7
			2003 ROUNDUP READY SOYBEAN PRODUCTION BUDGET
			No-Tillage Practices
	ITEM			EXPLANATION			PRICE PER		YIELD (bu/A)				YOUR
							UNIT						BUDGET
									30	40	50
RECEIPTS
		Soybeans 1					$5.15	bu	$155	$206	$258
VARIABLE  COSTS
	Seed 2				80	lbs	0.40	/lb	32	32	32
	Fertilizer 3
		P2O5(lbs)		25	30	40	0.24	lb	6	7	10
		K2O(lbs)		60	75	90	0.13	lb	8	10	12
		Lime(ton)			0.5		12	ton	6	6	6
	Chemicals 4								24	24	24
	Trucking - Fuel Only				0.03	bu			1	1	2
	Fuel, Oil, Grease 5								5	5	5
	Repairs 6								12	12	12
	Miscellaneous 7								12	13	14
	Int. on Oper. Cap. 8				5	mo.	9.0%		4	4	4
	Hired Labor 9								0	0	0
TOTAL VARIABLE COSTS									109	114	119
									3.63	2.84	2.39
FIXED COSTS
	Labor Charge 9				2	hours	9.00	/hr	18	18	18
	Mach. and Equip. Charge 10								43	43	43
	Land Charge 11								50	70	90
	Management Charge								8	10	13
TOTAL FIXED COSTS									118	141	164
TOTAL COSTS					-Per Acre				227	255	283
					-Per Bushel				7.58	6.37	5.66
RETURN ABOVE VARIABLE COSTS									45	92	138
RETURN ABOVE TOTAL COSTS									(73)	(49)	(26)
RETURN TO LABOR AND MANAGEMENT 12									(47)	(20)	5
													8
1	Price based on average government loan rate for Ohio and not on market price.  Roundup Ready soybeans are a
		genetically modified organism and may receive a slightly lower price in some instances.
2	Seed costs are $24.25 per 50 pound bag, untreated.
3	Assumes only maintenance application of fertilizer needed, soil test values of 25 ppm P/A and 150 ppm K/A.
		Prices were quoted in October, 2002.  Fertilizer prices vary over time and by area.  Check with local sources
		for current prices.
4	Based on use of Roundup Ultra for burndown and post applications, application rate will vary
		with weed pressure and previous crop.  Roundup Ready soybeans are often used in part as a tool for perennial
		weed control.  While this intrinsic value is not included in the budget, it should be considered when exploring
		opportunities with Roundup Ready soybeans.
5	See table below for specific calculations.  Lubrication costs are assumed to be 15% of fuel costs.
6	See table below for specific calculations.
7	Includes supplies, utilities, soil tests, small tools, crop insurance, etc…
8	Interest on all variable costs, except trucking, for 5 months at 9% interest rate.
9	Part or all of labor may be a variable cost if paid labor varies with acres farmed.
		It’s a fixed cost if labor costs do not change with acres farmed.
10	Reflects 1000 acres, no-till practices. See table below for specific calculations.
11	Average based on 1999 data.  Land charges vary throughout the state, check your local rates.
12	Return to labor and management is the revenue less total expenses except operator labor and management.
		It is a measure of the returns to the operator's labor and management.
Machinery Inventory
					Number times used	Cost	Acres/  Hr	Fuel*        ($/A)	Repairs ($/A)
	50 ft. Boom Sprayer				1	$5,500	25.6	0.11	0.10
	15 Ft Grain Drill				1	$26,800	12.0	0.81	1.43
	Combine w/ 20' head				1	$146,400	5.4	2.02	5.24
	Gravity Grain Wagons				2	$7,000		1.20	0.84
	Fertilizer Spreader				1	$10,400	23.80	0.11	0.23
	130 HP Tractor					$76,200			3.84
	Pickup Truck (1/2)					$12,500		0.10	0.05
	Total per Acre					284,800		4.35	11.73
	Fixed Costs Rate				15%
	Mach. And Equip Charge =				$43			Price of Diesel Fuel			$1.00	/gal
Machinery and Equipment charge = Total Machine Inventory Cost x Fixed Costs Rate  / 1000 acres
				=$284,800 x 15% / 1000 acres = $43/acre
Machines are all assumed to be new and in the first year of use.  Older/used machines will likely have lower
	machinery costs.  Size of operation will also effect cost of machinery per acre.  For an analysis on machine
	costs for different sized operations, see economies of scale budgets in this publication
Fixed costs rate includes depreciation, interest, housing, and insurance.
*Fuel calculations are based on the implement plus tractor.