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Assessing Economic Profit and Operating Costs: A Comparative Analysis of Central and Southern Illinois Grain Farms

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  • Loren Koenigstein
  • Jebaraj Asirvatham

Abstract

This research aims to examine how different categories of operating costs determine economic profit per acre in Central and Southern Illinois. If operating costs differentially affect economic profit in these regions, examining those relationships would facilitate decisions specific to each region. Once the distinctions between these regions can be identified, Illinois farmers will be better able to generate more profits by focusing on appropriate operating cost items and also assist with embracing changes in the agriculture industry. Using financial and economic data from Farm Business Farm Management (FBFM), we find that the best-performing farms in Southern Illinois generate more economic profit per farm than those in Central Illinois. In contrast, Central Illinois farms are more profitable on a per-acre basis.

Suggested Citation

  • Loren Koenigstein & Jebaraj Asirvatham, 2025. "Assessing Economic Profit and Operating Costs: A Comparative Analysis of Central and Southern Illinois Grain Farms," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 17(8), pages 1-1, July.
    • Handle: RePEc:ibn:jasjnl:v:17:y:2025:i:8:p:1
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    References listed on IDEAS

    as
    1. Carls, Emily & Ibendahl, Gregg & Griffin, Terry & Yeager, Elizabeth, 2019. "Factors Affecting Net Farm Income for Row Crop Production in Kansas," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2019.
    2. Todd H. Kuethe & Brian Briggeman & Nicholas D. Paulson & Ani L. Katchova, 2014. "A comparison of data collected through farm management associations and the Agricultural Resource Management Survey," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 74(4), pages 492-500, October.
    3. Banard, Freddie L. & Yeager, Elizabeth A., 2014. "Impact of Lower, More Volatile Net Farm Incomes, and Higher Interest Rates on Repayment Risk," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2014, pages 1-20.
    4. Ibendahl, Gregg, 2015. "The Effects of Machinery Costs on Net Farm Income," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2015, pages 1-11.
    5. Todd H. Kuethe & Brian Briggeman & Nicholas D. Paulson & Ani L. Katchova, 2014. "A comparison of data collected through farm management associations and the Agricultural Resource Management Survey," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 74(4), pages 492-500, October.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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