Publication 60—Hard Red Winter Wheat

Hard Red Winter Wheat

Operating Expenses
(costs based on projected yield of 2.1 tonnes/acre (76 bu/ac))		 Tillage System Your Farm Budget
Conventional
Sample Costs/Acre 		No-Till
Sample Costs/Acre
Seed - 140 lb/acre certified treated (1.4-17 M seeds/acre)
66.10
66.10
  
Fertilizer - 110 kg/ha N
67.40
67.40
  
Fertilizer - 20 kg/ha P
9.65
9.65
  
Fertilizer - 20 kg/ha K
9.40
9.40
  
Herbicide - broadleaf weeds
6.60
6.60
  
Herbicide - other weed control, if required
     
Fungicide - fusarium head blight
16.40
16.40
  
Tractor and Machine Expenses - Fuel (17 L conv., 8L no till) and lubricants
19.75
9.30
  
Tractor and Machine Expenses - Repairs and Maintenance
15.55
12.45
  
Crop insurance
12.75
12.75
  
Marketing board fee ($2.00/tonne)
4.20
4.20
  
Custom work (fertilizer application, mixing & delivery)
10.20
10.20
  
Custom work (2 pesticide applications)
20.40
20.40
  
Added expense for IP
 
 
  
Trucking ($8.35/tonne)
17.55
17.55
  
Land rent
 
 
  
Operator labour (self or hired)
12.45
5.45
  
Interest on operating
9.60
8.90
  
Total Operating Expenses - Grain
298.00
276.75
  

Expenses for Straw Tillage System Your Farm Budget
Conventional
Sample Costs/Acre 		No-Till
Sample Costs/Acre
Tractor and Machine Expenses - Fuel (3 L) and lubricants
4.00
4.00
  
Tractor and Machine Expenses - Repairs and maintenance
3.25
3.25
  
Twine
2.80
2.80
  
Other
11.55
11.55
  
Total Operating Expenses - Straw
21.60
21.60
  
Total Operating Expenses
319.60
298.35
  

Revenue Your Farm Budget
Expected wheat yield _______________
  
Expected wheat price _______________
  
Total Market Revenue (Yield x Price)
 
Additional income from IP
 
Program payment
 
Total Wheat Revenue
 
Expected straw yield
  
Expected straw price
  
Total Straw Revenue (Yield x Price)
  
Total Revenue
  
Gross Margin (Revenue - Operating Expenses)
  

Overhead Expenses Tillage System Your Farm Budget
Conventional No-Till
Wheat Only Wheat & Straw Wheat Only Wheat & Straw
Machinery - Depreciation
29.05
33.20
18.65
22.80
  
Machinery - Interest on investment
14.45
16.45
10.80
12.80
  
Land
 
 
 
 
  
Other overhead
11.25
12.30
7.05
8.10
  
Total Expenses
352.75
381.55
313.25
342.05
  
Breakeven price on your farm is: (total expenses/expected yield)
  

For more information:
Toll Free: 1-877-424-1300
Local: (519) 826-4047
E-mail: ag.info.omafra@ontario.ca
Author: John Molenhuis - Business Analysis and Cost of Production Program Lead/OMAFRA
Creation Date: 14 December 2010
Last Reviewed: 12 December 2012