Cost Per Bushel of Corn Calculator
Easily calculate the cost to produce one bushel of corn. This metric is crucial for understanding profitability and making informed farm management decisions.
Enter your total production costs and the total bushels harvested to find your cost per bushel. Ensure consistent units (e.g., dollars and bushels).
Calculate Your Cost Per Bushel
Understanding Cost Per Bushel
What is Cost Per Bushel?
Cost Per Bushel is a key farm financial metric that represents the total expense incurred to produce and store one bushel of grain (in this case, corn). It is calculated by dividing the total cost of production for a specific area or field by the total number of bushels harvested from that area.
Cost Per Bushel Formula
The formula is straightforward:
Cost Per Bushel = Total Cost of Production / Total Bushels Produced
Knowing this number helps farmers determine their break-even price and profitability.
What Costs to Include?
To get an accurate cost per bushel, it's essential to include *all* relevant costs, both variable and fixed. This typically includes:
- Operating Costs: Seed, fertilizer, chemicals, fuel, repairs, custom work, drying, hauling, crop insurance.
- Overhead Costs: Land costs (rent or ownership), labor (hired and owner draw), depreciation, insurance, utilities, interest on loans.
Cost Per Bushel Examples
Click on an example to see the step-by-step calculation:
Example 1: Basic Calculation
Scenario: A farmer spends $50,000 to grow corn and harvests 10,000 bushels.
1. Known Values: Total Cost = $50,000, Total Bushels = 10,000.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Cost Per Bushel = $50,000 / 10,000 bushels
4. Result: $5.00 per bushel.
Conclusion: It cost the farmer $5.00 to produce each bushel.
Example 2: Higher Yield
Scenario: Costs are $60,000, but with better weather, the farmer harvests 15,000 bushels.
1. Known Values: Total Cost = $60,000, Total Bushels = 15,000.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Cost Per Bushel = $60,000 / 15,000 bushels
4. Result: $4.00 per bushel.
Conclusion: Higher yield lowered the cost per bushel despite higher total costs.
Example 3: Increased Costs
Scenario: The farmer harvests 10,000 bushels, but input costs rose, leading to a total cost of $55,000.
1. Known Values: Total Cost = $55,000, Total Bushels = 10,000.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Cost Per Bushel = $55,000 / 10,000 bushels
4. Result: $5.50 per bushel.
Conclusion: Increased total costs directly raised the cost per bushel.
Example 4: Large Scale Farm
Scenario: A large operation has total costs of $1,500,000 and harvests 350,000 bushels.
1. Known Values: Total Cost = $1,500,000, Total Bushels = 350,000.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Cost Per Bushel = $1,500,000 / 350,000 bushels
4. Result: ~$4.29 per bushel.
Conclusion: The cost per bushel for this large farm is approximately $4.29.
Example 5: Test Plot
Scenario: A farmer tracks costs for a small test plot, spending $350 and harvesting 70 bushels.
1. Known Values: Total Cost = $350, Total Bushels = 70.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Cost Per Bushel = $350 / 70 bushels
4. Result: $5.00 per bushel.
Conclusion: The cost per bushel on the small plot is $5.00.
Example 6: Low Yield Year
Scenario: Due to drought, harvest is only 8,000 bushels with total costs of $52,000.
1. Known Values: Total Cost = $52,000, Total Bushels = 8,000.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Cost Per Bushel = $52,000 / 8,000 bushels
4. Result: $6.50 per bushel.
Conclusion: Low yield significantly increased the cost per bushel.
Example 7: Detailed Cost Breakdown
Scenario: Input Costs = $25,000, Labor = $10,000, Land Rent = $12,000, Equipment = $8,000. Harvest is 11,000 bushels.
1. Known Values: Total Cost = $25,000 + $10,000 + $12,000 + $8,000 = $55,000. Total Bushels = 11,000.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Cost Per Bushel = $55,000 / 11,000 bushels
4. Result: $5.00 per bushel.
Conclusion: Including all cost categories gives an accurate per-bushel cost.
Example 8: Impact of Lower Input Costs
Scenario: Total costs are reduced to $48,000 through careful purchasing. Harvest is 10,000 bushels.
1. Known Values: Total Cost = $48,000, Total Bushels = 10,000.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Cost Per Bushel = $48,000 / 10,000 bushels
4. Result: $4.80 per bushel.
Conclusion: Reducing total costs lowers the cost per bushel.
Example 9: Combining High Yield & Cost Control
Scenario: Total costs are $58,000 (moderate increase), but yield is high at 14,500 bushels.
1. Known Values: Total Cost = $58,000, Total Bushels = 14,500.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Cost Per Bushel = $58,000 / 14,500 bushels
4. Result: ~$4.00 per bushel.
Conclusion: Combining yield increases and cost management leads to a lower cost per bushel.
Example 10: Zero Bushels Scenario (Error Check)
Scenario: A complete crop failure results in 0 bushels, with costs still incurred ($20,000).
1. Known Values: Total Cost = $20,000, Total Bushels = 0.
2. Formula: Cost Per Bushel = Total Cost / Total Bushels
3. Calculation: Division by zero is mathematically undefined.
4. Result: The calculator should output an error.
Conclusion: You cannot calculate a cost per bushel if zero bushels were produced. This highlights the financial loss.
Frequently Asked Questions about Cost Per Bushel
1. What is Cost Per Bushel of Corn?
It's the total expense incurred to produce and harvest one bushel of corn, calculated by dividing total production costs by total bushels produced.
2. How is Cost Per Bushel Calculated?
The calculation is Total Cost of Production divided by Total Bushels Produced.
3. Why is knowing my Cost Per Bushel important?
It's essential for determining your break-even price (the price needed per bushel to cover all costs), assessing profitability, and comparing performance year-to-year or field-to-field.
4. What costs should be included in Total Cost of Production?
Ideally, include *all* costs: variable costs like seed, fertilizer, chemicals, fuel, repairs, drying; and fixed costs like land, labor, depreciation, insurance, and interest.
5. What happens if I enter zero bushels?
The calculator will give an error because you cannot divide by zero. If you had a crop failure, your cost per bushel is technically infinite, meaning you didn't produce anything to sell against your costs.
6. Can I use this for crops other than corn?
Yes, the formula and concept apply to any crop where you measure yield in bushels (e.g., soybeans, wheat, barley). Just input the total costs and total bushels for that specific crop.
7. How can I lower my Cost Per Bushel?
You can lower it by either reducing your total costs of production (becoming more efficient with inputs, negotiating prices, etc.) or increasing your total bushels produced (improving yield through better management, genetics, etc.) while managing costs.
8. Is a lower Cost Per Bushel always better?
Generally, yes. A lower cost per bushel means you have a larger margin between your production cost and the market price, leading to higher profitability per bushel.
9. Should I calculate this per farm or per field?
Calculating it per field provides more detailed insights into which areas are most profitable and where management changes might have the biggest impact. Calculating it for the entire farm gives an overall profitability picture.
10. What units should I use for cost and bushels?
Use consistent units. If your costs are in U.S. Dollars ($), your output will be $/bushel. Just ensure your 'Total Cost' and 'Total Bushels' inputs correspond to the same period and area.
