Crop cost template
Using a crop cost template can help producers evaluate how changes in crop prices can affect their profitability.
Cost of production worksheets can be a helpful management tool for farm producers when evaluating the impact of how changes in input cost and market prices change their bottom line. Huge shifts in commodity prices and equal changes in the cost of various production inputs can quickly change a farm’s profitability on an individual crop or the farm’s profitability as a whole. Using a tool like the cost of production template can make the process of evaluating a series of “What if this happens?” scenarios a much easier and quicker process. An example template can be found at 2011 Crop Cost Template.
You will want to provide your farm’s actual or projected inputs as well as the production and market prices that are real for your situation. Taking time to develop a production cost budget that fits your farm’s actual costs and production can help you in developing a marketing and crop mix that provides your farm with its best economic return.
In some cases, farms are sharing some of their actual and projected enterprise budgets with landlords to help them establish reasonable land rental values that reflect the lands production capacity. Having some cost and return budgets may help with putting a win-win rental rate in place that provides a reasonable return for both the producer and landlord.