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  M170 Cost of

Producing Soybeans

Farm Management Library

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Soybeans as a U.S. crop:

• Soybean acreage is 2nd after corn.

• Soybeans make up about 23% of U.S.

planted acreage.

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Top seen soybean states:

• 70% of U.S. soybean crop from 7 Midweststates• !llinois

• !owa

• !ndiana

• Minnesota

• Missouri• "ebraska

• #$io

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!e"t # soybean$producing

states:

•  not$er 23% from eig$t ad&oining states•  rkansas

• S. 'akota

• (ansas

• ". 'akota

• Mic$igan

• Mississippi• (entucky

• )isconsin.

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More soybean$gro%ing states:

•  lso grown in ot$er Mississippi 'elta andeastern states• *ouisiana

• Maryland

• +irginia

• ,ennsyl-ania

• ". arolina• S. arolina

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Costs ary %ide&y '

/ig$ost ,roducers

• 14.5 per acre

• 3 bus$els per acre

•  -erage cost of 16.5per bus$el

*owost ,roducers

• 107.2 per acre

• 60 bus$els per acre

•  -erage cost of 12.6per bus$el

• 13. per bus$el difference in a-erage costslow and $ig$ soybean costs

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(ifference bet%een )ig)$ and

&o%$cost soybean producers:

/ig$cost producers

• More fertili8er 

• More likely to useirrigation

*owcost producers

• More conser-ation tillage

• *ower mac$ineryin-estments

• *ower operating costs

• *ess power re9uired

• :ewer trips

• More acres to spreade9uipment costs

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*egiona& cost differences +

t)e ,eart&and

• *owest costs; $ig$est yields.

• )ellsuited climate; soil and topograp$y

• Mississippi <i-er transportation• onser-ation tillage

• More soybean

acreage per farm• Soybean=corn

rotation

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*egiona& cost differences + -estern

Corn e&t/ eastern 0reat P&ains:

• ,arts of (ansas; "ebraska and t$e 'akotas

• *ower yields t$an orn >elt but lower -ariable costs

• *arge acreages butsmaller percentageplanted to soybeans

• *ikely to rotatesoybeans wit$ a

small grain; or grain sorg$um

• May re9uire irrigation

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*egiona& cost differences + !ort)ern

Crescent:

• osts $ig$er t$an t$e orn >elt and westernarea.

• !ncludes )isconsin; Mic$igan; nort$ern #$io;,ennsyl-ania andt$e "ort$east

• More per acre onfertili8er; customoperations; fueland repairs

• on-entionaltillage more likely

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*egiona& cost differences + (e&ta and

Sout)eastern U.S.:

• *ower yields; e9ual or $ig$er costscompared to orn >elt

• *arge acreage farms• Spend more on seed; c$emicals; fuel and

repairs

• ontinuous soybean cropping

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(oub&e cropping:

• 2 crops in one season

• May be soft red winter ?S<)@ w$eat

followed by soybeans• ommon in t$e sout$ern edge of t$e orn

>elt; t$e 'elta and sout$east states

• Aields are lower.• :iBed costs are spread between two

crops.

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T%o 1inds of costs:

• +ariable costs C direct eBpenses re9uiredto grow a crop.

• DBamples seed; fertili8er • <elated to number of acres planted

• :iBed o-er$ead costs

• DBamples e9uipment; taBes; insurance• osts related to time; not output

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ST"%!&T-P"T"&S'# and !(")#"T *'+ are registered trademars of Stewart-Peterson Inc

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Graphics were adapted from one provided by the USDA Economic Research Service.