Farm Management Guide
MF887
Sunflower Cost-Return Budget
in Western Kansas
Department of Agricultural Economics — www.agmanager.info
Kansas State University Agricultural Experiment Station and Cooperative Extension Service
Gregg Ibendahl
Daniel M. O’Brien
Agricultural Economist Agricultural Economist
Farm Management
Crop Marketing
John Holman
Cropping Systems
Agronomist
The information in this projected budget reflects expected
income and costs based on typical production practices
in the region. These values should be used as a guide, but
individuals are encouraged to use their own values reflecting their specific land productive capabilities and farming
system when looking at the potential costs and returns for
their operations.
Income Per Acre
Crop production costs per unit and net returns are highly
dependent on yields.The following estimated budgets include
three different yield levels, which are intended to represent
expected yields for land of varying quality for a given level
of management. Yield levels are based on historical data
from the Kansas Farm Management Association in the
region, adjusting for trends over time. Cash rent for land has
been adjusted for alternative yield levels in this budget and
planting intensity (i.e., either fallow or double cropping).
In customizing a budget for your farm, attention should be
given to using land values (i.e., rents) that are representative
of your farm’s productive capacity, planting intensity, and
local farmland market conditions.
Output price represents an expected harvest price in the
region. Typically, a reasonable price forecast for most crops
Table 1A. Production Inputs — Wheat-Oil-Type
Sunflower-Fallow
Yield Level (lbs/a)
Item
1,200 1,6002,000
Seed,1,000/a 202020
$1.52/1,000
Fertilizer:
N-anhydrous
000
$0.71/lb
N
37 50 62 $0.56/lb
P
12 16 19 $0.68/lb
K
000
$0.40/lb
Lime
000
$0.015/lb
Herbicide
Burndown 111
$14.14/a
Preemergence
111
$42.69/a
Postemergence0.30.30.3
$18.00/a
Insecticide/Fungicide
Insecticide 111
$6.51/a
Crops 28 — Revised April 2015
Jeanne Falk Jones
Lucas Haag
Multicounty Agronomy Crops and Soils, NW
Specialist
is to use the futures market adjusted by the historical basis
for a particular location, where basis equals cash price minus futures price. Silage prices are based on corresponding
crop prices. See MF1013 for more detailed information on
price forecasts.
Because the yields used in the budgets reflect average
expected yields, there is no crop insurance indemnity payment included in income. Crop insurance premiums will vary
tremendously based on many factors (proven yield, coverage
level, type of insurance policy). Crop insurance premiums
included as costs reflect an expected net premium paid on
average given the expected revenue.
Costs Per Acre
Production costs at the three yield levels are shown
on lines 1 through 13. Projected Kansas custom rates for
specific field operations are used to represent fuel and labor
costs as well as machinery repair, depreciation, and interest expenses. Table 1 identifies seed, fertilizer, herbicide,
and insecticide/fungicide costs. Fertilizer rates are based
on removal with adjustments for local conditions. Table 2
outlines the machinery operations assumed, non-machinery
labor, and land cash rent.
Table 1B. Production Inputs — Wheat-Confectionary
Sunflower-Fallow
Yield Level (lbs/a)
Item
1,050 1,3501,650
Seed,1,000/ac 161616
$1.87/1,000
Fertilizer:
N-anhydrous
000
$0.71/lb
N
33 42 51 $0.56/lb
P
10 13 16 $0.68/lb
K
000
$0.40/lb
Lime
000
$0.015/lb
Herbicide
Burndown 111
$14.14/a
Preemergence
111
$42.71/a
Postemergence0.30.30.3
$18.00/a
Insecticide/Fungicide
Insecticide 1.51.51.5
$6.54/a
Table 2A. Machinery and Land Resources — Wheat-Oil-Type Sunflower-Fallow
Yield Level (lbs/a)
Item
1,2001,6002,000
Tillage/Planting/Chemical Applications:
Sweep
000
Disk
000
Field cultivate
000
No-till plant
111
Anhydrous application
000
Fertilizer application
111
Herbicide application
2.32.32.3
Insecticide application-aerial
111
Harvest
Base charge
111
Extra charge for yields exceeding
16
16
16
Hauling
1,200
1,600
2,000
Non-machinery labor
1.001.001.00
Land charge/rent
$34.50
$46.50
$58.50
Interest on capital
Table 2B. Machinery and Land Resources — Wheat-Confectionary Sunflower-Fallow
Yield Level (lbs/a)
Item
1,0501,3501,650
Tillage/Planting/Chemical Applications:
Sweep
000
Disk
000
Field cultivate
000
No-till plant
111
Anhydrous application
000
Fertilizer application
111
Herbicide application
2.32.32.3
Insecticide application-aerial1.51.51.5
Harvest
Base charge
111
Extra charge for yields exceeding
16
16
16
Hauling
1,050
1,350
1,650
Non-machinery labor
1.001.001.00
Land charge/rent
$34.50
$46.50
$58.50
Interest on capital
Custom
Rate
$8.55/a
$11.04/a
$10.82/a
$18.36/a
$13.25/a
$6.64/a
$6.23/a
$7.58/a
$30.04/a
$0.0034/lb
$0.0046/lb
$15.00/hr
6.5%
Custom
Rate
$8.55/a
$11.04/a
$10.82/a
$18.36/a
$13.25/a
$6.64/a
$6.23/a
$7.58/a
$30.04/a
$0.0034/lb
$0.0046/lb
$15.00/hr
6.5%
COST-RETURN PROJECTION — OIL-TYPE SUNFLOWERS (W-SF-F ROTATION) — WESTERN KANSAS
Yield Level (lbs/a)
Your
1,2001,6002,000
Farm
INCOME PER ACRE
1,200 1,600
2,000
A. Yield per acre................................................................ __________
_________
_________
__________
18.5518.5518.55
$
$_________ __________
B. Price per cwt................................................................. $
__________
_________ $__________ $
$_________ __________
C. Net government payment............................................. _________ $__________ $_________
$_________ __________
D. Indemnity payments..................................................... $__________ $
$_________ __________
E. Miscellaneous income................................................... _________ 222.60296.80371.00
$__________
$_________
$_________ __________
F. Returns/acre ((A × B) + C + D + E)............................. OSTS PER ACRE
C
30.4030.4030.40
$__________
$_________
$_________ 1. Seed ........................................................................ 62.2362.2362.23
__________ 2. Herbicide................................................................. _________ _________ 6.516.516.51
3. Insecticide / Fungicide............................................. __________
_________ _________ 28.8838.8847.64
4. Fertilizer and Lime.................................................. __________
_________ _________ 5. Crop Consulting...................................................... __________ _________ _________ 2.715.698.67
6. Crop Insurance*....................................................... __________ _________ _________ 7. Drying..................................................................... __________ _________ _________ 5.505.505.50
8. Miscellaneous........................................................... __________
_________ _________ 86.5889.8193.04
9. Custom Hire / Machinery Expense......................... __________
_________ _________ 15.0015.0015.00
10. Non-machinery Labor............................................. __________ _________ _________ 11. Irrigation
__________ _________ _________ a. Labor..................................................................... __________ _________ _________ b. Fuel and Oil........................................................... __________ _________ _________ c. Repairs and Maintenance...................................... __________ _________ _________ d. Depreciation on Equipment and Well................... __________ _________ _________ e. Interest on Equipment.......................................... __________ _________ _________ 34.5046.5058.50
12. Land Charge / Rent................................................. __________
_________ _________ 272.32300.52327.49
$__________ $_________
$_________ G. SUB TOTAL............................................................... 7.738.268.74
13. Interest on ½ Nonland Costs................................... __________
_________ _________ 280.05308.78336.23
$__________
$
$_________ H. TOTAL COSTS.......................................................... _________ -57.45
-11.98
34.77 $
$_________
I. RETURNS OVER COSTS (F - H)........................... $
__________
_________
23.3419.3016.81
$__________
$_________
$_________ J. TOTAL COSTS/BUSHEL (H ÷ A).......................... -18.26%
-1.24%
13.29%
K. RETURN TO ANNUAL COST (I + 13) ÷ G........... __________
_________
_________
* Reflects expected net premium paid.
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
COST-RETURN PROJECTION — CONFECTIONARY SUNFLOWERS
(W-SF-F ROTATION) — WESTERN KANSAS
Yield Level (lbs/a)
Your
1,0501,3501,650
Farm
INCOME PER ACRE
A. Yield per acre................................................................ __________
_________
_________
__________
1,050 1,350
1,650
$
$_________ __________
B. Price per cwt................................................................. $
__________
_________ 25.8025.8025.80
$__________ $
$_________ __________
C. Net government payment............................................. _________ $__________ $_________
$_________ __________
D. Indemnity payments..................................................... $__________ $
$_________ __________
E. Miscellaneous income................................................... _________ $__________
$_________
$_________ __________
F. Returns/acre ((A × B) + C + D + E)............................. 270.90348.30425.70
OSTS PER ACRE
C
$__________
$_________
$_________ 1. Seed ........................................................................ 29.9229.9229.92
__________
2. Herbicide................................................................. _________ _________ 62.2562.2562.25
3. Insecticide / Fungicide............................................. __________
_________ _________ 9.829.829.82
4. Fertilizer and Lime.................................................. __________
_________ _________ 25.2832.3639.44
5. Crop Consulting...................................................... __________ _________ _________ 6. Crop Insurance*....................................................... __________
_________
_________
5.13
8.27
11.41 7. Drying..................................................................... __________ _________ _________ 8. Miscellaneous........................................................... __________
_________ _________ 5.505.505.50
9. Custom Hire / Machinery Expense......................... __________
_________ _________ 89.1691.5894.00
10. Non-machinery Labor............................................. __________
_________ _________ 15.0015.0015.00
11. Irrigation
__________ _________ _________ a. Labor..................................................................... __________ _________ _________ b. Fuel and Oil........................................................... __________ _________ _________ c. Repairs and Maintenance...................................... __________ _________ _________ d. Depreciation on Equipment and Well................... __________ _________ _________ e. Interest on Equipment.......................................... __________ _________ _________ 12. Land Charge / Rent................................................. __________
_________ _________ 34.5046.5058.50
$__________
$_________
$_________ G. SUB TOTAL............................................................... 276.56301.20325.84
13. Interest on ½ Nonland Costs................................... __________
_________ _________ 7.878.288.69
$__________
$
$_________ H. TOTAL COSTS.......................................................... _________ 284.43309.48334.53
-13.5338.8291.17
$
$_________ I. RETURNS OVER COSTS (F - H)........................... $
__________
_________ 27.0922.9220.27
$__________
$_________
$_________ J. TOTAL COSTS/CWT ((H ÷ A) × 100).................... -2.05%15.64%30.65%
K. RETURN TO ANNUAL COST (I + 13) ÷ G........... __________
_________ _________ __________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
* Reflects expected net premium paid.
Publications from Kansas State University are available at: www.ksre.ksu.edu.
Publications are reviewed or revised annually by appropriate faculty to reflect current research and practice. Date shown is that of
publication or last revision. Contents of this publication may be freely reproduced for educational purposes. All other rights reserved. In
each case, credit Gregg Ibendahl et al., Sunflower Cost-Return Budget in Western Kansas, Kansas State University, April 2015.
Kansas State University Agricultural Experiment Station and Cooperative Extension Service
MF887
April 2015
K-State Research and Extension is an equal opportunity provider and employer. Issued in furtherance of Cooperative Extension Work, Acts of May 8
and June 30, 1914, as amended. Kansas State University, County Extension Councils, Extension Districts, and United States Department of Agriculture
Cooperating, John D. Floros, Director.