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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.

The purpose of this paper is to present AgProfit™ as a tool for users to assess economic risks associated with adoption of new technologies or production practices in production agriculture.

This paper presents the AgProfit™ software program, its approach to capital investment analysis and demonstrates the program use by developing a scenario for analysis and discusses the process and results of the analysis.

AgProfit™ was developed to assist growers in understanding the risks associated with technology adoption. The example presented in this paper demonstrates the value of the software program as a decision‐making tool on the complex question of how many acres are required for an economically beneficial adoption of a new technology. Thus, with this software program, a grower can base investment decisions on the net present value and internal rates of return on an investment rather than a sales pitch or “gut” feeling.

AgProfit™ is a recently developed software program that fills a void in available decision tools, providing users with the ability to assess the profitability and feasibility of production investment decisions.