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.

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