Crops > Cost & Return > Cost Budgets & Record Summaries

Estimated Costs of Crop Production in Iowa - 2014

File A1-20
Updated January, 2014

download in pdf format pdf format

Estimated annual Iowa production cost budgets for the following crops are presented in this file. These budget tables are presented in the accompanying "pdf" file that you can access by clicking here or on the icon above.


Conventional tillage

xls file Corn following corn


xls file
Corn following soybeans


xls file
Corn silage following corn


xls file
Herbicide tolerant soybeans following corn (herbicide tolerant)

Low-till and Strip till

xls file Low-till corn following soybeans

xls file Low-till drilled soybeans following corn

xls file Strip till corn following soybeans

xls file Strip till herbicide tolerant soybeans following corn

Hay & oats

xls file Alfalfa or alfalfa-grass Hay budget

xls file Alfalfa or alfalfa-grass hay with oat companion crop Budget

xls file Oat or other small grain budget

Maintaining grass pasture

xls file Improved grass pasture


xls file
Improved grass-legume pasture

Other decision tools

xls file Crop rotation summary


xls file
Breakeven worksheet for crops

download teaching activity

The estimated costs of corn, corn silage, soybeans, alfalfa and pasture maintenance in this report are based on data from several sources. They include the annual Iowa Farm Business Association record summaries, production and costs data from the Departments of Economics, Agricultural and Biosystems Engineering, and Agronomy at Iowa State University and a survey of selected agricultural cooperatives and other input suppliers around the state.

These cost estimates are representative of average costs for farms in Iowa. Very large or small farms may have lower or higher fixed costs per acre.

Due to differences in soil potentials, quantity of inputs used and other factors, production costs will vary from farm to farm. Price shifts for inputs can change production costs in both the short and long run. The attached data reflect average cost of purchased inputs and a return to land and labor resources, but do not provide a margin for profit or a return to management. They reflect production costs only, and do not include costs of storage.

Labor has been treated as a fixed cost, since most labor on Iowa farms is supplied by the operator, family or permanent hired labor. However, when deciding among alternative crops, labor should be considered a variable cost. The wage rate used here is $13.00 per hour. The hours assumed per crop are presented in the budgets. The hours per crop acre include not only the field work but also time for maintenance, travel and other activities related to crop production. The land charge is based on rent equivalent. Owned land may require a greater or lesser cash outlay.

In the short run, cash income must be sufficient to pay cash costs, including seed, fertilizer, chemicals, insurance, cash rent and hired labor, as well as machinery fuel and repairs and interest on operating capital. In the long run, income should be sufficient to pay all costs of production for resources to be used in their most profitable alternative.

Corn yields reflect rotation effects. Fertilizer rates have been adjusted to reflect current data on re­moval and application rates. Crop insurance costs reflect the mix of multiple peril, revenue and hail insurance, as well as noninsured acres.

Machinery costs reflect both new and used equip­ment. The machine operations assumed are based on the 2000 Crop Production Practices Survey conducted by the Iowa Agricultural Statistics Service. Further information on this survey can be obtained by contacting the author. The Estimated Machinery Costs table can be used to budget other tillage and harvesting systems.

Estimates represent typical costs and are only intended to be guidelines. Actual costs will vary considerably and can be entered in the column for “Your Estimates.” Electronic spreadsheets for developing crop production budgets are available on the Ag Decision Maker website, www.extension.iastate.edu/agdm.

Budgets for alfalfa hay establishment with an oat companion crop and by direct seeding are included in this publication. Annual production costs for established alfalfa or alfalfa-grass hay as well as a budget for maintaining grass pastures are included as well. Additional pasture establishment budgets are published in Iowa State University Extension publication AG-96, Estimated Costs of Pasture and Hay Production or AgDM File A1-15.

Two low-till budgets, one for corn and one for soy­beans, are included. The major differences between the low-till and conventional budgets are the preharvest machinery, labor, herbicide and seeding costs. The soybean budgets are for herbicide toler­ant varieties. A strip-till budget is also included.

View past publications of the Estimated Costs of Production.

 

Michael D. Duffy, retired economist. Questions?