In This Section

Topics

Flax - Grain Enterprise Budget

Author: John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date: 8 May 2006
Last Reviewed: 3 March 2008
 
Revenue
 Revised January 2008
Sample cost
per Acre		 Your Farm Budget
Expected Yield (bu/ac)
28.00
  
Expected Price ($/bu)
12.70
  
Total Expected Revenue (Yield x Price)
    
add: Program Payment
    
Total Revenue
    

 
Expenses
Revised January 2008
Sample cost
per Acre
 Your Farm Budget
Seed - 37.5 lb/ac certified, treated
18
  
Seed Treatment
 
  
Fertilizer #1 18 kg/ac N

22

  
Fertilizer #2 9 kg/ac P
8
  
Fertilizer #3 9 kg/ac K
6
  
Herbicides - Annual grasses
19
 
Herbicides - Dessicant
9
  
Herbicide - Other weed control
 
  
Insecticides
 
  
Fungicides
 
  
Crop Insurance
 
  
Program Premium
 
  
Custom Work - #1 Pesticide application
18
  
Custom Work - #2 Fertilizer application, mixing, delivery
9
  
Custom Work - #3 Other
 
  
Drying
 
  
Storage
 
  
Trucking
5
  
Marketing Fees
 
  
Other
3
  
Fuel
15
  
Mach. Repair & Maint.
19
  
Bldg. Repair & Maint.
 
  
Labour
20
  
General variable costs (see below to allocate general costs)
 
  
Interest on Operating capital
6
  
Total Variable Costs
175
  

 
Fixed Costs
 Revised January 2008
Sample cost
per Acre		 Your Farm Budget
Depreciation
30
  
Interest on Term Loans
23
  
Land Costs
 
  
Long-Term Leases
 
  
General Fixed Costs (see below to allocate general costs)
5
  
Total Fixed Costs
58
  
Total Expenses
234
 

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

| Top of Page |

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