Break-even is the first grain price
A bid can look good until it is compared against your cost. Break-even turns acres, yield, input cost, land cost, machinery, interest, and overhead into the minimum price per bushel.
Break-even price = total crop cost / expected bushels
Why GrainIQ links break-even to storage
If storage improves price but still leaves the farm under break-even, the decision may not solve the real problem. The same is true for 45Z premiums and better elevator bids.
- Use Grain Storage Calculator to compare store-vs-sell economics.
- Use 45Z Calculator to test whether a premium clears cost.
- Use Basis & Storage to compare buyer bids after freight.
What to enter
- Expected acres, expected yield, and expected bushels.
- Seed, fertilizer, chemical, fuel, labor, land, machinery, interest, and overhead.
- Storage or drying costs if the sale depends on holding grain.
- Premium program costs if comparing 45Z or specialty grain offers.
FAQ
What is break-even price per bushel?
It is the price needed to cover crop cost divided by expected bushels.
Should I use county averages or my own costs?
Use your own costs when possible. Public references are only a check against your assumptions.
Why does break-even matter before storage or 45Z?
Because storage and premiums only help if the final net price improves the farm’s position relative to cost and cash needs.