Defender Crop: Corn

• Yield: 165 bu/ac
• Price: $3.30/ bu
• Pre-Harvest Costs: $250.00/ac
• Harvest Costs: $35.00/ac
• Drying and Marketing Costs (D&M Costs): $0.30/bu

Challenger Crop: Soybeans

• Pre-Harvest Costs: $185.00/ac
• Harvest Costs: $25.00/ac
• Drying and Marketing Costs (D&M Costs): $0.15/bu.
• Expected Yield: 47 bu/ac
• Expected Price: $9.40/ bu

Complete worksheet below using the data on the previous page. (35 points) BREAKEVEN ANALYSIS FOR COMPARING ALTERNATIVE CROPS WORKSHEET For Comparative Break-Even Analysis Comparing a Challenge with a Defender Defender Crop: 1. Yield /acre 2. Price, $/_ 3. Gross Revenue (GR = Yield X Price) (Line 1 x Line 2) Variable Costs 4. Preharvest Costs $/acre 5. Harvest Costs $/acre 6. Drying and Marketing Costs a. $ b . 7. Sum of Variable Costs (VC = Line 4 + Line 5 + Line 6b) 8. Returns To Fixed Costs (RTFC = GR - VC) Challenger Crop: Variable Costs 9. Preharvest Costs $/acre 10. Harvest Costs $/acre 11. Drying and Marketing Costs a. $ b. 12. Sum of Variable Costs (VC = Line 9 + Line 10 + Line 11b) To bid land away, Return To Fixed Costs Challenger must be greater than Return To Fixed Costs Defender To Calculate the breakevens of the Challenger: Breakeven Price = (VC Challenger + RTFC Defender) : Yield Challenger 13. Yield of Challenger /acre 14a. + C.. .) + d. Breakeven Yield = (VC Challenger + RTFC Defender) : Price Challenger 15. Price of Challenger $/ 16a. = (b. + c. . ) + d