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Oats - Organic Enterprise Budget

Author: John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date: 7 March 2007
Last Reviewed: 3 March 2008
Revenue Revised January 2008
Sample cost
per Acre		 Your Farm Budget
Expected Oats Yield (bu/ac)
62.00
  
Expected Oats Price ($/bu)
4.45
  
Total Expected Market Revenue (Yield x Price)
  
  
add: Program payment
   
  
Total Expected Oats Revenue    
Expected Straw Yield (bales/ac)
-
  
Expected Straw Price ($/bale)
-
  
Total Expected Straw Revenue (Yield x Price)    
Total Expected Revenue (Straw Rev. + Oats Rev.)    

 
Expenses Revised January 2008
Sample cost
per Acre		 Your Farm Budget
Seed - 105 lb/acre certified, organic
40
  
Seed Treatment
 
Fertilizer #1 Manure/compost

0

  
Fertilizer #2
 
  
Fertilizer #3
 
  
Herbicides - Annual grasses
 
 
Herbicides - Broadleaf Herbicides
  
  
Herbicides - other weed control
   
  
Insecticides
   
  
Fungicides
 
  
Crop Insurance
4
  
Program Premium
    
  
Custom Work - #1 Fertilizer application
  
  
Custom Work - #2 Pesticide application
  
  
Drying
 
  
Storage
 
  
Trucking
7
  
Marketing Fees
0
  
Twine
0
  
Certification fees
2
  
Other - Soil maintenance (cover crop, fallow, etc.)
50
  
Fuel
8
  
Mach. Repair & Maint.
12
  
Bldg. Repair & Maint.    
Labour
14
  
General Variable Costs    
Interest on Operating Capital
5
  
Total Variable Costs
142
  

 
Fixed Costs Revised January 2008
Sample cost
per Acre		 Your Farm Budget
Depreciation
21
  
Interest on Term Loans
15
  
Land Costs
  
  
Long-Term Leases
  
  
General Fixed Costs (see below to allocate general costs)
5
  
Total Fixed Costs
41
  
Total Expenses
183
 

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