Hard Red Winter Wheat - No Till Enterprise Budget

 

 
Revenue
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Expected Wheat Yield (bu/ac)
76.00
 
Expected Wheat Price ($/bu)
6.70
 
Total Expected Market Revenue (Yield x Price)
   
add: Program Payment
   
Total Expected Wheat Revenue
   
Expected Straw Yield (bales/ac)
50.00
 
Expected Straw Price ($/ac)
2.00
 
Total Expected Straw Revenue (Yield x Price)
   

Total Expected Revenue (Straw Rev. + Wheat Rev.)

 
Expenses
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Seed - 140 lbs/acre - (1.4 - 1.7 m seeds/acre)
60
 
Seed Treatment
   
Fertilizer #1 110 kg/ha N
62
 
Fertilizer #2 20 kg/ha P
10
 
Fertilizer #3 20 kg/ha K
9
 
Herbicide - Annual Grasses
   
Herbicide - Broadleaf Herbicides
7
 
Herbicide - other weed control
   
Insecticides
   
Fungicides
16
 
Growth Regulators
   
Crop Insurance
11
 
Program Premium
   
Custom Work #1 Fertilizer application
10
 
Custom Work #2 Pesticide application
20
 
Drying
   
Storage
   
Trucking
17
 
Marketing Fee ($2.00/tonne)
4
 
Twine
3
 
Other
   
Fuel
13
 
Mach. Repair & Maint.
16
 
Bldg. Repair & Maint.
 
 
Labour
17
 
General Variable Costs
   
Interest on Operating Capital
8
 
Total Variable Costs
284
 

 

Gross Margin (Revenue - Variable Costs)

 
Fixed Costs
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Depreciation
23
 
Interest on Term Loans
13
 
Land Costs
   
Long-Term Leases
   
General Fixed Costs
8
 
Total Fixed Costs
44
 
Total Expenses
328
 

 

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 Wheat Total Dollars Allocated to Wheat Per Acre Costs for Wheat Your Farm Budget
Example: 100 acres of Wheat
Legal and accounting fees
$1500.00
20%
$300
$3.00
 
General Variable Costs
$
Wheat
Wheat
Wheat
 
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

 


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: 18 June 2004
Last Reviewed: 23 February 2012