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11-19-2012 05:33 PM #1Banned
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Pro Farmer estimates variable input costs will total $456 per acre for corn and $280
Since you know that I am big on Cost of Production numbers. Does everyone feel just for Variable Costs that these figures of $456 for corn and $280 for beans are fairly accurate? From my notes and budget planning it appears they are almost directly on the money. I would be very interested in knowing if someone has production figures that are way below or way above these figures so we could compare budget figures.
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11-19-2012 05:53 PM #2Senior Member
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Its foolish to even talk per acre costs.
per bushel is what counts.
we don't all live in the big I states.
I'm still working on mine, the way it looks, sorghum is going to get a chunk of my acres. I don't view farming for insurance as kosher, and my few pigs need some grain, and cows need stalks. corn that hits knee high twice ain't fer shiite when you need to graze cows.
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11-19-2012 07:30 PM #3Senior Member
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70 seed
138 fertilizer
100 chemical
122.5 N
20 diesel
$10 parts
$5 gas
$44 freight
$509 total
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11-20-2012 09:50 AM #4Banned
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Yes, per bushel is what counts, but you really need to figure out per acre first, and then cost per bushel. I am looking at $475/acre or $2.15 per bushel based on a 220bu yield. See Dave is around $500/acre which is in the ballpark. Which property taxes included I am at $500/acre or $2.27/bushel. You get a $6 corn price and a 220bu yield it puts you at $820/acre for a profit. $820/acre is why farmland is selling for $15,000/acre in my area.
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11-20-2012 11:16 AM #5Senior Member
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reason being , with less inputs that i use in the lower yield environment, i have lower costs per acre, but quite potential higher costs per bu in the end. that's why i don't discuss a cost per acre, you would think its incredibly low compared to yours and you are not good at comprehending others peoples environments and situations
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11-20-2012 11:21 AM #6
No...The reason it's selling for that much is crop ins. Throw real risk in there and see how much money your banker will give you for running money, when your paying $600.00/acre rent which your to stupid admit you really are.
BTO's willing to be azzholes and bid up rent because they can make $60.00/acre after all their REAL costs risk free thanks to the American tax payer funding crop ins. is the main reason. Take that away, assign REAL risk and lets see what happens. I'm thinking it would be like the grain market when spec traders decide to "risk off" trade. Oh yea, that'll happen also if we lose crop Ins.
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11-20-2012 12:19 PM #7Banned
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Obviously land costs, at least in Iowa is a huge cost factor. At a $600/acre cash rent and a 220bu yield, that's a $2.27 per bushel fixed or land cost. My only land/fixed cost on paper is a $25/acre property tax payment. I understand that I have $15,000/acre in equity tied up in each acre now that farmland prices have gone though the roof the last 5 years in Iowa. And yes, I could sell the land for $15,000/acre and put that money in stocks, bonds,etc. But how do you come up with a $600/acre land cost? By the cash-rent I could get, rather than Custom Farming it? With a rough $820/acre profit at $6 corn and a 220bu yield, I can make $220/acre more by Custom Farming, rather than cash-renting it for $600/acre. $220*1,000/acres is an extra $220,000 profit in 2013 than the $600/acre in cash-rent. So with an extra $220,000 per every 1,000 acres, that is why more and more Landowners are switching from a cash-rent lease to paying a Custom guy for his equipment, labor, and fuel.
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11-20-2012 12:26 PM #8Banned
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On the crop insurance in Iowa, for every 1,000 acres, (I like using a 1,000 acres benchmark figure), the taxpayer is paying $43,000 for a farmers crop insurance in Iowa. So in theory, on 220bu yield this taxpayer subsidy is only 19 cents a bushel. If the crop subsidy was dropped, most guys could pick-up on the extra 19 cents per bushel cost with little or no problem.
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11-23-2012 08:05 AM #9Banned
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ICF - my Federal Crop Insurance Premium that I pay is about $28 per acre on soybeans. I do not know what portion is paid by the taxpayers. John
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12-06-2012 02:20 AM #10Member
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