Publication 60—Hard Red Winter Wheat

Author:	John Molenhuis - Business Analysis and Cost of Production Program Lead/OMAFRA
Creation Date:	10 December 2009
Last Reviewed:	10 December 209

Operating Expenses (costs based on projected yield of 2.1 tonne/ac (76 bu/ac))	Tillage System		Your Farm Budget
	Conventional Sample Costs/Acre	No-Till Sample Costs/Acre	Your Farm Budget
Seed - 140 lb/acre certified treated (1.4-17 M seeds/acre)	59.70	59.70
Fertilizer - 110 kg/ha N	52.45	52.45
Fertilizer - 20 kg/ha P	6.75	6.75
Fertilizer - 20 kg/ha K	9.80	9.80
Herbicide - broadleaf weeds	7.45	7.45
Herbicide - other weed control, if required
Fungicide
Tractor and Machine Expenses - Fuel (12 L conv., 9 L no till) and lubricants	11.95	9.05
Tractor and Machine Expenses - Repairs and Maintenance	16.15	10.90
Crop insurance	9.55	9.55
Marketing board fee ($2.00/tonne)	4.20	4.20
Custom work (fertilizer application, mixing & delivery)	9.05	9.05
Custom work (pesticide application)	9.05	9.05
Added expense for IP
Trucking ($7.05/tonne)	14.95	14.95
Land rent
Operator labour (self or hired)	10.30	6.15
Interest on operating	5.95	5.65
Total Operating Expenses - Grain	227.30	214.70

Expenses for Straw	Tillage System		Your Farm Budget
Expenses for Straw	Conventional Sample Costs/Acre	No-Till Sample Costs/Acre	Your Farm Budget
Tractor and Machine Expenses - Fuel (3 L) and lubricants	2.75	2.75
Tractor and Machine Expenses - Repairs and maintenance	3.25	3.25
Twine	2.75	2.75
Other	11.30	11.30
Total Operating Expenses - Straw	20.05	20.05
Total Operating Expenses	247.35	234.75

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
	Conventional		No-Till
	Wheat Only	Wheat & Straw	Wheat Only	Wheat & Straw
Machinery - Depreciation	26.30	30.30	16.00	20.00
Machinery - Interest on investment	19.10	22.60	11.60	15.10
Land
Other overhead	4.35	5.35	3.00	4.00
Total Expenses	277.05	305.60	245.30	273.85
Breakeven price on your farm is: (total expenses/expected yield)

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