Spelt - Organic Enterprise Budget

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Spelt - Organic 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 Spelt Yield (tonne/ac)	1.00
Expected Spelt Price ($/tonne)	400.00
Total Expected Revenue (Yield x Price)
Expected Straw Yield (bales/ac)	-
Expected Straw Price ($/bale)	-
Total Expected Straw Revenue (Yield x Price)
Total Expected Revenue (Straw Rev. + Spelt Rev.)

Expenses	Revised January 2008 Sample cost per Acre	Your Farm Budget
Seed - 180 lbs/acre certified, organic	70
Seed Treatment
Fertilizer #1 Manure/compost	70
Fertilizer #2
Fertilizer #3
Herbicides - Annual grasses
Herbicides - Broadleaf Herbicides
Herbicides - other weed control
Insecticides
Fungicides
Growth Regulators
Crop Insurance	9
Program Premium
Custom Work - #1 Fertilizer application
Custom Work - #2 Pesticide application
Drying
Storage
Trucking	7
Marketing Fees
Twine	0
Certification fees	2
Other - Soil maintenance (cover crop, fallow, etc.)	50
Fuel	9
Mach. Repair & Maint.	12
Bldg. Repair & Maint.
Labour	14
General Variable Costs
Interest on Operating Capital	14
Total Variable Costs	257

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	298

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

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