In addition to the cash rental rates and custom rates released by Nebraska Extension and the UNL Agricultural Economics Department, the crop budgets are another helpful set of materials for producers to use. Agricultural Economists from the University of Nebraska–Lincoln have just released 2019 information which includes 78 budgets on 15 crops, predicting price expectations for input costs for 2019.
Information released from the Ag Economics department and UNL’s CropWatch recently shared a summary of the information. In comparing several corn and wheat budgets from 2018 to 2019, total costs for field operations, materials and services have increased. For example, with dryland, no-till, continuous corn with a 125-bushel yield, experts estimate materials and services will be $6.89 per acre higher in 2019.
Pivot-irrigated corn with a 245-bushel yield would see an anticipated $30.45-per-acre increase in materials and services. In addition to estimating a total cost of production per acre and per-bushel cost, including opportunity cost for land use, each budget shows the cash costs of production. The budgets do not estimate returns. The largest increase in costs for the 2019 budgets as compared to 2018 is for nitrogen fertilizer, with a price increase of about 20 percent. Phosphorus fertilizer has increased about 11 percent. Fuel costs were adjusted higher with land costs adjusted slightly lower, based on the Nebraska Farm Real Estate Report.
Material and service costs for the budgets were researched by a team led by Robert Klein, extension cropping systems specialist. Glennis McClure, extension educator in agricultural economics, and Roger Wilson, retired extension farm management analyst, worked together to format and publish the budgets. One thing to always remember is that the budgets are cost estimates based on assumptions and should only be used a guide and reviewed carefully before decision making by farmers.