Break even

[$short]

My numbers are up this year due to higher fuel,
seed and fertilizer costs. They also include an
application of fungicide and insecticide on
everything.

Haven't decided to cut the fert on the summer
fallow acres or not? These costs I posted still
have the full rates.

Labor also has been on the rise the past few
years.

I was hoping to get some benchmark numbers.
It's good to know if your costs are high compared
to others.

Land cost is also on the rise. I am not a high cash
rent payer but if the value of the land you own has
increased you need to adjust your land cost
accordingly.

This time of year it's important to know your costs
if you are looking at pricing new crop.

[$short]

Freewheat......don't be shy. It's not a contest.
They are what they are. If you can keep yours
low that's a good thing

[mbratrud]

Freewheat, short$ is right this is not a contest thee nis no right number. land Equipment farming practices can make HUGE differences on these numbers.

[freewheat]

You guys have suckered me! lol, no, I actually did alot of thinking on my trip today, and ran through them again here.

My land rent is only 30-35, being flooded has kept it low, land prices have hardly moved in 10 years, etc., keeping land cost fairly low. I run 15-20 year old machinery with minimal iron debt, and hire no help, which also puts a lid on my numbers. Seeding 5.25 a pound ****seed lowers my seed cost on the canola side a fair bit, and trucking is part of the contract on a third of my acres etc...I have old buildings, old bins, old everything!

So my canola break-even is about 230 bucks, Cereals are in the 210 area.

I know it is not a test or a race or a competition, I just saw 300 dollars plus and was surprised.

I would think rent and land costs are the biggest factor for the difference "here".

[freewheat]

Cereals meaning Wheat/barley. Oats would be about 30 bucks lower, less herb. less N fert.

[MoeAgostino]

Great discussion guys...the objective is to maximize profits so keeping costs low is critical.

Here is a video we did to help guys figure out how to calculate cost of production and breakeven.

Moe

>

[mbratrud]

$short Don't cut N on anything you haven't done Soil Tests on. In 2010 Wet Summer and Fall our Unseeded (Thats what I call Summer Fallow LOL) we had very poor Cycling a virtually 0 N Available. This Year we We wet early but have been Dry since the beggining of August and that seems to have allowed more cycling and we have much more available N. Point is Every Year is Different and we wouldn't be cutting back if it wasnt for out Soil Analysis. We are stil applying 70 to 85 lbs of N.

Freewheat, If you are growing good crops and making good money your numbers are something you should be proud of. I am working on getting my equipment costs down and they will be within a couple years. We just bought a big chunk of the family farm so these should be my worst years. I hope to be meaner and leaner soon. Hopefully things don't go to shit in the meantime. LOL

Good Post Moe!

[freewheat]

Thanks, m. Thing is, I haven't been growing good crops at least lately due to rain. But I know I can, and I have in the better years. With a half normal year, I should be ok. I was lucky enough to buy out the family land about 7 years ago, right when land values were relatively low. I wish there had been more! So that was pure luck. But it also was a double edged sword when a guy can't produce in several years there. Had I been buying at higher prices, I am sure I would have had to walk away by now. We were VERY tight last spring to even seed a crop, and thankfuly we got seeded, harvested a mediocre crop, but are in much better position for this spring. Things take time to establish alright...

I have been pushing harder in the past to get higher canola yields, to try and use my "credit" to the best end. But this year, I should be able to spread that around and push the other crops harder as well.

I would say my targets are 40 plus canola, 60 plus wheat, 90 barley. Whereas I would not have targeted the cereals as high in the past due to higher risk/poorer input funding, and wanted to chase canola harder.

[hobbyfrmr]

Freewheat, I think that the difference in costs from other benchmarks is machinery costs. Add 3 yr old, used,tractor and combine payments to your cost of production and watch how it takes away your personal salary. Suddenly you dont get to live anymore! So, then, a person thinks they have to rent more land in order to be more efficient and the beat goes on.
As suggested above, its not a contest, the real race is with yourself. It more beneficial to have some kind of cash to buy/rent because you can, instead of renting because you think you have to. Try to stack up some cash when you can. It helps to put the downpayment on something. Its difficult at times but it happens. Most overnight successes take about 15 years!

[malta]

Canola, right around the 300, cereals 250 and peas 240. All costs can run up 25-50 if growing conditions are real good due to top dressing and second fungicide. I target another $25 for profit.

[rhoff]

Freewheat if your depreciation is
10.00/acre then you are well below average.Which is good-keep the fixed costs low and you can put more towards crop inputs.Our machinery is relatively new (08-09) and depreciation probably runs us about 40/acre.

[wd9]

50 bushel at $13 minus the 320 cost is pretty good profit for 12 weeks of work! Farming is still the best business on the planet.

[SASKFARMER3]

25 x 13 = 325 profit of 5. OOO not as
good.
One or two missed rains and boom your
their, 50 avereage every year is one tough
cookie.

[furrowtickler]

WD - you seriously do not use those numbers, do you??
Do you have all 50 bus locked in at $13. Or a total production contract at $13. Were does one gaurentee 50 bus/ac, or is that relying on other an farm carryover?
How does 20 bus at $8 fit in that?

[SASKFARMER3]

Furrow we use a 10 year average when
figuring Bushels per acre.
Yes 2000 had a few bad years, OK total
shit years but it can happen any time.