How Much Better Do You Need to Be

David Kohl of Virginia Tech was one of the only Farm Futures speakers I have heard before this year. His advice and guidance is excellent.  I think it was one of the other speakers who share 2 slides.  One showed farm profits prior to 2013.  Top Producers were making excellent money.  Average producers were doing well.  The bottom tier was still showing a profit.  Now, Top Producers are still doing well, although maybe not as good as 6 years ago.  Average producers are above break even, but the Bottom tier is in trouble.  Kohl says that producers need to be 5% better than average in order to succeed.  He says the businesses a that are a little better at production, marketing, cost control, and asset and capital efficiency are going to stay in business.