The current climate of low crop commodity prices is squeezing margins. As growers consider strategies to reduce cost, they often budget on cost per acre. This is a great start, but focusing only on cost per acre might cause producers to overlook the cost per bushel which is being raised.
The most straightforward reason for calculating cost on a per-bushel (rather than per acre) basis is that the crop being produced will be priced in dollars per bushel. Some will raise the concern that production is uncertain. While that statement is true, no budget is going to perfectly predict the future. Instead budgeting make use of history and trends to make predictions about the future. Budgeting is based on forecast which are imperfect but are useful.
One of the quickest ways that growers can reduce their cost per bushel raised is to increase their overall yield per acre. The average US corn yield have increased from 127 bushel per acre in 1996 to over 173 bushels per acre in 2016. That is a 40 bushel per acre gain during the last 20 years. This is a direct result of newer technologies and extensive testing of the new hybrids which are commercially available. One way we test our products is in the F.I.R.S.T. trials each year. Seventy-six different companies entered hybrids into the F.I.R.S.T. trials this year, but none can tell the performance story that NuTech Seed can.