Break even

[$short]

What are you guys using for a break even number
for the 2012 crop? All costs including land and
machinery.

Canola is in the $320 range, cereals are just shy
of $300, pulses are around $200.

Any thoughts? We aren't paying the big cash
rents like some guys are. Covering your cost of
production when you can will be key this year.

[mbratrud]

Canola 286
Lentils 224
Durum 258
Canary 216
Flax 236
Soybeans 245

Biggest Variables are with Fert and seed costs this year. Fuel is a biggy every trip over the field adds up. Just what I have found anyway.

[freewheat]

At the risk of being snoopy, can either of you share a bit of a breakdown on your costs? Are you including depreciation, labour etc.?

Thanks. I am simply having a heck of a time getting my numbers that high, and I want to know what i'm missing...

[$short]

That includes everything...land, tax,labor,
depreciation, kids etc

[freewheat]

That then, must be the differences. My depreciation is about 10 bucks, my labor is cheap. I dunno???

[mbratrud]

My numbers are all in.

[Braveheart]

I like to use a break profit rather than a break even. Breaking even doesn't keep you in groceries let alone business. You don't have to get crazy, just build in 5% profit. Always thinking break profit vs break even changes your thinking in a positive way.

[hobbyfrmr]

Braveheart, that is good thinking. Add a 5% profit to your numbers and aim to break profit. There is no sense doing it for nothing. If the numbers do not pencil out breaking profit, its time to look at growing something else.

Freewheat, if you find your cost of production is not as high as the others, go and buy a new tractor and airdrill! I would suggest adding into your costs one extra custom application of fungicide to your canola crop.

[sumdumguy]

Mbratrud, 224 to maybe make 240. What
business works on a profit margin like that?

[mbratrud]

Sumdumguy, I find it amusing that some are so quick to comment on others numbers without posting their own. First of all you have know idea what I plan on seeding? You have no idea what my target yields or farming practises are. $short wanted to compare cost calculations I abliged. Do you actually know yours?

Nobodys numbers will be the same, infact I was relatively surprised at how close to short$ we were and thats why I participated. Its interesting to benchmark yourself to others.
.

[vvalk]

Using custom rates my costs are $275 for cereals
and $325 for canola. That's using fungicides the
whole way and the best herbicides. Might be a bit
of profit in the custom rates but not much

[vvalk]

Should have said $275-$285 for cereals

[vvalk]

mbratrud. I am surprised at your canola number
not as much that it seems a bit on the low side but
that it is so close to your cereal cost.

[mbratrud]

vvalk, Our canola and Cereal numbers are helped out by better than normal available N numbers in our soil testing this fall. Probably putting down 20% less N just because there is so much available. Canola Seed cost is the biggest difference followed by Insurance but that is mostly offset by difference in In crop Herbicide.

[freewheat]

Hobby, I will buy as many new pieces of machinery as I can to maximize my costs!!lol

Mbratrud, I am game to put up my numbers, but they are so far out, I honestly am not sure what I am missing, and I honestly feel dumb about it. If my numbers were even close, I would play along, but I feel like I would be criticised. i dunno?????

I'm going to re check them a few times, and I'll be back!