Question

1 Approved Answer

Posted on Sep 10, 2024

Crop Enterprise Budgets Fairview Acres intends to plant 800 acres of soybeans, followed by a crop of corn on the same 800 acres all in

image text in transcribed

Crop Enterprise Budgets Fairview Acres intends to plant 800 acres of soybeans, followed by a crop of corn on the same 800 acres all in the same year. Create an enterprise budget for one acre of corn and an enterprise budget for one acre of soybeans for one year. Use the information provided below and the blank forms attached to this assignment. Spring machinery: Price per Unit See variable costs per acre on page 2. Corn following soybeans, conventional tillage Apply p&k fertilizer NH3 applicator (N) Tandem disk Field cultivator Planter Sprayer Sprayer Combine Haul (on farm) Haul (to market) Dry (1 gallon of LP gas per 8 bushels) 32,000 kernels / acre Herbicide tolerant Soybeans, following corn Apply P&K fertilizer Chisel plow Tandem disk Field cultivator Sprayer Planter Sprayer Combine Haul (on farm) Haul (to market) No drying Fall machinery: See page 2 Drying (LP gas) $1.60 per gal. $3.50/1000 K. $70 per bag 1.0 bag per acre $.50 per lb. 150 lbs./acre None Seed-corn Seed--soybeans Fertilizer Nitrogen (Anhydrous Ammonia) (N) Phosphate (P) Potash (K) Lime Herbicides Bicep ll Magnum Balance PRO Roundup Authority $.46 per ib. $.50 per lb. $15 per ton 70 lbs./acre 55 lb./acre 1/3 ton / acre/year 40 lbs./acre 75 lbs./acre 1/3 ton /acre/year 5 pints / acre* 3 oz. / acre $45 per gal." $6.00 per oz. $40 per gal." $60 per lb. 1.5 pints / acre .3 lb./ acre Crop Insurance Miscellaneous costs *There are 8 pints in a gallon. $25 per acre $15 per acre $18 per acre $15 per acre Gross Revenue Variables Corn Expected Yield 176 bushels per acre Expected Price $5.50 per bushel Soybeans 51 bushels per acre $ 12.50 per bushel Supplies Use the prices and application rates given on page 1 to calculate the cost per acre for all seed, fertilizer, herbicides, insecticides, crop insurance and miscellaneous items. Interest Calculate interest on the total cost of spring machinery operating, supplies, and miscellaneous at 5% per year for 8 months. Drying Costs It takes one gallon of LP gas to dry 8 bushels of corn. LP gas costs $1.60 per gallon. Corn Labor Needed Soybeans Spring 800 acres requires 2 people working 12 hours per day for 20 days Fall Harvest operations for 800 acres require 2 persons for 10 hours per day for 21 days. Non-field work time Total labor hours needed Labor hours needed per acre (800 acres of soybeans and 800 acres of corn) 800 acres requires 2 people working 12 hours per day for 25 days Harvest operations for 800 acres require 3 persons, each working 10 hours per day for 30 days 300 Total labor cost using $15 per hour Land Cost Fairview Acres pays $275 per acre cash rent for each crop planted on this 800-acre farm. A. ENTERPRISE NAME Yield bushel/acre B Gross Revenue Price/bushel Fixed S/acre Variable $/acre C Machinery Operating costs - Spring Expenses (see page 2) Apply P&K Fertilizer Chisel Plow Tandem Disk Field Cultivator Sprayer Sprayer Planter Unit of Price per Supplies Quantity Measure Unit Seed bags $70.00 Phosphate (P) $0.46 Potash (K) $0.50 Lime 0.33333 ton $15.00 Roundup 1.5 $5.00 Authority 0.3 $60.00 Crop Insurance Miscellaneous D. 40 75 E. Interest on pre harvest machinery and supplies Rate Months F. Machinery Operating cost-Harvest Expenses Combine Soybeans Rate per Bushel Quantity Hauling on farm Haul to market Hours Rate/Hour G. Labor H. Land I. Machinery Ownership J. Total Costs K. Gross Margin per Acre (Gross Revenue - Variable Costs) Crop Enterprise Budgets Fairview Acres intends to plant 800 acres of soybeans, followed by a crop of corn on the same 800 acres all in the same year. Create an enterprise budget for one acre of corn and an enterprise budget for one acre of soybeans for one year. Use the information provided below and the blank forms attached to this assignment. Spring machinery: Price per Unit See variable costs per acre on page 2. Corn following soybeans, conventional tillage Apply p&k fertilizer NH3 applicator (N) Tandem disk Field cultivator Planter Sprayer Sprayer Combine Haul (on farm) Haul (to market) Dry (1 gallon of LP gas per 8 bushels) 32,000 kernels / acre Herbicide tolerant Soybeans, following corn Apply P&K fertilizer Chisel plow Tandem disk Field cultivator Sprayer Planter Sprayer Combine Haul (on farm) Haul (to market) No drying Fall machinery: See page 2 Drying (LP gas) $1.60 per gal. $3.50/1000 K. $70 per bag 1.0 bag per acre $.50 per lb. 150 lbs./acre None Seed-corn Seed--soybeans Fertilizer Nitrogen (Anhydrous Ammonia) (N) Phosphate (P) Potash (K) Lime Herbicides Bicep ll Magnum Balance PRO Roundup Authority $.46 per ib. $.50 per lb. $15 per ton 70 lbs./acre 55 lb./acre 1/3 ton / acre/year 40 lbs./acre 75 lbs./acre 1/3 ton /acre/year 5 pints / acre* 3 oz. / acre $45 per gal." $6.00 per oz. $40 per gal." $60 per lb. 1.5 pints / acre .3 lb./ acre Crop Insurance Miscellaneous costs *There are 8 pints in a gallon. $25 per acre $15 per acre $18 per acre $15 per acre Gross Revenue Variables Corn Expected Yield 176 bushels per acre Expected Price $5.50 per bushel Soybeans 51 bushels per acre $ 12.50 per bushel Supplies Use the prices and application rates given on page 1 to calculate the cost per acre for all seed, fertilizer, herbicides, insecticides, crop insurance and miscellaneous items. Interest Calculate interest on the total cost of spring machinery operating, supplies, and miscellaneous at 5% per year for 8 months. Drying Costs It takes one gallon of LP gas to dry 8 bushels of corn. LP gas costs $1.60 per gallon. Corn Labor Needed Soybeans Spring 800 acres requires 2 people working 12 hours per day for 20 days Fall Harvest operations for 800 acres require 2 persons for 10 hours per day for 21 days. Non-field work time Total labor hours needed Labor hours needed per acre (800 acres of soybeans and 800 acres of corn) 800 acres requires 2 people working 12 hours per day for 25 days Harvest operations for 800 acres require 3 persons, each working 10 hours per day for 30 days 300 Total labor cost using $15 per hour Land Cost Fairview Acres pays $275 per acre cash rent for each crop planted on this 800-acre farm. A. ENTERPRISE NAME Yield bushel/acre B Gross Revenue Price/bushel Fixed S/acre Variable $/acre C Machinery Operating costs - Spring Expenses (see page 2) Apply P&K Fertilizer Chisel Plow Tandem Disk Field Cultivator Sprayer Sprayer Planter Unit of Price per Supplies Quantity Measure Unit Seed bags $70.00 Phosphate (P) $0.46 Potash (K) $0.50 Lime 0.33333 ton $15.00 Roundup 1.5 $5.00 Authority 0.3 $60.00 Crop Insurance Miscellaneous D. 40 75 E. Interest on pre harvest machinery and supplies Rate Months F. Machinery Operating cost-Harvest Expenses Combine Soybeans Rate per Bushel Quantity Hauling on farm Haul to market Hours Rate/Hour G. Labor H. Land I. Machinery Ownership J. Total Costs K. Gross Margin per Acre (Gross Revenue - Variable Costs)