|
The following budgets represent what are believed to be "typical"
cost/return budgets for commercial sized producers using production
practices that are expected to produce above average yields. Adjustments
may be needed to account for individual farm productivity, size of
operation, and alternative production practices.
Crop prices and operating cost estimates are based on FAPRI Representative
Farms data, survey information from a variety of sources such as University
of Missouri (MU) extension specialists, farm supply dealers, producers,
USDA cost data, machinery economic-engineering cost estimates and FAPRI
economic baseline projections.
October 2007 supply/demand projections suggested favorable grain and
soybean price outlooks for 2008 crop production. These long-range price
projections were adjusted to provide estimated average Missouri farm
prices. However, volatile markets can result in prices higher or lower than
those used in the budget. Prices received also depend upon changing market
outlook and timing of sales. Basis (spread between cash and futures prices)
also varies considerably and can result in notable differences in cash bids
at different locations.
Real estate charges are calculated as capitalized rent returns on estimated
land value. In recent years, the capitalization rate has tended to decline
as land prices were bid up and cash rent increases lagged behind the land
price increases. However, with sharply higher grain prices during the past
year, landowners have indicated a desire to "catch up" by increasing rents
to capture a larger share of land returns resulting from higher grain
prices. Estimated real estate values are determined by the MU and USDA land
value and rent surveys. The landowner's costs (taxes, insurance, etc.),
along with returns on investment, would be covered by the capitalized
returns on the land value.
Crop Production Budgets
The crop budgets are based on typical production practices and machinery
used by farms with 1700-2000 crop acres located in north, central and
southwest Missouri. Smaller farms that use smaller equipment and custom
hire more field operations tend to have somewhat higher per acre production
costs. Larger farms that have larger equipment and gain some economies of
scale in volume input pricing may have lower production costs per acre.
Southeast Missouri farm size, equipment mix and production practices also
differ slightly. Corn, soybean and grain sorghum budgets assume one or two
tillage passes prior to planting. Wheat and double-crop soybean budgets
assume no-till planting. Emerging trends (included in the budgets) appear
to be use of split herbicide applications, increasing ownership of spraying
equipment, precision agriculture technology and semitrucks.
Forage Budgets
Forage crop mix, forage acres per farm, and equipment lines tend to be
somewhat different in northern and southern Missouri. Northern
crop/livestock farms tend to have fewer forage acres than southern Missouri
farms, which are primarily livestock (beef/dairy). Since northern forage
producers have more grain crop acres, larger tractors are often used in
northern forage production. Although tractor size may be smaller, southern
farms tend to have more forage acres and more items of forage equipment.
The southern Missouri climate is also better adapted to some warm season
forages and fescue seed production.
Crop and Forage Price Estimates for 2008/09 Budgets
Used in
Budgets Estimates for Regional Basis Adjustment
Central NE Mo. NW Mo. SW Mo. SE Mo.
Corn, bu. $ 3.15 $3.15 $3.15 $3.00 $3.25 $3.30
Soybean, bu. $ 7.90 $7.90 $8.05 $7.75 $7.80 $8.40
Wheat, bu. $ 3.90 $3.90 $3.90 $3.90 $3.09 $4.10
Grain sorghum, bu. $ 3.02 $3.02 $3.02 $3.00 $3.20 $3.20
Corn silage, ton $ 28.35
Alfalfa, round bales, ton $120.00
Premium pasture, AUM $ 9.00
Cost Estimates Used in 2008 Crop and Forage Budgets
Diesel fuel, farm delivered $2.70/gal.
Gasoline $2.90/gal.
L.P. gas $1.85/gal.
Electricity $0.08/kwh
Anhydrous ammonia $0.33/lb.
Urea $0.52/lb.
Ammonium nitrate $0.57/lb.
2 5 Phosphorus (P 0 ) $0.36/lb.
2 Potassium (K 0) $0.28/lb.
Lime $6 to $13/ton
Operating interest rate 8.00%
Unskilled labor (tractor driving, tillage, mowing, etc.) $11/hour
Skilled labor (planting, combining, spraying, etc.) $16/hour
Real estate charges as % of land value (capitalization rate):
Crop production 5% of land value
High quality forage production 3.8% to 4% of land value
Grass production 2.1% to 2.2% of land value
|
Projected Fescue-Clover Hay and Fescue Seed Budgets, 2008
Fescue-Clover Fescue-Seed+
Large rnd. bales Hay+Graze
Yield/acre, air-dry basis:1 2.96 tons 2.81 tons
Weighted value per ton, air dry $45.57 $31.11
ESTIMATED INCOME/ACRE
Hay $127.50 $ 80.00
Grazing value, rental rate 7.50 7.50
Seed -- 135.00
ESTIMATED TOTAL INCOME/ACRE $135.00 $222.50
ESTIMATED OPERATING COSTS/ACRE2
Seed -- --
Fertilizer and soil amendments $ 63.08 $ 75.50
Crop protection chemicals -- --
Crop supplies 5.60 3.40
Custom hire and rental 14.06 22.50
Machinery fuel 5.70 7.94
Machinery repairs and maintenance 4.44 6.53
Operator and hired labor 8.65 12.58
Operating interest
@ 8.75% x ½ year 4.06 5.14
Total Operating Costs/Acre $105.59 $133.59
ESTIMATED OWNERSHIP COSTS/ACRE
Farm business overhead $ 2.71 $ 2.07
Machinery overhead 7.68 8.52
Machinery depreciation 8.44 10.28
Real estate charge 32.24 32.24
Total Ownership Costs/Acre $ 51.07 $ 53.11
ESTIMATED TOTAL COSTS/ACRE $156.66 $186.69
_________________________________________________________________________
Income over Operating
Costs/Acre $29.41 - $88.91
Income over Total
Costs/Acre - $21.66 - $35.81
_________________________________________________________________________
Operating costs/ton, air-dry $35.65
Ownership costs/ton, air-dry $17.24
Total costs/ton, air-dry $52.88
_________________________________________________________________________
1 Yield and value calculations exclude seed.
Air-dry basis is hay equivalent moisture, or 90% dry matter.
2 No estimate made for storage or feeding costs.
These budgets and the budget calculator are available on the web for
download at http://www.fapri.missouri.edu
Prepared by Melvin Brees, Brent Carpenter, and Scott Gerlt, FAPRI
Missouri.
_________________________________________________________________________
|
Projected Alfalfa & Bermudagrass Hay Budgets, 2008
Alfalfa Bermudagrass
Small Sq. Balls Small Sq. Bales
Yield/acre, air-dry basis1 5.0 tons 6.0 ton
Weighted value per ton, air dry $121.43 $108.33
ESTIMATED INCOME/ACRE
Hay $607.16 $650.00
Grazing value, rental rate -- --
ESTIMATED TOTAL INCOME/ACRE $607.16 $650.00
ESTIMATED OPERATING COSTS/ACRE2
Seed $ 74.03 --
Fertilizer and soil amendments 6.50 $226.80
Crop protection chemicals 8.50 --
Crop supplies 80.43 11.00
Custom hire and rental 21.36 100.00
Machinery fuel 13.38 22.07
Machinery repairs and maintenance 33.75 14.24
Operator and hired labor 9.52 32.91
Operating interest
@ 8% x ½ year 9.52 16.28
Total Operating Costs/Acre $247.47 $423.31
ESTIMATED OWNERSHIP COSTS/ACRE
Farm business overhead $ 2.48 5.43
Machinery overhead 7.87 8.14
Machinery depreciation 26.89 29.74
Real estate charge 68.97 32.24
Total Ownership Costs/Acre $106.21 $ 75.55
ESTIMATED TOTAL COSTS/ACRE $353.68 $498.86
_________________________________________________________________________
Income over Operating $359.68 $226.69
Costs/Acre
Income over Total $253.47 $151.14
Costs/Acre
_________________________________________________________________________
Operating costs/ton, air-dry1 $49.49 $70.55
Ownership costs/ton, air-dry1 $21.24 $12.59
Total costs/ton, air-dry1 $70.74 $83.14
_________________________________________________________________________
1 Air-dry basis is hay equivalent moisture, or 90% dry matter.
2 No estimate made for storage or feeding costs.
These budgets and the budget calculator are available on the web for
download at http://www.fapri.missouri.edu
Prepared by Melvin Brees, Brent Carpenter, and Scott Gerlt, FAPRI
Missouri.
_________________________________________________________________________
|
Projected Budgets for Switchgrass Productionand Crabgrass Pasture, 2008
Switchgrass Crabgrass
Establishment Production Pasture
Yield/acre, air-dry basis1 0 4.5 tons 3.21 tons
Weighted value/ton, air dry $21.82
ESTIMATED INCOME/ACRE
Grazing value, rental rate -- -- $ 69.93
Value for biofuel processing -- ? --
ESTIMATED TOTAL INCOME/ACRE 0 0 $ 69.93
ESTIMATED OPERATING COSTS/ACRE2
Seed $ 70.00
Fertilizer and soil amendments 80.20 $131.40 $57.00
Crop protection chemicals 20.95 -- 3.64
Crop supplies 2.00 8.75 1.00
Custom hire and rental 19.50 9.00 14.00
Machinery fuel 11.85 7.04 3.30
Machinery repairs and maintenance 7.20 4.73 1.61
Operator and hired labor 13.36 8.47 4.23
Operating interest
@ 8% x ½ year 9.08 6.78 3.39
Total Operating Costs/Acre $236.14 $176.17 $ 88.17
ESTIMATED OWNERSHIP COSTS/ACRE
Farm business overhead $ 3.75 $ 3.88 $ 5.43
Machinery overhead 11.01 7.65 2.90
Machinery depreciation 14.61 9.39 3.54
Real estate charge 32.12 32.12 32.24
Total Ownership Costs/Acre $ 61.49 $ 53.04 $ 44.11
ESTIMATED TOTAL COSTS/ACRE $297.62 $299.21 $132.28
_________________________________________________________________________
Income over Operating Costs/Acre - $236.14 - $176.17 - $ 18.24
Income over Total Costs/Acre - $297.62 - $229.21 - $ 62.35
_________________________________________________________________________
Operating costs/ton, air-dry1 $39.15 $27.51
Ownership costs/ton, air-dry1 $11.79 $13.76
Total costs/ton, air-dry1 $50.94 $41.27
_________________________________________________________________________
1 Air-dry basis is hay equivalent moisture, or 90% dry matter.
2 No estimate made for storage or feeding costs.
These budgets and the budget calculator are available on the web for
download at http://www.fapri.missouri.edu
Prepared by Melvin Brees, Brent Carpenter, and Scott Gerlt, FAPRI
Missouri.
_________________________________________________________________________
|
Projected Silage and Baleage Budgets, 2008
Orchardgrass
Corn Silage Clover Baleage
Yield, air-dry1 8 tons 3.3 ton
Value per ton, air-dry $63.79 $55.50
ESTIMATED INCOME/ACRE
Sileage/baleage value $510.32 $183.15
ESTIMATED TOTAL INCOME/ACRE $510.32 $183.15
ESTIMATED OPERATING COSTS/ACRE2
Seed $ 40.63 --
Fertilizer and soil amendments 74.40 $ 64.00
Crop protection chemicals 26.85 --
Crop supplies 1.00 54.00
Custom hire and rental 73.00 29.25
Machinery fuel 23.11 8.37
Machinery repairs and maintenance 14.85 10.67
Operator and hired labor 23.75 12.41
Operating interest
@ 8% x ½ year 11.10 $185.85
Total Operating Costs/Acre $288.69 $185.85
ESTIMATED OWNERSHIP COSTS/ACRE
Farm business overhead $ 2.25 2.71
Machinery overhead 21.17 9.38
Machinery depreciation 24.75 10.43
Real estate charge 107.50 32.24
Total Ownership Costs/Acre $155.67 $ 54.76
ESTIMATED TOTAL COSTS/ACRE $444.36 $240.61
_________________________________________________________________________
Income over Operating $221.63 - $ 2.70
Costs/Acre
Income over Total $ 65.96 - $ 57.46
Costs/Acre
_________________________________________________________________________
Operating costs/ton, air-dry1 $36.09 $56.32
Ownership costs/ton, air-dry1 $19.46 $16.59
Total costs/ton, air-dry1 $55.55 $72.91
_________________________________________________________________________
1 Air-dry basis is hay equivalent moisture, or 90% dry matter.
2 No estimate made for storage or feeding costs.
These budgets and the budget calculator are available on the web for
download at http://www.fapri.missouri.edu
Prepared by Melvin Brees, Brent Carpenter, and Scott Gerlt, FAPRI
Missouri.
_________________________________________________________________________
|
[ AgEBB ] - [ Farm Management ]
|