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Please help with this farm management partial budget. Also please ignore the writing, I think I am wrong. You are a retired landowner whose Conservation

Please help with this farm management partial budget. Also please ignore the writing, I think I am wrong. image text in transcribed
You are a retired landowner whose Conservation Reserve Program (CRP) contract for 100 acres will expire next year. You can renew your contract for another ten years and receive a payment of $130 per acre each year, but you wonder if it would be more profitable to put it into hay production and have it custom farmed. Provisions: 1. Your expected yield if you grow hay is 5 tons per acre, and the long-run expected selling price is s100 per ton, at the farm. 2. Variable costs of production are about $140 per acre every 4 years to re-establish the seeding and fertilizer costs of $150 per acre each year 3. You can hire a custom operator to harvest and store the hay crop for you for $50 per ton. 4. If you take the land out of the CRP program, you will no longer have to spend $800 per year to control weeds, but you will give up the $130 per acre annual payment from the USDA You realize you can complete your analysis by competing a partial budget of the proposed change. Proposed Change:-100 custo Added Income A. he tion Added Costs 50x 5000 250,000 Reduced Income B. Total additional revenue and reduced costs A. Total additional costs And reduced revenues Net Change in Profit (B-A) B. what advice would you give them? why? Compute the hay yield (tons/acre) at which the proposed plan would break-even with the current plan C. Compute the hay selling price (S/ton) at which the proposed plan would break-even with the current plan. D

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