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Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
Cost of production and budgets for dry beans and field peas
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Cost of production and budgets for dry beans and field peas

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2014 presentation on the economics of dry edible bean and field pea production by Jessica Johnson, Extension Educator - Ag Economics at the UNL Panhandle Research and Extension Center at Scottsbluff, …

2014 presentation on the economics of dry edible bean and field pea production by Jessica Johnson, Extension Educator - Ag Economics at the UNL Panhandle Research and Extension Center at Scottsbluff, NE

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  • Estimate your cost of production, Expected Price, Water Allocation… obtain a estimated Net income per acre.
  • Transcript

    • 1. Stateline Bean Producers Jessica Johnson Asst. Extension Educator, Agricultural Economics Panhandle Research and Extension Center
    • 2. 2014 Nebraska Crop Budgets
    • 3. 2014 Nebraska Crop Budgets • Western Nebraska Budgets – Alfalfa, corn, wheat, dry beans, millet, dryland peas, sugarbeets and sunflowers – Available online http://cropwatch.unl.edu/economics/bud gets • Irrigated Pea Budget go.unl.edu/pagecon
    • 4. 2014 W. Nebraska Crop Budgets No-Till Dryland Budget # Yield Cost/Unit Change from „13 Millet 40 22 cwt. $8.72 NEW Peas 43 35 bu. $5.75 NEW Wheat 61-63 45-55 bu. $5.26 - $6.40 ↓4to↓10% Irrigated Budget # Yield Cost/Unit Alfalfa 12 6.6 tons $78.44 NEW Corn 22 26 180 bu. $4.04 $4.49 ↓3% Dry Beans 30-32 25 cwt. $23.59- $23.69 ↓6-↑2% Wheat 65-66 85-90 bu. $5.13 - $5.65 ↓3 to ↑7% Peas N/A 60 bu. $7.24 NEW
    • 5. 2014 Crop Budget Prices of inputs were generally higher, with some notable exceptions including nitrogen and glyphosate herbicides…increased land prices put upward pressure on the cost of production for all crops. http://agecon.unl.edu/documents/2369805/5842081/1-22- 14.pdf/7ae6c72a-54aa-48e7-842b-7b5c4af4c0a2
    • 6. Land Values
    • 7. Reported Cash Rental Rates: Center Pivot Irrigated Cropland 2013 Average % Change from 2012 High Low Northwest 225 13 265 170 North 265 13 285 208 Northeast 379 15 477 302 Central 287 12 358 240 East 355 13 441 281 Southwest 269 14 325 210 South 313 12 363 259 Southeast 345 13 427 268 Source: 2013 UNL Nebraska Farm Real Estate Market Developments Survey
    • 8. $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Cash Rental Rates for the Northwest District Dryland Gravity Irrigated Center Pivot Irrigated
    • 9. Cash Rent • Rents should stabilize, or start down • Rents are still determined by supply and demand • Tenants need to sharpen the pencil • Landlords need to be understanding
    • 10. 2014 Commodity Prices
    • 11. @KW@C 610 630 650 670 690 710 730 11/1/13 12/1/13 1/1/14 2/1/14 3/1/14 - Wall Street Journal
    • 12. Market Prices… Futures • 3/4/14 Dec. Corn $4.84 – Average. Panhandle Dec. Basis -0.32 – Expected Dec. Corn Price $4.53 • 3/4/14 Sept. HRW $6.83 – Average. Panhandle Sept. Basis -1.11 – Expected Sept. Wheat Price $5.72 • Dry Beans? • Peas?
    • 13. Dry Bean Prices 0.00 10.00 20.00 30.00 40.00 50.00 60.00 Pinto Bean Cash Price ($/cwt.) Great Northern Bean Cash Price ($/cwt.)
    • 14. 2014 Bean Price • Expected Dec. Corn Price $4.52 $4.52/56*4=0.3229 *100=$32.29
    • 15. Another way to look at it… 0.85 0.90 0.95 1.00 1.05 1.10 1.15 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG MonthlyPriceIndex Great Northern MPI Pinto MPI Feb. Avg. Great Northerns $50 Pintos $34.25
    • 16. 2014 Prices • Strong basis during 2013/14 • USDA Outlook 2013/14 http://www.usda.gov/oce/forum/2014_Speeches/Ash.pdf – Corn $4.50/bu. – Winter Wheat $6.80/bu.
    • 17. 2013/14 W. NE Corn Basis -1.00 -0.50 0.00 0.50 1.00 1.50 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG Western NE Corn Basis 2007/08-2012/13 Average Basis 2013/14
    • 18. Net Income
    • 19. Quick Math Corn Wheat Beans Peas Futures – 3/4/14 Dec - $4.84 Sept. HRW $6.83 Basis -0.32 -1.11 Expected $4.52 $5.72 $32.29 $8.00 Estimated Breakeven $4.49 $5.13 $23.59 $7.24 Per Unit $0.03/bu. $0.59/bu. $8.70/cwt. $0.76/bu. Per Acre 180 bu. $5.04 85 bu. $50.15 25 cwt. $217.5 60 bu. $45.60
    • 20. Limited Irrigation Calculator Available ONLINE go.unl.edu/pagecon
    • 21. A little humor… 20 14 www.dilbert.com, As seen http://www.usda.gov/oce/forum/2014_Speeches/Ash.pdf Take UNL’s Bean Survey ONLINE NOW! Go.unl.edu/beansurvey
    • 22. Office: 308-632-1247 go.unl.edu/pagecon jjohnson@unl.edu PanhandleAgEcon Extension is a Division of the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln cooperating with the Counties and the U.S. Department of Agriculture. University of Nebraska-Lincoln Extension educational programs abide with the non- discrimination policies of the University of Nebraska-Lincoln and the United States Department of Agriculture. Get current Panhandle price & basis information TEXT “@UNLPREC” to 651-968-8358 Standard message & data rates apply.
    • 23. Back Page

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