1. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Costs and Returns Update – 2010 Crop Alan Miller Farm Business Management Specialist Learning Tuesdays – April 13, 2010

2. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Actual Cost Vs. Market Price, Corn, Illinois Grain Farms, 1999-2008 Source: University of Illinois Extension report # AE-4566, April 2009, Illinois FBFM.

3. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. 2010 Expected Crop Cash Prices At Harvest : Indiana: April 6, 2010 Prices CornSoybeansWheat 2010 Harvest Futures$3.80$9.30$4.80 Expected Basis -0.30-0.40-.80 Expected Cash Price$3.50$8.90$4.00 Estimated Yield/Acre Cont. CornCornSoybeansWheatDC Beans Land Qualitybu./acre Low119127396223 Average149159497029 High180191598435 Source of Budgeted Costs and Basis: Purdue ID-166-W rev.

4. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Source: USDA - Illinois Dept. of Ag Market News, Springfield, IL http://www.ams.usda.gov/mnreports/gx_gr210.txt http://www.ams.usda.gov/mnreports/gx_gr210.txt Illinois Retail Fertilizer Prices Offered

5. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Contribution Margin by Crop,2010 Crops Low Yield ($/acre) Average Yield ($/acre) High Yield ($/acre) Rotation Soybeans171249327 DC Wheat/Soybeans 1 147211292 Rotation Corn130208306 Wheat 1 105125161 Continuous Corn89160252 Source: Purdue Extension Publication ID-166-W revised April 6, 2010. 1 Does not include an estimated $20/acre payment for wheat for ACRE participants.

6. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Contribution Margin Trend – Average Productivity Soil Source: Purdue Extension Publications ID-166 rev.

7. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Contribution Margin by Rotation, 2010 1 Crops in Rotation Low Yield ($/acre) Average Yield ($/acre) High Yield ($/acre) Corn – Soybeans150228316 Corn – Wheat/DC Beans 2 144216307 Soybean – Corn – Corn116190277 Corn – Corn89160252 1 Sum 2010 contribution margins for individual crops, then divide by years in rotation. Source: Purdue Extension Publication ID-166 revised April 6, 2010. 2 Does not include an estimated $20/acre payment for wheat for ACRE participants.

8. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Estimated Tenant Margins, 2010 Corn-Bean Rotation Low Productivity Soil Average Productivity Soil High Productivity Soil $ per acre Contribution Margin 1 168249342 Less Cash Rent(131)(167)(208) Tenant’s Margin3782134 Source: Purdue Extension publication ID-166-W revised on 4/6/2010. 1 Includes estimated direct government payment.

9. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Estimated Returns to Land, 2010 Corn-Bean Rotation Low Productivity Soil Average Productivity Soil High Productivity Soil Farm Size in Acres100030001000300010003000 $ per acre Contribution Margin 1 168 249 342 Less Overhead Costs 2 (141)(107)(141)(111)(148)(113) Return to Land2761108138194229 Source: Purdue Extension publication ID-166-W revised on April 6, 2010. 1 Includes estimated direct government payment. 2 Non-land overhead includes machinery, labor, and drying/handling costs.

10. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Department of Agricultural Economics Estimated Management Returns for 2010 Corn Rotation Corn - Avg. Yield $ Per Bushel$ Per Acre 2010 – August 12, 2009-.44-70 2010 – September 4, 2009-.57-91 2010 – January 8, 2010+.36+58 2010 – February 4, 2010-.24-38 2010 – March 12, 2010-.28-44 2010 – April 6, 2010-.38-60 Source: Purdue Extension publication ID-166-W revised April 6, 2010. Estimates based on a 3000-acre corn–soybean rotation. 37.5% of direct government payment allocated to soybeans vs. 62.5% to corn. 60% of overhead for machinery, drying, and handling allocated to corn vs. 40% to soybeans.

11. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Department of Agricultural Economics Estimated Management Returns for 2010 Soybeans Rotation Beans-Avg. Yield $ Per Bushel$ Per Acre 2010 – August 12, 2009.000 2010 – September 4, 2009-.55-27 2010 – January 8, 2010+.80+39 2010 – February 4, 2010-.20-10 2010 – March 12, 2010-.12-6 2010 – April 6, 2010+.02+1 Source: Purdue Extension publication ID-166-W revised April 6, 2010. Estimates based on a 3000-acre corn–soybean rotation. 37.5% of direct government payment allocated to soybeans vs. 62.5% to corn. 60% of overhead for machinery, drying, and handling allocated to corn vs. 40% to soybeans.

12. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Summary Costs stable for now, revenues not Price volatility continues and will likely bring fleeting opportunities for profit Profit opportunities occur at different times for corn and beans ID-166 doesn’t include ACRE payments Add an estimated ACRE payment to wheat margins for ACRE participants Current margins appear to favor beans