Contributed by Thomas Björkman, Cornell AgriTech, School of Integrative Plant Science
Purdue just issued the 2023 Purdue Crop Cost & Return Guide. For low productivity soils, it looks hard to make money. That may be true in New York as well.
Buckwheat is well suited to such soils, so how does it pencil out? There is a significant shortage of buckwheat this year, so the price is up. It turns out, however, the profit potential looks reasonable. Below is their table with a column added for my estimate of organic buckwheat (please note: costs are to drill and to combine). Conventional is usually about 10% lower.
| Indiana Low productivity soil | NY | |||||
| Cont. Corn | Rot. Corn | Rot. Beans | Wheat | DC Beans | Buckwheat | |
| Expected yield bu per acre | 143 | 152 | 46 | 65 | 32 | 20 |
| Harvest price | $5.70 | $5.70 | $13.60 | $7.20 | $13.60 | 22.5 |
| Market revenue | $815 | $866 | $626 | $468 | $435 | 450 |
| Fertilizer | $272 | $243 | $78 | $110 | $58 | 0 |
| Seed | 102 | 102 | 74 | 44 | 86 | 40 |
| Pesticides | 126 | 119 | 75 | 45 | 65 | 0 |
| Dryer fuel | 45 | 36 | 4 | 0 | ||
| Machinery fuel @ $3.55 | 26 | 26 | 16 | 16 | 11 | 11 |
| Machinery repairs | 34 | 34 | 29 | 29 | 24 | 24 |
| Hauling | 15 | 16 | 5 | 7 | 3 | 3 |
| Interest | 36 | 33 | 17 | 15 | 15 | 2 |
| Insurance/misc. | 43 | 43 | 38 | 9 | 9 | 9 |
| Total variable cost | $699 | $652 | $332 | $275 | $275 | 89 |
| Contribution margin per acre | $116 | $214 | $294 | $193 | $160 | 361 |
| Crop contribution margin | $116 | $214 | $294 | $193 | $160 | 361 |
| Government payment | 0 | |||||
| Total contribution margin | 361 | |||||
| Annual overhead costs: | ||||||
| Machinery ownership | 147 | 147 | 147 | 147 | 147 | 100 |
| Family and hired labor | 71 | 71 | 71 | 71 | 71 | 20 |
| Land | 206 | 206 | 206 | 206 | 206 | 50 |
| Earnings or (losses) | ($90) | $8 | $88 | ($13) | ($46) | $311 |
In 2022, we did some trial on double cropping after wheat, which spreads the fixed costs better. Double cropping has potential close to the big Finger Lakes or Lake Ontario. The crop only requires planting and harvest, though harvest takes some experience with the crop and the right combine.
I’m happy to help growers think through growing this crop. Or for more on the why, visit the Information for Buckwheat Growers website.
