Spring Canola - Herbicide Tolerant Enterprise Budget


 
Revenue
 Revised Jan 2011
Sample cost
per Acre		 Your Farm Budget
Expected Yield (tonnes/ac)
0.91
  
Expected Price ($/tonne)
560.00
  
Total Expected Revenue (Yield x Price)
    
add: Program Payment
    
Total Revenue
    

 
Expenses
Revised Jan 2011
Sample cost
per Acre
 Your Farm Budget
Seed - 5 lbs/acre - Hybrid, treated
49
  
Seed Treatment
   
Fertilizer #1 96 kg/ha N (160 kg/ha Urea + 112 kg/ha ammonium sulphate)
57
  
Fertilizer #2 20 kg/ ha P
11
  
Fertilizer #3 20 kg/ha K
9
  
Herbicide - Annual Grasses
    
Herbicide - Broadleaf Herbicides
    
Herbicide - Other Herbicides
12
  
Insecticides
    
Fungicides
    
Technology Use Agreement
0
  
Crop Insurance
14
  
Program Premium
    
Custom Work - #1 Pesticide application
10
  
Custom Work - #2 Fertilizer application
10
  
Drying
    
Storage
    
Trucking
7
  
Marketing Fees
4
  
Other
   
Fuel
17
  
Mach. Repair & Maint.
17
  
Bldg. Repair & Maint.
    
Labour
11
  
General Variable Costs
 
  
Interest on Operating Capital
4
  
Total Variable Costs
232
  

 

Gross Margin (Revenue - Variable Costs)

 
Fixed Costs
 Revised Jan 2011
Sample cost
per Acre		 Your Farm Budget
Depreciation
30
  
Interest on Term Loans
15
  
Land Costs
    
Long-Term Leases
    
General Fixed Costs
12
  
Total Fixed Costs
57
 
Total Expenses
289
  

Breakeven Price on Your Farm is (Total Expenses / Expected Yield)

Allocation of General Variable and Fixed Costs

General Variable and Fixed Costs or general overhead costs are those whole farm costs that can be difficult to allocate to a specific enterprise. These costs will show little or no change whether one crop or another is grown. That is to say your crop mix choice should be the same after allocating general overhead costs as it was before they were added. This table allows you to allocate these overhead costs and transfer them to the budget to arrive at a total cost of production.

Cost Item Whole Farm $ Percent Allocated to Canola Total Dollars Allocated to Canola Per Acre Costs for Canola Your Farm Budget
Example: 100 acres of Canola
Legal and accounting fees
$1500.00
20%
$300
$3.00
  
General Variable Costs
$
Canola
Canola
Canola
 
Advertising
          
Electricity and Heating Fuel
          
Telephone
          
Memberships / Subscription Fees
          
Office Expenses
          
Legal and Accounting Fees
          
Motor Vehicle Expenses
          
Small Tools
          
Soil Testing
          
Licenses/permits
          
Other general variable costs
          
Total General Variable Costs
          
General Fixed Costs
          
Property Taxes
          
Other Insurance Premiums
          
Other General Fixed Costs
          
Total General Fixed Costs
          
Total Fixed Costs
          
Total Expenses
          

 

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For more information:
Toll Free: 1-877-424-1300
Local: (519) 826-4047
E-mail: ag.info.omafra@ontario.ca
Author: John Molenhuis - Business Analysis & Cost of Production Program Lead/OMAFRA
Creation Date: 18 January 2010
Last Reviewed: 16 February 2011