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Developed
By Don Shurley and Nathan Smith Department of Agricultural and Applied Economics |
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The
Crop Comparison Decision Aid (CCDA) is a very quick and simple tool
(Excel spreadsheet) to allow the user to (a) calculate net returns for
up to 5 crops and (b) to conduct a “break-even” comparison of 2 crops. Calculate
and Compare Net Returns. The top (gold) section of the spreadsheet allows
the user to enter 5 crops and their respective expected per acre yields,
prices, and per acre variable costs.
The unit in which the yield and price is entered must be the
same. For example, if for peanuts the yield is entered
in pounds/acre, the price must also be per pound not per ton. UGA Cooperative Extension Service budget estimates
(South
Georgia Crop Enterprise Cost Analysis 2004, AGECON-04-90) may be used as a guide but users should
use their own cost estimates. It is assumed that producers already own all equipment needed for production and harvest or will custom hire as needed. Therefore, only the “Variable Costs” need to be considered and should include custom work if applicable. Land rent would not need to be included unless varying with the crop grown. Net Return per acre is automatically calculated for
each crop entered. Break-Even
Analysis For Two Crops. The bottom (yellow)
section of the spreadsheet allows the user to determine the price and
yield for any 2 crops that would provide equivalent Net Returns. For any 2 crops, enter the crop name, yield,
price, and variable cost. This
can be entered directly or you may “copy and paste” from the top section. The Net Return per acre for both crops will
be shown. For
the second (bottom) crop listed, on the right side of the yellow section
is a “break-even analysis” which shows the price and yield (in blue)
for that crop that would be needed to provide the same Net Return as
the first (top) crop listed. If
the reverse comparison is desired (if you wish to find the break-even
price and yield for the first crop listed) then simply reverse the top
and bottom order of the 2 crops. For
the assumed yield, the break-even analysis on the top line shows the
price (in blue) that would be needed.
The other crop will provide higher net return if price is not
equal to or better than this. For
the assumed price, the break-even analysis on the second line shows
the yield (in blue) that would be needed.
The other crop will provide higher net return if yield is not
equal to or better than this. Understand
The Results. The decision on which crop to plant is based
on expected prices, yields, and costs.
Prices can and will change between the time
a planting decision is made and the crop is sold.
Prices are risky and are fixed only if contracted. Yields and costs may also be different than
expected. So Net Returns are
not guaranteed and producers can only make decisions based on the best
information available at the time and their expectations about the future. Questions. For further information or assistance,
please contact your local County Extension Agent or you may contact: Don
Shurley 229-386-3512 Nathan
Smith 229-386-3512 |
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