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   Business and Economics

March 2002

2002 Guidelines for Estimating
Cereal (Barley) Silage
Production Costs

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This guide is designed to provide you with planning information and a format for calculating the cost of producing cereal silage.

The major advantage of silage is that the crop can be harvested when it is ready in almost all weather conditions.  Since there are fewer harvesting losses, more nutrients are harvested per acre compared with most other systems.  Ensiling permits the use of a wider range of crops including grasses, legumes, grains, corn and miscellaneous salvage crops that have suffered weather damage or weed infestation.

The major disadvantages of silage compared with hay is that it requires more capital investment and labour.  Also silage has limited market potential, because trucking costs limit distance to market, it must be produced near the location where it will be fed.

This budget is based on ensiling 1500 acres.  Machinery and labour requirements for silage can be met by sharing with neighbours to reduce unit costs.  This budget can also be used to compare your costs with custom rate charges.

Producers are encouraged to calculate their own costs of production.  Each farm has a different set of costs and yields due to varying soil types, climatic conditions and agronomic practices.

Disclaimer: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user. No liability for decisions based on this publication is assumed. If you require assistance with developing your individual budget, please contact your local MAF Farm Management Specialist or the Farm Management Section in Winnipeg at (204) 945-4937.

Cereal (Barley) Silage - Cost of Production Summary 2002

A. Operating Costs Cost/Acre Cost/Ton Wet Cost/Ton DM Your Cost
1.01 Seed $8.75 $1.59 $4.55 ________
1.02 Fertilizer $24.19 $4.40 $12.56 ________
1.03 Chemicals $12.00 $2.18 $6.23 ________
1.04 Field Fuel Costs $8.75 $1.59 $4.55 ________
1.05 Moving Fuel Costs $0.86 $0.16 $0.45 ________
1.06 Packing Fuel Costs $0.84 $0.15 $0.44 ________
1.07 Repair & Maintenance $5.00 $0.91 $2.60 ________
1.08 Insurance $4.00 $0.73 $2.08 ________
1.09 Miscellaneous $8.00 $1.45 $4.16 ________
1.10 Land Taxes $6.50 $1.18 $3.38 ________
Subtotal Operating $78.89 $14.34 $4.98 ________
1.11 Interest on Operating $2.56 $0.47 $1.33 ________
Total Operating Costs $81.45 $14.81 $42.31 ________
   
B. Fixed Costs
  
2. Depreciation
2.01 Cropping Equipment $11.25 $2.05 $5.84 ________
2.02 Silage Equipment $10.50 $1.91 $5.45 ________
2.03 Bunker Storage $1.00 $0.18 $0.52 ________
  
3. Investment
3.01 Land $17.50 $3.18 $9.09 ________
3.02 Cropping Equipment $4.81 $0.88 $2.50 ________
3.03 Silage Equipment $2.25 $0.41 $1.17 ________
3.04 Bunker Storage $0.18 $0.03 $0.09 ________
Total Fixed Costs $47.48 $8.63 $24.67 ________
  
C. Labour
4.01 Cropping $8.75 $1.59 $4.55 ________
4.02 Swathing $1.25 $0.23 $0.65 ________
4.03 Harvesting $1.33 $0.24 $0.69 ________
4.04 Bunker $1.33 $0.24 $0.69 ________
Total Labour Costs $12.66 $2.30 $6.58 ________
  
Total Cost of Production $167.59 $25.75 $73.56 ________
  
Estimated yield per acre
Wet ton 5.5
Dry ton 1.9

Click here for Detailed Cereal (Barley) Silage Production Cost Worksheet.

Assumptions

  1. This budget outlines the cost of production for barley silage.
  2. Assumes use of bunker silo.

For further iInformation contact your local  Manitoba Agriculture, Food and Rural Initiatives Office

Budget Prepared By The Following Specialists:
Peter Blawat
Farm Management Specialist
Keith Kyle
Farm Management Specialist
John Corbey
Farm Management Specialist

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