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2014 Purdue Crop Cost and Return Guide (August 2013)
Craig DobbinsMichael LangemeierAlan Miller
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Outline of Presentation
• Trends in Revenue, Variable Cost, and Contribution Margin
• 2013 and 2014 Comparisons– Market Revenue– Variable Cost– Contribution Margin– Earnings
• Earnings per Acre, 2005 to 2014
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Trends in Market Revenue, Variable Cost,and Contribution Margin
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2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
100
200
300
400
500
600
700
800
900
1000
Rotation Corn (Average Productivity Soil)Market Revenue Variable Costs Contribution Margin
Dollars per Acre
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2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
100
200
300
400
500
600
700
800
Rotation Soybeans (Average Productivity Soil)Market Revenue Variable Costs Contribution Margin
Dollars per Acre
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2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
100
200
300
400
500
600
700
800
Wheat (Average Productivity Soil)Market Revenue Variable Costs Contribution Margin
Dollars per Acre
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Ten-Year Averages (2005 to 2014)
Crop MR VC CM
Continuous Corn
Rotation Corn
Rotation Soybeans
Wheat
Double-Crop Soybeans
638
683
497
404
314
376
354
186
162
156
263
328
311
241
158
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2013 and 2014 Comparisons
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Market Revenue per Acre(Average Productivity Soil)Crop 2013 2014 % Change
Continuous Corn
Rotation Corn
Rotation Soybeans
Wheat
Double-Crop Soybeans
887
945
670
574
471
719
766
626
441
441
-18.9
-18.9
-6.5
-23.2
-6.5
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Variable Cost per Acre(Average Productivity Soil)Crop 2013 2014 % Change
Continuous Corn
Rotation Corn
Rotation Soybeans
Wheat
Double-Crop Soybeans
486
462
239
204
205
451
431
229
186
197
-7.2
-6.7
-4.2
-8.8
-3.9
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Variable Cost per Acre(Average Productivity Soil)Rotation Corn 2013 2014 % Change
Fertilizer
Seed
Pesticides
Fuel
Other
176
115
38
49
84
138
122
38
50
83
-21.6
6.1
0.0
2.0
-1.2
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Variable Cost per Acre(Average Productivity Soil)Rotation Soybeans 2013 2014 % Change
Fertilizer
Seed
Pesticides
Fuel
Other
77
69
24
16
53
62
73
25
16
53
-19.5
5.8
4.2
0.0
0.0
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Contribution Margin per Acre(Average Productivity Soil)Crop 2013 2014 % Change
Continuous Corn
Rotation Corn
Rotation Soybeans
Wheat
Double-Crop Soybeans
401
483
431
370
266
268
335
397
255
244
-33.2
-30.6
-7.9
-31.1
-8.3
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2014 Contribution Margin per Acre by Soil Productivity LevelCrop Low Average High
Continuous Corn
Rotation Corn
Rotation Soybeans
Wheat
Double-Crop Soybeans
164
221
283
189
161
269
335
397
255
244
403
477
512
323
327
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Land Rent in Dollars per Bushel of Corn YieldLand Quality 2013 2014
Low Yield 1.25 1.37
Average Yield 1.30 1.43
High Yield 1.37 1.52
Note: Based on 2013 Purdue Land Value Survey. These are not forecasted amounts.
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Rotations
• Continuous Corn• Corn/Soybean• Corn/Soybean/Corn/Wheat– 50.0% corn– 33.3% soybeans– 16.7% wheat; double-crop soybeans
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2013 and 2014 Earnings per Acre(Average Productivity Soil)Rotation 2013 2014
Continuous Corn
Corn/Soybean
Corn/Soybean/Corn/Wheat; DC Soybeans
50
120
154
-105
7
24
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2013 and 2014 Total Costs Per Bushel (Corn/Soybean Rotation; 3000 acres)
Crop
Low Yield Average Yield High Yield
$/Bushel $/Bushel $/Bushel
2013 2014 2013 2014 2013 2014
Rotation Corn 5.45 5.34 4.90 4.85 4.44 4.43
Rotation Beans 11.88 12.09 10.67 10.89 9.98 10.25
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Earnings per Acre, 2005 to 2014
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Ten-Year Earnings per Acre(Average Productivity Soil)Rotation Average Standard
Deviation CV
Continuous Corn
Corn/Soybean
Corn/Soybean/Corn/Wheat; DC Soybeans
-7.45
61.03
79.52
107.55
107.00
111.15
175.32
139.77
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Questions, Comments