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Table 1: Costs and Returns for Corn for Grain, Per Acre

Conventional Production Practices, Northeastern United States, 1996

ITEM UNIT PRICE QUANTITY TOTAL
         
Receipts        
Corn (Grain) bushel $ 3.05 125 $ 381.25
         
Variable Costs        
Custom        
Apply Calcium Lime ton $ 27.65 0.5 $ 13.83
Soil Test acre $ 1.00 1 $ 1.00
Dryinga % moisture reduction $ 0.05 125 $ 37.50
Fertilizer        
N pound $ 0.32 150 $ 48.00
P pound $ 0.32 90 $ 28.80
K pound $ 0.14 100 $ 14.00
Herbicides        
Atrazine 4L gallon $ 12.00 0.3 $ 3.60
Banvel pint $ 10.04 0.2 $ 2.01
Dual 8E gallon $ 65.00 0.19 $ 12.35
Insecticides        
Counter 20 CR pound $ 2.60 6.7 $ 17.42
Seed      
Corn Seed thousand $ 1.05 25 $ 26.25
Labor        
Operator hour $ 14.48 1.8 $ 26.06
Diesel Fuel        
Tractors gallon $ 0.969 7.88 $ 7.64
Self-Propelled Eq. gallon $ 0.969 1.6 $ 1.55
Repair & Maintenance        
Tractors acre $ 3.41 1 $ 3.41
Self-Propelled Eq. acre $ 8.00 1 $ 8.00
Implements acre $ 7.52 1 $ 7.52
Sub-Total       $ 258.94
Interest on Operating Capital b acre 10% 1 $ 7.51
Total Variable Costs acre   1 $ 266.45
Returns Above Variable Costs acre   1 $ 114.80
Fixed Costs        
Tractors acre $ 10.47 1 $ 10.47
Self Propelled Eq. acre $ 13.20 1 $ 13.20
Implements acre $ 17.11 1 $ 17.11
Land Charge   $ 50.00 1 $ 50.00
Total Fixed Costs       $ 90.78
Total Fixed & Variable Costs acre   1 $ 357.23
Management Fees b acre 7% 1 $ 21.51
Total Costs acre   1 $ 378.74
Net Returns acre   1 $ 2.51

a Drying costs estimated as follows: $.05 x 6% points of moisture reduction x 125 bu.
b See text for calculation assumptions.

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