Projections for Planning Purposes Only -- Not to be Used without Updating
2016 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
$105.00
Cash
Total
$349.65
$349.65
VARIABLE COSTS
Production Costs
Custom
Soil Test-Dryland
Swath, Rake and Bale
Fertilizer
Phosphate
Potassium
Nitrogen N32
Nitrogen Dry-Urea
Herbicide
2-4D Amine 4
Insecticide
Dimilin 2L
Miscellaneous
Rainfall Insurance
Machinery Labor
Tractors/Self-Propelled
Diesel Fuel
Tractors/Self-Propelled
Gasoline
Pickup/General Use Equipment
Repairs & Maintenance
Pickup/General Use Equipment
Tractors/Self-Propelled
Implements
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
Tractors/Self-Propelled
Implements
Equipment Investment
Pickup/General Use Equipment
Tractors/Self-Propelled
Implements
Allocated Establishment Cost
Rent-Dryland Crop
Total Fixed Costs
Total Specified Costs
Quantity
Enterprise
Total
$34,965.00
$34,965.00
Enterprise
Total
1
3.3
Each
Bale
$0.25
$25.20
$0.25
$83.16
$25.00
$8,316.00
12
27
64
51
Pounds
Pounds
Pounds
Pounds
$0.37
$0.56
$0.42
$0.42
$4.40
$15.06
$27.13
$21.62
$440.00
$1,505.77
$2,713.04
$2,161.96
4
Pint
$1.81
$7.25
$725.00
Ounce
$2.02
$3.04
$303.51
1
Acre
$23.26
$23.26
$2,326.00
0.29
Hour
$12.00
$3.48
$348.00
0.82
Gallon
$1.50
$1.23
$123.00
1
Acre
$2.00
$2.00
$200.00
1
1
1
Acre
Acre
Acre
$0.75
$0.97
$0.48
6.50%
$0.75
$0.97
$0.48
$3.48
$197.55
$152.10
$75.25
$96.75
$47.90
$348.03
$19,755.21
$15,209.79
1.5
$59.32
Units
1
1
1
$9.63
$24.47
$3.87
1
1
Ton
$/Unit
Total
Enterprise
Total
Acre
Acre
Acre
$1.58
$3.28
$0.37
$1.58
$3.28
$0.37
$157.50
$328.14
$36.85
Dollars
Dollars
Dollars
Acre
Acre
6.50%
6.50%
6.50%
$69.00
$35.00
$0.63
$1.59
$0.25
$69.00
$35.00
$111.69
$309.24
$62.56
$159.07
$25.15
$6,900.00
$3,500.00
$11,169.27
$30,924.48
$40.41
$4,040.52
Returns Above Specified Costs
Breakeven Price to Cover Total Costs
$92.87
Ton
Example Breakeven Prices
Example
Yield
Percent
75%
90%
100%
110%
125%
Example
Yield
Ton
0.00
0.00
0.00
0.00
0.00
Price Needed to Cover
Your Variable Costs
$79.10
$65.92
$59.32
$53.93
$47.46
Price Needed to Cover
Your Total Costs
$123.82
$103.18
$92.87
$84.42
$74.29
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.