I need help with this assignment. My son is taking this class on-line and is failing. (He should have never done an on-line class. The tutor he had at NECC has not been able to help him. If you could help me answer these questions then I can teach him. I am willing to pay well for your services. Contact me at dfrahm@Hotmail.com and we can arrange help through the rest of the class if you are interested. I appreciate it.

CROP ENTERPRISE BUDGETS The purposes of this exercise are: to become familiar with the concepts and organization of a crop enterprise budget to estimate the costs and returns for two common crops to learn how to search for a budget for a nontraditional crop Fairview Acres intends to plant 600 acres of corn and 600 acres of soybeans this year. Your assignment is to create an enterprise budget for 1 acre of corn and 1 acre of soybeans for one year, using the blank forms at the end of the lab, and the information provided below. Choose one of the two types of corn and one of the two types of soybeans. Corn following soybeans, conventional tillage Spring machinery: Corn following soybeans low tillage Conventional soybeans (following corn) NH3 applicator (N) NH3 applicator (N) Sprayer No-till planter Chisel plow Tandem disk Field cultivator Herbicide tolerant soybeans (following corn), no-till Tandem disk Field cultivator Sprayer Planter Cultivator No-till drill Sprayer (twice) Sprayer Planter Cultivator Seed Fertilizer Anhydrous ammonia (NH3) Phosphate (1846-0) Potash (0-0-60) Lime Herbicides Bicep II Magnum Balance PRO Roundup Authority Combine Combine Combine Combine Dry (1 gal.LP gas per 8 bu.@$1.50/gal) Haul to market ($.05 per bushel) Fall machinery: Cultivator Dry (1 gal.LP gas per 8 bu.@$1.50/gal) Haul to market ($.05 per bushel) No drying No drying Haul to market ($.05 per bushel) Haul to market ($.05 per bushel) 1 bag per 3 acres 1 bag per 3 acres 1.2 bags per acre 1.4 bags per acre 100 lb./acre 120 lb./acre None none 120 lb./acre 120 lb./acre 80 lbs./acre 80 lbs./acre 75 lb./acre 1/3 ton / acre/ year 75 lb./acre 1/3 ton /acre/year 120 lbs./acre 1/3 ton /acre/year 120 lbs./acre 1/3 ton /acre/ year 5 pints / acre 3 oz. / acre 1.75 pints / acre 10-1 3.5 pints / acre .3 lb. / acre Distinct Treflan HFP Cobra Miscellaneous costs .375 lb. / acre 2 pints / acre .10 gal. / acre $5 per acre $5 per acre 10-2 $5 per acre $5 per acre 1. Gross revenue: Yield: This summer the weather has been rather dry, but they hope to average 168 bushels of corn per acre and 55 bushels of soybeans per acre. Price: Check the Heartland Co-op Elevator web site at www.heartlandcoop.com/ .Use the price quotes for O/N 2006 (October-November delivery) for corn and soybeans. Selling price at harvest: Corn $___________/bushel Soybeans $___________/bushel USDA Payments The USDA will pay them a direct payment of $22.50 per acre on both crops. Besides this, the USDA will pay them a loan deficiency payment equal to the difference between their selling price and the USDA loan rate of $1.85 per bushel for corn or $4.95 per bushel for soybeans. If their selling price is higher than the USDA loan rate, there is no loan deficiency payment. Estimated loan deficiency payment: Corn $_________/bushel Soybeans $_________/bushel 2. Machinery operating costs: Use the variable costs estimates handed out in class. Note--fixed machinery costs will come later. 3. Supplies: Use the information in the table on page 1 and the following price list to estimate costs for seed, fertilizer and herbicide. Prices for Supplies: Seed corn: $105 per bag Conventional soybean seed: Herbicide tolerant soybean seed: Anhydrous ammonia: 18-46-0: 0-0-60: Lime $18 per bag $27 per bag $400 per ton ($0.20 per pound) $360 per ton ($0.18 per pound) $240 per ton ($0.12 per pound $15 per ton Bicep II Magnum herbicide: $48 per gallon* Balance herbicide $6.70 per oz. Roundup herbicide $36 per gallon* Authority herbicide $50 per pound Distinct herbicide $42 per pound Treflan HFP herbicide $30 per gallon* Cobra herbicide $140 per gallon *Note: There are 8 pints in a gallon. 4. Interest: Interest is charged on the total cost of spring machinery operating, supplies, and miscellaneous at 7% per year for 8 months. 10-3 5. Machinery ownership (fixed) costs: Assume Fairview Acres owns a line of machinery with a current value of $190,000. Calculate the following ownership costs (show your work): a. depreciation (assume 10% of current value): $__________ b. interest (6% of current value): $__________ c. insurance, housing (1% of current value): $__________ d. total machinery ownership costs per year: $__________ e. fixed cost per acre, for 1,200 total acres of corn and soybeans: $__________ (enter on your budgets) 6. Labor: Spring: Corn Soybeans Corn: For conventional tillage, 600 acres requires 2 people working 12 hours per day each for 22 days. Low till requires 2 persons working 12 hours per day for only 16 days. _______ hrs Soybeans: Conventional soybeans on 600 acres requires 2 people working 12 hours per day each for 17 days. Herbicide tolerant no-till soybeans require only 2 people, working 12 hours per day for 14 days. _______ hrs Fall: Corn: Harvest operations for 600 acres require 3 persons, each working 10 hours per day for 25 days. _______ hrs Soybeans: Harvest operations for 600 acres require 2 persons for 10 hours per day, for 18 days. _______ hrs Annual: crop. _______ hrs Add 200 hours for non-field work time, for each _______ hrs Find the hours needed for all the acres. total _______ hr total_______ hr Find the hours needed per acre. hr/acre _______ hr/acre_______ Value labor at $9.00 per hour. Enter your values in the budgets. $______/acre $______/acre 7. Land Cash rent for their land is $145 per acre this year, for either crop. Enter this in your 10-4 budgets. 10-5 CROP ENTERPRISE BUDGET A. Crop _______________________________________________ Budgeting Unit _________________ B. Gross Revenue $/acre Yield ____________ Price _______________ USDA direct payment USDA loan deficiency payment Total C. D. _________ _________ _________ _________ Machinery Operating Costsspring (fuel, oil, repairs). _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ Supplies Quantity Price Seed Fertilizer (NH3) Fertilizer(18-46-0) Fertilizer (0-0-60) Lime Herbicide Herbicide Miscellaneous E. F. ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ Interest on preharvest variable costs: Subtotal of preharvest machinery operating and supplies cost $___________ x ______ % x ______ mo./12 ________ Machinery Operating-harvest (fuel, oil, repairs). Combine Haul Dry _____bu. @ $_____ _____gal @ $_____ G. Machinery ownership costs (fixed) H. Labor: Hours ________ x wage value ________ = I. Land: Land rent ________ J. Total Costs ________ (Fixed) ________ ________ ________ ________ ________ ________ (Variable) ________ (Total) Show your work below. K. Gross margin per acre: L. Profit per acre: ________ M. ________ Total cost per bushel: 10-6 CROP ENTERPRISE BUDGET A. Crop _______________________________________________ Budgeting Unit _________________ B. Gross Revenue $/acre Yield ____________ Price _______________ USDA direct payment USDA loan deficiency payment Total C. D. E. F. _________ _________ _________ _________ Machinery Operating Costsspring (fuel, oil, repairs). _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ Supplies Quantity Price Seed Fertilizer(18-46-0) Fertilizer (0-0-60) Lime Herbicide Herbicide Miscellaneous ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ Interest on preharvest variable costs: Subtotal of preharvest machinery operating and supplies cost $___________ x ______ % x ______ mo./12 ________ Machinery Operating-harvest (fuel, oil, repairs). Combine Haul Dry _____bu. @ $_____ _____gal @ $_____ . Machinery ownership costs (fixed) ________ ________ ________ ________ H. Labor: Hours ________ x wage value ________ = I. Land: Land rent ________ J. Total Costs ________ (Fixed) ________ ________ (Variable) ________ (Total) Show your work below. K. Gross margin per acre: L. Profit per acre: ________ M. ________ Total cost per bushel: 10-7 ANALYSIS 1. Which crop looks most profitable this year? _________________________ 2. What is the break-even selling price needed to cover total costs? Remember to subtract the USDA direct payment first. corn _________________________ soybeans 3. _________________________ What is the breakeven selling price needed to cover variable costs, only? Remember to subtract the USDA direct payment first. corn _________________________ soybeans ________________________ 4. Explain why the Fairview Farm would probably go ahead and plant corn and soybeans even if the expected market price was below their breakeven selling price to cover total costs per bushel, but above the breakeven selling price to cover variable costs. Do fixed costs need be taken into account in the short run? 10-8