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2003 CORN PRODUCTION
BUDGET 1 |
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1 |
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Conventional Tillage Practices 2 |
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| ITEM |
EXPLANATION |
PRICE PER |
YIELD (bu/A) |
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YOUR |
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UNIT |
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BUDGET |
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100 |
130 |
160 |
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| RECEIPTS |
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Corn 3 |
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$2.40 |
/bu |
$240 |
$312 |
$384 |
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| VARIABLE COSTS |
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Seed (kernels) |
24000 |
28000 |
32000 |
1.10 |
/1000 kernels |
26 |
31 |
35 |
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Fertilizer 4 |
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N (lbs.) |
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60 |
110 |
145 |
0.24 |
/lb |
14 |
26 |
35 |
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P2O5(lbs) |
|
35 |
45 |
55 |
0.24 |
/lb |
8 |
11 |
13 |
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K2O(lbs) |
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45 |
50 |
65 |
0.13 |
/lb |
6 |
7 |
8 |
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Lime(ton) |
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0.5 |
|
12 |
/ton |
6 |
6 |
6 |
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Chemicals 5 |
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22 |
22 |
22 |
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Drying - Fuel &
Electric Only 6 |
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0.18 |
/bu |
18 |
23 |
29 |
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Trucking - Fuel Only |
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0.04 |
/bu |
4 |
5 |
6 |
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Fuel, Oil, Grease 7 |
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7 |
7 |
7 |
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Repairs 8 |
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10 |
10 |
10 |
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Miscellaneous 9 |
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12 |
13 |
14 |
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Int. on Oper. Cap. 10 |
7 |
mo. |
9.0% |
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6 |
7 |
8 |
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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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140 |
168 |
194 |
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-Per Bushel |
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1.40 |
1.29 |
1.21 |
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| FIXED
COSTS |
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Labor Charge 11 |
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3.6 |
hours |
9.00 |
/hr |
32 |
32 |
32 |
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Mach. And Equip. Charge 12 |
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59 |
59 |
59 |
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Land Charge 13 |
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Rent |
|
50 |
70 |
90 |
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Management Charge |
5% |
of gross revenue |
|
12 |
16 |
19 |
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| TOTAL
FIXED COSTS |
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153 |
177 |
201 |
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| TOTAL
COSTS |
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-Per Acre |
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293 |
345 |
394 |
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-Per Bushel |
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2.93 |
2.65 |
2.46 |
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| RETURN
ABOVE VARIABLE COSTS |
|
100 |
144 |
190 |
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| RETURN
ABOVE TOTAL COSTS |
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(53) |
(33) |
(10) |
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| RETURN
TO LABOR AND MANAGEMENT 14 |
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(9) |
15
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42
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| 1 |
Does not include costs or
returns for storage of grain. |
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2 |
| 2 |
Primary tillage implement
is moldboard plow. |
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| 3 |
Revenue from government
payments was not included due to high degree of variation from farm to farm. |
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| 4 |
Assumes
only maintenance application of fertilizer needed, corn-soybean rotation, 3.8
O.M., 20 CEC, |
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and
soil test values of 25 ppm P/A and 150 ppm K/A. Prices were quoted in October, 2002. |
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Fertilizer prices vary
over time and by area. Check with
local sources for current prices. |
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| 5 |
Based on use of Bicep II
Magnum. Consult "Weed Control
Guide for Ohio Field Crops 2003 Edition" - |
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Bulletin 789-99 for
specific recommendations. |
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| 6 |
Drying costs are based on
10% moisture removed and $1/gal LP gas |
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An additional $0.01 is
added per bushel for electricity |
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| 7 |
See table below for
specific calculations. Lubrications
costs are assumed to be 15% of fuel costs |
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| 8 |
See table below for
specific calculations. |
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| 9 |
Includes supplies,
utilities, soil tests, small tools, crop insurance, etc… |
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| 10 |
Interest on all variable
costs, except drying and trucking, for 7 months at 9% interest rate. |
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| 11 |
Part
or all of labor may be a variable cost if paid labor varies with acres
farmed. It’s a fixed cost |
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if labor costs do not
change with acres farmed. |
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| 12 |
Reflects 1000 acres,
conventional tillage. See table below for specific calculations. |
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| 13 |
Average based on 1999
data for Ohio cash rents. Land charges vary throughout the state, check your
local rates. |
| 14 |
Return to labor and
management is the revenue less total expenses except operator labor and
management. |
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It is a measure of the
returns to the operator's labor and management. |
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| Machinery
Inventory |
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Number times used |
Cost |
Acres/ Hr |
Fuel* ($/A) |
Repairs ($/A) |
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12 ft. Moldboard Plow |
1 |
$23,100 |
5.6 |
1.29 |
1.91 |
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28 ft. Field Cultivator |
1 |
$19,400 |
20.2 |
0.32 |
0.33 |
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50 ft. Boom Sprayer |
1 |
$5,500 |
25.6 |
0.11 |
0.10 |
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8 Row Planter |
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1 |
$21,500 |
9.3 |
0.35 |
0.68 |
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20 ft. Row Crop Cultivator |
1 |
$6,600 |
10.3 |
0.44 |
0.15 |
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Combine w/ 20' head |
1 |
$162,400 |
5.1 |
1.93 |
0.74 |
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Gravity Grain Wagons |
2 |
$7,000 |
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1.20 |
0.84 |
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Fertilizer Spreader |
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1 |
$10,400 |
23.8 |
0.13 |
0.26 |
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160 HP Tractor |
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$94,200 |
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3.84 |
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75 HP Tractor |
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$30,300 |
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1.14 |
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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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392,900 |
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6.75 |
10.04 |
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Fixed Costs Rate |
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15% |
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Mach. And Equip Charge = |
59 |
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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 / 1000 acres |
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=$392,900 x 15% / 1000 acres = $59/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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