Some costs which are probably irrelevant at this point are machinery depreciation and interest, and land ownership and rental expenses. If an alternative crop involves a change in machinery operations from what you are used to, you may need to estimate operating costs or negotiate custom rates. If so, publications which may be of assistance are the latest versions of the Minnesota Farm Machinery Economic Cost Estimates and Minnesota Farm Custom Rate Survey. The decision to switch crops may be easier to analyze if you set up a computer spreadsheet which starts with the relevant costs for the crop, and then calculates the return per acre over a range of yields and prices. Some average costs and yields per acre for common Minnesota crops, from the 2000 annual summary of the MnSCU and Farm Business program and Minnesota Farm Business Associations, are shown below.
Land rent is included in direct expenses, so direct expenses tend to be higher on cash rented land.
At these prices, it would still pay to plant in the example if you expect a yield of 100 bushels or more or a soybean yield of 30 bushels or more. We maintain a page with information about this web server. The University of Minnesota Extension Service is an equal opportunity educator and employer. All rights reserved.