Grain Corn - Organic Enterprise Budget

 
Revenue
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Expected Yield (bu/ac)
105.00
 
Expected Price ($/bu)
12.70
 
Total Expected Revenue (Yield x Price)
   
add: Program Payment
   
Total Revenue
   

 
Expenses
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Seed - 30,000 Kernels, certified, organic
73
 
Seed Treatment
  
 
Fertilizer #1 Manure/compost

100

 
Fertilizer #2
 
 
Fertilizer #3
 
 
Herbicides - Annual grasses
 
 
Herbicides - Broadleaf Herbicides
  
 
Herbicides - other weed control
   
 
Insecticides
   
 
Fungicides
 
 
Crop Insurance
15
 
Program Premium
   
 
Custom Work - #1 Pesticide application
 
 
Custom Work - #2 Fertilizer application, mixing, delivery
 
 
Custom Work - #3 Other
   
 
Drying 8 points
58
 
Storage
22
 
Trucking
24
 
Marketing Fees
1
 
Certification Fees
3
 
Other - Soil maintenance (cover crop, fallow, etc.)
50
 
Fuel
33
 
Mach. Repair & Maint.
20
 
Bldg. Repair & Maint.
   
 
Labour
61
 
General variable costs (see below to allocate general costs)
   
 
Interest on Operating capital
9
 
Total Variable Costs
470
 

 
Fixed Costs
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Depreciation
36
 
Interest on Term Loans
18
 
Land Costs
  
 
Long-Term Leases
  
 
General Fixed Costs (see below to allocate general costs)
12
 
Total Fixed Costs
66
 
Total Expenses
535
 

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 Grain Corn Total Dollars Allocated to Grain Corn Per Acre Costs for Grain Corn Your Farm Budget
Example: 100 acres of Grain Corn
Legal and accounting fees
$1500.00
20%
$300.00
$3.00
 
General Variable Costs
$
Grain Corn
Grain Corn
Grain Corn
 
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
         

Transfer General Cost totals to the Budget

 


For more information:
Toll Free: 1-877-424-1300
E-mail: ag.info.omafra@ontario.ca
Author: John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date: 8 May 2006
Last Reviewed: 13 March 2012