C26—Lancaster Farming, Saturday, February 2,1980 By now most farmers should have a pretty good idea of last year’s crop production. Things like yield, fertilizer costs, fuel costs, and so on should be obvious. The only unknown at this point might still be price per bushel. What I’m leading up to is the opportunity to compare your costs with those of farmers throughout the country. The 1980 Ford Almanac contains a section on production costs for a variety of farm commodities and includes a low, medium, and high category, and a place for you to pencil In your own production costs. It may be a little hard to relate to the almanac’s cost and production data, but maybe it’s not too far off. Let’s look first at com. Ford’s medium category lists land at $2OOO an acre, yield at 120 bushels, and a fertilizer rate of 140-50-55. That’s actual pounds of plant food per acre. When all costs are counted, including a $125 per acre land rental rate and $4 an hour for the labor in volved, the production cost per bushel of com comes out at $2.65. When you deal with average figures, there’s certainly room to cut some comers, and maybe the average farmer in this area spends less than $125 an acre to rent land. Of course, if he owns it he doesn’t have to spend any money at all except for taxes. But then there is the ownership cost, or ownership value if you prefer, and that is worth something. Usmg the highest priced land and the higher costs and yield, production costs still come out to $2.50 a bushel, mostly because of a sub stantially higher yield per acre - 150 versus 120 for mednim Thp low cost SOYBEAN ROASTING ON YOUR FARM DON'T WASTE IT ROAST IT This little piggy went to market, This little piggy stayed home, This little piggy had... ROASTED SOYBEANS Farm Talk Jerry Webb example, which may be more realistic to many farmers m this area, shows com yield at 100 bushels per acre, a land rental rate of $lOO an acre, and a cost of $2.67 per bushel. The three examples yield a very obvious truth and that is better land that yields more than lower costs per bushel. Another truth that is fairly obvious-none of the examples have costs that are low enough to be very profitable in today’s corn market. And, of course, that # leads to the conclusion that if you’re going to grow com and you can’t do much about the cost, at least do something about marketing so you’re not stuck with $2.75 a bushel for a com crop that cost $2.67 to produce. Production cost examples on soybeans are handled about the same way and come out equally gloomy. $7.09 a bushel cost of production on the lowest land quality, $6.29 on medium, and $5.90 on the very best. Again, the low land quality figures may seem more realistic with yields at 30 bushels an acre and a land rental value of $lOO. The Almanac divides costs into direct costs and indirect costs. For the low quality land producing 30 bushels per acre, the almanac comes up with direct costs of about $57 an acre That includes $8.40 for fertilizer, $1.50 for lime, $9 for seed $ll for herbicides, $l9 for machine operation, and $8.25 for interest on operating capital and miscellaneous costs. Direct costs include $39 an acre for machinery and equipment, $4.50 for gram storage, $lOO for land rental, and $l2 for labor. Perhaps some farmers don’t break their costs dcwn quite that way Some don’t higher profits from all grains, roasting ives TDN, destroys molds and retards ; and removes moisture. CUSTOM GRAIN ROASTING DONE IN PA AND SURROUNDING STATES DALE L. SCHNUPP RD 6, Lebanon, Pa. 17042 Ph: 717-865-6611 ALLEN SUMMERS RD Ml, 80x152-C Nottingham, Pa 19362 York County extension workshops YORK If the winter blahs have you down perk up by learning a new skill. The following classes are being offered by the Penn State Cooperative Extension Service. - Stop Heat Loss Through Window Treatment - Feb. 13, 9:30-11:30, at Pleasant Acres. Learn how cornices, window shades, and allow for indirect costs since they already own the land, storage bins, and equipment. And they don’t include a labor charge, since whatever is left over is theirs. But if they’re going to be realistic about the costs of producing crops, you must include these items and assign fair value to them. With 100 bushel-per-acre corn and 30-bushel soybeans, there isn’t a whole lot of profit. And a farmer may find it difficult to meet his expenses and feed his family on the $4 an hour alllowed for labor. On the other hand, if he can spread his indirect costs over more acres he can reduce them some. And if there’s a little bit of profit per acre and he has enough acres, there’s still the op portunity to make a decent living. The Almanac doesn’t attempt to determine profit since it assigns no value per bushel. But it does leave space for you to figure this one on your own. It’s a good economic exercise, one that almost any farmer could benefit from, even if he’s doing a much better job than the Almanac’s averages. If you’re not on the list for this handy little book, talk to your Ford tractor dealer. He should know how to get one. It’s loaded with interesting information for home, garden and farm, and it’s spiced with a minimum of commercial message. One closing note picked up from the Almanac. The average American will have to work from January 1 until June 2 just to pay taxes. That means about 42 cents of every dollar earned goes toward government taxes of some kind. In 1948, that figure was 24 cents of every dollar; in 1957 it was 35 cents; and in 1968 it was 39 cents. draperies can help control heat losses. - Beginning Knitting - Feb. 20, 27, and March 5, 9:30- 12:00, at Pleasant Acres. Knit a pair of T. V. slippers in class. - Super and Slimming - Feb. 22, 10:00-12:00, Pleasant Acres. Low calories ideas from ap petizers to desserts. - Reupholster a Chair - starts March 18,9:30-2:30, at 4-H Center. - Drapery Class - March 5, 12, 19, 10:00-12:00, at Pleasant Acres. Learn techniques needed to con struct a professional look drapery. - Machine Quilting, March 18 & 25, 9:30-2:30, at Pleasant Acres. Learn to do quilting with your sewing machine. - Making slip covers - PENNSYIVANIA ABMCUUUWE I' WE’RE GROWING BETTER CUSTOM BUILT FEED BINS FEATURING: High quality 14 gauge steel Solid Welded Seams Making it Water and Rodent Proof Long Taper and Large Opening for Easier Flow Can be installed inside or outside building Most Installations Can Be Made Without Auger! WILL DELIVER AND INSTALL ANYWHERE MEL’S WELDING SERVICE R 1 Kennedyville, Md. 301-348-2179 Sales and Service - Grain Equipment, Bucket Elevators. March 13, 25, 26, 27, 9:30- 2:30, at the 4-H Center. Make a slip cover for your chair in class. - Bread Winners - March 27, 10:00-12:00, at Pleasant Acres. Emphasis will be on whole gram breads. 34.5 Ammonia Nitrate save $$ DOLLARS & IMPROVE YOUR YIELD By placing your order on or before Monday, February 4 $BO ton - fines 814-395-5030 Evenings Trucking Available or picked up at the plant located near Pittsburgh, PA Distributors, Pipes and Accessories There is a fee for some of the workshops and class size is limited. For more in formation about the workshops and how to register call the Penn State Cooperative Extension Office at 757-9657.
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