Forage Enterprise Budgets
Agricultural Economics - AEC 2006-04
Kenny Burdine Dick Trimble
Garry Lacefield Ray Smith Bill Witt Tom Keene
Alfalfa Grass / Pasture E+ Fescue
Hay Mixed Hay Maintenance Replacement
Included in this publication is an Alfalfa Hay budget, a Grass / Mixed Hay budget, a basic pasture maintenance budget,
and an E+ Fescue Replacement budget. Navigation between the budgets is achieved by clicking on the buttons above.
The purpose of these budgets is to serve as a management and decision-making guide for current and
prospective producers of these enterprises.
These budgets are not intended to replace a producer's own records and estimates.
Producers are strongly encouraged to adapt these budgets to their specific operations.
In the absence of such data, however, these budgets can serve as a reasonably accurate cost and income guide.
These budget estimates are based on the best and most accurate cost and price information available, but assumptions
were made for many parameters. Costs and returns are based on production practices and yield levels thought
to be representative of typical producers in Kentucky given normal growing conditions and markets. This
publication allows producers to change prices and quantities for easy adaptation of the budgets to their own farming
situation.
All of the blue numbers are input cells. These are the numbers you can change. Due to formulas, every cell cannot be
manipulated. Therefore, costs that are expressed on a per acre basis have the quantity column fixed at 1 acre.
Questions or Comments?
Kenny Burdine
kburdine@uky.edu
University of Kentucky
Department of Agricultural Economics
412 Charles E. Barnhart Building
Lexington, KY 40546-0276
Phone: (859) 257-7273
ALFALFA HAY ENTERPRISE
ESTIMATED COSTS AND RETURNS Return to
Total Acres in Enterprise: 200 acre Intro Page
Number Bales per Acre: 150.0
Weight per Bale: 60 lbs
AMOUNT UNIT PRICE FREQUENCY TOTAL TOTAL
GROSS RETURNS Per Acre Enterprise
Hay (Sold or On-Farm Value) 4.5 tons $85.00 annually $382.50 $76,500
VARIABLE COSTS
Seed 20 lbs $4.00 every 5 years $16.00 $3,200
Nitrogen 0 lbs $0.50 annually $0.00 $0
Phosphorus 50 lbs $0.35 annually $17.50 $3,500
Potassium 200 lbs $0.25 annually $50.00 $10,000
Boron 2 lbs $7.50 every 2 years $7.50 $1,500
Lime 3 tons $15.00 every 3 years $15.00 $3,000
Herbicides 1 acre $35.00 annually $35.00 $7,000
Hay Preservative 1 acre $0.00 annually $0.00 $0
Fuel and Oil 1 acre $20.00 annually $20.00 $4,000
Repairs 1 acre $15.00 annually $15.00 $3,000
Custom Application 1 acre $5.00 annually $5.00 $1,000
Equipment Rental 1 acre $0.00 annually $0.00 $0
Cash Land Rent 1 acre $0.00 annually $0.00 $0
Hired Labor 6 hours / ac $8.00 annually $48.00 $9,600
Interest (1/2 year) $229.00 dollars 3.0% annually $6.87 $1,374
TOTAL VARIABLE COST $235.87 $47,174
RETURN ABOVE VARIABLE COST $146.63 $29,326
FIXED COSTS
Annual Interest on Investment 1 acre $18.00 $18.00 $3,600
Annual Depreciation of Capital Assets 1 acre $35.00 $35.00 $7,000
Insurance: Casualty and Liability 1 acre $0.00 $0.00 $0
Operator and Family Labor 6 hours / ac $10.00 $60.00 $12,000
TOTAL FIXED COST $113.00 $22,600
TOTAL COSTS $348.87 $69,774
RETURN TO LAND AND MANAGEMENT $33.63 $6,726
Break Even Price $52.42 per ton to pay VARIABLE costs at 4.5 tons per acre
Break Even Yield 2.8 tons to cover VARIABLE costs at $4.50 per ton
Break Even Price $77.53 per ton to cover TOTAL costs at 4.5 tons per acre
Break Even Yield 4.1 tons to cover TOTAL costs at $85.00 per ton
University of Kentucky, College of Agriculture, Cooperative Extension Service.
GRASS / MIXED HAY ENTERPRISE
ESTIMATED COSTS AND RETURNS Return to
Total Acres in Enterprise: 200 acres Intro Page
Number Bales per Acre: 7.0
Weight per Bale: 1000 lbs
AMOUNT UNIT PRICE FREQUENCY TOTAL TOTAL
GROSS RETURNS Per Acre Enterprise
Hay (Sold or On-Farm Value) 3.5 tons $70.00 annually $245.00 $49,000
VARIABLE COSTS
Seed 15 lbs $3.50 every 3 years $17.50 $3,500
Nitrogen 20 lbs $0.50 annually $10.00 $2,000
Phosphorus 40 lbs $0.35 annually $14.00 $2,800
Potassium 70 lbs $0.25 annually $17.50 $3,500
Lime 3 tons $15.00 every 3 years $15.00 $3,000
Herbicides 1 acre $0.00 annually $0.00 $0
Hay Preservative 1 acre $0.00 annually $0.00 $0
Fuel and Oil 1 acre $10.00 annually $10.00 $2,000
Repairs 1 acre $9.77 annually $9.77 $1,954
Custom Application 1 acre $5.00 annually $5.00 $1,000
Equipment Rental 1 acre $0.00 annually $0.00 $0
Cash Land Rent 1 acre $0.00 annually $0.00 $0
Hired Labor 6 hours $8.00 annually $48.00 $9,600
Interest (1/2 year) $146.77 dollars 3.0% annually $4.40 $881
TOTAL VARIABLE COST $151.17 $30,234
RETURN ABOVE VARIABLE COST $93.83 $18,766.05
FIXED COSTS
Annual Interest on Investment 1 acre $12.00 $12.00 $2,400
Annual Depreciation of Capital Assets 1 acre $30.00 $30.00 $6,000
Insurance: Casualty and Liability 1 acre $0.00 $0.00 $0
Operator and Family Labor 3 hours $10.00 $30.00 $6,000
TOTAL FIXED COST $72.00 $14,400
TOTAL COSTS $223.17 $44,634
RETURN TO LAND AND MANAGEMENT $21.83 $4,366.05
Break Even Price $43.19 per ton to pay VARIABLE costs at 3.5 tons per acre
Break Even Yield 2.2 tons to cover VARIABLE costs at $70.00 per ton
Break Even Price $63.76 per ton to cover TOTAL costs at 3.5 tons per acre
Break Even Yield 3.2 tons to cover TOTAL costs at $70.00 per ton
University of Kentucky, College of Agriculture, Cooperative Extension Service.
Annual Pasture Maintenance Budget Return to
Intro Page
EXPECTED COSTS Quantity Unit Price / Unit Freq. of App. Annual Cost
Lime 2 tons $15.00 Every 3 years $10.00
Nitrogen 40 lbs $0.50 Annually $20.00
Phosphate 30 lbs $0.35 Annually $10.50
Potash 50 lbs $0.35 Annually $17.50
Legume Seed 12 lbs $3.00 Every 3 years $12.00
Herbicide 0 quarts $0.00 Annually $0.00
Machinery Charge 1 n/a $5.00 Annually $5.00
Other 0 units $0.00 Annually $0.00
Other 0 units $0.00 Annually $0.00
TOTAL COST $75.00
University of Kentucky, College of Agriculture, Cooperative Extension Service
Budget for Replacing Endophyte Fescue
(Assuming herbicide application in summer, re-seeding in fall, and grazing the following spring)
EXPECTED COSTS Quantity Unit Price / Unit Annual Cost
Herbicide 2 apps $9.00 $18.00
Grass Seed 12 lbs $4.50 $54.00
Legume Seed 12 lbs $3.00 $36.00
Lime 2 tons $15.00 $30.00
Nitrogen 20 lbs $0.45 $9.00
Phosphate 30 lbs $0.35 $10.50 Return to
Potash 30 lbs $0.35 $10.50 Intro Page
Machinery Charge 2 apps $6.50 $13.00
Value of lost production 1 acre $30.00 $30.00
Other 0 units $0.00 $0.00
Other 0 units $0.00 $0.00
TOTAL COST $211.00
University of Kentucky, College of Agriculture, Cooperative Extension Service