A crop profitability analysis for long‐term crop investments

Abstract

The Crop Profitability Analysis (CPA) computer program is designed to help agricultural producers make long‐run cropping decisions. CPA uses previously generated enterprise budgets to establish a base from which producers can analyze the potential profitability of perennial crops with establishment periods, such as orchard, berry, and vineyard crops, or the feasibility of long‐term crop rotations. CPA permits up to a 20‐year planning horizon and uses the economic concepts of net present value, annual equivalence, and internal rate of return to analyze the potential profitability of a given enterprise. CPA also analyzes the financial feasibility of potential investments by generating annual net cash flows.

Citation

Seavert, C., Hinman, H. and Klonsky, K. (2006), "A crop profitability analysis for long‐term crop investments", Agricultural Finance Review, Vol. 66 No. 1, pp. 125-135. https://doi.org/10.1108/00214660680001184