Characteristics and Production Costs of U.S. Corn Farms, 2001

51 Pages Posted: 6 Apr 2011

See all articles by Linda Foreman

Linda Foreman

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Date Written: February 2006

Abstract

Corn production costs per bushel vary considerably among U.S. producers, depending on yields, farm location, tillage practices, irrigation, previous field usage, enterprise size, and weather. In 2001, the operating and ownership costs per bushel for corn ranged from an average of $1.08 for the 25 percent of U.S. producers with the lowest costs to an average of $2.98 for the 25 percent with the highest costs. Heartland corn producers had the lowest costs per bushel on average. Corn producers with small corn enterprises had the highest costs due to their lower-than-average corn yields. Operators of part-time and low-sales corn farms have higher production costs per bushel than operators of farms with higher sales. In 2001, 59 percent of corn producers earned a positive net return per bushel after covering their operating and ownership costs from the market value of corn. When loan deficiency payments (LDPs) on corn were added to the value of corn production, 64 percent of producers covered their corn operating and ownership costs. When income consists of the value of production, LDPs, production flexibility contract, market loss, and disaster assistance payments, 73 percent of producers earned a positive return per bushel after accounting for their operating and ownership costs.

Keywords: corn, costs of production, operator characteristics, production practices

JEL Classification: Q12

Suggested Citation

Foreman, Linda, Characteristics and Production Costs of U.S. Corn Farms, 2001 (February 2006). USDA Economic Information Bulletin, No. 7, February 2006, Available at SSRN: https://ssrn.com/abstract=1803255

Linda Foreman (Contact Author)

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States

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