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Mustard Enterprise Budget

Author: John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date: 8 May 2006
Last Reviewed: 8 May 2006
 
Revenue
 Revised March 2006
Sample cost
per Acre		 Your Farm Budget
Expected Yield (lbs/ac)
1400.00
  
Expected Price ($/lb)
0.22
  
Total Expected Revenue (Yield x Price)    
add: Program Payment    
Total Revenue    

 
Expenses
Revised March 2006
Sample cost
per Acre
 Your Farm Budget
Seed - 30,000 Kernels
14
  
Seed Treatment
  
  
Fertilizer #1 N-P-K

39

  
Fertilizer #2
11
  
Fertilizer #3
9
  
Herbicides - Burndown
11
 
Herbicides -
 
  
Herbicides -
  
  
Insecticides
  
  
Fungicides
15
  
Crop Insurance
7
  
Program Premium
  
  
Custom Work - #1 Pesticide application
27
  
Custom Work - #2 Fertilizer application, mixing, delivery
9
  
Custom Work - #3 Combining
 
 
Drying
  
 
Storage
   
  
Trucking
4
  
Marketing Fees
  
  
Fuel
11
  
Mach. Repair & Maint.
16
 
Bldg. Repair & Maint.
  
  
Labour
8
  
General variable costs (see below to allocate general costs)
  
  
Interest on Operating capital
5
  
Total Variable Costs
186
  

 
Fixed Costs
 Revised March 2006
Sample cost
per Acre		 Your Farm Budget
Depreciation
27
  
Interest on Term Loans
19
  
Land Costs
  
  
Long-Term Leases
  
  
General Fixed Costs (see below to allocate general costs)
5
  
Total Fixed Costs
52
  
Total Expenses
238
 

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

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