2003 Corn Silage Production Budget 1											7
		Conservation Tillage
ITEM					EXPLANATION		PRICE PER		YIELD (ton/A)				YOUR
							UNIT						BUDGET
									12.5	16.5	20.5
RECEIPTS
	Corn Silage 2						$23.00	/ton	$288	$380	$472
VARIABLE  COSTS
	Seed			24000	28000	32000	1.10	/1000 kernels	26	31	35
	Fertilizer 3
		N (lbs)		80	110	140	0.24	/lb	19	26	34
		P2O5(lbs)		40	50	65	0.24	/lb	10	12	16
		K2O(lbs)		60	75	110	0.13	/lb	8	10	14
		Lime(ton)			0.5		12	/ton	6	6	6
	Chemicals 4								22	22	22
	Fuel, Oil, Grease 5								8	8	8
	Repairs 6								11	11	11
	Miscellaneous 7								12	13	14
	Int. on Oper. Cap. 8				5	mo.	9.0%		5	5	6
	Hired Labor 9								0	0	0
TOTAL VARIABLE COSTS					-Per Acre				126	144	165
					-Per Ton				10.10	8.72	8.07
FIXED COSTS
	Labor Charge 9				5.5	hours	9.00	/hr	50	50	50
	Mach. And Equip. Charge 10								39	39	39
	Land Charge 11								50	70	90
	Management Charge				5%	of gross revenue			14	19	24
TOTAL FIXED COSTS									152	177	202
TOTAL COSTS					-Per Acre				279	321	367
TOTAL COSTS					-Per Ton				22.30	19.45	17.90
RETURN ABOVE VARIABLE COSTS									161	236	306
RETURN ABOVE TOTAL COSTS									9	59	104
RETURN TO LABOR AND MANAGEMENT 12									73	127	178
1	Does not include costs for storage.												8
2	Price based on 7.5 x the price of corn (grain) + $5 handling charge.
		=7.5 x $2.40/bu + $5 = $23/ton
3	Maintenance fertilizer only, corn-soybean rotation, 3.8% O.M., 20 CEC, and soil test values
		of 25 ppm P/A and 150 ppm K/A.  Fertilization program assumes 6 bu. Grain = 1 T. silage.
4	Based on use of Bicep II Magnum.
5	See table below for specific calculations. Lubrication costs are assumed to be 15% of fuel costs.
6	See table below for specific calculations.
7	Includes supplies, utilities, soil tests, small tools, crop insurance, etc…
8	Interest on all variable costs for 5 months at 9% interest rate.
9	Part or all of labor may be a variable cost if paid labor varies with acres farmed.
		It’s a fixed cost if labor costs do not change with acres farmed.
10	Reflects 1000 acres, conventional tillage. See table below for details.
11	Average based on 1999 data.  Land charges vary throughout the state, check your local rates.
12	Return to labor and management is the revenue less total expenses except operator labor and management.
		It is a measure of the returns to the operator's labor and management.
Machinery Inventory
					Number in inventory	Cost	Acres/Hr	Fuel*        ($/A)	Repairs ($/A)
	15 ft. Chisel Plow				1	$7,800	8.5	0.60	0.28
	28 ft. Field Cultivator				1	$19,400	20.2	0.32	0.33
	50 ft. Boom Sprayer				1	$5,500	25.6	0.11	0.10
	8 Row Planter				1	$21,500	9.3	0.35	0.68
	20 ft. Row Crop Cultivator				1	$6,600	10.3	0.44	0.15
	Forage Harvester				1	$25,700	1.4	3.35	3.47
	Forage Wagons				2	$23,400	1.3	1.20	0.84
	Fertilizer Spreader				1	$10,400	23.80	0.11	0.23
	160 HP Tractor					$94,200			3.84
	75 HP Tractor					$30,300			1.14
	Pickup Truck (1/2)					$12,500		0.10	0.05
	Total per Acre					257,300		6.58	11.11
	Fixed Costs Rate				15%
	Mach. And Equip Charge =				39		Price of Diesel Fuel =			$1.00	/gal
Machinery and Equipment charge = Total Machine Inventory Cost x Fixed Costs Rate  / 1000 acres
				=$257,300 x 15% / 1000 acres = $39/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.