Extension/Research Information

Ohio Enterprise Budgets

Ohio State University Extension
Department of Agricultural, Environmental, and Development Economics
The Ohio State University

April 1999


1999 ALFALFA HAY PRODUCTION BUDGET

Direct Seeding - 4 Year Stand 1


ITEM

EXPLANATION

PRICE

UNIT

YIELD (ton/A)

YOUR BUDGET
3.0 4.5 2 6.0

RECEIPTS 3
Alfalfa Hay - $110 /ton $330 $495 $660 -
VARIABLE COSTS
Seed 4 15 lbs. 4.00

/lb

15 15 15
Fertilizer 5
N (lbs.) 0 0 0 0.23 /lb 0 0 0
P2O5(lbs) 40 60 80 0.28 /lb 11 17 22
K2O(lbs) 95 145 190 0.13 /lb 12 19 25
Lime(lbs)

750

14 /ton 5 5 5
Chemicals 6 27 27 27
Fuel, Oil, Grease 8 9 10
Repairs 7 7 7
Miscellaneous 7 16 17 18
Int. on Oper. Cap. 5 6 mo. 9.0 % 5 5 6
Hired Labor 6 0 0 0
TOTAL VARIABLE COSTS -Per Acre - 107 122 136 -
-Per Ton - 35.60 27.01 22.60 -
FIXED COSTS
Labor Charge 9 6.5 hours 7.50 /hr 49 49 49
Mach. And Equip. Charge 10 50 50 50
Land Charge 11 70 85 100
Management Charge 5% of Gross 17 25 33
TOTAL FIXED COSTS- 185 209 232 -
TOTAL COSTS - -Per Acre - - 292 330 367 -
- -Per Ton - - 97 73 61 -
RETURN ABOVE VARIABLE COSTS - 223 373 524 -
RETURN ABOVE TOTAL COSTS - - 38 165 293 -

1. Does not include storage costs.

2. Assumes a 3 ton yield in seeding year; yields of approximately 3, 5, and 7 tons, respectively, in the following years; middle yield shown reflects weighted average.

3. Based on 86% DM alfalfa hay.

4. Expenses associated with seeding are prorated over the four-year stand life.

5. Annual application of maintenance fertilizer. 5-10 lb. of N. could be added at seeding. Soil test values of CEC=20, P=25 ppm, K=150 ppm.

6. Based on use of Baythroid (1. oz. @ $3.90/oz.), Poast (1 pt. @ $6.50/pt.), and Butyrac (2 qt. @ 8.50/qt.). An additional fall herbicide treatment may be necessary in some areas. Additional insect control may be necessary in some years.

7. Includes twine, other supplies, utilities, soil tests, small tools, crop insurance, etc...

8. Interest charged for 6 months at 9% interest rate.

9. 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. It's a fixed cost if labor costs do not change with acres farmed.

10. Reflects 1000 acres, conservation tillage. See Table 1 for discussion on how to fit to your situation.

11. Average based on 1996 data. Land charges vary throughout the state, check your local rates.


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