It’s exciting to see how big of a crop we can produce. What’s not so exciting is looking at the costs to produce a crop at current market pricing. The outlook does not have to be so dismal however. With proper management and
planning we can still forecast a profitable year barring an unforeseen weather disaster. We have the tools to help our customers calculate their cost of production and compare that to yield goals and commodity prices. World record producer Randy Dowdy has openly shared his cost of production and the factors he includes in his calculations for the two years he broke new records:
2014-503 bushel/acre corn
Input cost of $2.67/bushel
Corn sold for $4.60/bushel
Gross Profit of $970.79/acre
2016-521 bushel/acre corn
Input cost of $2.74/bushel
Corn sold for $4.30/bushel
Gross Profit of $812.76/acre
2016-171 bushel/acre soybeans
Input cost of $7.95/bushel
Beans sold of $10.76/bushel
Gross Profit of $480.51/acre
Costs Include:
Land Rent
Planting Costs
Harvest Costs
Handling Costs
Drying Costs
Seed
Chemicals (herbicides, fungicides, insecticides)
Fertilizer
Aerial & Ground application fees
Tissue and soil samples
Utilities & Fuel
Labor & Scouting Fees
85% Revenue Protection
Liability and Property Insurance
Interest on money for 4 months