Costs of Producing Food Grains, Feed Grains, Oilseeds, and Cotton, 1974-76

This report presents regional and national estimates of variable, machinery ownership, and general farm overhead costs per acre and per unit for crop years 1974, 1975, and projections for 1976. Estimates of the land and management cost components are not included. Cost estimates are included for food grains, feed grains, oilseeds, and cotton crops. Production costs were higher in 1974 than in previous years because of rapidly rising input prices and generally poor yields for most crops in most regions. In 1975 production costs per acre showed a continued but slowed increase varying from 6 percent for flaxseed to 25 percent for com. However, yields increased from 3 to 26 percent and thereby held per unit costs near the 1974 levels. In fact, cost estimates per bushel for barley, soybeans, and flaxseed actually declined in 1975. Cotton costs were the exception, increasing by almost 24 percent in 1975. Given projected yield levels, unit costs in 1976 would be only slightly higher than in 1975. Projected favorable yields and falling input prices, especially for fertilizer, are responsible for the smaller rate of increase indicated.