Corn Projected To Be Most Profitable for Northwest ND

The farm management team at North Dakota State University has released its projected crop budgets for 2013. The budgets for each crop are in a pamphlet form which includes spring wheat, durum, malting barley, corn grain, oil sunflowers, canola, flax, field peas, oats, lentils, yellow mustard, safflower, buckwheat, millet, chickpeas, winter wheat, and rye.

Except for oats, all the budgets listed for northwest North Dakota show positive returns to labor and management. Corn, yellow mustard, chickpeas, and malting barley showed the largest returns at $149, $146, $135, and $121 respectively. Of course with all crop budgets one must understand the most variable factors associated with crop profitability – yield and price. The figures used for these highly profitable crops were as follows: corn-80 bu and $5.98 per bushel; yellow mustard 900 lbs. and $0.398 per lb; chichpeas-1400 lbs. and $0.32 per lb. and malting barley-52 bu and $6.81 per bu.

There are some crops whose profitability came in at what I might call mid-level. These were safflower at $96 per acre and millet at $81 per acre. Yields and prices used for these two crops were: safflower-1050 lbs. and $0.29 per lb. and millet-1300lbs and $0.185 per pound.

At the third level of profitability winter wheat ($66), oil sunflower ($62), canola ($57), flax ($50), lentils ($49), durum ($44), rye ($44), buckwheat ($44), field peas ($35), and spring wheat ($24) per acre.

On the expense ledger, there tended to be more uniformity but corn and chickpeas costs of production stand out at $329 and $313 per acre respectively. Except for flax, oats, buckwheat, millet and rye, the cost of producing the other crops range between $200-$300 per acre. Of the most common crops grown in this area the cost of producing lentils was listed at $205 per acre followed by spring wheat ($216), durum ($222), field peas ($220) and canola ($271).

The budgets are all based on dry land production practices. The authors urge farmers to use these budgets as a guide. These recognize there is considerable variation in soil type and productivity, weather conditions as well as management practices within each region.

Importance of Crop Insurance

As of December 10, crop insurance companies have paid more than $8.7 billion for losses in 2012, according to USDA’s Risk Management Agency. There are predictions the number could reach $15 to $16 billion by mid-2013 when claims are paid in full.