Ginseng Enterprise Budget

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Ginseng Enterprise Budget

Author:	John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date:	28 October 2003
Last Reviewed:	10 August 2007

Revenue	Revised August 2003 Sample cost per Acre	Your Farm Budget
Root
Expected Yield (lbs/ac)	2200
Expected Price ($/lb)	17.00
Total Expected Revenue (Yield x Price)	37400
Stratified Seed
Expected Yield (lbs/ac)	300
Expected Price ($/lb)	40.00
Total Expected Revenue (Yield x Price)	12000
Other Income
Total Revenue	49400

Establishment Costs (preplanting and planting and growth years)	Revised August 2003 Sample cost per Acre	Your Farm Budget
Preplant year:
Seed	4000
Soil Amendments	800
Straw	700
Seasonal Labour	1036
Operator Labour	1950
Fertilizers:
#1 NPK	150
#2 Lime (spread)	70
Pesticides	250
Custom Work - Fumigant App.	1400
Custom Work - Seeding	1000
Other - Soil Testing	250
Indirect Costs
Fuel	400
Equip. Repair & Maintenance	160
General Variable Costs	200
Interest on Operating Capital	742
Total Variable Costs for Preplant Year	13108
Fixed Costs:
Depreciation	1500
Interest on Term Loans	800
Long-Term Leases	400
General Fixed Costs	100
Total Fixed Costs for Preplant Year	2800
Total Costs for Preplant Year	15908
Growth Year 1
Seasonal Labour	1036
Operator Labour	975
Fertilizers - #1 NPK	360
Fertilizers - #2
Pesticides	2000
Other - Soil Testing	150
Other - Consulting	150
Indirect Costs
Fuel	400
Equipment Repair & Maintenance	160
General Variable Costs	200
Interest on Operating Capital	326
Total Variable Costs for Growth Year 1	5757
Fixed Costs:
Depreciation	1500
Interest on Term Loans	800
Long-Term Leases	400
General Fixed Costs	100
Total Fixed Costs for Growth Year 1	2800
Total Costs for Growth Year 1	8557
Growth Year 2
Seasonal Labour	1036
Operator Labour
Fertilizers - #1 NPK	525
Fertilizers - #2
Pesticides	2000
Other - Soil Testing	150
Other - Consulting	150
Indirect Costs
Fuel	400
Equip. Repair & Maintenance	160
General Variable Costs	200
Interest on Operating Capital	336
Total Variable Costs for Growth Year 2	5932
Fixed Costs:
Depreciation	1500
Interest on Term Loans	800
Long-Term Leases	400
General Fixed Costs	100
Total Fixed Costs for Growth Year 2	2800
Total Costs for Growth Year 2	8732
Total Costs for Establishment
Annual Harvest Year Costs
Seasonal Labour	2176
Operator Labour	2340
Fertilizers - #1 NPK	525
Fertilizers - #2
Fertilizers - #3
Pesticides	2000
Other - Soil Testing
Other - Consulting
Custom Drying Refrigeration	5500
Containers/Shipping	500
Crop Insurance
Other - Shade/Straw
Other - Shade Removal	1500
Custom Digging	1500
Indirect Costs
Fuel	400
Machine Repair and Maintenance	160
Building Repair and Maintenance	20
Rent and Labour
General Variable Costs	200
Interest on Operating Capital	505
Total Variable Costs	17326
Gross Margin (Revenue - Variable Costs)	32074
Fixed Costs:
Depreciation	1500
Interest on Term Loans	800
Long-Term Leases	400
General Fixed Costs	100
Total Fixed Costs	2800
Total Variable and Fixed Costs	20126

Breakeven Price on Your Farm is (Total Expenses/Expected Yield)

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