Northern Ontario Oats Enterprise Budget

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Northern Ontario Oats Enterprise Budget

Author:	John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date:	10 March 2003
Last Reviewed:	29 July 2008

Revenue	Revised July 2008 Sample cost per Acre	Your Farm Budget
Expected Oat Yield (bu/ac)	78.00
Expected Oat Price ($/ac)	3.60
Total Expected Revenue (Yield x Price)
add: Program Payment
Total Expected Oat Revenue
Expected Straw Yield (bales/ac)	50.00
Expected Straw Price ($/bale)	2.00
Total Expected Straw Revenue (Yield x Price)
Total Expected Revenue (Straw Rev. + Oat Rev.)

Expenses	Revised July 2008 Sample cost per Acre	Your Farm Budget
Seed - 85 lbs/acre Certified Treated	26
Seed Treatment
Fertilizer #1 40 kg/ac 6-24-24	33
Fertilizer - 48 kg/ac Urea	35
Herbicide - Annual Grasses
Herbicide - Broadleaf Herbicides	7
Herbicide - other weed control
Insecticides
Fungicides	15
Crop Insurance	4
Program Premium
Custom Work #1 Pesticide Application	9
Custom Work #2 Fertilizer Application	18
Custom Work #3 Other
Drying
Storage
Trucking	11
Twine	3
Marketing Fees
Other
Fuel	21
Mach. Repair & Maint.	19
Bldg. Repair & Maint.
Labour	20
Interest on Operating Capital	7
Total Variable Costs	227

Gross Margin (Revenue - Variable Costs)

Fixed Costs	Revised July 2008 Sample cost per Acre	Your Farm Budget
Depreciation	30
Interest on Term Loans	23
Land Costs
Long-Term Leases
General Fixed Costs	5
Total Fixed Costs	58
Total Expenses	285

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 Oats	Total Dollars Allocated to Oats	Per Acre Costs for Oats
*Example: 100 acres of Oats* *Legal and accounting fees*	*$1500.00*	*20%*	*$300*	*$3.00*
General Variable Costs	$	Oats	Oats	Oats
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:
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E-mail: ag.info.omafra@ontario.ca