wheat ORGANIC ENTERPRISE BUDGET

Wwheat 1 BARLEY -ORGANIC ENTERPRISE BUDGET Revised: Jan '07 Return Per Acre $112.31 Number of Acres = 1 1 t = 45.93 bu Wheat Optimistic Expected Pessimistic Yield -bu/ac 70 55 45 Price -$/bu 5.45 5.10 2.95 Straw Yield -bales/ac ---Price -$/bale ---Total Production Wheat -bu 70 55 45 Straw -bales 0 0 0 Insurance Evaluation Crop Insurance C.I. Premium/ac: 4.25 Level of Coverage 90% Guaranteed Yield/ac. 49.50 Probability of a payout 33.00% Expected Payout/ac $13.83 Participate in CI? (y/n) Yes Unit/Ac Number Cost/Unit $/Acre $/Year Expenses ----------------------------Variable Costs: Seed lb 120 0.22 26 26 Seed Treatment kg 0 0.00 0 0 Fertilizer #1 Manure/compost times 0 70.000 0 0 #2 kg 0 0.000 0 0 #3 kg 0 0.000 0 0 Unit/Ac Number Cost/Unit $/Acre $/Year Herbicide ----------------------------Annual Grasses kg or l 0 0.00 0 0 Broadleaf 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 Growth Regulators 0 0 0 0 Crop Insurance Insurance 1 4.25 4 4 Program Premium 0 0.00 0 0 Custom Work #1 0 0.00 0 0 #2 0 0.00 0 0 Drying tonnes 1.32 0 0 0 Storage tonnes 0 0.00 0 0 Trucking tonnes 1.20 6.35 8 8 Marketing Fee tonnes 1.20 0.00 0 0 Twine sq. bales -0.05 0 0 Certification fees 1 2.00 2 2 Other 1 50.00 50 50 Typical Enterprise $/Acre $ Allocated $/Acre $/Year Fuel 7.8 0 8 8 Mach. Repair & Maint. 11.5 0 12 12 Bldg. Repair & Maint. 0 0 0 0 Labour 12.45 0 12 12 General Variable Costs 0 0 0 0 Interest on %int %year Operating Capital 7 50 0 4 4 --------------Total Variable Costs 126 126 Soil maintenance (cover crop, fallow etc) Fertilizer App. Chem. Application Page -1Typical Enterprise Fixed Costs: $/Acre $ Allocated $/Acre $/Year Depreciation 22.5 0 23 23 Interest on Term Loans 15.5 0 16 16 Land costs --0 Long-term Leases 0 0 0 0 General Fixed Costs 4.5 0 5 5 --------------Total Fixed Costs 43 43 Revenues: $/Acre $/Year Total Expected Revenues 281 281 less: Variable Costs 126 126 --------------Expected Operating Margin 155 155 less: Fixed Costs 43 43 --------------Expected Net Revenue 112 112 Break-even $/bu to cover: Variable Costs 2.29 Fixed Costs 0.77 -------Total Costs 3.06 Chance of at least breaking even ==> 82% Chance of at least 0 $/acre return ==> 82% Coefficient of variation ==> 0.43 Returns $/acre Chances of at least this return per acre 229 17 % 164 33 % 112 50 % 60 67 % -5 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 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 SW Wheat: 1 Percent allocated to Total Dollars allocated to Per acre costs for Optional: Percent Allocation to other enterprises Total allocated Cost Item Whole Farm $ SW Wheat SW Wheat SW Wheat Enterprise 2 Enterprise 3 Enterprise 4 Enterprise 5 Example: 100 acres of SW Wheat 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 $ SW Wheat SW Wheat SW Wheat 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 Budget