2012 Crop Budgets Excel1 by nXCwt2Ts

VIEWS: 4 PAGES: 17

									                                                                            UPDATED 07/05/12



Crop budgets vary greatly by operation! Prices and cost estimates are averages collected from
retailers across the state. Input prices will vary by crop, management, region, varieties and
other criteria and may not be reflective of YOUR true costs.

Assumptions in Analysis:
- Land charge of $90. Purchase price is not included.
- Operating expenses borrowed at 8.5% interest for 5 months of expenses.
- Fertility rates based on MCE SFM-1 guidelines
- Assuming medium fertility levels
- Fixed costs are calculated with MD Custom Rates (2011)
       - You should use your actual fixed costs

Budgeting Recommendations:
- Create your own budgets and fixed costs including equipment, repairs, insurance, depreciation, interest
and taxes
- Write and implement a farm business plan - setting goals, managing finances and develop markets
- Manage capital assets such as land and equipment
- Track your expenses and at the end of the year reconcile

Using This Spreadsheet
- This workbook is designed to be updated very easily. Click on the INPUTS worksheet and make changes.
This will automatically update changes on other worksheets (i.e. N changes from .47 to .54 update it on the
inputs page and it automatically updates all N prices for the 5 crops)
- Be sure to save changes periodically and use the date in the title to mark when the budget was prepared.

Questions Contact: Shannon Dill, 410-822-1244 or sdill@umd.edu

                               www.mdgrainmarketing.umd.edu
Budgets were developed by Ben Beale, Francis Breeding, Shannon Dill, Dale Johnson, Jim Lewis and Jenny
Rhodes

                                        EQUAL ACCESS PROGRAMS
                                     UNIT        PRICE
YEAR                                            July 5,2012
INCOME
CORN                              BUSHEL             $6.98 Dec 12
SOYBEANS                          BUSHEL            $15.11 Nov 12
WHEAT                             BUSHEL             $8.22 Jul 12
EXPENSES
             SEED
CORN CONVENTIONAL                 1,000 SEEDS        $1.61
CORN ROUNDUP READY                1,000 SEEDS        $3.75 Triple Stack
SOYBEAN                           1,000 SEEDS        $0.24
SOYBEAN RR                        1,000 SEEDS        $0.38 RR II
WHEAT                             POUND              $0.05
          FERTILIZER
NITROGEN                          POUND              $0.68
PHOSPHORUS                        POUND              $0.78
POTASH                            POUND              $0.58
LIME                              TON               $45.00
          PESTICIDES
2 4-D                             QUART              $3.50
ATRAZINE                          QUART              $1.00
GRAMOXONE INTEON                  PINT               $2.87
HARMONY                           OUNCE             $11.00
LUMAX                             QUART             $12.50
OSPREY                            OUNCE              $3.03
ROUNDUP                           QUART              $2.00
TILT                              OUNCE              $0.95
TOUCHDOWN                         QUART              $4.00
WARRIOR                           OUNCE              $2.15
            OTHER
SOIL TEST                         ACRE               $0.30
CROP INSURANCE - Corn             ACRE              $25.49    2012 Rate
CROP INSURANCE - Corn Irrigated   ACRE              $27.79    2012 Rate
CROP INSURANCE - Soybeans         ACRE              $14.90    2012 Rate
CROP INSURANCE - Wheat            ACRE              $13.15    2012 Rate
DRYING FUEL                       BUSHEL             $0.40
         FIXED COSTS
STALK CHOPPING                    ACRE              $15.80
CHISEL PLOWING                    ACRE              $16.39
DISKING                           ACRE              $16.14
FIELD CULTIVATOR/FINISHER         ACRE              $14.37
MINIMAL TILLAGE                   ACRE              $16.88
FERTILIZER SPREADING              ACRE               $8.33
SIDEDRESSING                      ACRE              $10.21
MANURE LOADING                    TON               $10.67
MANURE SPREADING - LITTER         TON                $7.88
MANURE HAULING                    TON               $20.50
PESTICIDE SPRAYING                ACRE               $8.31
NOTILL DRILLING
  SMALL GRAIN                     ACRE              $17.12
PLANTING
  CORN - Conventional             ACRE              $17.61
  CORN - NoTill                   ACRE              $19.31
  SOYBEAN - Conventional          ACRE              $17.00
  SOYBEAN - NoTill                ACRE              $17.82
BROADCAST SEEDING                 ACRE               $6.00
HARVESTING
  CORN                            ACRE              $30.33
  SOYBEAN                         ACRE              $29.92
  WHEAT                           ACRE              $29.97
HAULING                           BUSHEL             $0.15
LAND CHARGE                       ACRE              $90.00
CORN GRAIN, NO-TILL NON-IRRIGATED                                             PER ACRE FOR                     July 5,2012
ITEM                                                              UNIT         QUANTITY          PRICE           TOTAL
GROSS INCOME
CORN GRAIN                                                   BUSHEL                     150            $6.98      $1,047.00
VARIABLE COSTS
SEED RR                                                      1000 SEEDS                  28            $3.75       $105.00
SOIL TEST                                                    ACRE                          1            0.30          0.30
NITROGEN                                                     POUND                      150             0.68        102.00    ANALYSIS
PHOSPHATE                                                    POUND                       30             0.78         23.40
POTASH                                                       POUND                       60             0.58         34.80    BREAKEVEN                 $4.04
LIME                                                         TON                         0.5           45.00         22.50    VARIABLE COSTS PER UNIT   $2.77
LUMAX                                                        QUART                       2.5           12.50         31.25    OVERHEAD COST PER UNIT    $1.27
ATRAZINE                                                     QUART                       0.5            1.00          0.50    TOTAL COST PER UNIT       $4.04
ROUNDUP                                                      QUART                         1            2.00          2.00    PROFIT PER UNIT           $2.94

CROP INSURANCE (CRC 70%)                                     ACRE                          1           25.49         25.49

DRYING FUEL                                                  BUSHEL                     150             0.36         54.00



INTEREST ON OPERATING CAPITAL                   $321.75         0.5      8.5%       13.67
TOTAL VARIABLE COSTS LISTED ABOVE                                                 $414.91
FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS)

FERTILIZER SPREADING                                         ACRE                          1            8.33          8.33
NO-TILL PLANTING WITH FERTILIZER                             ACRE                          1           19.31         19.31
NITROGEN APPLICATION                                         ACRE                          1           10.21         10.21
PESTICIDE APPLICATIONS                                       ACRE                          1            8.31          8.31
HARVESTING                                                   ACRE                          1           30.33         30.33
HAULING                                                      BUSHEL                     150             0.15         22.50
INTEREST ON SPRING CUSTOM CHARGES                                 46.16                  0.5            8.5%          1.96


LAND CHARGE                                 ACRE                                           1           90.00         90.00
TOTAL FIXED COST LISTED ABOVE                                                                                      $190.95
TOTAL VARIABLE AND FIXED COST LISTED ABOVE                                                                         $605.87
NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE                                                                $441.13
                                                                                                   PRICES
NET INCOME ABOVE VARIABLE AND                                       YIELDS           $5.24           $6.98            $8.73
FIXED COSTS LISTED ABOVE FOR                                          112.5        ($16.93)        $179.38         $375.70
VARIOUS YIELDS AND PRICES                                               150        $179.38         $441.13         $702.88
                                                                      187.5        $375.70         $702.88        $1,030.07
Assumptions:
Non-continuous corn so soil insecticide may not be necessary.
If following beans add 20 lb N credit
Local hauling within 30 miles of farm
Fertility rates based on MCE SFM-1 guidelines
Assuming medium fertility levels
Bt seed corn, hybrid, mid price grade
Sensitivity analysis based on 75%,100% and 125% of typical yield and current forward contract price.
CORN GRAIN, CONVENTIONAL NON-IRRIGATED                                        PER ACRE FOR                     July 5,2012
ITEM                                                              UNIT        QUANTITY           PRICE           TOTAL
GROSS INCOME
CORN GRAIN                                                   BUSHEL                     150            $6.98      $1,047.00
VARIABLE COSTS
SEED                                                         1000 SEEDS                  28            $1.61        $45.08
SOIL TEST                                                    ACRE                          1            0.30          0.30
NITROGEN                                                     POUND                      150             0.68        102.00    ANALYSIS
PHOSPHATE                                                    POUND                       30             0.78         23.40
POTASH                                                       POUND                       60             0.58         34.80    BREAKEVEN                  $3.92
LIME                                                         TON                         0.5           45.00         22.50    VARIABLE COSTS PER UNIT   $2.34
LUMAX                                                        QUART                       2.5           12.50         31.25    OVERHEAD COST PER UNIT    $1.59
ATRAZINE                                                     QUART                       0.5            1.00          0.50    TOTAL COST PER UNIT       $3.92
                                                                                                                              PROFIT PER UNIT           $3.06
CROP INSURANCE (CRC 70%)                                     ACRE                          1           25.49         25.49

DRYING FUEL                                                  BUSHEL                     150             0.36         54.00



INTEREST ON OPERATING CAPITAL                     $259.83         0.5      8.5%                                      11.04
TOTAL VARIABLE COSTS LISTED ABOVE                                                                                  $350.36
FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS)
CHISEL PLOWING                              ACRE                    1    $16.39                                     $16.39
DISKING                                     ACRE                    1     16.14                                      16.14
FIELD CULTIVATOR/FINISHER                   ACRE                    1     14.37                                      14.37
FERTILIZER SPREADING                        ACRE                    1      8.33                                       8.33
PLANTING WITH FERTILIZER                    ACRE                    1     17.61                                      17.61
NITROGEN APPLICATION                        ACRE                    1     10.21                                      10.21
PESTICIDE APPLICATIONS                      ACRE                    1      8.31                                       8.31
HARVESTING                                  ACRE                    1     30.33                                      30.33
HAULING                                     BUSHEL               150       0.15                                      22.50
INTEREST ON SPRING CUSTOM CHARGES                 $91.36          0.5      8.5%                                       3.88


LAND CHARGE                                  ACRE                                          1           90.00         90.00
TOTAL FIXED COST LISTED ABOVE                                                                                      $238.07
TOTAL VARIABLE AND FIXED COST LISTED ABOVE                                                                         $588.44
NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE                                                                $458.56
                                                                                                    PRICES
NET INCOME ABOVE VARIABLE AND                                       YIELDS           $5.24           $6.98            $8.73
FIXED COSTS LISTED ABOVE FOR                                          112.5          $0.50         $196.81         $393.13
VARIOUS YIELDS AND PRICES                                               150        $196.81         $458.56         $720.31
                                                                      187.5        $393.13         $720.31        $1,047.50
Assumptions:
Non-continuous corn so soil insecticide may not be necessary.
Local hauling within 30 miles of farm
Fertility rates based on MCE SFM-1 guidelines
Assuming medium fertility levels
Bt seed corn, hybrid, mid price grade
Sensitivity analysis based on 75%,100% and 125% of typical yield and current forward contract price.
CORN GRAIN, NO-TILL IRRIGATED                                              PER ACRE FOR                        July 5,2012
ITEM                                                           UNIT         QUANTITY           PRICE             TOTAL
GROSS INCOME
CORN GRAIN                                                BUSHEL                      200              $6.98      $1,396.00
VARIABLE COSTS
SEED RR                                                   1000 SEEDS                    32             $3.75        $120.00
SOIL TEST                                                 ACRE                           1              0.30           0.30
NITROGEN                                                  POUND                       200               0.68         136.00
PHOSPHATE                                                 POUND                         45              0.78          35.10
POTASH                                                    POUND                       100               0.58          58.00
LIME                                                      TON                          0.5             45.00          22.50
LUMAX                                                     QUART                        2.5             12.50          31.25
ATRAZINE                                                  QUART                        0.5              1.00           0.50
ROUNDUP                                                   QUART                          1              2.00           2.00

CROP INSURANCE (CRC 70%)                                  ACRE                           1             27.79          27.79
                                                                                                                       0.00
DRYING FUEL                                               BUSHEL                      200              0.40           80.00
IRRIGATION EXPENSE (eletric, fuel, etc)                   INCH                         10               7.78           77.80
IRRIGATION REPAIR & MAINTENANCE                           ACRE                          1              10.00           10.00

INTEREST ON OPERATING CAPITAL                 $405.65          0.5       8.5%       17.24
TOTAL VARIABLE COSTS LISTED ABOVE                                                 $618.48
FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS)
FERTILIZER SPREADING                     ACRE                    1       8.33        8.33
NO-TILL PLANTING WITH FERTILIZER         ACRE                    1      19.31       19.31
NITROGEN APPLICATION                     ACRE                    1      10.21       10.21
PESTICIDE APPLICATIONS                   ACRE                    1       8.31        8.31
HARVESTING                               ACRE                    1      30.33       30.33
HAULING                                  BUSHEL               200        0.15       30.00
INTEREST ON SPRING CUSTOM CHARGES               46.16          0.5       8.5%        1.96
IRRIGATION PAYMENT (including interest)  ACRE                    1     150.00      150.00
LAND CHARGE                               ACRE                                           1             90.00          90.00
TOTAL FIXED COST LISTED ABOVE                                                                                       $348.45
TOTAL VARIABLE AND FIXED COST LISTED ABOVE                                                                          $966.93
NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE                                                                 $429.07
                                                                                                  PRICES
NET INCOME ABOVE VARIABLE AND                                    YIELDS            $5.24            $6.98             $8.73
FIXED COSTS LISTED ABOVE FOR                                         150        ($181.68)          $80.07           $341.82
VARIOUS YIELDS AND PRICES                                            200          $80.07          $429.07           $778.07
                                                                     250         $341.82          $778.07         $1,214.32
Assumptions:
Non-continuous corn so soil insecticide may not be necessary.
If following beans add 20 lb N credit
Local hauling within 30 miles of farm
Fertility rates based on MCE SFM-1 guidelines
Assuming medium fertility levels
Bt seed corn, hybrid, mid price grade
Sensitivity analysis based on 75%,100% and 125% of typical yield and current forward contract price.
Average variable cost for irrigation (electric, diesel, gas) = $7.78/inch
Average variable cost for irrigation (repair/maintenance) = $10/acre
Average fixed cost (irrigation payments) =~$150/acre
ANALYSIS

BREAKEVEN                 $4.83
VARIABLE COSTS PER UNIT   $3.09
OVERHEAD COST PER UNIT    $1.74
TOTAL COST PER UNIT       $4.83
PROFIT PER UNIT           $2.15
CORN GRAIN, NO-TILL, POULTRY LITTER                                   PER ACRE FOR                      July 5,2012
ITEM                                                      UNIT          QUANTITY           PRICE          TOTAL
GROSS INCOME
CORN GRAIN                                           BUSHEL                       150           $6.98      $1,047.00
VARIABLE COSTS
SEED RR                                              1000 SEEDS                    28           $3.75        $105.00
SOIL TEST                                            ACRE                           1            0.30           0.30
NITROGEN                                             POUND                         80            0.68          54.40
PHOSPHATE                                            POUND                          0            0.78           0.00
POTASH                                               POUND                          0            0.58           0.00
POULTRY LITTER 70.44-59.42-46.86 lbs/ton             TON                            2           12.00          24.00
LIME                                                 TON                          0.5           45.00          22.50
LUMAX                                                QUART                        2.5           12.50          31.25
ATRAZINE                                             QUART                        0.5            1.00           0.50
ROUNDUP                                              QUART                          1            2.00           2.00

CROP INSURANCE (CRC 70%)                             ACRE                           1           25.49          25.49

DRYING FUEL                                          BUSHEL                       150            0.40          60.00

INTEREST ON OPERATING CAPITAL              $239.95         0.5        8.5%      10.20
TOTAL VARIABLE COSTS LISTED ABOVE                                             $335.64
FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS)
MANURE HAULING                       TON                     2       20.50      41.00
MANURE LOADING                       TON                     2       10.67      21.34
MANURE SPREADING - LITTER            TON                     2        7.88      15.76
MINIMAL TILLAGE                      ACRE                    1       16.88      16.88
NO-TILL PLANTING                     ACRE                    1       19.31      19.31
NITROGEN APPLICATION                 ACRE                    1       10.21      10.21
PESTICIDE APPLICATIONS               ACRE                    1        8.31        8.31
HARVESTING                           ACRE                    1       30.33      30.33
HAULING                              BUSHEL               150         0.15      22.50
INTEREST ON SPRING CUSTOM CHARGES           91.81          0.5        8.5%        3.90

LAND CHARGE                            ACRE                                         1           90.00          90.00
TOTAL FIXED COST LISTED ABOVE                                                                                $279.54
TOTAL VARIABLE AND FIXED COST LISTED ABOVE                                                                   $615.18
NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE                                                          $431.82
                                                                                             PRICES
NET INCOME ABOVE VARIABLE AND                               YIELDS             $5.24           $6.98           $8.73
FIXED COSTS LISTED ABOVE FOR                                  112.5          ($26.24)        $170.07         $366.38
VARIOUS YIELDS AND PRICES                                       150          $170.07         $431.82         $693.57
                                                              187.5          $366.38         $693.57       $1,020.76
Assumptions:
Non-continuous corn so soil insecticide may not be necessary.
If following beans add 20 lb N credit
Local hauling within 30 miles of farm
Fertility rates based on MCE SFM-1 guidelines
Assuming medium fertility levels
Bt seed corn, hybrid, mid price grade
Poultry litter estimates - Economic Value of Poultry Litter 2002. Lichtenberg, Parker, Lynch.
Litter will provide nitrogen availability at year 2 20% and year 3 5%
Sensitivity analysis based on 75%,100% and 125% of typical yield and current forward contract price.
ANALYSIS

BREAKEVEN                 $4.10
VARIABLE COSTS PER UNIT   $2.24
OVERHEAD COST PER UNIT    $1.86
TOTAL COST PER UNIT       $4.10
PROFIT PER UNIT           $2.88
SOYBEANS RR READY                                                             PER ACRE FOR                      July 5,2012
ITEM                                                              UNIT         QUANTITY          PRICE            TOTAL
GROSS INCOME
SOYBEANS                                                     BUSHEL                       40           $15.11        $604.40
VARIABLE COSTS
SEED                                                         1000 SEEDS                 150             $0.38         $57.00
SOIL TESTING                                                 ACRE                         1              0.30           0.30
                                                                                                                               ANALYSIS
PHOSPHATE                                                    POUND                        45             0.78          35.10
POTASH                                                       POUND                        40             0.58          23.20   BREAKEVEN                 $8.82
LIME                                                         TON                         0.5            45.00          22.50   VARIABLE COSTS PER UNIT   $4.34
GRAMOXONE INTEON                                             PINT                          2             2.87           5.74   OVERHEAD COST PER UNIT    $4.48
ROUNDUP                                                      QUART                         1             2.00           2.00   TOTAL COST PER UNIT       $8.82
WARRIOR                                                      OUNCE                         3             2.15           6.45   PROFIT PER UNIT           $6.29


CROP INSURANCE (CRC 70%)                                     ACRE                          1            14.90          14.90



INTEREST ON OPERATING CAPITAL                                       $152.29              0.5            8.5%            6.47

TOTAL VARIABLE COSTS LISTED ABOVE                                                                                    $173.66
FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS)
FERTILIZER APPLICATION                     ACRE                   1       8.33                                          8.33
SOYBEAN - NoTill                           ACRE                   1      17.82                                         17.82
PESTICIDE APPLICATIONS                     ACRE                   3       8.31                                         24.93
HARVESTING                                 ACRE                   1      29.92                                         29.92
HAULING                                    BUSHEL                40       0.15                                          6.00
INTEREST ON SPRING CUSTOM CHARGES                 $51.08        0.5      8.5% $                                        2.17


LAND CHARGE                                  ACRE                                          1            90.00          90.00
TOTAL FIXED COST LISTED ABOVE                                                                                       $179.17
TOTAL VARIABLE AND FIXED COST LISTED ABOVE                                                                          $352.83
NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE                                                                 $251.57
                                                                                                    PRICES
NET INCOME ABOVE VARIABLE AND                                       YIELDS          $11.33           $15.11          $18.89
FIXED COSTS LISTED ABOVE FOR                                            30         ($12.86)        $100.47          $213.79
VARIOUS YIELDS AND PRICES                                               40         $100.47         $251.57          $402.67
                                                                        50         $213.79         $402.67          $591.54

Assumptions
Fertility rates based on MCE SFM-1 guidelines
Assuming medium fertility levels
Local hauling within 30 miles of farm
Sensitivity analysis based on 75%,100% and 125% of typical yield and current forward contract price.
WHEAT                                                                       PER ACRE FOR                       July 5,2012
ITEM                                                             UNIT        QUANTITY           PRICE            TOTAL
GROSS INCOME
WHEAT                                                       BUSHEL                      75             $8.22        $616.50
VARIABLE COSTS
SEED                                                        POUND                      150             $0.05          $7.20
SOIL TESTING                                                ACRE                          1             0.30           0.30
NITROGEN                                                    POUND                       70              0.68          47.60   ANALYSIS
PHOSPHATE                                                   POUND                       40              0.78          31.20
POTASH                                                      POUND                       40              0.58          23.20   BREAKEVEN                 $5.35
LIME                                                        TON                         0.5            45.00          22.50   VARIABLE COSTS PER UNIT   $2.43
                                                                                                                              OVERHEAD COST PER UNIT    $2.92
HARMONY GT XP                                               OUNCE                      0.5             11.00           5.50   TOTAL COST PER UNIT       $5.35
TILT                                                        OUNCE                        4              0.95          3.80    PROFIT PER UNIT           $2.87
WARRIOR                                                     OUNCE                        3              2.15          6.45
OSPREY                                                      OUNCE                     4.75              3.03          14.39

CROP INSURANCE (CRC 70%)                                    ACRE                     1.00              13.15         13.15




INTEREST ON OPERATING CAPITAL                    $162.14        0.5      8.5%                                          6.89
TOTAL VARIABLE COSTS LISTED ABOVE                                                                                   $182.18
FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS)
SPREADING FERTILIZER                       ACRE                   2      $8.33                                       $16.66
VERTICAL TILLAGE                           ACRE                   2      16.88                                        33.76
BROADCAST SEEDING                          ACRE                   1      17.12                                        17.12
PESTICIDE APPLICATION                      ACRE                   2       8.31                                        16.62
HARVESTING                                 ACRE                   1      29.97                                        29.97
HAULING                                    BUSHEL               75        0.15                                        11.25
INTEREST ON FALL CUSTOM CHARGES                   $84.16        0.5      8.5%                                          3.58

LAND CHARGE                                 ACRE                                         1             90.00          90.00
TOTAL FIXED COST LISTED ABOVE                                                                                       $218.96
TOTAL VARIABLE AND FIXED COST LISTED ABOVE                                                                          $401.14
NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE                                                                $215.36
                                                                                                  PRICES
NET INCOME ABOVE VARIABLE AND                                     YIELDS            $6.17          $8.22            $10.28
FIXED COSTS LISTED ABOVE FOR                                        56.25         ($54.36)        $61.23           $176.83
VARIOUS YIELDS AND PRICES                                              75          $61.23        $215.36           $369.48
                                                                    93.75         $176.83        $369.48           $562.14
Assumptions
Local hauling within 30 miles of farm
Fertility rates based on MCE SFM-1 guidelines
Assuming medium fertility levels
Sensitivity analysis based on 75%,100% and 125% of typical yield and current forward contract price.
WHEAT/SOYBEAN DOUBLE CROP                                                                   PER ACRE FOR                         July 5,2012
ITEM                                                                          UNIT          QUANTITY             PRICE             TOTAL
GROSS INCOME
WHEAT                                                                    BUSHEL                         75              $8.22       $616.50
SOYBEANS                                                                 BUSHEL                         25             $15.11       $377.75
TOTAL GROSS INCOME                                                                                                                  $994.25
VARIABLE COSTS
SEED-WHEAT                                                               POUND                         150               $0.05         $7.20
SEED-SOYBEANS                                                            1000 SEEDS                    175                0.38         66.50
SOIL TEST                                                                ACRE                             1               0.30          0.30
NITROGEN                                                                 POUND                           70               0.68         47.60
PHOSPHATE                                                                POUND                           85               0.78         66.30
POTASH                                                                   POUND                           75               0.58         43.50
LIME                                                                     TON                            0.5              45.00         22.50
HARMONY GT XP                                                            OUNCE                          0.5              11.00          5.50
OSPREY                                                                   OUNCE                        4.75                3.03         14.39
SURFACTANT                                                               QUART                            1              2.25          2.25
TILT                                                                     OUNCE                            4               0.95         3.80
WARRIOR                                                                  OUNCE                            6               2.15        12.90
GRAMOXONE INTEON                                                         PINT                             3               2.87         8.61
ROUNDUP                                                                  QUART                            1               2.00         2.00
CROP INSURANCE-WHEAT (CRC 70%)                                           ACRE                        1.00               13.15         13.15
CROP INSURANCE-BEANS (CRC 70%)                                           ACRE                        1.00               14.90         14.90
INTEREST ON OPERATING CAPITAL                $303.35      0.50       8.5%      12.89
TOTAL VARIABLE COSTS LISTED ABOVE                                             344.29
NET INCOME OVER VARIABLE COSTS LISTED ABOVE                                  $649.96
FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS)
FERTILIZER SPREADING                      ACRE                 2     8.33       16.66
VERTICAL TILLAGE                          ACRE                 2    16.88       33.76
BROADCAST SEEDING                         ACRE                 1     6.00        6.00
NOTILL DRILLING                           ACRE                 1    17.12       17.12
PESTICIDE APPLICATION                     ACRE                 4     8.31       33.24
HARVESTING                                ACRE                 2    29.97       59.94
HAULING                                   BUSHEL            100      0.15       15.00
INTEREST ON FALL/SPRING CUSTOM CHARGES        $106.78        0.5     8.5%        4.54
LAND CHARGE                                ACRE                                                           1             90.00          90.00
TOTAL FIXED COST LISTED ABOVE                                                                                                        $276.26
TOTAL VARIABLE AND FIXED COST LISTED ABOVE                                                                                           $620.55
NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE                                                                                  $373.70
                                                                                                                PRICES
                                                                            WHEAT                                   $6.17             $8.22     $10.28
NET INCOME ABOVE VARIABLE AND                                                                  BEAN                 $11.33            $15.11     $18.89
FIXED COSTS LISTED ABOVE FOR                                                           56               19        ($61.29)          $125.13    $311.56
VARIOUS YIELDS AND PRICES                                                              75               25       $125.13            $373.70    $622.26
Sensitivity Analysis based on soybeans/wheat yield and price                           94               31       $311.56            $622.26    $932.96
Assumptions
Local hauling within 30 miles of farm
Fertility rates based on MCE SFM-1 guidelines
Assuming medium fertility levels
1 Post-plant bean glyphosate application
Sensitivity analysis based on 75%,100% and 125% of yield of beans and current forward contract price of beans/wheat.
CROP:                                                 YEAR:
ITEM                                          UNIT     QUANTITY     PRICE      TOTAL
GROSS INCOME


VARIABLE COSTS
SEED
SOIL TEST
NITROGEN
PHOSPHATE
POTASH
LIME
PESTICIDES




CROP INSURANCE


DRYING FUEL




INTEREST ON OPERATING CAPITAL
TOTAL VARIABLE COSTS LISTED ABOVE
FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS)




LAND CHARGE
TOTAL FIXED COST LISTED ABOVE
TOTAL VARIABLE AND FIXED COST LISTED ABOVE
NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE
Cost Per Acre
          Corn - No Till   Corn - Conventional   Soybeans       Wheat        Wheat/Beans
  2007           $362.40              $379.40      $234.26         $309.27         $395.89
  2008           $470.72              $515.34      $307.12         $390.14         $562.34
  2009           $521.49              $539.81      $410.69         $406.20         $630.51
  2010           $525.26              $530.09      $405.77         $407.26         $640.60
  2011           $568.66              $569.32      $377.00         $436.98         $635.25
  2012           $605.87              $588.44      $352.83         $401.14         $620.55




                                                 COST PER ACRE
         $700.00
         $600.00
                                                                                             2007
         $500.00
                                                                                             2008
         $400.00
                                                                                             2009
         $300.00                                                                                    Cost Per Acre
                                                                                             2010
         $200.00                                                                             2011         2011

                                                                                             2012
         $100.00
           $0.00
                      Corn - No Till        Corn -           Soybeans        Wheat
                                         Conventional
Cost Per Acre

      2012
Cost Per Acre
             Corn - No Till Corn - Conventional             Soybeans            Wheat       Wheat/Beans
      2010        $525.26              $530.09                  $405.77           $407.26        $640.60



                                          Cost Per Acre 2010
       $700.00
       $600.00
       $500.00
       $400.00
       $300.00
       $200.00
       $100.00
         $0.00
                     Corn - No Till      Corn -         Soybeans        Wheat      Wheat/Beans
                                      Conventional




Cost Per Acre
             Corn - No Till Corn - Conventional             Soybeans            Wheat       Wheat/Beans
      2011        $605.87              $588.44                  $352.83           $401.14        $620.55


         $700.00                                 Cost Per Acre 2011
         $600.00
         $500.00
         $400.00
         $300.00
         $200.00
         $100.00
             $0.00
                         Corn - No Till    Corn - Conventional     Soybeans         Wheat        Wheat/Beans
Cost Per Acre
             Corn - No Till Corn - Conventional        Soybeans          Wheat       Wheat/Beans
      2012        $576.67              $577.34             $357.78         $433.97        $658.43




        $700.00                                                                                 $658.43
                                               Cost Per Acre 2012
        $600.00         $576.67             $577.34


        $500.00
                                                                                $433.97

        $400.00                                                $357.78

        $300.00


        $200.00


        $100.00


          $0.00
                      Corn - No Till   Corn - Conventional    Soybeans           Wheat        Wheat/Beans

								
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