These budgets contain a charge for crop insurance, but have no offsetting revenue. Thus, net return is understated by the amount of the MTP received. This number is used to calculate the repair cost per acre. Implements with greater or lesser use will have smaller or greater costs. Comparison with 1998 Spring Budgets Cost changes are mixed this year, but tending lower.
Many chemicals are lower priced.
Volume discounts for chemicals and seed were not considered, but can be substantial. The astute farm operator, therefore, should shop around and try to bargain for the most economical package. Repair costs for machinery are mixed, but tending slightly higher due to inflation and technical improvements. Because these budgets are intended for planning guides only, the user should adjust costs, yields and expected selling prices. Most budgets are highly sensitive to sale price and yield.