row crops (corn, wheat, soybeans

[tncattle]

I see these three crops often when driving around my area, corn and soybeans the most. I don't have any experience with these crops on a large scale. I've always been curious what these big fields of crops will actually bring in after all expenses are accounted for. An example today: I saw a small field of corn about 50-60 acres, then down the road I saw about 500 acres of corn. Also saw about 300 acres of soybeans, again just curious.

 

[SRBeef]

I see these three crops often when driving around my area, corn and soybeans the most. I don't have any experience with these crops on a large scale. I've always been curious what these big fields of crops will actually bring in after all expenses are accounted for. An example today: I saw a small field of corn about 50-60 acres, then down the road I saw about 500 acres of corn. Also saw about 300 acres of soybeans, again just curious.

There is no way of telling what these crops will "bring in". Many different factors. Can bring in substantial dollars but cost a lot to get to that point. Yes there is income but lots of expenses also. It is the net that counts. There is a lot of equipment, fertilizer, weed control & seed cost into that field you see for there is any return.

An 80,000 kernal (a bit over 2 acres worth) bag of triple stack seed corn cost around $300. this past spring. So your seed alone can cost almost 150. acre. To be profitable in commodity crops these days you need to spread fixed costs over a lot of acres. You need equipment and you need to know what you are doing.

Jim

 

[I luv herfrds]

Easiest way to figure it. 3/4 to expenses and 1/4 left over to pay all other costs.

 

[terra8186]

I planted my beans and sprayed the first time. After that I will have someone spray, combine, and truck. On a per acre basis for soybeans I have:
$6 - Insurance @ 65% county average
$110 - Fertilizer
$20 - Round-up and Application
$40 - Seed
$34 - To Truck and Harvest

Total - $210/Acre

Average yield is 40 bushel/acre and at today's market price of $9.00/bushel the elevators should be $8.50.

Income - $340

Profit before taxes, planter depreciation, sprayer depreciation, and gas = $130/acre

The local farmer will rent my ground for $85/acre.

 

[mwj]

I planted my beans and sprayed the first time. After that I will have someone spray, combine, and truck. On a per acre basis for soybeans I have:
$6 - Insurance @ 65% county average
$110 - Fertilizer
$20 - Round-up and Application
$40 - Seed
$34 - To Truck and Harvest

Total - $210/Acre

Average yield is 40 bushel/acre and at today's market price of $9.00/bushel the elevators should be $8.50.

Income - $340

Profit before taxes, planter depreciation, sprayer depreciation, and gas = $130/acre

The local farmer will rent my ground for $85/acre.

The land cost in my area would be $210 to $235 per acre!

 

[novaman]

I planted my beans and sprayed the first time. After that I will have someone spray, combine, and truck. On a per acre basis for soybeans I have:
$6 - Insurance @ 65% county average
$110 - Fertilizer
$20 - Round-up and Application
$40 - Seed
$34 - To Truck and Harvest

Total - $210/Acre

Average yield is 40 bushel/acre and at today's market price of $9.00/bushel the elevators should be $8.50.

Income - $340

Profit before taxes, planter depreciation, sprayer depreciation, and gas = $130/acre

The local farmer will rent my ground for $85/acre.

If a local farmer will rent your land for $85 don't you think that has to be accounted for when you calculate profit? In my books, that $85 would be taken off the $130 because essentially you are giving up that much income to farm it yourself. Like I mentioned in another thread, the profits aren't nearly what people make them out to be.

 

[terra8186]

If a local farmer will rent your land for $85 don't you think that has to be accounted for when you calculate profit?

I do think that. I have a choice of a possible $130 with some downside risk and a potential upside or $85 flat. I plant my field for the same reason most of you raise cattle. I like doing it.

The land cost in my area would be $210 to $235 per acre!

Last year it was similar in our area. This year I would assume it is more difficult to get that price. Since the commodity prices have went down since last year the farmers income have come down. If you figure a 150 bushel/acre of corn last year could have been presold for $7.00/bushel and this year around $3.50/bushel. The farmer makes $525 less an acre.