Projected ND crop profits for 2021 better than 2020
The North Dakota State University Extension projected crop budgets for 2021 are available for the state’s producers, says Ron Haugen, NDSU Extension farm management specialist.
The 2021 projected profits vary by region and crop.
“The budgets are guides for large multicounty regions,” says Haugen. “Returns and costs can vary considerably between producers within a region. Also, the budgets estimate returns to labor and management with no consideration of price and yield variability or risk. A perfect comparison of crops is not achieved because different levels of labor and management and risk exist.”
Generally, most crops in all regions have improved profit from the previous year.
Hard red spring wheat projects positive returns to labor and management in all regions of North Dakota, with the northeastern region showing the most at $49 per acre
With the run-up in soybean prices, large positive returns to labor and management are shown in all regions. The southeastern region shows the largest soybean return at $122 per acre.
Corn projects positive returns in all regions, with a range from $44 to $107 per acre.
Malting barley shows great positive return, based on the market price used in the budget calculations. Malting barley contracts are encouraged to lock in a price. Barley is a crop that can be grown with reasonable input costs.
“Specialty crops may show a positive return, but usually have limited contracts and acreages, and also may have higher risk,” Haugen says.
“Generally, for most crops, the projected total costs per acre are generally flatter than last year’s projections,” he adds. “Fertilizer expense is slightly higher. Seed, chemicals and insurance costs are generally flat. Fuel, lube and repairs are slightly lower. Cropland rents for most regions are flat.”
The NDSU Extension-developed budgets are available online at https://bit.ly/3ppJ2eN or by searching online for NDSU Crop Budgets.