2003 CORN PRODUCTION BUDGET 1											5
		No-Till Practices
ITEM				EXPLANATION			PRICE PER		YIELD (bu/A)				YOUR
							UNIT						BUDGET
									100	130	160
RECEIPTS
	Corn2						$2.40	/bu	$240	$312	$384
VARIABLE  COSTS
	Seed (kernels)			24000	28000	32000	1.10	/1000 kernels	26	31	35
	Fertilizer 3
		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	ton	12	/ton	6	6	6
	Chemicals 4								40	40	40
	Drying - Fuel & Electric only 5						0.18	/bu	18	23	29
	Trucking - Fuel Only						0.04	/bu	4	5	6
	Fuel, Oil, Grease 6								5	5	5
	Repairs 7								7	7	7
	Miscellaneous 8								12	13	14
	Int. on Oper. Cap. 9				7	mo.	9.0%		7	8	9
	Hired Labor 10								0	0	0
TOTAL VARIABLE COSTS						-Per Acre			153	181	207
						-Per Bushel			1.53	1.39	1.29
FIXED COSTS
	Labor Charge 10				3	hours	9.00	/hr	27	27	27
	Mach. And Equip. Charge 11								45	45	45
	Land Charge 12				Rent				50	70	90
	Management Charge				5%	of gross revenue			12	16	19
TOTAL FIXED COSTS									134	157	181
TOTAL COSTS						-Per Acre			287	338	388
						-Per Bushel			2.87	2.60	2.42
RETURN ABOVE VARIABLE COSTS									87	131	177
RETURN ABOVE TOTAL COSTS									(47)	(26)	(4)
RETURN TO LABOR AND MANAGEMENT 13									(8)	16	43
1	Does not include costs or returns for storage of grain.												6
2	Revenue from government payments was not included due to high degree of variation from farm to farm.
3	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.
4	Based on use of Roundup Ultra, 2-4D, Bicep and Distinct.  Consult "Weed Control Guide for
		Ohio Field Crops 2003 Edition" - Bulletin 789-99 for specific recommendations.
5	Drying costs are based on 10% moisture removed and $1/gal LP gas
		An additional $0.01 is added per bushel for electricity
6	See table below for specific calculations.  Lubrications costs are assumed to be 15% of fuel costs
7	See table below for specific calculations.
8	Includes supplies, utilities, soil tests, small tools, crop insurance, etc…
9	Interest on all variable costs, except drying and trucking, for 7 months at 9% interest rate.
10	Part or all of labor may be a variable cost if paid labor varies with acres farmed. It’s a fixed cost
		if labor costs do not change with acres farmed.
11	Reflects 1000 acres, no-till. See table below for specific calculations.
12	Average based on 1999 data for Ohio cash rents. Land charges vary throughout the state,
		check your local rates.
13	Return to labor and management is the revenue less total expenses except operator labor and
		management charge.  It is a measure of the returns to the operator's labor and management.
Machinery Inventory
					Number times used	Cost	Acres / Hr	Fuel*     ($/A)	Repairs ($/A)
	50 ft. Boom Sprayer				1	$5,500	25.61	0.11	0.10
	8 No-till Row Planter				1	$24,400	8.5	0.53	0.84
	Combine w/ 20' head				1	$162,400	5.10	1.93	0.74
	Gravity Grain Wagons				2	$7,000		1.20	0.84
	Fertilizer Spreader				1	$10,400	23.80	0.11	0.23
	130 HP Tractor					$76,200			3.84
	Pickup Truck (1/2)					$12,500		$0.10	0.05
	Total per Acre					298,400		4.58	6.64
	Fixed Costs Rate				15%
	Mach. And Equip Charge =				45		Price of Diesel Fuel =			$1.00	/gal
	Machinery and Equipment charge = Total Machine Inventory Cost x Fixed Costs Rate  / 1000 acres
					=$346,700 x 15% / 1000 acres = $52/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 costs are based on the implement plus tractor.