By Evan Gregory
This publication summarizes projected returns for row crops produced in Mississippi in 2022. Returns are calculated through income and expense estimates and can also be seen in the 2022 Planning Budgets created by the Department of Agricultural Economics at Mississippi State University. Estimated crop prices, which can be seen in Table 1, are based on the forward futures contract price, including the average basis at the estimated time of harvest delivery. Table 2 presents the estimated average crop yields across all seed types and production practices from the 2022 planning budgets. Average yields are presented for the Delta and non-Delta areas.
Expenses, which are defined as “total specified expenses,” include estimated variable and fixed costs associated with crop production. Variable costs include seed, fertilizer, chemical, fuel, repair and maintenance, and any other costs that are incurred only through crop production. Fixed costs include machinery costs that are incurred regardless of crop production.
Returns are calculated for corn, cotton, and soybean production. The returns for each crop are averages across all seed types and production practices used in the 2022 Planning Budgets. Therefore, actual returns accrued may be different than those presented in this publication. Returns are estimated for the Delta and non-Delta area and for irrigated and non-irrigated production. Returns are estimated in dollars per acre.
Delta Area Returns
A graphical representation of estimated returns above total specified expenses in the Delta area can be seen in Figure 1. Estimated returns are much higher for all crops compared to last year. Returns for the Delta area are greatly dependent upon irrigation, with the highest returns of $443.08 per acre received from irrigated cotton production. Nonirrigated cotton production is estimated to have returns of $212.86 per acre. Average returns for irrigated corn are estimated at $346.08 per acre. Nonirrigated corn returns are $308.18 per acre. Irrigated soybean returns are at estimated $167.08 per acre, and nonirrigated soybean returns are $37.46 per acre.
Non-Delta Area Returns
As with the Delta area crops, estimated returns are considerably different from last year due to higher prices received for all crops. Returns for the non-Delta area can vary greatly from the Delta due to different production practices and inputs used. Returns for nonirrigated corn are estimated at $311.92 per acre. Irrigated corn returns are $439.88 per acre. Irrigated and nonirrigated cotton returns are $261.74 per acre and $179.08 per acre, respectively. Irrigated soybean returns are $157.08 per acre, whereas nonirrigated soybean returns are $91.88 per acre. The returns for the non-Delta area can also be seen in Figure 2.
The purpose of this publication is to summarize returns of cotton, corn, and soybean production in Mississippi. The information presented can be useful for growers making planting and financial decisions, as well as others involved in agricultural finance. The information presented is based on planning budgets created by the Department of Agricultural Economics at Mississippi State University. Since the returns presented in this publication are estimates, it should be understood that actual returns can change based on differing crop prices, crop yields, and production practices.
For more information regarding the 2022 Planning Budgets and for interactive budget spreadsheets, please visit: https://www.agecon.msstate.edu/whatwedo/budgets.php.
Table 1. Estimated Crop Prices.
Cotton lint (lb)
Table 2. Estimated Crop Yields.
Cotton lint, irrigated (lb/acre)
Cottonseed, irrigated (lb/acre)
Cotton lint, nonirrigated (lb/acre)
Cottonseed, nonirrigated (lb/acre)
Soybean, irrigated (bu/acre)
Soybean, nonirrigated (bu/acre)
Corn, irrigated (bu/acre)
Corn, nonirrigated (bu/acre)
Figure 1. Returns above total specified expenses for irrigated and nonirrigated cotton, soybeans, and corn produced in the Delta area of Mississippi.
Figure 2. Returns above total specified expenses for irrigated and nonirrigated cotton, soybeans, and corn produced in the non-Delta area of Mississippi.Source : msstate.edu