Economics and Competitivenessdepartment/deptdocs.nsf/all/econ... · The AgriProfit$ Business Analysis and Research Program provides a provincial overview of crop costs and returns

Economics and Competitiveness

Cost and Return Profiles for Selected 2007 Crops

Brown Soil Zone

Economics & C titi

TABLE OF CONTENTS

2007 Brown Soil Zone OVERVIEW .......................................................................................................1

CROPS Spring Wheat ..........................................................................................2 Durum Wheat ..........................................................................................6 Malt Barley ..............................................................................................9 Roundup Ready Canola..........................................................................12 Field Peas ...............................................................................................15

FORAGES Alfalfa Grass Hay ....................................................................................18 Greenfeed ...............................................................................................21

OTHER Summer fallow ........................................................................................24

DEFINITIONS AND ALLOCATIONS..................................................................27

OVERVIEW 2007 Brown Soil Zone

The AgriProfit$ Business Analysis and Research Program provides a provincial overview of crop costs and returns. The Economics Unit annually collects cost of production information from producers and compiles regional benchmarks. Producers who participate are critical to providing a financial representation of the cropping industry. Benchmarks have two levels of analysis, the group average and the top third average. The top third averages are based on the top one-third of the fields that have the highest return to equity. Fields are also analyzed by Owned land versus Rented land, as this too provides insight into differences in management. Benchmarks allow for comparison of individual costs and returns to other producers in a similar production area. Benchmarks should not replace individual cropping and financial records. Strategic planning is more effective when individual costs are used. Managing costs is one of the most significant strategies to ensure profitability in a mature commodity market. The top map shows the Brown Soil Zone in Alberta. Please note that farms highlighted within these zones may contain characteristics of neighbouring soil zones. However, this is the grouping method used for this study. The map on the bottom highlights locations of the 2007 participants. Questions: Karla Bergstrom Grains & Oilseed Economist, Economics Unit 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, Nabi Chaudhary, Lorraine Kohlman, Shukun Guan, Guangzhi Liu, Interviewers and Participants

BlackBrownDark BrownGrey WoodedIrrigatedPeace

eMapGIS 2007(c)

2007 Crop Participants

1

mailto:[email protected]

http://www.agriculture.gov.ab.ca/

1. Crop Sales - Imputed Value of Production2. Crop Insurance Receipts3. Miscellaneous Receipts4. Government Program

1. Seed & Seed Cleaning2. Fertilizer3. Chemicals4. Hail / Crop Insurance & Program Premiums5. Trucking & Marketing6. Fuel7. Irrigation Fuel & Electricity8. Repairs - Machine9. Repairs - Buildings

10. Utilities & Miscellaneous Expenses11. Custom Work & Specialized Labour12. Operating Interest Paid13. Paid Labour & Benefits14. Unpaid Labour

1. Cash/Share Rent & Land Lease2. Taxes, Water Rates, Lic. & Insurance3. 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)

MANAGEMENTYield Per Acre (Bushel)Expected Market Price Per Bushel

(A)

(B)

(C)

$/Acre $/Acre

5. Additional Revenue from Straw / Aftermath Grazing

TOTALIrr. Mach.MachineryBuildingsLand

INVESTMENT

2007 Crops Enterprise Analysis

All Dryland Spring WheatAcres Cropped:

Enterprises:

193.6210.806.93.42.00

236.85.00

5.66.74.00

9.3222.1515.249.642.21

14.90.00

10.43.32

11.354.34.07

6.929.85

7.857.63

13.379.823.23

11.83.00

11.40.14

9.893.59.12

1.4514.07

8.355.02

18.11

15.79

8.684.73

14.99

8.41

75.1056.9862.9247.13

140.35125.36119.70111.29

29.618.00

211.76 243.26

94.39116.73

47.90136.66164.63

102.9137.58

946.86 669.75

705.2887.28

154.29.00

472.3973.88

123.48.00

131.96

.78.63 b) Lease Payments

7.7125.10

Group AVG Top 1/3 AVG

100.48 153.1421 7

2






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)

Total $ $/Acre $/Bushel

Rates: 42N 15P 6S


TOTALIrr. MachineryMachineryBuildingsLand

INVESTMENT


All Dryland Spring Wheat

Acres Cropped: 100.48

Enterprises: 21

19,453.991,084.91

696.3141.78

.00

193.6210.80

6.93.42.00

936.692,225.061,530.90

968.67222.01

1,496.69.00

1,048.1432.36

1,140.14435.65

6.69695.76989.95

9.3222.1515.24

9.642.21

14.90.00

10.43.32

11.354.34.07

6.929.85

838.62504.74

1,819.87

1,586.04

8.355.02

18.11

15.79

7,545.485,725.616,321.704,735.66

75.1056.9862.9247.13

2.992.272.511.88

25.107.71

21,277.00 211.76 8.44

7.71

4.65116.7311,728.70

4,812.6313,731.5216,541.34 6.56

5.45136.6647.90 1.91

95,136.65 946.86

6.6 %

(32.13 hours)(100.37 hours)

70,864.298,769.82

15,502.54.00

705.2887.28

154.29.00

164.63


3






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 41N 15P 5S



INVESTMENT


Owned Dryland Spring Wheat


Enterprises: 17

18,452.05922.15664.3132.19

.00

200.8210.04

7.23.35.00

843.212,118.601,416.35

846.89230.79

1,391.30.00

1,098.2931.93

1,123.45482.86

5.16636.73929.79

9.1823.0615.41

9.222.51

15.14.00

11.95.35

12.235.26.06

6.9310.12

.00578.33

1,683.74

1,920.70

.006.29

18.32

20.90

7,267.835,584.106,575.004,654.31

79.1060.7771.5650.66

3.052.342.761.95

25.967.73

20,070.70 218.44 8.41

7.73

4.68121.4111,155.35

4,261.0512,802.8615,416.39 6.46

5.37139.3446.38 1.79

109,814.40 1,195.16

6.0 %

(32.98 hours)(94.04 hours)

87,538.247,766.38

14,509.78.00

952.7284.53

157.92.00

167.78


4






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 45N 15P 11S



INVESTMENT


Rented Dryland Spring Wheat


Enterprises: 4

23,712.241,776.67

832.3382.52

.00

173.0812.97

6.08.60.00

1,334.002,677.502,017.701,486.24

184.691,944.62

.00835.0334.18

1,211.06235.0313.21

946.601,245.61

9.7419.5414.7310.85

1.3514.19

.006.10.25

8.841.72.10

6.919.09

4,402.73191.97

2,398.44

163.73

32.141.40

17.51

1.20

8,725.476,327.025,245.145,081.41

63.6946.1838.2937.09

2.822.041.691.64

22.627.65

26,403.75 192.73 8.52

7.65

4.57103.4014,165.47

7,156.8717,678.2921,322.34 6.88

5.70129.0452.24 2.31

32,756.22 239.10

16.0 %

(28.53 hours)(127.27 hours)

.0013,034.4219,721.80

.00

.0095.14

143.95.00

155.64


5






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)

$/Acre $/Acre



INVESTMENT


All Dryland DurumAcres Cropped:

Enterprises:

357.10.00

5.48.57.00

418.08.00

6.63.52.00

12.9510.9111.9910.644.24

12.57.00

12.99.17

10.144.23.71

3.1313.33

12.9311.9614.6110.18

3.8012.97

.0015.00

.2412.32

6.00.08

2.4214.00

14.964.40

14.68

8.66

.005.75

16.06

12.37

237.14222.46217.79209.13

303.30287.24285.62273.25

36.5911.43

363.15 425.23

116.51107.99

46.04126.01154.02

121.9335.48

622.08 883.92

428.1664.59

129.33.00

676.6869.40

137.84.00

151.98

1.303.33 b) Lease Payments

11.4431.21


95.58 78.2512 4

6






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 29N 9P



INVESTMENT


All Dryland Durum


Enterprises: 12

34,132.95.00

523.7154.39

.00

357.10.00

5.48.57.00

1,237.331,043.111,145.571,017.19

404.851,201.60

.001,241.77

15.91969.17404.6967.71

298.761,273.93

12.9510.9111.9910.64

4.2412.57

.0012.99

.1710.14

4.23.71

3.1313.33

1,430.00420.97

1,403.56

827.64

14.964.40

14.68

8.66

22,666.6721,263.1020,816.8119,989.17

237.14222.46217.79209.13

7.607.136.986.70

31.2111.44

34,711.05 363.15 11.63

11.44

3.46107.9910,321.60

4,400.2712,044.3814,721.88 4.93

4.04126.0146.04 1.47

59,460.93 622.08

35.0 %

(29.92 hours)(129.18 hours)

40,925.006,174.03

12,361.90.00

428.1664.59

129.33.00

154.02


7






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 32N 10P



INVESTMENT


Owned Dryland Durum


Enterprises: 10

26,951.94.00

496.6132.05

.00

376.95.00

6.95.45.00

895.601,011.73

866.27691.09285.34954.63

.001,157.74

19.09938.37485.62

5.13195.69998.85

12.5314.1512.12

9.673.99

13.35.00

16.19.27

13.126.79.07

2.7413.97

.00416.76

1,173.53

935.04

.005.83

16.41

13.08

18,517.1517,343.6217,279.8116,344.77

258.98242.57241.68228.60

7.807.307.276.88

33.2211.35

27,480.60 384.34 11.57

11.35

3.58118.958,505.15

2,630.688,963.44

11,135.83 4.693.77125.36

36.79 1.11

64,160.96 897.36

26.9 %

(24.46 hours)(100.94 hours)

49,110.004,855.66

10,195.30.00

686.8567.91

142.59.00

155.75


8






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)

$/Acre $/Acre



INVESTMENT


All Dryland Malt BarleyAcres Cropped:

Enterprises:

144.2745.408.48.00.00

210.3545.40

8.48.00.00

12.0038.0020.0011.49

.0019.50

.006.17.57

12.203.95.00

15.912.46

12.0038.0020.0011.40

.0019.50

.006.17.57

12.203.95.00

15.912.46

35.95.70

22.87

5.21

42.00.00

22.87

1.80

16.49(6.38)(3.63)(8.84)

80.7257.8557.1955.39

41.085.12

198.15 264.23

142.17142.26

64.74181.66206.99

183.5166.68

454.29 312.63

141.67114.12198.51

.00

.00114.12198.51

.00

208.85


5.1228.18


75.00 68.7512 4

9






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 60N 15P 6S



INVESTMENT


All Dryland Malt Barley


Enterprises: 12

10,820.273,405.00

636.35.00.00

144.2745.40

8.48.00.00

900.002,850.001,500.00

861.75.00

1,462.71.00

462.4943.09

915.37296.25

.001,193.20

184.41

12.0038.0020.0011.49

.0019.50

.006.17.57

12.203.95.00

15.912.46

2,696.5352.38

1,715.41

390.91

35.95.70

22.87

5.21

1,236.95(478.46)(271.96)(662.87)

16.49(6.38)(3.63)(8.84)

.59(.23)(.13)(.31)

28.185.12

14,861.62 198.15 7.03

5.12

5.05142.2610,669.27

4,855.2213,624.6715,524.49 7.35

6.45181.6664.74 2.30

34,072.05 454.29

-.8 %

(35.96 hours)(18.44 hours)

10,625.008,558.67

14,888.39.00

141.67114.12198.51

.00

206.99


10






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 60N 15P 6S



INVESTMENT


Rented Dryland Malt Barley


Enterprises: 10

11,269.123,700.10

691.50.00.00

138.2745.40

8.48.00.00

978.003,097.001,630.00

935.67.00

1,589.48.00

502.5746.82

994.70321.93

.001,296.61

200.39

12.0038.0020.0011.48

.0019.50

.006.17.57

12.203.95.00

15.912.46

3,235.83.00

1,864.08

146.95

39.70.00

22.87

1.80

885.16(978.92)

(1,032.36)(1,179.31)

10.86(12.01)(12.67)(14.47)

.40(.44)(.47)(.54)

27.015.12

15,660.72 192.16 7.12

5.12

5.27142.2511,593.17

5,246.8614,775.5616,840.03 7.65

6.71181.3064.38 2.38

25,479.13 312.63

-4.1 %

(39.07 hours)(20.04 hours)

.009,300.42

16,178.71.00

.00114.12198.51

.00

206.63


11






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)

$/Acre $/Acre



INVESTMENT


All Dryland Roundup Ready CanolaAcres Cropped:

Enterprises:

200.16.00

8.48.00.00

337.37.00

8.48.00.00

25.0045.0023.0023.39

.0019.50

.006.17.57

12.203.95.00

15.912.46

25.0045.0023.0021.24

.0019.50

.006.17.57

12.203.95.00

15.912.46

17.284.54

22.87

23.98

42.00.00

22.87

1.80

(11.86)(34.73)(13.21)(37.19)

129.50106.63105.97104.17

34.789.70

208.65 345.85

175.01177.16

68.68220.51245.84

216.3566.68

1,234.42 312.63

921.79114.12198.51

.00

.00114.12198.51

.00

241.68


9.7020.64


89.50 55.006 2

12






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 60N 20P 15S



INVESTMENT


All Dryland Roundup Ready Canola


Enterprises: 6

17,914.61.00

759.38.00.00

200.16.00

8.48.00.00

2,237.504,027.502,058.502,093.84

.001,745.50

.00551.9151.42

1,092.34353.53

.001,423.88

220.06

25.0045.0023.0023.39

.0019.50

.006.17.57

12.203.95.00

15.912.46

1,546.29406.69

2,047.05

2,146.64

17.284.54

22.87

23.98

(1,061.55)(3,108.60)(1,182.03)(3,328.67)

(11.86)(34.73)(13.21)(37.19)

(.57)(1.68)(.64)

(1.80)

20.649.70

18,673.99 208.65 10.11

9.70

8.59177.1615,855.98

6,146.6719,735.5422,002.65 11.91

10.69220.5168.68 3.33

110,480.15 1,234.42

-1.1 %

(42.91 hours)(22.01 hours)

82,500.0010,213.3517,766.81

.00

921.79114.12198.51

.00

245.84


13






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 60N 20P 15S



INVESTMENT


Rented Dryland Roundup Ready Canola


Enterprises: 4

14,246.39.00

439.08.00.00

275.29.00

8.48.00.00

1,293.752,328.751,190.251,164.89

.001,009.27

.00319.1229.73

631.61204.41

.00823.31127.24

25.0045.0023.0022.51

.0019.50

.006.17.57

12.203.95.00

15.912.46

2,319.43.00

1,183.63

93.31

44.82.00

22.87

1.80

3,277.652,094.022,060.081,966.77

63.3440.4639.8138.01

2.231.431.401.34

28.389.70

14,685.47 283.78 10.00

9.70

6.21176.289,122.33

3,596.3811,407.8312,718.70 8.66

7.77220.4469.50 2.45

16,178.47 312.63

12.7 %

(24.81 hours)(12.72 hours)

.005,905.48

10,272.99.00

.00114.12198.51

.00

245.77


14






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)

$/Acre $/Acre



INVESTMENT


All Dryland PeasAcres Cropped:

Enterprises:

213.68.00

8.92.00.00

272.34.00

8.92.00.00

16.006.29

14.506.255.16

18.06.00

23.57.46

18.1211.73

.004.73

13.81

16.006.29

14.506.255.16

18.06.00

23.57.46

18.1211.73

.004.73

13.81

.006.34

18.61

17.46

.006.34

18.61

17.46

71.3952.7856.4238.96

130.05111.44115.0997.62

30.758.86

222.60 281.27

138.68138.68

44.96151.21183.64

151.2144.96

980.76 980.76

750.0058.70

172.05.00

750.0058.70

172.05.00

183.64


7.6827.82


105.67 70.006 2

15






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 12N 25P 10S



INVESTMENT


All Dryland Peas


Enterprises: 6

22,578.81.00

942.87.00.00

213.68.00

8.92.00.00

1,690.67664.64

1,532.17660.42545.20

1,908.05.00

2,490.8948.73

1,914.381,239.47

.00499.46

1,459.67

16.006.29

14.506.255.16

18.06.00

23.57.46

18.1211.73

.004.73

13.81

.00670.37

1,966.73

1,845.06

.006.34

18.61

17.46

7,543.305,576.575,961.964,116.90

71.3952.7856.4238.96

2.571.902.031.40

27.827.68

23,521.68 222.60 8.00

7.68

4.98138.6814,653.74

4,751.0415,978.3819,404.78 6.60

5.43151.2144.96 1.62

103,633.44 980.76

5.8 %

(62.43 hours)(145.97 hours)

79,250.006,203.10

18,180.34.00

750.0058.70

172.05.00

183.64


16






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 12N 25P 10S



INVESTMENT


Owned Dryland Peas


Enterprises: 6

22,578.81.00

942.87.00.00

213.68.00

8.92.00.00

1,690.67664.64

1,532.17660.42545.20

1,908.05.00

2,490.8948.73

1,914.381,239.47

.00499.46

1,459.67

16.006.29

14.506.255.16

18.06.00

23.57.46

18.1211.73

.004.73

13.81

.00670.37

1,966.73

1,845.06

.006.34

18.61

17.46

7,543.305,576.575,961.964,116.90

71.3952.7856.4238.96

2.571.902.031.40

27.827.68

23,521.68 222.60 8.00

7.68

4.98138.6814,653.74

4,751.0415,978.3819,404.78 6.60

5.43151.2144.96 1.62

103,633.44 980.76

5.8 %

(62.43 hours)(145.97 hours)

79,250.006,203.10

18,180.34.00

750.0058.70

172.05.00

183.64


17






GROSS RETURN

VARIABLE COSTS



MANAGEMENTYield Per Acre (Tonne)Expected Market Price Per Tonne

(A)

(B)

(C)

$/Acre $/Acre



INVESTMENT


All Dryland Alfalfa/Grass HayAcres Cropped:

Enterprises:

125.972.05.00.00

4.86

167.56.00.00.00.00

.0012.943.08.28.00

4.96.00

5.06.00

7.392.84.19

6.559.99

.00

.00

.00

.00

.004.51.00

5.15.00

10.51.00.00

11.608.83

5.082.27

16.56

.06

.002.72

14.67

.00

82.1665.6155.6855.62

133.06118.39109.56109.56

2.1777.16

132.88 167.56

40.6153.28

23.9850.7277.26

34.5017.39

949.37 1,306.16

750.8567.78

130.74.00

1,100.00111.9494.22

.00

58.00


76.621.64


41.10 21.6710 3

18






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)

Total $ $/Acre $/Tonne

Rates: 20N 10P



INVESTMENT


All Dryland Alfalfa/Grass Hay


Enterprises: 10

5,177.2584.34

.00

.00199.82

125.972.05.00.00

4.86

.00531.91126.6611.58

.00203.84

.00207.80

.00303.86116.91

7.68269.27410.47

.0012.94

3.08.28.00

4.96.00

5.06.00

7.392.84.19

6.559.99

208.9793.33

680.49

2.63

5.082.27

16.56

.06

3,376.972,696.492,288.652,286.02

82.1665.6155.6855.62

49.9839.9133.8733.83

1.6476.62

5,461.42 132.88 80.83

76.62

32.4153.282,189.98

985.422,084.443,175.40 47.00

30.8550.7223.98 14.58

39,019.28 949.37

5.9 %

(17.95 hours)(41.05 hours)

30,860.002,785.925,373.36

.00

750.8567.78

130.74.00

77.26


19






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates: 15N 7P



INVESTMENT


Owned Dryland Alfalfa/Grass Hay


Enterprises: 8

5,490.9546.98

.00

.0015.93

144.501.24.00.00.42

.00296.27

.006.45.00

181.66.00

193.61.00

328.4862.894.28

325.22362.07

.007.80.00.17.00

4.78.00

5.09.00

8.641.65.11

8.569.53

.00101.52600.65

1.47

.002.67

15.81

.04

4,052.023,451.383,090.773,089.31

106.6390.8381.3481.30

56.4748.1043.0843.06

1.8976.53

5,553.86 146.15 77.40

76.53

24.5446.341,760.92

703.631,501.842,464.55 34.35

20.9339.5218.52 9.81

46,234.21 1,216.69

6.7 %

(21.68 hours)(36.21 hours)

38,575.003,242.864,416.35

.00

1,015.1385.34

116.22.00

64.86


20






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)

$/Acre $/Acre



INVESTMENT


All Dryland GreenfeedAcres Cropped:

Enterprises:

79.83.62.00.00

6.47

67.401.64.00.00

17.13

1.10.00

1.206.01.00

18.06.00

6.01.00

8.01.00.06

12.0610.70

2.92.00.00

4.54.00

18.11.00

5.72.00

6.78.00.15

9.0010.86

.833.05

17.76

.02

.002.95

18.01

.05

30.5112.752.072.05

35.9517.94

7.137.08

1.0365.59

86.92 86.17

58.0863.21

21.6656.4184.87

50.2221.01

1,262.52 1,212.85

1,023.30117.79121.43

.00

987.1090.51

135.24.00

79.09


66.321.20


117.33 93.006 2

21






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates:



INVESTMENT


All Dryland Greenfeed


Enterprises: 6

9,367.2572.83

.00

.00758.83

79.83.62.00.00

6.47

129.33.00

141.00705.61

.002,119.51

.00705.04

.00939.36

.006.63

1,415.361,255.15

1.10.00

1.206.01.00

18.06.00

6.01.00

8.01.00.06

12.0610.70

97.65357.56

2,083.55

2.27

.833.05

17.76

.02

3,579.591,496.05

243.17240.90

30.5112.75

2.072.05

25.3410.59

1.721.71

1.2066.32

10,198.91 86.92 72.21

66.32

52.5163.217,416.99

2,541.036,619.329,958.01 70.50

46.8656.4121.66 17.99

148,135.51 1,262.52

.2 %

(94.36 hours)(125.51 hours)

120,066.6713,820.6714,248.17

.00

1,023.30117.79121.43

.00

84.87


22






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)


Rates:



INVESTMENT


Owned Dryland Greenfeed


Enterprises: 5

11,217.2961.18

.00

.00637.13

83.21.45.00.00

4.73

108.64.00.00

843.13.00

2,434.05.00

816.37.00

1,107.86.00

5.571,693.331,438.43

.81

.00

.006.25.00

18.06.00

6.06.00

8.22.00.04

12.5610.67

.00422.28

2,388.12

1.91

.003.13

17.72

.01

4,482.472,094.34

657.82655.91

33.2515.54

4.884.87

26.5112.38

3.893.88

1.2566.33

11,915.61 88.39 70.46

66.33

49.9562.678,447.38

2,812.317,433.14

11,259.69 66.5843.9555.14

20.86 16.63

176,623.22 1,310.26

.4 %

(112.89 hours)(143.84 hours)

144,080.0016,477.3516,065.87

.00

1,068.84122.24119.18

.00

83.53


23






GROSS RETURN

VARIABLE COSTS



MANAGEMENTYield Per Acre ()Expected Market Price Per

(A)

(B)

(C)

$/Acre $/Acre



INVESTMENT


All Dryland SummerfallowAcres Cropped:

Enterprises:

.00

.004.16.61.00

.00

.004.231.06.00

.00

.004.72.00

2.378.36.00

9.14.09

2.97.00.10

1.814.59

.00

.00

.00

.002.387.08.00

6.04.00

1.88.00.17.00

4.26

.003.92

18.57

5.54

.002.48

13.39

.73

(34.75)(53.32)(52.36)(57.90)

(15.47)(28.86)(32.38)(33.11)

.000.00

4.77 5.29

21.8134.14

28.5339.5162.67

20.7616.59

820.72 182.64

565.32116.61138.79

.00

.0080.57

102.07.00

38.40


0.00.00


515.00 622.004 1

24






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)

Total $ $/Acre $/

Rates:



INVESTMENT


All Dryland Summerfallow


Enterprises: 4

.00

.002,142.64

312.24.00

.00

.004.16.61.00

.00

.002,431.01

.001,221.264,304.34

.004,704.56

46.691,530.66

.0050.00

931.072,361.50

.00

.004.72.00

2.378.36.00

9.14.09

2.97.00.10

1.814.59

.002,020.189,562.92

2,852.10

.003.92

18.57

5.54

(17,894.64)(27,457.56)(26,966.96)(29,819.06)

(34.75)(53.32)(52.36)(57.90)

0.000.000.000.00

.000.00

2,454.88 4.77 0.00

0.00

0.0034.1417,581.10

14,692.8320,349.5232,273.93 0.00

0.0039.5128.53 0.00

422,668.27 820.72

-6.4 %

(70.45 hours)(239.22 hours)

291,137.5060,053.6171,477.16

.00

565.32116.61138.79

.00

62.67


25






GROSS RETURN

VARIABLE COSTS




(A)

(B)

(C)

Total $ $/Acre $/

Rates:



INVESTMENT


Owned Dryland Summerfallow


Enterprises: 3

.00

.001,980.73

195.56.00

.00

.004.13.41.00

.00

.003,241.35

.001,134.254,270.56

.005,020.41

62.261,651.74

.0031.31

1,241.432,266.37

.00

.006.76.00

2.378.91.00

10.47.13

3.45.00.07

2.594.73

.002,180.019,974.83

3,651.78

.004.55

20.81

7.62

(20,652.33)(30,627.16)(29,241.75)(32,893.53)

(43.09)(63.90)(61.01)(68.62)

0.000.000.000.00

.000.00

2,176.29 4.54 0.00

0.00

0.0039.4718,919.69

16,150.1422,828.6235,069.82 0.00

0.0047.6333.69 0.00

525,689.57 1,096.71

-5.6 %

(93.93 hours)(228.56 hours)

388,183.3363,365.6674,140.58

.00

809.84132.20154.67

.00

73.16


26

DEFINITIONS AND ALLOCATIONS I INCOME A Imputed Value of Production – total of estimated

yields/acre X estimated final prices B Crop Insurance Receipts – added regardless of

when payment is received C Miscellaneous Receipts – such as patronage

dividends or input rebates D Government Program Receipts – allocated to all

cropped acres equally E Straw/Aftermath Grazing Revenue – value of

straw + imputed value of grazing II EXPENSES A Crop Specific Inputs – allocated by producer to

each crop as documented on the survey form 1. Seed 2. Fertilizer 3. Chemical 4. Hail and Crop Insurance 5. Custom Work and Specialized Labour 6. Land Rent – cash rent or crop share (converted to a

cash basis) B Allocated Crop Inputs – allocation ratios based on

research from AAFRD 1. Irrigation to Dryland Ratio – allocated to crops at

a 3:1 ratio 2. Trucking and Marketing – allocated to specific

cropping acres by producer 3. Fuel – Summerfallow – allocation of 0.3:1

compared to crop acres; Sugar beets – allocation of 2.96:1 compared to other irrigated crop acres

4. Irrigation Fuel – allocation based on total pumping hours for each crop

5. Machinery Repairs – allocated equally to all acres except summerfallow (0.3:1) and special crops (as specified by producer)

6. Building Repairs – allocated to all acres equally except for special crops buildings

7. Operating Interest – interest paid on operating loans allocated equally

8. Paid Labour – based on allocations between crops as specified by producer

9. Unpaid and Operator Labour – operator - $10/hour, other unpaid labour - $7.50/hour

10. Land Taxes – allocated equally to all owned cropped acres

11. Water Rates – allocated equally to all owned irrigated acres

12. Water Rates – allocated equally to all owned irrigated acres

13. Equipment Depreciation – imputed at 8.5% for power equipment, 11% for non-power, based on current market value

14. Insurance and Licenses – allocated to all cropped acres equally

15. Building Depreciation – imputed at 5% on the current market value

16. Paid Capital Interest – allocated to all owned cropped acres equally except summerfallow (0.25:1)

III CAPITAL INVESTMENT A Land – producer estimate of bare land value for

both irrigated and dryland owned acreage B Buildings – allocated equally to all acreage except

special crops buildings (allocated to the crop) C Equipment

1. General Use – allocated to all acres equally, except summerfallow (0.3:1)

2. Crop Specific – allocated by producer to each crop based on percentage of use

3. Irrigation – allocated according to pumping hours as specified by producer

IV SUMMARY CALCULATION

A Gross Return = imputed value of production + crop insurance receipts + miscellaneous receipts + government program payments + straw/grazing revenue

B Variable Costs = seed + fertilizer + chemicals + crop insurance + trucking and marketing + fuel + machinery and building repairs + utilities + miscellaneous overhead + custom work + operating interest + paid and unpaid labour

C Total Capital Costs = land rent + land taxes + water rates + insurance + depreciation + paid capital interest

D Cash Costs = variable costs + capital costs – unpaid labour – depreciation

E Total Production Costs = variable costs + total capital costs

F Gross Margin (returns left to cover total capital costs and operator equity) = gross return – total cash costs

G Return to Unpaid Labour (funds remaining after all expenses have been paid except unpaid labour) = gross return – total production costs + unpaid labour

H Return to Investment (shows the operation’s ability to earn a return on its total assets) = gross return – total production costs + paid capital interest

I Return to Equity (amount remaining from operations used to provide a return to individual or shareholder equity) = gross return – total production costs

27

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Economics and Competitivenessdepartment/deptdocs.nsf/all/econ... · The AgriProfit$ Business Analysis and Research Program provides a provincial overview of crop costs and returns