Large movements in commodity prices the last few weeks have changed projected budget bottom lines for many of the Enterprise Crop Budgets developed by OSU Extension. The Prospective Plantings Report issued by the National Agricultural Statistics (USDA) on March 31 st indicated that producers plan to plant 86 million acres of corn and 74.8 million acres of soybeans in the U.S. in 2008. This survey work was done with producers at the beginning of March before the major swings in price had taken place. Have producers changed their minds? No doubt, some have, but will there be substantial acreage shifts due to this change in price relationship between corn and soybeans? It will, no doubt, continue to be guesswork for most of the spring.
Projected profitability in soybean production has taken the biggest hit in the last 3 weeks as futures and forward prices for soybeans have dropped dramatically while projected profitability in corn production has seen slight increases even with continued increases in nitrogen prices.
Projected Returns Above Total Costs for Corn (Conservation Tillage – NH3 used as Nitrogen Source) is $337.49 for a 181 Bushel Corn Crop at $5.50/bushel Forward Cash Priced (October Delivery). Projected Returns Above Total Costs for Soybeans (No Tillage – Roundup Ready) is $128.62 for a 56 Bushel Soybean Crop at $10.50/bushel Forward Cash Priced (October Delivery). These are estimates and may not be representative of your own farm costs and prices. Always use your own costs and prices to make these important management decisions!
Check out our latest 2008 Enterprise Budgets updated April 3 rd at:
http://aede.osu.edu/Programs/FarmManagement/Budgets/crops-2008/