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The Cost From Seed To Suppler

August 8, 2012, 9:58 PM by Don Jorgensen

The Cost From Seed To Suppler

To give you a different perspective of the drought; we created a scenario to show you just how much a farmer invests in a year.

With help from a local seed company, we're going to give you one synopsis of how much a farmer may spend on one acre of corn on non-irrigated land.

In the spring, a farmer can spend $360 on working ground, cost of seed, planting, fertilizer, sprays and insurance.

Then in the fall, he'll spend around $64 on combining, trucking the grain to town, drying it and then working the ground again.

That totals to just over $424 for just one acre. If you add in cash rent for the land, he could be spending a total of $624 an acre.

In a good year, if that acre of corn produces 150 bushels of corn, at today's prices, he could get over $1,100 on his return. 

Subtract his expenses and he's left with around $560 for his work or $760 if he didn't have to rent the land.

But in a drought year like now, if the farmer is lucky enough to get 75 bushels of corn, that comes out to nearly $600 return.  Leaving him with about $170 after expenses or not breaking even if he rents the ground.

Now this is just one scenario and we didn't figure in the cost of repairs to equipment, which happens frequently in the farming world.

And depending on which brand of seed, the type of ground, how much fertilizer is used and what mother nature dishes out can change how much a farmer gets from his fall harvest.

Insurance policies also vary; some could help farmers more and some may not.

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