Corn Silage Enterprise Budget


 
Revenue
Revised Jan 2011
Sample cost
per Acre		Your Farm Budget
Expected Yield (tonnes/ac)
16.00
 
Expected Price ($/tonne)
35.00
 
Total Expected Revenue (Yield x Price)
   
add: Program Payment
   
Total Revenue
   

 
Expenses
Revised Jan 2011
Sample cost
per Acre
Your Farm Budget
Seed - 31,000 kernels, treated
89
 
Seed Treatment
0
 
Fertilizer #1 139 kg/ha N (496 kg/ha of 28-0-0 UAN)
82
 
Fertilizer #2 20 kg/ha P
11
 
Fertilizer #3 50 kg/ha K
23
 
Herbicide - Annual grasses
9
 
Herbicide - Broadleaf Herbicides
 
 
Herbicide - other weed control where needed
   
Insecticides
 
Fungicides
   
Crop Insurance
14
 
Program Premium
   
Custom Work #1 Pesticide application
10
 
Custom Work #2 Fertilizer application
10
 
Storage
   
Trucking
   
Marketing Fees
   
Other
   
Fuel
37
 
Mach. Repair & Maint.
22
 
Bldg. Repair & Maint.
   
Labour
31
 
General Variable Costs
   
Interest on Operating Capital
7
 
Total Variable Costs
344
 

 

Gross Margin (Revenue - Variable Costs)

 
Fixed Costs
Revised Jan 2011
Sample cost
per Acre		Your Farm Budget
Depreciation
38
 
Interest on Term Loans
21
 
Land Costs
  
Long-Term Leases
   
General Fixed Costs
9
 
Total Fixed Costs
67
 
Total Expenses
411
 


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 ItemWhole Farm $Percent Allocated to SilageTotal Dollars Allocated to SilagePer Acre Costs for SilageYour Farm Budget
Example: 100 acres of Silage
Legal and accounting fees
$1500.00
20%
$300
$3.00
 
General Variable Costs
$
Silage
Silage
Silage
 
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
     
Total Fixed Costs
     
Total Expenses
     

 

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For more information:
Toll Free: 1-877-424-1300
Local: (519) 826-4047
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: 16 February 2011