Profit per Acre, Over Production per Acre

For years, we have been taught that the way to be more profitable is to increase production.  Higher yields per acre lead to a more efficient and profitable operation.  In fact, for some this metric, production per acre, are the bragging rights that validate your success as a producer.  However, in today’s agriculture environment, chasing this metric may be lessening our likelihood of being truly successful.  Input costs, global competition, and environmental pressures all continue to increase, so production alone no longer tells the full story of success.  A producer can have a record crop and still lose money if they are not careful.  True business success depends not only on how much you produce, but on how much it costs you to produce your crop. 

This shift in mindset, focusing from “how much” to “how profitable” is a major component to regenerative agriculture.  Lessening dependence on costly inputs and strengthening your soil health is key to the resilience of your operation. It’s natural to equate higher yields with greater profits, and for many of us this is what we were taught or grew up believing to be true.  However, when we think about what it is costing us to produce our crops, we must realize adding additional inputs/costs does not guarantee us positive returns.  In fact, as we add additional inputs that are not necessary, not only are we spending more money, but we may also be reducing our efforts and hurting our production or end product.  We must understand the law of diminishing returns. Sometimes we manage ourselves out of a profit by doing too much.  Every orchard has a limit on production and pushing it too far with inputs can result in trees being stressed from over production, a decline in tree vigor, and alternate bearing becoming more pronounced.  Think of it this way, we are not just managing for this year’s crop, we are managing for crops in future seasons. 

When profit per acre is used as a performance indicator, the implications can be profound.  Maximizing profit per acre allows us to consider a balance between yield, quality, price, and efficiency.  It rewards us for good management, not just heavy use of inputs.  When we focus on profitability, we begin to ask smarter and sometimes tougher management questions:

• Which management decisions are the most important for my orchard?
• What are my management decisions costing me and are they beneficial to my overall profitability?
• Can I achieve the same results with a cheaper management strategy/input?
• Which inputs deliver the highest return on investment?
• Which orchard blocks are the most and least profitable?
• Is my management decision a short-term solution to my issue or is there a long-term strategy to fix the problem I am having?
• Are there other marketing options that I can try to increase my profits?

Shifting from production goals to profitability goals requires a change in mindset at every level of the operation.

• Set profitability targets, not just yield goals.
• Train staff to understand how costs and quality affect profit.
• Understand what each management decision costs and if there are alternative options that are cheaper.
• Reward efficiency and innovation, not just hard work or production volume. Encourage staff to look for ways to reduce costs.
• Benchmark performance annually, comparing profit per acre across different orchard blocks.  Do not manage the entire operation the same way. Manage so that each orchard block is profitable.
• Think outside the box when it comes to revenue generation.  Can you market your crop in a different way? Are there other things that can be implemented to generate revenue? 

Focusing on profit per acre doesn’t mean skimping on management.  It means spending smarter, using data, and utilizing precision management to get the most return for every dollar spent. We are focused on ensuring that our trees and soils are healthy.  A healthy, sustainable orchard may produce slightly less, but it does so consistently and efficiently, which builds wealth over time.  We do not have to be as concerned about the boom – bust production cycles and are not at the mercy of the input industry when inputs and costs skyrocket. 

Example:

Despite producing 25% fewer pounds per acre, the profit-focused management nets nearly double that of the high-production focused orchard.  The difference lies in lower input costs and smarter resource utilization. 

*This article was first published in the December 2025 issue of Pecan South Magazine.

Charles Rohla, Ph.D.

Charles Rohla, Ph.D., serves as the manager of pecan systems. He oversees pecan research, consultation and operations. He joined Noble in 2006. He is actively involved with several state and national pecan and agriculture organizations. He has a bachelor’s degree in animal science, a master’s degree in agricultural education and a Ph.D. in crop science from Oklahoma State University. He owns a farm where he produces hay, pecans, show horses, cattle and pigs. He can be found on LinkedIn.

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