Projections for Planning Purposes Only -- Not to be Used without Updating
2015 Estimated Costs and Returns per Acre
Dryland Bermudagrass Hay - 100 Acres
West Central Extension District - 7
Crop Acres
100
REVENUE
Hay, 1200# BRB
Total Revenue
Quantity
3.33
Units
Ton
$/Unit
$112.00
Total
$372.96
$372.96
VARIABLE COSTS
Production Costs
Custom
Swath, Rake and Bale
Soil Test-Dryland
Fertilizer
Nitrogen Dry
Phosphate
Potassium
Nitrogen N32
Herbicide
2-4D Amine 4
Insecticide
Dimilin 2L
Miscellaneous
Rainfall Insurance
Gasoline
Pickup/General Use Equipment
Repairs & Maintenance
Pickup/General Use Equipment
Interest on Credit Line
Total Variable Costs
Planned Returns Above Variable Costs:
Breakeven Price to Cover Variable Costs
Quantity
Units
$/Unit
Total
FIXED COSTS
Machinery Depreciation
Pickup/General Use Equipment
Equipment Investment
Pickup/General Use Equipment
Allocated Establishment Cost
Rent-Dryland Crop
Total Fixed Costs
Total Specified Costs
Quantity
3.3
1
Bale
Each
$25.20
$0.25
$83.16
$0.25
$8,316.00
$25.00
51
12
27
64
Pounds
Pounds
Pounds
Pounds
$0.55
$0.42
$0.61
$0.55
$28.27
$5.00
$16.36
$35.00
$2,826.93
$500.04
$1,635.66
$3,500.16
4
Pint
$1.94
$7.75
$775.00
Ounce
$2.02
$3.04
$303.51
1
Acre
$23.26
$23.26
$2,326.00
1
Acre
$2.25
$2.25
$225.00
1
Acre
$0.75
3.75%
$0.75
$2.18
$207.27
$165.69
$75.25
$218.06
$20,726.61
$16,569.39
1.5
$62.24
Units
1
$17.50
1
1
Ton
$/Unit
Total
Enterprise
Total
Acre
$1.58
$1.58
$157.50
Dollars
Acre
Acre
3.75%
$69.00
$35.00
$0.66
$69.00
$35.00
$106.23
$313.50
$65.63
$6,900.00
$3,500.00
$10,623.13
$31,349.73
$59.46
$5,946.27
Returns Above Specified Costs
Breakeven Price to Cover Total Costs
Enterprise
Total
$37,296.00
$37,296.00
Enterprise
Total
$94.14
Ton
Example Breakeven Prices
Example
Yield
Percent
75%
90%
100%
110%
125%
Example
Yield
Ton
2.50
3.00
3.33
3.66
4.16
Price Needed to Cover
Price Needed to Cover
Example Variable Costs Example Total Costs
Own/Rent ShareTenant Own/Rent ShareTenant
$82.99
$82.99
$125.52
$125.52
$69.16
$69.16
$104.60
$104.60
$62.24
$62.24
$94.14
$94.14
$56.58
$56.58
$85.58
$85.58
$49.79
$49.79
$75.31
$75.31
Landlord
$0.00
$0.00
$0.00
$0.00
$0.00
Developed by Bill Thompson, Associate Professor and Extension Economist, Texas A&M AgriLife Extension Service.
Information presented is prepared solely as a general guide and not intended to recognize or predict the costs
and returns from any one operation. Brand names are mentioned only as examples and imply no endorsement.