The material contained herein is supplementary to the article named in the title and published in the American Journal of Agricultural Economics.Crop Production/Industries, Farm Management,

Clark, Samuel F.

English

Research Papers in Economics

AJAE appendix: “The Profitability of Transitioning to Organic Grain Crops in Indiana” 
Samuel F. Clark 
 
August 8, 2009 
 
“Note: The material contained herein is supplementary to the article named in the title and 
published in the American Journal of Agricultural Economics (AJAE).” 
  Table 6. CPS Revenues, Costs, and Net Returns: Scenario A  
CPS C-B Rotation 
2009 2010 2011 2012 2013 2014 
Corn Soybean Corn Soybean Corn Soybean 
Yield  (bu./acre)  161.39  47.77  165.95  48.48  170.51  49.18 
Price  ($/bu.)   $    3.98    $    9.24    $    4.25    $    9.43    $    4.45    $    9.63  
Gross Revenue   $ 642.32    $ 441.43    $ 705.28    $ 457.16    $ 758.76    $ 473.64  
Seed   $   89.00    $   54.16    $   96.54    $   58.75    $ 104.72    $   63.72  
Fertilizer   $   87.09    $   39.35    $   96.01    $   43.39    $ 105.84    $   47.83  
Pesticides   $   41.00    $   29.24    $   41.68    $   29.72    $   42.36    $   30.21  
Fuel & Lubrication   $   18.00    $    8.51    $   20.36    $    9.62    $   23.02    $   10.88  
Repairs   $   12.00    $    9.22    $   12.58    $    9.67    $   13.20    $   10.14  
Drying   $   24.00       $   26.73       $   29.76     
Hauling   $   17.00    $    5.32    $   19.22    $    6.01    $   21.74    $    6.80  
Operating Int.   $   17.00    $    9.16    $   17.62    $    9.49    $   18.26    $    9.84  
Total Direct Costs ($/acre)   $ 305.09    $ 154.95    $ 330.74    $ 166.65    $ 358.90    $ 179.42  
Machinery Ownership   $   77.00    $   79.58    $   82.25    $   85.01    $   87.87    $   90.81  
Total Costs ($/acre)   $ 382.09    $ 234.54    $ 412.99    $ 251.66    $446.77    $ 270.23  
Net Return ($/acre)   $ 260.23    $ 206.89    $ 292.29    $ 205.50    $ 312.00    $ 203.41  
 
  
1 
 Table 7. CPS Revenues, Costs, and Net Returns: Scenario B  
CPS B-C Rotation 
2009 2010 2011 2012 2013 2014 
Soybean Corn Soybean Corn Soybean Corn 
Yield    (bu./acre)  47.42 163.67 48.13 168.23 48.83 172.79 
Price  ($/bu.)   $     9.00    $     4.15    $     9.33    $     4.35    $     9.53    $     4.55  
Gross Revenue   $ 426.79    $ 679.22    $ 449.02    $ 731.79    $ 465.36    $ 786.19  
Seed   $   52.00    $   92.69    $   56.40    $ 100.54    $   61.18    $ 109.06  
Fertilizer   $   37.48    $   91.44    $   41.32    $ 100.81    $   45.55    $ 111.13  
Pesticides   $   29.00    $   41.34    $   29.48    $   42.02    $   29.96    $   42.71  
Fuel & Lubrication   $     8.00    $   19.14    $     9.05    $   21.65    $   10.23    $   24.48  
Repairs   $     9.00    $   12.29    $     9.44    $   12.89    $     9.90    $   13.52  
Drying      $   25.33      $   28.20      $   31.41 
Hauling   $     5.00    $   18.08    $     5.65    $   20.44    $     6.39    $   23.12  
Operating Int.   $     9.00    $   17.31    $     9.33    $   17.93    $     9.67    $   18.59  
Total Direct Costs ($/acre)   $ 149.48    $ 317.61    $ 160.67    $ 344.49    $ 172.89    $ 374.01  
Machinery Ownership   $   77.00    $   79.58    $   82.25    $   85.01    $   87.87    $   90.81  
Total Costs ($/acre)   $ 226.48    $ 397.20    $ 242.92    $ 429.50    $ 260.76    $ 464.83  
Net Return ($/acre)   $ 200.31    $ 282.02    $ 206.09    $ 302.29    $ 204.61    $ 321.36  
 
   
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 Table 8. OPS Costs: Scenario C 
OPS                       
C-B-W/A-A Rotation 
2009 2010  2011  2012  2013 2014 
Corn Soybean  Wheat/Alfalfa  Alfalfa Corn Soybean 
Alfalfa Seed        $57.69          
Crop Seed  $108.32  $48.81  $21.18     $127.44  $57.43 
Fertilizer $69.49  $62.54  $172.61     $84.45  $76.01 
Machinery  Costs $40.63  $24.36  $62.35 $43.77 $48.58  $29.13 
Drying $33.24          $41.22   
Hauling $4.79  $1.22  $16.56 $7.16 $6.12  $1.56 
Cover Crop  $26.04  $27.12        $30.64  $31.91 
Miscellaneous $7.18  $7.36  $7.74 $7.74 $7.94  $8.14 
Operating  Int. $8.69  $6.11  $2.67 $0.30 $9.34  $6.57 
Total Direct Costs ($/acre)  $298.36  $177.53  $340.81  $58.97  $355.72  $210.74 
Machinery  Ownership $56.64  $41.21  $80.79 $50.67 $64.63  $47.03 
Total Costs ($/acre)  $355.00  $218.74  $421.60  $109.63  $420.35  $257.77 
 
   
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 Table 9. OPS Costs: Scenario D  
OPS                       
B-W/A-A-C Rotation 
2009 2010  2011  2012  2013 2014 
Soybean Wheat/Alfalfa Alfalfa  Corn  Soybean Wheat/Alfalfa 
Alfalfa Seed     $57.26           $59.00 
Crop Seed  $46.87  $20.33     $122.37  $55.14  $23.93 
Fertilizer $59.56  $164.40     $80.43 $72.39  $199.80 
Machinery  Costs $23.30  $59.62  $41.85 $46.46 $27.86  $71.30 
Drying         $39.06      
Hauling $1.15  $15.57  $6.73 $5.75 $1.47  $19.92 
Cover Crop  $26.04        $29.41  $30.64    
Miscellaneous $7.18  $7.55  $7.55 $7.74 $7.94  $8.34 
Operating  Int. $6.01  $2.63  $0.30 $9.17 $6.45  $2.82 
Total Direct Costs ($/acre)  $170.10  $327.37  $56.43  $340.40  $201.88  $385.10 
Machinery  Ownership $39.87  $78.17  $49.02 $62.53 $45.50  $89.20 
Total Costs ($/acre)  $209.97  $405.54  $105.45  $402.93  $247.38  $474.30 
 
   
4 
 Table 10. OPS Costs: Scenario E  
OPS                       
W/A-A-C-B Rotation 
2009 2010  2011  2012  2013 2014 
Wheat/Alfalfa Alfalfa  Corn  Soybean Wheat/Alfalfa Alfalfa 
Alfalfa Seed  $56.84           $58.56    
Crop Seed  $19.52     $117.49  $52.95  $22.97    
Fertilizer  $156.58     $76.60  $68.94  $190.29    
Machinery Costs  $57.02  $40.02  $44.43  $26.64  $68.18  $47.86 
Drying       $37.02        
Hauling $14.64  $6.33  $5.41  $1.38 $18.73  $8.10 
Cover Crop        $28.24  $29.41       
Miscellaneous $7.36  $7.36  $7.55  $7.74 $8.14  $8.14 
Operating Int.  $2.58  $0.29  $9.01  $6.34  $2.77  $0.31 
Total Direct Costs ($/acre)  $314.54  $54.01  $325.75  $193.40  $369.64  $64.41 
Machinery Ownership  $75.63  $47.43  $60.50  $44.02  $86.30  $54.12 
Total Costs ($/acre)  $390.17  $101.44  $386.25  $237.43  $455.94  $118.53 
 
   
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 Table 12. OPS Yields, Prices, Premiums, Gross Revenue, & Net Returns: Scenario C  
OPS                           
C-B-W/A-A Rotation 
2009 2010 2011 2012 2013 2014 
Corn Soybean 
Wheat/ 
Alfalfa 
Alfalfa Corn  Soybean 
Yields 
Crop  (bu./acre)  137.80  40.65  59.07    145.59  41.85 
Alfalfa (ton/acre)      0.82  3.30     
Straw (bales)      25.00       
Prices 
& 
Prem. 
Crop Prem.  High          $13.35  $22.15 
($/bu.) Avg.          $10.77  $19.93 
   Low          $8.01  $15.89 
    None  $3.98 $9.24 $5.90    $4.45 $9.63 
Alfalfa Prem.  High        $151.79      
($/ton) Avg.        $139.14       
   Low       $124.51  $126.49      
Straw Price ($/bale)      $3.50        
Gross 
Rev. 
Premium: High        $501.24  $1,943.57  $926.97 
 ($/acre)  Avg.        $459.47  $1,567.81  $834.28 
   Low        $417.70  $1,166.14  $665.00 
    None  $548.43 $375.62 $538.76  $417.70  $647.86 $403.03 
Net  
Return  
Premium:  High           $391.60  $1,523.22  $669.20 
 Avg.          $349.83  $1,147.46  $576.50 
 Low          $308.06  $745.79  $407.23 
  None  $193.43 $156.88 $117.16  $308.06  $227.50 $145.26 
 
   
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 Table 12. OPS Yields, Prices, Premiums, Gross Revenue, & Net Returns: Scenario D  
OPS                           
B-W/A-A-C Rotation 
2009 2010 2011 2012 2013 2014 
 Soybean 
Wheat/ 
Alfalfa 
Alfalfa Corn  Soybean 
Wheat/ 
Alfalfa 
Yields 
Crop  (bu./acre)  40.35  58.16    143.64  41.55  61.83 
Alfalfa (ton/acre)    0.82  3.30      0.83 
Straw (bales)    25.00        25.00 
Prices 
& 
Prem. 
Crop Prem.  High        $13.05  $21.92  $11.05 
($/bu.) Avg.        $10.53  $19.73  $9.56 
   Low        $7.83  $15.72  $7.48 
    None  $9.00 $5.69   $4.35 $9.53 $6.50 
Alfalfa  Prem.  High        $156.53 
($/ton)  Avg.        $143.49 
   Low    $122.54  $124.51      $130.44 
Straw Price ($/bale)    $3.50        $3.50 
Gross 
Rev. 
Premium:  High      $1,874.48  $910.77  $900.11 
  ($/acre)  Avg.      $1,512.08  $819.69  $796.89 
    Low      $1,124.69  $653.38  $657.51 
    None  $363.16 $519.43 $410.88 $624.83 $395.99 $597.22 
Net  
Return  
Premium:  High           $1,471.55  $663.39  $425.82 
 Avg.        $1,109.15  $572.31  $322.60 
 Low        $721.76  $405.99  $183.21 
  None  $153.19 $113.89 $305.43 $221.90 $148.60 $122.93 
 
   
7 
 8 
 
Table 13. OPS Yields, Prices, Premiums, Gross Revenue, & Net Returns: Scenario E  
OPS  
W/A-A-C-B Rotation 
2009 2010 2011 2012 2013 2014 
Wheat/ 
Alfalfa 
Alfalfa Corn    Soybean 
Wheat/ 
Alfalfa 
Alfalfa 
Yields 
Crop  (bu./acre)  57.24    141.69  41.25  60.91   
Alfalfa  (ton/acre)  0.82  3.30    0.83  3.31 
Straw  (bales)  25.00      25.00   
Prices 
& 
Prem. 
Crop  Prem.  High      $21.69  $10.71  
($/bu.)  Avg.      $19.52  $9.26  
    Low      $15.56  $7.25  
    None  $5.09   $4.25 $9.43 $6.30   
Alfalfa  Prem.  High       $154.16  $156.53 
($/ton)  Avg.       $141.31  $143.49 
   Low   $120.56  $122.54      $128.47  $130.44 
Straw  Price  ($/bale)  $3.50     $3.50  
Gross 
Rev. 
Premium:  High      $894.70  $867.21  $517.62 
  ($/acre)  Avg.      $805.23  $768.34  $474.49 
    Low      $641.85  $634.93  $431.35 
    None  $478.16 $404.08 $602.19 $389.00 $577.37 $431.35 
Net  
Return  
Premium:  High           $657.28  $411.27  $399.09 
  Avg.      $567.81  $312.39  $355.96 
  Low      $404.42  $178.99  $312.82 
  None  $87.99 $302.64 $215.94 $151.57 $121.43 $312.82 
 
 
 

AJAE Appendix: The Profitability of Transitioning to Organic Grain Crops in Indiana

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