Frank Lussetto, a farmer on his 3,000-acre Broadwater, Nebraska, farm, makes crucial decisions during peak planting and harvest seasons. Technology serves as his essential toolbox, enabling him to record every event and assess how these decisions affect profitability. As he explains, with 10 areas for improvement like hybrid selection and spray timing, a 1% improvement in each can lead to a significant 10% boost to the bottom line.

Technology for Navigating Challenging Times

Typically, farms use cash accounting for tax purposes to manage cash flow. However, Ben Longlet from Harvest Profit, a North Dakota-based farm management software maker, points out that cash basis can distort profitability as it doesn't account for all crop year transactions. Farmers need to know the exact costs and revenues of each bushel to make profitable sales. Harvest Profit helps during tough times by identifying opportunities.Ryan Raguse, a sixth-generation farmer from Wheaton, Minnesota, and co-founder of Bushel Farm, experienced firsthand how this software impacted his management decisions. After his father's unexpected passing in 2023, he took over the farm and saw the value of organized farm records.As an agronomist, grain marketer, accountant, and mechanic, Raguse finds technology immensely useful. Bushel Farm has helped him understand farm profitability down to the 10-minute delay in the market. When markets fluctuate around his break-even point, he can capitalize on marketing opportunities to stay profitable.Harvest Profit offers field-level profit maps, providing a detailed view of what drives profitability in each field.

Evaluating Field Profitability

Lussetto views his fields as a factory and uses data to rate their profitability. For instance, by tracking irrigation pumping costs, he can determine that for some of his land, the break-even point is 40¢ or 50¢ more per bushel due to water depth and crop insurance costs in different counties. Harvest Profit helps him identify profitable fields and areas that need improvement.Raguse has applied his understanding of field-level direct and overhead costs to make planting decisions. In 2018, when everyone was bearish on soybeans, accurate overhead cost calculations showed a higher contribution margin. They planted more soybeans that year, which proved to be a good decision for their operation.There is a lot of uncertainty heading into 2025, and many farmers are being cautious. Lussetto, with almost 50 years of farming experience and having gone through previous downturns like the 1980s, believes that these management tools will help them weather the current cycle better.