soft winter wheat farm enterprise budget calculator

Wwheat 1 SOFT WINTER WHEAT ENTERPRISE BUDGET Revised: Jan '07 Return Per Acre $186.33 Number of Acres = 1 1 t = 36.74 bu Wheat Optimistic Expected Pessimistic Yield -bu/ac 90 70 55 Price -$/bu 5.10 5.00 2.70 Straw Yield -bales/ac 55 50 45 Price -$/bale 2.50 2.00 1.35 Total Production Wheat -bu 90 70 55 Straw -bales 55 50 45 Insurance Evaluation Program Payments Crop Insurance Premium/ac: 0.00 C.I. Premium/ac: 6.40 Guaranteed Price/bu. n/a Level of Coverage 90% Probability of a payout 0.01% Guaranteed Yield/ac. 63.00 Expected Payout/ac $0.00 Probability of a payout 34.46% Expected Payout/ac $20.16 Participate in Programs? (y/n) Yes Participate in CI? (y/n) Yes Unit/Ac Number Cost/Unit $/Acre $/Year Expenses ----------------------------Variable Costs: Seed kg 50 0.71 36 36 Seed Treatment kg 0 0.00 0 0 Fertilizer #1 Liquid US gal 5 2.590 13 13 #2 Urea 46% kg 90 0.477 43 43 #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 0.75 9.20 7 7 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 6.40 6 6 Program Premium 1 0.00 0 0 Custom Work #1 Fertilizer App. 1 9.15 9 9 #2 Chem. Application 1 9.10 9 9 Drying tonnes 2.10 0 0 0 Storage tonnes 0 0.00 0 0 Trucking tonnes 1.91 6.35 12 12 Marketing Fee tonnes 1.91 2.00 4 4 Twine sq. bales 50 0.05 3 3 Other 0 0.00 0 0 Typical Enterprise $/Acre $ Allocated $/Acre $/Year Fuel 12.5 0 13 13 Mach. Repair & Maint. 19.05 0 19 19 Bldg. Repair & Maint. 0 0 0 0 Labour 17.8 0 18 18 General Variable Costs 0 0 0 0 Interest on %int %year Operating Capital 7 83 0 10 10 --------------Total Variable Costs 201 201 Page -1Page -2Typical Enterprise Fixed Costs: $/Acre $ Allocated $/Acre $/Year Depreciation 33 0 33 33 Interest on Term Loans 23.3 0 23 23 Land Costs -0 0 Long-term Leases 0 0 0 0 General Fixed Costs 6.7 0 7 7 --------------Total Fixed Costs 63 63 Revenues: $/Acre $/Year Total Expected Revenues 450 450 less: Variable Costs 201 201 --------------Expected Operating Margin 249 249 less: Fixed Costs 63 63 --------------Expected Net Revenue 186 186 Break-even $/bu to cover: Variable Costs 2.87 Fixed Costs 0.90 -------Total Costs 3.77 Chance of at least breaking even ==> 84% Chance of at least 0 $/acre return ==> 84% Coefficient of variation ==> 0.41 Returns $/acre Chances of at least this return per acre 366 17 % 266 33 % 186 50 % 107 67 % 7 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 -3Allocation 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