2003 CORN BUDGET
Horse Drawn/ Amish Practices 1
1 Acre
ITEM EXPLANATION PRICE PER YIELD (bu/A)   YOUR
UNIT BUDGET
                      100      
RECEIPTS
Corn $2.40 /bu $240  
VARIABLE  COSTS
Seed (kernels) 24,000 1.10 /1000 kernels 26  
Fertilizer  
N (lbs) 60 0.24 14  
P2O5 (lbs) 35 0.24 8  
K2O 45 0.13 6  
Lime (ton) 1,000       21 /ton 11  
Chemicals       22 /acre 22  
Grease, Oil, and Miscellaneous Supplies 2  
TOTAL VARIABLE COSTS -Per Acre 90  
-Per Bushel 0.90  
FIXED COSTS
1Horse Days 7.5 horse days $2.30 /horse day $17  
2Machinery and Equipment Charge  
Depreciation $7  
Repairs $3  
Opportunity Cost $7  
3Labor 18 hours n/a  
Land Charge $50      
TOTAL FIXED COSTS -Per Acre $84  
-Per Bushel $0.84
TOTAL COSTS -Per Acre $174  
-Per Bushel $1.74  
RETURN ABOVE VARIABLE COSTS $150  
4RETURN TO LABOR AND MANAGEMENT $66
                             
1 One horse day is the amount of work one horse will do in a 6 hour day.  For example, it is estimated that it would take 7. 5 horses one day or one horse 7.5 days to complete one acre of this corn operation.  The estimated cost per day includes  feed, depreciation, and harness. 
2 Machinery and Equipment charge includes depreciation, repair and opportunity cost. Depreciation is the loss in value of a machine due to normal wear and tear.  The depreciation for each machine is listed below.  Purchase price, salvage value, and useful life were estimated from information collected at focus group interviews with Amish farmers.  Based on a farm crop rotation of 15 acres small grains, 15 acres corn (50% silage, 50% husked) and 20 acres of hay.
Purchase Price Salvage Value Useful Life Acres Used/yr. Annual Depr.
Disc 450 33 27 30 0.51
Drag 37 0 17 30 0.07
Forecart 342 200 27 50 0.11
Corn Planter 436 105 22 15 1.00
Sprayer 800 0 30 20 1.33
Fertilizer Spread 850 30 25 20 1.64
Harrow 800 200 27 30 0.74
1 Wagon 1000 230 27 5 0.57
Plow 530 67 30 30 0.51
Elevator 700 230 27 35 0.50
Total 6.99
Example Calculation: Disk
(Purchase Price - Salvage Value) ÷ Useful Life ÷ Acres Used/yr.
(450 - 33) ÷ 27 ÷ 30 = $0.51/acre
Repair costs are the normal maintenance costs associated with maintaining the equipment.  Annual repair costs were estimated from information collected at focus group interviews with Amish farmers.
Annual Repair Cost Acres Used/yr. Cost/ Acre
Disc 0 30 0.00
Drag 0 30 0.00
Forecart 4 50 0.08
Corn Planter 7 15 0.47
Sprayer 2 20 0.10
Fertilizer Spreader 1 20 0.05
Harrow 0 30 0.00
1 Wagon 17 50 0.34
Plow 43 30 1.43
Elevator 7 35 0.20
Total 2.67
Example Calculation: Corn Planter
Annual Repair Costs ÷ Acres Used/yr.
7 ÷ 15 = $0.47/acre
Opportunity cost is the money that could be made if the money invested in the machinery was invested in the next best opportunity.  It is typically not a cash cost but the cost of not having the opportunity to invest machinery capital in an alternative investment.
Purchase Price Salvage Value Acres Used/yr. Opp. Cost
Disc 450 33 30 0.48
Drag 37 0 30 0.04
Forecart 342 200 50 0.33
Corn Planter 436 105 15 1.08
Sprayer 800 0 20 1.20
Fertilizer Spreader 850 30 20 1.32
Harrow 800 200 35 0.86
1 Wagon 1000 330 50 0.80
Plow 530 67 30 0.60
Elevator 700 230 35 0.80
Total 7.50
interest rate =  6%
Example Calculation: Disc
3 Operator Labor Hrs/Arcre = 6hrs/day ÷ Acre/day
Field Operation  Acres/Day Hrs/Acre
Plowing 3 2.00
Discing 9.5 0.63
Harrowing 9.5 0.63
Corn Planting 9.0 0.67
Fertilizing 30 0.20
Spraying 45 0.13
Cultivation 9.0 0.67
Picking 0.5 12.00
16.93 or 17 Hrs/Acre
                             
4 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.
Budget Developed by:
Randall James, PhD Robert Moore
Associate Professor, OSU Extension Extension Associate, OSU Extension
Geauga County Agricultural, Environmental, and Development Econ.
440-834-4656 614-688-3959
james.7@osu.edu moore.301@osu.edu
Les Ober
Program Assistant, Agriculture
OSU Extension, Geauga County
440-834-4656
ober.10@osu.edu
37887.00