2003 SPELTZ BUDGET
		Horse Drawn/ Amish Practices 1
		1 Acre
ITEM				EXPLANATION			PRICE PER		YIELD (bu/A)				YOUR
							UNIT						BUDGET
										115
RECEIPTS
	Speltz						$1.80	/bu		$207
	Straw			60	bales		$1.50	/bale		$90
	Total Receipts									$297
VARIABLE  COSTS
	Seed (kernels)			100	pounds/acre		$0.32	/pound		$32
	Fertilizer			200	pounds/acre		$0.11	/pound		$22
	Lime			1000	pounds/acre		$21	/ton		$11
	Gasoline			2.2	gallons/acre		$1.40	/gallon		$3
	Binder Twine			1	ball/acre		$7	/ball		$7
	Grease, Oil, and Miscellaneous Supplies									$2
TOTAL VARIABLE COSTS						-Per Acre				$77
						-Per Bushel				$0.67
FIXED COSTS
	Horse Days2				5	horse days	$2.30	/horse day		$12
	Machinery and Equipment Charge
		Depreciation3								$11
		Repairs4								$8
		Opportunity Cost5								$14
	Land Charge				Rent					$50
TOTAL FIXED COSTS										$94
TOTAL COSTS						-Per Acre				$171
						-Per Bushel				$1.48
RETURN ABOVE VARIABLE COSTS										$220
RETURN TO LABOR AND MANAGEMENT6										$126
1	Includes the use of a stationary tractor for power to some implements.  All other work is performed by horse or people.
2	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 5 horses one day or one horse five days to complete one acre of this speltz operation.  The estimated cost per day includes  feed, depreciation, and harness.
3	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
		Grain Binder		700	100	28	15	1.43
		Grain Drill		467	90	22	15	1.14
		Harrow		800	200	27	30	0.74
		Hay Baler		1767	430	22	35	1.74
		Plow		530	67	30	30	0.51
		Thrashing Mach.*		2170	133	30	15	1.51
		Tractor		2130	666	30	22.5	2.17
		2 Wagons		2000	460	27	50	1.14
		Total						11.07
	Example Calculation: Disk
		(Purchase Price - Salvage Value) ÷ Useful Life ÷ Acres Used/yr.
		(450 - 33) ÷ 27 ÷ 30 = $0.51/acre
	*	Thrashing machines are typically part of a multi-farm thrashing circle.  For this budget, the thrashing circle is assumed to include three farms.  Therefore, the costs associated with the thrashing machine are divided between the three farms.  This method is used for depreciation, repair, and opportunity costs.
4	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
		Grain Binder		10	15	0.67
		Grain Drill		10	15	0.67
		Harrow		0	30	0.00
		Hay Baler		50	35	1.43
		Plow		43	30	1.43
		Thrashing Mach.*		28	15	0.62
		Tractor		50	22.5	2.22
		2 Wagons		34	50	0.68
		Total				7.80
	Example Calculation: Grain Drill
		Annual Repair Costs ÷ Acres Used/yr.
		10 ÷ 15 = $0.67/acre
5	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
		Grain Binder		700	100	15	1.60
		Grain Drill		467	90	15	1.11
		Harrow		800	200	30	1.00
		Hay Baler		1767	430	35	1.88
		Plow		530	67	30	0.60
		Thrashing Mach.*		2170	133	15	1.54
		Tractor		2130	666	22.5	3.73
		2 Wagons		2000	460	50	1.48
		Total					13.78
			interest rate =		6%
	Example Calculation: Disc
6	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