Date of this Version
Cornhusker Economics, University of Nebraska–Lincoln Extension, March 18, 2015.
Last fall, when the 2015 Nebraska Crop Budgets were being developed, the cost of fuel for 2015 was estimated to be $3.25 per gallon. A farm sup-plier reported on March 10, 2015 that the price of fuel delivered to the farm is around $2.40. How much affect does that price change have on cost of production?
The 2015 Nebraska Crop Budgets were used to answer that question. The answer is, it depends on the crop and the production system.
The 2015 Nebraska Crop Budgets contain 69 dif-ferent crop budgets including 14 corn budgets, 8 soybean budgets, and 7 wheat budgets. The rea-son for different budgets for the same crop is the different production systems. A crop may be pro-duced using conventional tillage, no tillage, or another system such as ridge tillage. In addition, some crops are watered only by rainfall while others are irrigated. Irrigated crops may either use a pivot or gravity system for water distribution. Each system uses a different amount of fuel.