What is break-even price and why do farmers calculate it?

Break-even price is the minimum commodity price (per bushel, per CWT, etc.) a farmer needs to receive to cover all costs of producing a crop — seed, fertilizer, chemicals, fuel, labor, land rent, equipment, and overhead. If the market price is above break-even, the crop is profitable. If below, it results in a loss. Farmers calculate break-even before planting season to decide whether to plant, hedge with futures contracts, or lock in forward contracts. It's the most fundamental number in crop f

What is the formula for crop break-even price per bushel?

Break-even price ($/bu) = total cost per acre ÷ yield per acre. If your cost of production is $800/acre and you expect 200 bu/acre, your break-even price is $800 ÷ 200 = $4.00/bu. Any market price above $4.00 generates profit; below generates a loss at that yield.

What is the formula for break-even yield per acre?

Break-even yield (bu/acre) = total cost per acre ÷ price per bushel. If your cost of production is $800/acre and corn is $4.50/bu, your break-even yield is $800 ÷ $4.50 = 177.8 bu/acre. You need at least 178 bu/acre to avoid a loss at that price.

What costs should I include in my crop cost of production?

Variable costs: seed, fertilizer, pesticides and herbicides, fuel and lubrication, irrigation (water cost and pumping energy), drying and storage, trucking and hauling. Fixed costs: cash rent or land ownership, crop insurance premiums, machinery depreciation and interest, building and equipment maintenance, farm overhead and labor.

What is a typical cost of production for corn per acre?

Irrigated corn typically costs $650–$950/acre including all variable and fixed costs. Midwest dryland corn typically runs $450–$650/acre. The biggest drivers are cash rent, fertilizer, and seed — which together typically represent 60–70% of total production costs.

How do I calculate net return per acre?

Net return per acre = (yield per acre × price per bushel) − total cost per acre. For example: 220 bu/acre × $4.50/bu = $990 gross revenue − $800 cost = $190 net return per acre. This is before any government program payments or other farm income.

What is a healthy profit margin for row crops?

A healthy row crop profit margin is typically 15–25% of gross revenue. Margins below 10% indicate high financial risk with limited cushion for yield or price variability. Many grain farms operated at negative or near-zero margins from 2023–2025 due to elevated input costs and lower commodity prices.

What is a break-even price per bushel?

Break-even price = total cost per acre ÷ expected yield (bu/acre). For example, $600/acre cost ÷ 200 bu/acre = $3.00/bu minimum price needed to cover production costs for corn.

What is a typical cost of production per acre for corn?

US corn production costs typically range $450–$850 per acre. In high-input irrigated production, corn often costs $600–$900/acre including water costs, reflecting higher irrigation and land expenses.

How do I calculate break-even yield per acre?

Break-even yield = total cost per acre ÷ expected price per bushel. For example, $600/acre ÷ $4.50/bu = 133 bu/acre needed to break even. If your expected yield is 180 bu/acre, you have 47 bu/acre of cushion above break-even.

What is a sensitivity table in crop budgeting?

A sensitivity table shows net return across a grid of price and yield combinations. It helps you see profit or loss at various market scenarios — for example, what happens if price drops 50¢ and yield comes in 10% below expectations.

Should I include cash rent in my break-even calculation?

Yes — cash rent is typically the largest single line item, often $150–$400/acre on productive ground. Excluding it would significantly understate your true break-even price and farming risk.

What crops does the break-even calculator support?

The calculator supports corn ($/bu), soybeans ($/bu), hard and soft wheat ($/bu), canola ($/bu or ¢/lb), dry edible beans ($/cwt), and a custom crop option with any price unit.

Calculadora de Punto de Equilibrio de Cultivo — Precio y Rendimiento Mínimos

Encuentre el precio mínimo por bushel y el rendimiento mínimo por hectárea necesarios para cubrir el costo de producción. Ingrese sus costos una vez — obtenga el precio de equilibrio, el rendimiento de equilibrio y una tabla de sensibilidad de 25 celdas con precio × rendimiento.

Find the minimum price per bushel and minimum yield per acre needed to cover your cost of production. Enter costs once — get break-even price, break-even yield, net return, and a price-yield sensitivity table.

📊

Crop Break-Even Calculator

Enter cost, yield, and price — get break-even price, break-even yield, net return, and a sensitivity table. Save up to 4 named scenarios for side-by-side comparison.

Break-even price · break-even yield · net return · price-yield sensitivity

Crop & Yield

Crop

Expected Yield

Irrigated corn: 220–280 bu/acre. Dryland avg ~180 bu/acre.

Expected Price

Enter your contract price, nearby futures price, or local cash price.

Cost of Production

Total Cost of Production ($/acre)

Include all variable costs (seed, fertilizer, chemicals, fuel, irrigation) and fixed costs (cash rent, crop insurance, machinery, overhead).

Farm Total (optional)

Total Acres

Adds farm-total revenue, cost, and net return to results.

Scenario Name (optional)

Year	Crop	Actual Yield	Price	Cost/ac	Net Return
No history yet. Add your first entry below.

Enter your crop, yield, price, and cost of production — then press Calculate to see your break-even price, break-even yield, net return, and sensitivity table.

📊 Related calculators: Cash Rent — once you know break-even price, find the max rent you can afford per acre. | Crop Yield — project bushels and gross revenue for your expected yield. | Grain Drydown — calculate net bushels after drying cost before finalizing your break-even.

Disclaimer — Break-even calculations are estimates for planning purposes only. For financing cost, see the Ag Loan Calculator. Scenario comparisons are saved in your browser's local storage and are not shared or synced across devices. Actual production costs, yields, and prices will vary.

How Crop Break-Even Analysis Works

Break-even analysis answers two questions every farmer needs before planting: what price do I need to cover my costs at this yield, and what yield do I need to cover my costs at this price? Both questions matter — because in any given year, price or yield (or both) will disappoint expectations.

This calculator builds a full enterprise budget — enter your cost of production per acre (either as a single total or itemized line by line) and your expected yield and price. The 5×5 sensitivity table then shows net return across 25 combinations of prices and yields around your base case, so you can see exactly how much price or yield risk you're carrying.

Use the Crop Yield Calculator to estimate gross revenue, and the Cash Rent Calculator alongside this tool to factor land cost into your break-even analysis.

Preguntas Frecuentes

El punto de equilibrio de un cultivo es el precio mínimo por bushel (o rendimiento mínimo por hectárea) necesario para cubrir todos los costos de producción sin ganancia ni pérdida. Los agricultores lo calculan para establecer precios mínimos de comercialización, evaluar la viabilidad de la siembra y tomar decisiones de arrendamiento de tierra.

Precio de equilibrio ($/bu) = Costo total por hectárea ÷ Rendimiento esperado (bu/ha). Ejemplo: costo de $2.000/ha con rendimiento esperado de 180 bu/ha = $2.000 ÷ 180 = $11,11/bu de precio de equilibrio.

Rendimiento de equilibrio (bu/ha) = Costo total por hectárea ÷ Precio esperado por bushel. Ejemplo: costo de $2.000/ha con precio esperado de $13,00/bu = $2.000 ÷ $13,00 = 153,8 bu/ha de rendimiento de equilibrio.

La tabla de sensibilidad muestra ganancia o pérdida para 25 combinaciones de precio × rendimiento. Las filas representan diferentes precios y las columnas diferentes rendimientos. Celdas verdes indican ganancia, rojas indican pérdida.

El arrendamiento de tierra es generalmente el mayor costo variable en una operación de cultivo. Use la calculadora de renta en efectivo (Cash Rent) junto con esta para determinar el arrendamiento máximo que puede pagar dado el precio esperado y el rendimiento esperado.