2003 CORN PRODUCTION BUDGET 1 3
 Reduced Tillage Practices 2
ITEM EXPLANATION PRICE PER YIELD (bu/A)   YOUR
UNIT BUDGET
                  100 130 160    
RECEIPTS
Corn 3 $2.40 /bu $240 $312 $384  
VARIABLE  COSTS
Seed (kernels) 24000 28000 32000 1.10 /1000 kernels 26 31 35  
Fertilizer 4  
N (lbs.) 60 110 145 0.24 /lb 14 26 35  
P2O5(lbs) 35 45 55 0.24 /lb 8 11 13  
K2O(lbs) 45 50 65 0.13 /lb 6 7 8  
Lime(ton) 0.5 12 /ton 6 6 6  
Chemicals 5 22 22 22  
Drying - Fuel & Electric only 6 0.18 /bu 18 23 29  
Trucking - Fuel Only 0.04 /bu 4 5 6  
Fuel, Oil, Grease 7 6 6 6  
Repairs 8 8 8 8  
Miscellaneous 9 12 13 14  
Int. on Oper. Cap. 10 7 mo.  9.0% 6 7 8  
Hired Labor 11 0 0 0    
TOTAL VARIABLE COSTS -Per Acre 137 165 191  
-Per Bushel 1.37 1.27 1.19  
FIXED COSTS
Labor Charge 11 3.6 hours 9.00 /hr 32 32 32  
Mach. And Equip. Charge 12 57 57 57  
Land Charge 13 Rent 50 70 90  
Management Charge 5% of gross revenue 12 16 19    
TOTAL FIXED COSTS 151 175 198  
TOTAL COSTS -Per Acre 288 340 389  
-Per Bushel 2.88 2.62 2.43  
RETURN ABOVE VARIABLE COSTS 103 147 193  
RETURN ABOVE TOTAL COSTS (48) (28) (5)  
RETURN TO LABOR AND MANAGEMENT 14 (4) 20 46
                           
1 Does not include costs or returns for storage of grain. 4
2 Primary tillage implement is chisel plow.
3 Revenue from government payments was not included due to high degree of variation from farm to farm.
4 Assumes only maintenance application of fertilizer needed, corn-soybean rotation, 3.8 O.M., 20 CEC, 
and soil test values of 25 ppm P/A and 150 ppm K/A.  Prices were quoted in October, 2002.  
Fertilizer prices vary over time and by area.  Check with local sources for current prices.
5 Based on use of Bicep II Magnum.  Consult "Weed Control Guide for Ohio Field Crops 2003 Edition" -
Bulletin 789-99 for specific recommendations.
6 Drying costs are based on 10% moisture removed and $1/gal LP gas
An additional $0.01 is added per bushel for electricity
7 See table below for specific calculations.  Lubrications costs are assumed to be 15% of fuel costs
8 See table below for specific calculations.
9 Includes supplies, utilities, soil tests, small tools, crop insurance, etc…
10 Interest on all variable costs, except drying and trucking, for 7 months at 9% interest rate.
11 Part or all of labor may be a variable cost if paid labor varies with acres farmed. It’s a fixed cost 
if labor costs do not change with acres farmed.
12 Reflects 1000 acres, conservation tillage. See table below for specific calculations.
13 Average based on 1999 data for Ohio cash rents. Land charges vary throughout the state, check your local rates.
14 Return to labor and management is the revenue less total expenses except operator labor and management.
It is a measure of the returns to the operator's labor and management.
    Machinery Inventory                  
Number times used Cost  Acres/Hr Fuel*        ($/A) Repairs ($/A)
15 ft. Chisel Plow 1 $7,800 8.5 0.60 0.28
28 ft. Field Cultivator 1 $19,400 20.2 0.32 0.33
50 ft. Boom Sprayer 2 $5,500 25.6 0.22 0.20
8 Row Planter 1 $21,500 9.3 0.35 0.68
20 ft. Row Crop Cultivator 1 $6,600 10.3 0.44 0.15
Combine w/ 20' head 1 $162,400 5.1 1.93 0.74
Gravity Grain Wagons 2 $7,000 1.20 0.84
Fertilizer Spreader 1 $10,400 23.8 0.11 0.23
160 HP Tractor $94,200 3.84
75 HP Tractor $30,300 1.14
Pickup Truck (1/2) $12,500   $0.10 0.05
Total per Acre    377,600 6.06 8.48
Fixed Costs Rate 15%
Mach. And Equip Charge =             57 Price of Diesel Fuel = $1.00 /gal
Machinery and Equipment charge = Total Machine Inventory Cost x Fixed Costs Rate  / 1000 acres
=$377,600 x 15% / 1000 acres = $57/acre
Machines are all assumed to be new and in the first year of use.  Older/used machines will likely have lower 
machinery costs.  Size of operation will also effect cost of machinery per acre.  For an analysis on machine 
costs for different sized operations, see economies of scale budgets in this publication
Fixed costs rate includes depreciation, interest, housing, and insurance.
*Fuel calculations are based on the implement plus tractor.