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   Business and Economics

February 2004

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Guidelines for Estimating
2004 Crop Production Costs

These projected crop costs have been prepared to assist in developing your own production costs. Also available, is an Excel spreadsheet that can be downloaded here.

The following budgets are estimates of the cost of producing several different crops. General departmental recommendations are assumed in using fertilizers and chemical inputs. The figures provide an economic evaluation of the crops and estimated yields required to cover all the costs including labour and investment. Management has not been accounted for in these enterprise budgets.

These budgets may be adjusted by putting in your own figures. As a producer you are encouraged to calculate your own costs of production for various crops. On each farm, costs and yields differ due to soil type, 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. If you require assistance with developing your individual budget, please contact your local Manitoba Agriculture, Food and Rural Initiatives office.

Crop Production Costs 2004 Guidelines
(Dollars Per Acre)
A. Operating Costs Wheat Durum
Wheat		 Winter
Wheat		 Fall Rye Malt
Barley		 Your Farm
Seed & Treatment $10.63 $14.45 $12.00 $8.25 $10.00 __________
Fertilizer $32.34 $32.34 $54.70 $30.90 $30.54 __________
Herbicide $21.00 $21.00 $5.50 $4.00 $21.00 __________
Fungicide $10.00 $19.00 $17.50 $0.00 $5.00 __________
Insecticide $0.00 $0.00 $0.00 $0.00 $0.00 __________
Fuel $11.50 $11.50 $9.50 $9.50 $11.50 __________
Machinery Operating $10.00 $10.00 $8.00 $8.00 $10.00 __________
Crop Insurance $5.92 $5.75 $6.12 $5.49 $4.94 __________
Other Costs $7.50 $7.50 $7.50 $7.50 $7.50 __________
Land Taxes $6.50 $6.50 $6.50 $6.50 $6.50 __________
Drying Costs $0.00 $0.00 $0.00 $0.00 $0.00 __________
Interest on Operating $3.17 $3.52 $3.50 $2.20 $2.94 __________
Total Operating $118.56 $131.56 $130.82 $82.34 $109.92 __________
B. Fixed Costs
Land Investment Costs $22.00 $22.00 $22.00 $22.00 $22.00 __________
Machinery Depreciation $22.50 $22.50 $22.50 $22.50 $22.50 __________
Machinery Investment $9.00 $9.00 $9.00 $9.00 $9.00 __________
Storage Costs $2.14 $2.14 $2.14 $2.14 $2.14 __________
Total Fixed $55.64 $55.64 $55.64 $55.64 $55.64 __________
Total Operating & Fixed $174.20 $187.20 $186.46 $137.98 $165.56 __________
C. Labour $15.00 $15.00 $15.00 $15.00 $15.00 __________
Total Costs $189.20 $202.20 $201.46 $152.98 $180.56 __________

Breakeven Analysis

Estimated Farmgate Price
$ per unit $4.40 bu $4.75 bu $3.25 bu $2.80 bu $3.15 bu __________
$ per tonne $162 t $175 t $119 t $110 t $145 t __________
Breakeven Yield:
Operating Costs 26.9 bu 27.7 bu 40.3 bu 29.4 bu 34.9 bu __________
Operating & Fixed Costs 39.6 bu 39.4 bu 57.4 bu 49.3 bu 52.6 bu __________
Total Costs 43.0 bu 42.6 bu 62.0 bu 54.6 bu 57.3 bu __________

Crop Production Costs 2004 Guidelines
(Dollars Per Acre)
A. Operating Costs Feed Barley Oats Canary Seed Corn Canola Your Farm
Seed & Treatment $10.00 $10.00 $15.00 $40.00 $21.25 __________
Fertilizer $32.34 $29.85 $26.55 $50.80 $38.70 __________
Herbicide $21.00 $5.50 $22.50 $29.50 $26.00 __________
Fungicide $5.00 $5.00 $0.00 $0.00 $12.75 __________
Insecticide $0.00 $0.00 $0.00 $0.00 $0.00 __________
Fuel $11.50 $11.50 $11.50 $16.00 $11.50 __________
Machinery Operating $10.00 $10.00 $10.00 $13.00 $10.00 __________
Crop Insurance $4.94 $6.22 $6.19 $6.20 $8.69 __________
Other Costs $7.50 $7.50 $7.50 $8.00 $7.50 __________
Land Taxes $6.50 $6.50 $6.50 $8.50 $6.50 __________
Drying Costs $0.00 $0.00 $0.00 $25.00 $0.00 __________
Interest on Operating $2.99 $2.53 $2.91 $5.42 $3.93 __________
Total Operating $111.77 $94.60 $108.65 $202.42 $146.82 __________
B. Fixed Costs
Land Investment Costs $22.00 $22.00 $22.00 $32.00 $22.00 __________
Machinery Depreciation $22.50 $22.50 $22.50 $30.00 $22.50 __________
Machinery Investment $9.00 $9.00 $9.00 $12.00 $9.00 __________
Storage Costs $2.14 $2.14 $2.14 $4.27 $2.14 __________
Total Fixed $55.64 $55.64 $55.64 $78.27 $55.64 __________
Total Operating & Fixed $167.41 $150.24 $164.29 $280.69 $202.46 __________
C. Labour $15.00 $15.00 $17.00 $20.00 $15.00 __________
Total Costs $182.41 $165.24 $181.29 $300.69 $217.46 __________

Breakeven Analysis

Estimated Farmgate Price
$ per unit $2.25 bu $1.80 bu $0.18 lb $3.30 bu $7.75 bu __________
$ per tonne $103 t $117 t $397 t $130 t $342 t __________
Breakeven Yield:
Operating Costs 49.7 bu 52.6 bu 604 lb 61.3 bu 18.9 bu __________
Operating & Fixed Costs 74.4 bu 83.5 bu 913 lb 85.1 bu 26.1 bu __________
Total Costs 81.1 bu 91.8 bu 1007 lb 91.1 bu 28.1 bu __________

Crop Production Costs 2004 Guidelines
(Dollars Per Acre)
A. Operating Costs Mustard Flaxseed Soybeans
Conventional		 Soybeans
Roundup		 Navybeans
Solid Seed		 Your Farm
Seed & Treatment $18.00 $10.80 $47.51 $76.77 $62.78 __________
Fertilizer $35.40 $28.20 $13.10 $13.10 $33.80 __________
Herbicide $33.00 $21.00 $43.00 $18.00 $99.00 __________
Fungicide $0.00 $0.00 $0.00 $0.00 $39.00 __________
Insecticide $0.00 $0.00 $0.00 $0.00 $0.00 __________
Fuel $11.50 $11.50 $11.56 $11.29 $13.28 __________
Machinery Operating $10.00 $10.00 $9.80 $9.80 $9.40 __________
Crop Insurance $7.82 $5.82 $7.55 $7.55 $8.75 __________
Other Costs $7.50 $7.50 $8.00 $8.00 $8.00 __________
Land Taxes $6.50 $6.50 $6.50 $6.50 $6.50 __________
Drying Costs $0.00 $0.00 $0.00 $0.00 $0.00 __________
Interest on Operating $3.57 $2.79 $4.04 $4.15 $7.71 __________
Total Operating $133.29 $104.11 $151.06 $155.16 $288.22 __________
B. Fixed Costs
Land Investment Costs $22.00 $22.00 $22.00 $22.00 $22.00 __________
Machinery Depreciation $22.50 $22.50 $24.50 $24.50 $23.50 __________
Machinery Investment $9.00 $9.00 $9.80 $9.80 $9.40 __________
Storage Costs $2.14 $2.14 $2.68 $2.68 $2.68 __________
Total Fixed $55.64 $55.64 $58.98 $58.98 $57.58 __________
Total Operating & Fixed $188.93 $159.75 $210.04 $214.14 $345.80 __________
C. Labour $15.00 $18.00 $15.00 $15.00 $15.00 __________
Total Costs $203.93 $177.75 $225.04 $229.14 $360.80 __________

Breakeven Analysis

Estimated Farmgate Price
$ per unit $0.21 lb $8.00 bu $7.50 bu $7.50 bu $0.23 __________
$ per tonne $463 t $315 t $276 t $276 t $507 t __________
Breakeven Yield:
Operating Costs 635 lb 13.0 bu 20.1 bu 20.7 bu 1,253 lb __________
Operating & Fixed Costs 900 lb 20.0 bu 28.0 bu 28.6 bu 1,503 lb __________
Total Costs 971 lb 22.2 bu 30.0 bu 30.6 bu 1,569 lb __________

Crop Production Costs 2004 Guidelines
(Dollars Per Acre)
A. Operating Costs Navybeans
Row Crop		 Peas Sunflowers
Confection		 Sunflowers
Oil		 Lentils Your Farm
Seed & Treatment $44.72 $23.13 $30.53 $20.00 $16.00 __________
Fertilizer $33.80 $16.80 $38.50 $38.50 $18.20 __________
Herbicide $79.00 $20.00 $40.50 $40.50 $50.00 __________
Fungicide $39.00 $7.75 $0.00 $0.00 $25.25 __________
Insecticide $0.00 $0.00 $17.00 $8.50 $0.00 __________
Fuel $16.46 $12.00 $12.00 $12.00 $12.00 __________
Machinery Operating $11.00 $10.50 $11.00 $11.00 $11.00 __________
Crop Insurance $9.80 $5.73 $7.86 $7.86 $8.50 __________
Other Costs $8.00 $8.00 $8.00 $8.00 $7.50 __________
Land Taxes $8.00 $6.50 $6.50 $6.50 $6.50 __________
Drying Costs $0.00 $0.00 $6.00 $6.00 $0.00 __________
Interest on Operating $6.87 $3.04 $4.89 $4.37 $4.26 __________
Total Operating $256.65 $113.45 $182.78 $163.23 $159.21 __________
B. Fixed Costs
Land Investment Costs $32.00 $22.00 $22.00 $22.00 $22.00 __________
Machinery Depreciation $27.50 $22.50 $22.50 $22.50 $22.50 __________
Machinery Investment $11.00 $9.00 $9.00 $9.00 $9.00 __________
Storage Costs $2.68 $2.14 $2.14 $2.14 $2.14 __________
Total Fixed $73.18 $55.64 $55.64 $55.64 $55.64 __________
Total Operating & Fixed $329.83 $169.09 $238.42 $218.87 $214.85 __________
C. Labour $18.00 $17.00 $17.00 $17.00 $17.00 __________
Total Costs $347.83 $186.09 $255.42 $235.87 $231.85 __________

Breakeven Analysis

Estimated Farmgate Price
$ per unit $0.23 lb $5.00 bu $0.21 lb $0.16 lb $0.18 lb __________
$ per tonne $507 t $184 t $463 t $353 t $397 t __________
Breakeven Yield:
Operating Costs 1,116 lb 22.7 bu 870 lb 1,020 lb 885 lb __________
Operating & Fixed Costs 1,434 lb 33.8 bu 1,135 lb 1,368 lb 1,194 lb __________
Total Costs 1,512 lb 37.2 bu 1,216 lb 1,474 lb 1,288 lb __________

Crop Production Costs 2004 Guidelines
(Dollars Per Acre)
A. Operating Costs Buckwheat Hemp
Oil		 Hemp
Fiber		 Your Farm Your Farm
Seed & Treatment $12.00 $22.50 $45.00 __________ __________
Fertilizer $32.45 $34.80 $39.30 __________ __________
Herbicide $15.50 $0.00 $0.00 __________ __________
Fungicide $0.00 $0.00 $0.00 __________ __________
Insecticide $0.00 $0.00 $0.00 __________ __________
Fuel $11.50 $11.50 $12.50 __________ __________
Machinery Operating $10.00 $13.50 $13.50 __________ __________
Crop Insurance $8.36 $7.00 $7.00 __________ __________
Other Costs $7.50 $7.50 $7.50 __________ __________
Land Taxes $6.50 $6.50 $6.50 __________ __________
Drying Costs $0.00 $15.00 $0.00 __________ __________
Interest on Operating $2.85 $3.25 $3.61 __________ __________
Total Operating $106.66 $121.55 $134.91 __________ __________
B. Fixed Costs
Land Investment Costs $22.00 $22.00 $22.00 __________ __________
Machinery Depreciation $22.50 $22.50 $20.00 __________ __________
Machinery Investment $9.00 $9.40 $8.00 __________ __________
Storage Costs $2.14 $2.14 $2.14 __________ __________
Total Fixed $55.64 $57.04 $52.14 __________ __________
Total Operating & Fixed $162.30 $178.59 $187.05 __________ __________
C. Labour $15.00 $15.00 $15.00 __________ __________
Total Costs $177.30 $193.59 $202.05 __________ __________

Breakeven Analysis

Estimated Farmgate Price
$ per unit $7.25 bu $0.45 lb $0.05 lb __________ __________
$ per tonne $333 t $992 t $110 t __________ __________
Breakeven Yield:
Operating Costs 14.7 bu 270 lb 2,698 lb __________ __________
Operating & Fixed Costs 22.4 bu 397 lb 3,741 lb __________ __________
Total Costs 24.5 bu 430 lb 4,041 lb __________ __________
_______________________________
Prepared By:
Peter Blawat, P.Ag.
Farm Management Specialist		 Keith Kyle, P.Ag.
Farm Management Specialist		 Lionel Kaskiw P. Ag.
Regional Agronomist
Rob Park
Oilseed Crop Specialist		 Bruce Brolley CCA
Pulse Crop Specialist
For Further Information See Your Local Manitoba Agriculture, Food and Rural Initiatives Office.