2020 Cost of Production
Crops
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Date: January, 2020
This tool is available as an Excel worksheet at: or at your local is also available to helpdetermine machinery costs.
The is also available for producers to
Crop Production Costs - 2020Guidelines For Estimating
The following budgets are estimates of the cost of producing the most commonly grown field crops in Manitoba. General Manitoba Agriculture and Resource Development recommendations are assumed in using fertilizers and chemical inputs. These figures provide an economic evaluation of the crops and estimated yields required to cover all costs. Costs include labour, investment and depreciation, but do not include management costs, nor do they necessarily represent the average cost of production in Manitoba.
These budgets may be adjusted by putting in your own figures. As a producer you are encouraged to calculate your own costs of production for various crops. On each farm, costs and yields differ due to soil type, climate and agronomic practices.
Note: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and use of this information is the responsibility of the user. If you need help with a budget, contact your local Manitoba Agriculture and Resource Development office.
estimate the cash cost of producing field crops on their farm on an annual basis. CropPlan calculates marginal returns, breakeven yields, breakeven crop prices on total production and remaining unsold inventory, land and machinery cost analysis and cash based financial ratios.
The Farm Machinery Custom and Rental Rate Guide
www.manitoba.ca/agriculture
CropPlan Production Cost Calculator
Manitoba Agriculture and Resource Development office.
Guidelines: Crop Production Costs 2
Canola
Wheat - Hard Red
Spring Soybeans Oats Corn Barley
Wheat - Northern Hard Red
Wheat - Winter
A. Operating Costs
Seed & Treatment $62.50 $24.00 $95.10 $18.13 $86.25 $15.00 $22.00 $20.00
Fertilizer $80.73 $63.79 $17.29 $45.52 $99.42 $50.17 $73.09 $68.44
Herbicide $14.41 $30.50 $10.00 $9.38 $26.25 $35.00 $30.50 $14.25
Fungicide $16.25 $16.50 $0.00 $10.25 $0.00 $8.89 $16.50 $16.50
Insecticide $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Fuel $21.09 $22.78 $19.47 $26.53 $28.29 $24.22 $23.80 $23.24
Machinery Operating $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Machinery Lease $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88
Rental and Custom $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Crop Insurance $7.89 $7.77 $11.53 $9.31 $21.93 $9.75 $11.61 $7.32
Hail Insurance $7.56 $6.30 $8.19 $6.30 $6.30 $6.30 $6.30 $6.30
Other Costs $7.75 $7.75 $7.75 $7.75 $7.75 $7.75 $7.75 $7.75
Land Taxes $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00
Drying Costs $0.00 $0.00 $0.00 $0.00 $35.00 $0.00 $0.00 $0.00
Interest on Operating $6.77 $5.70 $5.42 $4.43 $9.32 $5.09 $6.03 $5.27
Total Operating $252.83 $212.97 $202.62 $165.48 $348.39 $190.04 $225.46 $196.96
B. Fixed Costs
Land Costs $67.06 $67.06 $67.06 $67.06 $67.06 $67.06 $67.06 $67.06
Machinery Costs $67.31 $67.31 $67.31 $67.31 $75.38 $67.31 $67.31 $67.31
Storage Costs $4.77 $6.70 $4.20 $11.93 $15.33 $9.09 $7.95 $7.27
Total Fixed $139.13 $141.06 $138.57 $146.29 $157.77 $143.45 $142.31 $141.63
Total Operating & Fixed $391.96 $354.04 $341.19 $311.77 $506.16 $333.49 $367.77 $338.59
C. Labour $26.40 $26.40 $26.40 $26.40 $26.40 $26.40 $26.40 $26.40
Total Costs $418.36 $380.44 $367.59 $338.17 $532.56 $359.89 $394.17 $364.99
Estimated Farmgate
Target Price $ per unit $10.50 $6.75 $10.50 $3.75 $4.50 $4.00 $6.00 $5.25
Premium $ per unit $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Target Yield per acre 42 59 37 105 135 80 70 64
Unit type (bu. or lb.) bu bu bu bu bu bu bu bu
Gross Revenue / acre $441.00 $398.25 $388.50 $393.75 $607.50 $320.00 $420.00 $336.00
Revenue Ranking 6 8 10 9 1 14 7 13
Operating Expense Ratio 57.3% 53.5% 52.2% 42.0% 57.3% 59.4% 53.7% 58.6%
Marginal ReturnsOver Operating Costs $188.17 $185.28 $185.88 $228.27 $259.11 $129.96 $194.54 $139.04Over Operating & Fixed $49.04 $44.21 $47.31 $81.98 $101.34 ($13.49) $52.23 ($2.59)Over Total Costs (Net Profit) $22.64 $17.81 $20.91 $55.58 $74.94 ($39.89) $25.83 ($28.99)
Profitability Ranking 7 9 8 3 2 16 6 14
Return on Investment (ROI) 5.41% 4.68% 5.69% 16.44% 14.07% (11.08%) 6.55% (7.94%)
Return on Asset (ROA) 3.84% 3.76% 3.78% 4.97% 5.75% 2.21% 4.02% 2.46%
Breakeven Price Per Unit
Over Operating Costs $6.02 $3.61 $5.48 $1.58 $2.58 $2.38 $3.22 $3.08
Over Operating & Fixed Costs $9.33 $6.00 $9.22 $2.97 $3.75 $4.17 $5.25 $5.29
Over Total Costs $9.96 $6.45 $9.93 $3.22 $3.94 $4.50 $5.63 $5.70
Breakeven Yield (Bu or lb.)
Over Operating Costs 24.1 31.6 19.3 44.1 77.4 47.5 37.6 38
Over Operating & Fixed Costs 37.3 52.4 32.5 83.1 112.5 83.4 61.3 64.5
Over Total Costs 39.8 56.4 35.0 90.2 118.3 90.0 65.7 70
Breakeven Yield Risk Ratio 106% 105% 106% 116% 114% 89% 107% 91%(Target Yield per Acre / BE Yield)
Note: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.
Crop Production Costs 2020 Guidelines (Dollars Per Acre)
Profitability Analysis
Breakeven Analysis
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 3
Peas Fall Rye FlaxseedBeans -
Pinto
Wheat - Prairie Spring
Sunflower Oil
Sunflower Confection
Beans - White
Wheat - Special Purpose Your Farm
$35.06 $10.50 $22.80 $70.00 $22.00 $38.00 $48.31 $81.25 $22.00
$12.97 $50.17 $47.84 $45.52 $68.44 $70.13 $70.13 $50.17 $68.44
$14.75 $7.50 $20.63 $67.66 $30.50 $28.59 $46.19 $67.66 $30.50
$19.50 $0.00 $14.50 $28.57 $16.50 $0.00 $20.50 $32.73 $16.50
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5.63 $0.00 $0.00
$17.89 $19.24 $19.83 $17.17 $23.80 $22.45 $21.98 $17.01 $23.62
$10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
$2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88
$0.00 $0.00 $0.00 $0.00 $0.00 $8.50 $17.00 $0.00 $0.00
$9.82 $9.66 $9.73 $24.97 $8.13 $14.55 $28.26 $21.36 $10.20
$12.60 $6.30 $6.30 $11.03 $6.30 $6.30 $6.30 $11.03 $6.30
$7.75 $7.75 $7.75 $7.75 $7.75 $7.75 $7.75 $7.75 $7.75
$15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00
$0.00 $0.00 $0.00 $0.00 $0.00 $10.00 $10.00 $0.00 $0.00
$4.35 $3.82 $4.87 $8.26 $5.81 $6.44 $8.52 $8.71 $5.86
$162.56 $142.82 $182.13 $308.80 $217.11 $240.58 $318.45 $325.55 $219.04
$67.06 $67.06 $67.06 $67.06 $67.06 $67.06 $67.06 $67.06 $67.06
$67.31 $67.31 $67.31 $72.69 $67.31 $75.38 $75.38 $72.69 $67.31
$4.88 $6.59 $2.84 $3.60 $7.95 $8.18 $7.61 $3.41 $7.72
$139.25 $140.95 $137.20 $143.34 $142.31 $150.62 $150.05 $143.16 $142.09
$301.81 $283.77 $319.33 $452.14 $359.42 $391.20 $468.50 $468.70 $361.13
$26.40 $26.40 $26.40 $26.40 $26.40 $26.40 $26.40 $26.40 $26.40
$328.21 $310.17 $345.73 $478.54 $385.82 $417.60 $494.90 $495.10 $387.53
$7.00 $5.50 $12.00 $0.30 $5.50 $0.25 $0.30 $0.30 $5.25
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
43 58 25 1,900 70 1,800 1,675 1,800 68
bu bu bu lb bu lb lb lb bu
$301.00 $319.00 $300.00 $570.00 $385.00 $450.00 $502.50 $540.00 $357.00
16 15 17 2 11 5 4 3 12
54.0% 44.8% 60.7% 54.2% 56.4% 53.5% 63.4% 60.3% 61.4%
$138.44 $176.18 $117.87 $261.20 $167.89 $209.42 $184.05 $214.45 $137.96($0.81) $35.23 ($19.33) $117.86 $25.58 $58.80 $34.00 $71.30 ($4.13)
($27.21) $8.83 ($45.73) $91.46 ($0.82) $32.40 $7.60 $44.90 ($30.53)
13 10 17 1 12 5 11 4 15
(8.29%) 2.85% (13.23%) 19.11% (0.21%) 7.76% 1.54% 9.07% (7.88%)
2.44% 3.51% 1.87% 5.84% 3.27% 4.35% 3.64% 4.52% 2.43%
$3.78 $2.46 $7.29 $0.16 $3.10 $0.13 $0.19 $0.18 $3.22
$7.02 $4.89 $12.77 $0.24 $5.13 $0.22 $0.28 $0.26 $5.31
$7.63 $5.35 $13.83 $0.25 $5.51 $0.23 $0.30 $0.28 $5.70
23.2 26 15 1029.3 39.5 962 1061 1085.2 42
43.1 51.6 26.6 1507.1 65.3 1564.8 1561.7 1562.3 68.8
46.9 56 29 1595.1 70.1 1670 1650 1650.3 74
92% 104% 86% 119% 100% 108% 102% 109% 92%
Note: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.
Crop Production Costs 2020 Guidelines (Dollars Per Acre)
Profitability Analysis
Breakeven Analysis
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 4
Canola
Wheat - Hard Red
Spring Soybeans Oats Corn Barley
Wheat - Northern Hard Red
Wheat - Winter
AgriInsurance
80% Insured Value $356.10 $293.75 $280.44 $286.12 $369.88 $239.95 $314.38 $299.53
Premium Cost (% of Insured) 2.2% 2.6% 4.1% 3.3% 5.9% 4.1% 3.7% 2.4%
Costs Not Covered By AgriInsurance
Operating Costs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Operating & Fixed Costs $35.86 $60.29 $60.74 $25.65 $136.28 $93.54 $53.39 $39.06
Total Costs $62.26 $86.69 $87.14 $52.05 $162.68 $119.94 $79.79 $65.46
AgriInsurance Risk Ratio (AgriInsurance Coverage / Cost)
Operating Costs 141% 138% 138% 173% 106% 126% 139% 152%
Total Costs 85% 77% 76% 85% 69% 67% 80% 82%
Risk Ranking 13 10 11 17 1 4 12 14
(Lower number indicates increasing risk)
Percent Market Price Change -10.0%
Percent Crop Yield Change -5%
Canola
Wheat - Hard Red
Spring Soybeans Oats Corn Barley
Wheat - Northern Hard Red
Wheat - Winter
Market Price ($ per unit) $9.45 $6.08 $9.45 $3.38 $4.05 $3.60 $5.40 $4.73
Yield (per acre) 40 56 35 100 128 76 67 61
Stress Test Scenario = Market Price Down 10%, and Crop Yield Down 5%Net Profit (Loss) ($40.36) ($40.24) ($36.84) ($0.67) ($14.16) ($86.29) ($32.37) ($76.76)
Profitability Ranking 10 9 7 2 3 16 4 14
Operating Expense Ratio 66.9% 62.6% 61.3% 49.0% 67.2% 69.5% 62.3% 68.3%
Data Source – MASC Harvest Production Reports (2010-2015)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Wheat - Hard Red
Spring Canola
Wheat - Hard Red
Spring Canola
Wheat - Hard Red
Spring Canola
Rotation Total
Marginal Return
Rotation Yield Premium 100% 102% 101% 102% 101% 102% -
Net Profit (Loss) $17.81 $31.46 $21.80 $31.46 $21.80 $31.46 $156
Corn Canola
Wheat - Hard Red
Spring Soybeans Corn Canola
Rotation Total
Marginal Return
Rotation Yield Premium 100% 112% 101% 101% 103% 112% -
Net Profit (Loss) $74.94 $75.56 $21.80 $24.80 $93.16 $75.56 $366
Note: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.
Example Rotation #1
Example Rotation #2
Rotation Economic Analysis
AgriInsurance Analysis
Risk & Sensitivity Analysis (Stress Test)
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 5
Peas Fall Rye FlaxseedBeans -
Pinto
Wheat - Prairie Spring
Sunflower Oil
Sunflower Confection
Beans - White
Wheat - Special Purpose Your Farm
$207.83 $241.61 $239.41 $482.13 $270.41 $322.92 $407.16 $438.37 $262.00
4.7% 4.0% 4.1% 5.2% 3.0% 4.5% 6.9% 4.9% 3.9%
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$93.97 $42.16 $79.92 $0.00 $89.02 $68.28 $61.34 $30.33 $99.13
$120.37 $68.56 $106.32 $0.00 $115.42 $94.68 $87.74 $56.73 $125.53
128% 169% 131% 156% 125% 134% 128% 135% 120%
63% 78% 69% 101% 70% 77% 82% 89% 68%
5 16 7 15 3 8 6 9 2
Peas Fall Rye FlaxseedBeans -
Pinto
Wheat - Prairie Spring
Sunflower Oil
Sunflower Confection
Beans - White
Wheat - Special Purpose Your Farm
$6.30 $4.95 $10.80 $0.27 $4.95 $0.23 $0.27 $0.27 $4.73
41 55 24 1805 67 1710 1591 1710 65
($69.91) ($37.92) ($86.53) $8.81 ($54.17) ($32.85) ($65.33) ($33.40) ($80.40)
13 8 17 1 11 5 12 6 15
62.9% 52.5% 70.3% 63.4% 65.5% 62.5% 74.1% 70.5% 71.3%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Example Rotation #3Wheat -
Hard Red Spring Canola Oats Soybeans Corn
Sunflower Confection
Rotation Total Marginal Return
Rotation Yield Premium 100% 102% 101% 100% 103% 119% -
Net Profit (Loss) $17.81 $31.46 $59.52 $20.91 $93.16 $103.08 $326
Your Farm Rotation
Soybeans
Wheat - Hard Red
Spring Canola Soybeans
Wheat - Hard Red
Spring CanolaRotation Total
Marginal Return
Rotation Yield Premium 100% 108% 102% 100% 108% 102% -
Net Profit (Loss) $20.91 $49.67 $31.46 $20.91 $49.67 $31.46 $204
Note: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.
AgriInsurance Analysis
Risk & Sensitivity Analysis (Stress Test)
Rotation Economic Analysis
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 6
Canola, 3,214,817
Wheat - Hard Red Spring, 2,758,181
Soybeans, 1,388,899
Oats, 535,231
Corn, 416,259
Barley, 348,977
Wheat -Northern Hard Red, 153,585Other, 514,479
MASC - 2019 Seeded Acres
Manitoba Agriculture & Resource Development
Wheat - Winter, 33,302
Peas, 112,175
Fall Rye, 40,312
Flaxseed, 45,705
Hybrid Fall Rye, 53,793
Beans - Pinto, 55,924 Wheat - Prairie
Spring, 33,302
Sunflower Oil, 45,831
Sunflower Confection,
20,032
Beans - White, 43,665
Black Bean, 27,308
Wheat - Special Purpose, 5,402
Hempseed, 10,009
Kidney Bean, 12,358
Fababean, 8,052Buckwheat, 6,766
Canaryseed, 3,179
Lentil, 1,542
MASC - 2019 Other Crop Seeded Acres
Manitoba Agriculture& Resource Development
141% 138% 138%
173%
106%
126%139%
152%
85%77% 76%
85%
69% 67%80% 82%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
Canola Wheat -Hard Red
Spring
Soybeans Oats Corn Barley Wheat -NorthernHard Red
Wheat -Winter
$ Pe
r Acr
e
Manitoba - 80% Insured Value AgriInsurance Risk Analysis - 2020
80% Insured Value 80% Coverage of Operating Costs 80% Coverage of Total Costs
Manitoba Agriculture & Resource Development
Canola, Wheat - Hard Red Spring and Soybeans total 79% of the 2019
Seeded Acres and 78% of the 5 Year Average Seeded Acres
Other Crops are 5% of the 2019 Seeded Acres
Analysis of your AgriInsurance Coverage of Operating and Total
Costs is an important step in RiskManagement Planning for your farm.
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 7
106% 105% 106%
116% 114%
89%
107%
92%
0%
20%
40%
60%
80%
100%
120%
140%
Canola Wheat -Hard Red
Spring
Soybeans Oats Corn Barley Wheat -NorthernHard Red
Wheat -Winter
Manitoba Breakeven Yield Risk Ratio - 2020
Target Yield as % of B/E Yield
Manitoba Agriculture & Resource Development
Analysis of ROI (Reward) and the associated AgriInsurance Coverage
of Total Costs (Risk) is useful in comparing the profitability and cost efficiency alongside the production cost risk when evaluating crops to include in your rotation and is an
important step in Risk Management Planning for your farm.
Analysis of your Breakeven Yields compared to Target (or average) Yields gives an indication of how
close to B/E ($0 profit = 100%) each crop in your rotation is if faced with potential production or market price
challenges and is an important step in Risk Management Planning.
5.4% 4.7% 5.7% 16.4% 14.1%
-11.1%
6.6%
-7.9%
85%
77% 76%
85%
69%67%
80% 82%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Canola Wheat -Hard Red
Spring
Soybeans Oats Corn Barley Wheat -NorthernHard Red
Wheat -Winter
Manitoba Risk & Reward Analysis - 2020
Return on Investment (Reward) 80% Coverage of Total Costs (Risk)
Manitoba Agriculture & Resource Development
-$200.00
-$150.00
-$100.00
-$50.00
$0.00
$50.00
$100.00
$150.00
4th weekApril
1st weekMay
2nd weekMay
3rd weekMay
4th weekMay
1st weekJune
2nd weekJune
3rd weekJune
Manitoba Net Profit Based on Seeding Date - 2020
Canola Wheat - Hard Red Spring Soybeans Oats
Manitoba Agriculture & Resource Development
Seeding Date can have a significant impact on crop yields and net
profitability. Analysis of seeding dates will highlight potential windows of profitability to seed crops in your rotation and is an important step in
Risk Management Planning.
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 8
Seeding Rate Price CostCrop per Acre per Unit per Acre
Canola 5 lb $12.50 /lb $62.50* Soybeans 1.43 units $66.50 /unit $95.10
Wheat - Hard Red Spring 2.0 bu $12.00 /bu $24.00Wheat - Northern Hard Red 2.0 bu $11.00 /bu $22.00Wheat - Special Purpose 2.0 bu $11.00 /bu $22.00Wheat - Prairie Spring 2.0 bu $11.00 /bu $22.00Wheat - Winter 2.0 bu $10.00 /bu $20.00Barley 2.0 bu $7.50 /bu $15.00Oats 2.5 bu $7.25 /bu $18.13Corn 30,000 plants $0.0029 /plant $86.25Peas 2.75 bu $12.75 /bu $35.06Fall Rye 1.5 bu $7.00 /bu $10.50Flaxseed 60 lb $0.38 /lb $22.80Beans - Pinto 1.40 units $50.00 /unit $70.00Beans - White 1.25 units $65.00 /unit $81.25Sunflower Oil 20,000 plants $0.0019 /plant $38.00Sunflower Confection 18,000 plants $0.00268 /plant $48.31
* If row cropping, change seeding rate to 1.3 units/acre which reduces seed cost by 10%
Bulk Price Actual Nutrient Nitrogen SulphurFertilizer Type $/tonne $/lb Usage Usage
Nitrogen: (urea) 46-0-0 $500 $0.493 50% -Nitrogen: (NH3) 82-0-0 $790 $0.437 50% -Nitrogen: (liquid) 28-0-0 $320 $0.518 0% -Phosphorus: 11-52-0 $615 $0.432 - -Potash: 0-0-60 $470 $0.355 - -Sulphur: 20.5-0-0-24 $425 $0.382 - 100%
MES S15: 13-33-0-15 $630 $0.527 - 0%
TotalCrop lbs $/acre lbs $/acre lbs $/acre lbs $/acre $/acre
Canola 120 $55.80 40 $17.29 0 $0.00 20 $7.64 $80.73Soybeans 0 $0.00 40 $17.29 0 $0.00 0 $0.00 $17.29Wheat - Hard Red Spring 100 $46.50 40 $17.29 0 $0.00 0 $0.00 $63.79Wheat - Northern Hard Red 120 $55.80 40 $17.29 0 $0.00 0 $0.00 $73.09Wheat - Special Purpose 110 $51.15 40 $17.29 0 $0.00 0 $0.00 $68.44Wheat - Prairie Spring 110 $51.15 40 $17.29 0 $0.00 0 $0.00 $68.44Wheat - Winter 110 $51.15 40 $17.29 0 $0.00 0 $0.00 $68.44Barley 80 $37.20 30 $12.97 0 $0.00 0 $0.00 $50.17Oats 70 $32.55 30 $12.97 0 $0.00 0 $0.00 $45.52Corn 140 $65.10 50 $21.61 25 $8.88 10 $3.82 $99.42Peas 0 $0.00 30 $12.97 0 $0.00 0 $0.00 $12.97Fall Rye 80 $37.20 30 $12.97 0 $0.00 0 $0.00 $50.17Flaxseed 75 $34.88 30 $12.97 0 $0.00 0 $0.00 $47.84Beans - Pinto 70 $32.55 30 $12.97 0 $0.00 0 $0.00 $45.52Beans - White 80 $37.20 30 $12.97 0 $0.00 0 $0.00 $50.17Sunflower Oil 100 $46.50 30 $12.97 30 $10.66 0 $0.00 $70.13Sunflower Confection 100 $46.50 30 $12.97 30 $10.66 0 $0.00 $70.13
*
* For more information on fertilizer rates and recommendations - *
Fertilizer
Seed & Treatment
The fertilizer recommendation will vary depending on the soil type, climate and crop rotation. MARD recommends that soil test sampling and analysis be conducted each year to produce a better baseline for fertility. It costs $1.00 to $2.00/acre for custom sampling and analysis.
Amount of Actual Pounds of Elements Applied Per AcreNitrogen Phosphorus Potash Sulphur
Note: phosphorus amounts are allotted to each crop in the above examples. Sometimes this amount may not be practical or safe to apply with the seed of some crops like soybean or canola. Options for meeting these needs and phosphorus balance through the rotation are provided at:
Nitrogen Rate Calculator
Phosphorus Balance Calculator
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 9
Weed Disease Insect TotalControl Control Control Cost
Crop $/acre $/acre $/acre $/acreCanola $14.41 $16.25 $0.00 $30.66Soybeans $10.00 $0.00 $0.00 $10.00Wheat - Hard Red Spring $30.50 $16.50 $0.00 $47.00Wheat - Northern Hard Red $30.50 $16.50 $0.00 $47.00Wheat - Special Purpose $30.50 $16.50 $0.00 $47.00Wheat - Prairie Spring $30.50 $16.50 $0.00 $47.00Wheat - Winter $14.25 $16.50 $0.00 $30.75Barley $35.00 $8.89 $0.00 $43.89Oats $9.38 $10.25 $0.00 $19.63Corn $26.25 $0.00 $0.00 $26.25Peas $14.75 $19.50 $0.00 $34.25Fall Rye $7.50 $0.00 $0.00 $7.50Flaxseed $20.63 $14.50 $0.00 $35.13Beans - Pinto $67.66 $28.57 $0.00 $96.23Beans - White $67.66 $32.73 $0.00 $100.39Sunflower Oil $28.59 $0.00 $0.00 $28.59Sunflower Confection $46.19 $20.50 $5.63 $72.32
Note:
Pre-emergent burn off and/or pre-harvest desiccation not included in weed control costs. (except for wheat, win. wheat and sunflowers).Chemical costs do not include year end rebates or bundling discounts.
Disease Control costs (except for sunflowers listed on Operating Cost Page) do not include custom application costs.
Chemicals
$0
$100
$200
$300
$400
$500
$60020
16
2017
2018
2019
2020
Pric
e ($
/MT)
Average Urea Nitrogen Prices
Previous Fall Spring Previous Fall Trend Spring Trend
Manitoba Agriculture & Resource Development
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2016
2017
2018
2019
2020
Pric
e ($
/MT)
Average 11-52-0 Phosphate Prices
Previous Fall Spring Previous Fall Trend Spring Trend
Manitoba Agriculture & Resource Development
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 10
Interest Rate on Operating 5.50% Grain HaulingLand Taxes ($/acre) $15.00 Distance to storage 6 miles roundtripLabour rate ($/hour) $24.00 Distance to market 45 miles roundtripMachinery Operating ($/acre) $10.00 Grain truck fuel use 5 Miles per Imp. GallonOther Costs ($/acre) $7.75 Grain truck size 475 bushelsFuel Cost ($/litre) $0.95
Labour Crop* Hail Drying StorageCrop (hrs/acre) Fuel Insurance Insurance Costs $/acre** Seeding Application Swathing Harvest General Total
Canola 1.1 $21.09 $7.89 $7.56 - $4.77 - - - - - $0.00Soybeans 1.1 $19.47 $11.53 $8.19 - $4.20 - - - - - $0.00Wheat - Hard Red Spring 1.1 $22.78 $7.77 $6.30 - $6.70 - - - - - $0.00Wheat - Northern Hard Red 1.1 $23.80 $11.61 $6.30 - $7.95 - - - - - $0.00Wheat - Special Purpose 1.1 $23.62 $10.20 $6.30 - $7.72 - - - - - $0.00Wheat - Prairie Spring 1.1 $23.80 $8.13 $6.30 - $7.95 - - - - - $0.00Wheat - Winter 1.1 $23.24 $7.32 $6.30 - $7.27 - - - - - $0.00Barley 1.1 $24.22 $9.75 $6.30 - $9.09 - - - - - $0.00Oats 1.1 $26.53 $9.31 $6.30 - $11.93 - - - - - $0.00Corn 1.1 $28.29 $21.93 $6.30 $35.00 $15.33 - - - - - $0.00Peas 1.1 $17.89 $9.82 $12.60 - $4.88 - - - - - $0.00Fall Rye 1.1 $19.24 $9.66 $6.30 - $6.59 - - - - - $0.00Flaxseed 1.1 $19.83 $9.73 $6.30 - $2.84 - - - - - $0.00Beans - Pinto 1.1 $17.17 $24.97 $11.03 - $3.60 - - - - - $0.00Beans - White 1.1 $17.01 $21.36 $11.03 - $3.41 - - - - - $0.00Sunflower Oil 1.1 $22.45 $14.55 $6.30 $10.00 $8.18 - $8.50 - - - $8.50Sunflower Confection 1.1 $21.98 $28.26 $6.30 $10.00 $7.61 - $17.00 - - - $17.00
* 80% Insured Value - Based on MASC Risk Areas 2, 5, 6, & 12 ** Storage costs are listed under Fixed Costs on the Summary Page.
TotalCrop L/acre 2.25 3.5 0.75 2.5 1.3 0.42 1.13 5.54 2
Canola 22.20 2 1 1 4 1 1 2 4.10Soybeans 20.49 2 2 1 2 1 2 3.61Wheat - Hard Red Spring 23.98 1 1 1 1 4 1 2 5.76Wheat - Northern Hard Red 25.05 1 1 1 1 4 1 2 6.83Wheat - Special Purpose 24.86 1 1 1 1 4 1 2 6.64Wheat - Prairie Spring 25.05 1 1 1 1 4 1 2 6.83Wheat - Winter 24.47 1 1 1 1 4 1 2 6.25Barley 25.49 2 1 1 3 1 1 2 7.81Oats 27.93 2 1 1 3 1 1 2 10.25Corn 29.78 1 1 1 1 3 1 2 13.18Peas 18.83 1 2 1 2 1 2 4.20Fall Rye 20.25 1 1 1 1 1 1 2 5.66Flaxseed 20.87 2 2 1 3 1 1 2 2.44Beans - Pinto 18.07 1 2 1 3 1 1 2 3.09Beans - White 17.91 1 2 1 3 1 1 2 2.93Sunflower Oil 23.63 1 1 1 1 3 1 2 7.03Sunflower Confection 23.14 1 1 1 1 3 1 2 6.54
Operating Costs
cultivator or tandem disk
high speed disk
harrow or land roller air drill
row planter SP sprayer
Field Fuel Usage
Rental and Custom CostsOperating Cost ($/Acre)
swather combine3/4 ton pickup
grain hauling
Trucks L/acreNumber of Field Operations & Litres Fuel Per Acre Per Operation
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 11
Land Conventional Special Average Land value ($/acre) $3,000 Machinery Crop Crop Conventional Crop acres 2,000 Total Investment ($/acre) $500.00 $60.00 Special Crop acres 500 Residual Value (End of Useful Life) 25% Owned Land Equity 85% Useful Life (years) 15 Land Financed 15% Owned Equipment Equity 55% Land Opportunity Cost (Investment Rate) 1.50% Equipment Financed 45%Land cost ($/acre) Machinery Opportunity Cost (Investment Rate) 1.50% Finance Rate & Term 4.000% 25 Years Principle & Interest Cost $28.81 Machinery Cost ($/acre) Owned Land Opportunity Cost $38.25 Finance Rate & Term 4.500% 7 Years Total Cost $67.06 Principle & Interest Cost $38.18 $4.58
Machinery Depreciation Cost $25.00 $3.00Grain Storage Usage % Cost Owned Machinery Opportunity Cost $4.13 $0.50 Non-aeration bins 15% $1.75 /bu $67.31 $8.08 Aeration bins 70% $2.40 /bu Hopper bins 15% $4.20 /bu
Storage Financed 60% Machinery Lease cost ($/acre) $2.88
Market Grain Grain Market Grain Grain
Power & Misc Equipment Value Usage % Allocation Harvest Equipment Value Usage % Allocation
4WD Tractor 475HP $250,000 100% $250,000 Combine $260,000 100% $260,000
MFWD Tractor 150HP $100,000 100% $100,000 Swather 35 ft $30,000 100% $30,000
2WD Tractor 60HP $30,000 75% $22,500 PTO Auger 13x70 $15,000 100% $15,000
ATV Quad $6,000 75% $4,500 Auger 8x35 $4,000 100% $4,000
$0 0% $0 Harvest Header $50,000 100% $50,000
$0 0% $0 $0 0% $0
$0 0% $0 $0 0% $0
$0 0% $0 $0 0% $0
Total $377,000 Total $359,000
Market Grain Grain Market Grain Grain
Seeding, Tillage, Spraying Value Usage % Allocation Trucks & Trailers Value Usage % Allocation
Cultivator $20,000 100% $20,000 Tandem grain truck $60,000 100% $60,000
Harrow 80ft $30,000 100% $30,000 Grain cart $35,000 100% $35,000
Air tank $60,000 100% $60,000 $0 100% $0
Air drill $125,000 100% $125,000 $0 0% $0
SP sprayer $175,000 100% $175,000 $0 0% $0
Miscellaneous $9,000 100% $9,000 $0 0% $0
$0 0% $0 $0 0% $0
$0 0% $0 $0 0% $0
Total $419,000 $419,000 Total $95,000
Owned Equipment TOTAL $1,250,000
Market Grain Grain Market Grain Grain
Seeding, Tillage, Spraying Value Usage % Allocation Harvest Equipment Value Usage % Allocation
Planter $100,000 100% $100,000 Harvest Header $50,000 100% $50,000
$0 0% $0 $0 0% $0
$0 0% $0 $0 0% $0
$0 0% $0 $0 0% $0
Total $100,000 Total $50,000
Special Equipment TOTAL $150,000
Annual Grain Grain Annual Grain Grain
Seeding, Tillage, Spraying Lease Usage % Allocation Trucks & Trailers Lease Usage % Allocation
enter equipment here $0 0% $0 3/4 ton pickup $9,600 75% $7,200
$0 0% $0 $0 0% $0
$0 0% $0 $0 0% $0
$0 0% $0 $0 0% $0
$0 0% $0 $0 0% $0
$0 0% $0 $0 0% $0
Total $0 $0 Total $7,200
Leased Equipment TOTAL $7,200 $2.88 per acre* Leased equipment costs are listed under Operating Costs on the Summary Page.
Fixed Costs
Conventional Crop Equipment Inventory and Current Values
Special Crop Equipment Inventory and Current Values
Leased Equipment Inventory
Manitoba Agriculture and Resource Development
Guidelines: Crop Production Costs 12
Fuel Costs: Includes fuel used for field work, trucking in inputs and trucking out production.
Machinery Operating Costs: Includes costs for maintenance, repairs, licenses and insurance.
Crop Insurance: (2019 rates)
Other Costs: Includes overhead expenses - hydro, telephone, accounting, buildings, supplies and insurance, etc.
Interest On Operating: Interest charges on operating costs are calculated at 5.5% for six months.
Land Cost:
P&I Cost (based on $1,125,000 Mortgage) = $72,013 payments per year) / 2500 acres = $28.81/acre)
Investment = (Total Investment x Owned Equity %) x Investment Rate % (eg. (($3,000 x 85%) x 1.5%) = $38.25/acre)
Machinery Cost:
P&I Cost (based on $562,500 + $67,500 Loans) = $95,457 + $11,455 payments per year) / 2500 acres = $38.18 and $4.58/acre)
Depreciation (Useage Cost) = (Total Investment - Residual Value) / Years Useful Life (eg. ($500 - ($500 x 25%)) / 15 = $25.00/acre)
Investment = (Total Investment x Owned Equity %) x Investment Rate % (eg. ($500 x 55%) x 1.5%) = $4.13/acre)
Depreciation Cost = Original Cost - Salvage Value Useful LifeInvestment Cost = Original Cost + Salvage Value x Investment Rate 2Estimated Farmgate Values:Target crop prices are based on deferred delivery contract prices for fall 2020.Target yields are estimated based on 5 year MASC average yields.
Storage Cost:Storage costs for each crop are based on estimated yields entered on the Summary page. Budget assumed 60% financed at 4% for 20 years.
Profitability, Breakeven & Risk Analysis Formulas:Gross Revenue = Price per unit x Yield per acre (eg. wheat: $6.75/bu x 59bu/ac = $398.25/ac)
Net Profit = Gross Revenue - Total Cost (eg. wheat: $398.25 gross revenue - $380.44 total cost = $17.81 per acre)
Operating Expense Ratio = (Operating Cost / Gross Revenue) x 100 (eg. wheat: $212.97 operating expense / $380.44 total cost = 53.5%)
$ Revenue Per $ Cost = Gross Revenue / Total Cost (eg. wheat: $398.25 gross revenue / $380.44 total cost = $1.05)
Return on Investment (ROI) = (Gross Revenue - Total Cost) / Total Cost (eg. wheat: ($398.25 gross revenue-$380.44 total cost) /$380.44 total cost = 4.7%)
Estimated Return on Asset (ROA) = (Margin Over Operating - Labour - Machinery Depreciation) / (Land Investment Cost + Machinery Investment Cost)
(eg. wheat: ($185.28 margin - $26.40 labour - $25.00 dep.) / ($3000 land cost + $500.00 conv. machinery + $60.00 special crop. mach.) = 3.76%)
Breakeven Price = Cost / Target Yield (eg. wheat cost $380.44 / 59 bu = $6.45 per bu)
Breakeven Yield = Cost / Target Price per Unit (eg. wheat cost $380.44 / $6.75 bu = 56.4 bu)
Breakeven Yield Risk Ratio = (Target Yield per Acre / Breakeven Yield) x 100 (eg. wheat yield 59 bu/ac / 56.4 bu BE = 105 %)
AgriInsurance Risk Ratio = (AgriInsurance Coverage / Operating Cost) x 100 (eg. wheat coverage $293.75/ac / $212.97 operating expense = 138 %)
Created and maintained by January, 2020
For more information, contact your local
Darren Bond Roy Arnott Sharon ArdronFarm Management Specialist A/Manager Farm Management Farm Management Specialist
Land Taxes: The average cost based on land tax assessment and mill rates of a sample of municipalities growing crops less provincial tax rebate.
Drying Costs: Budget allocates costs only for corn and sunflowers. However, drying costs may be incurred in some years for the other crops.
Other Assumptions
80% Insured Value coverage, $50/acre excess moisture Insurance, and additional hail insurance at $200/acre coverage for all crops. Coverage and costs based on MASC Risk Areas #2, 5, 6, and 12.
Farm storage requirements were assumed to cost $1.75/bushel for 15% of the storage, $2.40/bushel for 70% aerated storage and $4.20/bushel for 15% hopper storage.
Based on approximate average land values. Budget assumed 15% financed at 4% for 25 years, plus 1.5% land equity opportunity cost. Budget can be used to estimate cashflow by removing investment cost.
Based on approximate average machinery values. Budget assumed 45% financed at 4.5% for 7 years, depreciation costs over 15 years with a 25% residual value, plus 1.5% machinery equity opportunity cost. Budget can be used to estimate cashflow by removing depreciation and investment cost.
Manitoba Agriculture and Resource Development Farm ManagementManitoba Agriculture and Resource Devlopment Office or:
Manitoba Agriculture and Resource Development
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