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1 |
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2003 WHEAT PRODUCTION BUDGET
1 |
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Grain and Straw Harvested |
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| ITEM |
|
EXPLANATION |
PRICE PER |
YIELD (bu/A) |
|
YOUR |
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|
UNIT |
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|
BUDGET |
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| |
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|
45 |
60 |
75 |
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| RECEIPTS |
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|
Wheat (Grain Only) 2 |
|
$3.30 |
/bu |
$149 |
$198 |
$248 |
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| VARIABLE COSTS |
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|
|
|
Seed |
|
120 |
lbs |
0.15 |
/lb |
18 |
18 |
18 |
|
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|
Fertilizer 3 |
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|
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|
N (lbs.) |
|
30 |
60 |
80 |
0.24 |
/lb |
7 |
14 |
19 |
|
|
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|
P2O5(lbs) |
|
30 |
40 |
45 |
0.24 |
/lb |
7 |
10 |
11 |
|
|
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|
K2O(lbs) |
|
35 |
40 |
45 |
0.13 |
/lb |
5 |
5 |
6 |
|
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|
Lime(ton) |
|
0.5 |
|
12 |
/ton |
6 |
6 |
6 |
|
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Chemicals 4 |
|
7 |
7 |
7 |
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Trucking - Fuel Only |
|
0.03 |
/bu |
1 |
2 |
2 |
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Fuel, Oil, Grease 5 |
|
5 |
5 |
5 |
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Repairs 6 |
|
11 |
11 |
11 |
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Miscellaneous 7 |
|
12 |
13 |
14 |
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Int. on Oper. Cap.
8 |
|
8 |
mo. |
9.0% |
|
5 |
5 |
6 |
|
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|
Hired Labor 9 |
|
0 |
0 |
0 |
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| TOTAL
VARIABLE COSTS |
|
-Per Acre |
|
83 |
96 |
104 |
|
|
-Per
Bushel |
|
1.85 |
1.60 |
1.39 |
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| FIXED
COSTS |
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Labor Charge 9 |
|
2 |
hours |
9.00 |
/hr |
18 |
18 |
18 |
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Mach. And Equip. Charge 10 |
|
52 |
52 |
52 |
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Land Charge 11 |
|
50 |
70 |
90 |
|
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Management Charge |
|
5% |
of gross revenue |
|
7 |
10 |
12 |
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| TOTAL
FIXED COSTS |
|
128 |
150 |
173 |
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| TOTAL
COSTS (Grain Only) |
-Per Acre |
|
211 |
246 |
277 |
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|
-Per
Bushel |
|
4.69 |
4.10 |
3.69 |
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| RETURN
ABOVE VARIABLE COSTS |
|
65 |
102 |
143 |
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| RETURN
ABOVE TOTAL COSTS |
|
(63) |
(48) |
(30) |
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| RETURN
TO LABOR AND MANAGEMENT 12 |
|
(37) |
(20) |
1
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| RECEIPTS
(Straw Only) |
|
1 |
ton/A |
45 |
/ton |
45 |
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| VARIABLE
COSTS (Straw Only) |
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Fuel, Oil, Grease 5 |
|
1 |
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Repairs 6 |
|
4 |
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Miscellaneous |
|
4 |
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Hired Labor 9 |
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| TOTAL
VARIABLE COSTS- Per Acre (Per Ton) |
|
9 |
|
6 |
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| FIXED
COSTS (Straw Only) |
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Labor Charge 9 |
|
1.5 |
hours |
8.00 |
/hour |
12 |
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Mach. & Equip. Charge 10 |
|
8 |
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Management Charge |
|
5% |
of gross revenue |
|
2 |
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| TOTAL
FIXED COSTS |
|
22 |
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| TOTAL COSTS (Straw
Only)- Per Acre (Per Ton) |
|
31 |
|
31 |
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| RETURN
ABOVE VARIABLE COSTS (Straw Only) |
|
36 |
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| RETURN
ABOVE TOTAL COSTS (Straw Only) |
|
14 |
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| RETURN
TO LABOR AND MANAGEMENT (Straw Only)12 |
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28 |
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2 |
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| 1 |
Does not
include costs or returns for storage of grain. |
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| 2 |
Price
received is estimated government loan rate for wheat in Ohio. Loan rates vary by county, |
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check with your local
FSA office for rates in your county.
No other government payments are included. |
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| 3 |
Assumes
only maintenance application of fertilizer needed, soil test values of 20 PPM
P/A and 125 PPM K/A, |
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and 20 CEC. If straw is removed: P2O5: 30,45, 55; K20:75,95,115. |
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Prices
were quoted in October, 2000.
Fertilizer prices vary over time and by area. |
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Check with local sources for current
prices. |
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| 4 |
Based
on use of 2,4-D and Banvel. Consult "Weed Control Guide for Ohio Field
Crops 2000 Edition" |
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- Bulletin 789-99 for
specific recommendations. |
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| 5 |
See tables below for
specific calculations. Lubrication costs are assumed to be 15% of fuel costs. |
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| 6 |
See tables below for
specific calculations. |
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| 7 |
Includes supplies, utilities, soil tests,
small tools, crop insurance, etc… |
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| 8 |
Interest
on all variable costs, except trucking, for 8 months at 9% interest
rate. |
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| 9 |
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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| 10 |
Reflects 1000 acres,
conservation tillage. See tables below for specific calculations. |
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| 11 |
Average based on 1999
data. Land charges vary throughout the
state, check your local rates. |
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| 12 |
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 - Grain Only |
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Number times used |
Cost |
Acres/ Hr |
Fuel* ($/A) |
Repairs ($/A) |
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15 ft. Chisel Plow |
|
1 |
$7,800 |
8.5 |
0.60 |
0.28 |
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28 ft. Field Cultivator |
|
1 |
$19,400 |
20.2 |
0.32 |
0.33 |
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25 ft. Grain Drill |
|
1 |
$26,100 |
10.6 |
0.49 |
0.84 |
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Combine w/ 20' head |
|
1 |
$141,000 |
12.7 |
1.31 |
3.38 |
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Gravity Grain Wagons |
|
2 |
$7,000 |
|
1.20 |
0.84 |
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Fertilizer Spreader |
|
1 |
$10,400 |
23.80 |
0.11 |
0.23 |
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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 |
|
0.10 |
0.05 |
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Total per Acre |
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348,700 |
|
4.13 |
10.93 |
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Fixed Costs Rate |
|
15% |
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Mach. And Equip Charge = |
$52 |
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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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=$348,700 x 15% / 1000 acres
= $52/acre |
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| Machines
are all assumed to be new and in the first year of use. Older/used machines will likely have
lower |
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machinery
costs. Size of operation will also
effect cost of machinery per acre. For
an analysis on machine |
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costs for different sized
operations, see economies of scale budgets in this publication |
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| Fixed costs
rate includes depreciation, interest, housing, and insurance. |
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| *Fuel
calculations are based on the implement plus tractor. |
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| Machinery
Inventory - Straw Only |
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Number times used |
Cost |
Acres/ Hr |
Fuel* (gal/A) |
Repairs ($/A) |
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Hay Baler |
|
1 |
$17,500 |
4.4 |
0.45 |
1.90 |
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Hay Wagon |
|
1 |
$3,200 |
4.4 |
0.50 |
0.25 |
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Hay Rake |
|
1 |
$4,700 |
5.2 |
0.25 |
0.26 |
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75 HP Tractor |
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$27,200 |
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1.14 |
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Total per Acre |
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52,600 |
|
1.20 |
3.55 |
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Fixed Costs Rate |
|
15% |
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Mach. And Equip Charge = |
$8 |
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Price of Diesel Fuel = |
$1.00 |
/gal |
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