Hemp 1
HEMP (GRAIN) ENTERPRISE BUDGET
Revised: Mar '06 Return Per Acre 1t= $93.74 2205 lb
Number of Acres =
10
Yield - lbs/ac Price - $/lb Production - lb
Optimistic 1200 0.85 12000
Expected 800 0.55 8000 Insurance Evaluation Crop Insurance C.I. Premium/ac: Level of Coverage Guaranteed Yield/ac. Probability of a payout Expected Payout/ac Participate in CI? (y/n) Unit/Ac ------kg ml kg kg kg Number -----1 0 1 0 0 Number -----1 0 0 0 0 1 0 1 1 1 0.40 0 0.36 0.36 1 Cost/Unit --------40.00 0.00 72.000 0.00 0 Cost/Unit --------10.00 0.00 0.00 0.00 0.00 15.00 0.05 9.15 9.20 100.00 50.00 0.00 7.14 0.00 30.00
Pessimistic 400 0.45 4000
15.00 70% 560.00 27.43% 37.11 Yes $/Acre -----40 0 72 0 0 $/Acre -----10 0 0 0 0 15 0 9 9 100 20 0 3 0 30 $/Year -----400 0 720 0 0 $/Year -----100 0 0 0 0 150 0 92 92 1000 200 0 26 0 300
Expenses Variable Costs: Seed Seed Treatment Fertilizer #1 #2 #3
N-P-K
Unit/Acre Herbicide ------Burndown kg or l Other Herbicides kg or l Other Herbicides kg or l Insecticides kg or l Fungicides kg or l Crop Insurance Insurance Program Premium Custom Work #1 Chem. Application #2 Fert. Appl.,mix, delivery #3 Custom combining Drying tonnes Storage # of months tonnes Trucking tonnes Marketing Fees tonnes Other License, sampling, THC -
Fuel Mach. Repair & Maint. Bldg. Repair & Maint. Labour General Variable Costs Interest on Operating Capital Total Variable Costs
%int 5.5
Typical $/Acre 6 4 0 3 0 %year 50
$/Acre 6 4 0 3 0 9 -----330
$/Year 56 44 0 31 0 88 -----3298
Page -1
Fixed Costs: Depreciation Interest on Term Loans Long-term Leases Land costs General Fixed Costs Total Fixed Costs Revenues: Total Expected Revenues less: Variable Costs Expected Operating Margin less: Fixed Costs Expected Net Revenue Break-even $/bu to cover:
Typical $/Acre 9 6 0 2
$/Acre 9 6 0 2 -----16 $/Acre 440 330 -----110 16 -----94 Variable Costs Fixed Costs Total Costs $/Year 4400 3298 -----1102 165 -----937 0.41 0.02 -----0.43 62% 62% 0.67
$/Year 89 61 0 0 15 -----165
Chance of at least breaking even ==> Chance of at least 0 $/acre return ==> Coefficient of variation ==> Returns $/acre 380 220 94 -33 -192 Chances of at least this return per acre 17 % 33 % 50 % 67 % 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 -2
Allocation of General Variable and Fixed Costs
General Variable and Fixed Costs or general overhead costs are those whole farm costs that can be difficult to allocate to a specific enterprise. These costs will show little or no change whether one crop or another is grown. That is to say, your crop mix choice should be the same after allocating general overhead costs as it was before they were added. This table allows you to allocate these overhead costs and transfer them to the budget if you wish to arrive at a total cost of production. Click the transfer button to include the costs calculated in this table into the enterprise budget.
Back to the Budget
Total acres of Hemp:
Transfer General Costs to the Budget
1 Optional: Percent Allocation to other enterprises
Enterprise 2 Enterprise 3 Enterprise 4 Enterprise 5
Soybeans Wheat Canola Barley
Percent allocated to
Total Dollars allocated to Hemp $ 300.00 Hemp $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Per acre costs for Hemp 3.00 Hemp -
Total allocated
Cost Item Whole Farm $ Example: 100 acres of Hemp
Legal and accounting fees $ 1,500.00
Hemp 20% Hemp
20%
20%
20%
20%
100%
General Variable Costs
Advertising Electricity and heating fuel Telephone Memberships/subscription fees Office expenses Legal and accounting fees Motor vehicle expenses Small tools Soil testing Licenses/permits Other general variable costs
Whole Farm $
Enterprise 2 Enterprise 3 Enterprise 4 Enterprise 5 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Total General Variable Costs $
General Fixed Costs Property taxes Other insurance premiums Other general fixed costs Total General Fixed Costs $
-
-
$ $ $ $
-
$ $ $ $
-
0% 0% 0%