2014 Purdue Crop Cost and Return Guide Now Available

The Purdue Center for Commercial Agriculture has released the 2014 Purdue Crop Cost and Return Guide, based on September price and cost estimates. This document typically is updated from time to time through the fall but this is a first look at what they expect. The most significant numbers from these are that Purdue is projecting a substantial reduction in the profitability of growing corn next year. For example, rotational corn return has dropped from $660 in 2013 to $491 in 2014 on high productivity soils and from $483 to $345 on average productivity ground. Soybean returns have also dropped but less drastically.

This is important information both as you start planning what to plant next year and in case any of you are involved in renegotiating leases. Keep in mind as you look at these that these are not overall farm budgets, just projected numbers for one aspect of a farm operation; getting a crop planted, harvested and sold. There are substantial ownership and overhead costs not accounted for. In this guide, you will not have paid yourself or included family living expenses. Land costs are not included. Costs of machinery ownership are not included.

This guide is handy for looking at trends and projections but to really assess your operation, you should have a budget for your farm using your numbers.

I'm including three links; to the article discussing the 2014 guide, to the 2014 guide, and to the 2013 guide if you want to use it for comparison.

Purdue Article on 2014 Guide

2014 Guide

2013 Guide