Changing Costs of Crop Production Crop Advantage Series
- Slides: 37
Changing Costs of Crop Production Crop Advantage Series Osceola, IA Michael Duffy Extension Economist January 15, 2009
Outline • • Background 2009 estimates Distribution of costs Discussion
Costs for 2009 • Extremely hard to predict this year – Pre-paid vs. spot – Changes in world and domestic demand – Changes due to financial crisis – New varieties and traits – Energy markets
Baseline assumptions • • • Diesel $2. 50 N $. 68, P $. 90 K $. 72 LP $1. 90 Corn seed; $250 Soybeans Land; $178 $205 $232 Yields; continuous corn 125 – Rotated corn 140 – Soybeans 45 $45/50 lb 145 160 180 50 55
The Rise and Fall of Fertilizer Prices Source: http: //www. fertilizerworks. com/html/market/ The. Market. pdf
Ammonia Prices Source: http: //www. fertilizerworks. com/html/market/ The. Market. pdf
Iowa Corn Prices vs. Costs Source: USDA-NASS and Duffy and Smith, http: //www. extension. iastate. edu/agdm/crops/pdf/a 1 -21. pdf
Iowa Soybean Prices vs. Costs Source: USDA-NASS and Duffy and Smith, http: //www. extension. iastate. edu/agdm/crops/pdf/a 1 -21. pdf
Impact of Cost Changes • $. 50 increase in diesel adds $. 02 to corn and $. 06 to soybeans • $50 increase in corn seed adds $. 13 • $. 25 increase in nitrogen adds $. 32 and $. 20 for low yield CC and RC, $. 28 and $. 17 for medium yield and $. 24 and $. 16 for high yield
Impact of Cost Changes • A $25 change in rents leads to a $. 20, $. 17 and $. 14 change for CC based on low, medium and high yield land. • The change is $. 18, $. 15 and $. 14 for rotated corn and $. 55, $. 50 and $. 44 for soybeans.
Conclusions • Input prices have risen dramatically and will show increased volatility • Some signs world prices have softened but not likely to be seen until current high priced stocks are used • Take soil tests and only use what is necessary • Remember nitrogen credits and apply what will be optimum given the circumstances
Conclusions • Evaluate seed and seeding rates carefully • Try for flexible lease arrangements • Consider all the pest management options available • Don’t simply cut back without carefully evaluating the consequences; you have to spend money to make money • Consider all the risk management options available
Conclusions • Know your costs of production • Make cuts and changes where they will do you the most good • Follow a good marketing plan
Web sites • Ag Decision Maker: www. extension. iastate. edu/agdm/ • My site: www. econ. iastate. edu/faculty/duffy/
- Pre-production adalah
- Edaphic factors affecting crop production
- Tc fc vc example
- Types of cost savings
- Production, information costs, and economic organization
- Production information costs and economic organization
- Chapter 5 section 2 costs of production
- Actual mechanical advantage vs ideal mechanical advantage
- Comparative advantage ppf
- Sum of infinite series formula
- Deret maclaurin
- Maclaurin series vs taylor series
- Ibm p series vs i series
- Heisenberg 1925 paper
- Series aiding and series opposing
- Shunt-series feedback example
- Taylor vs maclaurin
- Crop lien system
- Crop yield
- Thirsty crop
- Crop revenue coverage
- Trellis crop
- Crop rotation
- "nd crop and seed"
- Crop rotation advantages
- Pigeon dissection labeled
- Cash crop definition
- Jute name in urdu
- Insects kill half the world's tomato crop
- National crop insurance services
- Poplar st sample
- Crop rotation
- Illinois crop improvement association
- Charles mellinger
- South carolina the beautiful palmetto state
- Define perrenial
- Advantages of crop rotation
- Contingent crop planning