Cost Cutting Strategies for Midwestern Row Crop Producers

From 2013 to 2020, lower commodity prices resulted in a prolonged period of low returns for row crop producers in the Midwest. Reductions in land costs are often suggested as a strategy during periods of low returns but can be difficult to implement. This article uses farm- and field-level data from Illinois to examine other areas to reduce costs and improve returns. The data suggests that the majority of Midwest farm operations could implement cost reducing strategies including but not limited to reducing nutrient application rates, reducing tillage passes or modifying practices, examining harvest equipment choices, or refinancing to lower interest costs.