Sigma Xi Poster Competition
Understanding Potential Profitability Estimates for Western Kentucky Grain Production
Academic Level at Time of Presentation
Junior
Major
Agribusiness Economics
List all Project Mentors & Advisor(s)
Dr. Naveen Musunuru
Presentation Format
Poster Presentation
Abstract/Description
Understanding Potential Profitability Estimates for Western Kentucky Grain Production
Abstract
Profitability is an ongoing problem for grain farmers all across America and even the world. Without profitability, no grain farm can continue to operate. Ultimately, profitability to grain farmers is a matter of their livelihood. However, what many grain farmers are lacking is a way to predict profitability and plan accordingly. Budgets can provide an outline and tentative plan for farmers to stick to, but market price can ultimately overrule these budgets. The purpose of this particular project is to predict profitability within the Western Kentucky Grain Markets, specifically corn and soybeans, using historical budget, yield, and price data from 2007 to 2021. Throughout this project, a number of simulations were conducted providing for a greater number of profit possibilities to construct the range. The profit ranges were then converted to Probability Distribution Functions giving a range of probabilities from 0 to 100% These graphs along with the supplemental simulation data have the potential to be utilized by grain producers to aid in the prediction and preparation for various market conditions influenced by external factors for any given growing season.
Spring Scholars Week 2023 Event
Sigma Xi Poster Competition
Understanding Potential Profitability Estimates for Western Kentucky Grain Production
Understanding Potential Profitability Estimates for Western Kentucky Grain Production
Abstract
Profitability is an ongoing problem for grain farmers all across America and even the world. Without profitability, no grain farm can continue to operate. Ultimately, profitability to grain farmers is a matter of their livelihood. However, what many grain farmers are lacking is a way to predict profitability and plan accordingly. Budgets can provide an outline and tentative plan for farmers to stick to, but market price can ultimately overrule these budgets. The purpose of this particular project is to predict profitability within the Western Kentucky Grain Markets, specifically corn and soybeans, using historical budget, yield, and price data from 2007 to 2021. Throughout this project, a number of simulations were conducted providing for a greater number of profit possibilities to construct the range. The profit ranges were then converted to Probability Distribution Functions giving a range of probabilities from 0 to 100% These graphs along with the supplemental simulation data have the potential to be utilized by grain producers to aid in the prediction and preparation for various market conditions influenced by external factors for any given growing season.