How do you track your crop break-even price?

With lower prices in 2014, but continuing high input prices and land costs, it's more important than ever to track your break-even price. We'd like to know how you keep track of that price. Do you just have a ballpark idea in your head? Do you calculate a whole-farm average? Or do you take it down to the per-bushel, per-field level? Take the poll and let us know. Please leave comments below about how you track your break-even costs. We love to hear from you!

Discuss this poll 11

Anonymous
on Feb 12, 2014

2014 expenses rent $200,seed$100, fert$200,chem,fuel misc,$100. income ,200bu at $3.00 per bu, there both the same, i wish someone could tell how to make money on corn this year.

Anonymous
on Feb 8, 2014

I calculate cost per bushel by crop. Using yield averages over multiple years.

Anonymous
on Feb 1, 2014

University of Purdue has a cost breakdown that I can manipulate in MS Excel to calculate the cost per acre, adjusting each input factor and variances in price and yields. That way I have a better knowledge of how the fields will be performing in 2014.

Anonymous
on Feb 1, 2014

With the current price and costs in our area their is no money to be made at 185 bu. corn @ $ 4.30. Most rented ground at that price and yld. will lose money. Only ground that is paid for will show a profit at current levels. Soybeans made a small profit if yields were above 56 bpa. and you sold them at $ 12.00.

Anonymous
on Jan 29, 2014

The first thought that enters the equation is the flat out return per acre yield and price. You immediately start out with a double variable. Anyone that says they truly know their cost per bushel before planting is just taking an educated guess. With so many factors influencing break even I really don't think the best operator in the country could hit B/E before the crop is planted. After harvest and after pricing, certainly you can hit it to the penny with B/E analysis. By then you have a fixed amount you are dealing with. Basically it is going to be too late to do much about it. I like the comment about farming for God or what ever one believes in. Some people spend way too much time dealing with running their farm they really don't enjoy life! Either that or they have way too big an operation. I like to drive my Corvette once in a while in the summer and Ski at my condo in Colorado for a few days in the winter. Life is way too short! People have to learn to enjoy life!

Anonymous
on Jan 25, 2014

I calculate it by overall bushels when harvest is complete to get a even better knowing of what my actual breakeven price is.

Anonymous
on Jan 25, 2014

I calculate it by overall bushels when harvest is complete to get a even better knowing of what my actual breakeven price is.

Anonymous
on Jan 25, 2014

i calculate cost per bus over total farm

Anonymous
on Jan 25, 2014

i like to calculate cost per bus over entire farm operation

Anonymous
on Jan 25, 2014

Costs are calculated . Crops are often sold in next calendar year. There is difficulty in allocating costs such as fixed and variable overhead , direct and indirect labor, and is further complicated by other enterprises such as cattle , cow -calf , feeders . As a rule this is done by percentage of income .Enterprise analysis is done . I have taken 10 percent off for depreciation each year. With inflation over time
this has been too much as some items are worth as much as when purchased. This non cash item may be the hardest to pin down. Costs do behave differently in relevant production ranges giving different b/e.

Anonymous
on Jan 25, 2014

The returns are always good when one farms for God. I may not like the floods and droughts we all go through, sometimes I wish the crops yielded better, but at the end of each farming season The Lord has provided.

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