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Ag Net Fin series
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7/17/2019 fm170ill
http://slidepdf.com/reader/full/fm170ill 1/14
This presentation was produced and is copyrighted by Stewart- Peterson®, Inc. 2005. Permission is granted
for use by actie !g"d#et.com® subscribers. !$$ other use is prohibited.
ST"%!&T-P"T"&S'# and !(")#"T.*'+ are registered trademars of Stewart-Peterson, Inc.
M170 Cost of
Producing Soybeans
Farm Management Library
7/17/2019 fm170ill
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Soybeans as a U.S. crop:
• Soybean acreage is 2nd after corn.
• Soybeans make up about 23% of U.S.
planted acreage.
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Top seen soybean states:
• 70% of U.S. soybean crop from 7 Midweststates• !llinois
• !owa
• !ndiana
• Minnesota
• Missouri• "ebraska
• #$io
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!e"t # soybean$producing
states:
• not$er 23% from eig$t ad&oining states• rkansas
• S. 'akota
• (ansas
• ". 'akota
• Mic$igan
• Mississippi• (entucky
• )isconsin.
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More soybean$gro%ing states:
• lso grown in ot$er Mississippi 'elta andeastern states• *ouisiana
• Maryland
• +irginia
• ,ennsyl-ania
• ". arolina• S. arolina
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Costs ary %ide&y '
/ig$ost ,roducers
• 14.5 per acre
• 3 bus$els per acre
• -erage cost of 16.5per bus$el
*owost ,roducers
• 107.2 per acre
• 60 bus$els per acre
• -erage cost of 12.6per bus$el
• 13. per bus$el difference in a-erage costslow and $ig$ soybean costs
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(ifference bet%een )ig)$ and
&o%$cost soybean producers:
/ig$cost producers
• More fertili8er
• More likely to useirrigation
*owcost producers
• More conser-ation tillage
• *ower mac$ineryin-estments
• *ower operating costs
• *ess power re9uired
• :ewer trips
• More acres to spreade9uipment costs
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*egiona& cost differences +
t)e ,eart&and
• *owest costs; $ig$est yields.
• )ellsuited climate; soil and topograp$y
• Mississippi <i-er transportation• onser-ation tillage
• More soybean
acreage per farm• Soybean=corn
rotation
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*egiona& cost differences + -estern
Corn e&t/ eastern 0reat P&ains:
• ,arts of (ansas; "ebraska and t$e 'akotas
• *ower yields t$an orn >elt but lower -ariable costs
• *arge acreages butsmaller percentageplanted to soybeans
• *ikely to rotatesoybeans wit$ a
small grain; or grain sorg$um
• May re9uire irrigation
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*egiona& cost differences + !ort)ern
Crescent:
• osts $ig$er t$an t$e orn >elt and westernarea.
• !ncludes )isconsin; Mic$igan; nort$ern #$io;,ennsyl-ania andt$e "ort$east
• More per acre onfertili8er; customoperations; fueland repairs
• on-entionaltillage more likely
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*egiona& cost differences + (e&ta and
Sout)eastern U.S.:
• *ower yields; e9ual or $ig$er costscompared to orn >elt
• *arge acreage farms• Spend more on seed; c$emicals; fuel and
repairs
• ontinuous soybean cropping
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(oub&e cropping:
• 2 crops in one season
• May be soft red winter ?S<)@ w$eat
followed by soybeans• ommon in t$e sout$ern edge of t$e orn
>elt; t$e 'elta and sout$east states
• Aields are lower.• :iBed costs are spread between two
crops.
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T%o 1inds of costs:
• +ariable costs C direct eBpenses re9uiredto grow a crop.
• DBamples seed; fertili8er • <elated to number of acres planted
• :iBed o-er$ead costs
• DBamples e9uipment; taBes; insurance• osts related to time; not output
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This presentation was produced and is copyrighted by Stewart- Peterson®, Inc. 2005. Permission is granted
for use by actie !g"d#et.com® subscribers. !$$ other use is prohibited.
ST"%!&T-P"T"&S'# and !(")#"T *'+ are registered trademars of Stewart-Peterson Inc
www.agednet.com
800-236-7862
Graphics were adapted from one provided by the USDA Economic Research Service.