Spring Canola Hybrid Enterprise Budget

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Spring Canola Hybrid 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 Yield (tonnes/ac)	0.85
Expected Price ($/tonne)	520.00
Total Expected Revenue (Yield x Price)
add: Program Payment
Total Revenue

Expenses	Revised July 2008 Sample cost per Acre	Your Farm Budget
Seed - 5 lbs/acre - hybrid, treated	40
Seed Treatment
Fertilizer #1 60 kg/ac 6-24-24	49
Fertilizer #2 100 kg/ac Urea	73
Fertilizer #3
Herbicide - Annual Grasses	16
Herbicide - Broadleaf Herbicides
Herbicide - Other Herbicides	12
Insecticides
Fungicides
Technology Use Agreement
Crop Insurance	16
Program Premium
Custom Work #1 Pesticide application	9
Custom Work #2 Fertilizer application	9
Drying
Storage
Trucking	7
Marketing Fees	3
Other
Fuel	17
Mach. Repair & Maint.	16
Bldg. Repair & Maint
Labour	8
General Variable Costs
Interest on Operating Capital	10
Total Variable Costs	286

Gross Margin (Revenue - Variable Costs)

Fixed Costs	Revised July 2008 Sample cost per Acre	Your Farm Budget
Depreciation	27
Interest on Term Loans	19
Land Costs
Long-Term Leases
General Fixed Costs	6
Total Fixed Costs	51
Total Expenses	337

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