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While commodity prices have seen an increase over past years, growers can also expect to see increased input costs for the 2021 growing season.

The following table shows a comparison of break-even prices for Alabama row crops based on target yields for irrigated and nonirrigated production. For break-even projections, variable costs reflect the average production costs included in Alabama Extension’s 2021 major row crop budgets as well as an average land rent cost for irrigated or nonirrigated farmland.

Alabama Row Crop Breakeven Prices

Irrigated Corn Irrigated Cotton NorthIrrigated Cotton SouthIrrigated PeanutsIrrigated SoybeansNon-Irrigated CornNon-Irrigated Cotton NorthNon-Irrigated Cotton SouthNon-Irrigated PeanutsNon-Irrigated SoybeansDouble-Crop Soybeans
Expected Yield/acre250130013002.5601207508501.754540
Total Var Cost/acre$959.16$834.50$810.51$855.20$544.74$462.57$612.62$599.71$631.19$389.61$316.89
Breakeven Price (Var. Cost)$3.84$0.64$0.62$342.08$9.08$3.85$0.82$0.71$360.68$8.66$7.92
Fixed Cost/acre$238.73$303.76$301.84$296.76$201.58$79.21$166.21$165.18$132.84$69.37$60.55
Total Cost/acre$1,197.89$1,138.26$1,112.35$1,124.96$746.32$541.78$778.83$764.89$764.03$458.98$377.44
Excl Management
Breakeven Price (Total Cost)$4.79$0.88$0.86$449.98$12.44$4.51$1.04$0.90$436.59$10.20$9.44

In determining the budgets, land rental rates were set at $125 per acre for irrigated land and $60 per acre for dryland. All other variable costs can be found in the specific row crop budgets in the Farm and Agribusiness Management section of the Alabama Extension website.

Due to declining stocks and increased exports, market prices for most commodities are favorable for covering variable costs of production if yield expectations are realized.  However, growers will still need to manage higher input costs and uncertainties of future trade and exports, as well as continued recovery from the pandemic.

 

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