NC State Extension Publications

## Introduction

While growing a crop takes substantial effort, making a profit also requires successful marketing. Some years it may be easy to profit; other years, it may be challenging. This chapter provides foundational knowledge for marketing in general, evaluation of current market conditions illustrating key price relationships, and input cost information in the form of enterprise budgets specific to North Carolina.

## Marketing and price risk

Crop producers are no stranger to risk. Factors outside the producer’s control, such as weather, can influence the amount produced. Similarly, a North Carolina producer has no influence on national soybean price levels. Neither weather nor prices are perfectly predictable, and both affect producer profit and financial health—possibly for better, possibly for worse.

During a set period of time, say a year, profit will be the total revenue, less the total costs.

$$profit=total\ revenue-total\ costs$$

This section on marketing focuses on the revenue part of the equation. Total revenue will come from collecting sales of all the products a farm produces. Let’s say a farm produces corn and soybeans, then

$$profit=[(price_{soy}\times yield_{soy}\times acres_{soy}) + (price_{corn}\times yield_{corn}\times acres_{corn})] - total\ costs.$$

If we look at soybean revenue alone, we can see that price and yield are random variables—that is, we will not know the value until it occurs. We will know yield only at harvest, and we will know the price only at the time of the actual sale.

$${\underbrace{price_{soy}}_\text{unknown}}\times{\underbrace{yield_{soy}}_\text{unknown}}\times\ acres_{soy}$$

Given that producers must make input decisions—often associated with costs—before knowing prices and yields, what are the options for dealing with these unknowns?

It is easiest to address yields first. Management practices developed by crop scientists and entomologists, for example, can make soybean yields more predictable and reduce the likelihood of crop failure. In terms of financial tools, there is also crop insurance. Crop insurance can offer yield protection or revenue protection (accounting for both price and yield). The main advantages of crop insurance are that it protects against catastrophic losses and can improve producer access to credit. The disadvantages are that a premium must be paid1, and it can be complex in terms of the type and level of coverage to select.

This section is devoted to marketing and the financial tools available to manage price risk. As with yields, we ask similar questions:

• Is there anything we can do to make soybean prices more predictable?
• What can we do to reduce the financial impact of low soybean prices?

As with crop management practices, determining the “best” practices will depend on various farm characteristics—managing price risk should be specific to each farm. When choosing a price-risk management strategy, it is important to consider the producer risk tolerance and risk capacity, and national and local market conditions.

While risk tolerance and risk capacity may be related, they are separate considerations. Risk tolerance refers to the producer’s emotional ability to withstand commodity price volatility or rapidly falling prices. Someone who is risk-averse may lose sleep during times of high soybean price volatility; someone else who is risk-loving may be willing to accept exposure to soybean price fluctuations during the same volatile period. Risk capacity is the maximum amount of loss the farm enterprise can tolerate, regardless of the producer’s attitude toward risk. A farm enterprise following a good year may be capable of withstanding up to $25,000 of potential losses on soybeans; such a loss would be painful, but the farm could eventually recover. A$25,000 loss may bankrupt the same farm following a bad year.

Therefore, implementing an appropriate marketing strategy requires preparation. Mainly the producer needs to establish:

1. How much potential loss am I willing to accept? [tolerance]
2. What is the maximum loss the farm can withstand? [capacity]

Reviewing the broad financial picture of the farm by evaluating the cash flows, current liquidity, and profitability will help determine the answers to A and B. Since risk tolerance can exceed risk capacity, whichever one is lower, A or B, is a limit to keep in mind. The next information to establish is:

1. What is the break-even price per bushel? Break-even price per acre? To find this value, we need to solve for the soybean price when profit equals zero.

$$soybean\ revenue-soybean\ costs=0\ \rightarrow \underbrace{(price_{soy}\times yield_{soy}\times acres_{soy})}_\text{soybean revenue} = soybean\ costs$$

This can be rearranged as:

$$price_{soy}^{breakeven}\ =\ {{soybean\ costs}\over{yield_{soy}}\ \times\ {acres_{soy}}}$$

In 2021, North Carolina farmers planted 1.650 million acres of soybeans that represented a turnaround in acreage, which had been on the decline over the past four years from the most recent high of 1.820 million acres in 2015 (see Table 2-2 and graph in Figure 2-4[a]). With favorable growing conditions in 2021, the average yield was a record 40 bushels per acre, equaling previous highs in 2014 and 2017 (see Table 2-2 and graph in Figure 2-4[b]). Planted acres and record yields in 2021 culminated in the third-largest harvest, 65.6 million bushels (the record was 69.2 million in 2014) (Figure 2-4[c]). As of this publication date (January 2022), the 2021 marketing year average had not been determined. However, prices in 2021 have been higher than previous years' $11.20 per bushel; the monthly average for soybeans for September to December across locations has been$12.33 per bushel (YTD), which is less than the previous high of $14.00 per bushel in 2012 (Figure 2-4[d]). Suppose prices remain strong for the remainder of the 2021 to 2022 marketing year. In that case, North Carolina soybean growers will see receipts exceeding$800 million ($12.33 per bushel × 65.6 million bushels =$808 million) for their 2021 crop, which will be the second highest on record below the previous high of $874 million set in 2012. #### Table 2-2. North Carolina Soybean Acres, Yields, and Production 2000 to 2021 Year Acres Planted Acres Harvested Yield (Bu/Acre) Production (Mill Bu) Price (Marketing Year) ($/Bu)
Production
(Mill $) 2000 1,400,000 1,360,000 32.5 44.200 4.51 199 2001 1,380,000 1,350,000 32.0 43.200 4.29 185 2002 1,370,000 1,290,000 24.0 30.960 5.63 174 2003 1,450,000 1,400,000 30.0 42.000 7.29 306 2004 1,530,000 1,500,000 34.0 51.000 5.56 284 2005 1,490,000 1,460,000 27.0 39.420 5.64 222 2006 1,370,000 1,360,000 32.0 43.520 6.35 276 2007 1,440,000 1,380,000 22.0 30.360 10.10 307 2008 1,690,000 1,670,000 33.0 55.110 9.33 514 2009 1,800,000 1,750,000 34.0 59.500 9.59 571 2010 1,580,000 1,550,000 26.0 40.300 12.00 484 2011 1,380,000 1,360,000 30.5 41.480 12.10 502 2012 1,590,000 1,580,000 39.5 62.410 14.00 874 2013 1,480,000 1,450,000 33.5 48.575 13.10 636 2014 1,750,000 1,730,000 40.0 69.200 10.20 706 2015 1,820,000 1,730,000 32.0 55.360 8.68 481 2016 1,690,000 1,660,000 35.0 58.100 9.80 569 2017 1,700,000 1,690,000 40.0 67.600 9.50 642 2018 1,650,000 1,570,000 33.0 51.810 8.66 449 2019 1,540,000 1,520,000 35.0 53.200 8.71 463 2020 1,600,000 1,570,000 38.0 59.660 11.20 674 2021 1,650,000 1,640,000 40.0 65.600 Average 2017–2021 1,628,000 1,598,000 37.2 59.574 9.52 557 Average 2000–2021 1,561,364 1,525,909 32.9 50.571 8.87 453 Min 1,370,000 1,290,000 22.0 30.360 4.29 174 Max 1,820,000 1,750,000 40.0 69.200 14.00 874 Source: USDA/NASS Quick Stats (Accessed January 2022) The four graphs in Figure 2-4—acres, yields, production, and price—reveal upward trends over 2000 to 2021 for all four factors of production. The year 2021 was a below-trend year for acreage but a turnaround from previous years. Suppose this turnaround continues in 2022, with favorable planting conditions and strong new crop prices. In that case, planted acreage should return to above-trend levels and approach previous highs above the 1.8 million acreage level. With 2021 being a record yield year and a recent typical sawtooth pattern in yields with back-to-back increases in yields being less common (recent exceptions have been 2021, 2020, 2017, 2012, and 2009), it remains to be seen whether yields can go higher in 2022. If yields do go higher in 2022, this would be the first time that back-to-back increases have occurred for four years running—2019, 2020, 2021, and 2022—at least dating back to 2000. The growing conditions in 2022 will be a crucial driver for whether yields can be record level in 2022. If favorable growing conditions eventuate in 2022 and with the above-trend planted acreage, then expectations should be for a crop that will test the previous high of 69.2 million bushels in 2014. A record level of production in 2022, combined with higher prices in 2022 projected in the range of$12.80 to $13.30 (2022 November futures are trading at$13.15 per bushel at the time of this writing in January 2022, and new crop soybean basis in January are averaging about -$0.35 to$0.20 per bushel for an estimate of 2022 price of $12.80 to$13.30 per bushel), leads to a projection of receipts in 2022 exceeding $840 million and close to the record cash receipts of$874 million set in 2012. Of course, it is impossible to predict such things so far in advance, but if there are favorable conditions at planting time and promising new crop futures on offer, this may entice producers to plant significant acreage of soybeans in 2022. With favorable growing conditions in 2022, the upcoming year promises to be a record or near-record year for North Carolina soybean production and receipts.

### U.S. Soybean Situation and Outlook

Table 2-3 shows several highlights concerning the current demand and supply of U.S. soybeans and the outlook for U.S. soybean markets moving into 2022. The national soybean crop in 2021 was 5.2% higher than the previous year’s crop, with a total production of 4.435 billion bushels. The higher production level resulted from an increase in acreage to 97.2 million acres (an increase of 4.6% from 2020) and a slight gain in yields to 51.4 bushels per acres (an increase of 0.8% from 2020). The 51.4-bushel yield in 2021 was a trend yield and was only 0.5 bushels from the record yield set in 2016. The planted acreage of 87.2 million acres was 3 million acres below the record level set in 2017. With demand having been strong and outstripping production the previous two years and depleting stocks, a mere 257 million bushels of beginning stocks rounded out the estimated 2021/22 marketing year supply of 4.707 billion bushels.

#### Table 2-3. USDA Supply/Demand Balance Sheet for Soybeans

Category

Item/Use

2019/20

2020/21 Est

2021/22 Proj

%Δ 2021/22
vs. 2020/21

Production Acreage

Acres Planted (millions of acres)

76.1

83.4

87.2

4.6

Acres Harvested (millions of acres)

74.9

82.6

86.3

4.5

Bu/Harvested Acre (millions of acres)

47.4

51.0

51.4

0.8

Supply

Beginning Stocks

909

525

257

-51.0

Production

3,552

4,216

4,435

5.2

Total Supply

4,476

4,761

4,707

-1.1

Use

Crushing

2,165

2,141

2,190

2.3

Exports

1,679

2,265

2,050

-9.5

Seed and Residuals

108

97

102

5.2

Total Use (Demand)

3,952

4,504

4,357

-3.3

Stocks

Ending Stocks

525

256

350

36.7

Ending Stocks, % of Use

13.3

5.7

8.0

41.3

Pricing

U.S. Season Average Farm

$8.57$10.80

$12.60 16.7 Price,$/ Bu

Source: World Agricultural Supply and Demand Estimates (WASDE), USDA, January 2022

### Interest Rates, November 12, 2021

In February 2021, the U.S. Department of Agriculture announced lending rates of 1.375% for Farm Service Agency farm-operating loans. Private banks are offering terms from 1.1% to 2.5% based on good credit and business history. Actual interest rates can vary based on the purpose of the loan and the individual famer. Rates can start as high as 12% for unique lending options and/or poor or no credit history. The 2022 budgets have an assumed 2% interest for operational loans supporting the cost of seed, pest control, fuel, electricity, irrigation, cover crop, equipment maintenance, and labor (where applicable) across all budgets. For equipment, loans, and other long-term loans, current rates vary from 2.5% to 6.9%, depending on the terms and amount of the loan. We assume a 5-year loan fixed rate at 2.9%. All indications now show a stable rate through spring of 2022 prior to planting. Because of the decrease in rates of long-term equipment loans, there is a decrease in Tractor/Machinery fixed costs in the budgets, as compared to 2021.

### Energy Cost, November 12, 2021

The U.S. Energy Information Administration predicted increases across the board, effective Oct. 13, 2021. Its estimations for the U.S. in 2022 are:

• Propane increase: 54%
• Heating oil increase: 43%
• Natural gas increase: 30%
• Electricity increase: 6%

The National Oceanic and Atmospheric Administration is predicting heating degree-days to be 3% higher this year than last year for the nation, and even if the winter is warmer than average, energy cost is expected to increase. Farm use of propane in North Carolina averaged $1.99 per gallon as of Oct. 15, 2021. Propane for tobacco is mainly used in the summer months, when demand is low. Futures markets show a 28% decrease in price for liquid propane (LP) from October to the summer months, when LP will be used on the farm, a normal decrease based on demand. The budgets apply the seasonal price decrease of LP to assume an average cost of$1.43 per gallon July through August. This is roughly a 30% increase from seasonal low LP prices in 2021. Statewide gas prices in North Carolina averaged 3.21 as of Oct. 21, 2021. Since October 2020, North Carolina experienced a $1.20 per gallon increase overall. Gas prices are set at$3.20 in the 2022 budgets.

U.S diesel prices have increased $0.50 since May, 2021, to$3.67 per gal. As of Oct. 18, 2021, North Carolina average on-road diesel prices are estimated to be $3.50. The N.C. Department of Agriculture and Consumer Services (NCDA&CS) production cost report (Table 2-4) shows an average of$2.86 per gallon for farm diesel fuel, with a range of $0.14. U.S. diesel futures look relatively stable through 2022, with an expected mild decrease in price. The rate for farm diesel in the budgets is set at$2.80. This is a significant increase from cost indicated in the 2021 budgets, roughly 120%. Because of an increase in the price of farm-use diesel fuel, there is an increase in the Tractor/Machinery variable costs listed in all the budgets in 2022 as compared to 2021.

### Fertilizer Cost

Table 2-4. The NCDA&CS Production Cost Report Prices as of 11/24/2021

Product

Offer

Average

18-46-0

649.00-1,082.00

818.13

18-46-0, Bulk

.00-1,042.00

778.13

10-10-10

410.00-595.00

505.67

10-10-10, Bulk

370.00-555.00

465.67

Lime

.00-250.00

222.83

36.50-65.00

52.38

Potash

740.00-1,029.00

858.50

Potash, Bulk

700.00-989.00

818.50

Calcium Nitrate

495.00-597.00

532.33

Liquid Nitrogen 30-32%

350.00-750.00

511.25

Urea, Bulk

447.00-1,015.00

704.00

Ammonium Sulfate

452.00-652.00

521.33

Ammonium Sulfate, Bulk

385.00-612.00

457.25

Whole Cottonseed

220.00-230.00

226.25

Based on 2021 for fertilizer products used in the budgets, the percentage multiplier for the increase in cost is: 2021 cost × % Multiplier = 2022. Examples:

• 18-46-0 (DAP) = 162%
• 10-10-10 = 140%
• Lime = 0%
• Potash (0-0-60) = 203%
• Calcium Nitrate (15-0-0) = 102%
• Liquid Nitrogen (30-0-0) = 182%
• Urea (46-0-0) = 135%

### Budget Tables

Table 2-5. Soybean Conventional 2022 — 50 Bushel Actual Yield

Estimated Costs and Returns Per Acre for High Maintenance Soybeans

Categore

Item

UNIT

QUANTITY

PRICE OR COST/UNIT

TOTAL PER ACRE

1. GROSS
RECEIPTS

SOYBEANS

BU.

50

$12.51$625.50

TOTAL RECEIPTS:

$625.50 2. VARIABLE COSTS SEED (CERTIFIED) THOU. 110$0.40

$44.00 FERTILIZER, PHOSPHATE (0-46-0) LBS 87$0.26

$22.61 FERTILIZER, POTASH (0-0-60) LBS 123$0.43

$53.03 LIME (PRORATED) TON 0.33$54.50

$17.99 HERBICIDES ACRE 1$47.36

$47.36 INSECTICIDES ACRE 1$3.96

$3.96 FUNGICIDES ACRE 1$25.07

$25.07 SURFACTANT ACRE 1$3.82

$3.82 AERIAL APPLICATION APPL 0 HAULING BU. 50$0.26

$13.00 TRACTOR/MACHINERY ACRE 1$34.40

$34.40 LABOR HRS 2.14$13.15

$28.14 SCOUT ACRE 1$12.00

$12.00 INTEREST ON OP. CAP. DOL.$110.88

2.0%

$2.52 TOTAL VARIABLE COSTS:$307.90

3. INCOME ABOVE VARIABLE COSTS:

$317.60 4. FIXED COSTS TRACTOR/MACHINERY ACRE 1$74.26

$74.26 TOTAL FIXED COSTS:$74.28

5. OTHER
COSTS

DOL.

$307.90 7.0%$21.55

TOTAL OTHER COSTS:

$21.55 6. TOTAL COSTS:$403.73

7. NET RETURNS TO LAND, RISK, AND MANAGEMENT:

$221.77 #### Break-Even Yield Variable costs: 25 bu. Total costs: 32 bu. #### Break-Even Price Variable costs:$6.16
Total costs: $8.07 Table 2-6. Soybean Conventional 2022 — 42 Bushel Actual Yield Estimated Costs and Returns Per Acre for Mid Maintenance Soybeans Category Item UNIT QUANTITY PRICE OR COST/UNIT TOTAL PER ACRE YOUR FARM 1. GROSS RECEIPTS SOYBEANS BU. 42$12.51

$525.42 TOTAL RECEIPTS:$525.42

2. VARIABLE
COSTS

SEED (CERTIFIED)

THOU.

110

$0.40$44.00

FERTILIZER, PHOSPHATE (0-46-0)

LBS

73

$0.26$18.99

FERTILIZER, POTASH (0-0-60)

LBS

104

$0.43$44.55

LIME (PRORATED)

TON

0.33

$54.50$17.99

HERBICIDES

ACRE

1

$44.37$44.37

INSECTICIDES

ACRE

0

FUNGICIDES

ACRE

1

$12.53$12.53

SURFACTANT

ACRE

1

$2.85$2.85

AERIAL APPLICATION

APPL

0

$-$ -

HAULING

BU.

42

$0.26$10.92

TRACTOR/MACHINERY

ACRE

1

$33.64$33.64

LABOR

HRS

2.05

$13.15$26.96

SCOUT

ACRE

1

$12.00$12.00

INTEREST ON OP. CAP.

DOL.

$102.88 2.0%$2.19

TOTAL VARIABLE COSTS:

$270.99 3. INCOME ABOVE VARIABLE COSTS:$254.43

4. FIXED
COSTS

TRACTOR/MACHINERY

ACRE

1

$67.51$67.51

TOTAL FIXED COSTS:

$67.51 5. OTHER COSTS GENERAL OVERHEAD DOL.$270.99

7.0%

$18.97 TOTAL OTHER COSTS:$18.97

6. TOTAL COSTS:

$357.47 7. NET RETURNS TO LAND, RISK, AND MANAGEMENT:$167.95

#### Break-Even Yield

Variable costs: 22 bu.
Total costs: 29 bu.

#### Break-Even Price

Variable costs: $6.45 Total costs:$8.51

Table 2-7. Soybean Conventional 2022 — 35 Bushel Actual Yield

Estimated Costs and Returns Per Acre for Low Maintenance Soybeans

Category

Item

UNIT

QUANTITY

PRICE OR COST/UNIT

TOTAL PER ACRE

1. GROSS
RECEIPTS

SOYBEANS

BU.

35

$12.51$437.85

TOTAL RECEIPTS:

$437.85 2. VARIABLE COSTS SEED (CERTIFIED) THOU. 110$0.40

$44.00 FERTILIZER, PHOSPHATE (0-46-0) LBS 61$0.26

$15.83 FERTILIZER, POTASH (0-0-60) LBS 86$0.43

$37.12 LIME (PRORATED) TON 0.33$54.50

$17.99 HERBICIDES ACRE 1$34.77

$34.77 INSECTICIDES ACRE 0 FUNGICIDES ACRE 0 SURFACTANT ACRE 1$1.74

$1.74 AERIAL APPLICATION APPL 0 HAULING BU. 35$0.26

$9.10 TRACTOR/MACHINERY ACRE 1$31.89

$31.89 LABOR HRS 2.12$13.15

$27.88 SCOUT ACRE 1$12.00

$12.00 INTEREST ON OP. CAP. DOL.$91.67

2.0%

$1.83 TOTAL VARIABLE COSTS:$234.15

3. INCOME ABOVE VARIABLE COSTS:

$203.70 4. FIXED COSTS TRACTOR/MACHINERY ACRE 1$57.76

$57.76 TOTAL FIXED COSTS:$57.76

5. OTHER
COSTS

DOL.

$234.15 7.0%$16.39

TOTAL OTHER COSTS:

$16.39 6. TOTAL COSTS:$308.30

7. NET RETURNS TO LAND, RISK, AND MANAGEMENT:

$129.55 #### Break-Even Yield Variable costs: 19 bu. Total costs: 25 bu. #### Break-Even Price Variable costs:$6.69
Total costs: $8.81 Table 2-8. Soybean No-Till 2022 — 50 Bushel Actual Yield Estimated Costs and Returns Per Acre for High Maintenance No-Till Soybeans Category Item UNIT QUANTITY PRICE OR COST/UNIT TOTAL PER ACRE YOUR FARM 1. GROSS RECEIPTS SOYBEANS BU. 50$12.51

$625.50 TOTAL RECEIPTS:$625.50

2. VARIABLE COSTS

SEED (CERTIFIED)

THOU.

110

$0.40$44.00

FERTILIZER, PHOSPHATE (0-46-0)

LBS

87

$0.26$22.61

FERTILIZER, POTASH (0-0-60)

LBS

123

$0.43$53.03

LIME (PRORATED)

TON

0.33

$54.50$17.99

HERBICIDES

ACRE

1

$47.36$47.36

INSECTICIDES

ACRE

1

$3.96$3.96

FUNGICIDES

ACRE

1

$25.07$25.07

SURFACTANT

ACRE

1

$3.82$3.82

AERIAL APPLICATION

APP

0

HAULING

BU.

50

$0.26$13.00

TRACTOR/MACHINERY

ACRE

1

$28.13$28.13

LABOR

HRS

1.62

$13.15$21.30

SCOUT

ACRE

1

$12.00$12.00

INTEREST ON OP. CAP.

DOL.

$107.75 2.0%$2.46

TOTAL VARIABLE COSTS:

$294.73 3. INCOME ABOVE VARIABLE COSTS:$330.77

4. FIXED
COSTS

TRACTOR/MACHINERY

ACRE

1

$68.37$68.37

TOTAL FIXED COSTS:

$68.37 5. OTHER COSTS GENERAL OVERHEAD DOL.$294.73

7.0%

$20.63 TOTAL OTHER COSTS:$20.63

6. TOTAL COSTS:

$383.73 7. NET RETURNS TO LAND, RISK, AND MANAGEMENT:$241.77

#### Break-Even Yield

Variable costs: 24 bu.
Total costs: 31 bu.

#### Break-Even Price

Variable costs: $5.89 Total costs:$7.67

Table 2-9. Soybean/Wheat Conventional 2022 — 35/60 Bushel Actual Yield

Estimated Costs and Returns Per Acre for Soybean/Wheat

Category

Item

UNIT

QUANTITY

PRICE OR COST/UNIT

TOTAL PER ACRE

1. GROSS RECEIPTS

SOYBEANS

BU.

35

$12.51$437.85

WHEAT

BU.

60

$5.83$349.80

TOTAL RECEIPTS:

$787.65 2. VARIABLE COSTS SEED (WHEAT) BU. 1.75$22.50

$39.38 SEED (SOYBEANS) THOU. 120$0.40

$48.00 FERTILIZER, NITROGEN (30%) CWT 1.2$25.55

$30.66 FERTILIZER, PHOSPHATE (0-46-0) LBS 130$0.26

$33.80 FERTILIZER, POTASH (0-0-60) LBS 123$0.43

$52.89 LIME (PRORATED) TON 0.33$54.50

$17.99 HERBICIDES ACRE 1$60.53

$60.53 INSECTICIDES ACRE 1$12.66

$12.66 FUNGICIDES ACRE 1$8.79

$8.79 SURFACTANT ACRE 1$4.10

$4.10 AERIAL APPLICATION APPL 0$9.00

HAULING

BU.

95

$0.26$24.70

TRACTOR/MACHINERY

ACRE

$1.00$57.69

$57.69 LABOR HRS 3.4$13.15

$44.71 SCOUT ACRE 1$8.00

$8.00 INTEREST ON OP. CAP. DOL.$176.76

2%

$3.54 TOTAL VARIABLE COSTS:$447.44

3. INCOME ABOVE VARIABLE COSTS:

$340.21 4. FIXED COSTS TRACTOR/MACHINERY ACRE 1$107.48

$107.48 TOTAL FIXED COSTS:$107.48

5. OTHER COSTS

DOL.

$447.44 0.07$31.32

TOTAL OTHER COSTS:

$31.32 6. TOTAL COSTS:$586.24

7. NET RETURNS TO LAND, RISK, AND MANAGEMENT:

$201.41 #### Break-Even Yield Variable costs: 7 bu. Total costs: 19 bu. #### Break-Even Price Variable Costs:$4.71
Total Costs: \$6.17

# Authors

Assistant Professor and Extension Specialist
Agricultural & Resource Economics
Extension Specialist and Professor, Grain Marketing and Risk Management
Agricultural & Resource Economics
NC Farm School Associate
Agricultural & Resource Economics