Growing With An ROI Mindset: Measuring On-Farm Success
Summary of what you'll find
In today’s farming environment, success is no longer defined by yield alone.
While higher yields have long been the goal, they don’t always translate into higher profits. In a tight margin environment, pushing for maximum production can add costs without a clear return.
That reality is forcing a closer look at how decisions are made. More farmers are measuring success not by how much a field produces, but by what each acre returns to the bottom line.
On a recent episode of The Dirt PodKast, fifth-generation farmer Ryan Christensen joined us to explore what this approach looks like in practice, and why return on investment is reshaping how success is measured on the farm.
The downside of a yield-first approach
Focusing on yield alone assumes that more production will always lead to stronger profitability. But in practice, it doesn’t always pencil out. At a certain point, the cost of inputs can outweigh the value of the yield they generate.
This can show up in decisions like investing in a fungicide pass when application costs outweigh the crop’s value or applying nutrient rates beyond what crops can realistically use. In both cases, the added cost is not matched by a meaningful return.
As Christensen explained, every decision must justify itself for his bottom line: “That dollar spent … is it going to give me the yield that I need to cover not only the cost … but enough to merit that cost?”
Taking a yield-first approach can quietly reduce your margins. Instead of focusing on return, you are maximizing your output even when producing more bushels means spending more than you will get back after harvest.
Christensen explained it simply: “Yes, you’ve maximized your yield, but you’ve also burned through your pocketbook. The bank doesn’t care what your yield number is. They care what money you’re bringing in from that and what money is going out.”
What an ROI approach looks like in practice
Shifting to an ROI mindset doesn’t mean cutting back on inputs. It means being more intentional about where and how they are used.
For Christensen, that’s meant taking a hard look at his investments and asking one simple question: is it providing a measurable return?
That question has led to more targeted decisions across his operation, especially when it comes to fertilizer. Rather than applying the same strategy across every acre, he adjusts his approach based on crop value and expected return.
For example, on his higher-value crops like potatoes, he invests in inputs that protect nutrients and support performance, even when they are more costly. The added cost is justified by the return in the field.
On the other hand, he will apply a more cost-effective fertilizer on lower-value crops like small grains. It is a decision that makes the most sense for his bottom line, year after year.
This is how an ROI mindset shows up in the field—evaluating every input based on the return it can realistically deliver.
“Farming is a business. If it’s run like a business, you’re going to look at it and do what you can to maximize your return on your investment rather than just cranking out the most,” said Christensen.
Putting an ROI mindset into practice
Christensen says that farming for profit is one of the most important ways that farmers can keep their operations sustainable, especially in a tight margin environment. The approach is not about doing less; it is about making every decision count.
Listen to the full episode to hear more about Christensen’s experience implementing an ROI-first approach on his operation and the practices that have helped him improve his profitability:
Evaluate and optimize your input program with our free Input Planning Calculator.
Learn more about how to optimize your input plans for ROI with the following eKonomics resources:
Improving ROI with Science-Based Nutrient Management
Input Planning Calculator: Helping You Optimize Crop Management Decisions
