2013 Crop Budget Projections Presented by: Ben Beale Extension Agent-St. Mary’s Co.

General Farm Statistics CropSt. Mary’sCharlesCalvertTotal Number of Farms Land in Farms Average Size Value of Sales in 1000’s CropSt. Mary’sCharlesCalvertTotal Grain Tobacco Vegetables Nursery and Greenhouse (est)4717

Field Crop (acres) CropSt. Mary’sCharlesCalvertTotal Corn Soybeans Wheat Barley Tobacco Forage Vegetables

State of Maryland Number of Farms in Maryland: 8,278 # of Acres Harvested in MD:1,246,603 Approximately 350,000 people are employed in some aspect of agriculture, making it the largest commercial industry in Maryland. Agriculture also remains the largest single land use in the State, with 2.05 million acres, or roughly 32 percent of total land area in farms in The Maryland agricultural industry contributes more than $17 billion in revenue annually

Salisbury pricesclose 8/8/12 Basis Cash corn Dec fall corn Dec 12 Cash soybeans Sept fall soybeans Nov 12 August 2012 wheat Sept 12 J/J 2013 wheat July 13

Salisbury pricesclose 1/16/13 Basis Cash corn fall corn Cash soybeans fall soybeans January 2013 wheat J/J 2013 wheat

December 2013 Corn November 2013 Soybean

July 2013 Wheat

University of Maryland Extension

U.S. Annual Average Corn Price, Source: USDA/NASS years Avg $ years Avg $ years Avg $2.37

Profit Enterprise Budget Variable Costs Fixed Costs Price (Revenue) Contribution Break-even Slide Adapted from: Dr. Wen-fei Uva Department of Applied Economics and Management Cornell University

Finding your niche-Getting things in the right place.

CORN GRAIN, NO-TILL NON-IRRIGATED PER ACRE FORJan-13 ITEM UNITQUANTITYPRICETOTAL GROSS INCOME CORN GRAIN BUSHEL150$5.68$ VARIABLE COSTS SEED RR 1000 SEEDS28$2.00$56.00 SOIL TEST ACRE10.30 NITROGEN POUND PHOSPHATE POUND POTASH POUND LIME TON LUMAX QUART ATRAZINE QUART ROUNDUP QUART14.00 CROP INSURANCE (CRC 70%) ACRE DRYING FUEL BUSHEL INTEREST ON OPERATING CAPITAL $ %7.56 TOTAL VARIABLE COSTS LISTED ABOVE $ FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS) FERTILIZER SPREADING ACRE18.33 NO-TILL PLANTING WITH FERTILIZER ACRE NITROGEN APPLICATION ACRE PESTICIDE APPLICATIONS ACRE18.31 HARVESTING ACRE HAULING BUSHEL INTEREST ON SPRING CUSTOM CHARGES %1.96 LAND CHARGE ACRE TOTAL FIXED COST LISTED ABOVE $ TOTAL VARIABLE AND FIXED COST LISTED ABOVE $ NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE $ PRICES NET INCOME ABOVE VARIABLE AND YIELDS$4.26$5.68$7.10 FIXED COSTS LISTED ABOVE FOR 112.5($19.50)$140.25$ VARIOUS YIELDS AND PRICES 150$ $ $ $300.00$566.25$832.50

SOYBEANS RR READY PER ACRE FORJan-13 ITEMUNITQUANTITYPRICETOTAL GROSS INCOME SOYBEANSBUSHEL40$11.91$ VARIABLE COSTS SEED1000 SEEDS150$0.36$54.00 SOIL TESTINGACRE10.30 PHOSPHATEPOUND POTASHPOUND LIMETON GRAMOXONE INTEONPINT ROUNDUPQUART14.00 WARRIOROUNCE CROP INSURANCE (CRC 70%)ACRE INTEREST ON OPERATING CAPITAL$ %6.45 TOTAL VARIABLE COSTS LISTED ABOVE $ FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS) FERTILIZER APPLICATIONACRE18.33 SOYBEAN - NoTillACRE PESTICIDE APPLICATIONSACRE HARVESTINGACRE HAULINGBUSHEL INTEREST ON SPRING CUSTOM CHARGES$ % $ 1.40 LAND CHARGEACRE TOTAL FIXED COST LISTED ABOVE $ TOTAL VARIABLE AND FIXED COST LISTED ABOVE $ NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE $ PRICES NET INCOME ABOVE VARIABLE ANDYIELDS$8.93$11.91$14.89 FIXED COSTS LISTED ABOVE FOR30($53.64)$35.68$ VARIOUS YIELDS AND PRICES40$35.68$154.78$ $125.01$273.88$422.76

WHEAT PER ACRE FORJan-13 ITEMUNITQUANTITYPRICETOTAL GROSS INCOME WHEATBUSHEL75$6.85$ VARIABLE COSTS SEEDPOUND150$0.25$37.50 SOIL TESTINGACRE10.30 NITROGENPOUND PHOSPHATEPOUND POTASHPOUND LIMETON HARMONY GT XPOUNCE TILTOUNCE WARRIOROUNCE OSPREYOUNCE CROP INSURANCE (CRC 70%)ACRE INTEREST ON OPERATING CAPITAL$ %8.37 TOTAL VARIABLE COSTS LISTED ABOVE $ FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS) SPREADING FERTILIZERACRE2$8.33$16.66 VERTICAL TILLAGEACRE BROADCAST SEEDINGACRE PESTICIDE APPLICATIONACRE HARVESTINGACRE HAULINGBUSHEL INTEREST ON FALL CUSTOM CHARGES$ %2.31 LAND CHARGEACRE TOTAL FIXED COST LISTED ABOVE $ TOTAL VARIABLE AND FIXED COST LISTED ABOVE $ NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE $ PRICES NET INCOME ABOVE VARIABLE ANDYIELDS$5.14$6.85$8.56 FIXED COSTS LISTED ABOVE FOR56.25($117.16)($20.83)$75.49 VARIOUS YIELDS AND PRICES75($20.83)$107.60$ $75.49$236.04$396.59

CORN GRAIN, NO-TILL, POULTRY LITTERPER ACRE FORJan-13 ITEMUNITQUANTITYPRICE TOTAL GROSS INCOME CORN GRAINBUSHEL150$5.68$ VARIABLE COSTS SEED RR1000 SEEDS28$2.00$56.00 SOIL TESTACRE10.30 NITROGENPOUND PHOSPHATEPOUND POTASHPOUND POULTRY LITTER lbs/tonTON LIMETON LUMAXQUART ATRAZINEQUART ROUNDUPQUART14.00 CROP INSURANCE (CRC 70%)ACRE DRYING FUELBUSHEL INTEREST ON OPERATING CAPITAL$ %5.31 TOTAL VARIABLE COSTS LISTED ABOVE $ FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS) MANURE HAULINGTON MANURE LOADINGTON MANURE SPREADING - LITTERTON MINIMAL TILLAGEACRE NO-TILL PLANTINGACRE NITROGEN APPLICATIONACRE PESTICIDE APPLICATIONSACRE18.31 HARVESTINGACRE HAULINGBUSHEL INTEREST ON SPRING CUSTOM CHARGES %3.90 LAND CHARGEACRE TOTAL FIXED COST LISTED ABOVE $ TOTAL VARIABLE AND FIXED COST LISTED ABOVE $ NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE $ PRICES NET INCOME ABOVE VARIABLE ANDYIELDS$4.26$5.68$7.10 FIXED COSTS LISTED ABOVE FOR112.5($54.04)$105.71$ VARIOUS YIELDS AND PRICES150$105.71$318.71$ $265.46$531.71$797.96

“Any Questions?” Ben Beale University of Maryland Extension