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3 |
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2003 ALFALFA HAYLAGE PRODUCTION BUDGET 1 |
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Direct
Spring Seeding - 4 Year Stand |
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ITEM |
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EXPLANATION |
PRICE PER |
YIELD/A (ton/A) 2 |
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YOUR |
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UNIT |
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BUDGET |
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8.0 |
10.5 |
13.0 |
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| RECEIPTS
3 |
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Alfalfa Haylage |
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$39 |
/ton |
$312 |
$410 |
$507 |
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| VARIABLE COSTS |
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Seed 4 |
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15 |
pounds |
4.00 |
/lb |
15 |
15 |
15 |
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Fertilizer 5 |
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N (lbs.) |
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0 |
0 |
0 |
0.24 |
/lb |
0 |
0 |
0 |
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P2O5(lbs) |
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40 |
60 |
80 |
0.24 |
/lb |
10 |
14 |
22 |
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K2O(lbs) |
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95 |
145 |
190 |
0.13 |
/lb |
12 |
19 |
25 |
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Lime(ton) |
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0.5 |
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12 |
/ton |
6 |
6 |
6 |
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Chemicals 6 |
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30 |
30 |
30 |
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Fuel, Oil, Grease 7 |
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22 |
22 |
22 |
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Repairs 8 |
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24 |
24 |
24 |
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Miscellaneous 9 |
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13 |
14 |
15 |
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Int. on Oper. Cap. 10 |
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6 |
mo |
9.0% |
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6 |
6 |
7 |
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Hired Labor 11 |
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0 |
0 |
0 |
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| TOTAL
VARIABLE COSTS |
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-Per Acre |
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137 |
151 |
166 |
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-Per Ton |
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17.18 |
14.36 |
12.78 |
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| FIXED
COSTS |
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Labor Charge 11 |
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5.5 |
hours |
9.00 |
/hr |
50 |
50 |
50 |
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Mach. And Equip. Charge 12 |
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49 |
49 |
49 |
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Seedbed
Preparation/Seeding Costs - Custom Hire
13 |
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14 |
14 |
14 |
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Land Charge 14 |
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50 |
70 |
90 |
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Management Charge |
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5% |
of gross revenue |
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16 |
20 |
25 |
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| TOTAL
FIXED COSTS |
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178 |
203 |
228 |
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| TOTAL
COSTS |
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-Per Acre |
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316 |
354 |
394 |
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-Per Ton |
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39.47 |
33.72 |
30.32 |
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| RETURN
ABOVE VARIABLE COSTS |
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175 |
259 |
341 |
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| RETURN
ABOVE TOTAL COSTS |
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(4) |
55 |
113 |
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| RETURN
TO LABOR AND MANAGEMENT 15 |
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61
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125
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188
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| 1 |
Does not include costs
for putting haylage into silo or bunker. |
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4 |
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| 2 |
Assumes
a 7 ton yield (40% DM) in seeding year; yields of approximately 7, 12, and 16
tons (40% DM), respectively, |
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in the following years;
middle yield shown reflects weighted average. |
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| 3 |
Based on 86% DM alfalfa
hay @ $84/T; haylage at 40%DM. |
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| 4 |
Expenses associated with
seeding are prorated over the four-year stand life. |
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| 5 |
Annual application of
maintenance fertilizer. 5-10 lb. of N. could be added at seeding. |
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Soil
test values of CEC=20, P=25 ppm, K=150 ppm.
Prices were quoted in October, 2002.
Fertilizer |
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prices vary over time and
by area. Check with local sources for
current prices. |
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| 6 |
Based on use of
Baythroid, Poast, and Butyrac. |
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An
additional fall herbicide treatment may be necessary in some areas.
Additional insect control |
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may be necessary in some
years. |
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| 7 |
See table below for
specific calculations. Lubrication costs are assumed to be 15% of fuel costs. |
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| 8 |
See table below for
specific calculations. |
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| 9 |
Includes supplies,
utilities, soil tests, small tools, crop insurance, etc… |
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| 10 |
Interest charged for 6
months at 9% interest rate. |
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| 11 |
Part
or all of labor may be a variable cost if paid labor varies with acres
farmed. |
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It’s a fixed cost if
labor costs do not change with acres farmed. |
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| 12 |
Reflects 500 acres,
conservation tillage. See table below for details. |
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| 13 |
Seedbed preparation and
seeding costs are charged at custom hire rates and prorated over 4
years. The following |
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rates are included:
Plowing-$13, Field Cultivate-$8, Cultimulch-$9, Spray(3x)-$5, Seeding-$12. |
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| 14 |
Average based on 1999
data. Land charges vary throughout the
state, check your local rates. |
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| 15 |
Return to labor and
management is the revenue less total expenses except operator labor and
management. |
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It is a measure of the
returns to the operator's labor and management. |
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| Machinery Inventory |
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Number times used |
Cost |
Acres/ Hr |
Fuel* ($/A) |
Repairs ($/A) |
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Mower |
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4 |
$16,300 |
6.55 |
$2.00 |
1.72 |
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Forage Harvester |
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4 |
$25,700 |
1.4 |
13.40 |
13.88 |
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Forage Wagon (2) |
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4 |
$23,400 |
1.3 |
1.20 |
4.00 |
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Hay Rake |
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4 |
$4,600 |
3.5 |
2.00 |
1.40 |
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105 HP Tractor |
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$57,300 |
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2.40 |
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60 HP Tractor |
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$24,300 |
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0.97 |
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Pickup Truck (1/2) |
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$12,500 |
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0.10 |
0.05 |
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Total per Acre |
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164,100 |
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18.70 |
24.42 |
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Fixed Costs Rate |
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15% |
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Mach. And Equip Charge = |
$49 |
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Price of Diesel Fuel |
$1.00 |
/gal |
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| Machinery
and Equipment charge = Total Machine Inventory Cost x Fixed Costs Rate / 500 acres |
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=$164,100 x 15% / 500 acres =
$49/acre |
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| Machines
are all assumed to be new and in the first year of use. Older/used machines will likely have
lower |
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machinery
costs. Size of operation will also
effect cost of machinery per acre. For
an analysis on machine |
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costs for different sized
operations, see economies of scale budgets in this publication |
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| Fixed costs
rate includes depreciation, interest, housing, and insurance. |
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| *Fuel
calculations are based on the implement plus tractor. |
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