Y/E 2014 LH Crop Benchmarking & 2015 Russell & LH Projections
FBS Conference
September 2, 2015
John McNutt, MBA
Moe Russell 1
Latta, Harris, Hanon & Penningroth LLP
2
2014 Corn Comparative Cost of Production Total Planted Acres this Report
Total Bushels this Report
Sorted by Cost/Bushel before Storage,G&A & Crop Insurance
$ / Acre
Acre Range
<1,100
<1,100
<1,100
<1,100
<1,100
>1,100
>1,100
>1,100
<1,100
Farm Total Total Total Input Code Total Seed Fertilizer Chemicals Cost (a)
9
7
5
13
11
6
19
10
2
Average
>1,100
<1,100
>1,100
15
3
8
ISU ‐14 Act
>1,100
1
U of IL Act
>1,100
(a)
(b)
(c)
12
114 94 79 306
140 117 80 336
103 138 19 267
113 123 48 284
137 207 99 443
103 137 59 302
123 150 51 324
127 128 87 342
106 126 99 335
117 140 66 325
131 105 64 301
124 154 39 317
91 187 79 345
308
103 127 61 298
123 174 65 362
135 165 62 357
$/Acre
Net Land Cost (b)
65
161
240
285
103
226
226
238
179
227
293
259
272
287
346
294
280
$/Acres
Total Labor Costs
Custom Total Work Total Total Fuel Machine (Income) Operations Cost (c)
Expense
Costs
Costs
‐
‐
53
81
101
57
54
24
50
57
67
24
72
35
48
50
107
31
19
27
23
32
40
21
27
56
27
‐
26
44
65 ‐
108
132 (9)
124 (120)
117 ‐
96 ‐
117 (29)
104 ‐
122 ‐
114 (12)
103 ‐
60 ‐
141 ‐
153
90 ‐
189
211 ‐
65
108
206
104
245
176
174
168
193
180
227
112
213
187
165
239
362
26,017
5,039,033
$/Acre
SORTED
$/Acre
$/Acre
$/Acre
Total Interest Costs
Total Cost of Production before Storage, G&A & Ins. / bushel
Drying Costs
G&A
Crop Insurance
‐
60
‐
(6)
‐
3
13
‐
19
8
‐
‐
4
4
55
15
Total Cost of Production before Storage, G&A & Crop Ins
2014 Average Yield per Acre
436 185
665 205
713 215
667 199
791 231
708 206
737 203
748 203
726 197
739 200
821 215
688 173
834 189
782 177
812 183
950 205
1,014 191
$ 2.38
$ 3.24
$ 3.32
$ 3.35
$ 3.43
$ 3.44
$ 3.63
$ 3.69
$ 3.70
$ 3.72
$ 3.83
$ 3.97
$ 4.41
$ 4.42
$ 4.43
$ 4.63
$ 5.32
$/Acre
Total COP Total COP per Acre per bushel
65 40 21 564 $ 3.05
105 12 23 805 $ 3.92
45 20 32 810 $ 3.77
23 32 15 738 $ 3.71
63 27 19 900 $ 3.90
57 23 30 818 $ 3.97
63 11 19 829 $ 4.08
17 7 46 818 $ 4.02
36 17 84 863 $ 4.39
49 20 28 836 $ 4.20
26 10 22 879 $ 4.09
28 20 2 738 $ 4.26
79 24 12 947 $ 5.01
782 $ 4.42
65 21 61 959 $ 5.23
41 54
1,045 $ 5.10
12 22 7 1,055 $ 5.53
Total input costs is the sum of seed, fertilizer, chemicals, crop consulting and other normalization adjustments, including credits for returns and coop dividends
Net Land Costs is the total of cash rents, interest payments for land, landlord crop share operations cost, conservation cost, credits for government program payments and Irrigation Costs
Total operations cost is the sum of labor, fuel and machine costs as well as other normalization adjustments including credits and costs reducers, such as custom work.
Latta Harris Hanon Penningroth LLP
563‐886‐2187 John McNutt, [email protected]
$/Bu
2
Latta, Harris, Hanon & Penningroth LLP
3
2014 Comparative Cost of Production for Soybeans
Total Planted Acres this Report
Total Bushels this Report
Sorted by Cost/Bushel before Storage,G&A & Crop Insurance
$/Acre
$ / Acre
Acre Range
<660
<660
>660
<660
<660
<660
>660
Farm Code Total Seed
7
3
10
11
5
6
2
Average
>660
>660
<660
>660
>660
8
19
ISU ‐2014
13
IL ‐2014
15
1
66
49
53
66
50
61
63
59
43
84
Total Fertilizer
Total Total Input Chemicals Cost (a)
Net Land Cost (b)
Total Labor Costs
Total Fuel Costs
‐
‐
43
48
20
67
43
74
53
80
59
33
34
26
28
42
48
81
44
161
189
238
103
166
204
179
222
272
226
287
285
294
293
346
24
24
101
52
57
50
54
41
54
29
81
44
67
42
27
40
27
31
23
21
26
‐
32
55 67 54
71 44 39
64 52 50
66 54 45
146
108
86
143
124
115
175
147
192
180
156
176
154
168
172
19
56
10
Total Machine Costs
108
60
104
117
132
96
122
106
123
117
85
124
151
103
64
SORTED
$/Acre
$/Acres
Total Less Custom Operations Cost (c)
Work Income
Total Interest Costs
108
112
168
245
206
176
193
166
164
174
114
(120) 104
195
‐
227
‐
116
43
‐
‐
‐
‐
3
19
6
3
13
‐
‐
‐
(7)
‐
‐
(14)
‐
(29)
Total Cost of Production Total Cost of before Production Average Storage, G&A before & Crop Storage, G&A Yield per Insurance
Acre
& Crop Ins
458
409
492
491
496
498
566
542
631
593
557
(6) 559
46 689
‐
688
2 636
64
58
67
65
62
60
62
60
68
57
50
50
61
58
47
$ 7.14
$ 7.03
$ 7.39
$ 7.57
$ 8.02
$ 8.29
$ 9.20
$ 9.22
$ 9.28
$ 10.46
$ 11.13
$ 11.15
$ 11.30
$ 11.77
$ 13.63
9,757
600,500
$/Acre
$/Acre
G&A
17
3
18
10
9
5
14
28
17
12
20
7
27
17
23
17
18
24
11
18
1
46
14
22
30
55
26
12
19
4
4
7
32
32
52
10
21
15
Total input costs is the sum of seed, fertilizer, chemicals, crop consulting and other normalization adjustments, including credits for returns and coop dividends
(b)
Net Land Costs is the total of cash rents, interest payments for land, landlord crop share operations cost, conservation cost, credits for government program payments and Irrigation Costs
(c)
Total operations cost is the sum of labor, fuel and machine costs as well as other normalization adjustments including credits and costs reducers, such as custom work.
$/Acre
$/Bu
Total Cost Total Cost of of Productio Production Crop Insurance n per Acre per bushel
Drying Costs
(a)
Latta Harris Hanon Penningroth LLP
563‐886‐2187 John McNutt [email protected]
$/Acre
22
56
488
449
548
550
545
560
644
599
693
641
557
611
745
727
746
3
$ 7.61
$ 7.71
$ 8.22
$ 8.47
$ 8.80
$ 9.32
$ 10.45
$ 10.20
$ 10.20
$ 11.30
$ 11.13
$ 12.19
$ 12.21
$ 12.43
$ 15.99
Latta, Harris, Hanon & Penningroth LLP & Russell Consulting Group
2015 Projected ‐ Cost of Production per Acre ‐& Projected Profit (Loss) / Acre
4
PAGE 1 of 2
Total Projected Planted Acres this Report:
NotIA&IL
Size Range Farm Code
<1200
<1200
>1200
<1200
<1200
>1200
<1200
>1200
>1200
<1200
>1200
>1200
>1200
>1200
<1200
>1200
>1200
>1200
<1200
>1200
>1200
<1200
>1200
<1200
>1200
<1200
>1200
>1200
<1200
>1200
>1200
<1200
Russell
<1200
<1200
<1200
153
505
11
113
3
16
171
22
160
7
155
151
13
112
2
28
23
6
27
19
165
167
30
31
503
8
172
303
116
169
32
115
Average
402
504
154
Estimated Market Prices:
106,975
Top 20% , Bottom 20%
SEED
44
75
83
78
86
82
79
87
64
85
95
112
97
76
70
99
102
80
55
75
72
104
97
105
99
75
68
84
58
91
86
78
88
79
77
106
Estimate
Illinois 105
Estimate Iowa State 94
Corn
$/Acre
CHEM
FERT
Inputs (a)
Land (b)
Labor
Fuel
Machine
Total Operations (c)
22
50
50
75
70
27
47
38
44
34
34
60
43
45
83
82
21
40
57
31
95
30
39
30
50
70
49
63
42
36
36
32
53
53
80
94
52
99
8
73
33
30
96
73
140
71
110
72
40
146
87
130
40
105
127
43
68
119
‐
120
11
29
88
66
97
85
94
129
63
50
92
111
80
164
107
37
74
198
165
183
252
181
267
196
217
192
169
318
227
251
193
286
250
163
180
225
167
254
147
164
237
211
214
232
194
257
185
160
234
244
236
364
264
230
81
85
270
148
145
214
271
219
109
110
190
197
204
245
189
207
280
256
107
305
323
121
280
202
197
221
190
24
185
260
251
230
209
191
180
253
246
273
64
48
40
60
76
34
21
67
39
68
68
16
114
25
48
29
51
40
44
45
62
53
32
41
40
40
76
21
53
47
43
90
51
21
74
21
17
29
15
21
10
12
9
23
‐
16
21
29
31
24
50
20
25
23
16
13
15
11
26
21
19
25
18
10
17
35
24
19
11
25
21
19
21
76
49
26
56
56
50
63
77
86
100
110
107
95
107
55
88
79
58
76
78
84
122
110
136
135
99
58
84
239
78
116
49
101
92
95
114
118
84
155
117
76
128
142
107
84
161
146
197
210
147
259
152
127
141
146
111
135
134
172
196
161
202
193
149
151
140
316
144
170
164
173
132
189
135
158
113
23
Interest
1
6
7
4
11
1
10
19
21
8
‐
3
5
2
4
9
24
16
21
3
4
13
26
5
14
11
5
34
10
22
11
1
‐
26
11
9
$/Acre
$4.00
Soybeans
$9.80
Target Yield
$/Acre
SORTED
Total $/A b4 other Drying
Misc.
Crop Insurance
Total Cost/Acre
Yield Corn bu / a
Yield SB Total Crop bu / a
Rev. Per Acre
312
406
518
463
551
504
632
595
494
499
576
662
692
653
512
638
685
555
438
685
666
574
601
593
632
595
566
401
695
695
616
576
626
568
605
778
679
625
9
‐
4
11
5
11
‐
13
‐
5
2
29
‐
6
7
9
8
4
6
8
3
32
‐
11
‐
8
11
2
14
27
7
9
10
3
‐
26
27
25
58
‐
6
20
21
10
27
28
36
31
13
12
21
8
41
17
20
9
27
24
18
56
7
41
13
12
23
24
12
14
37
20
24
27
59
16
8
10
10
10
20
‐
30
17
18
12
25
27
26
18
37
16
18
31
17
15
15
21
32
23
30
15
‐
20
9
31
22
15
20
30
22
‐
24
26
23
13
388
416
548
494
607
541
676
648
554
563
617
721
750
683
577
695
730
582
485
738
719
685
638
661
645
635
609
458
743
750
680
635
683
598
687
846
737
673
180
145
185
185
195
170
215
200
165
180
200
195
195
185
180
200
192
170
140
212
206
180
180
190
185
180
173
135
200
195
180
185
183
175
180
200
196
180
52 604 216
48 524 108
52 621 73
45 560 66
58 670 63
52 599 58
60 729 53
58 693 45
51 597 43
50 602 39
54 656 39
62 734 13
55 756 6
60 689 6
55 577 ‐
60 693 (2)
58 727 (3)
50 579 (3)
45 479 (6)
62 732 (6)
59 713 (6)
55 679 (6)
50 625 (13)
55 647 (14)
53 629 (16)
52 614 (21)
50 588 (21)
36 434 (24)
60 715 (28)
56 721 (29)
55 649 (31)
45 601 (34)
53 $ 645 $ (38)
50 558 (40)
55 645 (42)
800 (46)
57 690 (47)
50 624 (49)
4
Estimated Profit/ Acre
PAGE 1 of 2
NotIA&IL
Total Projected Planted Acres this Report:
5
Size Range Farm Code
Estimated Market Prices:
106,975
Top 20% , Bottom 20%
$/Acre
SEED
CHEM
FERT
Inputs (a)
Land (b)
Labor
Fuel
Machine
Total Operations (c)
96
148
107
63
98
82
91
99
73
81
87
143
106
100
87
112
65
78
71
124
122
43
57
84
28
51
54
74
45
66
31
58
86
91
45
58
43
67
70
42
67
78
127
95
111
70
123
95
68
111
93
78
112
144
162
79
131
99
115
154
105
166
141
266
300
302
160
272
231
232
255
232
191
257
373
359
224
276
254
247
302
218
357
341
195
189
72
304
209
201
285
232
287
222
220
202
280
282
361
206
181
162
226
112
338
52
25
46
28
43
118
13
64
42
56
105
12
41
70
72
76
46
84
86
50
42
19
10
24
10
16
15
60
20
16
40
25
18
31
24
33
34
46
5
23
16
‐
62
18
138
185
123
105
113
122
90
133
78
23
118
75
99
159
238
97
207
172
171
133
53
208
224
182
238
186
206
148
228
208
53
190
169
205
269
329
186
316
238
213
Interest
$/Acre
$4.00
$9.80
Target Yield
$/Acre
SORTED
Total $/A b4 other Drying
Misc.
Crop Insurance
Total Cost/Acre
Yield Corn bu / a
Yield SB Total Crop bu / a
Rev. Per Acre
Estimated Profit/ Acre
610
560
584
698
673
690
703
703
669
652
688
648
839
697
880
746
763
666
763
707
906
22
3
31
8
19
8
5
7
1
9
11
2
26
5
4
20
11
14
12
40
3
16
‐
31
40
32
47
34
29
61
17
3
‐
20
24
26
23
25
75
28
14
‐
28
21
41
27
23
20
36
27
28
17
25
21
26
25
17
31
30
34
31
35
23
676
584
687
773
747
765
778
766
760
695
727
671
911
751
927
820
829
789
834
796
933
160
145
175
200
175
200
200
190
193
180
179
165
200
185
223
180
180
180
180
170
180
42
47
55
60
50
55
60
45
55
47
53
48
(58)
(61)
(66)
(68)
(69)
(73)
(80)
(84)
(85)
(103)
(106)
(107)
(111)
(126)
(128)
(152)
(163)
(177)
(188)
(213)
(266)
PAGE 2 of 2
>1200
>1200
<1200
>1200
<1200
<1200
<1200
<1200
>1200
>1200
>1200
>1200
<1200
<1200
>1200
>1200
<1200
<1200
<1200
<1200
>1200
104
201
114
18
111
301
14
100
170
158
150
202
173
105
166
117
1
302
110
107
200
Russell Costs
Average
2015
Average
2014
Average
2013
Average
2012
Average
2011
16
18
2
10
10
20
10
2
11
3
20
10
22
38
17
7
16
4
‐
14
50
64
55
60
53
55
45
55
618
523
621
705
678
692
698
682
675
592
621
564
800
625
799
668
666
612
646
583
667
234 209 51 21 101 173 11 626 10 24 22 683
223 188 54 28 111 193 10 613 11 34 28 686
221 208 54 21 99 174 9 612 6 10 33 661
223 223 46 20 108 174 13 633 14 32 38 717
192 205 48 19 102 169 14 580 20 16 35 651
(a)
(b)
(c)
(d)
Total input costs is the sum of seed, fertilizer, chemicals, crop consulting and other normalization adjustments, including credits for returns and coop dividends
Net Land Costs is the total of cash rents, interest payments for land, landlord crop share operations cost, conservation cost and credits for government program payments
Total operations cost is the sum of labor, fuel and machine costs as well as other normalization adjustments including credits and costs.
ISU & ILL Estimates based 58.3% corn & 41.7% beans, Russell 2015 Average 58.3% Corn, 41.7% SoyBeans
5
Latta, Harris, Hanon & Penningroth LLP
6
Sorted by Cost/Bushel before Storage,G&A & Crop Insurance
$/Acre
$ / Acre
Acre Range
Total Seed
Total Total Total Input Fertilizer Chemicals Cost (a)
Net Land Cost (b)
Total Labor Costs
SORTED
$/Acre
$/Acres
Custom Total Work Total Total Fuel Machine (Income) Operations Cost (c)
Expense
Costs
Costs
Total Cost of 2014 Production Average before Total Interest Storage, G&A Yield per Acre
& Crop Ins
Costs
Total Cost of Production before Storage, G&A & Ins. / bushel
$/Acre
Drying Costs
$/Acre
$/Acre
$/Acre
Misc. & Crop Total COP G&A Insurance per Acre
$/Bu
$/Bu
Projected Profit/bu Price @ $4.00/bu Total COP corn & $9.80 SB
per bushel
2015 LH Clients Corn Projected Cost of Production <1,100
>1,100
>1,100
>1,100
ISU ‐15 proj
U of IL proj
92 118 45 264
106 129 45 284
120 125 40 297
105 160 60 330
116 126 36 278
124 145 60 329
233
241
285
198
273
261
39 25 132
72 18 105
45 20 101
45 15 120
34
99
18 24 117
(31) 166
(118) 78
166
180
133
159
24
(8)
20
30
11
11
687 182
595 190
768 190
738 165
695 180
760 196
$ 3.78
$ 3.13
$ 4.04
$ 4.47
$ 3.86
$ 3.88
8 24 38
13 35 19
42 25 60
30 20 55
44 10 14
38 8 27
757
661
895
843
763
833
$ 4.16
$ 3.48
$ 4.71
$ 5.11
$ 4.24
$ 4.25
$ (29)
$ 99
$ (135)
$ (183)
$ (43)
$ (49)
$ 9.58
$ 9.52
$ 9.72
$ 9.22
$ 10.56
$ 9.88
3
4
27
15
573 $ 10.04
548 $ 10.74
680 $ 11.33
633 $ 10.55
547 $ 10.94
636 $ 11.16
$ (14)
$ (48)
$ (92)
$ (45)
$ (57)
$ (77)
2015 LH Clients Soybean Projected Cost of Production <1,100
>1,100
>1,100
>1,100
ISU ‐15 proj
U of IL proj
50
54
70
65
63
78
233
241
285
193
273
225
39 25 132
72 18 105
35 10 63
45 15 80
23
63
16 21 120
(12) 185
(118) 78
108
140
86
157
24
(8)
13
30
6
10
546 57
86 103 48 239
88 53 92 234
239
209
49 19 106 (70) 139
51 21 101
173
16
11
632
627
19 25 38 714
10 24 22 683
$ (57)
$ (38)
5
30
(2) (2) 5 (70) (33) 5
6
9 1 16 31
$ (19)
69
50
60
60
53
45 104
48 175
45 177
60 190
40 163
40 171
485 51
583 60
553 60
528 50
563 57
24 ‐
35 24
20 50
20 45
10 9
38 8 27
Per Acre Compare , 58.3% Corn, 41.7% Soybeans
Avg LHHP
Russell Avg
Variance
(a)
Total input costs is the sum of seed, fertilizer, chemicals, crop consulting and other normalization adjustments, including credits for returns and coop dividends
(b)
Net Land Costs is the total of cash rents, interest payments for land, landlord crop share operations cost, conservation cost, credits for government program payments and Irrigation Costs
(c)
Total operations cost is the sum of labor, fuel and machine costs as well as other normalization adjustments including credits and costs reducers, such as custom work.
Latta Harris Hanon Penningroth LLP
563‐886‐2187 John McNutt, [email protected]
6
Latta, Harris, Hanon & Penningroth LLP & Russell Consulting Group
2015 Projected ‐ Cash Flow per Acre 7
NotIA&IL
SORTED
Estimated Size Range Farm Code Profit/ Acre
<1200
<1200
<1200
<1200
<1200
<1200
<1200
<1200
>1200
>1200
>1200
>1200
>1200
<1200
>1200
<1200
<1200
<1200
>1200
<1200
<1200
>1200
<1200
>1200
<1200
>1200
<1200
>1200
>1200
<1200
>1200
<1200
<1200
>1200
>1200
>1200
>1200
>1200
<1200
<1200
>1200
>1200
>1200
>1200
>1200
>1200
>1200
<1200
<1200
<1200
>1200
>1200
>1200
>1200
<1200
107
113
111
116
153
402
505
154
22
28
112
160
16
2
503
7
3
171
151
114
8
11
173
18
110
13
167
172
155
302
169
27
301
303
150
19
158
23
14
504
104
6
30
32
170
165
201
31
105
100
117
202
166
200
1
(213)
66
(69)
(28)
216
(40)
108
(46)
45
(2)
6
43
58
‐
(16)
39
63
53
13
(66)
(21)
73
(111)
(68)
(188)
6
(6)
(21)
39
(177)
(29)
(6)
(73)
(24)
(106)
(6)
(103)
(3)
(80)
(42)
(58)
(3)
(13)
(31)
(85)
(6)
(61)
(14)
(126)
(84)
(152)
(107)
(128)
(266)
(163)
Non Crop Rev/Acre
Standard Rev/Acre
1,659
611
501
40
59
200
1,446
677
432
12
275
160
108
67
117
79
6
75
76
72
(16)
71
63
53
73
(53)
41
73
2
61
(125)
65
(6)
(8)
46
94
8
49
(30)
3
(48)
28
(42)
39
(40)
(42)
(53)
3
36
8
(64)
(3)
(61)
94
(126)
(84)
(115)
(107)
8
(266)
(158)
113
72
81
32
18
72
32
60
13
62
113
129
63
59
13
7
271
37
55
43
27
58
34
61
42
40
5
6
49
39
21
3
108
‐
37
136
5
Less Bldg Equip Less Land Term Add Back Depr Term Principal
Principal
Std Cash/Acre
78
14
55
161
57
54
16
95
37
58
78
68
35
45
85
57
31
‐
62
97
40
21
92
70
159
31
64
32
50
50
61
38
66
47
54
32
56
35
61
41
42
19
39
14
40
27
‐
91
46
28
40
‐
70
‐
54
(5)
(71) (94)
(42) (40)
(59)
(49) (4)
(22) (21)
(61)
(35)
(37) (7)
(59)
(36)
‐
(89)
(40)
(56)
(47) (11)
(95)
(25) (41)
(28)
(30)
(49)
(76)
(26)
(43)
(75)
(97)
(8)
‐
‐
(55)
(3) (9)
(64) (10)
(20)
(27) (15)
(40) (58)
(56)
(9) (7)
(82)
‐
‐
(175) (81)
(29)
(21)
‐
‐
(252) (78)
‐
‐
(135) (28)
1,524
691
487
168
167
132
124
103
101
94
84
82
76
72
69
69
58
53
46
44
41
38
36
35
34
30
30
24
22
17
12
11
10
7
6
5
2
1
0
(1)
(11)
(20)
(24)
(34)
(40)
(57)
(61)
(71)
(80)
(85)
(96)
(107)
(252)
(266)
(268)
7