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1 |
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2003 ALFALFA HAY PRODUCTION BUDGET |
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Direct Spring Seeding - 4 Year Stand 1 |
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| ITEM |
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EXPLANATION |
PRICE PER |
YIELD (ton/A) 2 |
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YOUR |
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UNIT |
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BUDGET |
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3.0 |
4.5 |
6.0 |
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| RECEIPTS
3 |
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Alfalfa Hay - High
Quality |
60% |
of yield |
$100 |
/ton |
$180 |
$270 |
$360 |
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Alfalfa Hay - Lower
Quality |
40% |
of yield |
$60 |
/ton |
$72 |
$108 |
$144 |
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Total Alfalfa Receipts |
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$252 |
$378 |
$504 |
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| VARIABLE COSTS |
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Seed 4 |
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15 |
pounds |
4.00 |
/lb |
15 |
15 |
15 |
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Fertilizer 5 |
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N (lbs.) |
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0 |
0 |
0 |
0.24 |
/lb |
0 |
0 |
0 |
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P2O5(lbs) |
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40 |
60 |
80 |
0.24 |
/lb |
10 |
14 |
19 |
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K2O(lbs) |
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95 |
145 |
190 |
0.13 |
/lb |
12 |
19 |
25 |
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Lime(ton) |
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0.5 |
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12 |
/ton |
6 |
6 |
6 |
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Chemicals 6 |
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30 |
30 |
30 |
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Fuel, Oil, Grease 7 |
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12 |
12 |
12 |
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Repairs 8 |
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17 |
17 |
17 |
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Miscellaneous 9 |
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16 |
17 |
18 |
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Int. on Oper. Cap. 10 |
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6 |
mo |
9.0% |
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5 |
6 |
6 |
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Hired Labor 11 |
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0 |
0 |
0 |
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| TOTAL
VARIABLE COSTS |
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-Per Acre |
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123 |
136 |
148 |
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-Per Ton |
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41 |
30 |
25 |
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| FIXED
COSTS |
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Labor Charge 11 |
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6.5 |
hours |
9.00 |
/hour |
59 |
59 |
59 |
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Mach. And Equip. Charge 12 |
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34 |
34 |
34 |
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Seedbed
Preparation/Seeding Costs - Custom Hire
13 |
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14 |
14 |
14 |
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Land Charge 14 |
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50 |
70 |
90 |
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Management Charge |
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5% |
of gross revenue |
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13 |
19 |
25 |
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| TOTAL
FIXED COSTS |
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169 |
195 |
221 |
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| TOTAL
COSTS |
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-Per Acre |
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292 |
331 |
370 |
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-Per Ton |
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97 |
74 |
62 |
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| RETURN
ABOVE VARIABLE COSTS |
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129 |
242 |
356 |
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| RETURN
ABOVE TOTAL COSTS |
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(40) |
47 |
134 |
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| RETURN
TO LABOR AND MANAGEMENT 15 |
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31
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124
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218
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| 1 |
Does not include storage
costs. |
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2 |
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| 2 |
Assumes
a 2.5 ton yield in seeding year; yields of approximately 3, 5, and 7 tons,
respectively, in the following |
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years; middle yield shown
reflects weighted average. |
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| 3 |
Based
on 86% DM alfalfa hay. Alfalfa Hay
quality will often vary over the growing season. High quality alfalfa is |
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assumed
to be harvested at optimum maturity and condition. Lower quality alfalfa is assumed to be
harvested |
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at less than optimum
maturity and/or condition. 60% of crop is assumed to be harvested at optimum
conditions. |
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| 4 |
Expenses associated with
seeding are prorated over the four-year stand life. |
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| 5 |
Annual
application of maintenance fertilizer. 5-10 lb. of N. could be added at
seeding. |
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Soil
test values of CEC=20, P=25 ppm, K=150 ppm.
Prices were quoted in October, 2002.
Fertilizer prices |
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vary over time and by
area. Check with local sources for
current prices. |
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| 6 |
Based on use of
Baythroid, Poast, and Butyrac. |
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An
additional fall herbicide treatment may be necessary in some areas. |
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Additional insect control
may be necessary in some years. |
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| 7 |
See table below for
specific calculations. Lubrication costs are assumed to be 15% of fuel costs. |
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| 8 |
See table below for
specific calculations. |
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| 9 |
Includes twine, other
supplies, utilities, soil tests, small tools, crop insurance, etc… |
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| 10 |
Interest charged for 6
months at 9% interest rate. |
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| 11 |
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 |
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do not change with acres
farmed. It’s a fixed cost if labor
costs do not change with acres farmed. |
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| 12 |
Reflects 500 acres,
conservation tillage. See table below for details. |
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| 13 |
Seedbed preparation and
seeding costs are charged at custom hire rates and prorated over 4
years. The following |
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rates are included:
Plowing-$13, Field Cultivate-$8, Cultimulch-$9, Spray(3x)-$5, Seeding-$12. |
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| 14 |
Average based on 1999
data. Land charges vary throughout the
state, check your local rates. |
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| 15 |
Return to labor and
management is the revenue less total expenses except operator labor and
management. |
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It is a measure of the
returns to the operator's labor and management. |
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| Machinery Inventory |
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Number times used |
Cost |
Acres/ Hr |
Fuel* ($/A) |
Repairs ($/A) |
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Mower |
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4 |
$16,300 |
6.55 |
$2.00 |
1.72 |
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Hay Baler |
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4 |
$16,800 |
4.4 |
1.60 |
7.76 |
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Hay Wagon (2) |
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4 |
$7,000 |
4.4 |
4.80 |
4.00 |
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Hay Rake |
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4 |
$4,600 |
3.5 |
2.00 |
1.40 |
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75 HP Tractor |
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$30,300 |
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1.14 |
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60 HP Tractor |
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$24,300 |
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0.97 |
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Pickup Truck (1/2) |
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$12,500 |
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0.10 |
0.05 |
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Total per Acre |
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111,800 |
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10.50 |
17.04 |
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Fixed Costs Rate |
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15% |
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Mach. And Equip Charge = |
$34 |
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Price of Diesel Fuel |
$1.00 |
/gal |
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| Machinery
and Equipment charge = Total Machine Inventory Cost x Fixed Costs Rate / 500 acres |
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=$111,800 x 15% / 500 acres =
$34/acre |
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| Machines
are all assumed to be new and in the first year of use. Older/used machines will likely have
lower |
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machinery
costs. Size of operation will also
effect cost of machinery per acre. For
an analysis on machine |
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costs for different sized
operations, see economies of scale budgets in this publication |
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| Fixed costs
rate includes depreciation, interest, housing, and insurance. |
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| *Fuel
calculations are based on the implement plus tractor. |
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