How we calculate
Cost per acre = total costs ÷ acres. Revenue = yield × price × acres. Break-even yield = cost per acre ÷ price per bushel.
Example
500 acres with $225,000 in costs is $450 per acre. At 50 bu/acre and $11/bu, revenue is $275,000 and profit $50,000 ($100/acre). Break-even is about 40.9 bu/acre, or $9.00/bu.
What to include
- Seed and seed treatment.
- Fertilizer and lime.
- Herbicides, fungicides and insecticides.
- Machinery, fuel, repairs and hauling.
- Labor, land rent, crop insurance and interest.
Frequently asked questions
Should I include land rent?
Yes if you pay it. On owned land, many farmers include the rent they could earn, to compare fairly.
What about machinery depreciation?
For full cost, include a share of machinery value per season. See the depreciation calculator.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.