Bt Grain Corn Enterprise Budget

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Bt Grain Corn Enterprise Budget

Author:	John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date:	10 January 2006
Last Reviewed:	29 July 2008

Revenue	Revised July 2008 Sample cost per Acre	Your Farm Budget
Expected Yield (bu/ac)	137.00
Expected Price ($/bu)	5.00
Total Expected Revenue (Yield x Price)
add: Program Payment
Total Revenue

Expenses	Revised July 2008 Sample cost per Acre	Your Farm Budget
Seed - 30,000 Kernels treated	68
Seed Treatment	0
Fertilizer #1 28 kg/ac 11-52-0	33
Fertilizer #2 32 kg/ac 0-0-60	21
Fertilizer #3 186 kg/ac 28-0-0	110
Herbicide - Annual grasses	38
Herbicide - Broadleaf herbicides
Herbicide - Other weed control
Insecticides
Fungicides
Crop Insurance	14
Program Premium
Custom Work #1 Pesticide application	9
Custom Work #2 Fertilizer application mixing delivery	9
Custom Work #3 Other
Drying 8 points	68
Storage	30
Trucking	30
Marketing Fees	1
Other
Fuel	29
Mach. Repair & Maint.	17
Bldg. Repair & Maint.
Labour	13
General variable costs (see below to allocate general costs
Interest on Operating capital	17
Total Variable Costs	504

Gross Margin (Revenue - Variable Costs)

Fixed Costs	Revised July 2008 Sample cost per Acre	Your Farm Budget
Depreciation	24
Interest on Term Loans	17
Land Costs
Long-Term Leases
General Fixed Costs	5
Total Fixed Costs	46
Total Expenses	550

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 Grain Corn	Total Dollars Allocated to Grain Corn	Per Acre Costs for Grain Corn
Example: 100 acres of Grain Corn Legal and accounting fees	*$1500.00*	*20%*	*$300*	*$3.00*
General Variable Costs	$	Grain Corn	Grain Corn	Grain Corn
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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