Coloured Beans Enterprise Budget

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Coloured Beans Enterprise Budget

Author:	John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date:	10 March 2003
Last Reviewed:	19 March 2009

Revenue	Revised Jan 2009 Sample cost per Acre	Your Farm Budget
Expected Yield (cwt)	14.00
Expected Price ($/cwt)	45.00
Total Expected Revenue (Yield x Price)
add: Program Payment
Total Revenue

Expenses	Revised Jan 2009 Sample cost per Acre	Your Farm Budget
Seed - 80 lbs/acre (wide rows) certified, treated (with Cruiser insecticide)	124
Fertilizer #1 N, if required
Fertilizer #2 20 kg/ha P	15
Fertilizer #3 40 kg/ha K	26
Herbicide - Annual grasses	17
Herbicide - Broadleaf Herbicides	23
Herbicide - other weed control
Insecticides (Potato leafhopper control)	11
Fungicides
Crop Pre Harvest	9
Crop Insurance	31
Program Premium
Custom Work #1 Fertilizer application	9
Custom Work #2 Pesticide application	18
Custom Work #3
Storage
Trucking	4
Marketing Fees	3
Other
Fuel	23
Mach. Repair & Maint.	25
Bldg. Repair & Maint.
Labour	20
General Variable Costs
Interest on Operating Capital	9
Total Variable Costs	367

Gross Margin (Revenue - Variable Costs)

Fixed Costs	Revised Jan 2009 Sample cost per Acre	Your Farm Budget
Depreciation	51
Interest on Term Loans	38
Land Costs
Long-Term Leases
General Fixed Costs	9
Total Fixed Costs	97
Total Expenses	464

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

For more information:
Toll Free: 1-877-424-1300
Local: (519) 826-4047
E-mail: ag.info.omafra@ontario.ca