Soft Winter Wheat - Organic Enterprise Budget

Revenue
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Expected Yield (bu/ac)
50.00
 
Expected Price ($/bu)
11.55
 
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 Jan 2012
Sample cost
per Acre
Your Farm Budget
Seed - 150 lbs/acre certified, organic (1.4 - 1.7 M seeds/acre)
77
 
Seed Treatment
 
Fertilizer #1 Manure/compost

100

 
Fertilizer #2
 
 
Fertilizer #3
 
 
Herbicides - Annual grasses
 
 
Herbicides - Broadleaf weeds
  
 
Herbicides - other weed control
   
 
Insecticides
   
 
Fungicides
 
 
Growth Regulators
   
Crop Insurance
17
 
Program Premium
     
 
Custom Work - #1 Fertilizer application
   
 
Custom Work - #2 Pesticide application
   
 
Drying
 
 
Storage
 
 
Trucking
11
 
Marketing Fees ($2.00/tonne)
3
 
Twine
0
 
Certification fees
3
 
Other - Soil maintenance (cover crop, fallow, etc.)
50
 
Fuel
20
 
Mach. Repair & Maint.
16
 
Bldg. Repair & Maint.
 
 
Labour
42
 
General Variable Costs
 
 
Interest on Operating Capital
11
 
Total Variable Costs
348
 

 
Fixed Costs
Revised Jan 2012
Sample cost
per Acre
Your Farm Budget
Depreciation
29
 
Interest on Term Loans
14
 
Land Costs
  
 
Long-Term Leases
  
 
General Fixed Costs (see below to allocate general costs)
11
 
Total Fixed Costs
55
 
Total Expenses
403
 

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


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: 8 May 2006
Last Reviewed: 13 March 2012