Requirements are only a page
Corn example Currently have 10 acres of corn for silage. What if we want to make it a corn maize? Do this as a partial budgeting exercise. I have attached budgets for sweet corn and corn silage. You will have to decide other costs that they might have and what the revenue for the corn maze would be. You need to write a one page paper saying what you would do. Make the assumptions in your numbers clear.
Modify Colored Columns Your Value Value/cost per acre $862.40 $0.00 $862.40 Base Value $862.40 $0.00 $862.40 $5.88 $3.73 $3.34 $3.64 $5.28 $45.00 $2.94 $5.88 $3.73 $3.34 $3.64 $5.28 $45.00 $2.94 Utah State University Extension Economics Costs and Returns per acre from growing corn for silage, 2006 Cache County Quantity Price/cost Receipts per acre Unit per unit Corn silage 28.0 tons $30.80 Residue AUM $0.00 Subtotal Operating costs Land preparation Plowing 1 acre $5.88 Discing 1 acre $3.73 Land plane 1 acre $3.34 Roller harrow 1 acre $3.64 Planting 1 acre $5.28 Seed 0.5 bags $90.00 Cultivation 1 acre $2.94 Fertilization Nitrogen (34-0-0) 350 pounds $0.18 Phosphate pounds $0.18 Custom application 1 acre $7.82 Manure 3 tons $5.00 Spread manure 1 acre $6.00 Pesticides/herbicides Dual Il Magnum 1 pint $15.10 Thimet 1.36 pounds $2.66 Custom application 1 acre $7.82 Irrigation (wheel line) 5 irrigations Labor 1.67 hours $10.00 Water assessment 1 share $10.00 Repairs/maintenance 1 acre $2.30 Pumping 20 $0.00 Harvesting Chopping 1 acre $6.79 Packing and pushing 1 acre $5.73 Trucking 2.2. loads/acre $17.31 Crop insurance (75% Yield, 100% Price) 1 acre $11.58 Interest on operating capital 7.61% Subtotal $62.48 $0.00 $7.82 $15.00 $6.00 $62.48 $0.00 $7.82 $15.00 $6.00 $15.10 $3.61 $7.82 $15.10 $3.61 $7.82 8 $16.67 $10.00 $2.30 $0.00 $16.67 $10.00 $2.30 $0.00 acre inch $6.79 $5.73 $38.43 $11.58 $5.39 $284.54 $6.79 $5.73 $38.43 $11.58 $5.39 $284.54 Ownership costs (excludes cost of land) Farm insurance Machinery ownership costs Irrigation equipment Total costs 1 1 acre acre acre $2.00 $91.96 $8.25 $102.21 $2.00 $91.96 $8.25 $386.75 $102.21 $2.00 $91.96 $8.25 $386.75 Net returns to owner for unpaid labor, management, equity and risk Above operating costs Above total listed costs $577.86 $475.65 $577.86 $475.65 Breakeven Table - Corn Silage Net returns per acre above operating costs Yield (Ton/Ac) 26.50 27.00 27.50 28.00 28.50 29.00 29.50 $20.80 $266.66 $277.06 $287.46 $297.86 $308.26 $318.66 $329.06 Selling Price ($/ton) $25.80 $30.80 $35.80 $399.16 $531.66 $664.16 $412.06 $547.06 $682.06 $424.96 $562.46 $699.96 $437.86 $577.86 $717.86 $450.76 $593.26 $735.76 $463.66 $608.66 $753.66 $476.56 $624.06 $771.56 $40.80 $796.66 $817.06 $837.46 $857.86 $878.26 $898.66 $919.06 Assumptions 1. Com planted in early May and harvested in late September. 2. Interest computed on land preparation and planting costs for 6 months and cultivation, ferlilization, herbicide and irrigation costs for 3 months. 3. Machinery operating costs include: fuel, oil, repairs and labor. 4. Machinery ownership costs are allocated based on equipment used for each crop. 5. Machinery ownership costs include depreciation, interest, insurance, and housing. Sweet Corn Budget Estimated Costs & Returns Per Acre Basis Item Unit Quantity Price Total Your Farm Yield/ Receipts: Farm Sales Other Sales Total Receipts Doz Doz 500 500 1,000 2.50 2.50 1,250.00 1,250.00 2,500.00 Purchases: Nitrogen Phosphate Potash Herbicide, pre-ei gent Herbicide, post-emergent Insecticide (Asana) Seed Water Assessment Boxes, Bags, etc. Total Purchases Lbs Lbs Lbs Lbs Lbs Lbs Lbs Shares Each 150 0.32 75 0.25 50 0.26 2 12.14 3 1.60 0.08 246.32 12 7.00 10 2.00 250 1.25 48.00 18.75 13.00 24.28 4.80 19.71 84.00 20.00 312.50 545.04 Operations: Time Machine Costs Fixed Operating Hired Labor Plow Disk and Harrow Fertilizer Application Plant Furrow and Cultivate Cultivate and Sidedress Fertilizer Herbicide Application Insecticide Application Irrigation Picking Hauling (on farm) Grade, sort, etc. Icing Advertising Hauling to Market Operating Interest Total Operations Costs 1 16.22 9.42 2 11.15 3.35 1 5.42 1.05 1 22.57 4.43 3 11.34 3.61 1 10.49 3.21 2 2.21 0.81 4 2.21 0.81 8 9 hours @ $6.50 per hour 1 @ $0.10 /doz 1 1 300 miles @ $0.27 /mile 1,154.26 @ 10% for 6 months 3.45 1.15 0.35 1.73 2.30 1.73 0.46 0.46 2.50 29.09 20.15 6.82 28.73 29.07 15.43 4.75 7.29 20.00 58.50 40.00 100.00 150.00 100.00 81.00 57.71 748.54 40.00 150.00 100.00 Total Listed Costs 1,293.58 1,206.42 1.29 Return to Family Labor, Management, and Land Breakeven Price to Cover Total Listed Costs (/doz) Assumptions: Chemical rates/prices on an active ingredient basis Machine labor cost per hour, including benefits $7.50 Dozen ears picked per man/hr 100 Modify Colored Columns Your Value Value/cost per acre $862.40 $0.00 $862.40 Base Value $862.40 $0.00 $862.40 $5.88 $3.73 $3.34 $3.64 $5.28 $45.00 $2.94 $5.88 $3.73 $3.34 $3.64 $5.28 $45.00 $2.94 Utah State University Extension Economics Costs and Returns per acre from growing corn for silage, 2006 Cache County Quantity Price/cost Receipts per acre Unit per unit Corn silage 28.0 tons $30.80 Residue AUM $0.00 Subtotal Operating costs Land preparation Plowing 1 acre $5.88 Discing 1 acre $3.73 Land plane 1 acre $3.34 Roller harrow 1 acre $3.64 Planting 1 acre $5.28 Seed 0.5 bags $90.00 Cultivation 1 acre $2.94 Fertilization Nitrogen (34-0-0) 350 pounds $0.18 Phosphate pounds $0.18 Custom application 1 acre $7.82 Manure 3 tons $5.00 Spread manure 1 acre $6.00 Pesticides/herbicides Dual Il Magnum 1 pint $15.10 Thimet 1.36 pounds $2.66 Custom application 1 acre $7.82 Irrigation (wheel line) 5 irrigations Labor 1.67 hours $10.00 Water assessment 1 share $10.00 Repairs/maintenance 1 acre $2.30 Pumping 20 $0.00 Harvesting Chopping 1 acre $6.79 Packing and pushing 1 acre $5.73 Trucking 2.2. loads/acre $17.31 Crop insurance (75% Yield, 100% Price) 1 acre $11.58 Interest on operating capital 7.61% Subtotal $62.48 $0.00 $7.82 $15.00 $6.00 $62.48 $0.00 $7.82 $15.00 $6.00 $15.10 $3.61 $7.82 $15.10 $3.61 $7.82 8 $16.67 $10.00 $2.30 $0.00 $16.67 $10.00 $2.30 $0.00 acre inch $6.79 $5.73 $38.43 $11.58 $5.39 $284.54 $6.79 $5.73 $38.43 $11.58 $5.39 $284.54 Ownership costs (excludes cost of land) Farm insurance Machinery ownership costs Irrigation equipment Total costs 1 1 acre acre acre $2.00 $91.96 $8.25 $102.21 $2.00 $91.96 $8.25 $386.75 $102.21 $2.00 $91.96 $8.25 $386.75 Net returns to owner for unpaid labor, management, equity and risk Above operating costs Above total listed costs $577.86 $475.65 $577.86 $475.65 Breakeven Table - Corn Silage Net returns per acre above operating costs Yield (Ton/Ac) 26.50 27.00 27.50 28.00 28.50 29.00 29.50 $20.80 $266.66 $277.06 $287.46 $297.86 $308.26 $318.66 $329.06 Selling Price ($/ton) $25.80 $30.80 $35.80 $399.16 $531.66 $664.16 $412.06 $547.06 $682.06 $424.96 $562.46 $699.96 $437.86 $577.86 $717.86 $450.76 $593.26 $735.76 $463.66 $608.66 $753.66 $476.56 $624.06 $771.56 $40.80 $796.66 $817.06 $837.46 $857.86 $878.26 $898.66 $919.06 Assumptions 1. Com planted in early May and harvested in late September. 2. Interest computed on land preparation and planting costs for 6 months and cultivation, ferlilization, herbicide and irrigation costs for 3 months. 3. Machinery operating costs include: fuel, oil, repairs and labor. 4. Machinery ownership costs are allocated based on equipment used for each crop. 5. Machinery ownership costs include depreciation, interest, insurance, and housing. Sweet Corn Budget Estimated Costs & Returns Per Acre Basis Item Unit Quantity Price Total Your Farm Yield/ Receipts: Farm Sales Other Sales Total Receipts Doz Doz 500 500 1,000 2.50 2.50 1,250.00 1,250.00 2,500.00 Purchases: Nitrogen Phosphate Potash Herbicide, pre-ei gent Herbicide, post-emergent Insecticide (Asana) Seed Water Assessment Boxes, Bags, etc. Total Purchases Lbs Lbs Lbs Lbs Lbs Lbs Lbs Shares Each 150 0.32 75 0.25 50 0.26 2 12.14 3 1.60 0.08 246.32 12 7.00 10 2.00 250 1.25 48.00 18.75 13.00 24.28 4.80 19.71 84.00 20.00 312.50 545.04 Operations: Time Machine Costs Fixed Operating Hired Labor Plow Disk and Harrow Fertilizer Application Plant Furrow and Cultivate Cultivate and Sidedress Fertilizer Herbicide Application Insecticide Application Irrigation Picking Hauling (on farm) Grade, sort, etc. Icing Advertising Hauling to Market Operating Interest Total Operations Costs 1 16.22 9.42 2 11.15 3.35 1 5.42 1.05 1 22.57 4.43 3 11.34 3.61 1 10.49 3.21 2 2.21 0.81 4 2.21 0.81 8 9 hours @ $6.50 per hour 1 @ $0.10 /doz 1 1 300 miles @ $0.27 /mile 1,154.26 @ 10% for 6 months 3.45 1.15 0.35 1.73 2.30 1.73 0.46 0.46 2.50 29.09 20.15 6.82 28.73 29.07 15.43 4.75 7.29 20.00 58.50 40.00 100.00 150.00 100.00 81.00 57.71 748.54 40.00 150.00 100.00 Total Listed Costs 1,293.58 1,206.42 1.29 Return to Family Labor, Management, and Land Breakeven Price to Cover Total Listed Costs (/doz) Assumptions: Chemical rates/prices on an active ingredient basis Machine labor cost per hour, including benefits $7.50 Dozen ears picked per man/hr 100
