Publication 60 —Alfalfa -Timothy Hay

Alfalfa -Timothy Hay

Direct Seeding Establishment
 Sample Costs/Acre Your Farm Budget
Seed - 12 lb/acre alfalfa
54.80
  
Other seed (Timothy - 4 lb/acre)
8.95
  
Inoculant
1.05
  
Fertilizer - 40 kg/ha P
19.35
  
Fertilizer - 30 kg/ha K
14.10
  
Herbicide - burndown and broadleaf control
23.10
  
Crop insurance
2.35
  
Tractor and Machine Expenses - Fuel (32 L) and lubricants
37.40
  
Tractor and Machine Expenses - Repairs

20.50

  
Custom Work (2 pesticide applications)
20.40
  
Custom Work (2 fertilizer applications, mixing & delivery)
20.45
  
Custom Work (bale wrapping - plastic - 50% yield)
30.85
  
Twine
   
Operator labour (self or hired)
27.50
  
Interest
10.15
  
Total Establishment Year Expenses
290.95
  

Annual Operating Expenses (costs based on projected yield of 3.5 tonne/acre)
Sample Costs/Acre
 Your Farm Budget
Establishment year expenses - over 4 years (less Est. year sales)
25.20
  
Fertilizer - 130 kg/ha K (applied in fall)
61.05
  
Fertilizer - (other)
 
Tractor and Machine Expenses - Fuel (19 L) and lubricants
22.55
  
Tractor and Machine Expenses - Repairs
14.90
  
Twine
  
  
Crop insurance
25.05
  
Custom work (2 fertilizer applications, mixing & delivery)
20.45
  
Custom work (bale wrapping - plastic)
61.70
  
Other costs
  
  
Land rent
   
Operator labour (self or hired)
26.25
  
Interest on operating
5.40
  
Total Annual Operating Expenses
262.55
  

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
19.00
  
Machinery - Interest on investment
11.40
  
Land
  
  
Other overhead
4.75
  

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
297.70
  

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: 11 December 2012