I can’t get the rent down any further on about 10% of my land. This land isn’t very productive, and I’m tempted to just let it go. What should I think about? — H.T., Illinois

Here are a few considerations. First, make sure you have a good handle on your actual profitability field by field. It sounds like you already have an idea of this. If you need more data, you might work with an ag finance adviser to get additional information.

Second, do an analysis to consider the impact of your fixed costs — those that aren’t going to change — even if you decide to get rid of that land. The same fixed costs will be spread over fewer acres, carrying more of the burden.

Ironically, the profitability of our whole operation can sometimes go down by getting rid of unprofitable land, which seems rather counter-intuitive.

Carefully analyze the impact on profitability of the entire operation around letting go of acres, even if those acres, by themselves, are not profitable. Sometimes farms that aren’t profitable in and of themselves are still helping the overall operation.

Finally, if you do decide to get rid of those acres, what strategy will you have in place to replace them with more highly productive land or more profitable land?

The ideal situation is being able to find replacement land that’s more profitable per acre.

However, it’s true that finding and getting profitable land to farm is no easy task, no matter where you farm. If that isn’t something you can count on for 2019, go back to analyze your overall operation’s numbers and determine what the impact will be from taking those acres out of the picture.

A financial adviser who specializes in working with farms may be helpful to enlist for that process.

Frye is president and CEO of Water Street Solutions. Send questions to: [email protected]