Grain Corn Conventional Enterprise Budget

 
Revenue
 Revised Jan 2012
Sample cost
per Acre		 Your Farm Budget
Expected Yield (bu/ac)
150.00
  
Expected Price ($/bu)
5.25
  
Total Expected Revenue (Yield x Price)
    
add: Program Payment
    
Total Revenue
    

 

 
Expenses
Revised Jan 2012
Sample cost
per Acre
 Your Farm Budget
Seed - 32,000 Kernels, treated
104
  
Seed Treatment
 
  
Fertilizer #1 155 kg/ha (554 kg/ha of 28-0-0 U.A.N)
91
  
Fertilizer #2 20 kg/ha P
10
  
Fertilizer #3 50 kg/ha K
23
  
Herbicide - Annual grasses
13
 
Herbicide - Broadleaf herbicides
 
  
Herbicide - other weed control
   
Insecticides
 
  
Fungicides
    
Crop Insurance
13
  
Program Premium
    
Custom Work #1 Pesticide Application
10
  
Custom Work #2 Fert. Application mixing delivery
10
  
Custom Work #3 Other
   
Drying 8 points
83
  
Storage
31
  
Trucking
35
  
Marketing Fees
2
  
Other
   
Fuel
28
  
Mach. Repair & Maint.
16
  
Bldg. Repair & Maint.
    
Labour
16
  
General variable costs
    
Interest on Operating capital
9
  
Total Variable Costs
493
  
Gross Margin (Revenue - Variable Costs)
 
Fixed Costs
 Revised Jan 2012
Sample cost
per Acre		 Your Farm Budget
Depreciation
28
  
Interest on Term Loans
13
  
Land Costs
    
Long-Term Leases
    
General Fixed Costs
11
  
Total Fixed Costs
53
 
Total Expenses
546
  

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 Your Farm Budget
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
          

Transfer General Cost totals to the Budget

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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: 22 December 2011