The commodity prices in the Crop Comparison Tool are an estimate of the season average farm price based on harvest time futures contracts and adjusted for expected basis (except for peanuts). Peanut prices are based on contracts priced on a portion of production and an estimate of harvest time price.
As we saw last year, prices can vary and change rapidly as market fundamentals change. There is still much uncertainty that exists in the market as a result of the ongoing pandemic. Updates to the crop comparison tool will be made as needed up until planting season. You will be notified of these changes.
Growers are advised to use the individual crop enterprise budgets as a guide and to modify the numbers to reflect their production practices and costs. This will help them estimate their cost of production and breakeven price. Once the cost of production has been calculated, growers should price at least a portion of their crop above the cost of production or breakeven price.
Furthermore, the information in the budgets can be entered into the crop comparison tool to evaluate which crops have the potential to generate more return and aid in their planting decisions. Another useful component of the tool is that it can also help growers calculate their breakeven yield.
The 2021 Row Crop Enterprise Budgets and Crop Comparison Tool can be found here.