Alfalfa-Timothy Hay Enterprise Budget


Revenue
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Expected Yield (tonnes/ac)
3.50
 
Expected Price ($/tonne)
120.00
 
Total Expected Revenue (Yield x Price)
   

 
Expenses
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Seed - Alfalfa 12 lbs/acre and Timothy 4 lb/ac
60
 
Seed - Other seed
 
 
Inoculant
1
 
Fertilizer - 40 kg/ha P
20
 
Fertilizer - 30 kg/ha K
14
 
Fertilizer - Other
   
Herbicide - Glyphosphate
7
 
Herbicide - 24D-B
16
 
Insecticides
   
Crop Insurance
2
 
Custom Work #1 - Fertilizer application
20
 
Custom Work #2 - Pesticide application
20
 
Custom Work #3 - Bale wrapping
31
 
Twine
 
 
Storage
   
Other
   
Fuel
37
 
Machine Repair & Maintenance
20
 
Bldg. Repair & Maintenance
 
 
Rent & Labour
28
 
General Variable Costs
   
Interest on Operating Capital
10
 
Total Variable Costs
288
 

 

Gross Margin (Revenue - Variable Costs)

 
Fixed Costs
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Depreciation
19
 
Interest on Term Loans
11
 
Long-Term Leases
   
 
General Fixed Costs
5
 
Total Fixed Costs
35
 
Total Expenses
284
 

Breakeven Price on Your Farm is (Total Expenses/Expected Yield)

Allocation of General Variable and Fixed Costs

General Variable and Fixed Costs or general overhead costs are those whole farm costs that can be difficult to allocate to a specific enterprise. These costs will show little or no change whether one crop or another is grown. That is to say your crop mix choice should be the same after allocating general overhead costs as it was before they were added. This table allows you to allocate these overhead costs and transfer them to the budget to arrive at a total cost of production.

Cost Item Whole Farm $ Percent Allocated to Hay Total Dollars Allocated to Hay Per Acre Costs for Hay Your Farm Budget
Example: 100 acres of Hay
Legal and accounting fees
$1500.00
20%
$300
$3.00
 
General Variable Costs
$
Hay
Hay
Hay
 
Advertising
         
Electricity and Heating Fuel
         
Telephone
         
Memberships / Subscription Fees
         
Office Expenses
         
Legal and Accounting Fees
         
Motor Vehicle Expenses
         
Small Tools
         
Soil Testing
         
Licenses/permits
         
Other general variable costs
         
Total General Variable Costs
         
General Fixed Costs
         
Property Taxes
         
Other Insurance Premiums
         
Other General Fixed Costs
         
Total General Fixed Costs
         
Transfer General Cost totals to the Budget
         

 

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For more information:
Toll Free: 1-877-424-1300
E-mail: ag.info.omafra@ontario.ca
Author: John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date: 10 March 2003
Last Reviewed: 24 February 2012