Soft Winter Wheat - No-Till Enterprise Budget

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Soft Winter Wheat - No-Till 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 Wheat Yield (bu/ac)	76.00
Expected Wheat Price ($/bu)	5.50
Total Expected Market Revenue (Yield x Price)
add: Program Payment
Total Revenue
Expected Straw Yield (bales/ac)	50.00
Expected Straw Price ($/bale)	2.00
Total Expected Straw Revenue (Yield x Price)
Total Expected Revenue (Straw Rev. + Wheat Rev.)

Expenses	Revised July 2008 Sample cost per Acre	Your Farm Budget
Seed - 110 lbs/acre certified, treated (1.4 - 1.7 m seeds/acre)	38
Seed Treatment
Fertilizer #1 5 US gal/ac liquid fertilizer	20
Fertilizer #2 90 kg/ac Urea 46%	65
Fertilizer #3
Herbicide - Annual Grasses
Herbicide - Broadleaf Herbicides	7
Herbicide - other weed control
Insecticides
Fungicides
Growth Regulators
Crop Insurance	10
Program Premium
Custom Work #1 Fertilizer application	9
Custom Work #2 Pesticide application	9
Drying
Storage
Trucking	17
Marketing Fee ($2.00/tonne)	4
Twine	3
Other
Fuel	17
Mach. Repair & Maint.	14
Bldg. Repair & Maint.
Labour	16
General Variable Costs
Interest on Operating Capital	12
Total Variable Costs	242

Gross Margin (Revenue - Variable Costs)

Fixed Costs	Revised July 2008 Sample cost per Acre	Your Farm Budget
Depreciation	20
Interest on Term Loans	15
Land Costs
Long-Term Leases
General Fixed Costs	4
Total Fixed Costs	39
Total Expenses	281

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
*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
Total Fixed Costs
Total Expenses

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