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by Breana Watkins, Instructor and Program Associate - Agricultural Economics - November 6, 2020
The University of Arkansas, Division of Agriculture has released the 2021 Crop Enterprise Budget update. Budgets are available in pdf and excel formats, allowing users to change inputs and prices to fit each producer’s unique situation. The final update, including an updated cotton outlook, will be available by December 1st, 2020.
Returns are beginning to become positive again as we have moved into a time of higher commodity prices and lower fuel and fertilizer pricing. Rice leads the pack with the highest net returns expectation followed by soybeans.
The 2021 cotton budgets are being delayed in their release due to lack of available seed pricing. Inputs in the budgets are Cooperative Extension Service recommendations as determined by field trials from the Crop Research Verification Program (CRVP) for each crop. Interactive budgets can be utilized to evaluate alternative costs and returns for optimal profit potential. Input decisions should be evaluated with an understanding that yield and revenue-maximizing inputs are not necessarily the inputs for maximizing profit. County agents can provide information for Extension input recommendations. The 2021 crop enterprise budgets are available at https://www.uaex.uada.edu/farm-ranch/economics-marketing/farm-planning/budgets/crop-budgets.aspx.