Report Compares Cost of Crop Production in Iowa

January 30, 2020, 9:52 am | Alejandro Plastina

AMES, Iowa – Managing the cost of crop production will continue to be critical for farmer profitability this year, and farmers have some recent data to consider, found in Iowa State University Extension and Outreach’s “Estimated Costs of Crop Production in Iowa” report.
Included in the January edition of the Ag Decision Maker, the report “provides average cost estimates for Iowa farms in 2020, and provides guidelines to help farmers calculate their own costs of production,” according to Alejandro Plastina, report author and assistant professor and extension economist at Iowa State University.
The report includes crop production prices for corn, corn silage, soybean, alfalfa and pasture maintenance, with data compiled from multiple state surveys.
On average, the total cost of corn and soybean production in Iowa is expected to decline by 4% from last year. However, producers will still need to be prudent to be profitable, as there is still substantial uncertainty regarding crop prices for the rest of 2020.
The estimated costs of production for continuous corn are $3.81, $3.78 and $3.76 per bushel, for expected yields of 164 bushels per acre, 182 bpa and 200 bpa, respectively. The estimated costs of production per bushel for corn following soybeans are $3.22, $3.23 and $3.23, assuming 179 bpa, 199 bpa and 219 bpa, respectively.
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