1. 2013 Crop Budget Projections Presented by: Ben Beale Extension Agent-St. Mary’s Co.

2. General Farm Statistics CropSt. Mary’sCharlesCalvertTotal Number of Farms 6214182741313 Land in Farms719205214726443150510 Average Size10912597------- Value of Sales in 1000’s CropSt. Mary’sCharlesCalvertTotal 159478898405228897 Grain4497328614599442 Tobacco9061511271184 Vegetables24119395883938 Nursery and Greenhouse 31631554600(est)4717

3. Field Crop (acres) CropSt. Mary’sCharlesCalvertTotal Corn103517826468522862 Soybeans134797098241922996 Wheat4431340018949725 Barley10105021431655 Tobacco4968250628 Forage55794832273013141 Vegetables6963974001493

4. 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 2010. The Maryland agricultural industry contributes more than $17 billion in revenue annually

5. Salisbury pricesclose 8/8/12 Basis Cash corn9.07.90 Dec 12 12 fall corn8.37.20 Dec 12 Cash soybeans16.40.40 Sept 12 12 fall soybeans15.41 -.40 Nov 12 August 2012 wheat8.64 -.35 Sept 12 J/J 2013 wheat7.78 -.65 July 13

6. Salisbury pricesclose 1/16/13 Basis Cash corn7.71.45 13 fall corn5.98.10 Cash soybeans14.05 -.20 13 fall soybeans12.41 -.40 January 2013 wheat 7.18 -.60 J/J 2013 wheat 7.25 -.65

7. December 2013 Corn November 2013 Soybean

8. July 2013 Wheat

10. University of Maryland Extension

11. U.S. Annual Average Corn Price, 1908-2005 Source: USDA/NASS 1908-1942 35 years Avg $0.78 1942-1972 30 years Avg $1.26 1973-2005 33 years Avg $2.37

12. 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

13. Finding your niche-Getting things in the right place.

16. CORN GRAIN, NO-TILL NON-IRRIGATED PER ACRE FORJan-13 ITEM UNITQUANTITYPRICETOTAL GROSS INCOME CORN GRAIN BUSHEL150$5.68$852.00 VARIABLE COSTS SEED RR 1000 SEEDS28$2.00$56.00 SOIL TEST ACRE10.30 NITROGEN POUND1500.68102.00 PHOSPHATE POUND300.7823.40 POTASH POUND600.5834.80 LIME TON0.545.0022.50 LUMAX QUART2.512.5031.25 ATRAZINE QUART0.51.000.50 ROUNDUP QUART14.00 CROP INSURANCE (CRC 70%) ACRE125.49 DRYING FUEL BUSHEL1500.2030.00 INTEREST ON OPERATING CAPITAL $274.750.55.5%7.56 TOTAL VARIABLE COSTS LISTED ABOVE $337.80 FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS) FERTILIZER SPREADING ACRE18.33 NO-TILL PLANTING WITH FERTILIZER ACRE119.31 NITROGEN APPLICATION ACRE110.21 PESTICIDE APPLICATIONS ACRE18.31 HARVESTING ACRE130.33 HAULING BUSHEL1500.1522.50 INTEREST ON SPRING CUSTOM CHARGES 46.160.58.5%1.96 LAND CHARGE ACRE160.00 TOTAL FIXED COST LISTED ABOVE $160.95 TOTAL VARIABLE AND FIXED COST LISTED ABOVE $498.75 NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE $353.25 PRICES NET INCOME ABOVE VARIABLE AND YIELDS$4.26$5.68$7.10 FIXED COSTS LISTED ABOVE FOR 112.5($19.50)$140.25$300.00 VARIOUS YIELDS AND PRICES 150$140.25 $353.25 $566.25 187.5$300.00$566.25$832.50

17. SOYBEANS RR READY PER ACRE FORJan-13 ITEMUNITQUANTITYPRICETOTAL GROSS INCOME SOYBEANSBUSHEL40$11.91$476.40 VARIABLE COSTS SEED1000 SEEDS150$0.36$54.00 SOIL TESTINGACRE10.30 PHOSPHATEPOUND450.7835.10 POTASHPOUND400.5823.20 LIMETON0.545.0022.50 GRAMOXONE INTEONPINT22.875.74 ROUNDUPQUART14.00 WARRIOROUNCE32.347.02 CROP INSURANCE (CRC 70%)ACRE114.90 INTEREST ON OPERATING CAPITAL$151.860.58.5%6.45 TOTAL VARIABLE COSTS LISTED ABOVE $173.21 FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS) FERTILIZER APPLICATIONACRE18.33 SOYBEAN - NoTillACRE117.82 PESTICIDE APPLICATIONSACRE38.3124.93 HARVESTINGACRE129.92 HAULINGBUSHEL400.156.00 INTEREST ON SPRING CUSTOM CHARGES$51.080.55.5% $ 1.40 LAND CHARGEACRE160.00 TOTAL FIXED COST LISTED ABOVE $148.40 TOTAL VARIABLE AND FIXED COST LISTED ABOVE $321.62 NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE $154.78 PRICES NET INCOME ABOVE VARIABLE ANDYIELDS$8.93$11.91$14.89 FIXED COSTS LISTED ABOVE FOR30($53.64)$35.68$125.01 VARIOUS YIELDS AND PRICES40$35.68$154.78$273.88 50$125.01$273.88$422.76

18. WHEAT PER ACRE FORJan-13 ITEMUNITQUANTITYPRICETOTAL GROSS INCOME WHEATBUSHEL75$6.85$513.75 VARIABLE COSTS SEEDPOUND150$0.25$37.50 SOIL TESTINGACRE10.30 NITROGENPOUND700.6847.60 PHOSPHATEPOUND400.7831.20 POTASHPOUND400.5823.20 LIMETON0.545.0022.50 HARMONY GT XPOUNCE0.511.005.50 TILTOUNCE41.937.72 WARRIOROUNCE32.347.02 OSPREYOUNCE4.753.0314.39 CROP INSURANCE (CRC 70%)ACRE 1.00 13.15 INTEREST ON OPERATING CAPITAL$196.930.58.5%8.37 TOTAL VARIABLE COSTS LISTED ABOVE $218.45 FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS) SPREADING FERTILIZERACRE2$8.33$16.66 VERTICAL TILLAGEACRE216.8833.76 BROADCAST SEEDINGACRE117.12 PESTICIDE APPLICATIONACRE28.3116.62 HARVESTINGACRE129.97 HAULINGBUSHEL750.1511.25 INTEREST ON FALL CUSTOM CHARGES$84.160.55.5%2.31 LAND CHARGEACRE160.00 TOTAL FIXED COST LISTED ABOVE $187.69 TOTAL VARIABLE AND FIXED COST LISTED ABOVE $406.15 NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE $107.60 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$236.04 93.75$75.49$236.04$396.59

19. CORN GRAIN, NO-TILL, POULTRY LITTERPER ACRE FORJan-13 ITEMUNITQUANTITYPRICE TOTAL GROSS INCOME CORN GRAINBUSHEL150$5.68$852.00 VARIABLE COSTS SEED RR1000 SEEDS28$2.00$56.00 SOIL TESTACRE10.30 NITROGENPOUND800.6854.40 PHOSPHATEPOUND00.780.00 POTASHPOUND00.580.00 POULTRY LITTER 70.44-59.42-46.86 lbs/tonTON212.0024.00 LIMETON0.545.0022.50 LUMAXQUART2.512.5031.25 ATRAZINEQUART0.51.000.50 ROUNDUPQUART14.00 CROP INSURANCE (CRC 70%)ACRE125.49 DRYING FUELBUSHEL1500.4060.00 INTEREST ON OPERATING CAPITAL$192.950.55.5%5.31 TOTAL VARIABLE COSTS LISTED ABOVE $283.75 FIXED/OVERHEAD COSTS (CUSTOM RATES ARE USED AS A PROXY FOR FIELD OPERATION COSTS) MANURE HAULINGTON220.5041.00 MANURE LOADINGTON210.6721.34 MANURE SPREADING - LITTERTON27.8815.76 MINIMAL TILLAGEACRE116.88 NO-TILL PLANTINGACRE119.31 NITROGEN APPLICATIONACRE110.21 PESTICIDE APPLICATIONSACRE18.31 HARVESTINGACRE130.33 HAULINGBUSHEL1500.1522.50 INTEREST ON SPRING CUSTOM CHARGES91.810.58.5%3.90 LAND CHARGEACRE160.00 TOTAL FIXED COST LISTED ABOVE $249.54 TOTAL VARIABLE AND FIXED COST LISTED ABOVE $533.29 NET INCOME OVER VARIABLE & FIXED COSTS LISTED ABOVE $318.71 PRICES NET INCOME ABOVE VARIABLE ANDYIELDS$4.26$5.68$7.10 FIXED COSTS LISTED ABOVE FOR112.5($54.04)$105.71$265.46 VARIOUS YIELDS AND PRICES150$105.71$318.71$531.71 187.5$265.46$531.71$797.96

20. “Any Questions?” Ben Beale University of Maryland Extension 301 475 4481 bbeale@umd.edu