Farm finance
Crop farm finance
Breakeven crop prices, insurance and machinery costs
- Copy the acceptable crop price worksheet to your workspace to determine breakeven prices for your crops. You can also download a PDF version.
- Prevented planting: Crop insurance and tax considerations — Options for farmers with federal crop insurance who have not been able to plant by a given crop’s final planting date or have drowned out areas in fields.
- Machinery cost estimates: What does it cost to own and operate farm machinery? Machinery costs are substantial; control of them is important. View document with machine costs separated into time-related and use-related categories.
CropCost tool
CropCost is an excellent tool for identifying the production cost of each crop you grow, as well as the breakeven cost of production at varying yields and expense levels. Once you have the data you need to develop your budgets, CropCost can help you put your numbers to work.
This tool helps you determine the production cost for each crop, identify breakeven costs at varying yields and expense levels, and compare scenarios to make informed decisions.
Cover crop economic decision tool
The Midwest Cover Crops Council Cover Crop Decision Tool offers an interactive, visual method to evaluate different cover crop species in your cash crop rotation. The benefits of cash crop yields from cover crops are calculated in a multi-year analysis based on yield increases. The interface and data have recently been updated, and information on individual species is provided based on SARE’s (Sustainable Agriculture Research and Education) free publication, Managing Cover Crops Profitably. Also see SARE’s analysis of the economics of cover crops.
Minnesota regional crop budgets
These budgets use data from FINBIN. They are examples and can serve as a helpful starting point for planning. However, using your actual costs to tailor budgets to your specific operation would be more valuable.
View the 5-year average, past year actual, and this year’s projected data of income and expenses for northwest, central, south central, and southwest Minnesota.
Corn
| Corn | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 154.65 | 165.05 | 165 |
| Price | $4.75 | $4.12 | $4.00 |
| Misc Income | $42.98 | $45.65 | $42.00 |
| Total Revenue | $777.57 | $725.66 | $702.00 |
| Expenses | nul | nul | nul |
| Seed | $97.07 | $106.11 | $109.00 |
| Fertilizer | $158.59 | $163.21 | $165.00 |
| Chemicals | $33.37 | $34.20 | $35.00 |
| Crop Insurance | $23.43 | $24.60 | $25.00 |
| Fuel & Machinery | $154.46 | $169.71 | $170.00 |
| Land Rent | $128.82 | $133.36 | $130.00 |
| Other | $85.21 | $104.47 | $105.00 |
| Total Expenses | $680.95 | $735.66 | $739.00 |
| Net Income | $96.62 | $(10.01) | $(37.00) |
| COP | $4.38 | $4.28 | $4.48 |
Soybeans
| Soybeans | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 36.53 | 38.05 | 39 |
| Price | $11.70 | $9.69 | $10.00 |
| Misc Income | $39.37 | $42.15 | $40.00 |
| Total Revenue | $466.77 | $410.85 | $430.00 |
| Expenses | nul | nul | nul |
| Seed | $60.64 | $63.98 | $65.00 |
| Fertilizer | $28.74 | $33.60 | $36.00 |
| Chemicals | $41.96 | $49.74 | $51.00 |
| Crop Insurance | $18.80 | $18.44 | $19.00 |
| Fuel & Machinery | $89.16 | $97.43 | $105.00 |
| Land Rent | $114.68 | $125.51 | $130.00 |
| Other | $44.85 | $54.72 | $60.00 |
| Total Expenses | $398.83 | $443.42 | $466.00 |
| Net Income | $67.94 | $(32.57) | $(36.00) |
| COP | $10.39 | $10.62 | $11.95 |
Spring wheat
| Spring Wheat | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 64.27 | 73.77 | 70 |
| Price | $7.16 | $5.63 | $5.50 |
| Misc Income | $37.25 | $49.88 | $45.00 |
| Total Revenue | $497.42 | $465.21 | $430.00 |
| Expenses | nul | nul | nul |
| Seed | $27.12 | $30.26 | $32.00 |
| Fertilizer | $121.28 | $130.13 | $135.00 |
| Chemicals | $38.79 | $46.07 | $48.00 |
| Crop Insurance | $15.73 | $14.66 | $15.00 |
| Fuel & Machinery | $89.58 | $100.22 | $110.00 |
| Land Rent | $111.46 | $120.64 | $130.00 |
| Other | $47.98 | $60.08 | $65.00 |
| Total Expenses | $451.94 | $502.06 | $535.00 |
| Net Income | $45.48 | $(36.85) | $(105.00) |
| COP | $6.75 | $6.16 | $7.64 |
Sugar beets
| Sugar Beets | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 28.01 | 30.41 | 30 |
| Price | $64.43 | $76.19 | $65.00 |
| Misc Income | $21.27 | $17.79 | $15.00 |
| Total Revenue | $1,825.95 | $2,334.73 | $1,965.00 |
| Expenses | nul | nul | nul |
| Seed | $250.44 | $284.51 | $290.00 |
| Fertilizer | $112.69 | $126.63 | $130.00 |
| Chemicals | $142.11 | $149.03 | $154.00 |
| Crop Insurance | $38.34 | $42.09 | $45.00 |
| Fuel & Machinery | $328.71 | $379.30 | $390.00 |
| Land Rent | $154.78 | $173.00 | $170.00 |
| Other | $354.44 | $451.10 | $465.00 |
| Total Expenses | $1,381.51 | $1,605.66 | $1,641.00 |
| Net Income | $444.45 | $729.07 | $321.00 |
| COP | $53.00 | $56.92 | $54.80 |
Hybrid rye
| Hybrid Rye | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 68.15 | 91.66 | 100 |
| Price | $6.47 | $6.21 | $6.00 |
| Misc Income | $17.60 | $30.86 | $- |
| Total Revenue | $458.53 | $600.07 | $600.00 |
| Expenses | nul | nul | nul |
| Seed | $37.47 | $45.82 | $45.00 |
| Fertilizer | $105.49 | $115.53 | $120.00 |
| Chemicals | $15.29 | $15.10 | $20.00 |
| Crop Insurance | $7.97 | $9.66 | $10.00 |
| Fuel & Machinery | $124.63 | $154.95 | $150.00 |
| Land Rent | $66.12 | $49.08 | $90.00 |
| Other | $50.41 | $56.88 | $20.00 |
| Total Expenses | $407.38 | $447.02 | $455.00 |
| Net Income | $51.15 | $153.05 | $145.00 |
| COP | $6.11 | $4.80 | $4.55 |
Corn
| Corn | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 185.27 | 178.17 | 190 |
| Price | $4.86 | $4.22 | $4.00 |
| Misc Income | $48.85 | $65.71 | $55.00 |
| Total Revenue | $949.26 | $817.59 | $815.00 |
| Expenses | nul | nul | nul |
| Seed | $108.58 | $120.93 | $125.00 |
| Fertilizer | $170.20 | $172.66 | $175.00 |
| Chemicals | $37.76 | $38.71 | $40.00 |
| Crop Insurance | $26.98 | $26.61 | $30.00 |
| Fuel & Machinery | $166.76 | $186.95 | $190.00 |
| Land Rent | $200.11 | $211.40 | $205.00 |
| Other | $94.38 | $106.03 | $100.00 |
| Total Expenses | $804.77 | $863.29 | $865.00 |
| Net Income | $144.49 | $(45.70) | $(50.00) |
| COP | $4.28 | $4.54 | $4.55 |
Soybeans
| Soybeans | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 48.26 | 43.82 | 50 |
| Price | $11.76 | $9.91 | $10.00 |
| Misc Income | $29.70 | $56.27 | $45.00 |
| Total Revenue | $597.24 | $490.53 | $545.00 |
| Expenses | nul | nul | nul |
| Seed | $54.04 | $55.83 | $57.00 |
| Fertilizer | $24.00 | $32.37 | $35.00 |
| Chemicals | $59.13 | $64.64 | $65.00 |
| Crop Insurance | $23.50 | $22.01 | $24.00 |
| Fuel & Machinery | $99.50 | $107.45 | $115.00 |
| Land Rent | $195.52 | $209.53 | $205.00 |
| Other | $48.16 | $55.07 | $60.00 |
| Total Expenses | $503.85 | $546.90 | $561.00 |
| Net Income | $93.39 | $(56.37) | $(16.00) |
| COP | $10.20 | $11.23 | $11.22 |
Spring wheat
| Spring Wheat | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 52.18 | 47.12 | 55 |
| Price | $7.00 | $5.63 | $5.50 |
| Misc Income | $50.14 | $69.75 | $55.00 |
| Total Revenue | $415.40 | $335.04 | $357.50 |
| Expenses | nul | nul | nul |
| Seed | $30.31 | $32.77 | $34.00 |
| Fertilizer | $108.94 | $109.84 | $115.00 |
| Chemicals | $31.49 | $38.71 | $39.00 |
| Crop Insurance | $10.95 | $9.85 | $10.00 |
| Fuel & Machinery | $95.43 | $94.72 | $96.00 |
| Land Rent | $164.58 | $171.09 | $205.00 |
| Other | $46.21 | $44.40 | $40.00 |
| Total Expenses | $487.91 | $501.38 | $539.00 |
| Net Income | $(72.50) | $(166.34) | $(181.50) |
| COP | $8.56 | $8.93 | $9.80 |
Hybrid rye
| Hybrid Rye | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 46.04 | 58.51 | 65 |
| Price | $7.27 | $6.79 | $6.00 |
| Misc Income | $132.21 | $133.37 | $55.00 |
| Total Revenue | $466.92 | $530.65 | $445.00 |
| Expenses | nul | nul | nul |
| Seed | $32.44 | $31.84 | $32.00 |
| Fertilizer | $61.86 | $43.12 | $64.00 |
| Chemicals | $11.35 | $14.91 | $15.00 |
| Crop Insurance | $3.50 | $2.46 | $4.00 |
| Fuel & Machinery | $128.15 | $120.44 | $125.00 |
| Land Rent | $141.39 | $146.70 | $144.00 |
| Other | $54.70 | $60.05 | $60.00 |
| Total Expenses | $433.39 | $419.52 | $444.00 |
| Net Income | $33.52 | $111.13 | $1.00 |
| COP | $7.24 | $5.46 | $6.83 |
Corn
| Corn | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 201.76 | 171.26 | 200 |
| Price | $5.07 | $4.53 | $4.00 |
| Misc Income | $52.23 | $126.58 | $100.00 |
| Total Revenue | $1,075.15 | $902.39 | $900.00 |
| Expenses | nul | nul | nul |
| Seed | $117.18 | $128.42 | $130.00 |
| Fertilizer | $191.10 | $198.43 | $200.00 |
| Chemicals | $50.20 | $53.04 | $54.00 |
| Crop Insurance | $29.71 | $27.80 | $29.00 |
| Fuel & Machinery | $172.80 | $191.64 | $190.00 |
| Land Rent | $246.29 | $260.51 | $255.00 |
| Other | $100.90 | $110.07 | $125.00 |
| Total Expenses | $908.18 | $969.91 | $983.00 |
| Net Income | $166.97 | $(67.53) | $(83.00) |
| COP | $4.46 | $5.04 | $4.92 |
Soybeans
| Soybeans | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 59.49 | 52.07 | 55 |
| Price | $12.20 | $10.28 | $10.00 |
| Misc Income | $30.15 | $78.50 | $60.00 |
| Total Revenue | $755.93 | $613.78 | $610.00 |
| Expenses | nul | nul | nul |
| Seed | $55.02 | $58.13 | $58.00 |
| Fertilizer | $32.71 | $35.16 | $35.00 |
| Chemicals | $61.80 | $64.45 | $65.00 |
| Crop Insurance | $27.13 | $25.98 | $26.00 |
| Fuel & Machinery | $120.20 | $129.93 | $130.00 |
| Land Rent | $244.12 | $258.37 | $255.00 |
| Other | $58.75 | $67.13 | $68.00 |
| Total Expenses | $599.73 | $639.15 | $637.00 |
| Net Income | $106.42 | $(25.37) | $(27.00) |
| COP | $10.06 | $11.02 | $11.58 |
Corn
| Corn | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 198.02 | 173.49 | 200 |
| Price | $5.05 | $4.44 | $4.00 |
| Misc Income | $53.31 | $114.43 | $85.00 |
| Total Revenue | $1,053.31 | $884.73 | $885.00 |
| Expenses | nul | nul | nul |
| Seed | $116.71 | $129.50 | $130.00 |
| Fertilizer | $170.68 | $178.57 | $195.00 |
| Chemicals | $42.81 | $45.40 | $48.00 |
| Crop Insurance | $29.70 | $29.79 | $30.00 |
| Fuel & Machinery | $161.63 | $175.53 | $185.00 |
| Land Rent | $244.71 | $260.97 | $255.00 |
| Other | $87.32 | $97.03 | $100.00 |
| Total Expenses | $853.56 | $916.79 | $943.00 |
| Net Income | $199.75 | $(32.06) | $(58.00) |
| COP | $4.29 | $4.74 | $4.72 |
Soybeans
| Soybeans | 5-year average | 2024 | 2026 Projected |
|---|---|---|---|
| Yield | 55.16 | 47.46 | 57 |
| Price | $12.02 | $9.91 | $10.00 |
| Misc Income | $37.05 | $92.57 | $50.00 |
| Total Revenue | $700.07 | $562.90 | $620.00 |
| Expenses | nul | nul | nul |
| Seed | $53.28 | $55.42 | $58.00 |
| Fertilizer | $32.70 | $38.65 | $40.00 |
| Chemicals | $55.38 | $57.38 | $65.00 |
| Crop Insurance | $27.32 | $25.40 | $28.00 |
| Fuel & Machinery | $110.58 | $118.80 | $120.00 |
| Land Rent | $243.24 | $261.51 | $255.00 |
| Other | $53.29 | $59.84 | $70.00 |
| Total Expenses | $575.79 | $617.00 | $636.00 |
| Net Income | $124.28 | $(54.11) | $(16.00) |
| COP | $10.29 | $11.26 | $11.16 |
Farm financial management
A complete set of financial statements for agriculture includes a balance sheet, an income statement, a statement of owner’s equity and a statement of cash flows. Learn how to use these in your farm business.
The balance sheet provides a snapshot of your farm’s financial position on a single day—typically the last day of your fiscal year. It lists your assets and liabilities, and the difference between them is your net worth or equity. This statement shows the portion of your business that you own versus the portion that your lenders own. By comparing balance sheets over time, you can track your financial progress.
Learn what a balance sheet is and how it can help you understand your financial situation.
- A balance sheet lists assets, liabilities and net worth as of a specific date.
- Learn what terms on a balance sheet refer to, such as current, intermediate and long-term assets.
The income statement is like a movie of your farm’s financial activity over the past year. It includes all income from crops, livestock, government programs, and custom work, as well as all related expenses. Adjustments for inventory changes and depreciation help determine your net income or loss. This historical data is essential for understanding your farm’s performance over time and navigating agriculture’s cyclical nature.
An income statement measures profit or loss over a given period of time. View an example income statement and learn more about income statements, including:
- Steps in creating an accrual-adjusted income statement.
- What you can learn from an income statement.
The statement of owner’s equity is a financial statement that analyzes why a farmer’s net worth (or owner equity) changed over the past year. It is the most revealing of all financial statements.
The statement is divided into three groups, each examining a specific portion of a farm’s financial life: earnings, non-recurring items, and changes in capital assets and deferred liabilities.
The statement of cash flows or a long-range budget helps you plan for the future. By analyzing past and current financial data, you can make informed decisions to align your operations with your goals. These tools help you project income and expenses, evaluate scenarios, and ensure your farm remains financially sustainable.
The statement examines how cash has entered and left your financial life during the year.
- Understand the difference between cash flow and net profit.
- Create your own statement of cash flows to examine different sources and uses for cash.
Over the last few decades, significant progress has been made in standardizing financial statements in agriculture. This allows for ratios and measurements commonly used in other industries to become standard in the farmer’s financial world.
Key ratios and measurements, including liquidity, solvency, profitability, repayment capacity, and efficiency, have become standards in the agricultural industry and are derived from these financial statements.
- Learn different ways to measure liquidity, solvency, profitability, repayment capacity and efficiency.
- Learn about different ratios, including current ratio, debt-to-equity ratio and others.
Benchmarking enables you to research your farming business and identify opportunities to improve your financial position, efficiency, and profitability.
Learn more about developing and interpreting financial statements and key measures.
Resources to help you understand your finances
Economists from the Center for Farm Financial Management have developed Interpreting Financial Statements and Measures (IFSaM) to help you learn what your financial statements and ratios mean and how you can use them to improve farm decision-making. Find a free online course to get you started.
If you want more individual assistance in understanding your financial situation, the Southwest MN Farm Business Management Association can help. The Association is a membership-led organization of farms primarily in southwestern Minnesota. The focus is on improving members’ financial management skills, knowledge, and success.
The association provides members with analysis, confidential peer farm benchmarking, individual consultations and direct connections to university research and expertise.
Report on Minnesota farm finances
The finances (PDF) includes information about the state of agriculture in Minnesota.
The 2,349 Minnesota farms included in the FINBIN database represent a broad cross-section of Minnesota production agriculture. FINBIN data is provided by farms participating in Minnesota State Farm Business Management Education programs and the Southwestern Minnesota Farm Business Management Association.
Dairy farm finance
Get information on managing your dairy business.
- Managing margins
- Value-added opportunities
- Cost of production
- Robotics