2014 Purdue Crop Cost and Return Guide (August 2013) Craig Dobbins Michael Langemeier Alan Miller.

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Presentation transcript:

2014 Purdue Crop Cost and Return Guide (August 2013) Craig Dobbins Michael Langemeier Alan Miller

Outline of Presentation Trends in Revenue, Variable Cost, and Contribution Margin 2013 and 2014 Comparisons – Market Revenue – Variable Cost – Contribution Margin – Earnings Earnings per Acre, 2005 to 2014

Trends in Market Revenue, Variable Cost, and Contribution Margin

Ten-Year Averages (2005 to 2014) CropMRVCCM Continuous Corn Rotation Corn Rotation Soybeans Wheat Double-Crop Soybeans

2013 and 2014 Comparisons

Market Revenue per Acre (Average Productivity Soil) Crop % Change Continuous Corn Rotation Corn Rotation Soybeans Wheat Double-Crop Soybeans

Variable Cost per Acre (Average Productivity Soil) Crop % Change Continuous Corn Rotation Corn Rotation Soybeans Wheat Double-Crop Soybeans

Variable Cost per Acre (Average Productivity Soil) Rotation Corn % Change Fertilizer Seed Pesticides Fuel Other

Variable Cost per Acre (Average Productivity Soil) Rotation Soybeans % Change Fertilizer Seed Pesticides Fuel Other

Contribution Margin per Acre (Average Productivity Soil) Crop % Change Continuous Corn Rotation Corn Rotation Soybeans Wheat Double-Crop Soybeans

2014 Contribution Margin per Acre by Soil Productivity Level CropLowAverageHigh Continuous Corn Rotation Corn Rotation Soybeans Wheat Double-Crop Soybeans

Land Rent in Dollars per Bushel of Corn Yield Land Quality Low Yield Average Yield High Yield Note: Based on 2013 Purdue Land Value Survey. These are not forecasted amounts.

Rotations Continuous Corn Corn/Soybean Corn/Soybean/Corn/Wheat – 50.0% corn – 33.3% soybeans – 16.7% wheat; double-crop soybeans

2013 and 2014 Earnings per Acre (Average Productivity Soil) Rotation Continuous Corn Corn/Soybean Corn/Soybean/Corn/ Wheat; DC Soybeans

2013 and 2014 Total Costs Per Bushel (Corn/Soybean Rotation; 3000 acres) Crop Low YieldAverage YieldHigh Yield $/Bushel Rotation Corn Rotation Beans

Earnings per Acre, 2005 to 2014

Ten-Year Earnings per Acre (Average Productivity Soil) RotationAverage Standard Deviation CV Continuous Corn Corn/Soybean Corn/Soybean/Corn/ Wheat; DC Soybeans

Questions, Comments