By Ada Wossink and Randy Weisz
In North Carolina, wheat is generally grown in a double-cropped soybean production system. This allows the risk of crop failure to be spread across two harvests and increases income potential. Even with two crops in a single season, the enterprise budgets (Tables 2-1 and 2-2) show that the profit margin for the wheat portion of the double-cropped soybean system is narrow. This makes it very important to produce optimum yields with minimum inputs.
The enterprise budgets for conventional and no-till wheat in Tables 1 and 2 are based on a 2,000-acre farm with 1,000 acres of corn and 1,000 acres of wheat double-cropped with soybeans. Commercially applied lime and preplant fertilizer are joint inputs for wheat and soybean, so these inputs were prorated 50-50 between the two crops. It is assumed that a 180-hp tractor is used for all planting, tilling, and spraying, a 75-foot sprayer, a 24-foot no-till drill, a 30-foot combine, and a secondhand tractor trailer for hauling the grain are used in production.
For conventionally tilled wheat, land preparation is assumed to consist of one pass with a bush hog or rotary mower, one pass with a 30-foot tandem disk, and a second pass with a 30-foot field cultivator. Wheat is assumed to be planted at 2.2 bushels of seed per acre. For no-till wheat, land preparation is assumed to consist of one pass with a bush hog or rotary mower and a second pass to apply a burndown herbicide. No-till seeding is assumed to require 2.5 bushels of seed per acre. Estimating pesticide costs is difficult since each farm and field may be managed differently. We have assumed that all fields are treated with Harmony Extra for broadleaf weed control, and that one third of the wheat acreage is also treated with an insecticide for cereal leaf beetle control. If a producer has a smaller farm, smaller equipment, or uses more inputs than assumed we have assumed here, his or her costs will be higher than those shown in Tables 2-1 and 2-2.
| Table 2-1a. Conventionally Tilled Wheat, Costs in Dollars per Acre | ||||||
| Wheat Inputs | Example Values |
Your Values |
||||
Unit Price |
Quantity |
Total Cost ($/a) |
Unit Price |
Quantity |
Total Cost ($/a) |
|
| Lime (ton, prorated) | $31.50 |
0.333 x 50% |
5.25 |
|||
| Preplant Fertilizer 5-15-30 (cwt, prorated) | $8.00 |
4 x 50% |
16.00 |
|||
| Commercial Application (cwt, prorated) | $1.00 |
4 x 50% |
2.00 |
|||
| Conventional Wheat Inputs | ||||||
| Wheat Seed (bu) | $9.00 |
2.2 |
19.00 |
|||
| Topdress N 30% (cwt) | $5.80 |
3.0 |
17.40 |
|||
| Harmony Extra (oz) | $11.16 |
0.5 |
5.58 |
|||
| Optional Spring Pesticides: Warrior (oz) applied to 30% of acres | $1.99 |
2.6 x 30% |
1.55 |
|||
| Additional Costs | ||||||
| Annual Operating Capital ($) | 9.5% |
$36.62 |
3.48 |
|||
| Machinery Labor (hr) | $8.50 |
1.06 |
9.01 |
|||
| Machinery Fuel, Lube, Repair ($) | 23.67 |
|||||
| Fixed Costs | ||||||
| Machinery, Interest, Depreciation, Taxes, Insurance ($) | 36.82 |
|||||
| Land Costs ($) | 25.00 |
1 |
25.00 |
|||
| Total Costs | 164.76 |
|||||
| Table 2-1b. Conventionally Tilled Wheat Income, Costs, and Net Returns in Dollars per Acre | |||||||||
High Yield Example |
Low Yield Example |
Your Values |
|||||||
| Price ($/bu) | Yield (bu/a) | Gross Income ($/a) | Price ($/bu) | Yield (bu/a) | Gross Income ($/a) | Price ($/bu) | Yield (bu/a) | Gross Income ($/a) | |
| Wheat Income | 3.0 |
65 |
195.00 |
3.0 |
50 |
150.00 |
|||
| Total Costs (from Table 2-1a) | 164.76 |
164.76 |
|||||||
| Net Returns | $30.24 |
($14.76) |
|||||||
| Table 2-2a. No-Till Wheat, Costs in Dollars per Acre | ||||||
| Wheat Inputs | Example Values |
Your Values |
||||
Unit Price |
Quantity |
Total Cost ($/a) |
Unit Price |
Quantity |
Total Cost ($/a) |
|
| Lime (ton, prorated) | $31.50 |
0.333 x 50% |
5.25 |
|||
| Preplant Fertilizer 5-15-30 (cwt, prorated) | $8.00 |
4 x 50% |
16.00 |
|||
| Commercial Application (cwt, prorated) | $1.00 |
4 x 50% |
2.00 |
|||
| Conventional Wheat Inputs | ||||||
| Herbicide Burndown (qt) | $9.70 |
1 |
9.70 |
|||
| Wheat Seed (bu) | $9.00 |
2.5 |
22.50 |
|||
| Topdress N 30% (cwt) | $5.80 |
3.0 |
17.40 |
|||
| Harmony Extra (oz) | $11.16 |
0.5 |
5.58 |
|||
| Optional Spring Pesticides Warrior (oz, applied to 30% of acres) | $1.99 |
2.6 x 30% |
1.55 |
|||
| Additional Costs | ||||||
| Annual Operating Capital ($) | 9.5% |
$42.23 |
$4.01 |
|||
| Machinery Labor (hr) | $8.50 |
0.95 |
8.07 |
|||
| Machinery Fuel, Lube, Repair ($) | 20.77 |
|||||
| Fixed Costs | ||||||
| Machinery, Interest, Depreciation, Taxes, Insurance ($) | 31.78 |
|||||
| Land Costs ($) | 25.00 |
1 |
25.00 |
|||
| Total Costs | $169.56 |
|||||
| Table 2-2b. No-Tilled Wheat Income, Cost and Net Returns in Dollars per Acre | |||||||||
High Yield Example |
Low Yield Example |
Your Values |
|||||||
Price ($/bu) |
Yield (bu/a) |
Gross Income ($/a) |
Price ($/bu) |
Yield (bu/a) |
Gross Income ($/a) |
Price ($/bu) |
Yield (bu/a) |
Gross Income ($/a) |
|
| Wheat Income | 3.0 |
65 |
195.00 |
3.0 |
50 |
150.00 |
|||
| Total Costs (from Table 2-1b) | 169.56 |
169.56 |
|||||||
| Net Returns | $25.44 |
($19.56) |
|||||||
This file is a chapter from Small Grains Production Guide, 2004-05. Recommendations for the use of agricultural chemicals are included in this publication as a convenience to the reader. The use of brand names and any mention or listing of commercial products or services in this publication does not imply endorsement by the NC Cooperative Extension Service nor discrimination against similar products or services not mentioned. Individuals who use agricultural chemicals are responsible for ensuring that the intended use complies with current regulations and conforms to the product label. Be sure to obtain current information about usage regulations and examine a current product label before applying any chemical. For assistance, contact your county Cooperative Extension Center.
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Published by
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Distributed in furtherance of the Acts of Congress of May 8 and June 30, 1914. North Carolina State University and North Carolina A&T State University commit themselves to positive action to secure equal opportunity regardless of race, color, creed, national origin, religion, sex, age, or disability. In addition, the two Universities welcome all persons without regard to sexual orientation. North Carolina State University, North Carolina A&T State University, U.S. Department of Agriculture, and local governments cooperating.
9/04—3M—JMG (Revised) AG-580
EO4-43980
Last Revised Sept. 2004