Mississippi State University analyses of crop production costs this year show irrigated and non-irrigated cotton, rice, and sweet potatoes as the most expensive crops to grow, all coming in at well above $800 per acre, including fixed and operating expenses.
Coming behind them are irrigated corn, non-Delta cotton, and peanuts, all above $700 per acre in specified expenses. Dryland corn and Delta irrigated soybeans require nearly $500 per acre in specified expenses.
The least expensive crops, according to Dr. Bryon Parman, assistant Extension professor of agricultural economics, who conducted the analyses, are dryland soybeans, grain sorghum, and wheat, with all three being produced at a specified operating and fixed expense below $400 per acre.
Ag news delivered to your in-box each weekday. Subscribe to Delta Farm Press Daily.
The report, he says, “is intended as a guide for producers and farm financial specialists to estimate expected farm profitability per acre.” The analyses are further subdivided into Delta and non-Delta regions.
“Most crops, especially corn, cotton, and rice, have multiple irrigated and non-irrigated budgets, using different cropping practices within specific regions,” Parman says. “In these cases, the operating (direct) and fixed (specified) expenses were averaged across methods, while maintaining the same yield goal. Peanuts, sweet potatoes, grain sorghum, and wheat used a statewide budget.”
Cash rental rates were taken from the 2016 survey of Mississippi lenders. Peanuts, sweet potatoes, sorghum, and wheat were evaluated using the statewide non-Delta cash rental rate, while rice used only the Delta area rental rate for irrigated land. Cotton, corn, and soybeans used the average rental rate, with corresponding location and irrigation considerations.
The projected prices for peanuts and sweet potatoes were taken from the USDA’s Economic Research Service data and price projections for corn, soybeans, wheat, grain sorghum, rice, and cotton were obtained from the University of Missouri’s Food and Agricultural Policy Research Institute..
To see all the tables showing the profitability data for the various crops, please click here.