1-Acre Soybean Farming Project Report: Economics with Costs and Profit Analysis

Soybean is a valuable oil crop that provides protein, oil, fiber, and other nutrients for human and animal consumption. Soybean is also a versatile crop that can be grown in different climates and seasons. Soybean farming is a profitable venture that can generate income and employment for farmers. In this article, we will discuss the benefits, costs, and profit analysis of soybean farming on one acre of land.

1-Acre Soybean Farming Project Report

Benefits of Soybean Farming

Soybean is a source of plant-based protein that can meet the nutritional needs of vegetarians and vegans. Soybeans also contain essential amino acids, vitamins, minerals, antioxidants, and phytochemicals that can prevent and treat various diseases such as cancer, diabetes, cardiovascular problems, osteoporosis, menopause symptoms, etc.
Soybean is a high-yielding crop that can produce up to 14 quintals of seeds per acre. Soybean seeds can be sold at a good price in the market or processed into various products such as soy flour, soy milk, tofu, soy sauce, soy oil, etc. These products have a high demand and value in the domestic and international markets.
Soybean is a leguminous crop that can fix atmospheric nitrogen to the soil with the help of symbiotic bacteria. This reduces the need for chemical fertilizers and improves soil fertility and crop rotation. Soybeans also help conserve soil moisture and prevent soil erosion.
Soybean is a biofuel crop that can be converted into biodiesel or ethanol. These fuels are renewable, clean, and eco-friendly alternatives to fossil fuels. Soybean biofuel can reduce greenhouse gas emissions and dependence on foreign oil.

Initial Investments: Costs Involved in 1-acre Soybean Cultivation

The initial investments for soybean cultivation include the cost of land preparation, seeds, fertilizers, pesticides, irrigation, labor, and machinery. These costs may vary depending on the location, soil type, climate, and farming practices. The average cost of land preparation for one acre of soybean cultivation in India is about Rs. 1,500.

The cost of seeds is about Rs. 1,200 per acre, assuming a seed rate of 30 kg per acre and a seed price of Rs. 40 per kg. The cost of fertilizers is about Rs. 3,000 per acre, assuming a fertilizer dose of 20:60:40 kg NPK per hectare and a fertilizer price of Rs. 25 per kg N, Rs. 12 per kg P, and Rs. 10 per kg K.
The cost of pesticides is about Rs. 1,500 per acre, assuming two sprays of insecticides and fungicides at Rs. 750 per spray. The cost of irrigation is about Rs. 2,000 per acre, assuming four irrigations at Rs. 500 per irrigation.
The cost of labor is about Rs. 4,000 per acre, assuming a labor wage of Rs. 200 per day and a labor requirement of 20 days per acre for various operations such as sowing, weeding, harvesting, etc. The cost of machinery is about Rs. 1,000 per acre, assuming a rental charge of Rs. 500 per hour for tractors and other implements.

Yield Assessment: Estimating Soybean Production

Soybean is one of the most important oilseed crops in India. It is cultivated on about 12 million hectares and produces an average of 12.5 million tonnes. The major soybean-producing states are Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Karnataka, and Gujarat. Soybean yields vary depending on agroclimatic conditions, soil type, variety, pest and disease management, irrigation, and fertilizer use. The average yield in India is estimated at 1.12 tonnes per hectare, which is higher than the previous year’s yield of 0.93 tonnes per hectare.

Income Projection: Market Prices and Revenue for 1-Acre

According to the data from the Ministry of Agriculture and Farmers Welfare, the average wholesale price of soybeans in India was Rs. 5,500 per quintal. Based on these data, the income projection for 1-acre soybean farming can be calculated as follows:

Yield = 10 quintals per acre
Market price = Rs. 4,500 per quintal
Revenue = Yield x Market price = 10 x 5,500 = Rs. 55,000 per acre

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Cost Analysis: Breakdown of Fixed and Variable Costs for 1-Acre

The cost of cultivation of soybean consists of fixed costs and variable costs. Fixed costs are those that do not vary with the level of production, such as land rent, interest on capital, depreciation of machinery, etc. Variable costs are those that vary with the level of production, such as seed, fertilizer, pesticide, irrigation, labor, etc.

Fixed Costs

Land rent	Rs. 5,000 per acre
Interest on capital	Rs. 2,000 per acre
Depreciation of machinery	Rs. 500 per acre
Total fixed costs	Rs. 7,500 per acre

Variable Costs

Seed	Rs. 800 per acre
Fertilizer	Rs. 3,000 per acre
Pesticide	Rs. 1,000 per acre
Irrigation	Rs. 2,000 per acre
Labor	Rs. 6,000 per acre
Total variable costs	Rs. 12,800 per acre

Profitability Evaluation: Examining Returns on Investment For 1-Acre

The profitability of 1-acre soybean cultivation using key indicators. Gross margin, at Rs. 32,200 per acre, highlights revenue exceeding variable costs. Net profit stands at Rs. 24,700 per acre after deducting total costs. The Benefit-Cost Ratio (BCR) is 2.25, indicating a favorable return. The Return on Investment (ROI) impressively reaches 123%, emphasizing the economic viability of soybean farming.

Financial Viability: Assessing the Project’s Economic Feasibility for 1-Acre

The financial viability of 1-acre soybean cultivation involves crucial metrics. The Payback Period (PBP) is a mere 0.81 years, indicating swift recovery of the Rs. 20,000 initial investment from annual net cash flows of Rs. 24,700. Net Present Value (NPV) amounts to Rs. 1,36,788, reflecting positive project value. The Internal Rate of Return (IRR) impressively reaches 123%, signifying an annualized return on investment.

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Cost of Cultivation for 1-Acre Soybean Farming

Item	Cost (Rs.)
Land preparation	1600
Seed material	1500
Sowing	500
Fertilizer	3000
Irrigation	1000
Weed management	1000
Pest and disease control	1500
Harvesting	1000
Drying and threshing	1000
Transportation	500
Miscellaneous	971
Total	16000

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Conclusion

Soybean is a profitable crop that can be grown in different agro-climatic conditions. The cost of cultivation for 1-acre soybean farming varies depending on the region, season, and management practices. The average cost of cultivation for 1-acre soybean farming in India is Rs.20,000. The major expenses involved in soybean farming are land preparation, seed material, fertilizer, irrigation, and pest and disease control.

1-Acre Soybean Farming Project Report: Economics with Costs and Profit Analysis