SAMPLE COSTS TO ESTABLISH AND PRODUCE · SAMPLE COSTS TO ESTABLISH AND PRODUCE ... The hypothetical...

UNIVERSITY OF CALIFORNIA COOPERATIVE EXTENSION

2013

SAMPLE COSTS TO ESTABLISH AND PRODUCE

ORGANIC ALFALFA HAY

Picture by Rachael F Long

CALIFORNIA ndash 2013

Prepared by

Rachael F Long UC Cooperative Extension Farm Advisor Yolo Solano amp Sacramento Counties Steve B Orloff UC Cooperative Extension Farm Advisor Siskiyou County Karen M Klonsky UC Cooperative Extension Specialist Department of Agriculture and Resource

Economics UC Davis Richard L De Moura UC Cooperative Extension Staff Research Associate Department of Agriculture

and Resource Economics UC Davis

UNIVERSITY OF CALIFORNIA - COOPERATIVE EXTENSION

SAMPLE COSTS TO ESTABLISH AND PRODUCE ORGANIC ALFALFA HAY IN CALIFORNIA ndash 2013

STUDY CONTENTS

INTRODUCTION 2 ASSUMPTIONS 4

Stand Establishment Practices and Material Inputs 4 Production Cultural Practices and Material Inputs for Established Alfalfa 6 Labor Equipment and Interest 7 Cash Overhead 8 Non-Cash Overhead 8

References 10 Table 1 Costs Per Acre to Establish Organic Alfalfa 12 Table 2 Material Costs Per Acre to Establish Organic Alfalfa 13 Table 3 Whole Farm Equipment Used to Establish Organic Alfalfa 13 Table 4 Costs Per Acre to Produce Organic Alfalfa 14 Table 5 Costs and Returns Per Acre to Produce Organic Alfalfa 15 Table 6 Monthly Cash Costs Per Acre to Produce Organic Alfalfa 16 Table 7 Ranging Analysis 17 Table 8 Whole Farm Annual Equipment Investment and Business Overhead Costs 18 Table 9 Hourly Equipment Costs 19 Table 10 Operations with Materials and Equipment 19

INTRODUCTION

Organic alfalfa production involves growing labeling and marketing the crop according to National Organic Program (NOP) standards as defined by the United States Department of Agriculture (USDA) These standards require that alfalfa be produced with approved inputs given in the national materials list with brand names listed by the Washington State Department of Agriculture or the Organic Materials Review Institute Farmers must also take precautions against pesticide drift and other sources of prohibited contaminants In addition hay handling equipment as well as storage areas must be designated organic or properly cleaned between conventional and organic use with documentation Fields must be managed organically for at least three years prior to being certified as organic

Federal laws regulating organic products require producers to be certified organic through a USDA accredited certifier (public or private) and they must also register with the California Department of Food and Agriculturersquos (CDFA) Organic Program This registration process is handled through the County Agricultural Commissionersrsquo Offices throughout the state The certification process requires that the producer develop a written organic farm plan that describes how the farm is to be managed in accordance with USDA-NOP rules and subsequent approval of the plan by the certifier In addition yearly updates to the farm plan are required as well as yearly on-site farm audits by certifiers to ensure compliance with federal regulations There are many organic certifiers and costs and fees vary with each Sample fees are included in this study

2013 Organic Alfalfa Hay Cost and Returns Study California UC Cooperative Extension 2

The detailed costs for organic alfalfa hay establishment and production in California are presented in this study The hypothetical farm used in this report consists of 1000 acres with 100 acres in organic alfalfa hay production 890 acres in other organic and conventional field and row crops such as melons beans processing tomatoes mixed vegetables fruit and nut crops and 10 acres to roads buildings and unused land Crops that can be rotated with alfalfa hay vary considerably throughout the state depending on location soil type climate and marketing opportunities

This cost study provides guidelines on how to establish and produce organic alfalfa hay to help make production decisions determine potential returns prepare budgets and evaluate production loans Practices described are based on the production practices considered typical for organically grown alfalfa in California However due to the diversity of environments in California actual production practices can vary widely from one location to another The ldquoYour Costsrdquo columns in Tables 1 2 4 and 5 allow growers to pencil in their own costs based on their individual farming practices Sample costs for labor materials equipment and custom services are based on current figures

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 530-666-8734

Current and archived ldquoSample Cost of Production Studiesrdquo for many commodities can be downloaded at httpcoststudiesucdavisedu requested through the Department of Agricultural and Resource Economics UC Davis 530-752-6887 or 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


ASSUMPTIONS

The following assumptions refer to Tables 1 to 10 and pertain to sample costs to establish and produce organic alfalfa in California The costs are based on cultural practices used by growers in the state some of which may not be used during every establishment or production year The cultural practices and production inputs for growing organic alfalfa vary considerably among growers and fields throughout the state Costs are represented on an annual per acre basis 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

Farm Setup This study is based on a 1000 acre organic and conventional field row crop fruit and nut crop farm of which 100 acres are dedicated to growing organic alfalfa hay 890 acres are used to grow other crops and 10 acres are occupied by roads and the farmstead Typically the grower will rotate a portion of the alfalfa crop each year and establish a new stand on land previously occupied by rotation crops Land that is suitable for growing alfalfa in California ranges from $3000 to $8000 per acre In this study the land is valued at $6000 per acre

Stand Establishment Practices and Material Inputs

Land Preparation The ground is ripped to a depth of 20 to 32 inches to fracture the soil to improve water infiltration The field is disced to break up large clods creating better seed-to-soil contact for good seed germination Composted chicken manure is spread over the ground and incorporated by a second discing The land is leveled and the fields are floated to remove high and low spots that may affect stand establishment due to too much or too little water Borders are pulled to make checks for flood irrigation Healthy alfalfa stands compete well against weeds insects and diseases so it is important to spend time on land preparation to ensure a dense and vigorous stand This is particularly important for organic production

Planting A custom operator seeds the alfalfa with an airflow planter A cultipacker is used to firm the seedbed prior to and after planting Certified alfalfa seed is recommended for nematode and weed management In addition select a variety with the appropriate fall dormancy rating and pest resistance for your area USDA standards require the use of organic seeds but if not available conventionally-produced seeds may be used as long as they are not genetically engineered and there is clear documentation of non-availability of organic seed that is adapted to the growing area The seed should be inoculated with the appropriate organically-approved nitrogen-fixing bacteria if alfalfa has not been grown in the area for at least ten years

The optimum planting time varies throughout the state For example in the Intermountain area seeding should be done from mid to late-August but successful seeding can still be done in the spring In the Sacramento and San Joaquin Valley planting should occur from mid-September to mid-October In this study alfalfa is planted in September at 25 pounds per acre to a depth of 14 inch Slightly higher seeding rates are recommended in organic alfalfa production to ensure strong competitive stands The optimal planting date is important to minimize weed competition and maximize alfalfa vigor Early fall is the best time to plant alfalfa when summer weeds are less aggressive and before winter weeds germinate to minimize weed competition The life of an organic alfalfa stand varies from the northern to the southern area of the state The Intermountain region will have a longer productive life (typically 5 to 8 years) than the Southern San Joaquin Valley but will have less hay cuttings annually than a stand


further south The Sacramento Valley usually ranges from three to five years Stand life in this study is four years

Fertilization Sample and analyze soils as required by the National Organic Program to determine crop needs such as pH and nutrient levels Incorporate the recommended amounts of nutrients using compost or other approved materials Alfalfa frequently needs supplemental phosphorus (P) and sometimes sulfur (S) and potassium (K) depending on inherent soil fertility and previous crop fertilization Alfalfa does not need supplemental nitrogen because the plant fixes its own from the atmosphere via nitrogen-fixing nodules on the roots In this study composted chicken manure (90 dry matter 229 P2O5) at four tons per acre is applied prior to planting This should provide about 165 lbs of P2O5 and sufficient sulfur and potassium for several years of production If the soil is too acidic (pH less than 63) add an organically approved liming material such as ash or limestone to ensure optimum nitrogen fixation by the Rhizobia bacteria that colonize the alfalfa roots The composted chicken manure is hauled and custom spread at a cost of $1300 per ton for hauling and $800 ndash $1000 per ton to spread then disced and incorporated by the grower during field preparation Manure breaks down gradually and the nutrients contained in them are slower to become available than those in commercial fertilizer Therefore a portion of the nutrients from the chicken manure will be available in subsequent years The cost is allocated over the four year stand life at 25 per year Use plant tissue sampling and analysis during the summer of the first yearrsquos growth and in additional years to assess plant nutrient needs for the second and subsequent yearsrsquo production In this study it is assumed that no additional nutrients are applied See httpalfalfaucdaviseduIrrigatedAlfalfapdfsUCAlfalfa8292Fertilization_freepdf for more nutrient information

Irrigation The field is pre-irrigated using sprinkler irrigation before seeding and then sprinkled twice after planting Fields are sprinkled twice in September and once in October for a total of six acre-inches applied to the new planting at $2547 per acre-foot or $212 per acre-inch Irrigation costs shown in the tables include the water costs and labor for setting up moving taking down sprinkler pipe siphon tubes andor gated pipe

Pest Management The organic pesticides rates and procedures mentioned in this cost study are listed in the UC Integrated Pest Management Guidelines Alfalfa For more information on other available organic pesticides pest identification monitoring and management visit the UC IPM website at httpwwwipmucdaviseduPMGcrops-agriculturehtml Other sources of organically approved inputs include the Washington State Department of Agriculture materials lists httpagrwagovPortalsOrg or the Organic Materials Review Institute (httpwwwomriorg) For information and specific pesticide use contact your organic certifier

Weeds A fall planting will help reduce weed competition because the alfalfa seedlings emerge after most summer weeds have completed their lifecycle and before winter weeds have a chance to emerge and compete Pre-irrigation followed by cultivation can help reduce weed density in seedling alfalfa Unfortunately there is not an effective method for selectively controlling emerged weeds in organically-grown seedling alfalfa but a strong stand will help the alfalfa suppress weeds by out-competing them If the weed pressure is severe and weeds overtop the alfalfa it may be beneficial to graze the field with sheep or cut early to allow sunlight to reach the young alfalfa plants When grazing seedling alfalfa fields make sure that the field is dry so that the soil will not be compacted and the stand weakened Rotate the sheep on and off quickly so fields are not overgrazed and damaged

Harvest Fall plantings will produce a crop the following spring (not during the calendar year of establishment) 2013 Organic Alfalfa Hay Cost and Returns Study California UC Cooperative Extension 5

Production Cultural Practices and Material Inputs for Established Alfalfa

Irrigation Once fields are established water use ranges from about 18-28 acre-inches in Northern California (Intermountain) to over 50 acre-inches in the Southern San Joaquin Valley For this cost study they are flood irrigated with a total of 42 acre-inches of water per acre per year Flood irrigation of established fields starts in April and continues through September A total of 35 acre-feet of water (42 acre-inches) per year at $2547 per acre-foot or $212 per acre-inch are applied Irrigation costs shown in the tables include the water costs and labor for setting up moving taking down sprinkler pipe siphon tubes andor gated pipe

Pest Management The organic pesticides rates and procedures mentioned in this cost study are listed in the UC Integrated Pest Management Guidelines Alfalfa For more information on pest identification monitoring and management visit the UC IPM website at httpwwwipmucdaviseduPMGcrops-agriculturehtml

Insects The Egyptian and alfalfa weevils are the most serious pests of alfalfa causing yield and quality losses to the first harvest in late winterearly spring Entrust (spinosad) with a surfactant is applied in March by the grower for weevil control (suppresses weevils with 60-70 control) Sheep grazing in the winter may provide partial weevil control by destroying the eggs that are laid in the old alfalfa stems Most organic growers rely on early harvest to minimize weevil damage but yields will be reduced Microbial insecticides are used to control armyworms and alfalfa caterpillars during the summer months (one application per year is assumed) An application of XenTari a Bt containing organically-approved insecticide is assumed in this study Entrust can also be used but is not efficacious on western yellowstriped armyworms Aphids are managed with resistant alfalfa varieties or early harvest before economic damage occurs

Pathogens Diseases are managed through the use of resistant varieties or early harvest before the pathogens cause economic damage Nematodes (root knot and stem) are managed primarily via resistant plant varieties Stem nematode may further be managed by crop rotation and the use of certified seed Maintaining soil health through rotation and the use of cover crops will also help improve soil and plant health potentially mitigating pathogen problems

Weeds In January a year after the stand has been established the field can be lightly harrowed for weed management Winter grazing by sheep when the alfalfa is dormant can also be used to control winter weeds in the first year of establishment as well as subsequent years Sheep grazing may also provide some weevil control as the sheep consume the old alfalfa stems where weevils often lay eggs Watch for soil compaction and stand loss when ldquosheeping offrdquo especially in wet years on heavy soils Grazing costs or revenues are not included in this study

Harvest Alfalfa is custom harvested in this cost study The NOP requires that organic growers use harvesting equipment that has been designated organic or properly cleaned between organic and conventional uses with documentation of this practice noted in the organic plan A custom operator cuts the hay with a self-propelled swather After drying in windrows for several days the hay is turned with a center-delivery rake When dried to the correct moisture the hay is baled with a pull-type baler and then picked up with a harrowbed and moved to hay stacks For this study the costs for all of these operations were converted to per acre costs and are simply labeled as Harvest


Growers may choose to own harvesting equipment purchased either new or used or hire a custom harvester Many factors are important in deciding which harvesting option a grower uses The options are discussed in Acquiring Alfalfa Hay Harvest Equipment A Financial Analysis of Alternatives The publication can be found at httpwwwipmucdaviseduPMGselectnewpestalfalfa-hayhtml

Yield Average annual yields in California range from 50 to 10 tons per acre with three to ten cuttings depending on location and alfalfa variety Eight tons per acre over seven cuttings per year is common in the Central Valley The crop in this study is assumed to yield 70 tons of hay per acre because yields of organic alfalfa are often slightly lower than conventional due to only partial control of many pests and weeds and the difficulty meeting the nutritional needs of alfalfa using solely organic sources

Returns Returns will vary during the season depending upon the market and quality of the hay but are approximately 20 higher than conventionally grown alfalfa Based on current organic markets for premium to rain damaged hay an estimated price (rounded) of $260 ($220 + 20) per ton of hay is used to calculate returns In some areas in the state additional revenue is generated by charging a per head fee for grazing sheep on alfalfa during the dormant season a practice that will also help control winter weeds and weevils However this income is not included in this study Table 7 shows a range of yields over a range of returns

Labor Equipment and Interest

Labor Basic hourly wages for workers are $1020 per hour for machine operators and $900 per hour for non-machine (field workers) labor Adding 40 for the employersrsquo share of federal and state payroll taxes insurance and other benefits increases the labor rates to $1428 per hour for machine and $1260 per hour for non-machine labor The labor for operations involving machinery are 20 higher than the operation time to account for the extra labor involved in equipment set up moving maintenance and repair Any returns above total costs are considered a return to management and investment

Equipment Operating Costs Repair costs are based on purchase price annual hours of use total hours of life and repair coefficients formulated by 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 $384 and $407 per gallon respectively Fuel costs are derived from the Energy Information Administration (EIA) 2012 monthly data The cost includes a 75 local sales tax on diesel fuel and gasoline Gasoline also includes federal and state excise tax which are refundable for on-farm use when filing your income tax The fuel lube and repair cost per acre for each operation in Tables 1 and 4 are determined by multiplying the total hourly operating cost in Table 9 for each piece of equipment used for the selected operation 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

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 going market cost of borrowed funds The interest cost of post-harvest operations is discounted back to the last harvest month using a negative interest charge The rate will vary depending upon various loan factors The rate in this study is considered a typical lending rate by a farm lending agency as of January 2013


Risk The risks associated with the production of organic alfalfa hay should not be minimized Weather and other risks are a continual concern for conventional growers but organic growers face additional risks such as pest outbreaks that cannot be adequately controlled with organic methods 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 of organic alfalfa hay production Because of the risks involved access to a market is crucial A grower should identify potential markets and where possible have a market for their hay before an organic alfalfa hay stand is established

Cash Overhead

Property Tax 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 $1346 for the entire farm or $135 per acre

Office Expense Various farm and office expenses are estimated at $1200 per acre for the ranch These expenses include office supplies utilities telephones computers bookkeeping accounting legal fees and maintenance etc

Organic Certification Cost and fees will vary with different organic certifiers used by organic growers in California In this study a site visit and annual certification is assumed to cost $1000 or $10 per organic acre Certification and their associated costs are for the whole farm paid annually The state and many certification agencies have a onetime fee when a grower first becomes organic This cost is not included in this study

Investment Repairs Annual maintenancerepairs on investments (Non-cash Overhead) are calculated as two percent of the purchase price

Non-Cash Overhead

Investment The investments shown in Tables 3 and 8 are those that are partially or completely allocated to the organic alfalfa hay operation Costs of investments such as tractors trucks buildings etc can be spread over the whole farm Annual investments shown in the tables represent depreciation and opportunity cost for each investment on an annual per acre basis

Capital Recovery Costs Capital recovery cost is the annual depreciation and interest costs for a capital investment It is the amount of money required each year to recover the difference between the purchase price and salvage value (unrecovered capital) It is 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) 2013 Organic Alfalfa Hay Cost and Returns Study California UC Cooperative Extension 8

Salvage Value Salvage value is an estimate of the remaining value of an investment at the end of its useful life For farm machinery (tractors and implements) the remaining value is a percentage of the new cost of the investment (Boehlje and Eidman) The percent remaining value is calculated from equations developed by the American Society of Agricultural and Biological Engineers (ASABE) based on equipment type and years of life The life in years is estimated by dividing the wearout life as given by ASABE by the annual hours of use in this 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 The purchase price and salvage value for equipment and investments are shown in Table 3 and 8

Capital Recovery Factor Capital recovery factor is the amortization factor or annual payment whose present value at compound interest is 1 It is the function of the interest rate and equipment years of life

Interest Rate An interest rate of 575 is used to calculate capital recovery The rate will vary depending upon loan amount and other lending agency conditions but is the basic suggested rate by a farm lending agency as of January 2013

Non-Cash Equipment Costs Much of the equipment used on a typical organic alfalfa hay farm in California has high hours of use which reduces its value This study shows current purchase prices for new equipment with an adjustment of 50 of new value to indicate a mix of new and used equipment

The equipment listed in Tables 3 and 8 indicates only that equipment which is used in the organic alfalfa hay enterprise and does not necessarily include all of the equipment that would be found on a typical organic farm growing alfalfa hay

Establishment Costs The establishment cost is the sum of cash costs for land preparation planting production expenses and cash overhead for growing the alfalfa stand NOTE there will not be returns during the fall of the establishment year The Total Accumulated Net Cash Cost in the first year as shown in Table 1 represents the establishment cost per acre For this study the cost is $47377 per acre or $47377 for the 100 acres The establishment cost is amortized over the remaining three years of stand life

Land Land values will vary with soil type water source and location For this study the land is estimated to cost $6000 per acre

Buildings Buildings include a shopshops and pole barn to store hay

Siphon tubes Two-hundred siphon tubes are in inventory and used on other fields in addition to the organic alfalfa

Fuel tanks Two fuel tanks with pumps are placed in cement containment for use on the farm A fuel wagon is also maintained to service field equipment (tractors etc)

Tools Includes shop toolsequipment hand tools and field tools such as shovels

Table Values Due to rounding the totals may be slightly different from the sum of the components


REFERENCES

American Society of Agricultural and Biological Engineers March 2011 Agricultural Machinery Management Data ASAE D4977 St Joseph Michigan httpelibraryasabeorg Internet accessed February 2013

American Society of Farm Managers and Rural Appraisers 2012 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

Blank Steve Karen Klonsky Kim Norris and Steve Orloff 1992 Acquiring Alfalfa Hay Equipment A financial analysis of alternatives University of California Oakland California Giannini Information Series No 92-1 httpgianniniucopeduInfoSeries921-HayEquippdf Internet accessed January 2007

CDFA-OP California Department of Food and Agriculture California Organic Program httpwwwcdfacagovisi_amp_corganichtml Internet accessed January 2013

Long Rachael F Jerry L Schmier Karen M Klonsky and Richard L De Moura Sample Costs To Establish And Produce Alfalfa Hay Sacramento Valley ndash 2008 UC Cooperative Extension University of California Department of Agricultural and Economics Davis CA httpcoststudiesucdavisedu

Long Rachael Roland D Meyer and Steve Orloff 2007 Producing Alfalfa Hay Organically University of California Division of Agricultural and Natural Resources Publication number 3512 In Irrigated Alfalfa Production Manual httpalfalfaucdavisedu+producingindexaspxcat=Organic20Alfalfa

Meyer Roland Dan Marcum Steve Orloff and Jerry Schmierer 2008 Alfalfa fertilization strategies University of California Division of Agricultural and Natural Resources Publication number 3512 In Irrigated Alfalfa Production Manual httpalfalfaucdaviseduIrrigatedAlfalfapdfsUCAlfalfa8292Fertilization_freepdf

National Alfalfa and Forage Alliance httpwwwalfalfaorg

Organic Materials Review Institute OMRI Products List httpwwwomriorg

Orloff Steve B Karen M Klonsky and Kabir Tumber 2012 Sample Costs To Establish And Produce Alfalfa Hay Intermountain Region ndash Siskiyou County ndash 2012 Butte Valley ndash Center Pivot Irrigation UC Cooperative Extension University of California Department of Agricultural and Economics Davis CA httpcoststudiesucdavisedu

Orloff Steve B Karen M Klonsky and Kabir Tumber 2012 Sample Costs To Establish And Produce Alfalfa Hay Intermountain Region ndash Siskiyou County ndash 2012 Scott Valley ndash Mixed Irrigation UC


Cooperative Extension University of California Department of Agricultural and Resource Economics Davis CA httpcoststudiesucdavisedu

University of California Statewide Integrated Pest Management Program UC Pest Management Guidelines Alfalfa 2012 University of California Division of Agriculture and Natural Resources Davis CA httpwwwipmucdaviseduPMGselectnewpestalfalfa-hayhtml

United States Department of Agriculture Agricultural Marketing Service USDA-AMS California Weekly Hay Report Livestock and Seed Program Livestock and Grain Market News Branch USDA Washington DC httpwwwamsusdagovmnreportsml_gr311txt Internet accessed February 2013

United States Department of Agriculture National Organic Program USDA-NOP Regulations (Standards) and Guidelines httpwwwamsusdaAMSv10nop Internet accessed January 2013

Washington State Department of Agriculture WSDA Organic Food Materials Lists and Material Registration httpagrwagovPortalsOrg Internet accessed January 2013

For information concerning the above mentioned University of California publications contact UC ANR Communications Services (1-800-994-8849) or httpucanredu (and select lsquopublicationsrsquo from the top horizontal bar)_ or contact your local county Cooperative Extension office


UC COOPERATIVE EXTENSION California 2013

Table 1 COSTS PER ACRE TO ESTABLISH ORGANIC ALFALFA

Operation Cash and Labor Costs per Acre Time Labor Fuel Lube Material Custom Total Your

Operation (HrsA) Cost amp Repairs Cost Rent Cost Cost Preplant SubsoilRip Ground 039 7 16 6 0 0 28 Disc Field 2X 033 6 13 5 0 0 24 Laser level 000 0 0 0 0 75 75 Fertilize Compost (1X per 4 Yrs 25 of cost) 000 0 0 0 45 22 67 Float Field 012 2 2 1 0 0 4 Pull Borders 022 4 9 2 0 0 15

TOTAL Preplant COSTS 106 18 39 13 45 97 212 Cultural Roll Field 2X (pre and post plant) 020 3 3 1 0 0 7 Irrigate Sprinkle (water amp labor) 070 9 0 0 13 0 22 Plant Alfalfa seed (25 lbsacre) 000 0 0 0 106 11 117 Pickup Truck Use 057 10 7 2 0 0 19

TOTAL Cultural COSTS 147 22 10 3 119 11 165 Interest on Operating Capital 575 4 TOTAL OPERATING COSTSACRE 253 40 49 16 164 108 380 CASH OVERHEAD Liability Insurance Office Expense Property Taxes Property Insurance Investment Repairs

1 12 64

3 13

TOTAL CASH OVERHEAD COSTSACRE 93 TOTAL CASH COSTSACRE 474 NON-CASH OVERHEAD Per producing Annual Cost

Acre Capital Recovery Fuel Tanks amp Pumps 11 1 1 Fuel Wagon 3 0 0 Hay Barn 525 41 41 Land 6061 288 288 Shop Building 61 4 4 Shop Tools 13 2 2 Siphon Tubes 17 1 1 Sprinkler Pipe 33 3 3 Equipment 151 17 17 TOTAL NON-CASH OVERHEAD COSTS 6874 356 356 TOTAL COSTSACRE 830



Table 2 MATERIAL COSTS PER ACRE TO ESTABLISH ORGANIC ALFALFA

Quantity Acre Unit

Price or CostUnit C

Value or ostAcre

OPERATING COSTS Fertilizer 45 Compost ndash Chicken Manure 100 ton 4500 45

Irrigation 13 Water 600 acin 212 13

Custom 108 Laser Level 100 acre 7500 75 Compost Hauling 100 ton 1300 13 Compost Spreading 100 ton 900 9 Plant wAir Flow Seeder 100 acre 1050 11

Seed 106 Seed - Alfalfa 2500 lb 425 106

Labor 40 Equipment Operator Labor 219 hrs 1428 31 Non-Machine Labor 070 hrs 1260 9

Machinery 65 Fuel-Gas 171 gal 407 7 Fuel-Diesel 1093 gal 384 42 Lube 7 Machinery Repair 9

Interest on Operating Capital (575) 4 TOTAL OPERATING COSTSACRE 380


Table 3 WHOLE FARM EQUIPMENT USED TO ESTABLISH ORGANIC ALFALFA

Cash Overhead Yrs Salvage Capital Insur-

Yr Description Price Life Value Recovery ance Taxes Total 13 165 HP 4WD Tractor 155748 10 46006 16225 824 1009 18058 13 62 HP 2WD Tractor 46000 10 13588 4792 243 298 5334 13 Cultipacker - 16 6000 10 1061 682 29 35 746 13 Disc - Border 2000 10 354 227 10 12 249 13 Disc Stubble 14 28500 12 3947 2919 133 162 3214 13 Float - 16 2800 15 269 253 13 15 280 13 Pickup 4WD 34 Ton 38000 7 14415 4724 214 262 5200 13 Subsoiler 5 Shk10 26534 10 4692 3017 128 156 3301 TOTAL 305582 84331 32840 1593 1950 36382

50 of new cost 152791 42166 16420 796 975 18191



Table 4 COSTS PER ACRE TO PRODUCE ORGANIC ALFALFA HAY

Operation Cash and Labor Costs per Acre Time Labor Fuel Lube amp Material Custom Total Your

Operation (HrsA) Cost Repairs Cost Rent Cost Cost Cultural Weed Harrow 008 1 2 0 0 0 3 Insect Weevil (Entrust) 011 2 0 0 54 0 56 Irrigate (water amp labor) 150 19 0 0 89 0 108 Fertilize Tissue Analysis 000 0 0 0 0 2 2 Fertilize Compost (1X per 4 Yrs 25 of cost) 000 0 0 0 45 22 67 Insect Worms (Xen Tari) 011 2 0 0 43 0 45 Pickup Truck Use 057 10 7 2 0 0 19

TOTAL Cultural COSTS 237 34 9 3 231 24 300 Harvest Harvest - 7X 000 0 0 0 0 350 350

TOTAL Harvest COSTS 000 0 0 0 0 350 350 Interest on Operating Capital 575 TOTAL OPERATING COSTSACRE CASH OVERHEAD Liability Insurance Office Expense Organic Certification Property Taxes Property Insurance Investment Repairs TOTAL CASH OVERHEAD COSTSACRE TOTAL CASH COSTSACRE

237 34 9 3 231 374 12

663

1 12 10 64

3 13

102 765

NON-CASH OVERHEAD Per producing Annual Cost Acre Capital Recovery

Establishment Cost 474 173 173 Fuel Tanks amp Pumps 11 1 1 Fuel Wagon 3 0 0 Hay Barn 525 41 41 Land 6061 288 288 Shop Building 61 4 4 Shop Tools 13 2 2 Siphon Tubes 17 1 1 Equipment 46 6 6 TOTAL NON-CASH OVERHEAD COSTS 7210 516 516 TOTAL COSTSACRE 1281



Table 5 COSTS AND RETURNS PER ACRE TO PRODUCE ORGANIC ALFALFA

Quantity Price or Value or Acre Unit CostUnit CostAcre

GROSS RETURNS Alfalfa Hay 700 ton 26000 1820

TOTAL GROSS RETURNS 700 ton 1820 OPERATING COSTS Fertilizer Compost-Chicken Manure Irrigation Water

Insecticide Entrust 80W XenTari

Custom Organic Hay Harvest

Plant Tissue Analysis (Lab fee) Compost Hauling Compost Spreading Labor Equipment Operator Labor Non-Machine Labor

Machinery Fuel-Gas Fuel-Diesel Lube Machinery Repair

Interest on Operating Capital (575) TOTAL OPERATING COSTSACRE

100

4200

125 200

700 005 100 100

104 150

185 039

ton

acin

oz lb

acre each

ton ton

hrs hrs

gal gal

4500

212

4288 2154

5000 3500 1300

900

1428 1260

407 384

45 45 89 89 97 54 43

374 350

2 13

9 34 15 19 12

8 2 1 2

12 663

NET RETURNS ABOVE OPERATING COSTS 1157 CASH OVERHEAD COSTS Liability Insurance 1 Office Expense 12 Organic Certification 10 Property Taxes 64 Property Insurance 3 Investment Repairs 13 TOTAL CASH OVERHEAD COSTSACRE 102 TOTAL CASH COSTSACRE 765 NON-CASH OVERHEAD COSTS (Capital Recovery) Establishment Cost 173 Fuel Tanks amp Pumps 1 Fuel Wagon 0 Hay Barn 41 Land 288 Shop Building 4 Shop Tools 2 Siphon Tubes 1 Equipment 6 TOTAL NON-CASH OVERHEAD COSTS 516 TOTAL COSTACRE 1281 NET RETURNS ABOVE TOTAL COST 539



Table 6 MONTHLY CASH COSTS PER ACRE TO PRODUCE ORGANIC ALFALFA

Beginning 01-13 Ending 12-13

JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13

SEP OCT NOV 13 13 13

DEC TOTAL 13

Cultural Weed Harrow 3 3 Insect Weevil (Entrust) 56 56 Irrigate (water amp labor) 16 16 16 16 29 16 108 Fertilizer Tissue Analysis 2 2 Fertilize Compost (1X per 4 Yrs 25 of cost) 67 67 Insect Worms (Xen Tari) 45 45 Pickup Truck Use 2 2 2 2 2 2 2 2 2 19

TOTAL Cultural COSTS 5 2 58 87 18 18 63 31 18 300 Harvest

Harvest - 7X 50 50 50 50 100 50 350 TOTAL Harvest COSTS 0 0 0 50 50 50 50 100 50 350 Interest on Operating Capital (575) TOTAL OPERATING COSTSACRE

0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663

CASH OVERHEAD Liability Insurance 1 1 Office Expense 1 1 1 1 1 1 1 1 1 12 Organic Certification 10 10 Property Taxes 32 32 64 Property Insurance 3 3 Investment Repairs 1 1 1 1 1 1 1 1 1 1 1 1 13 TOTAL CASH OVERHEAD COSTS 15 2 2 34 2 2 2 2 2 1 1 33 102 TOTAL CASH COSTSACRE 20 5 61 172 72 72 118 136 73 1 1 33 765



Table 7 RANGING ANALYSIS

COST PER ACRE AT VARYING YIELDS TO PRODUCE ORGANIC AFALFA HAY

YIELD (Tonacre) 550 600 650 700 750 800 850

OPERATING COSTS Cultural 300 300 300 300 300 300 300 Harvest 276 301 326 350 375 400 424

Interest on operating capital 575 11 12 12 12 13 13 14 TOTAL OPERATING COSTSACRE 588 613 638 663 688 713 738

Total Operating CostsTon 107 102 98 95 92 89 87 CASH OVERHEAD COSTSACRE 102 102 102 102 102 102 102 TOTAL CASH COSTSACRE 690 715 740 765 790 815 840 Total Cash CostsTon 125 119 114 109 105 102 99 NON-CASH OVERHEAD COSTSACRE 516 516 516 516 516 516 516 TOTAL COSTSACRE 1206 1231 1256 1281 1306 1331 1356 Total CostsTon 219 205 193 183 174 166 160

NET RETURNS PER ACRE ABOVE OPERATING COSTS

PRICE ($Ton) YIELD (Tonacre) Alfalfa Hay 550 600 650 700 750 800 850

215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855

NET RETURNS PER ACRE ABOVE CASH COSTS


215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752

NET RETURNS PER ACRE ABOVE TOTAL COSTS


215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236



Table 8 WHOLE FARM ANNUAL EQUIPMENT INVESTMENT AND BUSINESS OVERHEAD COSTS

ANNUAL EQUIPMENT COSTS


Yr Description Price Life Value Recovery ance Taxes Total 13 100 Gal Sprayer WbmATV 5364 10 949 610 26 32 667 13 90 HP 4WD Tractor 53423 10 15780 5565 283 346 6194 13 ATV 6640 7 2519 825 37 46 909 13 Pickup 4WD 34 Ton 38000 7 14415 4724 214 262 5200 13 Springtooth Harrow 2800 10 495 319 13 16 348 TOTAL 106227 34158 12043 573 702 13318

50 of new cost 53114 17079 6022 287 351 6659 Used to reflect a mix of new and used equipment

ANNUAL INVESTMENT COSTS


Description Price Life Value Recovery ance Taxes Repairs Total INVESTMENT Establishment Cost 47377 3 0 17316 0 0 0 17316 Fuel Tanks amp Pumps 10500 20 0 825 43 53 210 1130 Fuel Wagon 2500 10 0 320 10 13 50 393 Hay Barn 52500 20 0 4124 214 263 1050 5651 Land 6000000 40 6000000 285000 0 60000 0 345000 Shop Building 60000 30 0 3793 245 300 1200 5538 Shop Tools 13000 10 0 1663 53 65 260 2041 Siphon Tubes 17000 20 0 1335 69 85 340 1830 TOTAL INVESTMENT 6202877 6000000 314375 635 60778 3110 378898

ANNUAL BUSINESS OVERHEAD COSTS

Units Price Total Description Farm Unit Unit Cost Liability Insurance 100000 acre 135 1350 Office Expense 99000 acre 1200 11880 Organic Certification 10000 acre 1000 1000



Table 9 HOURLY EQUIPMENT COSTS

COSTS PER HOUR Alfalfa Total Cash Overhead Operating Hours Hours Capital Insur- Lube amp Fuel Total Total

Yr Description Used Used Recovery ance Taxes Repairs Oper CostsHr 13 100 Gal Spr WbmATV 22 150 204 009 011 121 0 121 344 13 90 HP 4WD Tractor 9 1600 174 009 011 373 1697 2070 2264 13 ATV 22 285 145 007 008 082 271 353 513 13 Pickup 4WD 34 Ton 57 285 829 038 046 417 1221 1638 2550 13 Springtooth Harrow 8 199 080 003 004 048 0 048 136


Table 10 OPERATIONS WITH MATERIALS AND EQUIPMENT

Operation Labor Type Rate Operation Month Tractor Implement Material acre Unit Weed Harrow Jan 90 HP 4WD Springtooth Harrow Equipment Operator Labor 010 hour Insect Weevil (Entrust) Mar ATV Equipment Operator Labor 013 hour

100 Gal Spr WbmATV Entrust 80W 125 oz Irrigate - 6 Months Apr Non-Machine Labor 025 hour

Water 600 acin May Non-Machine Labor 025 hour

Water 600 acin June Non-Machine Labor 025 hour

Water 600 acin July Non-Machine Labor 025 hour

Water 600 acin Aug Non-Machine Labor 025 hour

Water 1200 acin Sept Non-Machine Labor 025 hour

Water 600 acin Fertilizer Tissue Analysis Apr Plant Tissue Analysis 005 each Fertilize Compost (1X per 4 Yrs 25 of cost) Apr Compost - Chicken 100 ton

Compost Hauling 100 ton Compost Spreading 100 ton

Insect Worms (Xen Tari) July ATV Equipment Operator Labor 013 hour 100 Gal Spr WbmATV XenTari 200 lb

Pickup Truck Use July Pickup 4WD 34 Ton Equipment Operator Labor 068 hour Harvest - 7X Apr Organic Hay Harvest 100 acre

May Organic Hay Harvest 100 acre June Organic Hay Harvest 100 acre July Organic Hay Harvest 100 acre Aug Organic Hay Harvest 200 acre Sept Organic Hay Harvest 100 acre


UNIVERSITY OF CALIFORNIA - COOPERATIVE EXTENSION

SAMPLE COSTS TO ESTABLISH AND PRODUCE ORGANIC ALFALFA HAY IN CALIFORNIA ndash 2013

STUDY CONTENTS

INTRODUCTION 2 ASSUMPTIONS 4

Stand Establishment Practices and Material Inputs 4 Production Cultural Practices and Material Inputs for Established Alfalfa 6 Labor Equipment and Interest 7 Cash Overhead 8 Non-Cash Overhead 8

References 10 Table 1 Costs Per Acre to Establish Organic Alfalfa 12 Table 2 Material Costs Per Acre to Establish Organic Alfalfa 13 Table 3 Whole Farm Equipment Used to Establish Organic Alfalfa 13 Table 4 Costs Per Acre to Produce Organic Alfalfa 14 Table 5 Costs and Returns Per Acre to Produce Organic Alfalfa 15 Table 6 Monthly Cash Costs Per Acre to Produce Organic Alfalfa 16 Table 7 Ranging Analysis 17 Table 8 Whole Farm Annual Equipment Investment and Business Overhead Costs 18 Table 9 Hourly Equipment Costs 19 Table 10 Operations with Materials and Equipment 19

INTRODUCTION

Organic alfalfa production involves growing labeling and marketing the crop according to National Organic Program (NOP) standards as defined by the United States Department of Agriculture (USDA) These standards require that alfalfa be produced with approved inputs given in the national materials list with brand names listed by the Washington State Department of Agriculture or the Organic Materials Review Institute Farmers must also take precautions against pesticide drift and other sources of prohibited contaminants In addition hay handling equipment as well as storage areas must be designated organic or properly cleaned between conventional and organic use with documentation Fields must be managed organically for at least three years prior to being certified as organic

Federal laws regulating organic products require producers to be certified organic through a USDA accredited certifier (public or private) and they must also register with the California Department of Food and Agriculturersquos (CDFA) Organic Program This registration process is handled through the County Agricultural Commissionersrsquo Offices throughout the state The certification process requires that the producer develop a written organic farm plan that describes how the farm is to be managed in accordance with USDA-NOP rules and subsequent approval of the plan by the certifier In addition yearly updates to the farm plan are required as well as yearly on-site farm audits by certifiers to ensure compliance with federal regulations There are many organic certifiers and costs and fees vary with each Sample fees are included in this study








ASSUMPTIONS































Cash Overhead






Non-Cash Overhead
















REFERENCES



























1 12 64

3 13






Quantity Acre Unit

Price or CostUnit C

Value or ostAcre












50 of new cost 152791 42166 16420 796 975 18191








237 34 9 3 231 374 12

663

1 12 10 64

3 13

102 765














100

4200

125 200

700 005 100 100

104 150

185 039

ton

acin

oz lb

acre each

ton ton

hrs hrs

gal gal

4500

212

4288 2154

5000 3500 1300

900

1428 1260

407 384

45 45 89 89 97 54 43

374 350

2 13

9 34 15 19 12

8 2 1 2

12 663






JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13


DEC TOTAL 13




0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663






YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236







































ASSUMPTIONS































Cash Overhead






Non-Cash Overhead
















REFERENCES



























1 12 64

3 13






Quantity Acre Unit

Price or CostUnit C

Value or ostAcre












50 of new cost 152791 42166 16420 796 975 18191








237 34 9 3 231 374 12

663

1 12 10 64

3 13

102 765














100

4200

125 200

700 005 100 100

104 150

185 039

ton

acin

oz lb

acre each

ton ton

hrs hrs

gal gal

4500

212

4288 2154

5000 3500 1300

900

1428 1260

407 384

45 45 89 89 97 54 43

374 350

2 13

9 34 15 19 12

8 2 1 2

12 663






JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13


DEC TOTAL 13




0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663






YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236
























































Cash Overhead






Non-Cash Overhead
















REFERENCES



























1 12 64

3 13






Quantity Acre Unit

Price or CostUnit C

Value or ostAcre












50 of new cost 152791 42166 16420 796 975 18191








237 34 9 3 231 374 12

663

1 12 10 64

3 13

102 765














100

4200

125 200

700 005 100 100

104 150

185 039

ton

acin

oz lb

acre each

ton ton

hrs hrs

gal gal

4500

212

4288 2154

5000 3500 1300

900

1428 1260

407 384

45 45 89 89 97 54 43

374 350

2 13

9 34 15 19 12

8 2 1 2

12 663






JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13


DEC TOTAL 13




0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663






YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236














































REFERENCES



























1 12 64

3 13






Quantity Acre Unit

Price or CostUnit C

Value or ostAcre












50 of new cost 152791 42166 16420 796 975 18191








237 34 9 3 231 374 12

663

1 12 10 64

3 13

102 765














100

4200

125 200

700 005 100 100

104 150

185 039

ton

acin

oz lb

acre each

ton ton

hrs hrs

gal gal

4500

212

4288 2154

5000 3500 1300

900

1428 1260

407 384

45 45 89 89 97 54 43

374 350

2 13

9 34 15 19 12

8 2 1 2

12 663






JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13


DEC TOTAL 13




0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663






YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236














































1 12 64

3 13






Quantity Acre Unit

Price or CostUnit C

Value or ostAcre












50 of new cost 152791 42166 16420 796 975 18191








237 34 9 3 231 374 12

663

1 12 10 64

3 13

102 765














100

4200

125 200

700 005 100 100

104 150

185 039

ton

acin

oz lb

acre each

ton ton

hrs hrs

gal gal

4500

212

4288 2154

5000 3500 1300

900

1428 1260

407 384

45 45 89 89 97 54 43

374 350

2 13

9 34 15 19 12

8 2 1 2

12 663






JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13


DEC TOTAL 13




0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663






YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236



































Quantity Acre Unit

Price or CostUnit C

Value or ostAcre












50 of new cost 152791 42166 16420 796 975 18191








237 34 9 3 231 374 12

663

1 12 10 64

3 13

102 765














100

4200

125 200

700 005 100 100

104 150

185 039

ton

acin

oz lb

acre each

ton ton

hrs hrs

gal gal

4500

212

4288 2154

5000 3500 1300

900

1428 1260

407 384

45 45 89 89 97 54 43

374 350

2 13

9 34 15 19 12

8 2 1 2

12 663






JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13


DEC TOTAL 13




0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663






YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236







































237 34 9 3 231 374 12

663

1 12 10 64

3 13

102 765














100

4200

125 200

700 005 100 100

104 150

185 039

ton

acin

oz lb

acre each

ton ton

hrs hrs

gal gal

4500

212

4288 2154

5000 3500 1300

900

1428 1260

407 384

45 45 89 89 97 54 43

374 350

2 13

9 34 15 19 12

8 2 1 2

12 663






JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13


DEC TOTAL 13




0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663






YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236











































100

4200

125 200

700 005 100 100

104 150

185 039

ton

acin

oz lb

acre each

ton ton

hrs hrs

gal gal

4500

212

4288 2154

5000 3500 1300

900

1428 1260

407 384

45 45 89 89 97 54 43

374 350

2 13

9 34 15 19 12

8 2 1 2

12 663






JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13


DEC TOTAL 13




0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663






YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236




































JAN 13

FEB 13

MAR 13

APR 13

MAY 13

JUN 13

JUL 13

AUG 13


DEC TOTAL 13




0 5

0 2

0 58

1 138

1 69

2 70

2 116

3 134

3 71

0 0 0 12 663






YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236




































YIELD (Tonacre) 550 600 650 700 750 800 850






215 595 677 760 842 925 1007 1090 230 677 767 857 947 1037 1127 1217 245 760 857 955 1052 1150 1247 1345 260 842 947 1052 1157 1262 1367 1472 275 925 1037 1150 1262 1375 1487 1600 290 1007 1127 1247 1367 1487 1607 1727 305 1090 1217 1345 1472 1600 1727 1855



215 493 575 657 740 822 905 987 230 575 665 755 845 935 1025 1115 245 658 755 852 950 1047 1145 1242 260 740 845 950 1055 1160 1265 1370 275 823 935 1047 1160 1272 1385 1497 290 905 1025 1145 1265 1385 1505 1625 305 988 1115 1242 1370 1497 1625 1752



215 -23 59 141 224 306 389 471 230 59 149 239 329 419 509 599 245 142 239 336 434 531 629 726 260 224 329 434 539 644 749 854 275 307 419 531 644 756 869 981 290 389 509 629 749 869 989 1109 305 472 599 726 854 981 1109 1236

































SAMPLE COSTS TO ESTABLISH AND PRODUCE · SAMPLE COSTS TO ESTABLISH AND PRODUCE ... The hypothetical...

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Transcript of SAMPLE COSTS TO ESTABLISH AND PRODUCE · SAMPLE COSTS TO ESTABLISH AND PRODUCE ... The hypothetical...