![]() Posted 21:31 (#1185948 - in reply to #1185649) Subject: Re: average profit per acreĮastern VA. None of this takes into account other costs of operation like machinery, fuel, other insurances, maintenance, etc.Īnyway, I think going about it from a business breakeven standpoint makes more sense to me and is more likely a predictor of profitability at any given time than just adding up crop inputs and taking that away from the expected gross unless you recalculate with each grain sale and input purchase. ![]() For this example every dime change in average price is $18.57/acre, so if prices drop enough to cause your average to be $3.20, you're at break even. ![]() But wait there is potentially $0.25/bu drying ($46.25/acre ) and another $0.20/bu storage ($37/acre ) and now were down to $64.25 profit. Probably means retiring debt quicker than the accountant wants me to, working hard to keep input costs in check - soil testing, VRT fertilizer application, buying inputs 'out of season', etc and being willing to make significant changes (reduced tillage, planting 30" beans instead of drilling, etc ) where it makes sense.įor your question I think you are looking for something like: Expenses: Land $200, seed $100, Dry fert $100, N $50, Herbicide $15, fungicide/insecticide $15, insurance $25 all comes up to $505 basic crop inputs. Long term, bringing my break even price lower gives me more flexibility in the future. Both cases would yield more actual profit for me. It's likely I'll yeild more than that aph and possibly, maybe do better than $3.75 average on the corn price. I have a conservatively figured breakeven around $3.75/bu corn on 167bpa aph ground. If you go the other way around and figure break even price at aph yeilds you can come up with a better number for comparison. However, no one can guess their gross withing $50 so it's a little misleading. The $50/acre profit or cushion seems to be a pretty good number to use. Posted 19:12 (#1185794 - in reply to #1185649) Subject: Re: average profit per acreĭon't know how you could figure profit by not counting all the input costs, including land and equipment. Like do you make each farm it's own, or do you put all your farms together and avg. heck I'll bet truth be told some don't breakeven. me lets say shoot for 50/ac but like said lot of assumptions/differant ways to get to the $ you like or tell the banker. Joe I'm going to guess not to many on here are going to tell you. I know there are a ton of assumptions I was just trying to get a little better idea of what profits were like on an average year. What may be common in one place could be totally different. My point is thers are too many assumptions and variables to just throw out a figure. Are you talking 150 Bu ground or 180? Are you estimating $3.50 corn or $4.00? Is fertility good and maintenance rate only applied or none at all? Are you planting $150/ bag or $200/bag seed. Land and equipment cost are the biggest variable from one producer to the next and the most difficult to determine. Out of curiosity not factoring in equipment or land costs whats the average profit per acre of corn/soybeans? Posted 15:14 (#1185608) Subject: average profit per acre ( logon | register )Īverage profit per acre Jump to page : 1 Now viewing page 1
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |