Publication 60

Publication 60—Barley

Operating Expenses (costs based on projected yield of 1.5 tonne/ac (70 bu/ac))	Sample Costs/Acre	Your Farm Budget
Seed - 120 lb/acre certified treated (1.0 - 1.4 m seeds/ac)	48.00
Fertilizer - 74 kg/ha N (2,800 or less Corn Heat Units (CHUs))	45.10
Fertilizer - 46 kg/ha N (2,800 or more CHUs)	28.20
Fertilizer - 20 kg/ha P	9.65
Fertilizer - 30 kg/ha K	14.10
Herbicide - Annual grasses and Broadleaf weeds	6.60
Herbicide - Other
Fungicide, if required
Tractor and Machine Expenses - Fuel (17 L) and lubricants	19.75
Tractor and Machine Expenses - Repairs and maintenance	15.55
Crop insurance	6.70
Custom work (fertilizer application, mixing & delivery)	10.20
Custom work (pesticide application)	10.20
Custom work (other)
Trucking ($8.35/tonne)	12.55
Storage
Land rent
Operator labour (self or hired)	12.45
Interest on operating	5.65
Total Operating Expenses - Grain (2,800 or less CHUs)	216.50
Total Operating Expenses - Grain (2,800 or more CHUs)	199.60

Expenses for Straw	Sample Costs/Acre	Your Farm Budget
Tractor and Machine Expenses - Fuel (3 L) and lubricants	4.00
Tractor and Machine Expenses - Repairs and maintenance	3.25
Twine	2.80
Other	11.55
Total Operating Expenses - Straw	21.60
Total Operating Expenses (2800 or less CHUs)	238.10
Total Operating Expenses (2800 or more CHUs)	221.20

Revenue	Your Farm Budget
Expected barley yield _______________
Expected barley price _______________
Total Market Revenue (Yield x Price)
Program payment
Total Barley Revenue
Expected straw yield _______________
Expected straw price _______________
Total Straw Revenue (Yield x Price)
Total Revenue
Gross Margin (Revenue - Operating Expenses)

Overhead Expenses	Sample Costs/Acre		Your Farm Budget
Overhead Expenses	Barley Only	Barley + Straw	Your Farm Budget
Machinery - Depreciation	29.05	33.20
Machinery - Interest on investment	14.45	16.45
Land
Other overhead	11.25	12.30
Total Expenses (2,800 or less CHUs)	271.25	300.05
Total Expenses (2,800 or more CHUs)	254.35	283.15
Breakeven price on your farm is: (total expenses/expected yield)

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 and Cost of Production Program Lead/OMAFRA
Creation Date:	14 December 2010
Last Reviewed:	11 December 2012