainty? By proactively taking advantage of opportunities that allow you to minimize its impact.
To make proactive and confident farm business decisions, you need visibility into the numbers side of your operation.
You can’t change past decisions. As much as you would like to predict the future, you know it’s impossible. You need to focus on the best decision you can make today!
You need the visibility to take control.
To be honest, there is no software tool that can help you make perfect grain marketing, input selection, capital allocation, equipment, or application decisions.
But..... Harvest Profit can be your guide, constantly allowing you to evaluate the financial impact of your decisions.
Financial visibility enables you to take more control of your farm’s financial outcome.
You’re likely wondering how Harvest Profit can help with this?
Farm financial tracking is our business.
Harvest Profit, among other things, helps you keep track of all your expenses and (let’s be honest) there are many! You purchase inputs like seed, fertilizer, and chemicals. Land costs aren’t going away any time soon, and neither are crop share input/grain allocations. Let’s not forget drying, crop insurance, family living, repairs, and overhead. It’s a big list that is overwhelming to keep track of in your head.
Harvest Profit does this all in the time frame that matters to your “manufacturing” business, by the crop year.
All successful businesses track their “cost of goods sold” throughout their manufacturing cycle.
Do you keep track of your cost of production throughout your crop year?
Your priorities lie with planting, fertility, spraying, and harvest. And rightly so.
Harvest Profit allows you to stay on top of your numbers wherever and whenever you need them.
Our mission is to allow you to turbocharge your farm business, without turning it into another job for you.
Let’s jump into how we can specifically help you fight, and win, this battle.
Here are some benefits that you’ll be able to easily attain with Harvest Profit as your partner.
Harvest Profit enables you to track your cost of production throughout the year.
Whether it’s winter, spring, summer, or fall... you’ll have access to your cost of production at your fingertips.
We also simplify the complicated aspects of cost of production tracking: multiple entities and crop shares. We automate cost and profit tracking for both simple self-proprietorships or complicated multi-entity operations with numerous, custom crop shares.
Once again, your farm is a sophisticated manufacturing business. Not only that, it has multiple manufacturing locations that you and your team manage!
All successful manufacturing businesses measure their profitability on a location-by-location basis. Do you?
With Harvest Profit, you’ll be able to easily see which fields are the most profitable vs. which fields are costing you money.
Result: You can work to improve those fields that are acting as an anchor to your farm's income statement.
Plus, with just a few key-strokes, Harvest Profit quickly generates a current profit and loss statement, field-by-field. Bring it the next time you visit your banker. They’ll appreciate your detailed financial tracking.
Result: You’ll solidify your lender relationship and they’ll fight to keep your business!
In addition, have you ever had negotiations with landlords where the conversation pivoted to discussions about “top-of-market” coffee shop rent rumors? You can generate PDF documents of your profitability by landlord when having these negotiations.
Result: Impress your landlords and simplify negotiations with farm-specific profitability data.
In today’s uncertain farm economy, you need to bring your cost and profit visibility down to a field level.
You can use this data to guide you as you fine-tune your farm business.
Market and weather uncertainty really like to wreak havoc with your grain marketing.
It’s difficult making confident and proactive grain marketing decisions in the face of this uncertainty and volatility. Given this, many farmers make grain marketing decisions based on gut feel and emotion.
In sharp contrast, Harvest Profit allows you to create grain marketing plans based on hard data and your unique operation.
Grain marketing is not a one-size-fits-all activity.
Your farm is different than your neighbor's farm.
Harvest Profit enables you to build a grain marketing plan that’s unique to your farm.
This tool allows you to build a marketing plan based on your farm’s unique cost of production and see the impact of this plan, if executed, on your bottom line.
Harvest Profit’s goal is to enable you to make more confident and proactive grain marketing decisions. These decisions enable you to build a more consistently profitable farm that will be around for the long-run.
Here’s an email we received from a customer in Iowa that discussed his experience using Harvest Profit in his grain marketing.
My first year farming was 2016. I did an ok job of forward contracting about 50% of my insurance guarantee.
In ‘17 I tripled my acres, had a full-time job and a new family. No excuses but I didn’t pay enough attention to the market and had less than 10% marketed ahead of time. I was bullish saying there wasn’t a crop and we would see high Dec prices. I WAS WRONG! I also got LUCKY! Beans rallied and I sold the rallies along with forward contracting ‘18 crop. I missed the highs by a good $.60 but what looked like a loss turned into a profit and locked in ‘18 profit. I’m just shy of 75% sold on beans all above $9.50. Corn tested my patience but followed suit. I’m not as comfortable on corn. I once again listened to everyone saying $4.80-$5 corn. How stupid am I? Not as dumb as I was a year ago.
I’m just shy of 50% of my insurance guarantee. (Side note I’m on county yields being a new producer so it isn’t reflected in my yield goals) I may have left $90K on the table but I couldn’t have taken advantage of all of it as I wouldn’t outstretch my guarantee anyway.
That was a long story just to tell you Thank You! If it wasn’t for Harvest Profit, I would have been lost marketing grain because I wouldn’t know my cost of production. I would be listening to the news and suffering from many biases.
Creating a crop budget is not rocket science.
If you could predict your yield and final price before you plant a crop, farming would be easy.
As you know, as soon as your budget is complete it starts to become obsolete. Prices and yield potential are always changing.
Does that mean that planning is worthless? Of course not!
What a crop budget is missing is an easy way to stress-test your farm’s profitability against these inevitable fluctuations in yield and price. Harvest Profit’s what/if analysis tool allows you to do this on your farm.
This tool takes into account the following unique aspects of your farm.
The tool then calculates your per acre net income based on your final yield and the average sold price for your unsold bushels. It automatically calculates any indemnity payment or contract buyout expenses (if you sell more than you produce).
Once again, uncertainty in farming is here to stay. You can use this what/if analysis tool to help you evaluate the impact of your decisions on your bottom line.
Many farms have a variety of entity and crop share splits that make financial analysis complex.
Harvest Profit allows you to set up your fields under multiple-entity splits. You can also create customizable crop share structures and have the logic flow through to:
As we already mentioned, every farm is different. Also, every geography is different.
In some areas of our customer base, crop shares are very popular while in other areas cash rent makes up 99% of farm rent agreements.
Harvest Profit’s field-level profitability tracking allows you to track the impact of these structures on your farm over time. You can use this visibility to fine-tune your structures to help you improve your risk-adjusted returns.
Have you ever asked yourself the following question?
“How much can I afford to pay in rent for this new farm?”
If so, Harvest Profit has a helpful feature that allows you to evaluate the bottom-line impact of adding (or removing) farms from your operation. We allow you to quickly archive farms to completely remove them, and their associated production/expenses, from your operation.
You likely know exactly what this tool will help with. It allows you to quickly see the impact of spreading your overhead across more or less acres.
You can also quickly add new overhead items to your farm that would accompany added land.
The key aspect of this analysis is to evaluate both the variable and fixed expenses in your operation. Harvest Profit will help you to master this process.
Here’s an email we received recently from a farmer in Nebraska who was using Harvest Profit to evaluate a new farm purchase (He also talks about other aspects of why he uses our software).
I had a meeting with a lender recently about financing for my first land purchase and she was impressed that I could just email her projected cash flows & all of my hedges/forward contracts from Harvest Profit and a balance sheet off my QuickBooks in a few minutes. She told me I am ahead of roughly 70% of her current clients which is unreal to me.
I know farming is a lifestyle, but it is a business first and foremost, so you’d better be a dedicated businessman if you want to continue the lifestyle. I like how everything is setup within the software once you learn how to organize entities/landlords. It also helps me when it comes time to bill landlords at the end of the year since I carry their expense until the end of harvest.
Building a crop budget for the next year takes 1/3 of the time now with your software which makes my life a lot easier. I can throw numbers together and figure out crop rotation scenarios and make fertilizer decisions very easily with a solid breakeven. I like it better with the web functionality instead of having multiple excel spreadsheets open at 1 time.
Over the remainder of your farming career, you’ll likely be faced with dozens of land acquisition opportunities (for either purchase or rent).
Adding land isn’t always the magic bullet when it comes to lowering your cost of production but maximizing the efficiency of your overhead is a key ingredient in accomplishing that.
There is no better way to arm yourself to fight the uncertainty present in farming than to have a below average cost of production (on a per unit of production basis).
Our mission is to help you become a savvy professional at this type of analysis.
Harvest Profit allows you to build up a long-term database of financial knowledge that you can pass onto the next generation.
Have you ever asked yourself any questions similar to the following?
Why didn’t I rent/buy that farm in [insert year here]?
Why did I buy insanely expensive fertilizer in 2008 and not forward contract more of my production?!
Why did I not contract or hedge multiple years of production in 2012?
When you try to tell stories like this to your children (or hear them from your parents), it’s easy for these stories to sound like the old tale about “Did I tell you about the time I used to walk uphill to school both ways into a stiff head wind each way?”
It’s easy to pass on lessons but they don’t really hit home unless you can share the financial wounds (or successes) with them!
With 2-3 clicks of the mouse, you can easily share these financial lessons with the next generation in your operation.
We want to help you set them up for success!
“I'm really happy with the program! I love the field-by-field reports.”
“Just used the software for my operating note renewals…sure makes my job easier.”
“Great all-in-one software! From inputs to contracts/current futures to field by field analysis, the software has it all. With new improvements each month, can't wait to see what you come up with next year!”
“We met with a banker today to talk about an operating loan and handed him our projected P/L printed from the Harvest Profit software. He couldn't get over it. Said he wished all his farm clients had it.”
“I love this software. I showed another farmer around my age this last week and he was amazed. Keep up the good work!”
“We love Harvest Profit, and our banker does too!”
“In regards to bang for your buck, HarvestProfit could help you find to leaks and opportunities in your budgeting faster than any program I've used.”
“Harvest Profit has helped my operation immensely in 2018. Seeing my P/L adjust each day as well as my break even targets has allowed me to focus even more on the numbers of my farm. Watching my cost of production adjust with the change in crop size has also allowed me to focus more on making sales at prices that allow my farm to make money. In the past, I have always been a grain price speculator, but by taking a number based approach, I am able to comfortably make sales that fit my farm's P/L goal rather than holding out hope for timing my sales to reach the peak of the market.”
“Best experience I've had. If you throw out some ideas at them, they are always willing to listen and execute on those ideas. Best bang for the buck out there.”
In farming, small incremental improvements to your operation can add up to significant amounts of equity over your farming career.
According to a recent study from the University of Illinois, they concluded that top farms tend to outperform consistently by $20-$30/acre/year.
They studied whether or not a farmer can truly outperform their peers assuming similar variables (location, soil type, off-farm income level, etc). Returns obviously vary from year-to-year but certain farms have shown an ability to consistently outperform their peers.
See below for a summary of the study.
“Returns to farms vary from one year to next due to variation in prices, yields, and costs. Within a year, some farms will have higher returns than others. Over time, there are some farms that tend to persist in having high returns. Over time, the returns of these more profitable farms tend to average $20 and $30 per acre higher than the average of all farms.”
Ask yourself the following question......
"How much does $20-30 mean to your operation on an annual basis?"
This type of outperformance doesn't happen overnight.
Harvest Profit's goal is to help you make a few better decisions each year.
Here are a few examples.
We know pricing is important to you, so we don’t hide it behind a contact form.
Our sole goal is to build software tools to help you successfully battle uncertainty on your farm. We don’t have anything else to sell you.
the software is priced at $1,500 year.
* Discounts are available to those that farm less than 750 acres.
This price includes all updates and unlimited support.
While it’s easy to focus on price, let’s take a look at what we’re trying to help you accomplish.
Small changes to the business side of your farm can quite easily add up to 100+% increases in your profitability.
Without mentioning a specific crop, let's assume you have a crop that's been averaging $500 in revenue with expenses of $485. That's $15/acre of profit.
If you increase yield and price by 2% while decreases expenses by 2%, your revenue would now be $520 (actually a bit more but that's close enough) and your expenses would be $475.30. Your profit is now $44.70/acre, a 198% increase.
Small incremental improvements to your business are the path to prosperity.