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SD | I would say $575-$650 per acre is realistic. You need to figure in average land rent of the ground around you as you could always be renting the land you own to a neighbor at those prices.
Here are some input expenses which would be typical in our area.
Seed - $90
Fert - $100
Chem- $30
Fuel- $10
Insurance- $50
M&E - $75
Rent - $200
Repairs - $15
Living - $25
Total $595 give or take.
Breakeven for 200 bushel corn would be $2.98
Breakeven for 175 bushel corn would be $3.40
Breakeven for local price of $2.65 today would be 225 bu./acre.
Most of the time producers just take into consideration the main inputs of rent, seed, fertilizer, chemical, machinery costs, fuel and insurance. They tend to forget repairs on equipment, insurance not only for the farm but health, life, vehicle etc. etc. Producers must also remember to factor in a profit because very few can farm for their health or as a hobby.
In my conversations with other producers, more often than not, the low cost producers own a majority of their land, purchases inputs which they receive the most value for and run lean on equipment and labor costs. Most of us aspire to be in their positions. Few of us ever will, but we are forever optimistic.
Edited by chadlit 8/25/2016 12:58
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corn crop cost
