Tracking the Profitability of Soybean Production
The profitability of producing soybeans varies greatly from year to year and within years. To track this variability we have developed typical soybean farming enterprises that represent farms in central and northern Iowa. We track the monthly profitability of soybean production by comparing the break-even cost of production to the monthly soybean selling price. The analysis shows the per bushel profit (loss) potential each month.
The cost of soybean production varies greatly depending on the land ownership arrangement. So, the monthly profitability is computed under three land ownership scenarios.
- The farmland is owned by the farm operator (debt free).
- The farm operator rents the farmland from a landlord.
- The farm operator owns forty percent of the farmland and rents the remaining sixty percent.
The analysis is updated monthly to show the current profitability.