Annual Crop Farming

Eighty acres of previously cropped land located on the CGREC are used for the annual crop. Costs of farming and forage harvesting operations are custom rates from extension circular Custom Farm Work Rates (EC 499). Other costs are best estimates. All costs were figured and tabulated in the year they occurred (table 1). Potential value of the land to the owner is included in the analysis and is the rental value as published annually in North Dakota Agricultural Statistics. Since the cropping part of the study is located in Kidder County and the grazing and haying on CRP land is nearby in Stutsman County, the cropland rental rates were averaged for the two counties and used as the cropland cost. The returns to each of the enterprises reflect the costs of the land, i.e. the return to the crop rotation in 1999 was -$55.23 per acre which includes a land cost of $27.35/acre. The eight-year average returns were -$23.36 (table 2). Returns from the cash crop enterprise are as dependent upon weather and markets as they are on good farm management. It is also important to remember that in this analysis, custom rates are being charged against returns for the annual crop and haying enterprises. The profit side of custom work and the somewhat inflated land rental values will modify the net returns per acre considerably.

Table 1. Costs/Acre for Small Grain and Annual Forage Crops
  Average Oat Hay Barley 8-YR.
  1992-1997 1998 1999 Average
         
Seed $5.33 $3.75 $3.58 $4.92
Fertilizer $7.74 $8.36 $6.77 $7.70
Herbicide $12.41 $8.03 $13.18 $11.96
Herbicide Application $2.75 $3.50 $3.61 $2.95
Deep Chisel $4.39 $5.42 $5.58 $4.67
Field Cultivation $4.18 $0.00 $0.00 $3.13
Seeding $5.05 $8.67 $8.93 $5.99
Swathing $4.26 $5.46 $5.62 $4.58
Mowing $0.00 $0.00 $0.00 $0.00
Land Costs $26.93 $26.95 $27.35 $26.99
Piling & Packing/Stacking $0.35 $3.99 $0.00 $0.76
Harvesting/Baling $12.30 $15.69 $15.45 $13.12
Hauling $3.51 $2.19 $3.03 $3.28
Rock Picking $0.00 $0.00 $0.00 $0.00
Total Small Grain Costs $89.19 $92.02 $93.10 $90.03

 

Table 2. Returns/Acre for Small Grain and Annual Forage Crops
   Average
1992-97
 1998 1999 8-Year
Average
Acres 80 80 80 80
Crop   Oat Hay
(ton)
Barley Grain
(bu)


Yield-bu. or Tons/A   1.88 30.30  
Price/bu. or /Ton   $45.00 $1.25  
Deficiency Payment $0.11 $0.00 $0.00 $0.08
Gross Return/A $68.49 $84.60 $37.88 $66.68
Total Cost/A $89.19 $92.02 $93.10 $90.03
Returns Small Grain -$20.70 -$7.42 -$55.23 -$23.36