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Publication 60 —Alfalfa -Timothy Hay

Author: John Molenhuis - Business Analysis and Cost of Production Program Lead/OMAFRA
Creation Date: 11 December 2008
Last Reviewed: 09 April 2009

Alfalfa -Timothy Hay

Direct Seeding Establishment
 Sample Costs/Acre Your Farm Budget
Seed - 12 lb/acre alfalfa
54.10
  
Other seed (Timothy - 4 lb/acre)
7.40
  
Inoculant
1.05
  
Fertilizer - 40 kg/ha P
29.20
  
Fertilizer - 30 kg/ha K
19.40
  
Herbicide - burndown and broadleaf control
24.35
  
Crop insurance
3.60
  
Tractor and Machine Expenses - Fuel (20 L) and lubricants
19.20
  
Tractor and Machine Expenses - Repairs
18.00
  
Custom Work (2 pesticide applications)
18.05
  
Custom Work (2 fertilizer applications, mixing & delivery)
18.05
  
Custom Work (bale wrapping - 1 cut)
30.85
  
Twine
   
Operator labour (self or hired)
35.30
  
Interest
12.15
  
Total Establishment Year Expenses
290.70
  

Annual Operating Expenses (assuming 2 cuts)*
Sample Costs/Acre
 Your Farm Budget
Establishment year expenses - over 4 years (less Est. year sales)
25.80
  
Fertilizer - 130 kg/ha K (applied in fall)
84.05
  
Fertilizer
 
Tractor and Machine Expenses - Fuel (15L) and lubricants
14.80
  
Tractor and Machine Expenses - Repairs
11.70
  
Twine
  
  
Crop insurance
11.05
  
Custom work (2 fertilizer application, mixing & delivery)
18.05
  
Custom work (bale wrapping)
61.70
  
Other costs
  
  
Land rent
   
Operator labour (self or hired)
35.40
  
Interest on operating
6.95
  
Total Annual Operating Expenses
269.50
  
*Note: Assuming 3 cuts, the Annual Operating Expenses per acre would increase

Revenue Your Farm Budget
Expected Yield _______________
 
Expected Price _______________
 
Total Revenue (Yield x Price)
 
Gross Margin (Revenue - Operating Expenses)
 

Overhead Expenses
Sample Costs/Acre
 Your Farm Budget
Machinery - Depreciation
34.80
  
Machinery - Interest on investment
26.00
  
Land
  
  
Other overhead
8.00
  

Nitrogen Credit to Following Crops in Rotation
Sample Costs/Acre
 Your Farm Budget
Nitrogen credit ($/acre = N reduction (from Table 1 x price of N)
    
Grain yield increase
    
Total benefits/year
  
  
Total Expenses
338.30
  

 

2009 Crop Comparison Summary Table for Selected Field Crops ($/acre)*

| Alfalfa-Timothy Hay | Barley | Spring Canola | Winter Canola |

| Coloured Beans | Grain Corn | Grain Corn - Genetically Enhanced Hybrids |

| Silage Corn | Flax | Oats |

| Organic - Grain Corn and Soybeans | Organic - Winter Wheat and Spelt | Organic - Barley and Oats |

| Soybeans | Soft Winter Wheat | Hard Red Winter Wheat |

| Hard Red Spring Wheat | White/Black Beans |

| Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) Resources |

| Related Links |

For more information:
Toll Free: 1-877-424-1300
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E-mail: ag.info.omafra@ontario.ca