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UNIVERSITY OF CALIFORNIA COOPERATIVE EXTENSION
2013
SAMPLE COSTS TO PRODUCESMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTHDoublecropped on rented land
Steven D Wright UC Cooperative Extension Farm Advisor Tulare County Carol A Collar UC Cooperative Extension Farm Advisor Kings County Alex Souza UC Cooperative Extension Farm Advisor Tulare and Kern Counties Karen M Klonsky UC Cooperative Extension Specialist Department of Agricultural and Resource
Economics UC Davis Richard L De Moura Staff Research Associate Department of Agricultural and Resource Economics
UC Davis
UNIVERSITY OF CALIFORNIA COOPERATIVE EXTENSION
SAMPLE COSTS TO PRODUCE SMALL GRAIN SILAGE San Joaquin Valley - South 2013
STUDY CONTENTS
INTRODUCTIONhelliphelliphelliphelliphelliphelliphelliphelliphellip 2 ASSUMPTIONS hellip3 Cultural Practices and Material Inputshelliphellip3 Labor Interest and Equipment4 Cash Overhead helliphelliphellip 5 Non-Cash Overhead hellip6
REFERENCES helliphelliphellip 7 Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE8 Table 2 COSTS AND RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE9 Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE 10 Table 4 RANGING ANALYSIS 11 Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and OVERHEAD COSTS12 Table 6 HOURLY EQUIPMENT COSTS helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 12 Table 7 OPERATIONS WITH EQUIPMENT and MATERIALS 13
INTRODUCTION
Sample costs to produce small grain silage in the southern San Joaquin Valley are shown in this study The study is intended as a guide only and can be used to make production decisions determine potential returns prepare budgets and evaluate production loans Practices described are based on the production practices considered typical for this crop and region but will not apply to every farm situation Sample costs for labor materials equipment and custom services are based on current figures ldquoYour Costsrdquo columns in Tables 1 and 2 are provided for entering your farm costs
The hypothetical farm operations production practices overhead and calculations are described under the assumptions For additional information or an explanation of the calculations used in the study call the Department of Agricultural and Resource Economics University of California Davis California (530) 752-3589 or the local UC Cooperative Extension office
Sample Cost of Production Studies for many commodities are available from the Department of Agricultural and Resource Economicsrsquo website httpcoststudiesucdavisedu or by calling UC Davis (530) 752-6887 The studies can also be obtained from the local county UC Cooperative Extension offices
The University of California does not discriminate in any of its policies procedures or practices The university is an affirmative actionequal opportunity employer
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 2
ASSUMPTIONS
The assumptions refer to Tables 1 through 7 and pertain to sample costs to produce small grain silage in the southern San Joaquin Valley Practices described represent production practices and materials considered typical of well-managed small grain silage crop Costs materials and practices in this study will not be applicable to all situations Cultural practices vary among growers within the region The data does not represent a single farm and is intended as a guide only The use of trade names and cultural practices in this report does not constitute an endorsement or recommendation by the University of California nor is any criticism implied by omission of other similar products or cultural practices
Farm The hypothetical farm consists of 1500 non-contiguous acres of which 750 acres are rented and 750 owned by the grower Small grain silage followed by corn silage is planted on the rented acres on which the study is based Alfalfa and small grain silage is grown on the grower owned land Some annual costs (cash and non-cash overhead) are allocated to the small grain silage (50) and the corn silage (50) The grower owned land includes 10 acres occupied by buildings and homestead
Cultural Practices and Material Inputs
Land Preparation In the fall five tons of manure is broadcast on the field The fields are disked twice to incorporate the manure and to prepare the seedbed Borders or levees are pulled at planned intervals creating checks for irrigation
Planting Wheat seed is drilled (planted) at a rate of 130 pounds per acre on flat ground Planting normally occurs in the fall and in this study the grower drills the seed the last week in November Wheat is the predominant cultivar planted for small grain silage other cultivars planted are triticale or oats
Fertilization In November prior to land preparation dairy manure at five tons per acre is hauled and applied by a custom operator Some dairies sell their manure but a number of dairies in the region give their manure away if the grower pays to haul it In this study we assume the dairy charges a minimum of $100 per ton for the manure based on 2012 county crop reports and personal conversations with county statisticians A custom operator charges $800 per ton for hauling and spreading Hauling charges may vary by location also additional charges may apply for hauling distances over 25-miles In November following the manure application 100 pounds of N as Urea is spread using a spreader loaned by the fertilizer company In February nitrogen (N) as urea is applied top dress at a rate of 50 pounds per acre In some areas phosphorous may be required for cereal forages at planting Growers should apply fertilizer or soil amendments only after soil tests determine nutrient and pH levels
Irrigation The irrigation costs include the water ($833 per acre-inch) and labor expense (015 hours per acre per irrigation) The crop is irrigated once in January once in March and twice in April at four acre-inches per irrigation The water is supplied by an irrigation district although some growers may use or supplement with well water Water prices vary among irrigations districts The authors agreed that $100 per acre-foot ($833 per acre-inch) is a fair value for this study based upon information from their respective growers
Pest Management The pesticides rates and application practices mentioned in this cost study are listed in the UC IPM Pest Management Guidelines Small Grains Pesticides mentioned in this study are not recommendations but those commonly used in the region For information and pesticide use permits contact the local county Agricultural Commissionerrsquos office For information on other pesticides available pest identification monitoring and management visit the UC IPM website at wwwipmucdavisedu Pest control
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 3
costs can vary considerably each year depending upon local conditions and pest populations in any given year Adjuvants are recommended for use with many pesticides for effective control but are not included in the material costs Pesticide costs will vary by grower location and the growerrsquos purchasing volume These costs are shown as full retail from a single chemical dealer
Pest Control Adviser (PCA) Written recommendations are required for many commercially applied pesticides and are available from licensed pest control advisers In addition the PCA or an independent consultant will monitor the field for agronomic problems including irrigation and nutrition Growers may hire private PCAs or receive the service as part of a service agreement with an agricultural chemical and fertilizer company The company charges $10 per acre to monitor the field for nutrition insects and diseases
Weeds Express MCPA and Axial tank mixed post-emergent herbicides are applied to control weeds They are generally applied in January or when weeds are very small In this study the herbicides are applied commercially by air
Harvest The small grain crop is harvested for silage in the first week of May The grower incurs no harvest costs The buyer swaths chops hauls and packs the silage The grain crop is wilted to about 70 moisture before the harvester chops and packs the forage into a silage pit An estimated custom harvest rate is $1100 to $1200 per ton for swathing chopping and packing in a silage pit located within one mile of the field Hauling over one mile and up to 10 miles add $040 per ton to the basic charge Silage packed in bags cost approximately an additional $700 per ton
Yields The crop is assumed to yield 22 tons per acre at 30 dry matter (DM) Yields are an average high yield based on grower inputs Grower yields will vary depending on the forage type andor mixture and growing conditions
Returns A price of $46 per ton for silage is used to calculate returns over a range of yields The returns are based on the 2012 prices for green chopped wheat forage Table 4 indicates the effects on grower returns based on varying yields and returns
Pickup The pickup travels 024 hours per acre for small grain silage production use per year Costs are estimated and not based on any specific data
Labor Equipment and Interest Costs
Labor Labor rates of $1380 per hour for machine operators and $1104 for general labor includes payroll overhead of 38 The basic hourly wages are $1000 for machine operators and $800 for general labor The overhead includes the employersrsquo share of federal and California state payroll taxes workers compensation insurance for field crops (code 0071) and a percentage for other possible benefits Workersrsquo compensation costs will vary among growers but for this study the cost is based upon the average industry final rate as of January 1 2013 (California Department of Insurance unreferenced) Labor for operations involving machinery are 20 higher than the operation time given in Table 1 to account for the extra labor involved in equipment set up moving maintenance work breaks and field repair
Interest on Operating Capital Interest on operating capital is based on cash operating costs and is calculated monthly until harvest at a nominal rate of 575 per year A nominal interest rate is the typical market cost of borrowed funds The interest cost of post harvest operations is discounted back to the last harvest month using a
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 4
negative interest charge The rate will vary depending upon various factors but the rate in this study is considered a typical lending rate by a farm lending agency as of January 2013
Equipment Operating Costs Repair costs are based on purchase price annual hours of use total hours of life and repair coefficients formulated by the American Society of Agricultural and Biological Engineers (ASABE) Fuel and lubrication costs are also determined by ASABE equations based on maximum power take off (PTO) horsepower and fuel type Prices for on-farm delivery of diesel and gasoline are $407 (excludes excise taxes) and $384 per gallon respectively The fuel prices are the 2012 average costs from the Energy Information Administration monthly data The cost includes a 2 local sales tax for diesel fuel Gasoline includes federal and state excise taxes plus an 8 sales tax The federal and state excise tax on gasoline used on the farm can be refunded for on-farm use when filing your income tax The fuel lube and repair cost per acre for each operation in the ldquoCost Per Acre to Producerdquo table is determined by multiplying the total hourly operating cost in the ldquoHourly Equipment Costsrdquo table for each piece of equipment used from the Operation Time (HrsA) column by the hours per acre Tractor time is 10 higher than implement time for a given operation to account for setup travel and down time
Risk Production risks should not be minimized While this study makes every effort to model a production system based on typical real world practices it cannot fully represent financial agronomic and market risks which affect the profitability and economic viability
Cash Overhead
Cash overhead consists of various cash expenses paid out during the year that are assigned to the whole farm not to a particular operation Overhead costs where applicable are applied 50 to the small grain silage and 50 to the other crop
Property Taxes Counties charge a base property tax rate of 1 on the assessed value of the property In some counties special assessment districts exist and charge additional taxes on property including equipment buildings and improvements For this study county taxes are calculated as 1 of the average value of the property Average value equals new cost plus salvage value divided by 2 on a per acre basis
Insurance Insurance for farm investments varies depending on the assets included and the amount of coverage Property insurance provides coverage for property loss and is charged at 0817 of the average value of the assets over their useful life Liability insurance covers accidents on the farm and costs $1495 for the entire farm or $100 per producing acre Fifty percent of the cost or $050 per acre is allocated to the small grain silage Due to rounding the table number shows as zero (0)
Office Costs are estimated at $50 per acre for the ranch and are not based on any specific information except that there is a cost involved for bookkeeping payroll tax preparation telephone safety supplies and training Fifty percent of the office expenses are allocated to the small grain silage
Land Rent Rent for a single crop ranges from $175 to $250 per acre Being the field is being double cropped $250 per acre is used in this study with 50 charged ($125) to the small grain silage crop
Investment Repairs Annual repairs on investments or capital recovery items that require maintenance are calculated as 2 of the purchase price Repairs are not calculated for land costs
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 5
Non-Cash Overhead
Non-Cash overhead is calculated as the capital recovery cost for equipment and other farm investments Overhead costs where applicable are applied 50 to the forage crop and 50 to the other crop
Capital Recovery Costs Capital recovery cost is the annual depreciation and interest costs for a capital investment and is the amount of money required each year to recover the difference between the purchase price and salvage value (unrecovered capital) The capital recovery costs are equivalent to the annual payment on a loan for the investment with the down payment equal to the discounted salvage value This is a more complex method of calculating ownership costs than straight-line depreciation and opportunity costs but more accurately represents the annual costs of ownership because it takes the time value of money into account (Boehlje and Eidman) The formula for the calculation of the annual capital recovery costs is ((Purchase Price ndash Salvage Value) x Capital Recovery Factor) + (Salvage Value x Interest Rate)
Salvage Value Salvage value is the estimated value of an investment at the end of its useful life For farm machinery the value is a percentage of the new cost of the investment (Boehlje and Eidman) The value is calculated from equations developed by ASABE based on equipment type and years of life The life in years is estimated by dividing the wear out life as given by ASABE by the annual hours of use in the operation For other investments including irrigation systems buildings and miscellaneous equipment the value at the end of its useful life is zero The salvage value for land is the purchase price because land does not depreciate
Capital Recovery Factor Capital recovery factor is the amortization factor or annual payment whose present value at compound interest is 1 The amortization factor is a table value that corresponds to the interest rate and equipment life
Interest Rate The interest rate of 475 is used to calculate capital recovery The rate will vary depending upon size of loan and other lending agency conditions but is a suggested rate by a farm lending agency in January 2013
Tools Includes shop equipmenttools and other tools used on the farm and does not recognize any specific inventory
Irrigation System The permanent irrigation system consists of wells pumps and motors and buried mainline with alfalfa valves The maintenance costs are included in the land rental price
Land Cropland with district water suitable for small grain silage production typically ranges in value among counties from $12000 to $14000 per acre The land in this study that is owned by the grower cost $12000 per acre Costs for the portion of owned land planted to doublecropped small grains are split equally between the two crops
Equipment Although farm equipment is purchased new or used the study shows the current purchase price for new equipment The new purchase price is adjusted to 60 to indicate a mix of new and used equipment Equipment costs are composed of three parts non-cash overhead cash overhead and operating costs Both of the overhead factors have been discussed in previous sections The operating costs consist of repairs fuel and lubrication and are discussed under operating costs
Table Values Due to rounding the totals may be slightly different from the sum of the components
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 6
REFERENCES
Agricultural Commissioner Annual Crop Reports 2012 Fresno County httpwwwcofresnocaus Tulare County httpagcommcotularecaus Kings County httpwwwcountyofkingscom
American Society of Agricultural and Biological Engineers March 2011 American Society of Agricultural Engineers Standards Agricultural Machinery Management Data ASAE D4977 St Joseph Missouri httpelibraryasabeorg Internet accessed February 2013
American Society of Farm Managers and Rural Appraisers 2013 Trends in Agricultural Land amp Lease Values California Chapter of the American Society of Farms Managers and Rural Appraisers Woodbridge CA
Boehlje Michael D and Vernon R Eidman 1984 Farm Management John Wiley and Sons New York New York
California State Board of equalization Fuel Tax Division Tax Rates Internet accessed April 2008 httpwwwboecagovsptaxprogspftdrateshtm
Doane Editors 1984 Facts and Figures for Farmers Doane Publishing St Louis MO
Energy Information Administration 2012 Weekly Retail on Highway Diesel and Gasoline Prices Internet accessed April 2013 httptontoeixdoegovooginfowohdp
Wright Steven D Carol A Collar Karen M Klonsky and Richard L De Moura 2008 Sample Costs to Produce Small Grain Silage San Joaquin Valley University of California Cooperative Extension Department of Agricultural and Resource Economics Davis CA
University of California Statewide Integrated Pest Management Program UC Pest Management Guidelines Small Grains 2012 University of California Davis CA httpwwwipmucdavisedu
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 7
UC COOPERATIVE EXTENSION Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Cash and Labor Cost per acre
Operation Time
(HrsA) Labor
Cost Fuel Lube amp
Repairs Material
Cost Custom
Rent Total Your Cost Cost
Cultural Fertilize Preplant (Manure) 000 0 0 0 5 40 45 Land Prep Disk 2X 022 4 11 5 0 0 20 Land Prep Pull Borders 004 1 1 0 0 0 2 Fertilize Preplant (Urea) 014 2 4 1 75 0 83 Plant Small Grains Mixture 012 2 4 2 56 0 63 Weed Postemergent (Express MCPA Axial) 000 0 0 0 54 8 62 Irrigate Water amp Labor 060 7 0 0 133 0 140 Fertilize Top Dress (Urea) 000 0 0 0 38 8 46 Pest Control AdviserConsultant 000 0 0 0 0 10 10 Pickup Truck Use 024 4 2 1 0 0 7 TOTAL CULTURAL COSTS 136 19 23 9 360 66 477 Harvest Harvest Paid by Buyer 000 0 0 0 0 0 TOTAL HARVEST COSTS 000 0 0 0 0 0 0
12Interest on operating capital 575 TOTAL OPERATING COSTSACRE 1 19 23 9 360 66 489 CASH OVERHEAD Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTS 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD (Capital Recovery) Per Producing Annual Cost
Acre Capital Recovery Buildings 27 2 2 Fuel Tanks 2 0 0 Global Positioning System (GPS) 14 3 3 Shop Tools 5 0 0 Equipment 96 11 11 TOTAL NON-CASH OVERHEAD COSTS 144 17 17 TOTAL COSTSACRE 658 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 8
UC COOPERATIVE EXTENSION Table 2 COSTS and RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Quantity Price or Value or Your Acre Unit CostUnit CostAcre Cost
GROSS RETURNS Small Grain Silage TOTAL RETURNS
2200 ton 4600 4600
1012 1012
OPERATING COSTS Fertilizer 158 Manure (raw) 500 ton 100 5 46-0-0 (Urea) 15000 lb N 075 113 Deliver amp Spread Manure 500 ton 800 40 Seed 56 Small Grain Mix (wheat) 13000 lb 043 56 Herbicide 54 Express (soluble granules) 100 oz 2649 26 MCPA Amine 100 pint 368 4 Axial XL 1600 floz 147 24 Custom 27 Air Application 200 acre 800 16 Pest Control AdviserConsultant 100 acre 1000 10 Irrigation 133 Water 1600 acin 833 133 Labor 19 Labor (machine) 091 hrs 1380 13 Labor (non-machine) 060 hrs 1104 7 Machinery 319 Fuel - Gas 000 gal 407 0 Fuel - Diesel 597 gal 384 23 Lube 3 Machinery repair 6 Interest on operating capital 575 12 TOTAL OPERATING COSTSACRE 489 NET RETURNS ABOVE OPERATING COSTS 523 CASH OVERHEAD COSTS Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTSACRE 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD COSTS (Capital Recovery) Buildings 2 Fuel Tanks 0 Global Positioning System (GPS) 3 Shop Tools 0 Equipment 11 TOTAL NON-CASH OVERHEAD COSTSACRE 17 TOTAL COSTSACRE 658 NET RETURNS ABOVE TOTAL COSTS 354 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 9
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
UNIVERSITY OF CALIFORNIA COOPERATIVE EXTENSION
SAMPLE COSTS TO PRODUCE SMALL GRAIN SILAGE San Joaquin Valley - South 2013
STUDY CONTENTS
INTRODUCTIONhelliphelliphelliphelliphelliphelliphelliphelliphellip 2 ASSUMPTIONS hellip3 Cultural Practices and Material Inputshelliphellip3 Labor Interest and Equipment4 Cash Overhead helliphelliphellip 5 Non-Cash Overhead hellip6
REFERENCES helliphelliphellip 7 Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE8 Table 2 COSTS AND RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE9 Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE 10 Table 4 RANGING ANALYSIS 11 Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and OVERHEAD COSTS12 Table 6 HOURLY EQUIPMENT COSTS helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 12 Table 7 OPERATIONS WITH EQUIPMENT and MATERIALS 13
INTRODUCTION
Sample costs to produce small grain silage in the southern San Joaquin Valley are shown in this study The study is intended as a guide only and can be used to make production decisions determine potential returns prepare budgets and evaluate production loans Practices described are based on the production practices considered typical for this crop and region but will not apply to every farm situation Sample costs for labor materials equipment and custom services are based on current figures ldquoYour Costsrdquo columns in Tables 1 and 2 are provided for entering your farm costs
The hypothetical farm operations production practices overhead and calculations are described under the assumptions For additional information or an explanation of the calculations used in the study call the Department of Agricultural and Resource Economics University of California Davis California (530) 752-3589 or the local UC Cooperative Extension office
Sample Cost of Production Studies for many commodities are available from the Department of Agricultural and Resource Economicsrsquo website httpcoststudiesucdavisedu or by calling UC Davis (530) 752-6887 The studies can also be obtained from the local county UC Cooperative Extension offices
The University of California does not discriminate in any of its policies procedures or practices The university is an affirmative actionequal opportunity employer
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 2
ASSUMPTIONS
The assumptions refer to Tables 1 through 7 and pertain to sample costs to produce small grain silage in the southern San Joaquin Valley Practices described represent production practices and materials considered typical of well-managed small grain silage crop Costs materials and practices in this study will not be applicable to all situations Cultural practices vary among growers within the region The data does not represent a single farm and is intended as a guide only The use of trade names and cultural practices in this report does not constitute an endorsement or recommendation by the University of California nor is any criticism implied by omission of other similar products or cultural practices
Farm The hypothetical farm consists of 1500 non-contiguous acres of which 750 acres are rented and 750 owned by the grower Small grain silage followed by corn silage is planted on the rented acres on which the study is based Alfalfa and small grain silage is grown on the grower owned land Some annual costs (cash and non-cash overhead) are allocated to the small grain silage (50) and the corn silage (50) The grower owned land includes 10 acres occupied by buildings and homestead
Cultural Practices and Material Inputs
Land Preparation In the fall five tons of manure is broadcast on the field The fields are disked twice to incorporate the manure and to prepare the seedbed Borders or levees are pulled at planned intervals creating checks for irrigation
Planting Wheat seed is drilled (planted) at a rate of 130 pounds per acre on flat ground Planting normally occurs in the fall and in this study the grower drills the seed the last week in November Wheat is the predominant cultivar planted for small grain silage other cultivars planted are triticale or oats
Fertilization In November prior to land preparation dairy manure at five tons per acre is hauled and applied by a custom operator Some dairies sell their manure but a number of dairies in the region give their manure away if the grower pays to haul it In this study we assume the dairy charges a minimum of $100 per ton for the manure based on 2012 county crop reports and personal conversations with county statisticians A custom operator charges $800 per ton for hauling and spreading Hauling charges may vary by location also additional charges may apply for hauling distances over 25-miles In November following the manure application 100 pounds of N as Urea is spread using a spreader loaned by the fertilizer company In February nitrogen (N) as urea is applied top dress at a rate of 50 pounds per acre In some areas phosphorous may be required for cereal forages at planting Growers should apply fertilizer or soil amendments only after soil tests determine nutrient and pH levels
Irrigation The irrigation costs include the water ($833 per acre-inch) and labor expense (015 hours per acre per irrigation) The crop is irrigated once in January once in March and twice in April at four acre-inches per irrigation The water is supplied by an irrigation district although some growers may use or supplement with well water Water prices vary among irrigations districts The authors agreed that $100 per acre-foot ($833 per acre-inch) is a fair value for this study based upon information from their respective growers
Pest Management The pesticides rates and application practices mentioned in this cost study are listed in the UC IPM Pest Management Guidelines Small Grains Pesticides mentioned in this study are not recommendations but those commonly used in the region For information and pesticide use permits contact the local county Agricultural Commissionerrsquos office For information on other pesticides available pest identification monitoring and management visit the UC IPM website at wwwipmucdavisedu Pest control
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 3
costs can vary considerably each year depending upon local conditions and pest populations in any given year Adjuvants are recommended for use with many pesticides for effective control but are not included in the material costs Pesticide costs will vary by grower location and the growerrsquos purchasing volume These costs are shown as full retail from a single chemical dealer
Pest Control Adviser (PCA) Written recommendations are required for many commercially applied pesticides and are available from licensed pest control advisers In addition the PCA or an independent consultant will monitor the field for agronomic problems including irrigation and nutrition Growers may hire private PCAs or receive the service as part of a service agreement with an agricultural chemical and fertilizer company The company charges $10 per acre to monitor the field for nutrition insects and diseases
Weeds Express MCPA and Axial tank mixed post-emergent herbicides are applied to control weeds They are generally applied in January or when weeds are very small In this study the herbicides are applied commercially by air
Harvest The small grain crop is harvested for silage in the first week of May The grower incurs no harvest costs The buyer swaths chops hauls and packs the silage The grain crop is wilted to about 70 moisture before the harvester chops and packs the forage into a silage pit An estimated custom harvest rate is $1100 to $1200 per ton for swathing chopping and packing in a silage pit located within one mile of the field Hauling over one mile and up to 10 miles add $040 per ton to the basic charge Silage packed in bags cost approximately an additional $700 per ton
Yields The crop is assumed to yield 22 tons per acre at 30 dry matter (DM) Yields are an average high yield based on grower inputs Grower yields will vary depending on the forage type andor mixture and growing conditions
Returns A price of $46 per ton for silage is used to calculate returns over a range of yields The returns are based on the 2012 prices for green chopped wheat forage Table 4 indicates the effects on grower returns based on varying yields and returns
Pickup The pickup travels 024 hours per acre for small grain silage production use per year Costs are estimated and not based on any specific data
Labor Equipment and Interest Costs
Labor Labor rates of $1380 per hour for machine operators and $1104 for general labor includes payroll overhead of 38 The basic hourly wages are $1000 for machine operators and $800 for general labor The overhead includes the employersrsquo share of federal and California state payroll taxes workers compensation insurance for field crops (code 0071) and a percentage for other possible benefits Workersrsquo compensation costs will vary among growers but for this study the cost is based upon the average industry final rate as of January 1 2013 (California Department of Insurance unreferenced) Labor for operations involving machinery are 20 higher than the operation time given in Table 1 to account for the extra labor involved in equipment set up moving maintenance work breaks and field repair
Interest on Operating Capital Interest on operating capital is based on cash operating costs and is calculated monthly until harvest at a nominal rate of 575 per year A nominal interest rate is the typical market cost of borrowed funds The interest cost of post harvest operations is discounted back to the last harvest month using a
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 4
negative interest charge The rate will vary depending upon various factors but the rate in this study is considered a typical lending rate by a farm lending agency as of January 2013
Equipment Operating Costs Repair costs are based on purchase price annual hours of use total hours of life and repair coefficients formulated by the American Society of Agricultural and Biological Engineers (ASABE) Fuel and lubrication costs are also determined by ASABE equations based on maximum power take off (PTO) horsepower and fuel type Prices for on-farm delivery of diesel and gasoline are $407 (excludes excise taxes) and $384 per gallon respectively The fuel prices are the 2012 average costs from the Energy Information Administration monthly data The cost includes a 2 local sales tax for diesel fuel Gasoline includes federal and state excise taxes plus an 8 sales tax The federal and state excise tax on gasoline used on the farm can be refunded for on-farm use when filing your income tax The fuel lube and repair cost per acre for each operation in the ldquoCost Per Acre to Producerdquo table is determined by multiplying the total hourly operating cost in the ldquoHourly Equipment Costsrdquo table for each piece of equipment used from the Operation Time (HrsA) column by the hours per acre Tractor time is 10 higher than implement time for a given operation to account for setup travel and down time
Risk Production risks should not be minimized While this study makes every effort to model a production system based on typical real world practices it cannot fully represent financial agronomic and market risks which affect the profitability and economic viability
Cash Overhead
Cash overhead consists of various cash expenses paid out during the year that are assigned to the whole farm not to a particular operation Overhead costs where applicable are applied 50 to the small grain silage and 50 to the other crop
Property Taxes Counties charge a base property tax rate of 1 on the assessed value of the property In some counties special assessment districts exist and charge additional taxes on property including equipment buildings and improvements For this study county taxes are calculated as 1 of the average value of the property Average value equals new cost plus salvage value divided by 2 on a per acre basis
Insurance Insurance for farm investments varies depending on the assets included and the amount of coverage Property insurance provides coverage for property loss and is charged at 0817 of the average value of the assets over their useful life Liability insurance covers accidents on the farm and costs $1495 for the entire farm or $100 per producing acre Fifty percent of the cost or $050 per acre is allocated to the small grain silage Due to rounding the table number shows as zero (0)
Office Costs are estimated at $50 per acre for the ranch and are not based on any specific information except that there is a cost involved for bookkeeping payroll tax preparation telephone safety supplies and training Fifty percent of the office expenses are allocated to the small grain silage
Land Rent Rent for a single crop ranges from $175 to $250 per acre Being the field is being double cropped $250 per acre is used in this study with 50 charged ($125) to the small grain silage crop
Investment Repairs Annual repairs on investments or capital recovery items that require maintenance are calculated as 2 of the purchase price Repairs are not calculated for land costs
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 5
Non-Cash Overhead
Non-Cash overhead is calculated as the capital recovery cost for equipment and other farm investments Overhead costs where applicable are applied 50 to the forage crop and 50 to the other crop
Capital Recovery Costs Capital recovery cost is the annual depreciation and interest costs for a capital investment and is the amount of money required each year to recover the difference between the purchase price and salvage value (unrecovered capital) The capital recovery costs are equivalent to the annual payment on a loan for the investment with the down payment equal to the discounted salvage value This is a more complex method of calculating ownership costs than straight-line depreciation and opportunity costs but more accurately represents the annual costs of ownership because it takes the time value of money into account (Boehlje and Eidman) The formula for the calculation of the annual capital recovery costs is ((Purchase Price ndash Salvage Value) x Capital Recovery Factor) + (Salvage Value x Interest Rate)
Salvage Value Salvage value is the estimated value of an investment at the end of its useful life For farm machinery the value is a percentage of the new cost of the investment (Boehlje and Eidman) The value is calculated from equations developed by ASABE based on equipment type and years of life The life in years is estimated by dividing the wear out life as given by ASABE by the annual hours of use in the operation For other investments including irrigation systems buildings and miscellaneous equipment the value at the end of its useful life is zero The salvage value for land is the purchase price because land does not depreciate
Capital Recovery Factor Capital recovery factor is the amortization factor or annual payment whose present value at compound interest is 1 The amortization factor is a table value that corresponds to the interest rate and equipment life
Interest Rate The interest rate of 475 is used to calculate capital recovery The rate will vary depending upon size of loan and other lending agency conditions but is a suggested rate by a farm lending agency in January 2013
Tools Includes shop equipmenttools and other tools used on the farm and does not recognize any specific inventory
Irrigation System The permanent irrigation system consists of wells pumps and motors and buried mainline with alfalfa valves The maintenance costs are included in the land rental price
Land Cropland with district water suitable for small grain silage production typically ranges in value among counties from $12000 to $14000 per acre The land in this study that is owned by the grower cost $12000 per acre Costs for the portion of owned land planted to doublecropped small grains are split equally between the two crops
Equipment Although farm equipment is purchased new or used the study shows the current purchase price for new equipment The new purchase price is adjusted to 60 to indicate a mix of new and used equipment Equipment costs are composed of three parts non-cash overhead cash overhead and operating costs Both of the overhead factors have been discussed in previous sections The operating costs consist of repairs fuel and lubrication and are discussed under operating costs
Table Values Due to rounding the totals may be slightly different from the sum of the components
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 6
REFERENCES
Agricultural Commissioner Annual Crop Reports 2012 Fresno County httpwwwcofresnocaus Tulare County httpagcommcotularecaus Kings County httpwwwcountyofkingscom
American Society of Agricultural and Biological Engineers March 2011 American Society of Agricultural Engineers Standards Agricultural Machinery Management Data ASAE D4977 St Joseph Missouri httpelibraryasabeorg Internet accessed February 2013
American Society of Farm Managers and Rural Appraisers 2013 Trends in Agricultural Land amp Lease Values California Chapter of the American Society of Farms Managers and Rural Appraisers Woodbridge CA
Boehlje Michael D and Vernon R Eidman 1984 Farm Management John Wiley and Sons New York New York
California State Board of equalization Fuel Tax Division Tax Rates Internet accessed April 2008 httpwwwboecagovsptaxprogspftdrateshtm
Doane Editors 1984 Facts and Figures for Farmers Doane Publishing St Louis MO
Energy Information Administration 2012 Weekly Retail on Highway Diesel and Gasoline Prices Internet accessed April 2013 httptontoeixdoegovooginfowohdp
Wright Steven D Carol A Collar Karen M Klonsky and Richard L De Moura 2008 Sample Costs to Produce Small Grain Silage San Joaquin Valley University of California Cooperative Extension Department of Agricultural and Resource Economics Davis CA
University of California Statewide Integrated Pest Management Program UC Pest Management Guidelines Small Grains 2012 University of California Davis CA httpwwwipmucdavisedu
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 7
UC COOPERATIVE EXTENSION Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Cash and Labor Cost per acre
Operation Time
(HrsA) Labor
Cost Fuel Lube amp
Repairs Material
Cost Custom
Rent Total Your Cost Cost
Cultural Fertilize Preplant (Manure) 000 0 0 0 5 40 45 Land Prep Disk 2X 022 4 11 5 0 0 20 Land Prep Pull Borders 004 1 1 0 0 0 2 Fertilize Preplant (Urea) 014 2 4 1 75 0 83 Plant Small Grains Mixture 012 2 4 2 56 0 63 Weed Postemergent (Express MCPA Axial) 000 0 0 0 54 8 62 Irrigate Water amp Labor 060 7 0 0 133 0 140 Fertilize Top Dress (Urea) 000 0 0 0 38 8 46 Pest Control AdviserConsultant 000 0 0 0 0 10 10 Pickup Truck Use 024 4 2 1 0 0 7 TOTAL CULTURAL COSTS 136 19 23 9 360 66 477 Harvest Harvest Paid by Buyer 000 0 0 0 0 0 TOTAL HARVEST COSTS 000 0 0 0 0 0 0
12Interest on operating capital 575 TOTAL OPERATING COSTSACRE 1 19 23 9 360 66 489 CASH OVERHEAD Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTS 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD (Capital Recovery) Per Producing Annual Cost
Acre Capital Recovery Buildings 27 2 2 Fuel Tanks 2 0 0 Global Positioning System (GPS) 14 3 3 Shop Tools 5 0 0 Equipment 96 11 11 TOTAL NON-CASH OVERHEAD COSTS 144 17 17 TOTAL COSTSACRE 658 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 8
UC COOPERATIVE EXTENSION Table 2 COSTS and RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Quantity Price or Value or Your Acre Unit CostUnit CostAcre Cost
GROSS RETURNS Small Grain Silage TOTAL RETURNS
2200 ton 4600 4600
1012 1012
OPERATING COSTS Fertilizer 158 Manure (raw) 500 ton 100 5 46-0-0 (Urea) 15000 lb N 075 113 Deliver amp Spread Manure 500 ton 800 40 Seed 56 Small Grain Mix (wheat) 13000 lb 043 56 Herbicide 54 Express (soluble granules) 100 oz 2649 26 MCPA Amine 100 pint 368 4 Axial XL 1600 floz 147 24 Custom 27 Air Application 200 acre 800 16 Pest Control AdviserConsultant 100 acre 1000 10 Irrigation 133 Water 1600 acin 833 133 Labor 19 Labor (machine) 091 hrs 1380 13 Labor (non-machine) 060 hrs 1104 7 Machinery 319 Fuel - Gas 000 gal 407 0 Fuel - Diesel 597 gal 384 23 Lube 3 Machinery repair 6 Interest on operating capital 575 12 TOTAL OPERATING COSTSACRE 489 NET RETURNS ABOVE OPERATING COSTS 523 CASH OVERHEAD COSTS Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTSACRE 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD COSTS (Capital Recovery) Buildings 2 Fuel Tanks 0 Global Positioning System (GPS) 3 Shop Tools 0 Equipment 11 TOTAL NON-CASH OVERHEAD COSTSACRE 17 TOTAL COSTSACRE 658 NET RETURNS ABOVE TOTAL COSTS 354 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 9
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
ASSUMPTIONS
The assumptions refer to Tables 1 through 7 and pertain to sample costs to produce small grain silage in the southern San Joaquin Valley Practices described represent production practices and materials considered typical of well-managed small grain silage crop Costs materials and practices in this study will not be applicable to all situations Cultural practices vary among growers within the region The data does not represent a single farm and is intended as a guide only The use of trade names and cultural practices in this report does not constitute an endorsement or recommendation by the University of California nor is any criticism implied by omission of other similar products or cultural practices
Farm The hypothetical farm consists of 1500 non-contiguous acres of which 750 acres are rented and 750 owned by the grower Small grain silage followed by corn silage is planted on the rented acres on which the study is based Alfalfa and small grain silage is grown on the grower owned land Some annual costs (cash and non-cash overhead) are allocated to the small grain silage (50) and the corn silage (50) The grower owned land includes 10 acres occupied by buildings and homestead
Cultural Practices and Material Inputs
Land Preparation In the fall five tons of manure is broadcast on the field The fields are disked twice to incorporate the manure and to prepare the seedbed Borders or levees are pulled at planned intervals creating checks for irrigation
Planting Wheat seed is drilled (planted) at a rate of 130 pounds per acre on flat ground Planting normally occurs in the fall and in this study the grower drills the seed the last week in November Wheat is the predominant cultivar planted for small grain silage other cultivars planted are triticale or oats
Fertilization In November prior to land preparation dairy manure at five tons per acre is hauled and applied by a custom operator Some dairies sell their manure but a number of dairies in the region give their manure away if the grower pays to haul it In this study we assume the dairy charges a minimum of $100 per ton for the manure based on 2012 county crop reports and personal conversations with county statisticians A custom operator charges $800 per ton for hauling and spreading Hauling charges may vary by location also additional charges may apply for hauling distances over 25-miles In November following the manure application 100 pounds of N as Urea is spread using a spreader loaned by the fertilizer company In February nitrogen (N) as urea is applied top dress at a rate of 50 pounds per acre In some areas phosphorous may be required for cereal forages at planting Growers should apply fertilizer or soil amendments only after soil tests determine nutrient and pH levels
Irrigation The irrigation costs include the water ($833 per acre-inch) and labor expense (015 hours per acre per irrigation) The crop is irrigated once in January once in March and twice in April at four acre-inches per irrigation The water is supplied by an irrigation district although some growers may use or supplement with well water Water prices vary among irrigations districts The authors agreed that $100 per acre-foot ($833 per acre-inch) is a fair value for this study based upon information from their respective growers
Pest Management The pesticides rates and application practices mentioned in this cost study are listed in the UC IPM Pest Management Guidelines Small Grains Pesticides mentioned in this study are not recommendations but those commonly used in the region For information and pesticide use permits contact the local county Agricultural Commissionerrsquos office For information on other pesticides available pest identification monitoring and management visit the UC IPM website at wwwipmucdavisedu Pest control
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 3
costs can vary considerably each year depending upon local conditions and pest populations in any given year Adjuvants are recommended for use with many pesticides for effective control but are not included in the material costs Pesticide costs will vary by grower location and the growerrsquos purchasing volume These costs are shown as full retail from a single chemical dealer
Pest Control Adviser (PCA) Written recommendations are required for many commercially applied pesticides and are available from licensed pest control advisers In addition the PCA or an independent consultant will monitor the field for agronomic problems including irrigation and nutrition Growers may hire private PCAs or receive the service as part of a service agreement with an agricultural chemical and fertilizer company The company charges $10 per acre to monitor the field for nutrition insects and diseases
Weeds Express MCPA and Axial tank mixed post-emergent herbicides are applied to control weeds They are generally applied in January or when weeds are very small In this study the herbicides are applied commercially by air
Harvest The small grain crop is harvested for silage in the first week of May The grower incurs no harvest costs The buyer swaths chops hauls and packs the silage The grain crop is wilted to about 70 moisture before the harvester chops and packs the forage into a silage pit An estimated custom harvest rate is $1100 to $1200 per ton for swathing chopping and packing in a silage pit located within one mile of the field Hauling over one mile and up to 10 miles add $040 per ton to the basic charge Silage packed in bags cost approximately an additional $700 per ton
Yields The crop is assumed to yield 22 tons per acre at 30 dry matter (DM) Yields are an average high yield based on grower inputs Grower yields will vary depending on the forage type andor mixture and growing conditions
Returns A price of $46 per ton for silage is used to calculate returns over a range of yields The returns are based on the 2012 prices for green chopped wheat forage Table 4 indicates the effects on grower returns based on varying yields and returns
Pickup The pickup travels 024 hours per acre for small grain silage production use per year Costs are estimated and not based on any specific data
Labor Equipment and Interest Costs
Labor Labor rates of $1380 per hour for machine operators and $1104 for general labor includes payroll overhead of 38 The basic hourly wages are $1000 for machine operators and $800 for general labor The overhead includes the employersrsquo share of federal and California state payroll taxes workers compensation insurance for field crops (code 0071) and a percentage for other possible benefits Workersrsquo compensation costs will vary among growers but for this study the cost is based upon the average industry final rate as of January 1 2013 (California Department of Insurance unreferenced) Labor for operations involving machinery are 20 higher than the operation time given in Table 1 to account for the extra labor involved in equipment set up moving maintenance work breaks and field repair
Interest on Operating Capital Interest on operating capital is based on cash operating costs and is calculated monthly until harvest at a nominal rate of 575 per year A nominal interest rate is the typical market cost of borrowed funds The interest cost of post harvest operations is discounted back to the last harvest month using a
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 4
negative interest charge The rate will vary depending upon various factors but the rate in this study is considered a typical lending rate by a farm lending agency as of January 2013
Equipment Operating Costs Repair costs are based on purchase price annual hours of use total hours of life and repair coefficients formulated by the American Society of Agricultural and Biological Engineers (ASABE) Fuel and lubrication costs are also determined by ASABE equations based on maximum power take off (PTO) horsepower and fuel type Prices for on-farm delivery of diesel and gasoline are $407 (excludes excise taxes) and $384 per gallon respectively The fuel prices are the 2012 average costs from the Energy Information Administration monthly data The cost includes a 2 local sales tax for diesel fuel Gasoline includes federal and state excise taxes plus an 8 sales tax The federal and state excise tax on gasoline used on the farm can be refunded for on-farm use when filing your income tax The fuel lube and repair cost per acre for each operation in the ldquoCost Per Acre to Producerdquo table is determined by multiplying the total hourly operating cost in the ldquoHourly Equipment Costsrdquo table for each piece of equipment used from the Operation Time (HrsA) column by the hours per acre Tractor time is 10 higher than implement time for a given operation to account for setup travel and down time
Risk Production risks should not be minimized While this study makes every effort to model a production system based on typical real world practices it cannot fully represent financial agronomic and market risks which affect the profitability and economic viability
Cash Overhead
Cash overhead consists of various cash expenses paid out during the year that are assigned to the whole farm not to a particular operation Overhead costs where applicable are applied 50 to the small grain silage and 50 to the other crop
Property Taxes Counties charge a base property tax rate of 1 on the assessed value of the property In some counties special assessment districts exist and charge additional taxes on property including equipment buildings and improvements For this study county taxes are calculated as 1 of the average value of the property Average value equals new cost plus salvage value divided by 2 on a per acre basis
Insurance Insurance for farm investments varies depending on the assets included and the amount of coverage Property insurance provides coverage for property loss and is charged at 0817 of the average value of the assets over their useful life Liability insurance covers accidents on the farm and costs $1495 for the entire farm or $100 per producing acre Fifty percent of the cost or $050 per acre is allocated to the small grain silage Due to rounding the table number shows as zero (0)
Office Costs are estimated at $50 per acre for the ranch and are not based on any specific information except that there is a cost involved for bookkeeping payroll tax preparation telephone safety supplies and training Fifty percent of the office expenses are allocated to the small grain silage
Land Rent Rent for a single crop ranges from $175 to $250 per acre Being the field is being double cropped $250 per acre is used in this study with 50 charged ($125) to the small grain silage crop
Investment Repairs Annual repairs on investments or capital recovery items that require maintenance are calculated as 2 of the purchase price Repairs are not calculated for land costs
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 5
Non-Cash Overhead
Non-Cash overhead is calculated as the capital recovery cost for equipment and other farm investments Overhead costs where applicable are applied 50 to the forage crop and 50 to the other crop
Capital Recovery Costs Capital recovery cost is the annual depreciation and interest costs for a capital investment and is the amount of money required each year to recover the difference between the purchase price and salvage value (unrecovered capital) The capital recovery costs are equivalent to the annual payment on a loan for the investment with the down payment equal to the discounted salvage value This is a more complex method of calculating ownership costs than straight-line depreciation and opportunity costs but more accurately represents the annual costs of ownership because it takes the time value of money into account (Boehlje and Eidman) The formula for the calculation of the annual capital recovery costs is ((Purchase Price ndash Salvage Value) x Capital Recovery Factor) + (Salvage Value x Interest Rate)
Salvage Value Salvage value is the estimated value of an investment at the end of its useful life For farm machinery the value is a percentage of the new cost of the investment (Boehlje and Eidman) The value is calculated from equations developed by ASABE based on equipment type and years of life The life in years is estimated by dividing the wear out life as given by ASABE by the annual hours of use in the operation For other investments including irrigation systems buildings and miscellaneous equipment the value at the end of its useful life is zero The salvage value for land is the purchase price because land does not depreciate
Capital Recovery Factor Capital recovery factor is the amortization factor or annual payment whose present value at compound interest is 1 The amortization factor is a table value that corresponds to the interest rate and equipment life
Interest Rate The interest rate of 475 is used to calculate capital recovery The rate will vary depending upon size of loan and other lending agency conditions but is a suggested rate by a farm lending agency in January 2013
Tools Includes shop equipmenttools and other tools used on the farm and does not recognize any specific inventory
Irrigation System The permanent irrigation system consists of wells pumps and motors and buried mainline with alfalfa valves The maintenance costs are included in the land rental price
Land Cropland with district water suitable for small grain silage production typically ranges in value among counties from $12000 to $14000 per acre The land in this study that is owned by the grower cost $12000 per acre Costs for the portion of owned land planted to doublecropped small grains are split equally between the two crops
Equipment Although farm equipment is purchased new or used the study shows the current purchase price for new equipment The new purchase price is adjusted to 60 to indicate a mix of new and used equipment Equipment costs are composed of three parts non-cash overhead cash overhead and operating costs Both of the overhead factors have been discussed in previous sections The operating costs consist of repairs fuel and lubrication and are discussed under operating costs
Table Values Due to rounding the totals may be slightly different from the sum of the components
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 6
REFERENCES
Agricultural Commissioner Annual Crop Reports 2012 Fresno County httpwwwcofresnocaus Tulare County httpagcommcotularecaus Kings County httpwwwcountyofkingscom
American Society of Agricultural and Biological Engineers March 2011 American Society of Agricultural Engineers Standards Agricultural Machinery Management Data ASAE D4977 St Joseph Missouri httpelibraryasabeorg Internet accessed February 2013
American Society of Farm Managers and Rural Appraisers 2013 Trends in Agricultural Land amp Lease Values California Chapter of the American Society of Farms Managers and Rural Appraisers Woodbridge CA
Boehlje Michael D and Vernon R Eidman 1984 Farm Management John Wiley and Sons New York New York
California State Board of equalization Fuel Tax Division Tax Rates Internet accessed April 2008 httpwwwboecagovsptaxprogspftdrateshtm
Doane Editors 1984 Facts and Figures for Farmers Doane Publishing St Louis MO
Energy Information Administration 2012 Weekly Retail on Highway Diesel and Gasoline Prices Internet accessed April 2013 httptontoeixdoegovooginfowohdp
Wright Steven D Carol A Collar Karen M Klonsky and Richard L De Moura 2008 Sample Costs to Produce Small Grain Silage San Joaquin Valley University of California Cooperative Extension Department of Agricultural and Resource Economics Davis CA
University of California Statewide Integrated Pest Management Program UC Pest Management Guidelines Small Grains 2012 University of California Davis CA httpwwwipmucdavisedu
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 7
UC COOPERATIVE EXTENSION Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Cash and Labor Cost per acre
Operation Time
(HrsA) Labor
Cost Fuel Lube amp
Repairs Material
Cost Custom
Rent Total Your Cost Cost
Cultural Fertilize Preplant (Manure) 000 0 0 0 5 40 45 Land Prep Disk 2X 022 4 11 5 0 0 20 Land Prep Pull Borders 004 1 1 0 0 0 2 Fertilize Preplant (Urea) 014 2 4 1 75 0 83 Plant Small Grains Mixture 012 2 4 2 56 0 63 Weed Postemergent (Express MCPA Axial) 000 0 0 0 54 8 62 Irrigate Water amp Labor 060 7 0 0 133 0 140 Fertilize Top Dress (Urea) 000 0 0 0 38 8 46 Pest Control AdviserConsultant 000 0 0 0 0 10 10 Pickup Truck Use 024 4 2 1 0 0 7 TOTAL CULTURAL COSTS 136 19 23 9 360 66 477 Harvest Harvest Paid by Buyer 000 0 0 0 0 0 TOTAL HARVEST COSTS 000 0 0 0 0 0 0
12Interest on operating capital 575 TOTAL OPERATING COSTSACRE 1 19 23 9 360 66 489 CASH OVERHEAD Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTS 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD (Capital Recovery) Per Producing Annual Cost
Acre Capital Recovery Buildings 27 2 2 Fuel Tanks 2 0 0 Global Positioning System (GPS) 14 3 3 Shop Tools 5 0 0 Equipment 96 11 11 TOTAL NON-CASH OVERHEAD COSTS 144 17 17 TOTAL COSTSACRE 658 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 8
UC COOPERATIVE EXTENSION Table 2 COSTS and RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Quantity Price or Value or Your Acre Unit CostUnit CostAcre Cost
GROSS RETURNS Small Grain Silage TOTAL RETURNS
2200 ton 4600 4600
1012 1012
OPERATING COSTS Fertilizer 158 Manure (raw) 500 ton 100 5 46-0-0 (Urea) 15000 lb N 075 113 Deliver amp Spread Manure 500 ton 800 40 Seed 56 Small Grain Mix (wheat) 13000 lb 043 56 Herbicide 54 Express (soluble granules) 100 oz 2649 26 MCPA Amine 100 pint 368 4 Axial XL 1600 floz 147 24 Custom 27 Air Application 200 acre 800 16 Pest Control AdviserConsultant 100 acre 1000 10 Irrigation 133 Water 1600 acin 833 133 Labor 19 Labor (machine) 091 hrs 1380 13 Labor (non-machine) 060 hrs 1104 7 Machinery 319 Fuel - Gas 000 gal 407 0 Fuel - Diesel 597 gal 384 23 Lube 3 Machinery repair 6 Interest on operating capital 575 12 TOTAL OPERATING COSTSACRE 489 NET RETURNS ABOVE OPERATING COSTS 523 CASH OVERHEAD COSTS Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTSACRE 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD COSTS (Capital Recovery) Buildings 2 Fuel Tanks 0 Global Positioning System (GPS) 3 Shop Tools 0 Equipment 11 TOTAL NON-CASH OVERHEAD COSTSACRE 17 TOTAL COSTSACRE 658 NET RETURNS ABOVE TOTAL COSTS 354 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 9
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
costs can vary considerably each year depending upon local conditions and pest populations in any given year Adjuvants are recommended for use with many pesticides for effective control but are not included in the material costs Pesticide costs will vary by grower location and the growerrsquos purchasing volume These costs are shown as full retail from a single chemical dealer
Pest Control Adviser (PCA) Written recommendations are required for many commercially applied pesticides and are available from licensed pest control advisers In addition the PCA or an independent consultant will monitor the field for agronomic problems including irrigation and nutrition Growers may hire private PCAs or receive the service as part of a service agreement with an agricultural chemical and fertilizer company The company charges $10 per acre to monitor the field for nutrition insects and diseases
Weeds Express MCPA and Axial tank mixed post-emergent herbicides are applied to control weeds They are generally applied in January or when weeds are very small In this study the herbicides are applied commercially by air
Harvest The small grain crop is harvested for silage in the first week of May The grower incurs no harvest costs The buyer swaths chops hauls and packs the silage The grain crop is wilted to about 70 moisture before the harvester chops and packs the forage into a silage pit An estimated custom harvest rate is $1100 to $1200 per ton for swathing chopping and packing in a silage pit located within one mile of the field Hauling over one mile and up to 10 miles add $040 per ton to the basic charge Silage packed in bags cost approximately an additional $700 per ton
Yields The crop is assumed to yield 22 tons per acre at 30 dry matter (DM) Yields are an average high yield based on grower inputs Grower yields will vary depending on the forage type andor mixture and growing conditions
Returns A price of $46 per ton for silage is used to calculate returns over a range of yields The returns are based on the 2012 prices for green chopped wheat forage Table 4 indicates the effects on grower returns based on varying yields and returns
Pickup The pickup travels 024 hours per acre for small grain silage production use per year Costs are estimated and not based on any specific data
Labor Equipment and Interest Costs
Labor Labor rates of $1380 per hour for machine operators and $1104 for general labor includes payroll overhead of 38 The basic hourly wages are $1000 for machine operators and $800 for general labor The overhead includes the employersrsquo share of federal and California state payroll taxes workers compensation insurance for field crops (code 0071) and a percentage for other possible benefits Workersrsquo compensation costs will vary among growers but for this study the cost is based upon the average industry final rate as of January 1 2013 (California Department of Insurance unreferenced) Labor for operations involving machinery are 20 higher than the operation time given in Table 1 to account for the extra labor involved in equipment set up moving maintenance work breaks and field repair
Interest on Operating Capital Interest on operating capital is based on cash operating costs and is calculated monthly until harvest at a nominal rate of 575 per year A nominal interest rate is the typical market cost of borrowed funds The interest cost of post harvest operations is discounted back to the last harvest month using a
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 4
negative interest charge The rate will vary depending upon various factors but the rate in this study is considered a typical lending rate by a farm lending agency as of January 2013
Equipment Operating Costs Repair costs are based on purchase price annual hours of use total hours of life and repair coefficients formulated by the American Society of Agricultural and Biological Engineers (ASABE) Fuel and lubrication costs are also determined by ASABE equations based on maximum power take off (PTO) horsepower and fuel type Prices for on-farm delivery of diesel and gasoline are $407 (excludes excise taxes) and $384 per gallon respectively The fuel prices are the 2012 average costs from the Energy Information Administration monthly data The cost includes a 2 local sales tax for diesel fuel Gasoline includes federal and state excise taxes plus an 8 sales tax The federal and state excise tax on gasoline used on the farm can be refunded for on-farm use when filing your income tax The fuel lube and repair cost per acre for each operation in the ldquoCost Per Acre to Producerdquo table is determined by multiplying the total hourly operating cost in the ldquoHourly Equipment Costsrdquo table for each piece of equipment used from the Operation Time (HrsA) column by the hours per acre Tractor time is 10 higher than implement time for a given operation to account for setup travel and down time
Risk Production risks should not be minimized While this study makes every effort to model a production system based on typical real world practices it cannot fully represent financial agronomic and market risks which affect the profitability and economic viability
Cash Overhead
Cash overhead consists of various cash expenses paid out during the year that are assigned to the whole farm not to a particular operation Overhead costs where applicable are applied 50 to the small grain silage and 50 to the other crop
Property Taxes Counties charge a base property tax rate of 1 on the assessed value of the property In some counties special assessment districts exist and charge additional taxes on property including equipment buildings and improvements For this study county taxes are calculated as 1 of the average value of the property Average value equals new cost plus salvage value divided by 2 on a per acre basis
Insurance Insurance for farm investments varies depending on the assets included and the amount of coverage Property insurance provides coverage for property loss and is charged at 0817 of the average value of the assets over their useful life Liability insurance covers accidents on the farm and costs $1495 for the entire farm or $100 per producing acre Fifty percent of the cost or $050 per acre is allocated to the small grain silage Due to rounding the table number shows as zero (0)
Office Costs are estimated at $50 per acre for the ranch and are not based on any specific information except that there is a cost involved for bookkeeping payroll tax preparation telephone safety supplies and training Fifty percent of the office expenses are allocated to the small grain silage
Land Rent Rent for a single crop ranges from $175 to $250 per acre Being the field is being double cropped $250 per acre is used in this study with 50 charged ($125) to the small grain silage crop
Investment Repairs Annual repairs on investments or capital recovery items that require maintenance are calculated as 2 of the purchase price Repairs are not calculated for land costs
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 5
Non-Cash Overhead
Non-Cash overhead is calculated as the capital recovery cost for equipment and other farm investments Overhead costs where applicable are applied 50 to the forage crop and 50 to the other crop
Capital Recovery Costs Capital recovery cost is the annual depreciation and interest costs for a capital investment and is the amount of money required each year to recover the difference between the purchase price and salvage value (unrecovered capital) The capital recovery costs are equivalent to the annual payment on a loan for the investment with the down payment equal to the discounted salvage value This is a more complex method of calculating ownership costs than straight-line depreciation and opportunity costs but more accurately represents the annual costs of ownership because it takes the time value of money into account (Boehlje and Eidman) The formula for the calculation of the annual capital recovery costs is ((Purchase Price ndash Salvage Value) x Capital Recovery Factor) + (Salvage Value x Interest Rate)
Salvage Value Salvage value is the estimated value of an investment at the end of its useful life For farm machinery the value is a percentage of the new cost of the investment (Boehlje and Eidman) The value is calculated from equations developed by ASABE based on equipment type and years of life The life in years is estimated by dividing the wear out life as given by ASABE by the annual hours of use in the operation For other investments including irrigation systems buildings and miscellaneous equipment the value at the end of its useful life is zero The salvage value for land is the purchase price because land does not depreciate
Capital Recovery Factor Capital recovery factor is the amortization factor or annual payment whose present value at compound interest is 1 The amortization factor is a table value that corresponds to the interest rate and equipment life
Interest Rate The interest rate of 475 is used to calculate capital recovery The rate will vary depending upon size of loan and other lending agency conditions but is a suggested rate by a farm lending agency in January 2013
Tools Includes shop equipmenttools and other tools used on the farm and does not recognize any specific inventory
Irrigation System The permanent irrigation system consists of wells pumps and motors and buried mainline with alfalfa valves The maintenance costs are included in the land rental price
Land Cropland with district water suitable for small grain silage production typically ranges in value among counties from $12000 to $14000 per acre The land in this study that is owned by the grower cost $12000 per acre Costs for the portion of owned land planted to doublecropped small grains are split equally between the two crops
Equipment Although farm equipment is purchased new or used the study shows the current purchase price for new equipment The new purchase price is adjusted to 60 to indicate a mix of new and used equipment Equipment costs are composed of three parts non-cash overhead cash overhead and operating costs Both of the overhead factors have been discussed in previous sections The operating costs consist of repairs fuel and lubrication and are discussed under operating costs
Table Values Due to rounding the totals may be slightly different from the sum of the components
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 6
REFERENCES
Agricultural Commissioner Annual Crop Reports 2012 Fresno County httpwwwcofresnocaus Tulare County httpagcommcotularecaus Kings County httpwwwcountyofkingscom
American Society of Agricultural and Biological Engineers March 2011 American Society of Agricultural Engineers Standards Agricultural Machinery Management Data ASAE D4977 St Joseph Missouri httpelibraryasabeorg Internet accessed February 2013
American Society of Farm Managers and Rural Appraisers 2013 Trends in Agricultural Land amp Lease Values California Chapter of the American Society of Farms Managers and Rural Appraisers Woodbridge CA
Boehlje Michael D and Vernon R Eidman 1984 Farm Management John Wiley and Sons New York New York
California State Board of equalization Fuel Tax Division Tax Rates Internet accessed April 2008 httpwwwboecagovsptaxprogspftdrateshtm
Doane Editors 1984 Facts and Figures for Farmers Doane Publishing St Louis MO
Energy Information Administration 2012 Weekly Retail on Highway Diesel and Gasoline Prices Internet accessed April 2013 httptontoeixdoegovooginfowohdp
Wright Steven D Carol A Collar Karen M Klonsky and Richard L De Moura 2008 Sample Costs to Produce Small Grain Silage San Joaquin Valley University of California Cooperative Extension Department of Agricultural and Resource Economics Davis CA
University of California Statewide Integrated Pest Management Program UC Pest Management Guidelines Small Grains 2012 University of California Davis CA httpwwwipmucdavisedu
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 7
UC COOPERATIVE EXTENSION Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Cash and Labor Cost per acre
Operation Time
(HrsA) Labor
Cost Fuel Lube amp
Repairs Material
Cost Custom
Rent Total Your Cost Cost
Cultural Fertilize Preplant (Manure) 000 0 0 0 5 40 45 Land Prep Disk 2X 022 4 11 5 0 0 20 Land Prep Pull Borders 004 1 1 0 0 0 2 Fertilize Preplant (Urea) 014 2 4 1 75 0 83 Plant Small Grains Mixture 012 2 4 2 56 0 63 Weed Postemergent (Express MCPA Axial) 000 0 0 0 54 8 62 Irrigate Water amp Labor 060 7 0 0 133 0 140 Fertilize Top Dress (Urea) 000 0 0 0 38 8 46 Pest Control AdviserConsultant 000 0 0 0 0 10 10 Pickup Truck Use 024 4 2 1 0 0 7 TOTAL CULTURAL COSTS 136 19 23 9 360 66 477 Harvest Harvest Paid by Buyer 000 0 0 0 0 0 TOTAL HARVEST COSTS 000 0 0 0 0 0 0
12Interest on operating capital 575 TOTAL OPERATING COSTSACRE 1 19 23 9 360 66 489 CASH OVERHEAD Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTS 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD (Capital Recovery) Per Producing Annual Cost
Acre Capital Recovery Buildings 27 2 2 Fuel Tanks 2 0 0 Global Positioning System (GPS) 14 3 3 Shop Tools 5 0 0 Equipment 96 11 11 TOTAL NON-CASH OVERHEAD COSTS 144 17 17 TOTAL COSTSACRE 658 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 8
UC COOPERATIVE EXTENSION Table 2 COSTS and RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Quantity Price or Value or Your Acre Unit CostUnit CostAcre Cost
GROSS RETURNS Small Grain Silage TOTAL RETURNS
2200 ton 4600 4600
1012 1012
OPERATING COSTS Fertilizer 158 Manure (raw) 500 ton 100 5 46-0-0 (Urea) 15000 lb N 075 113 Deliver amp Spread Manure 500 ton 800 40 Seed 56 Small Grain Mix (wheat) 13000 lb 043 56 Herbicide 54 Express (soluble granules) 100 oz 2649 26 MCPA Amine 100 pint 368 4 Axial XL 1600 floz 147 24 Custom 27 Air Application 200 acre 800 16 Pest Control AdviserConsultant 100 acre 1000 10 Irrigation 133 Water 1600 acin 833 133 Labor 19 Labor (machine) 091 hrs 1380 13 Labor (non-machine) 060 hrs 1104 7 Machinery 319 Fuel - Gas 000 gal 407 0 Fuel - Diesel 597 gal 384 23 Lube 3 Machinery repair 6 Interest on operating capital 575 12 TOTAL OPERATING COSTSACRE 489 NET RETURNS ABOVE OPERATING COSTS 523 CASH OVERHEAD COSTS Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTSACRE 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD COSTS (Capital Recovery) Buildings 2 Fuel Tanks 0 Global Positioning System (GPS) 3 Shop Tools 0 Equipment 11 TOTAL NON-CASH OVERHEAD COSTSACRE 17 TOTAL COSTSACRE 658 NET RETURNS ABOVE TOTAL COSTS 354 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 9
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
negative interest charge The rate will vary depending upon various factors but the rate in this study is considered a typical lending rate by a farm lending agency as of January 2013
Equipment Operating Costs Repair costs are based on purchase price annual hours of use total hours of life and repair coefficients formulated by the American Society of Agricultural and Biological Engineers (ASABE) Fuel and lubrication costs are also determined by ASABE equations based on maximum power take off (PTO) horsepower and fuel type Prices for on-farm delivery of diesel and gasoline are $407 (excludes excise taxes) and $384 per gallon respectively The fuel prices are the 2012 average costs from the Energy Information Administration monthly data The cost includes a 2 local sales tax for diesel fuel Gasoline includes federal and state excise taxes plus an 8 sales tax The federal and state excise tax on gasoline used on the farm can be refunded for on-farm use when filing your income tax The fuel lube and repair cost per acre for each operation in the ldquoCost Per Acre to Producerdquo table is determined by multiplying the total hourly operating cost in the ldquoHourly Equipment Costsrdquo table for each piece of equipment used from the Operation Time (HrsA) column by the hours per acre Tractor time is 10 higher than implement time for a given operation to account for setup travel and down time
Risk Production risks should not be minimized While this study makes every effort to model a production system based on typical real world practices it cannot fully represent financial agronomic and market risks which affect the profitability and economic viability
Cash Overhead
Cash overhead consists of various cash expenses paid out during the year that are assigned to the whole farm not to a particular operation Overhead costs where applicable are applied 50 to the small grain silage and 50 to the other crop
Property Taxes Counties charge a base property tax rate of 1 on the assessed value of the property In some counties special assessment districts exist and charge additional taxes on property including equipment buildings and improvements For this study county taxes are calculated as 1 of the average value of the property Average value equals new cost plus salvage value divided by 2 on a per acre basis
Insurance Insurance for farm investments varies depending on the assets included and the amount of coverage Property insurance provides coverage for property loss and is charged at 0817 of the average value of the assets over their useful life Liability insurance covers accidents on the farm and costs $1495 for the entire farm or $100 per producing acre Fifty percent of the cost or $050 per acre is allocated to the small grain silage Due to rounding the table number shows as zero (0)
Office Costs are estimated at $50 per acre for the ranch and are not based on any specific information except that there is a cost involved for bookkeeping payroll tax preparation telephone safety supplies and training Fifty percent of the office expenses are allocated to the small grain silage
Land Rent Rent for a single crop ranges from $175 to $250 per acre Being the field is being double cropped $250 per acre is used in this study with 50 charged ($125) to the small grain silage crop
Investment Repairs Annual repairs on investments or capital recovery items that require maintenance are calculated as 2 of the purchase price Repairs are not calculated for land costs
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 5
Non-Cash Overhead
Non-Cash overhead is calculated as the capital recovery cost for equipment and other farm investments Overhead costs where applicable are applied 50 to the forage crop and 50 to the other crop
Capital Recovery Costs Capital recovery cost is the annual depreciation and interest costs for a capital investment and is the amount of money required each year to recover the difference between the purchase price and salvage value (unrecovered capital) The capital recovery costs are equivalent to the annual payment on a loan for the investment with the down payment equal to the discounted salvage value This is a more complex method of calculating ownership costs than straight-line depreciation and opportunity costs but more accurately represents the annual costs of ownership because it takes the time value of money into account (Boehlje and Eidman) The formula for the calculation of the annual capital recovery costs is ((Purchase Price ndash Salvage Value) x Capital Recovery Factor) + (Salvage Value x Interest Rate)
Salvage Value Salvage value is the estimated value of an investment at the end of its useful life For farm machinery the value is a percentage of the new cost of the investment (Boehlje and Eidman) The value is calculated from equations developed by ASABE based on equipment type and years of life The life in years is estimated by dividing the wear out life as given by ASABE by the annual hours of use in the operation For other investments including irrigation systems buildings and miscellaneous equipment the value at the end of its useful life is zero The salvage value for land is the purchase price because land does not depreciate
Capital Recovery Factor Capital recovery factor is the amortization factor or annual payment whose present value at compound interest is 1 The amortization factor is a table value that corresponds to the interest rate and equipment life
Interest Rate The interest rate of 475 is used to calculate capital recovery The rate will vary depending upon size of loan and other lending agency conditions but is a suggested rate by a farm lending agency in January 2013
Tools Includes shop equipmenttools and other tools used on the farm and does not recognize any specific inventory
Irrigation System The permanent irrigation system consists of wells pumps and motors and buried mainline with alfalfa valves The maintenance costs are included in the land rental price
Land Cropland with district water suitable for small grain silage production typically ranges in value among counties from $12000 to $14000 per acre The land in this study that is owned by the grower cost $12000 per acre Costs for the portion of owned land planted to doublecropped small grains are split equally between the two crops
Equipment Although farm equipment is purchased new or used the study shows the current purchase price for new equipment The new purchase price is adjusted to 60 to indicate a mix of new and used equipment Equipment costs are composed of three parts non-cash overhead cash overhead and operating costs Both of the overhead factors have been discussed in previous sections The operating costs consist of repairs fuel and lubrication and are discussed under operating costs
Table Values Due to rounding the totals may be slightly different from the sum of the components
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 6
REFERENCES
Agricultural Commissioner Annual Crop Reports 2012 Fresno County httpwwwcofresnocaus Tulare County httpagcommcotularecaus Kings County httpwwwcountyofkingscom
American Society of Agricultural and Biological Engineers March 2011 American Society of Agricultural Engineers Standards Agricultural Machinery Management Data ASAE D4977 St Joseph Missouri httpelibraryasabeorg Internet accessed February 2013
American Society of Farm Managers and Rural Appraisers 2013 Trends in Agricultural Land amp Lease Values California Chapter of the American Society of Farms Managers and Rural Appraisers Woodbridge CA
Boehlje Michael D and Vernon R Eidman 1984 Farm Management John Wiley and Sons New York New York
California State Board of equalization Fuel Tax Division Tax Rates Internet accessed April 2008 httpwwwboecagovsptaxprogspftdrateshtm
Doane Editors 1984 Facts and Figures for Farmers Doane Publishing St Louis MO
Energy Information Administration 2012 Weekly Retail on Highway Diesel and Gasoline Prices Internet accessed April 2013 httptontoeixdoegovooginfowohdp
Wright Steven D Carol A Collar Karen M Klonsky and Richard L De Moura 2008 Sample Costs to Produce Small Grain Silage San Joaquin Valley University of California Cooperative Extension Department of Agricultural and Resource Economics Davis CA
University of California Statewide Integrated Pest Management Program UC Pest Management Guidelines Small Grains 2012 University of California Davis CA httpwwwipmucdavisedu
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 7
UC COOPERATIVE EXTENSION Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Cash and Labor Cost per acre
Operation Time
(HrsA) Labor
Cost Fuel Lube amp
Repairs Material
Cost Custom
Rent Total Your Cost Cost
Cultural Fertilize Preplant (Manure) 000 0 0 0 5 40 45 Land Prep Disk 2X 022 4 11 5 0 0 20 Land Prep Pull Borders 004 1 1 0 0 0 2 Fertilize Preplant (Urea) 014 2 4 1 75 0 83 Plant Small Grains Mixture 012 2 4 2 56 0 63 Weed Postemergent (Express MCPA Axial) 000 0 0 0 54 8 62 Irrigate Water amp Labor 060 7 0 0 133 0 140 Fertilize Top Dress (Urea) 000 0 0 0 38 8 46 Pest Control AdviserConsultant 000 0 0 0 0 10 10 Pickup Truck Use 024 4 2 1 0 0 7 TOTAL CULTURAL COSTS 136 19 23 9 360 66 477 Harvest Harvest Paid by Buyer 000 0 0 0 0 0 TOTAL HARVEST COSTS 000 0 0 0 0 0 0
12Interest on operating capital 575 TOTAL OPERATING COSTSACRE 1 19 23 9 360 66 489 CASH OVERHEAD Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTS 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD (Capital Recovery) Per Producing Annual Cost
Acre Capital Recovery Buildings 27 2 2 Fuel Tanks 2 0 0 Global Positioning System (GPS) 14 3 3 Shop Tools 5 0 0 Equipment 96 11 11 TOTAL NON-CASH OVERHEAD COSTS 144 17 17 TOTAL COSTSACRE 658 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 8
UC COOPERATIVE EXTENSION Table 2 COSTS and RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Quantity Price or Value or Your Acre Unit CostUnit CostAcre Cost
GROSS RETURNS Small Grain Silage TOTAL RETURNS
2200 ton 4600 4600
1012 1012
OPERATING COSTS Fertilizer 158 Manure (raw) 500 ton 100 5 46-0-0 (Urea) 15000 lb N 075 113 Deliver amp Spread Manure 500 ton 800 40 Seed 56 Small Grain Mix (wheat) 13000 lb 043 56 Herbicide 54 Express (soluble granules) 100 oz 2649 26 MCPA Amine 100 pint 368 4 Axial XL 1600 floz 147 24 Custom 27 Air Application 200 acre 800 16 Pest Control AdviserConsultant 100 acre 1000 10 Irrigation 133 Water 1600 acin 833 133 Labor 19 Labor (machine) 091 hrs 1380 13 Labor (non-machine) 060 hrs 1104 7 Machinery 319 Fuel - Gas 000 gal 407 0 Fuel - Diesel 597 gal 384 23 Lube 3 Machinery repair 6 Interest on operating capital 575 12 TOTAL OPERATING COSTSACRE 489 NET RETURNS ABOVE OPERATING COSTS 523 CASH OVERHEAD COSTS Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTSACRE 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD COSTS (Capital Recovery) Buildings 2 Fuel Tanks 0 Global Positioning System (GPS) 3 Shop Tools 0 Equipment 11 TOTAL NON-CASH OVERHEAD COSTSACRE 17 TOTAL COSTSACRE 658 NET RETURNS ABOVE TOTAL COSTS 354 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 9
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
Non-Cash Overhead
Non-Cash overhead is calculated as the capital recovery cost for equipment and other farm investments Overhead costs where applicable are applied 50 to the forage crop and 50 to the other crop
Capital Recovery Costs Capital recovery cost is the annual depreciation and interest costs for a capital investment and is the amount of money required each year to recover the difference between the purchase price and salvage value (unrecovered capital) The capital recovery costs are equivalent to the annual payment on a loan for the investment with the down payment equal to the discounted salvage value This is a more complex method of calculating ownership costs than straight-line depreciation and opportunity costs but more accurately represents the annual costs of ownership because it takes the time value of money into account (Boehlje and Eidman) The formula for the calculation of the annual capital recovery costs is ((Purchase Price ndash Salvage Value) x Capital Recovery Factor) + (Salvage Value x Interest Rate)
Salvage Value Salvage value is the estimated value of an investment at the end of its useful life For farm machinery the value is a percentage of the new cost of the investment (Boehlje and Eidman) The value is calculated from equations developed by ASABE based on equipment type and years of life The life in years is estimated by dividing the wear out life as given by ASABE by the annual hours of use in the operation For other investments including irrigation systems buildings and miscellaneous equipment the value at the end of its useful life is zero The salvage value for land is the purchase price because land does not depreciate
Capital Recovery Factor Capital recovery factor is the amortization factor or annual payment whose present value at compound interest is 1 The amortization factor is a table value that corresponds to the interest rate and equipment life
Interest Rate The interest rate of 475 is used to calculate capital recovery The rate will vary depending upon size of loan and other lending agency conditions but is a suggested rate by a farm lending agency in January 2013
Tools Includes shop equipmenttools and other tools used on the farm and does not recognize any specific inventory
Irrigation System The permanent irrigation system consists of wells pumps and motors and buried mainline with alfalfa valves The maintenance costs are included in the land rental price
Land Cropland with district water suitable for small grain silage production typically ranges in value among counties from $12000 to $14000 per acre The land in this study that is owned by the grower cost $12000 per acre Costs for the portion of owned land planted to doublecropped small grains are split equally between the two crops
Equipment Although farm equipment is purchased new or used the study shows the current purchase price for new equipment The new purchase price is adjusted to 60 to indicate a mix of new and used equipment Equipment costs are composed of three parts non-cash overhead cash overhead and operating costs Both of the overhead factors have been discussed in previous sections The operating costs consist of repairs fuel and lubrication and are discussed under operating costs
Table Values Due to rounding the totals may be slightly different from the sum of the components
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 6
REFERENCES
Agricultural Commissioner Annual Crop Reports 2012 Fresno County httpwwwcofresnocaus Tulare County httpagcommcotularecaus Kings County httpwwwcountyofkingscom
American Society of Agricultural and Biological Engineers March 2011 American Society of Agricultural Engineers Standards Agricultural Machinery Management Data ASAE D4977 St Joseph Missouri httpelibraryasabeorg Internet accessed February 2013
American Society of Farm Managers and Rural Appraisers 2013 Trends in Agricultural Land amp Lease Values California Chapter of the American Society of Farms Managers and Rural Appraisers Woodbridge CA
Boehlje Michael D and Vernon R Eidman 1984 Farm Management John Wiley and Sons New York New York
California State Board of equalization Fuel Tax Division Tax Rates Internet accessed April 2008 httpwwwboecagovsptaxprogspftdrateshtm
Doane Editors 1984 Facts and Figures for Farmers Doane Publishing St Louis MO
Energy Information Administration 2012 Weekly Retail on Highway Diesel and Gasoline Prices Internet accessed April 2013 httptontoeixdoegovooginfowohdp
Wright Steven D Carol A Collar Karen M Klonsky and Richard L De Moura 2008 Sample Costs to Produce Small Grain Silage San Joaquin Valley University of California Cooperative Extension Department of Agricultural and Resource Economics Davis CA
University of California Statewide Integrated Pest Management Program UC Pest Management Guidelines Small Grains 2012 University of California Davis CA httpwwwipmucdavisedu
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 7
UC COOPERATIVE EXTENSION Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Cash and Labor Cost per acre
Operation Time
(HrsA) Labor
Cost Fuel Lube amp
Repairs Material
Cost Custom
Rent Total Your Cost Cost
Cultural Fertilize Preplant (Manure) 000 0 0 0 5 40 45 Land Prep Disk 2X 022 4 11 5 0 0 20 Land Prep Pull Borders 004 1 1 0 0 0 2 Fertilize Preplant (Urea) 014 2 4 1 75 0 83 Plant Small Grains Mixture 012 2 4 2 56 0 63 Weed Postemergent (Express MCPA Axial) 000 0 0 0 54 8 62 Irrigate Water amp Labor 060 7 0 0 133 0 140 Fertilize Top Dress (Urea) 000 0 0 0 38 8 46 Pest Control AdviserConsultant 000 0 0 0 0 10 10 Pickup Truck Use 024 4 2 1 0 0 7 TOTAL CULTURAL COSTS 136 19 23 9 360 66 477 Harvest Harvest Paid by Buyer 000 0 0 0 0 0 TOTAL HARVEST COSTS 000 0 0 0 0 0 0
12Interest on operating capital 575 TOTAL OPERATING COSTSACRE 1 19 23 9 360 66 489 CASH OVERHEAD Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTS 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD (Capital Recovery) Per Producing Annual Cost
Acre Capital Recovery Buildings 27 2 2 Fuel Tanks 2 0 0 Global Positioning System (GPS) 14 3 3 Shop Tools 5 0 0 Equipment 96 11 11 TOTAL NON-CASH OVERHEAD COSTS 144 17 17 TOTAL COSTSACRE 658 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 8
UC COOPERATIVE EXTENSION Table 2 COSTS and RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Quantity Price or Value or Your Acre Unit CostUnit CostAcre Cost
GROSS RETURNS Small Grain Silage TOTAL RETURNS
2200 ton 4600 4600
1012 1012
OPERATING COSTS Fertilizer 158 Manure (raw) 500 ton 100 5 46-0-0 (Urea) 15000 lb N 075 113 Deliver amp Spread Manure 500 ton 800 40 Seed 56 Small Grain Mix (wheat) 13000 lb 043 56 Herbicide 54 Express (soluble granules) 100 oz 2649 26 MCPA Amine 100 pint 368 4 Axial XL 1600 floz 147 24 Custom 27 Air Application 200 acre 800 16 Pest Control AdviserConsultant 100 acre 1000 10 Irrigation 133 Water 1600 acin 833 133 Labor 19 Labor (machine) 091 hrs 1380 13 Labor (non-machine) 060 hrs 1104 7 Machinery 319 Fuel - Gas 000 gal 407 0 Fuel - Diesel 597 gal 384 23 Lube 3 Machinery repair 6 Interest on operating capital 575 12 TOTAL OPERATING COSTSACRE 489 NET RETURNS ABOVE OPERATING COSTS 523 CASH OVERHEAD COSTS Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTSACRE 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD COSTS (Capital Recovery) Buildings 2 Fuel Tanks 0 Global Positioning System (GPS) 3 Shop Tools 0 Equipment 11 TOTAL NON-CASH OVERHEAD COSTSACRE 17 TOTAL COSTSACRE 658 NET RETURNS ABOVE TOTAL COSTS 354 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 9
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
REFERENCES
Agricultural Commissioner Annual Crop Reports 2012 Fresno County httpwwwcofresnocaus Tulare County httpagcommcotularecaus Kings County httpwwwcountyofkingscom
American Society of Agricultural and Biological Engineers March 2011 American Society of Agricultural Engineers Standards Agricultural Machinery Management Data ASAE D4977 St Joseph Missouri httpelibraryasabeorg Internet accessed February 2013
American Society of Farm Managers and Rural Appraisers 2013 Trends in Agricultural Land amp Lease Values California Chapter of the American Society of Farms Managers and Rural Appraisers Woodbridge CA
Boehlje Michael D and Vernon R Eidman 1984 Farm Management John Wiley and Sons New York New York
California State Board of equalization Fuel Tax Division Tax Rates Internet accessed April 2008 httpwwwboecagovsptaxprogspftdrateshtm
Doane Editors 1984 Facts and Figures for Farmers Doane Publishing St Louis MO
Energy Information Administration 2012 Weekly Retail on Highway Diesel and Gasoline Prices Internet accessed April 2013 httptontoeixdoegovooginfowohdp
Wright Steven D Carol A Collar Karen M Klonsky and Richard L De Moura 2008 Sample Costs to Produce Small Grain Silage San Joaquin Valley University of California Cooperative Extension Department of Agricultural and Resource Economics Davis CA
University of California Statewide Integrated Pest Management Program UC Pest Management Guidelines Small Grains 2012 University of California Davis CA httpwwwipmucdavisedu
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 7
UC COOPERATIVE EXTENSION Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Cash and Labor Cost per acre
Operation Time
(HrsA) Labor
Cost Fuel Lube amp
Repairs Material
Cost Custom
Rent Total Your Cost Cost
Cultural Fertilize Preplant (Manure) 000 0 0 0 5 40 45 Land Prep Disk 2X 022 4 11 5 0 0 20 Land Prep Pull Borders 004 1 1 0 0 0 2 Fertilize Preplant (Urea) 014 2 4 1 75 0 83 Plant Small Grains Mixture 012 2 4 2 56 0 63 Weed Postemergent (Express MCPA Axial) 000 0 0 0 54 8 62 Irrigate Water amp Labor 060 7 0 0 133 0 140 Fertilize Top Dress (Urea) 000 0 0 0 38 8 46 Pest Control AdviserConsultant 000 0 0 0 0 10 10 Pickup Truck Use 024 4 2 1 0 0 7 TOTAL CULTURAL COSTS 136 19 23 9 360 66 477 Harvest Harvest Paid by Buyer 000 0 0 0 0 0 TOTAL HARVEST COSTS 000 0 0 0 0 0 0
12Interest on operating capital 575 TOTAL OPERATING COSTSACRE 1 19 23 9 360 66 489 CASH OVERHEAD Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTS 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD (Capital Recovery) Per Producing Annual Cost
Acre Capital Recovery Buildings 27 2 2 Fuel Tanks 2 0 0 Global Positioning System (GPS) 14 3 3 Shop Tools 5 0 0 Equipment 96 11 11 TOTAL NON-CASH OVERHEAD COSTS 144 17 17 TOTAL COSTSACRE 658 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 8
UC COOPERATIVE EXTENSION Table 2 COSTS and RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Quantity Price or Value or Your Acre Unit CostUnit CostAcre Cost
GROSS RETURNS Small Grain Silage TOTAL RETURNS
2200 ton 4600 4600
1012 1012
OPERATING COSTS Fertilizer 158 Manure (raw) 500 ton 100 5 46-0-0 (Urea) 15000 lb N 075 113 Deliver amp Spread Manure 500 ton 800 40 Seed 56 Small Grain Mix (wheat) 13000 lb 043 56 Herbicide 54 Express (soluble granules) 100 oz 2649 26 MCPA Amine 100 pint 368 4 Axial XL 1600 floz 147 24 Custom 27 Air Application 200 acre 800 16 Pest Control AdviserConsultant 100 acre 1000 10 Irrigation 133 Water 1600 acin 833 133 Labor 19 Labor (machine) 091 hrs 1380 13 Labor (non-machine) 060 hrs 1104 7 Machinery 319 Fuel - Gas 000 gal 407 0 Fuel - Diesel 597 gal 384 23 Lube 3 Machinery repair 6 Interest on operating capital 575 12 TOTAL OPERATING COSTSACRE 489 NET RETURNS ABOVE OPERATING COSTS 523 CASH OVERHEAD COSTS Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTSACRE 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD COSTS (Capital Recovery) Buildings 2 Fuel Tanks 0 Global Positioning System (GPS) 3 Shop Tools 0 Equipment 11 TOTAL NON-CASH OVERHEAD COSTSACRE 17 TOTAL COSTSACRE 658 NET RETURNS ABOVE TOTAL COSTS 354 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 9
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
UC COOPERATIVE EXTENSION Table 1 COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Cash and Labor Cost per acre
Operation Time
(HrsA) Labor
Cost Fuel Lube amp
Repairs Material
Cost Custom
Rent Total Your Cost Cost
Cultural Fertilize Preplant (Manure) 000 0 0 0 5 40 45 Land Prep Disk 2X 022 4 11 5 0 0 20 Land Prep Pull Borders 004 1 1 0 0 0 2 Fertilize Preplant (Urea) 014 2 4 1 75 0 83 Plant Small Grains Mixture 012 2 4 2 56 0 63 Weed Postemergent (Express MCPA Axial) 000 0 0 0 54 8 62 Irrigate Water amp Labor 060 7 0 0 133 0 140 Fertilize Top Dress (Urea) 000 0 0 0 38 8 46 Pest Control AdviserConsultant 000 0 0 0 0 10 10 Pickup Truck Use 024 4 2 1 0 0 7 TOTAL CULTURAL COSTS 136 19 23 9 360 66 477 Harvest Harvest Paid by Buyer 000 0 0 0 0 0 TOTAL HARVEST COSTS 000 0 0 0 0 0 0
12Interest on operating capital 575 TOTAL OPERATING COSTSACRE 1 19 23 9 360 66 489 CASH OVERHEAD Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTS 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD (Capital Recovery) Per Producing Annual Cost
Acre Capital Recovery Buildings 27 2 2 Fuel Tanks 2 0 0 Global Positioning System (GPS) 14 3 3 Shop Tools 5 0 0 Equipment 96 11 11 TOTAL NON-CASH OVERHEAD COSTS 144 17 17 TOTAL COSTSACRE 658 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 8
UC COOPERATIVE EXTENSION Table 2 COSTS and RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Quantity Price or Value or Your Acre Unit CostUnit CostAcre Cost
GROSS RETURNS Small Grain Silage TOTAL RETURNS
2200 ton 4600 4600
1012 1012
OPERATING COSTS Fertilizer 158 Manure (raw) 500 ton 100 5 46-0-0 (Urea) 15000 lb N 075 113 Deliver amp Spread Manure 500 ton 800 40 Seed 56 Small Grain Mix (wheat) 13000 lb 043 56 Herbicide 54 Express (soluble granules) 100 oz 2649 26 MCPA Amine 100 pint 368 4 Axial XL 1600 floz 147 24 Custom 27 Air Application 200 acre 800 16 Pest Control AdviserConsultant 100 acre 1000 10 Irrigation 133 Water 1600 acin 833 133 Labor 19 Labor (machine) 091 hrs 1380 13 Labor (non-machine) 060 hrs 1104 7 Machinery 319 Fuel - Gas 000 gal 407 0 Fuel - Diesel 597 gal 384 23 Lube 3 Machinery repair 6 Interest on operating capital 575 12 TOTAL OPERATING COSTSACRE 489 NET RETURNS ABOVE OPERATING COSTS 523 CASH OVERHEAD COSTS Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTSACRE 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD COSTS (Capital Recovery) Buildings 2 Fuel Tanks 0 Global Positioning System (GPS) 3 Shop Tools 0 Equipment 11 TOTAL NON-CASH OVERHEAD COSTSACRE 17 TOTAL COSTSACRE 658 NET RETURNS ABOVE TOTAL COSTS 354 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 9
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
UC COOPERATIVE EXTENSION Table 2 COSTS and RETURNS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Quantity Price or Value or Your Acre Unit CostUnit CostAcre Cost
GROSS RETURNS Small Grain Silage TOTAL RETURNS
2200 ton 4600 4600
1012 1012
OPERATING COSTS Fertilizer 158 Manure (raw) 500 ton 100 5 46-0-0 (Urea) 15000 lb N 075 113 Deliver amp Spread Manure 500 ton 800 40 Seed 56 Small Grain Mix (wheat) 13000 lb 043 56 Herbicide 54 Express (soluble granules) 100 oz 2649 26 MCPA Amine 100 pint 368 4 Axial XL 1600 floz 147 24 Custom 27 Air Application 200 acre 800 16 Pest Control AdviserConsultant 100 acre 1000 10 Irrigation 133 Water 1600 acin 833 133 Labor 19 Labor (machine) 091 hrs 1380 13 Labor (non-machine) 060 hrs 1104 7 Machinery 319 Fuel - Gas 000 gal 407 0 Fuel - Diesel 597 gal 384 23 Lube 3 Machinery repair 6 Interest on operating capital 575 12 TOTAL OPERATING COSTSACRE 489 NET RETURNS ABOVE OPERATING COSTS 523 CASH OVERHEAD COSTS Liability Insurance 0 Office Expense 25 Land Rent 125 Property Taxes 0 Property Insurance 0 Investment Repairs 1 TOTAL CASH OVERHEAD COSTSACRE 152 TOTAL CASH COSTSACRE 641 NON-CASH OVERHEAD COSTS (Capital Recovery) Buildings 2 Fuel Tanks 0 Global Positioning System (GPS) 3 Shop Tools 0 Equipment 11 TOTAL NON-CASH OVERHEAD COSTSACRE 17 TOTAL COSTSACRE 658 NET RETURNS ABOVE TOTAL COSTS 354 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 9
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
UC COOPERATIVE EXTENSION Table 3 MONTHLY CASH COSTS PER ACRE to PRODUCE SMALL GRAIN SILAGE
SAN JOAQUIN VALLEY - SOUTH 2013
Beginning NOV 12 Ending OCT 13
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEP 13
OCT 13
TOTAL
Fertilize Preplant (Manure) 45 45 Land Prep Disk 2X 20 20 Land Prep Pull Borders 2 2 Fertilize Broadcast (Urea) 83 83 Plant (Small grains) 63 63 Weed Postemergent (Express MCPA Axial) 62 62 Irrigate Water amp Labor 35 35 70 140 Fertilize Top Dress (Urea) 46 46 Pest Control AdviserConsultant 1 1 1 1 1 1 1 10 Pickup Truck Use 1 1 1 1 1 1 1 7 TOTAL CULTURAL COSTS 216 2 99 48 37 72 2 0 0 0 0 0 477 Harvest Harvest Paid by Buyer 0 0 TOTAL HARVEST COSTS 0 0 0 0 0 0 0 Interest on operating capital 575 TOTAL OPERATING COSTSACRE
1 217
1 3
2 101
2 50
2 39
2 75
2 5
0 0
0 0
0 0
0 0
0 0
12 489
OVERHEAD Liability Insurance 0 0 0 0 0 0 0 0 Office Expense 4 4 4 4 4 4 4 25 Land Rent 125 125 Property Taxes 0 0 0 Property Insurance 0 0 Investment Repairs 0 0 0 0 0 0 0 1 TOTAL CASH OVERHEAD COSTS 4 4 4 4 4 4 129 0 0 0 0 0 151 TOTAL CASH COSTSACRE 221 8 105 54 43 79 134 0 0 0 0 0 641 50 of total costs allocated to small grain silage
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 10
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
UC COOPERATIVE EXTENSION Table 4 RANGING ANALYSIS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER ACRE AT VARYING YIELD TO PRODUCE SMALL GRAIN SILAGE
YIELD (tonacre) 1600 1800 2000 2200 2400 2600 2800 3000
OPERATING COSTS Cultural Cost 477 477 477 477 477 477 477 477 Harvest Cost 0 0 0 0 0 0 0 0 Assessment 0 0 0 0 0 0 0 0 Interest on operating capital 575 12 12 12 12 12 12 12 12 TOTAL OPERATING COSTSacre 489 489 489 489 489 489 489 489 Total Operating Costton 31 27 24 22 20 19 17 16 CASH OVERHEAD COSTS 152 152 152 152 152 152 152 152 TOTAL CASH COSTSacre 641 641 641 641 641 641 641 641 Total Cash Costston 40 36 32 29 27 25 23 21 NON-CASH OVERHEAD COSTS 17 17 17 17 17 17 17 17 TOTAL COSTSacre 658 658 658 658 658 658 658 658 Total Costston 41 37 33 30 27 25 24 22
NET RETURNS PER ACRE ABOVE OPERATING COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 151 231 311 391 471 551 631 711 4200 183 267 351 435 519 603 687 771 4400 215 303 391 479 567 655 743 831 4600 247 339 431 523 615 707 799 891 4800 279 375 471 567 663 759 855 951 5000 311 411 511 611 711 811 911 1011 5200 343 447 551 655 759 863 967 1071 5400 375 483 591 699 807 915 1023 1131
NET RETURNS PER ACRE ABOVE CASH COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -1 79 159 239 319 399 479 559 4200 31 115 199 283 367 451 535 619 4400 63 151 239 327 415 503 591 679 4600 95 187 279 371 463 555 647 739 4800 127 223 319 415 511 607 703 799 5000 159 259 359 459 559 659 759 859 5200 191 295 399 503 607 711 815 919 5400 223 331 439 547 655 763 871 979
NET RETURNS PER ACRE ABOVE TOTAL COSTS
PRICE YIELD (tonacre) $ton 1600 1800 2000 2200 2400 2600 2800 3000 4000 -18 62 142 222 302 382 462 542 4200 14 98 182 266 350 434 518 602 4400 46 134 222 310 398 486 574 662 4600 78 170 262 354 446 538 630 722 4800 110 206 302 398 494 590 686 782 5000 142 242 342 442 542 642 742 842 5200 174 278 382 486 590 694 798 902 5400 206 314 422 530 638 746 854 962
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 11
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
UC COOPERATIVE EXTENSION Table 5 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT and BUSINESS OVERHEAD COSTS
SAN JOAQUIN VALLEY - South 2013
ANNUAL EQUIPMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total 13 125HP 2WD Tractor 114269 10 33753 11904 605 740 13249 13 215HP Trac Tractor 287000 10 84775 29899 1519 1859 33276 13 Disc - Border 2150 10 380 244 10 13 267 13 Disc - Finish 21 43177 8 9748 5583 216 265 6064 13 Pickup 12 Ton 32000 5 14342 4732 189 232 5153 13 Planter-Drill 21 27301 10 4828 3104 131 161 3396
TOTAL 505897 147826 55467 2670 3269 61406 60 of New Cost 303538 0 88696 33280 1602 1961 36843 Used to reflect a mix of new and used equipment
ANNUAL INVESTMENT COSTS
Cash Overhead Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total Fuel Tanks in Containment 6514 20 512 27 33 130 701 Shop Building 2400 sqft 80000 20 5535 327 400 1600 7862 Shop amp Field Tools 15000 20 1200 1141 66 81 300 1588 Global Positioning System (GPS) 42000 5 9634 172 210 800 10816 TOTAL INVESTMENT 143514 1200 16821 591 724 2830 20966
ANNUAL BUSINESS OVERHEAD COSTS
Units Price Total Description Farm Unit Unit Cost Land Rent (750 acres) 75000 acre 25000 187500 Liability Insurance 150000 acre 051 765 Office Expense 150000 acre 5000 75000
UC COOPERATIVE EXTENSION Table 6 HOURLY EQUIPMENT COSTS
SAN JOAQUIN VALLEY - SOUTH 2013
COSTS PER HOUR Actual Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Total Total
Yr Description Used Used Recovery ance Taxes Repairs Fuel Oper CostsHr 13 125HP 2WD Tractor 246 1200 595 030 037 646 2786 3432 4094 13 215HP Trac Tractor 180 1600 1121 057 070 1482 4791 6273 7521 13 Disc - Border 30 200 073 003 004 035 000 035 115 13 Disc - Finish 21 164 250 1340 052 064 722 000 722 2178 13 Pickup 12 Ton 179 285 996 040 049 352 960 1312 2397 13 Planter-Drill 21 88 150 1242 052 064 752 000 752 2110
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 12
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
UC COOPERATIVE EXTENSION Table 7 OPERATIONS WITH EQUIPMENT amp MATERIALS
SAN JOAQUIN VALLEY - SOUTH 2013
Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Fertilize Preplant (Manure) Nov
Manure 500 ton Deliver amp Spread Manure 500 ton
Land Prep Disk 2X Nov 215 HP Trac Tractor Disc - Finish 21 Equipment Operator Labor 026 hour
Land Prep Pull borders Nov 125 HP MFWD Tractor Disc - Border Equipment Operator Labor 005 hour
Fertilize broadcast (Urea) Nov 125 HP MFWD Tractor Spreader (loaned) 46-0-0 (Urea) 10000 lb N
Plant (Wheat) Nov 125 HP MFWD Tractor Planter Drill 20 Equipment Operator Labor 014 hour Wheat 13000 lb
Weed (Express MCPA Axial) Jan Express (soluble granules) 100 oz MCPA Amine 100 pint Axial XL 1600 floz Air Apply 100 acre
Irrigate Jan Non-Machine Labor 015 hour Water 400 acin
Mar Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Apr Non-Machine Labor 015 hour Water 400 acin
Fertilize Topdress (Urea) Feb 46-0-0 (Urea) 5000 lb N Air application (Helicopter) 100 acre
PCA Feb Pest Control Adviser 100 acre
Pickup Truck Use Feb Pickup 12 Ton Equipment Operator Labor 029 hour
Harvest (Paid by Buyer) May Harvest by Buyer 100 ton
2013 Small Grain Silage Costs and Returns Study San Joaquin Valley South UC Cooperative Extension 13
