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alfalfa hay 2012 March28

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					                                    2012 ALFALFA HAY PRODUCTION BUDGET - DRAFT
                                                    Spring Seeding - 4 Year Stand 1
                                                                                                                         Updated:               3/28/2012

                                                                                                                                    2
        ITEM                                EXPLANATION            YOUR        PRICE PER                            YIELD (ton/A)                YOUR
                                                                                                           2
                                                                   PROD.          UNIT            Year 1               Years 2-4                BUDGET
                                                                  Numbers                             2.5          4.0      6.0           8.0       8.0

RECEIPTS 3
  Alfalfa Hay - High Quality                    60% of yield                   $180 /ton           270.00 432.00           648.00 864.00           864.00
  Alfalfa Hay - Lower Quality                   40% of yield                   $140 /ton           140.00 224.00           336.00 448.00           448.00
  Total Alfalfa Receipts                                                                           410.00 656.00           984.00 1,312.00       1,312.00

VARIABLE COSTS
  Seed 4                                          15 pounds                    $4.64 /lb                17.40    17.40      17.40       17.40      17.40

      Fertilizer 5
         P2O5(lbs)                    50          85        110       110    $0.345 /lb                 17.25    17.25      29.33       37.95      37.95
          K2O(lbs)                  220          300        300       300    $0.315 /lb                 69.30    69.30      94.50       94.50      94.50
      Lime(ton)                                  0.5                         $25.00 /ton                12.50    12.50      12.50       12.50      12.50
      Chemicals 6                                                                                       34.00    14.08      14.08       14.08      14.08
      Fuel, Oil, Grease 7                                                                                9.79    19.59      19.59       19.59      19.59
      Repairs 8                                                                                         10.53    21.06      21.06       21.06      21.06
      Miscellaneous 9                                                                                   16.00    16.00      17.00       18.00      18.00
      Int. on Oper. Cap. 10                        6 mo                        5.0%                      4.67     4.68       5.64        5.88       5.88
      Custom Hire11                                                                                     12.40    12.40      12.40       12.40      12.40
      Hauling11a                               $4.50 /gal Diesel                    20 miles            11.79    18.86      28.29       37.71      37.71
      Hired Labor 12                                                                                    10.00    10.00      10.00       10.00      10.00

TOTAL VARIABLE COSTS                       -Per Acre                                               225.63 233.12           281.78   301.07        301.07
                                           -Per Ton                                                 90.25 58.28             46.96    37.63         37.63

FIXED COSTS
   Labor Charge 12                      4 hours                              $13.50 /hour           54.00 54.00             54.00    54.00         54.00
   Management Charge                   5% of gross revenue                                          20.50 32.80             49.20    65.60         65.60
   Mach. And Equip. Charge 13                                                                       31.24 62.49             62.49    62.49         62.49
   Seedbed Preparation/Seeding Costs - Custom Hire 14                                               12.71 12.71             12.71    12.71         12.71
   Land Charge 15                                                                                  100.00 100.00           150.00   200.00        200.00

TOTAL FIXED COSTS                                                                                  218.45 262.00           328.40   394.80        394.80

TOTAL COSTS                                -Per Acre                                               444.08 495.11           610.18   695.87        695.87
                                           -Per Ton                                                177.63 123.78           101.70    86.98         86.98

RETURN TO LABOR AND MANAGEMENT 15                                                                   40.42       247.69     477.02 735.73           735.73
RETURN TO LAND                                                                                      65.92       260.89     523.82 816.13           816.13
RETURN ABOVE VARIABLE COSTS                                                                        184.37       422.88     702.22 1,010.93       1,010.93
RETURN ABOVE TOTAL COSTS                                                                           -34.08       160.89     373.82 616.13           616.13


Values highlighted in gold may be changed to assist in computing "Your Budget" Column using macros embeded within
      the spreadsheet.
Values highlighted in light blue are cells embedded with macros and will be calculted for the user based on data entered.
      These cells may be input manually, but macros will be overwritten!
Values highlighted in gray are stand alone cells that require direct input from the user.
  1
      Assumes production of 200 acres of Alfalfa Hay (Total Farm Size: 2000 Acres). Does not include storage costs.
  2
      Assumes a 2.5 ton yield in seeding year; yields of approximately 4, 6, or 8 tons in years 2 through 4
         years (depending on soil productivity).
  3
      Based on 86% DM alfalfa hay. Alfalfa hay quality will often vary over the growing season. High quality alfalfa is
         assumed to be harvested at optimum maturity and condition. Lower quality alfalfa is assumed to be harvested
         at less than optimum maturity and/or condition. 60% of crop is assumed to be harvested at optimum conditions.
  4
      Expenses associated with seeding are prorated over the four-year stand life.
  5
      Annual application of maintenance fertilizer. 5-10 lb. of N. could be added at seeding.
         Soil test values of CEC=20, P=25 ppm, K=150 ppm. Fertilizer prices
         vary over time and by area. Check with local sources for current prices.
         Assumes MAP(11-52-0):                  $690 /ton         Potash(0-0-60):           $630 /ton
        Year 1 Fertilizer application rates assumed to be at the 4.0 ton yield goal.
        Lime applied prior to seeding - 2 Tons prorated over the 4 year period; 0.5 ton per year.
  6
      Seeding year: $34/acre (2 qts/a of Butyrac 200, 7 oz/a of Select, 1.6 oz/a of Baythroid)
      Year 2: $11.25/acre (Baythroid at 2.5 oz/a for alfalfa weevil and 1.6 oz/acre for potato leafhopper)
      Year 3: $9/acre (Baythroid at 1.6 oz/a for PLH, 2 treatments).
      Year 4: $22/acre (metribuzin at 1 lb/a and Baythroid at 1.6 oz/a for PLH).
      Year 2-4 Avg. = $14.08
  7
      See table below for specific calculations. Lubrication costs are assumed to be 10% of fuel costs.
  8
      See table below for specific calculations.
  9
      Includes twine, other supplies, utilities, soil tests, small tools, crop insurance, etc…
 10
      Interest charged for 6 months at 4.5% interest rate.
 11
      Custom hire includes: 8 chemical sprays over 4 year period @ $6.20/acre = $49.60/acre/4 years = $12.40/acre
11a
      Hauling assumes 3.5 tons per wagon. 6 miles/gallon for Truck. Lube/Oil is 10% of fuel cost.
 12
      Part or all of labor may be a variable cost if paid labor varies with acres farmed. It’s a fixed cost if labor costs
      do not change with acres farmed.
 13
      Reflects 2000 crop acres including 200 acres of alfalfa hay, 200 acres alfalfa haylage, 200 acres corn silage.
      Machinery charges based on 4 cuttings per year, spring seeding year charges at 50% of annual costs based on two cuttings.
      See table below for details.
 14
      Seedbed preparation and seeding costs are charged at custom hire rates and prorated over 4 years. The following
          rates per acre are included: Chisel Plow $14.05, Field Cultivate-$11.10, Cultimulch-$11.40, Seeding-$14.30 = $50.85.
          $50.85 divided by 4 years = $12.71/acre
 15
      Average based on "Ohio Cropland Values and Cash Rents" factsheet
      Land charges vary throughout the state, check your local rates.
          Land charge in year 1 assumes you are budgeting for soil productivity capabilities of 4 ton/acre.
 16
      Return to labor and management is the revenue less total expenses except operator labor and management.
          It is a measure of the returns to the operator's labor and management.

                                            Harvest Machinery and Equipment Inventory
                               Number
                                times   Machinery Acres per                          Cost per              Fuel*    Hours / Repairs
                                used      Cost      Year                               Acre   Acres/ Hr   (gal/A)    Year    ($/A)
      Mower/Cond. 12 ft.           4     $30,000    400                              $10.46      8.7        1.52     183.28  2.36
      Hay Baler - PTO Twine 12 Ft. 4     $26,000    200                              $18.14      4.4        1.60     183.49 12.00
      Hay Rake - 25'               8     $45,000    400                              $15.70     26.2        0.56     122.14  2.56
      Hay Wagons (4)               4     $16,000    200                              $11.16      4.4        0.40     181.82  0.80
      Fertilizer Spreader          1     $12,000   2,000                              $0.82     34.0        0.12      58.82  0.15
      105 HP Tractor              16     $74,000   2,000                              $5.09     -----       -----    547.72  3.04
      Pickup Truck (1/2)**         4     $16,000   2,000                              $1.12     -----      0.21                  0.15
                                                                                                Fuel       17.81
      Machinery and Equipment Charge per Acre                                         $62.49    F&L        19.59    Repairs      21.06

                                                                                                      Price of Diesel Fuel =      $4.00



Machinery cost estimates, fuel estimates and cost calculations based on information from "Machinery Cost Estimates", May 2011.
See the reference online at:
http://faculty.apec.umn.edu/wlazarus/documents/machdata.pdf
Machinery and Equipment charge =
Cost per acre = Machinery cost (new cost) assumes 8 year useful life using straight line depreciation,
6.0% Interest on average value, 0.5% Insurance cost on average value and 1.0% Housing cost on average value.
Salvage values are based on ASAE formulas.
Machines are all assumed to be new and in the first year of use (Except for pickup truck).

*Fuel calculations are based on the implement plus tractor. Four cuttings assumed.
**Pickup truck assumed to be used equipment.

Prepared by:
Authors: Barry Ward, Mark Sulc, Dianne Shoemaker*
*Leader, Production Business Management, Extension Forage Specialist, Extension Dairy Field Specialist

OSU Extension Enterprise Budgets can be found online at:
http://aede.osu.edu/programs/farmmanagement/budgets
                           Average Value   Depreciation Cost Cap.    Insurance Housing
Mower Conditioner 12 ft.     $20,812.50       $2,625.00   $1,248.75      $104.06 $208.13
Hay Baler                    $18,037.50       $2,275.00   $1,082.25       $90.19 $180.38
Hay Rake                     $31,218.75       $3,937.50   $1,873.13      $156.09 $312.19
Hay Wagons (2)               $11,100.00       $1,400.00      $666.00      $55.50 $111.00
Fertilizer Spreader           $8,535.00         $990.00      $512.10      $42.68  $85.35
75 HP Tractor                $51,985.00       $6,290.00   $3,119.10      $259.93 $519.85
Pickup Truck (1/2)**         $11,100.00       $1,400.00      $666.00      $55.50 $111.00
Total       Acres/Year Cost/Acre
  $4,185.94         400     $10.46
  $3,627.81         200     $18.14
  $6,278.91         400     $15.70
  $2,232.50         200     $11.16
  $1,630.13        2000      $0.82
 $10,188.88        2000      $5.09
  $2,232.50        2000      $1.12

				
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