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Economics and Competitiveness - Alberta department/ · PDF file 2019. 10. 25. · Economics and Competitiveness 2008 . Cost and Return Benchmarks for Crops and Forages . Black Soil

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  • 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

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