Corn 1 GRAIN CORN-CONVENTIONAL ENTERPRISE BUDGET Revised: Jan '07 Return Per Acre $132.90 Number of Acres = 1 1 t = 39.368 bu Optimistic Expected Pessimistic Yield -bu/ac 160 145 100 Price -$/bu 4.25 3.90 2.20 Production -bu 160 145 100 Insurance Evaluation Program Payments Crop Insurance Premium/ac: 0.00 C.I. Premium/ac: 11.20 Guaranteed Price/bu n/a Level of Coverage 90% Probability of a payout 0.01% Guaranteed Yield/ac. 130.50 Expected Payout/ac 0.00 Probability of a payout 31.44% Expected Payout/ac 23.75 Participate in Programs? (y/n) Yes Participate in CI? (y/n) Yes Unit/Ac Number Cost/Unit $/Acre $/Year Expenses ----------------------------------Variable Costs: Seed M-kernel 30 1.99 60 60 Seed Treatment ml 0 0.00 0 0 Fertilizer #1 11-52-0 kg 28 0.477 13 13 #2 0-0-60 kg 32 0.367 12 12 #3 28-0-0 kg 186 0.317 59 59 Unit/Acre Number Cost/Unit $/Acre $/Year Herbicide ----------------------------------Annual Grasses and Broadleaf kg or l 1 37.15 37 37 Other Herbicides kg or l 0 0.00 0 0 Other Herbicides kg or l 0 0.00 0 0 Insecticides kg or l 0 0.00 0 0 Fungicides kg or l 0 0.00 0 0 Crop Insurance Insurance 1 11.20 11 11 Program Premium 1 0.00 0 0 Custom Work #1 Chem. Application 1 9.10 9 9 #2 Fert. Appl.,mix, delivery 1 9.15 9 9 Drying 8 Points tonnes 4.05 15.45 63 63 Storage (4 months) tonnes 3.68 7.64 28 28 Trucking tonnes 3.68 7.00 26 26 Marketing Fees tonnes 3.68 0.40 1 1 Other 0 0.00 0 0 Page -1Typical Enterprise $/Acre $ Allocated $/Acre $/Year Fuel 15.1 0 15 15 Mach. Repair & Maint. 16.6 0 17 17 Bldg. Repair & Maint. 0 0 0 0 Labour 11.85 0 12 12 General Variable Costs 0 0 0 0 Interest on %int %year Operating Capital 7 50 0 12 12 ------------Total Variable Costs 384 384 Typical Enterprise Fixed Costs: $/Acre $ Allocated $/Acre $/Year Depreciation 26.25 0 26 26 Interest on Term Loans 17.1 0 17 17 Long-term Leases 0 0 0 0 Land Costs 0 0 General Fixed Costs 5.35 0 5 5 ------------Total Fixed Costs 49 49 Revenues: $/Acre $/Year Total Expected Revenues 566 566 less: Variable Costs 384 384 ------------Expected Operating Margin 182 182 less: Fixed Costs 49 49 ------------Expected Net Revenue 133 133 Break-even $/bu to cover: Variable Costs 2.65 Fixed Costs 0.34 ------Total Costs 2.98 Chance of at least breaking even ==> 68% Chance of at least 0 $/acre return ==> 68% Coefficient of variation ==> 0.51 Returns $/acre Chances of at least this return per acre 414 17 % 257 33 % 133 50 % 8 67 % -148 83 % The user of this worksheet assumes all responsibility. For more information: OMAFRA Agricultural Information Centre ag.info@omafra.gov.on.ca 1-877-424-1300 Page -2Allocation of General Variable and Fixed Costs General Variable and Fixed Costs or general overhead costs are those w hole farm costs that can be difficult to allocate to a specific enterprise. These costs w ill show little or no change w hether one crop or another is grow n. That is to say, your crop mix choice should be the same after allocating general overhead costs as it w as before they w ere added. This table allow s you to allocate these overhead costs and transfer them to the budget if you w ish to arrive at a total cost of production. Click the transfer button to include the costs calculated in this table into the enterprise budget. Total acres of Grain Corn: 1 Percent allocated to Total Dollars allocated to Per acre costs for Optional: Percent Allocation to other enterprises Total allocated Cost Item Whole Farm $ Grain Corn Grain Corn Grain Corn Enterprise 2 Enterprise 3 Enterprise 4 Enterprise 5 Example: 100 acres of Grain Corn Soybeans Wheat Canola Barley Legal and accounting fees 1,500.00 $ 20% 300.00 $ 3.00 $ 20% 20% 20% 20% 100% General Variable Costs Whole Farm $ Grain Corn Grain Corn Grain Corn Enterprise 2 Enterprise 3 Enterprise 4 Enterprise 5 Advertising -$ -$ 0% Electricity and heating fuel -$ -$ 0% Telephone -$ -$ 0% Memberships/subscription fees -$ -$ 0% Office expenses -$ -$ 0% Legal and accounting fees -$ -$ 0% Motor vehicle expenses -$ -$ 0% Small tools -$ -$ 0% Soil testing -$ -$ 0% Licenses/permits -$ -$ 0% Other general variable costs -$ -$ 0% Total General Variable Costs -$ -$ -$ General Fixed Costs Property taxes -$ -$ 0% Other insurance premiums -$ -$ 0% Other general fixed costs -$ -$ 0% Total General Fixed Costs -$ -$ -$ Transfer General Costs to the Budget Back to the Budget