Farm Power, The Cash Crop

The Operating Profit Margin Ratio (OPMR) for farms is probably the best or fairest way to compare different farms, of different sizes, with equipment of different ages and conditions, and a thousand other variables. One case study of a West Central Indiana farm shows the average OPMR for the five years between 2010 and 2014 to be 0.2449, or about 25%. In the very next year (2015), because of very wet conditions, corn production was considerably lower. Combined with lower crop value at market, the OPMR was into negative territory (-0.0356), or a loss just over 3½%. In 2016 it was expected to be on the plus side by 4.61%. A New Strategy - How to Turn Your Farm Power into a Cash Crop With a little thoughtful planning and investment, you could decrease the costs of operating your farm by eliminating your need for electrical power from the grid. This amounts to better profit in good years and lower losses in the bad years. There’s even a way to do this for free. All along the northern edge of your property, or any space where shadows are not a problem, you could contract with the local electrical facility (or an agent) to place their frame mounted solar panels where they won’t shade your crops. They can produce “green power” for the utility, which can then be exchanged for valuable carbon credits. (David Suzuki. et al, 2008) This depends on the net metering (Polaris, 2017) rules where you live which are supported by 43 states, Washington, D.C., and 4 territories currently (SEIA, 2017). Some states inexplicably forbid selling power back to the utility. Speak to your local political representative to get this changes if your state still hasn’t joined the 21st century. . In many cases, carbon credits are so highly valued that the utility often pays more per “green” kilowatt than they charge their customers!  If that’s true for you, you have a cash crop which requires no planting, no fertilizing, no harvesting, and no maintenance. Even without the bonus payment, you still get “utility rates” for your excess energy, which is provided as a credit towards your overall use, or acts as a bank where you can withdraw it for free if or when you need it yourself. The money is generated by energy users (corporations or household users) that that elect to pay slightly more for their power to demonstrate environmental responsibility, to feel better about themselves, or to help promote more green energy production.  Many [...]