Duvick, Richard D.

Schnitkey, Gary D.

Watkins, Brian H.

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The Ohio State University ESO 944 Department of Agricultural Economics and Rural Sociology 1981 SOYBEAN ENTERPRISE SUMMARY 2120 Fyffe Road Columbus, Ohio 43210 by Phone 614 422-7911 Richard D. Duvick, Gary D. Schnitkey and Brian H. Watkins August, 1982 Each year, approximately 400 Ohio farmers send their production and f inan-cial records to The Ohio State University for computerized analysis through the Ohio Farm Business Analysis Program. Twenty-nine of the most complete and accurate soybean enterprise records received were summarized to prepare this report. Table 1 (on the back of this page) gives an overview of financial and pro-duction information for soybean enter-prises in 1981, as well as comparisons to 1980 and 1979. The 1981 data is divided into upper 50%, average, and lower 50% groups based on a ranking of unpaid labor and management income. The table helps illustrate that 1981 was not a good year for soybean growers as the average soybean enterprise earned a negative return to labor and manage-ment of $-14.41 per acre. It is import-ant to note, however, the vast differ-ence between upper 50% and lower 50% soybean enterprises. Good management is certain to have been a key factor in the success of the upper 50% group. One important characteristic of the upper group is its low total investment, which significantly lowered its cost of interest not charged or interst on owner equity. Figure 1 illustrates income and ex-pense trends over time for soybean enter-prises. Although the margin between in-come and expenses had been narrowing in recent years, 1981 was the first year to show a significant loss for soybean growers. Both cash and non-cash expenses had been rising steadily and the significant drop in value of production in 1981 led to the losses. The major cause for the drop in value of production was lower market prices for soybeans. Figure 2 offers the same information as Figure 1, but presents it in a per bushel framework. One can see that the drop in value per bushel of soybeans from 1980 to 1981 was the most significant pro-fit-inhibiting factor for the soybean producer in 1981. FIGURE 1 -- INCOME AND ExPENSES OF PER ACRE SOYBEAN PRODUCTION, OHIO, F.8.A., 1973-81 $ P!R ACRE 225 200 175 150 125 100 75 50 25 I I I I ,---..J /.,,.,.... / I ', I ,, ,_/ -- TOJ'AL VALUE OP PROOUC'll(ll / ~/ TOT AL COST OF PllODUCTICll CASH CCST OF PROOUCTICll 73 74 75 76 17 78 79 80 81 YEAR 24 24 21 35 39 35 34 34 29 RO. or FAlllS FIGURE 2 -- VALUE AND EXPENSES OF PER BUSHEL SOYBEAN PRODYCTION, OHIO, F.8.A. 1973-1981 $ PER IUSHEL 8.00 7.00 6.00 5.00 4.00 3.00 2.00 -r 71 27 VALUE PER BUSHEL T()'[AL COST PER BUSHEL CASH COST PER BUSHEL 74 75 76 16 31 37 77 35 71 VO II YI.All 31 )6 32 ll IUIHILS/ACU OCT 6 19~3 TIB.E 1-~ PROOOCTl<W ItF~TI<W C»ilO FARtl BUSlt£55 fNl.YSIS ~ 1979 - 81 --1981 1988 1979 J lffER ~ flYERf« UIER ~ fWEIRE fWEIRE PER ftRE PER ftRE PER ftRE PER ftRE PER ftRE TOTil. Yfl.l£ CF PROOOCT I<W $ 228. 28 216. 97 284.48 247.88 23147 CASH EXPENSES HIRED um $ s. 88 4.95 4.88 1. 74 2. 24 FMl'I SlfPLIES $ 1188 14.25 14. 75 15. 85 15. 75 tlOtU£ REPAIRS $ 8. 71 18.82 1117 8. 72 12. 69 . BUILD, FEta. ETC. $ . 78 1. 25 1. 96 1. 8l 2.18 REL OIL & ~ $ 11. 74 14.96 18. :n 12. 67 11. 81 UTILITIES <FMM StflRE $ . 68 1. 81 137 .98 128 DRYit«J fH) STCRAf.£ $ 122 132 143 .68 117 ttISC. EXPENSE $ 1. 56 2.19 4. 78 184 187 SEEDS fH) PUWTS $ 16.61 16. 27 15. 91 14.84 11. 83 FERTILIZER fH) Lii£ $ 22. 97 21. 78 28. 38 19.18 18. 74 IR:HltE HIRED TROCl<It«J $ 2. 99 2. 58 194 2. 76 5. 68 fllTO E)(fEN5E <FfRI Slff!E) $ . 72 148 2. :n 113 136 INTEREST ~ tllTES $ 27.52 28. 29 29.15 l8. 95 22. 73 TMS <Fffm StflRE $ 171 179 187 177 3.52 R£NT $ 37.36 l2. l5 26. 78 24.38 27. 43 INSlRfH:E <FfRI SIRE $ 2. 98 127 169 188 188 TOTfl. CASH EXPENSES $ 158. 99 168. Je 16166 151. 44 14168 f04-CASH EXPENSES TOTfl. DEPRECIRTI<W $ 28. 88 3168 44.66 26. 94 27.88 LtffID CfR. fH) Ffl'l LIRl(R $ 18. 39 22. 54 26. 76 24.46 21.11 ..) INTEREST t«>T ClflRGED $ 27.44 39.48 52. 69 l2. 38 37.98 TOTfl. tOH:RSH EXPENSES $ 65. 83 9162 124.11 88. 78 96. 71 TOTfl. EXPENSES CF PROOOCTI<W $ 224.82 25192 287. 77 248. 22 238. li tftRE£NT Itm£ Ill> PRCFIT $ 138 -36. 95 -8129 7.58 116 Yfl.l£ CF PROOOCTI~ - CASH COSTS $ 69.21 56.67 48. 82 96. 36 89.87 LIFAID UllCR Ill> tRRE£NT Itm£ TOTfl. PER aE $ 21. 77 -14.41 -56. 53 l2. 84 24.27 PER !OR $ 6. 51 -ll4 -18. 48 5. 63 4.88 (£tER. ltF~TI~ tUllER CF fw::RES t«>. 119 11l 187 115 88 Yll.lE PER Bt.S£l. PROOOCED $ 6. 54 6. 58 6. 45 7.58 6. 48 TOTII. COST PER Bl9£l. PROOOCED $ 6. 44 7. 61 9.88 7.27 6. 39 CASH COST PER Bt.S£l. PROOUCED $ 4.56 4.88 5.16 4.58 199 PER ftRE ItFtRMTI~ PER ftRE PER ff:RE PER ftRE PER ff:RE PER aE BS£l..S PROOUCED BU. 34.89 D. 38 3178 D.84 l6. 8l flD)OCTIYE tlW IGK llfITS t«>. .45 .54 .63 .54 .58 Yfl.l£ CF UllCR USED $ 24.19 27.49 38. 76 26. 28 2135 TOTfl. INYESTl£NT $ 618. 78 752.12 989. 48 792. 5l 888. 48 AEllRN elf INYESTl£NT $ 58. 34 38. 74 -145 78. 91 6l. 79 PERCENT REl\RN <W INYEST1£NT :( 9.6 4.1 -8. 2 18. 8 7.9 lRllYER $/$ .374 . 288 .225 .lil .298 J NI (f FfRtS t«>. 15 29 14 34 34 

1981 Soybean Enterprise Summary

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1981 Soybean Enterprise Summary

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