Instructions for Using
Breakeven Harvest Yields: A Decision Aid
Introduction
Drought conditions and low yielding crops have many farmers considering whether a crop is worth harvesting. A breakeven yield analysis can help determine what yield level will justify harvesting the crop. This software decision aid can help with this decision.
Software Download & Setup Instructions
Click on Breakeven Harvest Yields, a self-extracting zipped file with a setup routine. With most browsers, you will get a choice of saving it to your hard drive or opening it. Save it to your hard drive. Go to the folder/directory in which you saved the file and double-click on "harvest.exe". It will copy its files to your Windows/Temp directory, and then start the Setup routine. Follow the Setup Routine instructions.
To Create a Shortcut
After installing the Breakeven Harvest Yields, you will see a Program Group with the Harvest icon. DO NOT drag the icon out of the program group to create the icon. Right click on the icon that appears in the program group then click "Copy". Close the Program Group. Now, right click in the middle of the screen and click "Paste". This will copy and paste the icon onto the Windows desktop.
Another way to create a shortcut is to click the right mouse button somewhere on the Windows desktop. Then click New, then click Shortcut. Double click the "harvest" file, then click "harvest.exe". Click next, and follow the directions.
Breakeven Analysis
Breakeven analysis is used to calculate a point at which net returns just cover relevant expenses. For harvesting decisions the relevant expenses are those associated with harvest. All other costs, such as fertilizer, herbicide, seed, and cash rent have already been incurred and cannot be reversed. This decision aid helps determine breakeven yields which are just sufficient to cover harvest costs. Of course, producers should check on the specific terms of the crop insurance policies they carry and reflect upon the consequences of their choice before making a decision regarding whether or not to harvest. Insurance carriers may also find the tool useful in determining the magnitude of compensation and examining policies and procedures.
Two sets of harvest costs may be involved. The first set is a constant amount per acre and is generally independent of yield levels. The second type is not constant and is a direct function of the yield levels (e.g., hauling costs). These factors need to be properly reflected in harvest decisions. The other key variable is the market price of the commodity.
To Use the Software
Once the software is downloaded and a shortcut is created on the Windows desktop, start the Harvest Breakeven decision aid by double-clicking on its icon. Choose a corn or soybean option from the first dialogue box, then choose one of the three machinery ownership option from the next dialogue box.
Default values are given for costs (both land and yield related) and for corn and soybean prices. Users are encouraged to substitute their own cost and price estimates. Any cell in blue can be modified by the user. The software will calculate a breakeven harvest yield for the values indicated in the blue, user-defined variables.
To print results, select print from the menu bar, then choose which option you want to print.
To start a new file, choose NEW from the File menu.
To save, choose SAVE from the File menu and give the file a new name.
To Exit, click on the : in the upper right corner of the screen and choose NO when asked to save the HARVEST.BWB file.
For More Information
For additional information about this interactive decision tool, please contact, Steve Isaacs or Carl Dillon.