What is your level of profitability?
Tom Kriegl, University of Wisconsin Extension and Center for Dairy Profitability agricultural economist, has developed a scale to help farm families estimate how profitable their operation is, and to give them a sense of the amount of risk their farm business has — without requiring them to become economists.
“Farm families can use this scale to better understand their level of sustainability into the future,” says Kriegl. “Those finding themselves below Level 7 are urged to seek more in-depth financial analysis help.”
The profitability levels described below are numbered from 1 to 10, with 10 being the most desirable and 1 being the least desirable.
This article published in the May, 2010 edition of WISCONSIN AGRICULTURIST.
All rights reserved. Copyright Farm Progress Cos. 2010.