Soya - Roundup Ready

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Soya - Roundup Ready

Author:	John Molenhuis - Business Analysis and Cost of Production Program Lead/OMAFRA
Creation Date:	20 May 2004
Last Reviewed:	19 March 2009

Revenue	Revised Jan 2009 Sample cost per Acre	Your Farm Budget
Expected Yield (bu/ac)	38.00
Expected Price ($/bu)	11.00
Total Expected Revenue (Yield x Price)
add: Program Payment
Total Revenue

Expenses	Revised Jan 2009 Sample cost per Acre	Your Farm Budget
Seed - 200,000 seeds/acre in 14" rows*	62
Seed Treatment/Inoculant	5
Fertilizer#1 N, if required
Fertilizer #2 20 kg/ha P	15
Fertilizer #3 40 kg/ha K	26
Herbicide - Annual grasses and broadleaf weeds	9
Herbicide - Burndown	9
Herbicide - other weed control
Insecticides
Fungicides
Crop Insurance	12
Program Premium
Custom Work #1 Pesticide application	18
Custom Work #2 Fertilizer application	9
Custom Work #3
Drying	13
Storage	9
Trucking	7
Marketing Fees	1
Other
Fuel	9
Mach. Repair & Maint.	11
Bldg. Repair & Maint.
Labour	6
General Variable Costs
Interest on Operating Capital	5
Total Variable Costs	226

Gross Margin (Revenue - Variable Costs)

Fixed Cost	Revised Jan 2009 Sample cost per Acre	Your Farm Budget
Depreciation	17
Interest on Term Loans	12
Land Costs
Long-Term Leases
General Fixed Costs	3
Total Fixed Costs	32
Total Expenses	258

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