2003 OATS PRODUCTION BUDGET 1
Grain and Straw Harvested
              
ITEM   EXPLANATION PRICE PER YIELD (bu/A)   YOUR     
UNIT BUDGET
                  50 85 120        
RECEIPTS
Oats (Grain Only) 2 $2.00 /bu $100 $170 $240  
VARIABLE  COSTS
Seed 2.5 lbs 6.50 /bu 16 16 16  
Fertilizer 3
N (lbs.) 20 30 65 0.24 /lb 5 7 16  
P2O5(lbs) 20 25 25 0.24 /lb 5 6 6  
K2O(lbs) 30 35 45 0.13 /lb 4 5 6  
Lime(lbs) 1000 12 /ton 7 7 7  
Trucking - Fuel Only 0.03 /bu 2 3 4  
Fuel, Oil, Grease 4 5 5 5  
Repairs 5 11 11 11  
Miscellaneous 6 12 13 14  
Int. on Oper. Cap. 7 6 mo. 9.0% 3 3 4  
Hired Labor 8 0 0 0  
         
TOTAL VARIABLE COSTS -Per Acre 69 75 88
-Per Bushel 1.38 0.89 0.73  
FIXED COSTS
Labor Charge 8 2 hours 9.00 /hr 18 18 18  
Mach. And Equip. Charge 9 52 52 52  
Land Charge 10 50 70 90  
Management Charge 5% of gross revenue 5 9 12
         
TOTAL FIXED COSTS 125 149 172  
TOTAL COSTS  (Grain Only) -Per Acre 194 224 260  
-Per Bushel 3.88 2.64 2.17  
RETURN ABOVE VARIABLE COSTS 31 95 152  
RETURN ABOVE TOTAL COSTS (94) (54) (20)  
RETURN TO LABOR AND MANAGEMENT 11 (71) (28) 10
                               
RECEIPTS (Straw Only) 1 ton/A 45 /ton 45  
VARIABLE COSTS (Straw Only)
Fuel, Oil, Grease 5 1  
Repairs 6 4  
Miscellaneous 4  
Hired Labor 9    
     
TOTAL VARIABLE COSTS- Per Acre (Per Ton) 9 9  
FIXED COSTS (Straw Only)
Labor Charge 9 1.5 hours 8.00 /hour 12  
Mach. & Equip. Charge 10 8  
Management Charge 5% of gross revenue 2
         
TOTAL FIXED COSTS 22  
TOTAL COSTS (Straw Only)- Per Acre (Per Ton)  31 31  
RETURN ABOVE VARIABLE COSTS (Straw Only) 36  
RETURN ABOVE TOTAL COSTS (Straw Only) 14  
RETURN TO LABOR AND MANAGEMENT (Straw Only)12     28        
1 Does not include costs or returns for storage of grain. 
2 Price is the 5-year historical price average for Ohio.
3 Assumes only maintenance application of fertilizer needed, soil test values of 20 ppm P/A 
and 125 ppm K/A, and 20 CEC.  If straw is removed: K20:50,75,100.
Prices were quoted in October, 2000.  Fertilizer prices vary over time and by area.  
Check with local sources for current prices.
4 See tables below for specific calculations. Lubrication costs are assumed to be 15% of fuel costs.
5 See tables below for specific calculations.
6  Includes supplies, utilities, soil tests, small tools, crop insurance, etc… 
7 Interest on all variable costs, except trucking, for 8 months at 9% interest rate. 
8 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. 
9 Reflects 1000 acres, conservation tillage. See tables below for specific calculations.
10 Average based on 1999 data.  Land charges vary throughout the state, check your local rates.
11 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 - Grain Only
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
25 Ft Grain Drill 1 $26,100 10.6 0.49 0.84
Combine w/ 20' head 1 $141,000 12.7 1.31 3.38
Gravity Grain Wagons 1 $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   348,700 4.13 10.93
Fixed Costs Rate 15%
Mach. And Equip Charge =   $52 Price of Diesel Fuel = $1.00 /gal
Machinery and Equipment charge = Total Machine Inventory Cost x Fixed Costs Rate  / 1000 acres
=$348,700 x 15% / 1000 acres = $52/acre
Machines are all assumed to be new and in the first year of use.  Older/used machines will likely have lower 
machinery costs.  Size of operation will also effect cost of machinery per acre.  For an analysis on machine 
costs for different sized operations, see economies of scale budgets in this publication
Fixed costs rate includes depreciation, interest, housing, and insurance.
*Fuel calculations are based on the implement plus tractor.
Machinery Inventory - Straw Only
Number times used Cost  Acres/     Hr Fuel*        (gal/A) Repairs ($/A)
Hay Baler 1 $17,500 4.4 0.45 1.90
Hay Wagon 1 $3,200 4.4 0.50 0.25
Hay Rake 1 $4,700 5.2 0.25 0.26
75 HP Tractor $27,200     1.14
Total per Acre     52,600 1.20 3.55
Fixed Costs Rate 15%
Mach. And Equip Charge =   $8 Price of Diesel Fuel = $1.00 /gal