Let's Start with Statistics
- Supply chain disruptions during a pandemic,
- A short-term decline in grain prices while meat prices rise,
- Double increase in payments from the state.
The profit of the agricultural sector in 2020 will amount to $119.6 billion.
But we examined the situation in general. What about calculating and finding the factors that affect the profit of each particular farmer? Let’s take a look at what makes American farming profitable.
Modern Technologies Are the Basis for the Profitability of the Agricultural Sector
- Owners of small farms, most often of elderly age, who are engaged in farming purely as a hobby.
- Organic farms, specializing in high-quality products and, accordingly, applying new technologies in their business.
- Large agricultural holdings that produce the vast majority of products for the United States and for export.
- GPS for automatic steering on tractors.
- Drawing up accurate weather maps and forecasts, landscape maps.
- Applying automatic fertilization and insecticide application.
- The use of drones for monitoring fields and spraying fertilizers.
- ·Introduction of new types of agricultural machinery for harvesting and field processing.
Marketing Methods to Increase Profits
But if marketing is more of an auxiliary tool, then new technologies of precision ag are the main one. Precision agriculture is the one to influence the growth of farm profits in the United States.
Agriculture in the United States is on track for the last three most profitable years in half a century. Adjusted for inflation, since 1973, projected farm net income for 2020 will only be exceeded compared to 2011 and 2013.