Economics and Competitiveness
2008
Cost and Return Benchmarks
for Crops and Forages
Black Soil Zone
TABLE OF CONTENTS
2008 Black Soil Zone
OVERVIEW .......................................................................................................1
CROPS
Spring Wheat ..........................................................................................2
CPS Wheat .............................................................................................6
Malt Barley ..............................................................................................10
Feed Barley.............................................................................................13
Oats ........................................................................................................17
Liberty Link Canola .................................................................................18
Roundup Ready Canola..........................................................................22
Field Peas ...............................................................................................26
FORAGES
Greenfeed ...............................................................................................30
Haylage...................................................................................................31
Grain Silage ............................................................................................35
Alfalfa Hay...............................................................................................39
Alfalfa/Grass Hay ....................................................................................41
DEFINITIONS AND ALLOCATIONS..................................................................45
OVERVIEW OVERVIEW
2008 Black Soil Zone
The AgriProfit$ Business Analysis and Research
Program provides a provincial overview of costs and
returns for field crops and forages. The Economics
Branch collects cost of production information
annually from Alberta producers to generate
regional benchmarks. Producer participants are
critical to providing a financial representation of
Alberta’s cropping industry.
AgriProfit$ cropping benchmarks are analyzed by
soil zone group, top third producers, and owned
land versus rented land where available. Top third
averages are calculated from fields that have the
highest return to equity. Analyzing crops by owned
versus rented also provides insight into differences
in management.
Benchmarks allow for comparison of individual crop
costs and returns to other farms in a similar
production area. Benchmarks should not replace
individual cropping and financial records. There is a
danger of over or underestimating costs and returns
if basing them on regional benchmarks and
forecasts. Strategic planning is more effective when
individual costs are used. Managing unit costs of
production is one of the most significant strategies
to ensure profitability in a mature commodity market.
2008 AgriProfit$ Participants
overnment of Alberta
The top map shows the Black Soil Zone in Alberta;
this is the grouping method used for this study.
Please note that farms highlighted within these
zones may contain characteristics of neighbouring
soil zones. The map on the bottom shows the
distribution of the 2008 participants.
Questions or Comments:
Karla Bergstrom
Production Crops Economist, Economics Branch
Alberta Agriculture and Rural Development
Phone: (780) 422-3122 Fax: (780) 427-5220
Email: [email protected]
Website: www.agriculture.gov.ab.ca
Alberta Ag-Info Centre 310-FARM
Acknowledgements:
Dale Kaliel, Pauline Van Biert, Shukun Guan, Lorraine
Kohlman, Nabi Chaudhary, Guangzhi Liu, Richard
Stadlwieser, Interviewers and Participants
G
Agriculture and Rural Development
1
1. Crop Sales - Imputed Value of Production
2. Crop Insurance Receipts
3. Miscellaneous Receipts
4. Government Program
1. Seed & Seed Cleaning
2. Fertilizer
3. Chemicals
4. Hail / Crop Insurance & Program Premiums
5. Trucking & Marketing
6. Fuel
7. Irrigation Fuel & Electricity
8. Repairs - Machine
9. Repairs - Buildings
10. Utilities & Miscellaneous Expenses
11. Custom Work & Specialized Labour
12. Operating Interest Paid
13. Paid Labour & Benefits
14. Unpaid Labour
1. Cash/Share Rent & Land Lease
2. Taxes, Water Rates, Lic. & Insurance
3. Equipment & Building a) Depreciation
4. Paid Capital Interest
GROSS RETURN
VARIABLE COSTS
TOTAL CAPITAL COSTS
(D) CASH COSTS (B+C-B14-C3)
(E) TOTAL PRODUCTION COSTS (B+C)
(F) GROSS MARGIN (A-D)
RETURN TO UNPAID LABOUR(A-E+B14)
RETURN TO INVESTMENT (A-E+C4)
RETURN TO EQUITY (A-E)
MANAGEMENT
Yield Per Acre (Bushel)
Expected Market Price Per Bushel
(A)
(B)
(C)
Total $ $/Acre $/Bushel
Rates: 70N 25P 18K 6S
5. Additional Revenue from Straw / Aftermath Grazing
TOTAL
Irr. Machinery
Machinery
Buildings
Land
INVESTMENT
2008 Crops Enterprise Analysis
Dryland Spring Wheat
Acres Cropped: 191.38
Enterprises: 32
78,183.14
204.99
.00
.00
786.25
408.53
1.07
.00
.00
4.11
4,149.87
12,876.81
6,426.71
2,694.25
622.37
3,550.31
.00
2,179.09
1,137.57
1,942.59
240.82
1,021.31
3,873.21
1,617.71
21.68
67.29
33.58
14.08
3.25
18.55
.00
11.39
5.94
10.15
1.26
5.34
20.24
8.45
6,702.76
1,113.55
6,101.96
1,995.72
35.02
5.82
31.88
10.43
27,956.76
21,854.80
22,232.81
20,237.09
146.08
114.20
116.17
105.75
2.23
1.74
1.77
1.61
65.57
6.23
79,174.38 413.71 6.31
6.23
3.37221.2042,332.63
16,604.66
51,217.62
58,937.29 4.70
4.08267.63
86.77 1.32
315,465.24 1,648.41
7.0 %
(180.39 hours)
(164.56 hours)
235,235.94
24,949.46
55,279.84
.00
1,229.19
130.37
288.86
.00
307.97
3.61690.67 b) Lease Payments
2
1. Crop Sales - Imputed Value of Production
2. Crop Insurance Receipts
3. Miscellaneous Receipts
4. Government Program
1. Seed & Seed Cleaning
2. Fertilizer
3. Chemicals
4. Hail / Crop Insurance & Program Premiums
5. Trucking & Marketing
6. Fuel
7. Irrigation Fuel & Electricity
8. Repairs - Machine
9. Repairs - Buildings
10. Utilities & Miscellaneous Expenses
11. Custom Work & Specialized Labour
12. Operating Interest Paid
13. Paid Labour & Benefits
14. Unpaid Labour
1. Cash/Share Rent & Land Lease
2. Taxes, Water Rates, Lic. & Insurance
3. Equipment & Building a) Depreciation
4. Paid Capital Interest
GROSS RETURN
VARIABLE COSTS
TOTAL CAPITAL COSTS
(D) CASH COSTS (B+C-B14-C3)
(E) TOTAL PRODUCTION COSTS (B+C)
(F) GROSS MARGIN (A-D)
RETURN TO UNPAID LABOUR(A-E+B14)
RETURN TO INVESTMENT (A-E+C4)
RETURN TO EQUITY (A-E)
MANAGEMENT
Yield Per Acre (Bushel)
Expected Market Price Per Bushel
(A)
(B)
(C)
$/Acre $/Acre
5. Additional Revenue from Straw / Aftermath Grazing
TOTAL
Irr. Mach.
Machinery
Buildings
Land
INVESTMENT
2008 Crops Enterprise Analysis
Dryland Spring Wheat
Acres Cropped:
Enterprises:
408.53
1.07
.00
.00
4.11
452.82
.00
.00
.00
5.73
21.68
67.29
33.58
14.08
3.25
18.55
.00
11.39
5.94
10.15
1.26
5.34
20.24
8.45
21.39
62.84
28.02
14.15
2.80
17.36
.00
10.22
6.54
7.96
1.68
3.05
12.47
7.25
35.02
5.82
31.88
10.43
6.20
7.54
26.54
18.86
146.08
114.20
116.17
105.75
234.65
208.12
219.72
200.86
69.98
6.47
413.71 458.55
195.70221.20
86.77
267.63
307.97
223.90
61.98
1,648.41 2,033.44
1,229.19
130.37
288.86
.00
1,691.85
86.03
255.56
.00
257.68
2.853.61 b) Lease Payments
6.23
65.57
Group AVG Top 1/3 AVG
191.38 195.73
32 11
3
1. Crop Sales - Imputed Value of Production
2. Crop Insurance Receipts
3. Miscellaneous Receipts
4. Government Program
1. Seed & Seed Cleaning
2. Fertilizer
3. Chemicals
4. Hail / Crop Insurance & Program Premiums
5. Trucking & Marketing
6. Fuel
7. Irrigation Fuel & Electricity
8. Repairs - Machine
9. Repairs - Buildings
10. Utilities & Miscellaneous Expenses
11. Custom Work & Specialized Labour
12. Operating Interest Paid
13. Paid Labour & Benefits
14. Unpaid Labour
1. Cash/Share Rent & Land Lease
2. Taxes, Water Rates, Lic. & Insurance
3. Equipment & Building a) Depreciation
4. Paid Capital Interest
GROSS RETURN
VARIABLE COSTS
TOTAL CAPITAL COSTS
(D) CASH COSTS (B+C-B14-C3)
(E) TOTAL PRODUCTION COSTS (B+C)
(F) GROSS MARGIN (A-D)
RETURN TO UNPAID LABOUR(A-E+B14)
RETURN TO INVESTMENT (A-E+C4)
RETURN TO EQUITY (A-E)
MANAGEMENT
Yield Per Acre (Bushel)
Expected Market Price Per Bushel
(A)
(B)
(C)
Total $ $/Acre $/Bushel
Rates: 76N 27P 24K 6S
5. Additional Revenue from Straw / Aftermath Grazing
TOTAL
Irr. Machinery
Machinery
Buildings
Land
INVESTMENT
2008 Crops Enterprise Analysis
Own Dryland Spring Wheat
Acres Cropped: 212.07
