Extension/Research Information

Ohio Enterprise Budgets

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

April 1999


1999 WHEAT PRODUCTION BUDGET 1

Grain and Straw Harvested


ITEM

EXPLANATION

PRICE

UNIT

YIELD (bu/A)

YOUR BUDGET
45 60 75

RECEIPTS
Wheat (Grain Only) - $2.25 /bu $101 $135 $169 -
VARIABLE COSTS
Seed 120 lbs. 0.20

/lb

24 24 24
Fertilizer 2
N (lbs.) 30 60 80 0.23 /lb 7 14 18
P2O5(lbs) 30 40 45 0.28 /lb 8 11 13
K2O(lbs) 35 40 45 0.13 /lb 5 5 6
Lime(lbs)

1000

14 /ton 7 7 7
Chemicals 3 7 7 7
Trucking - Fuel Only 0.03 /bu 1 2 2
Fuel, Oil, Grease 8 9 9
Repairs 5 6 7
Miscellaneous 4 12 13 14
Int. on Oper. Cap. 5 8 mo. 9.0 % 5 6 6
Hired Labor 6 0 0 0
TOTAL VARIABLE COSTS -Per Acre - 89 104 113 -
-Per Bushel - 1.98 1.73 1.51 -
FIXED COSTS
Labor Charge 6 2.0 hours 7.50 /hr 15 15 15
Mach. And Equip. Charge 7 47 47 47
Land Charge 8 Rent 70 85 100
Management Charge 5% of Gross 5 7 8
TOTAL FIXED COSTS - 137 154 170 -
TOTAL COSTS - -Per Acre - - 226 257 284 -
- -Per Bushel - - 5.02 4.29 3.78 -
RETURN ABOVE VARIABLE COSTS - 12 31 55 -
RETURN ABOVE TOTAL COSTS - - (125) (122) (115) -

-----------------------------------------------------------------------------------------------------------------

Reciepts (Straw Only)

1.5 ton/A

$60 ton/A

- $90 - -
VARIABLE COSTS (Straw Only)
Fuel, Oil, Grease 2
Repairs 3
Miscellaneous 4
Hired Labor 6
TOTAL VARIABLE COSTS - Per Acre (Per Ton) -- - 9 6 -
FIXED COSTS (Straw Only)
Labor Charge 6

1.5 hours

7.50/hr

11
Mach & Equip. Charge 15
Management Charge

5% of gross

5
TOTAL FIXED COSTS - - - 31 - --
TOTAL COSTS (Straw Only) -Per Acre (Per Ton) - - 40 27 -
RETURN ABOVE VARIABLE COSTS (Straw Only) - 81 - -
RETURN ABOVE TOTAL COSTS (Straw Only) - 50 - -

1. Does not include costs or returns for storage of grain or government programs.

2. 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: P2O5: 30,45, 55; K20:75,95,115.

3. Based on use of 2,4-D (1 pt. @ $2.90/qt.) and Banvel (1/4 pt. @ $21.27/qt.).

4. Includes supplies, utilities, soil tests, small tools, crop insurance, etc...

5. Interest on all variable costs, except drying and trucking, for 8 months at 9% interest rate.

6. 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.

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

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


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