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Soft Winter Wheat - Organic Enterprise Budget

Author: John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date: 8 May 2006
Last Reviewed: 7 March 2007
Revenue
 Revised January 2008
Sample cost
per Acre		 Your Farm Budget
Expected Yield (bu/ac)
60.00
  
Expected Price ($/bu)
10.90
  
Total Expected Revenue (Yield x Price)
  
  
add: Program Payment
   
  
Total Expected Revenue
 
  
Expected Straw Yield (bales/ac)
-
  
Expected Straw Price ($/bale)
-
  
Total Expected Straw Revenue (Yield x Price)
 
  
Total Expected Revenue (Straw Rev. + Wheat Rev.)
 
  

 
Expenses
Revised January 2008
Sample cost
per Acre
 Your Farm Budget
Seed - 150 lbs/acre certified, organic (1.4 - 1.7 M seeds/acre)
51
  
Seed Treatment
 
Fertilizer #1 Manure/compost

70

  
Fertilizer #2
 
  
Fertilizer #3
 
  
Herbicides - Annual grasses
 
 
Herbicides - Broadleaf weeds
  
  
Herbicides - other weed control
   
  
Insecticides
   
  
Fungicides
 
  
Growth Regulators    
Crop Insurance
11
  
Program Premium
     
  
Custom Work - #1 Pesticide application
   
  
Custom Work - #2 Fertilizer application
   
  
Drying
 
  
Storage
 
  
Trucking
11
  
Marketing Fees ($2.00/tonne)
3
  
Twine
0
  
Certification fees
2
  
Other - Soil maintenance (cover crop, fallow, etc.)
50
  
Fuel
12
  
Mach. Repair & Maint.
16
  
Bldg. Repair & Maint.
 
  
Labour
16
  
General Variable Costs
 
  
Interest on Operating Capital
14
  
Total Variable Costs
256
  

 
Fixed Costs
 Revised January 2008
Sample cost
per Acre		 Your Farm Budget
Depreciation
26
  
Interest on Term Loans
19
  
Land Costs
  
  
Long-Term Leases
  
  
General Fixed Costs (see below to allocate general costs)
4
  
Total Fixed Costs
50
  
Total Expenses
306
 

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