2015 Tobacco Budgets


Two production system budgets are estimated for next year. These are the multi-pass machine/bulk barn (MM) and the hand harvest/bulk barn (HH) systems. Both are used in this state.

ESTIMATED S.C. 2014 PRODUCTION COSTS FOR TWO TOBACCO PRODUCTION SYSTEMS; 2,400 AVERAGE YIELD*

Item

 

 

HH (Hand)

 

MM (Machine)

VARIABLE COSTS:

 

Transplants

$280.35

$280.35

 

Fertilizer

$302.50

$302.50

 

Herbicides & Fungicides

$104.13

$104.13

 

Insecticides & Nematicides

                                 

$277.12

$277.12

 

Sucker Control

$135.12

$135.12

 

Curing Costs

$607.20

$607.20

 

Baling, Hauling & Storage

$144.00

$144.00

 

Research Assessment

$7.20

$7.20

 

Crop Insurance

$120.00

$120.00

 

Harvesting  Labor

$600.00

-------

 

Tractor/Machinery

$221.25

$314.47

 

Labor

$526.68

$752.78

 

Interest on Op. Cap.

$83.14

$76.12

 

       TOTAL VARIABLE COST:

per Ac.

$3,408.69

$3,120.99

 

per lb.

$1.42

$1.30

 

         FIXED COSTS:

 

Tractors & Machinery

$252.29

$416.43

 

Curing Barn

$170.00

$170.00

 

Greenhouse

$80.00

$80.00

 

Green Leaf Box Loading System

$35.00

 

       TOTAL FIXED COST:

per Ac.

$502.29

$701.43

 

per lb.

$0.21

$0.29

 

       OTHER COSTS:    

 

Land Rent

$60.00

$60.00

 

General Overhead

$238.61

$218.47

 

       TOTAL OTHER COSTS:    

per Ac.

$298.61

$278.47

 

per lb.

$0.12

$0.12

 

       TOTAL ALL COSTS:

per Ac.

$4,209.59

$4,100.89

 

       

per lb.

$1.75

 

$1.71

 

 

BREAK-EVEN YIELD (lbs)**

Hand

Machine

BREAK-EVEN PRICE ($/lb)

Hand

Machine

 

Variable  Costs

1574

1403

Variable  Costs

$1.42

$1.30

 

Total  Costs

2045

1979

 

Total  Costs

$1.75

$1.71

 

*These budgets are for comparison purposes only.  Each producer should generate his own budget.

**Based on price of 2.00/lb. Updated versions of Flue-Cured Tobacco Budgets can be viewed and downloaded at:

http://www.clemson.edu/extension/aes/budgets/index.html

POTENTIAL NET RETURNS – MACHINE HARVEST

Compiled by Wilder Ferreira

These three tables compare potential net returns.  The tables consider (machine harvest-bulk barn) yields varying from 2,000 to 2,800 pounds per acre and estimated sale price ranging from $1.85 to $2.15 per pound.    The first table covers net returns per acre above variable costs.  The second covers net returns per acre above variable and fixed costs.  The third table covers all costs per acre and represents net returns above management and risk.  Each producer must calculate their own costs and break-even situations.

2015 ESTIMATED INCOME ABOVE VARIABLE COSTS
AT DIFFERING YIELDS AND PRICES:  PRODUCTION SYSTEM MM*

YIELD

  -------------- PRICE ($/lbs.) --------------------

LBS

$1.85

$1.95

$2.00

$2.05

$2.15

2000

$705

$905

$1,005

$1,105

$1,305

2200

$1,012

$1,232

$1,342

$1,452

$1,672

2400

$1,319

$1,559

$1,679

$1,799

$2,039

2600

$1,626

$1,886

$2,016

$2,146

$2,406

2800

$1,933

$2,213

$2,353

$2,493

$2,773

2015 ESTIMATED INCOME ABOVE VARIABLE & FIXED COSTS
AT DIFFERING YIELDS AND PRICES:  PRODUCTION SYSTEM MM*

YIELD

  -------------- PRICE ($/lbs.) --------------------

LBS

$1.85

$1.95

$2.00

$2.05

$2.15

2000

$4

$204

$304

$404

$604

2200

$311

$531

$641

$751

$971

2400

$618

$858

$978

$1,098

$1,338

2600

$924

$1,184

$1,314

$1,444

$1,704

2800

$1,231

$1,511

$1,651

$1,791

$2,071

2015 ESTIMATED INCOME ABOVE ALL COSTS
AT DIFFERING YIELDS AND PRICES:  PRODUCTION SYSTEM MM*

YIELD

  --------------- PRICE ($/lbs.) -------------------

LBS

$1.85

$1.95

$2.00

$2.05

$2.15

2000

-$266

-$66

$34

$134

$334

2200

$37

$257

$367

$477

$697

2400

$339

$579

$699

$819

$1,059

2600

$641

$901

$1,031

$1,161

$1,421

2800

$944

$1,224

$1,364

$1,504

$1,784

 *MM = machine harvest, bulk barn

POTENTIAL NET RETURNS – HAND HARVEST

Compiled by Wilder Ferreira

These three tables compare potential net returns.  The tables consider (hand harvest-bulk barn) yields varying from 2,000 to 2,800 pounds per acre and estimated sale price ranging from $1.85 to $2.15 per pound.   

2015 ESTIMATED INCOME ABOVE VARIABLE COSTS
AT DIFFERING YIELDS AND PRICES:  PRODUCTION SYSTEM HH*

IAVC AT DIFFERING YIELDS AND PRICES

 

YIELD

  -------------- PRICE ($/lbs.) --------------------

LBS

$1.85

$1.95

$2.00

$2.05

$2.15

2000

$418

$618

$718

$818

$1,018

2200

$725

$945

$1,055

$1,165

$1,385

2400

$1,031

$1,271

$1,391

$1,511

$1,751

2600

$1,338

$1,598

$1,728

$1,858

$2,118

2800

$1,645

$1,925

$2,065

$2,205

$2,485

2015 ESTIMATED INCOME ABOVE VARIABLE & FIXED COSTS
AT DIFFERING YIELDS AND PRICES:  PRODUCTION SYSTEM HH*

Yield/Ac

  --------------- PRICE ($/lbs.) ------------------

Lbs

$1.85

$1.95

$2.00

$2.05

$2.15

2000

-$85

$115

$215

$315

$515

2200

$222

$442

$552

$662

$882

2400

$529

$769

$889

$1,009

$1,249

2600

$836

$1,096

$1,226

$1,356

$1,616

2800

$1,143

$1,423

$1,563

$1,703

$1,983

2015 ESTIMATED INCOME ABOVE ALL COSTS
AT DIFFERING YIELDS AND PRICES:  PRODUCTION SYSTEM HH*

Yield/Ac

  --------------- PRICE ($/lbs.) ------------------

Lbs

$1.85

$1.95

$2.00

$2.05

$2.15

2000

-$374

-$174

-$74

$26

$226

2200

-$72

$148

$258

$368

$588

2400

$230

$470

$590

$710

$950

2600

$533

$793

$923

$1,053

$1,313

2800

$835

$1,115

$1,255

$1,395

$1,675

*HH = hand harvest, bulk barn

Download Enterprise Budgets

  • Tobacco, Multi-pass Hand Harvest (PDF) (XLS)

  • Tobacco, Multi-Pass Machine Harvest (PDF) (XLS)