Oats - Organic Enterprise Budget

Revenue
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Expected Oats Yield (bu/ac)
62.00
 
Expected Oats Price ($/bu)
5.40
 
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 Jan 2012
Sample cost
per Acre
Your Farm Budget
Seed - 105 lb/acre certified, organic
46
 
Seed Treatment
 
Fertilizer #1 Manure/compost
   
Fertilizer #2
 
 
Fertilizer #3
 
 
Herbicides - Annual grasses
 
 
Herbicides - Broadleaf Herbicides
  
 
Herbicides - other weed control
   
 
Insecticides
   
 
Fungicides
 
 
Crop Insurance
6
 
Program Premium
    
 
Custom Work - #1 Fertilizer application
  
 
Custom Work - #2 Pesticide application
  
 
Drying
 
 
Storage
 
 
Trucking
8
 
Marketing Fees
 
Twine
 
Certification fees
3
 
Other - Soil maintenance (cover crop, fallow, etc.)
50
 
Fuel
21
 
Mach. Repair & Maint.
17
 
Bldg. Repair & Maint.
   
Labour
45
 
General Variable Costs
   
Interest on Operating Capital
4
 
Total Variable Costs
199
 

 
Fixed Costs
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Depreciation
30
 
Interest on Term Loans
15
 
Land Costs
  
 
Long-Term Leases
  
 
General Fixed Costs (see below to allocate general costs)
12
 
Total Fixed Costs
58
 
Total Expenses
256
 

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


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: 7 March 2007
Last Reviewed: 13 March 2012