AGRICULTURE FARM MANAGEMENT - Microsoft · 2019-01-03 · 1. Alfalfa cost assumptions taken from Saskatchewan Ministry of Agriculture - Dryland Forage Production Costs 2. Seed including

ORGANIC CROP PLANNING GUIDE 2010BROWN SOIL ZONE

AGRICULTUREF A R M M A N A G E M E N T

Each year, The Saskatchewan Ministry of Agriculture assembles Crop Planning Guides to help producers estimate their costs of producing various crops. The following crop budgets are intended to serve as a guide to estimate the income and cost for different crops using organic farming practices. These estimates do not represent provincial average cost of production figures.

The figures provide an estimate of variable expenses and other expenses (depreciation and investment cost for machinery, buildings and land). The crop prices and yields are based on a combination of data from a survey of organic farmers in 2009, current prices used by Saskatchewan Crop Insurance for calculating claims and recent quotes from Saskatchewan based organic crop buyers. Yields are based on a Saskatchewan-wide average.

On each farm, costs and yields differ due to soil type, climatic conditions and agronomic practices. Farm managers should determine their own costs, yields and expected commodity prices and adjust or change the assumptions listed on the back of this publication. Blank worksheets are provided for this purpose.

Using the GuideWhen comparing returns per acre of different crops, you must add the green manure costs to the costs of growing harvested crops. The best way of comparing different rotations is to calculate the returns per rotation acre for different rotations of crops. Refer to the example in this guide.

The break-even yields per acre show the level of yields producers would need to achieve to cover costs based on the estimated market price. The break-even prices for crops show the levels of prices needed by producers to cover costs if the estimated average yields are obtained. Farm managers are advised to interpret these figures very carefully, and evaluate new information as it becomes available.

Profitability and AgronomicsThese crop budgets can be used to assist producers in deciding which crops will be the most profitable for the coming year or in deciding which crop rotations and farming practices may be the most profitable for the farm over the long term. However, long term profitability and sustainability includes many factors such as fertility, disease, weed and insect management that must also be considered when choosing crops and rotations.

PlanningDeciding which crops to grow this coming year should be based on a long-term rotation. When looking at long-term decisions such as crop rotations, you must look at all the costs, including fixed costs. The return over total expenses should be the basis of comparison between alternatives.

Within your long-term rotation, you may have some flexibility in your crop choices. Deciding which crops to grow this coming year can be made by comparing the return over variable expenses (estimated gross revenue minus variable expenses).

ORGANIC CROP PLANNING GUIDE 2010BROWN SOIL ZONE

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Transition Crops Green Manure Plow-Down Green Manure Seed Certified Organic Crops

Grass/Alfalfa Grass/Alfalfa Grass/Alfalfa Spring Durum CPS Feed Oats Large Green Mustard Brown Tillage Sweet Chickling Peas Sweet Chickling Peas Spring Durum CPS Feed Oats Large Green Mustard BrownYear 1† Year 2 Year 3 Wheat Wheat Wheat Barley Lentils Flax Fallow Clover Vetch Clover Vetch Wheat Wheat Wheat Barley Lentils Flax

REVENUE PER ACRE

Estimated Yield (bu/ac,lb/ac,tonne/ac) (A) 1.5 1.5 18.6 20.1 22.2 28.2 32.9 502.5 7.7 8.9 250.0 15.0 22.0 18.60 20.1 22.2 28.2 32.9 502.5 7.7 8.9

Est. on Farm Market Price/bus,lb,tonne (B) 72.00 72.00 4.75 4.53 4.22 2.96 2.19 0.30 12.50 8.76 1.10 12.20 7.85 8.31 7.93 7.39 5.18 3.83 0.51 21.25 15.33

Estimated Gross Revenue/ac (AxB)=(C) 0.00 108.00 108.00 88.35 91.05 93.68 83.47 72.11 150.75 96.25 77.96 0.00 0.00 0.00 0.00 275.00 183.00 172.70 154.57 159.39 164.06 146.08 126.10 256.28 163.63 136.44

EXPENSES PER ACRE

Variable Expenses/acre

Seed 14.80 12.47 11.90 11.09 7.77 8.62 45.90 4.25 10.27 10.10 17.50 17.40 10.10 17.50 17.40 12.47 11.90 11.09 7.77 8.62 45.90 4.25 10.27

Forage Costs - Seeding 15.00

- Harvesting 11.14 11.14

- Breaking 16.06

Machinery Operating - Fuel 12.24 12.24 12.24 12.24 12.24 13.68 12.96 13.68 12.24 12.24 12.24 13.68 12.24 12.24 13.68 12.24 12.24 12.24 12.24 12.24 13.68 12.96 13.68

- Repair 4.62 4.62 4.62 4.62 4.62 7.96 4.62 6.16 4.62 4.62 4.62 7.96 4.62 4.62 7.96 4.62 4.62 4.62 4.62 4.62 7.96 4.62 6.16

Custom Work and Hired Labour 8.88 8.88 8.88 7.88 7.88 8.13 7.38 7.88 7.88 7.88 8.13 8.88 8.88 8.88 7.88 7.88 8.13 7.38 7.88

Crop Insurance Premium 0.00 0.00 0.00 7.75 10.53 11.32 10.28 10.10 23.01 20.91 17.78 12.40 16.85 18.11 16.45 16.16 32.21 31.37 26.67

Utilities and Miscellaneous 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16

Interest on Variable Expenses 0.54 0.25 0.50 0.79 0.83 0.83 0.74 0.75 1.61 0.86 0.94 1.02 1.49 1.84 2.06 0.62 0.73 0.81 0.86 0.92 0.93 0.84 0.85 1.75 1.02 1.08

Total Variable Expenses (D) 35.50 16.55 32.86 51.91 54.16 54.14 48.69 49.37 105.45 56.14 61.87 23.04 33.61 41.36 46.26 40.62 48.13 53.14 56.63 60.57 61.03 54.96 55.53 114.80 66.76 70.90

Other Expenses/acre

Building Repair 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90

Property Taxes 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75

Insurance and Licences 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45

Machinery Depreciation 15.40 15.40 15.40 15.40 15.40 19.90 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 19.90 15.40 15.40

Building Depreciation 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90

Machinery Investment 4.77 4.77 4.77 4.77 4.77 6.17 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 6.17 4.77 4.77

Building Investment 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56

Land Investment 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84

Total Other Expenses (E) 23.40 23.40 23.40 43.57 43.57 43.57 43.57 43.57 49.47 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 49.47 43.57 43.57

Labour and Management (F)*

Total Expenses (D+E+F)=(G) 58.90 39.95 56.26 95.48 97.73 97.71 92.26 92.94 154.92 99.71 105.44 66.61 77.18 84.93 89.83 84.19 91.70 96.71 100.20 104.14 104.60 98.53 99.10 164.27 110.33 114.47

Green Manure Total Cost (H)** 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Rotational Expense (G+H)=(I) 58.90 39.95 56.26 95.48 97.73 97.71 92.26 92.94 154.92 99.71 105.44 66.61 77.18 84.93 89.83 84.19 91.70 96.71 100.20 104.14 104.60 98.53 99.10 164.27 110.33 114.47

RETURNS PER ACRE

Return over Variable Expenses (C-D) -35.50 91.45 75.14 36.44 36.90 39.55 34.78 22.74 45.30 40.11 16.09 -23.04 -33.61 -41.36 -46.26 234.38 134.87 119.56 97.94 98.83 103.03 91.12 70.57 141.48 96.87 65.53

Return over Total Rotational Expenses (C-I) -58.90 68.05 51.74 -7.13 -6.67 -4.02 -8.79 -20.83 -4.17 -3.46 -27.48 -66.61 -77.18 -84.93 -89.83 190.81 91.30 75.99 54.37 55.26 59.46 47.55 27.00 92.01 53.30 21.96

BREAK-EVEN YIELD PER ACRE

To Cover Variable Expenses 0.2 0.5 10.9 12.0 12.8 16.5 22.5 351.5 4.5 7.1 36.9 3.9 6.8 6.8 7.6 8.3 10.6 14.5 225.1 3.1 4.6

To Cover Total Rotational Expenses 0.6 0.8 20.1 21.6 23.2 31.2 42.4 516.4 8.0 12.0 76.5 7.5 12.3 12.1 13.1 14.2 19.0 25.9 322.1 5.2 7.5

BREAK-EVEN PRICE PER BUS/LB



† The budget for grass/alfalfa in year 1 is representative of seeding grass/alfalfa separately. This budget cannot be used if the grass/alfalfa is underseeded into the previous crop. * These budgets do not include an estimate for owner/operator labour and management. This value varies greatly and depends both on the farm manager’s needs as well as the ability

of the farm business to generate income. Farm managers need to determine their own actual labour and management cost and add it to total expenses.

CROP PRODUCTION COSTS ($/ACRE) BROWN SOIL ZONE 2010

Transition Crops Green Manure Plow-Down Green Manure Seed Certified Organic Crops

Grass/Alfalfa Grass/Alfalfa Grass/Alfalfa Spring Durum CPS Feed Oats Large Green Mustard Brown Tillage Sweet Chickling Peas Sweet Chickling Peas Spring Durum CPS Feed Oats Large Green Mustard BrownYear 1† Year 2 Year 3 Wheat Wheat Wheat Barley Lentils Flax Fallow Clover Vetch Clover Vetch Wheat Wheat Wheat Barley Lentils Flax

REVENUE PER ACRE

Estimated Yield (bu/ac,lb/ac,tonne/ac) (A) 1.5 1.5 18.6 20.1 22.2 28.2 32.9 502.5 7.7 8.9 250.0 15.0 22.0 18.60 20.1 22.2 28.2 32.9 502.5 7.7 8.9

Est. on Farm Market Price/bus,lb,tonne (B) 72.00 72.00 4.75 4.53 4.22 2.96 2.19 0.30 12.50 8.76 1.10 12.20 7.85 8.31 7.93 7.39 5.18 3.83 0.51 21.25 15.33

Estimated Gross Revenue/ac (AxB)=(C) 0.00 108.00 108.00 88.35 91.05 93.68 83.47 72.11 150.75 96.25 77.96 0.00 0.00 0.00 0.00 275.00 183.00 172.70 154.57 159.39 164.06 146.08 126.10 256.28 163.63 136.44

EXPENSES PER ACRE

Variable Expenses/acre

Seed 14.80 12.47 11.90 11.09 7.77 8.62 45.90 4.25 10.27 10.10 17.50 17.40 10.10 17.50 17.40 12.47 11.90 11.09 7.77 8.62 45.90 4.25 10.27

Forage Costs - Seeding 15.00

- Harvesting 11.14 11.14

- Breaking 16.06

Machinery Operating - Fuel 12.24 12.24 12.24 12.24 12.24 13.68 12.96 13.68 12.24 12.24 12.24 13.68 12.24 12.24 13.68 12.24 12.24 12.24 12.24 12.24 13.68 12.96 13.68

- Repair 4.62 4.62 4.62 4.62 4.62 7.96 4.62 6.16 4.62 4.62 4.62 7.96 4.62 4.62 7.96 4.62 4.62 4.62 4.62 4.62 7.96 4.62 6.16

Custom Work and Hired Labour 8.88 8.88 8.88 7.88 7.88 8.13 7.38 7.88 7.88 7.88 8.13 8.88 8.88 8.88 7.88 7.88 8.13 7.38 7.88

Crop Insurance Premium 0.00 0.00 0.00 7.75 10.53 11.32 10.28 10.10 23.01 20.91 17.78 12.40 16.85 18.11 16.45 16.16 32.21 31.37 26.67

Utilities and Miscellaneous 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16

Interest on Variable Expenses 0.54 0.25 0.50 0.79 0.83 0.83 0.74 0.75 1.61 0.86 0.94 1.02 1.49 1.84 2.06 0.62 0.73 0.81 0.86 0.92 0.93 0.84 0.85 1.75 1.02 1.08

Total Variable Expenses (D) 35.50 16.55 32.86 51.91 54.16 54.14 48.69 49.37 105.45 56.14 61.87 23.04 33.61 41.36 46.26 40.62 48.13 53.14 56.63 60.57 61.03 54.96 55.53 114.80 66.76 70.90

Other Expenses/acre

Building Repair 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90

Property Taxes 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75

Insurance and Licences 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.45

Machinery Depreciation 15.40 15.40 15.40 15.40 15.40 19.90 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 15.40 19.90 15.40 15.40

Building Depreciation 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90

Machinery Investment 4.77 4.77 4.77 4.77 4.77 6.17 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 4.77 6.17 4.77 4.77

Building Investment 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56

Land Investment 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84 15.84

Total Other Expenses (E) 23.40 23.40 23.40 43.57 43.57 43.57 43.57 43.57 49.47 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 43.57 49.47 43.57 43.57

Labour and Management (F)*

Total Expenses (D+E+F)=(G) 58.90 39.95 56.26 95.48 97.73 97.71 92.26 92.94 154.92 99.71 105.44 66.61 77.18 84.93 89.83 84.19 91.70 96.71 100.20 104.14 104.60 98.53 99.10 164.27 110.33 114.47

Green Manure Total Cost (H)** 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Rotational Expense (G+H)=(I) 58.90 39.95 56.26 95.48 97.73 97.71 92.26 92.94 154.92 99.71 105.44 66.61 77.18 84.93 89.83 84.19 91.70 96.71 100.20 104.14 104.60 98.53 99.10 164.27 110.33 114.47

RETURNS PER ACRE

Return over Variable Expenses (C-D) -35.50 91.45 75.14 36.44 36.90 39.55 34.78 22.74 45.30 40.11 16.09 -23.04 -33.61 -41.36 -46.26 234.38 134.87 119.56 97.94 98.83 103.03 91.12 70.57 141.48 96.87 65.53

Return over Total Rotational Expenses (C-I) -58.90 68.05 51.74 -7.13 -6.67 -4.02 -8.79 -20.83 -4.17 -3.46 -27.48 -66.61 -77.18 -84.93 -89.83 190.81 91.30 75.99 54.37 55.26 59.46 47.55 27.00 92.01 53.30 21.96

BREAK-EVEN YIELD PER ACRE



BREAK-EVEN PRICE PER BUS/LB



** The harvested crop budgets do not include any costs from the green manure year(s). Farm managers need to include the cost of a green manure crop when calculating the cost of a crop rotation, either by adding to the cost of other crops (Item H), or adding the green manure as a separate crop as part of a total rotation cost calculation.

CROP PRODUCTION COSTS ($/ACRE) BROWN SOIL ZONE 2010

Saskatchewan Ministry of Agriculture For more information, contact your nearest Regional Office or call the Agriculture Knowledge Centre

Toll-Free: 1-866-457-2377

www.agriculture.gov.sk.ca Updated April 2010

Kindersley (306) 463-5513

Moose Jaw 1-866-457-2377

North Battleford (306) 446-7964

Outlook (306) 867-5575

Prince Albert (306) 953-2363

Swift Current (306) 778-8218

Tisdale (306) 878-8842

Watrous (306) 946-3220

Weyburn (306) 848-2857

Yorkton (306) 786-1531

Saskatchewan Agriculture Regional Offices

Please contact your nearest Regional Office Specialist for the latest information on topics including crops and livestock, nutrient management and the economic

implications of management decisions.

Documents

AGRICULTURE FARM MANAGEMENT - Microsoft · 2019-01-03 · 1. Alfalfa cost assumptions taken from Saskatchewan Ministry of Agriculture - Dryland Forage Production Costs 2. Seed including