Southern Ontario Barley Enterprise Budget

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Southern Ontario Barley 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 Barley Yield (bu/ac)	70.00
Expected Barley Price ($/bu)	4.90
Total Expected Market Revenue (Yield x Price)
add: Program payment
Total Expected Barley Revenue
Expected Straw Yield (bales/ac)	50.00
Expected Straw Price ($/bale)	1.50
Total Expected Straw Revenue (Yield x Price)
Total Expected Revenue (Straw Rev. + Barley Rev.)

Expenses	Revised July 2008 Sample cost per Acre	Your Farm Budget
Seed 120 lbs/acre certified treated (1.0 - 1.4 m seeds/ac)	33
Seed Treatment
Fertilizer #1 40 kg/ac Urea	29
Fertilizer #2 20 kg/ac P	39
Fertilizer #3 20 kg/ac K	22
Herbicide -
Herbicide - Annual grasses and broadleaf herbicides	7
Herbicide - other weed control
Insecticides
Fungicides	15
Growth Regulator
Crop Insurance	4
Program Premium
Custom Work #1 Fertilizer Application	9
Custom Work #2 Chem Application	9
Custom Work #3 Other
Drying
Storage
Trucking	11
Twine	3
Marketing Fees
Other
Fuel	21
Mach. Repair & Maintenance	19
Bldg. Repair & Maintenance
Labour	20
General Variable Costs
Interest on Operating Capital	8
Total Variable Costs	248

Gross Margin (Revenue - Variable Costs)

Fixed Costs	Revised January 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	306

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