Are You a Grainmaker? A Profitability Self-Assessment

What is a Grainmaker?

During my time working with grain producers as a Financial Officer, I've noticed a select group of farmers who seem to remain profitable regardless of commodity prices, weather challenges or economic conditions. I call these farmers the “grainmakers.” Most people are familiar with the term "rainmaker” someone who consistently creates opportunities and drives success. In much the same way, grainmakers seem to create opportunities for profitability regardless of the circumstances around them.

Even for these producers, remaining profitable in 2026 will be a challenge. Low grain prices and high input costs are likely to put pressure on many operations. I wanted to give you some insights into a few areas that I see this group focusing on in order to persevere through this drought of earnings. I've also included a short self-assessment that may help you identify whether your operation shares some of the characteristics of a grainmaker.

Revenue Drives Long-Term Profitability

Revenue is the key driver of long-term profitability.   Because farmers produce commodities, prices tend to be similar across markets.   Increasing revenue requires thoughtful planning, strong execution and continuous improvement.  It is often an incremental process that takes time.  Grainmakers have been continuously working on improving yields, learning about crop insurance and farm programs, and strengthening their grain marketing strategies throughout their careers.

Managing Costs Without Sacrificing Revenue

Cutting costs can be the quickest way to consistent profitability.  Cost structure can be changed more quickly than revenue can be increased.  Producers can often see results quickly when they are willing to make difficult decisions. Many grain producers mistakenly believe their cost structure is very similar to most other farmers in their area, but that simply isn’t true.  Every producer knows one or two costs they could reduce quickly.  They may choose not to act on cutting these costs because of non-financial considerations or the change may be uncomfortable. Care must be taken when cutting costs to make sure it doesn’t impact revenue.  Successful grainmakers know how to reduce costs while protecting – or even improving – their revenue potential.

To see if you identify with a grainmaker, answer the questions below with a response of 10 being a statement that you strongly agree with and a response of 1 being statement you do not agree with at all.   (please answer each question with a response of 1 through 10) There are no right or wrong answers—the goal is to identify opportunities for continuous improvement.

1. I routinely compare seed hybrids on my farm, compare different field practices on my farm for effectiveness, and analyze the costs and benefits of crop protection and fungicides.  I understand why I choose the products I am using.

2. I know and understand opportunities with respect to my crop insurance policy and revenue levels, especially with respect to ECO, SCO.   I take time to review these programs with a qualified agent.

3. I feel that I know and understand farm programs such as ARC, PLC, Farm Bridge, base acres, carbon credits, EQIP, and conservation payment opportunities.

4. I can easily access my actual production history (APH) and yield maps and use this information to make decisions regarding the profitability of my farms.    I use an effective farm break-even analysis tool for this process every crop year.  

5. I have reached out to others for ideas to help my farm business run profitably.    I have visited with my banker, peer group, crop advisor, or insurance advisor to specifically look for ways to improve revenue or cut costs on my farm.  I use benchmarking information to compare my farm with others in the industry.

6. I analyze grain basis opportunities which may be further away from my farm, or merchandisers that may not be my first or second preference to unlock extra revenue when available.  I may also look for selling opportunities or collaboration with livestock producers in my area to enhance profits or cut costs.  

7. I am comfortable with my current marketing program including my level of involvement with marketing services and professionals.  I believe my marketing process is effective and contributes to the profitability of my operation.

8. When I see balances built up in checking accounts, I quickly pay down operating lines of credit, commodity loans, or move my money to a higher-yielding money market account.   I explore refinancing opportunities on loans with higher rates.    I consider how loan amortizations and repayment terms can affect my cash flow. I make sure the money that I have works for me.   

9. I exercise caution before taking on new land that needs a lot of improvement expense with respect to fertility, tiling, clean-up.  I am cautious about taking on large land rental payments during extended periods of low commodity prices.  I use the same scrutiny when considering large projects around the farm such as, new buildings, home remodel, and non-farm related commitments.  

10. I am proactively saving money on my farm.   I feel confident shopping at different suppliers for major categories of farm inputs for pricing and service.   I look for under-utilized assets and sell them to raise cash.  I know the amount spent on family living and it fits into my farm budget.

Scoring: 

Ready to take the next step?

Whether you're reviewing grain marketing strategies, evaluating financing options or planning for the next crop year, your Compeer Financial team can help you identify opportunities to strengthen your operation.