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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: 29 July 2008
Revenue
Revised July 2008
Sample cost
per Acre
Your Farm Budget
Expected Yield (bu/ac)
38.00
  
Expected Price ($/bu)
12.00
  
Total Expected Revenue (Yield x Price)
 
  
add: Program Payment
 
  
Total Revenue
 
  


Expenses
Revised July 2008
Sample cost
per Acre
Your Farm Budget
Seed - 200,000 seeds/acre in 14" rows*
52
  
Seed Treatment/ Inoculant
5
  
Fertilizer#1 40 kg/ac 6-24-24
33
  
Fertilizer #2
 
  
Fertilizer #3
 
  
Herbicide - Annual grasses and broadleaf weeds
9
  
Herbicide - Burndown
9
  
Herbicide - other weed control
 
  
Insecticides
 
  
Fungicides
 
  
Crop Insurance
10
 
Program Premium
 
  
Custom Work #1 Pesticide application
18
  
Custom Work #2 Fertilizer application
9
  
Custom Work #3
 
  
Drying
10
  
Storage
9
  
Trucking
8
  
Marketing Fees
1
  
Other
 
  
Fuel
13
  
Mach. Repair & Maint.
11
  
Bldg. Repair & Maint.
 
  
Labour
6
  
General Variable Costs
 
  
Interest on Operating Capital
7
  
Total Variable Costs
210
  

Gross Margin (Revenue - Variable Costs)

Fixed Cost
Revised July 2008
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
242
  

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 Your Farm Budget
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          

 

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