Corn & Soybean Break-Even: The Formula and Numbers

There's a number in your cornfield that'll never make the news, it's the line between the winnin' and the singin' of the blues. Some fellas know it cold and some just wave and wish 'em luck — but the market doesn't care a lick what's painted on your truck.

Two Key Break-Even Figures

Break-even price: the price per bushel you need to cover all costs at an expected yield. Break-even yield: the yield per acre you need to cover all costs at an expected price. Both numbers help you evaluate marketing decisions, crop insurance choices, and input levels.

Basic Formulas

• Break-even price = Total cost per acre ÷ Expected yield per acre.
• Break-even yield = Total cost per acre ÷ Expected price per unit.

Building a Reliable Cost Number

• Land or rent.
• Seed.
• Fertilizer.
• Chemicals.
• Machinery and equipment (ownership and operating).
• Drying and storage.
• Insurance.
• Interest.
• Labor and management.
• Miscellaneous overhead.

Using Break-Evens in Practice

• Compare your break-even price to current futures and cash bids.
• Test how higher or lower input programs change the break-even.
• Run scenarios for different expected yields.
• Use the numbers when deciding whether to lock in a sale or wait.

A Worked Example

Take a corn field carrying $860 per acre in total cost with an expected yield of 205 bushels. Break-even price is $860 ÷ 205 = $4.20 per bushel. At a $4.60 cash bid, break-even yield is $860 ÷ $4.60 = 187 bushels — so the field has 18 bushels of cushion before it stops covering costs.

Field-Level vs Whole-Farm

Calculating break-evens at the field level often turns up important differences. Some fields carry significantly higher or lower costs due to rent, soil type, or distance from storage. A whole-farm average of $4.20 can hide one cash-rented quarter sitting at $4.85.