APPENDIX C 

The Economics of Growing Sugar Beets in 

Southern Idaho: A Short run Gross Margin 

Analysis
The Economics of Growing Sugarbeets in Southern Idaho: 

A Short Run Gross Margin Analysis 

Prepared by: 

Paul Patterson 

pattersn@uidaho.edu 

Extension Agricultural Economist 

University of Idaho 

Department of Agricultural Economics and Rural Sociology 

http://www.ag.uidaho.edu/aers

December 31, 2008 

This report can be found at the web site shown above. 

Click on Resources and then Project Reports. 

 

1
Overview

Sugarbeets are grown under irrigation in the three distinct production zones of southern Idaho: Southwest 

(Treasure Valley), Southcentral (Magic Valley), and Eastern Idaho’s lower Snake River Plain. Sugarbeet 

planted acreage in Idaho has averaged just over 189,000 acres over the past ten years, ranging from a high 

of 212,000 to a low of 131,000 just this past year. Sugarbeet processing facilities are located in Nampa, 

Twin Falls and Paul, Idaho. Sugarbeets are traditionally the fourth most valuable crop grown in Idaho, 

behind potatoes (#1), wheat (#2) and hay (#3). Sugarbeets are an important cash crop and contributes to 

the overall economy of the state. A 2004 study of the sugarbeet industry in Idaho by University of Idaho 

agricultural economists showed a total contribution of the sugarbeet industry to Idaho’s economy of $1.08 

billion in sales, $338 million in value-added, and over 7,000 jobs. Maintaining a profitable and 

economically healthy industry is important not only to the growers, but to the state of Idaho. 

Sugarbeet prices in recent years have been relatively stagnant, while input costs have continued to 

increase. Sugarbeet prices over the past ten years averaged approximately $39.60 per ton, ranging from a 

high of just over $44 to a low of just over $36 according to data from the USDA. But this same situation 

also existed for most other commodities grown in southern Idaho. But when grain and forage prices 

spiked to unprecedented levels in 2007, growers saw an opportunity to capitalize on the high returns that 

these crops offered. Crops that were often viewed as money losing rotation crops by potato and sugarbeet 

growers had become the most profitable crop alternatives available to growers. But the high grain prices 

were short-lived. As grain prices declined rapidly after the 2008 harvest, growers once again are 

evaluating their cropping alternatives. 

The objective of this analysis is not to tell growers what crops they should plant. The analysis presents a 

methodology that may be useful to growers and illustrates this method with comparison of sugarbeets to 

other potential crop alternatives for the three primary production regions of southern Idaho. The analysis 

is based on the University of Idaho’s crop costs and returns estimates, or enterprise budgets using input 

cost data for 2008 and crop prices for 2008 and projected prices for 2009. The analysis does not show 

whether or not any of the alternative crops are profitable. The modified gross margin analysis simply 

provides a way of comparing and ranking the crop alternatives and is best used as a short run planning 

tool. 

Method

Gross margin is defined as the gross revenue minus the operating or variable costs of production. Its 

primary use is to provide a relative comparison of crop alternatives in the short run, typically one year. 

The gross margin simply shows the contribution that each crop alternative makes to the farm’s fixed 

costs. An example of using this technique would be to calculate whether growing hard red spring wheat is 

going to have a bigger gross margin, and therefore contribute more to the farms fixed costs, than growing 

malting barley for example. In addition, this technique can be used to calculate the breakeven price or 

yield of alternative crops needed to achieve the same gross margin as the base crop. Three items are 

needed for each crop to make this comparison: 1) price, 2) yield and 3) variable production costs. The 

fixed costs on a typical farm are not going to change based on what crop is grown. The land payment, 

debt service and depreciation on machinery and irrigation systems, and permanent labor or management, 

2
the largest fixed costs, will be the same. There are some reasons that using a gross margin analysis based 

on University of Idaho enterprise budgets is not the same as a grower conducting the analysis using 

his/her farm specific data. Rather than using a constant value that would reflect the average for the farm, 

the fixed or ownership machinery costs in the University of Idaho’s enterprise budgets are calculated 

based only on the specific machinery used to produce that crop, not an average cost. Also, the University 

of Idaho often uses custom rates to cost some operations, rather than assuming that the grower owns and 

operates all the machinery. For example, we use a custom combining and hauling in all our southern 

Idaho grain budgets. These custom rates charges all show up as an operating or variable cost, even though 

part of the charge is technically for debt service and depreciation on equipment. To avoid a bias against 

crops where custom rates are used for some major field operations, the analysis in this report uses a 

modified gross margin by subtracting the crop specific equipment ownership costs from the gross margin. 

The resulting modified gross margin value is a return to the land, irrigation system, general farm overhead 

and the owner-operators management and labor, and will be referred to as the Net Return. 

Analysis

This report provides an analysis for each of the three primary growing regions of southern Idaho. Yield, 

production costs, and crop alternatives vary by region. The analysis presents five tables for each 

production region. Each table has a regional designation in addition to the table number. Eastern Idaho is 

A, the Magic Valley is B and the Treasure Valley is C. Table 1 lists the crops included in the analysis, the 

crop prices for 2008, and the projected crop prices for 2009. Table 2 shows the yield, price and the 

resulting gross margin for each crop for 2008. Table 2 also shows the operating expenses (variable costs) 

and the resulting gross margin when the operating cost is subtracted from the gross revenue. The next 

item shown in the table is the equipment ownership costs specific to each crop. This value is subtracted 

from the gross margin to derive a modified gross margin, or the net return to all the other fixed factors. 

Table 3 is similar to Table 2, except that the gross revenue is based on the 2009 price. No adjustments 

were made to the production costs. Table 4 presents a modified breakeven comparison that uses 

sugarbeets as the base crop and shows what price the other crops would have to have in order to generate 

the same net return to land, irrigation system, overhead and management based on the projected 2009 

sugarbeet price of $45 per ton. Again, this analysis uses 2008 input costs. Table 5 presents a sensitivity 

analysis showing the breakeven prices of the alternative crops needed to generate the same net return as 

sugarbeets as the price of sugarbeets varies from $45 down to $40 per ton. 

An appendix contains the 2008 sugarbeet costs and returns estimate, or enterprise budgets, for each of the 

three production regions. Appendix A-1 is for eastern Idaho, Appendix B-1 is for the Magic Valley and 

Appendix C-1 is for the Treasure Valley. The detailed enterprise budgets for alterative crops are not 

included in this report. They are available in the Excel spreadsheet, which is discussed later. The 

University of Idaho enterprise budgets are based on economic costs, not accounting or cash costs. All 

resources used in the production process are valued at a market rate, or opportunity cost. When all 

resources are valued in this manner, the bottom line shown is often negative. This does not necessarily 

mean that a grower would be losing money, however. It does, however, indicate that the grower is not 

receiving a market return on all the resource used in the production process. 

3
Discussion

Commodity prices for all the crops shown in Table 1 except sugarbeets are based on the author’s 

judgment. The sugarbeet prices were provided by the Amalgamated Sugar Company. Note that the alfalfa 

hay price used in the analysis is a blended price based of feeder quality and dairy quality hay. 

The analysis shown in Tables 2 and 3 is a static analysis, based on set values for yield, price and 

expenses. The Net Return value shown at the bottom of Table 2 clearly shows the higher Net Return of 

the grain and forage crops compared to sugarbeets based on the high prices that were available to growers 

for their 2008 crop. While not every grower realized these prices, these prices were available. In contrast, 

the Net Return at the bottom of Table 3 shows sugarbeets with a higher return than any of the grain and 

forage crops, except alfalfa. 

An issue just as important as the ranking of crops based on the Net Return is, how robust is this analysis? 

In other words, what happens when the price of these alternative crops change? The obvious answer is 

that at some point the ranking will change. Rather than going through a myriad of prices for each crop, a 

breakeven price can be calculated for each of the alternative crops that will generate the same net return 

as the base crop, sugarbeets. What is the likelihood that the breakeven prices shown in Table 4 will be 

achieved? Will we see soft white wheat prices in southern Idaho above $6 per bushel for the 2009 crop? 

Will the price of hard red spring wheat exceed $7? The breakeven prices shown at the bottom of Table 4 

are higher than the 2009 projected prices for all commodities except potatoes and alfalfa hay in eastern 

Idaho and the Magic Valley. For the Treasure Valley, dry beans and field corn also have lower breakeven 

prices than the projected 2009 prices. 

Another uncertainty that needs to be considered in this analysis is, how accurate or stable is the price of 

sugarbeets? What happens to the ranking of the crops in terms of generating net returns if the price of 

sugarbeets declines? Table 5 is designed to address this issue. Table 5 shows the breakeven prices needed 

to achieve the same Net Return as sugarbeets, but as the price of sugarbeets vary between $45 and $40. 

The first column, which is based on $45 sugarbeets, shows the same breakeven values shown in Table 4. 

Again, the input costs used in this analysis are from 2008. 

Conclusions

The modified gross margin analysis used in this report provides a simple short-run planning tool for 

growers to evaluate cropping alternatives. But the analysis is only as good as the underlying price, yield 

and cost data. The use of the University of Idaho’s crop costs and returns estimates (enterprise budgets) 

provides a consistent base for making these comparisons. It should not be considered as an appropriate 

analysis for every grower, however. The analysis presented here does accurately depict the situation that 

growers faced in making cropping decisions for 2008 and helps explain why some growers opted not to 

grow sugarbeets. The analysis also shows that with the higher expected price of sugarbeets, at least for 

2009, and the falling grain and forage prices, sugarbeets can compete with most alternative crops. The 

analysis is limited, however, to those crops for which the University of Idaho currently has a crop costs 

4
and returns estimate. Growers may have other more viable cropping alternatives, but ones for which the 

University of Idaho does not have an enterprise budget. 

Growers interested in running their own analysis can download the Excel spreadsheet that was used to 

create the tables presented in this report. There is an enterprise budget for each crop shown in this 

analysis, with a detailed listing of inputs, quantities and prices. These are similar to the sugarbeet 

enterprise budgets shown in the appendix of this report for the three production regions of southern Idaho. 

These enterprise budgets are automatically linked to the tables shown in this report. The Excel 

spreadsheet should be available in January 2009 at the Agricultural Economics and Rural Sociology 

Department’s web site http://www.ag.uidaho.edu Click on Resources and then Crops. 

5
Table A-1. Eastern Idaho crop prices used in the analysis. 12/13/2008

Crop 2008

Projected 

2009

Sugarbeets $40.00 $45.00

Potatoes: In-weight $5.95 $8.00

Potatoes: Storage $6.75 $9.00

Feed Barley $10.00 $6.00

Malting Barley $16.00 $12.50

Hard Red Spring Wheat $9.50 $6.00

Soft White Wheat $8.00 $5.25

Alfalfa Hay $152.00 $142.00

Potato prices are pre-seasn contract prices for process potatoes, not fresh market.

Note: Alfalfa hay is a blended price, based on 30% feeder quality and 70% dairy quality.

2008 2009

Dairy Quality $170 $160

Feeder Quality $110 $100

$152 $142

Prices shown here are linked to the gross margin and breakeven sheets, but not to the individual

crop budgets. Prices in the crop budgets can be changed without impacting the crop comparisons.

Tab A-1 Prices University of Idaho AERS Dept

6
Table A-2. Eastern Idaho: Upper Snake River Valley. Gross margins summary and return to land, irrigation system, overhead & management by crop.

Crop prices are for 2008.

RUR 

Sugarbeets

Potatoes: Inweight Potatoes: Storage Feed Barley Malting Barley Wheat: HRS Wheat: SWS Wheat: SWW Alfalfa Hay

ton cwt cwt cwt cwt bu bu bu ton

Yield 33 345 345 63 58 105 110 120 6Price $40.00 $5.95 $6.75 $10.00 $16.00 $9.50 $8.00 $8.00 $152.00Gross Revenue $1,320 $2,053 $2,329 $630 $928 $998 $880 $960 $912Total Operating Expenses $918 $1,642 $1,749 $395 $384 $431 $401 $408 $420Gross Margin $402 $411 $579 $235 $544 $567 $479 $552 $492Equipment Ownership Costs $190 $243 $354 $34 $34 $35 $34 $36 $10

Net: Return to Land, Irrigation System, Overhead & Management $211 $169 $226 $201 $510 $532 $445 $516 $482

Note: Values are linked to other spreadsheets in this file. Changes must be made to the individual spreadsheets, not to this summary sheet, which is locked.Commodity prices should be changed in the prices sheet (tab) and expenses should be changed in the individual crop worksheets.Operating and equipment ownership expenses are from 2008.Ownership costs for most crops (except sugarbeets & potatoes) are low because all harvesting is done by a custom operator.

12/13/2008

Tab A-2 Gross Margin - 2008 University of Idaho 
Table A-3. Eastern Idaho: Upper Snake River Valley. Gross margins summary and return to land, irrigation system, overhead & management by crop.

Crop prices are for 2009.

RUR 

Sugarbeets

Potatoes: Inweight Potatoes: Storage Feed Barley Malting Barley Wheat: HRS Wheat: SWS Wheat: SWW Alfalfa Hay

ton cwt cwt cwt cwt bu bu bu ton

Yield 33 345 345 63 58 105 110 120 6Price $45.00 $8.00 $9.00 $6.00 $12.50 $6.00 $5.25 $5.25 $142.0Gross Revenue $1,485 $2,760 $3,105 $378 $725 $630 $578 $630 $852Total Operating Expenses $918 $1,642 $1,749 $395 $384 $431 $401 $408 $420Gross Margin $567 $1,118 $1,356 -$17 $341 $199 $177 $222 $432

Equipment Ownership Costs $190 $243 $354 $34 $34 $35 $34 $36 $10

Net: Return to Land, Irrigation System, Overhead & Management $376 $876 $1,002 -$51 $307 $165 $143 $186 $422

Note: Values are linked to other spreadsheets in this file. Changes must be made to the individual spreadsheets, not to this summary sheet, which is locked.Commodity prices should be changed in the prices sheet (tab) and expenses should be changed in the individual crop worksheets.Operating and equipment ownership expenses are from 2008.Ownership costs for most crops (except sugarbeets & potatoes) are low because all harvesting is done by a custom operator.

12/13/2008

Tab A-3 Gross Margin - 2009 University of Idaho 
Sensitivity analysis: Eastern Idaho

RUR 

Sugarbeets

Potatoes: Inweight Potatoes: Storage Feed Barley Malting Barley Wheat: HRS Whea

SWS 

Yield 33 345 345 63 58 105 110 

Price $45 $8.00 $9.00 $6.00 $12.50 $6.00 $5.2

Gross Margin $1,485 $2,760 $3,105 $378 $725 $630 $57

Op. Expense + Mach. Own. Costs $1,109 $1,884 $2,103 $429 $418 $465 $43

Net Return to Land, Irrigation System, 

Overhead and Mngt. $376

Price Required to Equal Sugarbeet Net

Return to Land, etc., Given the Yield, $6.55 $7.19 $12.78 $13.69 $8.01 $7.3

Price and Expenses Shown Above.Analysis is based on 2008 operating and machinery ownership expenses and the crop yields shown above. Note: The yield, price and expense values shown above are linked to Gross Margin - 2009 Sheet. Do not make changes directly to Make changes in the Prices sheet or the individual crop budget sheets, which will change the Gross Margin - 2009 sheet and this on

12/13/2008

Table A-4. Prices for alternative commodities needed to equal the 2009 projected net return to sugarbeets of $376 per acre for Easton $45 per ton sugarbeets.

Tab A-4 Breakeven University of Idaho 
$45 $44 $43 $42 $41 $40

Crops

Potatoes: In-weight $6.55 $6.46 $6.36 $6.26 $6.17 $6.07

Potatoes: Storage $7.19 $7.09 $6.99 $6.90 $6.80 $6.71

Feed Barley $12.78 $12.26 $11.73 $11.21 $10.69 $10.16

Malting Barley $13.69 $13.12 $12.55 $11.98 $11.41 $10.84

Wheat: HRS $8.01 $7.70 $7.38 $7.07 $6.76 $6.44

Wheat: SWS $7.37 $7.07 $6.77 $6.47 $6.17 $5.87

Wheat: SWW $6.84 $6.56 $6.29 $6.01 $5.74 $5.46

Alfalfa Hay $134 $129 $123 $118 $112 $107

Note: values used in this calculation are from Table 4. The only price that varies is that of sugarbeets.

If prices are below the values shown, the grower is better off growing sugarbeets at the price specified.

These values are not linked to other sheets and will not automatically recalculate.

12/14/2008

Sugarbeet Price

Table A-5. Prices required to achieve the same net return to land, irrigation system, overhead and 

management as sugarbeets at different sugarbeet prices. Eastern Idaho.

Table A-5 Equivalent University of Idaho AERS Dept

10
Quantity Price or Value or

Item Per Acre Unit Cost Cost/Acre

Gross Returns

RUR Sugarbeets 33 ton $45.00 $1,485.00

Operating Inputs

Seed: $88.46

RUR Beet Seed: Raw 0.45 unit $100.00 $45.00

Technology Fee 0.41 unit $106.00 $43.46

Fertilizer: $216.40

Nitrogen - Preplant 20 lb $0.82 $16.40

P2O5 100 lb $0.70 $70.00

K2O 40 lb $0.50 $20.00

Micronutrients 1 ac $8.00 $8.00

Nitrogen - Liquid 120 lb $0.85 $102.00

$0.00

$0.00

Pesticides: $61.96

Counter 15G L-N-L 14 lb $2.15 $30.10

Roundup Original Max 54 oz $0.55 $29.70

AMS 2.4 lb $0.90 $2.16

$0.00

$0.00

$0.00

Custom & Consultants: $22.50

Custom Fertilize 1 ac $6.50 $6.50

Consultant 1 ac $16.00 $16.00

$0.00

$0.00

$0.00

Irrigation: $86.86

Water Assessment 1 ac $23.00 $23.00

Irrigation Power - CP* 31 acin $1.48 $45.88

Irrigation Repairs - CP* 31 acin $0.58 $17.98

Machinery: $176.82

Fuel - Gas 3.19 gal $3.50 $11.17

Fuel - Diesel 28.55 gal $3.70 $105.64

Lube 1 ac $17.52 $17.52

Machinery Repairs 1 ac $42.50 $42.50

Labor: $115.96

Labor (machine) 6.15 hrs $14.95 $91.94

Labor (irrigation - cp) 1.8 hrs $10.20 $18.36

Labor (other) 0.65 hrs $8.70 $5.66

Other: $119.55

Hauling Charge 33 cwt $2.35 $77.55

Crop Insurance 1 ac $42.00 $42.00

$0.00

Operating Interest @ 7.0% $29.93

Total Operating Costs $918.44

Operating Costs per Unit $27.83

Net Returns Above Operating Expenses $566.56

Appendix A-1. 2008 Irrigated Roundup Ready Sugarbeets for Eastern Idaho: Power 

and Bingham Counties.

EI-Su-08 University of Idaho AERS Dept

11
Quantity Price or Value or

Item Per Acre Unit Cost Cost/Acre

Appendix A-1. 2008 Irrigated Roundup Ready Sugarbeets for Eastern Idaho: Power 

and Bingham Counties.

Ownership Costs:

$4.69

$185.78

$65.00

$275.00

$22.00

$60.00

Total Ownership Costs $612.47

Ownership Costs per Unit $18.56

Total Costs per Acre $1,530.91

Total Cost per Unit $46.39

Returns to Risk -$45.91

Notes:

Breakeven Analysis: - Base +

10% 10%

Yield

Price 29.7 33 36.3

Operating Cost Breakeven $30.92 $27.83 $25.30

Ownership Cost Breakeven $20.62 $18.56 $16.87

Total Cost Breakeven $51.55 $46.39 $42.17

Price

Yield $40.50 $45.00 $49.50

Operating Cost Breakeven 22.7 20.4 18.6

Ownership Cost Breakeven 15.1 13.6 12.4

Total Cost Breakeven 37.8 34.0 30.9

Management Fee

* Center Pivot. **Includes irrigation system ownership costs.

Co-op Stock (Beet share rental value)

Land **

Overhead

Tractors & Equipment Insurance

Tractors & Equipment Depreciation & Interest

Irrigation Equipment Depreciation & Interest

EI-Su-08 University of Idaho AERS Dept

12
Table B-1. Southcentral Idaho crop prices used in the analysis. 12/12/2008

2008

Projected 

2009

Sugarbeets $40.00 $45.00

Potatoes: In-weight $5.95 $8.00

Potatoes: Storage $6.75 $9.00

Dry Beans $36.00 $30.00

Corn Silage $38.00 $36.00

Field Corn $6.50 $5.50

Feed Barley $10.00 $6.50

Malting Barley $16.00 $12.50

Wheat: Hard Red Spring $9.50 $6.00

Wheat: Soft White $8.00 $5.25

Alfalfa Hay $159.00 $149.00

Potato prices are pre-seasn contract prices for process potatoes, not fresh market.

Note: Alfalfa hay is a blended price, based on 30% feeder quality and 70% dairy quality.

2008 2009

Dairy Quality $180 $170

Feeder Quality $110 $100

$159 $149

Prices shown here are linked to the gross margin and breakeven sheets, but not to the individual

crop budgets. Prices in the crop budgets can be changed without impacting the crop comparisons.

Tab B-1 Prices University of Idaho AERS Dept

13
Table B-2. Southcentral Idaho: Magic Valley. Gross margins summary and return to land, irrigation system, overhead & management by crop.

Crop prices are for 2008.

RUR 

Sugarbeets

Potatoes: Inweight Potatoes: Storage Dry Beans Corn Silage Field Corn Feed Barley Malting Barley Wheat: HRS 

ton cwt cwt cwt ton bu cwt cwt bu 

Yield 32 400 400 23 28 165 65 60 105 

Price $40.00 $5.95 $6.75 $36.00 $38.00 $6.50 $10.00 $16.00 $9.50 Gross Revenue $1,280 $2,380 $2,700 $828 $1,064 $1,073 $650 $960 $998 Total Operating Expenses $946 $1,874 $2,005 $476 $798 $634 $435 $442 $467 Gross Margin $334 $506 $695 $352 $266 $438 $215 $518 $530 Equipment Ownership Costs $183 $231 $356 $68 $49 $50 $32 $36 $36 

Net: Return to Land, Irrigation System, Overhead & Management $151 $275 $339 $284 $217 $389 $183 $482 $494 Note: Values are linked to other spreadsheets in this file. Changes must be made to the individual spreadsheets, not to this summary sheet, which is locked.Commodity prices should be changed in the prices sheet (tab) and expenses should be changed in the individual crop worksheets.Operating and equipment ownership expenses are from 2008.Ownership costs for most crops (except sugarbeets & potatoes) are low because all harvesting is done by a custom operator.

12/13/2008

Tab B-2 Gross Margin - 2008 University of Idaho 
Table B-3. Southcentral Idaho: Magic Valley. Gross margins summary and return to land, irrigation system, overhead & management by crop.

Crop prices are for 2009.

RUR 

Sugarbeets

Potatoes: Inweight Potatoes: Storage Dry Beans Corn Silage Field Corn Feed Barley Malting Barley Wheat: HRS W

ton cwt cwt cwt ton bu cwt cwt bu 

Yield 32 400 400 23 28 165 65 60 105 

Price $45.00 $8.00 $9.00 $30.00 $36.00 $5.50 $6.50 $12.50 $6.00 

Gross Revenue $1,440 $3,200 $3,600 $690 $1,008 $908 $423 $750 $630 Total Operating Expenses $946 $1,874 $2,005 $476 $798 $634 $435 $442 $467 

Gross Margin $494 $1,326 $1,595 $214 $210 $273 -$12 $308 $163 Equipment Ownership Costs $183 $231 $356 $68 $49 $50 $32 $36 $36 Net: Return to Land, Irrigation System, Overhead & Management $311 $1,095 $1,239 $146 $161 $224 -$45 $272 $126 Note: Values are linked to other spreadsheets in this file. Changes must be made to the individual spreadsheets, not to this summary sheet, which is locked.Commodity prices should be changed in the prices sheet (tab) and expenses should be changed in the individual crop worksheets.Operating and equipment ownership expenses are from 2008.Ownership costs for most crops (except sugarbeets & potatoes) are low because all harvesting is done by a custom operator.

12/13/2008

Tab B-3 Gross Margin - 2009 University of Idaho 
Sensitivity analysis: Southcentral Idaho

RUR 

Sugarbeets

Potatoes: Inweight Potatoes: Storage Dry Beans Corn Silage Field Corn Feed Barley Malting Barley Wheat: HRS 

Yield 32 400 400 23 28 165 65 60 105 

Price $45 $8.00 $9.00 $30.00 $36.00 $5.50 $6.50 $12.50 $6.00 

Gross Margin $1,440 $3,200 $3,600 $690 $1,008 $908 $423 $750 $630 

Op Expense + Mach. Own. Costs $1,129 $2,105 $2,361 $544 $847 $684 $467 $478 $504 

Net Return to Land, Irrigation System, 

Overhead and Mngt. $311

Price Required to Equal Sugarbeet Net

Return to Land, etc., Given the Yield, $6.04 $6.68 $37.17 $41.34 $6.03 $11.97 $13.15 $7.76 

Price and Expenses Shown Above.Analysis is based on 2008 operating and machinery ownership expenses and the crop yields shown above.Note: The yield, price and expense values shown above are linked to Gross Margin - 2009 Sheet. Do not make changes directly to this sheet.Make changes in the Prices sheet or the individual crop budget sheets, which will change the Gross Margin - 2009 sheet and this one as well.

12/13/2008

Table B-4. Prices for alternative commodities needed to equal the 2009 projected net to sugarbeets of $311 per acre for Southcentral Idaho, based on $45 pe

Tab B-4 Breakeven University of Idaho 
$45 $44 $43 $42 $41 $40

Crops

Potatoes: In-weight $6.04 $5.96 $5.88 $5.80 $5.72 $5.64

Potatoes: Storage $6.68 $6.60 $6.52 $6.44 $6.36 $6.28

Dry Beans $37.27 $35.77 $34.38 $32.99 $31.60 $30.21

Corn Silage $41.34 $40.20 $39.05 $37.91 $36.77 $35.62

Field Corn $6.03 $5.83 $5.64 $5.45 $5.25 $5.06

Feed Barley $11.97 $11.48 $10.99 $10.49 $10.00 $9.51

Malting Barley $13.15 $12.62 $12.09 $11.55 $11.02 $10.49

Wheat: HRS $7.76 $7.45 $7.15 $6.84 $6.54 $6.23

Wheat: SWS $6.87 $6.59 $6.31 $6.03 $5.75 $5.48

Wheat: SWW $6.50 $6.25 $5.99 $5.74 $5.48 $5.22

Alfalfa Hay $124 $119 $115 $110 $105 $101

Note: values used in this calculation are from Table 4. The only price that varies is that of sugarbeets.

If prices are below the values shown, the grower is better off growing sugarbeets at the price specified.

These values are not linked to other sheets and will not automatically recalculate.

12/14/2008

Table B-5. Prices required to achieve the same net return to land, irrigation system, overhead and 

management as sugarbeets at different sugarbeet prices. Southcentral Idaho.

Sugarbeet Price

Tab B-5 Equivalent University of Idaho AERS Dept

17
Quantity Price or Value or

Item Per Acre Unit Cost Cost/Acre

Gross Returns

RUR Sugarbeets 32 ton $40.00 $1,280.00

Operating Inputs

Seed: $100.88

RUR Beet Seed: Raw 0.5 unit $100.00 $50.00

Technology Fee 0.48 unit $106.00 $50.88

Fertilizer: $235.00

Liquid Nitrogen 22 lb $0.85 $18.70

Liquid P2O5 75 lb $0.94 $70.50

Dry Nitrogen 110 lb $0.82 $90.20

K2O 60 lb $0.46 $27.60

Sulfur 50 lb $0.40 $20.00

Micronutrients 1 ac $8.00 $8.00

Pesticides: $79.56

Temik 15G L-N-L 14 lb $3.60 $50.40

Roundup Original Max 54.0 oz $0.50 $27.00

AMS 2.40 lb $0.90 $2.16

$0.00

$0.00

Custom & Consultants: $23.50

Custom Fertilize 1 ac $7.50 $7.50

Consultant 1 ac $16.00 $16.00

$0.00

$0.00

$0.00

Irrigation: $106.18

Water Assessment 1 ac $38.20 $38.20

Irrigation Power-CP 33 acin $1.48 $48.84

Irrigation Repairs-CP 33 acin $0.58 $19.14

Machinery: $179.67

Fuel - Gas 2.92 gal $3.60 $10.51

Fuel - Diesel 28.46 gal $3.75 $106.73

Lube 1 ac $17.58 $17.58

Machinery Repairs 1 ac $44.85 $44.85

Labor: $118.44

Labor (machine) 6.04 hrs $14.95 $90.30

Labor (irrigation - cp) 1.65 hrs $10.20 $16.83

Labor (other) 1.3 hrs $8.70 $11.31

Other: $72.60

Crop Insurance 1 ac $39.00 $39.00

Hauling Charge 32 ton $1.05 $33.60

Storage: $0.00

Operating Costs $0.00

Repairs $0.00

Operating Interest @ 7.0% $30.10

Total Operating Costs $945.92

Operating Costs per Unit $29.56

Net Returns Above Operating Expenses $334.08

Appendix B-1. 2008 Roundup Ready Sugarbeets, Southcentral Idaho.

SCI-Su-08 University of Idaho AERS Dept

18
Quantity Price or Value or

Item Per Acre Unit Cost Cost/Acre

Appendix B-1. 2008 Roundup Ready Sugarbeets, Southcentral Idaho.

Ownership Costs:

$4.61

$178.57

$300.00

$25.00

$22.00

$60.00

Total Ownership Costs $590.18

Ownership Costs per Unit $18.44

Total Costs per Acre $1,536.11

Total Cost per Unit $48.00

Returns to Risk -$256.11

Notes:

Breakeven Analysis: - Base +

5% 10%

Yield

Price 30.4 32 35.2

Operating Cost Breakeven $31.12 $29.56 $26.87

Ownership Cost Breakeven $19.41 $18.44 $16.77

Total Cost Breakeven $50.53 $48.00 $43.64

Price

Yield $38.00 $40.00 $44.00

Operating Cost Breakeven 24.9 23.6 21.5

Ownership Cost Breakeven 15.5 14.8 13.4

Total Cost Breakeven 40.4 38.4 34.9

Tractors & Equipment Insurance

Tractors & Equipment Depreciation & Interest

Irrigation Equipment Depreciation & Interest

Land *

Co-op Stock

Overhead

Management Fee

* Includes irrigation system ownership costs.

SCI-Su-08 University of Idaho AERS Dept

19
Table C-1. Southwestern Idaho crop prices used in the analysis. 12/16/2008

2008

Projected 

2009

Sugarbeets $40.00 $45.00

Potatoes: In-weight $5.95 $8.00

Potatoes: Storage $6.75 $9.00

Dry Beans $36.00 $30.00

Corn Silage $38.00 $36.00

Field Corn $6.50 $5.50

Feed Barley $10.00 $6.50

Malting Barley $16.00 $12.50

Wheat: Hard Red Spring $9.50 $6.00

Wheat: Soft White $8.00 $5.25

Alfalfa Hay $162.00 $152.00

Potato prices are pre-seasn contract prices for process potatoes, not fresh market.

Note: Alfalfa hay is a blended price, based on 30% feeder quality and 70% dairy quality.

2008 2009

Dairy Quality $180 $170

Feeder Quality $120 $110

$162 $152

Prices shown here are linked to the gross margin and breakeven sheets, but not to the individual

crop budgets. Prices in the crop budgets can be changed without impacting the crop comparisons.

Tab C-1 Prices University of Idaho AERS Dept

20
Table C-2. Southwestern Idaho: Treasure Valley. Gross margins summary and return to land, irrigation system, overhead & management by crop.

Crop prices are for 2008.

RUR 

Sugarbeets

Potatoes: InWeight Potatoes: Storage Dry Beans Corn Silage Field Corn Feed Barley Wheat: SWS Wheat: SWW A

ton cwt cwt cwt ton bu cwt bu bu 

Yield 38 505 505 22 30 180 62 110 125 

Price $40.00 $5.95 $6.75 $36.00 $38.00 $6.50 $10.00 $8.00 $8.00 $Gross Revenue $1,520 $3,005 $3,409 $792 $1,140 $1,170 $620 $880 $1,000 $Total Operating Expenses $1,324 $2,398 $2,566 $388 $908 $734 $447 $451 $458 $

Gross Margin $196 $606 $843 $404 $232 $436 $173 $429 $542 $Equipment Ownership Costs $218 $355 $515 $93 $75 $77 $57 $56 $53 

Net: Return to Land, Irrigation System, Overhead & Management -$22 $251 $328 $311 $157 $359 $116 $373 $489 $Note: Values are linked to other spreadsheets in this file. Changes must be made to the individual spreadsheets, not to this summary sheet, which is locked.Commodity prices should be changed in the prices sheet (tab) and expenses should be changed in the individual crop worksheets.Operating and equipment ownership expenses are from 2008.Ownership costs for most crops (except sugarbeets & potatoes) are low because all harvesting is done by a custom operator.

12/30/2008

Tab C-2 Gross Margin - 2008 University of Idaho 
Table C-3. Southwestern Idaho: Treasure Valley. Gross margins summary and return to land, irrigation system, overhead & management by crop.

Crop prices are for 2009.

RUR 

Sugarbeets

Potatoes: InWeight Potatoes: Storage Dry Beans Corn Silage Field Corn Feed Barley Wheat: SWS Wheat: SWW A

ton cwt cwt cwt ton bu cwt bu bu 

Yield 38 505 505 22 30 180 62 110 125 

Price $45.00 $8.00 $9.00 $30.00 $36.00 $5.50 $6.50 $5.25 $5.25 $Gross Revenue $1,710 $4,040 $4,545 $660 $1,080 $990 $403 $578 $656 $Total Operating Expenses $1,324 $2,398 $2,566 $388 $908 $734 $447 $451 $458 $

Gross Margin $386 $1,642 $1,979 $272 $172 $256 -$44 $126 $198 $Equipment Ownership Costs $218 $355 $515 $93 $75 $77 $57 $56 $53 

Net: Return to Land, Irrigation System, Overhead & Management $168 $1,286 $1,464 $179 $97 $179 -$101 $71 $145 $

Note: Values are linked to other spreadsheets in this file. Changes must be made to the individual spreadsheets, not to this summary sheet, which is locked.Commodity prices should be changed in the prices sheet (tab) and expenses should be changed in the individual crop worksheets.Operating and equipment ownership expenses are from 2008.Ownership costs for most crops (except sugarbeets & potatoes) are low because all harvesting is done by a custom operator.

12/30/2008

Tab C-3 Gross Margin - 2009 University of Idaho 
Sensitivity analysis: Southcentral Idaho

RUR 

Sugarbeets

Potatoes: InWeight Potatoes: Storage Dry Beans Corn Silage Field Corn Feed Barley Wheat: SWS Wheat: SWW A

Yield 38 505 505 22 30 180 62 110 125 

Price $45 $8.00 $9.00 $30.00 $36.00 $5.50 $6.50 $5.25 $5.25 

Gross Margin $1,710 $4,040 $4,545 $660 $1,080 $990 $403 $578 $656 

Op Expense + Mach. Own. Costs $1,542 $2,754 $3,081 $481 $983 $811 $504 $507 $511 

Net Return to Land, Irrigation System, 

Overhead and Mngt. $168

Price Required to Equal Sugarbeet Net

Return to Land, etc., Given the Yield, $5.78 $6.43 $29.51 $38.36 $5.44 $10.83 $6.13 $5.43 

Price and Expenses Shown Above.Analysis is based on 2008 operating and machinery ownership expenses and the crop yields shown above.Note: The yield, price and expense values shown above are linked to Gross Margin - 2009 Sheet. Do not make changes directly to this sheet.Make changes in the Prices sheet or the individual crop budget sheets, which will change the Gross Margin - 2009 sheet and this one as well.

12/30/2008

Table C-4. Prices for alternative commodities needed to equal the 2009 projected net to sugarbeets of $323 per acre for Southwesterm Idaho, based on $45 sugarbeets.

Tab C-4 Breakeven University of Idaho 
$45 $44 $43 $42 $41 $40

Crops

Potatoes: In-weight $6.04 $5.96 $5.88 $5.80 $5.72 $5.64

Potatoes: Storage $6.68 $6.60 $6.52 $6.44 $6.36 $6.28

Dry Beans $37.27 $35.77 $34.38 $32.99 $31.60 $30.21

Corn Silage $41.34 $40.20 $39.05 $37.91 $36.77 $35.62

Field Corn $6.03 $5.83 $5.64 $5.45 $5.25 $5.06

Feed Barley $11.97 $11.48 $10.99 $10.49 $10.00 $9.51

Wheat: SWS $6.87 $6.59 $6.31 $6.03 $5.75 $5.48

Wheat: SWW $6.50 $6.25 $5.99 $5.74 $5.48 $5.22

Alfalfa Hay $124 $119 $115 $110 $105 $101

Note: values used in this calculation are from Table 4. The only price that varies is that of sugarbeets.

If prices are below the values shown, the grower is better off growing sugarbeets at the price specified.

These values are not linked to other sheets and will not automatically recalculate.

12/30/2008

Table C-5. Prices required to achieve the same net return to land, irrigation system, overhead and 

management as sugarbeets at different sugarbeet prices. Southwestern Idaho.

Sugarbeet Price

Tab C-5 Equivalent University of Idaho AERS Dept

24
Quantity Price or Value or

Item Per Acre Unit Cost Cost/Acre

Gross Returns

RUR Sugarbeets 38 ton $40.00 $1,520.00

Operating Inputs

Seed: $90.58

RUR Beet Seed: Raw 0.45 unit $100.00 $45.00

Technology Fee 0.43 unit $106.00 $45.58

Fertilizer: $217.90

Dry Nitrogen 100 lb $0.82 $82.00

Liquid Nitrogen 35 lb $0.84 $29.40

Dry P2O5 50 lb $0.83 $41.50

K2O 100 lb $0.57 $57.00

Micronutrients 1 ac $8.00 $8.00

$0.00

Pesticides: $381.11

Telone II 20 gal $11.95 $239.00

Temik 15G 15 lb $3.45 $51.75

Roundup Original Max 54 oz $0.52 $28.08

AMS 2.40 lb $0.90 $2.16

Eptam 7EC 3.70 pints $4.45 $16.47

Treflan 4HFP 1 pints $2.75 $2.75

Tilt 4 oz $2.35 $9.40

Gem 25WG 6 oz $5.25 $31.50

$0.00

Custom & Consultants: $103.00

Custom Fertilize 1 ac $8.50 $8.50

Custom Fumigate - Deep 1 ac $36.00 $36.00

Consultant 1 ac $16.00 $16.00

Custom Air Spray - 5G 1 ac $8.50 $8.50

Custom Sidedress 2 ac $17.00 $34.00

Irrigation: $43.35

Water Assessment 1 ac $40.60 $40.60

Irrigation Repairs - CD* 1 ac $2.75 $2.75

$0.00

Machinery: $203.84

Fuel - Gas 2.5 gal $3.65 $9.13

Fuel - Diesel 30.92 gal $3.80 $117.50

Lube 1 ac $18.99 $18.99

Machinery Repairs 1 ac $58.23 $58.23

Labor: $196.25

Labor (machine) 8.55 hr $14.95 $127.82

Labor (irrigation - cd) 5.6 hr $10.20 $57.12

Labor (other) 1.3 hr $8.70 $11.31

Storage: $0.00

$0.00

$0.00

Other: $24.00

Crop Insurance 1 ac $24.00 $24.00

$0.00

Operating Interest @ 7.0% $64.29

Total Operating Costs $1,324.32

Operating Costs per Unit $34.85

Net Returns Above Operating Expenses $195.68

Appendix C-1. 2008 Irrigated Sugarbeets, Southwestern Idaho.

SWI-Su-08 University of Idaho

25
Quantity Price or Value or

Item Per Acre Unit Cost Cost/Acre

Appendix C-1. 2008 Irrigated Sugarbeets, Southwestern Idaho.

Ownership Costs:

$5.39

$212.46

$250.00

$12.50

$30.00

$65.00

Total Ownership Costs $575.35

Ownership Costs per Unit $15.14

Total Costs per Acre $1,899.67

Total Cost per Unit $49.99

Returns to Risk -$379.67

Notes:

Breakeven Analysis: - Base +

10% 10%

Yield

Price 34.2 38 41.8

Operating Cost Breakeven $38.72 $34.85 $31.68

Ownership Cost Breakeven $16.82 $15.14 $13.76

Total Cost Breakeven $55.55 $49.99 $45.45

Price

Yield $36.00 $40.00 $44.00

Operating Cost Breakeven 36.8 33.1 30.1

Ownership Cost Breakeven 16.0 14.4 13.1

Total Cost Breakeven 52.8 47.5 43.2

Tractors & Equipment Insurance

Tractors & Equipment Depreciation & Interest

Irrigation Equipment Depreciation & Interest

Land **

Co-op Stock

Overhead

Management Fee

* Includes irrigation system ownership costs.

SWI-Su-08 University of Idaho

26