Comparing Representative farms from the Midwest US to Germany Luke Iseminger

If you don’t know what you’re talking about at least make yourself look good. --Max Schmidt

International Attempt to compare production systems across world In our context, benchmarking means that we are comparing typical farms, production systems and enterprises and their economics horizontally (at one specific point of time) and vertically (over time).

What is a typical farm? This is probably the most frequent question raised to the Networks. A typical farm is an existing farm or a data set describing a farm, an existing farm or a data set describing a farm, in a specific region which represents a major share of output for the product considered, in a specific region which represents a major share of output for the product considered, running the prevailing production system for the product considered, running the prevailing production system for the product considered, reflecting the prevailing combination of enterprises as well as land and capital resources, reflecting the prevailing combination of enterprises as well as land and capital resources, as well as the prevailing type of labor organisation as well as the prevailing type of labor organisationhttp://

Comparison Measures -Monetary research is done in US$ € to US$1 -All land comparison is done in ha -All Production done in t/ ha -Oilseed production is compared to rapeseed --SB to Rapeseed is.930:1 -Land costs were not factored into the research

Representative Iowa Farm Information on the typical farm Iowa, USA Iowa, USA US700IA – USA, 700 ha in Iowa US700IA – USA, 700 ha in Iowa 1540 acres 1540 acres All machinery belong to the farm All machinery belong to the farm Crop rotation: Corn – Soybeans Crop rotation: Corn – Soybeans Fertilizer level (nitrogen): 165 kg N/ha Fertilizer level (nitrogen): 165 kg N/ha Yield level corn: 11 t/ha (178 bu./ acre) Yield level corn: 11 t/ha (178 bu./ acre) Market price corn: 99 €/t Market price corn: 99 €/t Tillage system: – Conservation Tillage - Corn

Representative German Farm Information on the typical farm Sachsen-Anhalt, Germany Sachsen-Anhalt, Germany DE1300SA – Germany, 1300 ha in the region Sachsen-Anhalt DE1300SA – Germany, 1300 ha in the region Sachsen-Anhalt Specialized cash crop farm Specialized cash crop farm Crop rotation: I: Sugar beet - winter wheat - winter wheat/winter barley - pea - winter wheat II: Winter canola-winter wheat-winter wheat / winter barley Crop rotation: I: Sugar beet - winter wheat - winter wheat/winter barley - pea - winter wheat II: Winter canola-winter wheat-winter wheat / winter barley Fertilizer level (nitrogen): 185 kg N/ha Fertilizer level (nitrogen): 185 kg N/ha Yield level winter wheat: 8,8 t/ha Yield level winter wheat: 8,8 t/ha Market price winter wheat: 125 €/t Market price winter wheat: 125 €/t Tillage system: Conservation Tillage – Wheat Tillage system: Conservation Tillage – Wheat

Operating Costs Operating costs are key to all production systems. They are a good indicator of the profitability of the operation. Operating costs are key to all production systems. They are a good indicator of the profitability of the operation. Western hemisphere producers spend only a fraction of what European producers spend on operation costs. Western hemisphere producers spend only a fraction of what European producers spend on operation costs. The Iowa producer had just shy of $200/ ha operating costs The Iowa producer had just shy of $200/ ha operating costs The German operation had just below $550/ ha operating costs The German operation had just below $550/ ha operating costs

Production Operations The Iowa producer had anywhere from 4-6 operations to prepare seedbed and apply chemicals The Iowa producer had anywhere from 4-6 operations to prepare seedbed and apply chemicals The German producer had anywhere from operations to prepare the seedbed and apply chemicals and fertilizer, making these costs 3.15X higher The German producer had anywhere from operations to prepare the seedbed and apply chemicals and fertilizer, making these costs 3.15X higher

Subsidies/ Insurance 250 to 300 €/ha Average subsidies received from German government ($89.77-$107.72/ A) 250 to 300 €/ha Average subsidies received from German government ($89.77-$107.72/ A) Hail Insurance is the only type of crop insurance available to German farmers at the present time Hail Insurance is the only type of crop insurance available to German farmers at the present time Premiums are from roughly 30 to 40€/ ha ($ $14.36/ A) Premiums are from roughly 30 to 40€/ ha ($ $14.36/ A)

Subsidies/ Insurance Direct Payments Direct Payments For each commodity, the direct payment for each crop year equals 85 percent of the farm's base acreage times the farm's direct payment yield times the direct payment rate. For each commodity, the direct payment for each crop year equals 85 percent of the farm's base acreage times the farm's direct payment yield times the direct payment rate. Counter-cyclical Payments Counter-cyclical Payments Counter-cyclical payments provide support counter to the cycle of market prices as part of a "safety net" in the event of low crop prices. Counter-cyclical payments for a commodity are only issued if the effective price for a commodity is below the target price for the commodity. Counter-cyclical payments provide support counter to the cycle of market prices as part of a "safety net" in the event of low crop prices. Counter-cyclical payments for a commodity are only issued if the effective price for a commodity is below the target price for the commodity.

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