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Crop budgets may need last-minute update

A farm’s crop mix for 2012 may need to be adjusted following the USDA’s crop report released last week. Farms can use this new Crop Budget Simulation Template, which has been updated to reflect current costs.

With commodity markets now focused on the 2012 production year, most farms have put together the final adjustments to their 2012 crop budgets and crop rotation plans.

However, if you are starting to second guess your plan and want to do some quick evaluations of how your current crop mix will stack up, you can consider your options by utilizing a crop production cost template (2012 Crop Budget Simulation Template) provided by a Michigan State University Extension educator.

You can find two updated excel template versions available for your consideration.

One template will allow you to input your farm’s seed, fertilizer and chemical options, and use a set of custom machine costs to allow you to look at how your farm could cover some of its fixed and overhead costs.

The second option is a more detailed production and cost budget that asks you to estimate your farm’s overhead and operational costs.

Both templates are designed to allocate your farm’s production costs on a crop by crop format giving you a picture of how your crop-mix compares using a similar budget format. These templates are a quick way for you to compare the expected returns for each crop enterprise.

Every farm has the challenge of pulling together their own farm’s cost estimates and the projection of their potential returns.

Using a computer simulation model allows you the option to quickly make adjustments to current changes in the cost of inputs or the crop market price shifts and estimate various “What ifs?” These “What if?” events that impact your farm’s bottom line each day depending on a wide variety of variables from weather to political events that are taking place around the world.

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