2023 Cost of Production
    Crops
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                                                Guidelines For Estimating
                                         Crop Production Costs - 2023
                                                                                    Date:  January, 2023
                  The following budgets are estimates of the cost of producing the most commonly grown field crops 
                  in Manitoba.  General Manitoba Agriculture recommendations are assumed in using fertilizers and 
                  chemical inputs. These figures provide an economic evaluation of the crops and estimated yields 
                  required to cover all costs.  Costs include labour, investment and depreciation, but do not include 
                  management costs, nor do they necessarily represent the average cost of production in Manitoba.
                  These budgets may be adjusted by putting in your own figures.  As a producer you are encouraged 
                  to calculate your own costs of production for various crops. On each farm, costs and yields differ 
                  due to soil type, climate and agronomic practices. 
                  This tool is available as an Excel worksheet at: 
                  The Farm Machinery Custom and Rental Rate Guide
                                                                                                            is also available to help
                  determine machinery costs.
                  The  CropPlan Production Cost Calculator                  is also available for producers to
                  estimate the cash cost of producing field crops on their farm on an annual basis.  CropPlan 
                  calculates marginal returns, breakeven yields, breakeven crop prices on total production and 
                  remaining unsold inventory, land and machinery cost analysis and cash based financial ratios.  
                  Note: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation 
                  and use of this information is the responsibility of the user.  If you need help with a budget, contact a Farm Management 
                  Specialist.
            Guidelines: Crop Production Costs                                                                                                                          2
                                                      Crop Production Costs 2023 Guidelines (Dollars Per Acre)
                                                                            Wheat -                                                               Wheat - 
                                                                           Hard Red                                                              Northern 
                                                                Canola      Spring    Soybeans      Oats        Corn       Barley       Peas     Hard Red
                          A.  Operating Costs
                            Seed & Treatment                      $77.50      $34.00     $97.10      $30.00     $102.40      $29.00     $88.00      $34.00
                            Fertilizer                           $184.03    $164.11      $52.92    $119.38      $230.92    $133.54      $34.02    $180.26
                            Crop Protection                       $66.27      $55.33     $16.67     $22.50       $37.88      $59.50     $73.63      $55.33
                            Fuel                                  $44.54     $45.78      $40.78     $55.96       $54.91      $49.19     $38.75      $46.75
                            Machinery Operating & Lease           $25.00     $25.00      $25.00     $25.00       $25.00      $25.00     $25.00      $25.00
                            Labour - Hired                         $5.20       $5.20      $5.20       $5.20       $5.20       $5.20      $5.20       $5.20
                            Crop Insurance                        $13.73     $10.65      $20.26     $21.78       $44.23      $16.26     $17.76      $14.45
                            Hail Insurance                        $12.50     $12.50      $16.25     $12.50       $12.50      $12.50     $25.00      $12.50
                            Drying  & Other Costs                 $17.75     $17.75      $17.75     $17.75       $87.75      $17.75     $17.75      $17.75
                            Land Taxes                            $17.50     $17.50      $17.50     $17.50       $17.50      $17.50     $17.50      $17.50
                            Storage Costs                         $11.43     $16.63       $9.35     $31.18       $35.08      $20.27     $12.47      $18.19
                            Interest on Operating                 $18.42      $15.67     $12.35      $13.90      $25.32      $14.95     $13.76      $16.54
                            Total Operating                      $493.87    $420.13     $331.13    $372.65      $678.69    $400.66     $368.84    $443.47
                          B.   Fixed Costs
                            Land Costs                            $97.17     $97.17      $97.17     $97.17       $97.17      $97.17     $97.17      $97.17
                            Machinery Costs                       $86.37      $86.37     $86.37      $86.37      $96.73      $86.37     $86.37      $86.37
                            Total Fixed                          $183.54    $183.54     $183.54    $183.54      $193.90    $183.54     $183.54    $183.54
                          C.   Owners - Labour & Living           $26.00     $26.00      $26.00     $26.00       $26.00      $26.00     $26.00      $26.00
                          Total Costs                            $703.41    $629.67     $540.67    $582.18      $898.59    $610.20     $578.38    $653.01
                                                                                          Profitability Analysis                                                                                            
                          Estimated Farmgate
                            Target Price $ per unit               $17.00     $10.50      $16.00       $5.00       $7.50       $7.25     $13.00      $10.00
                            Premium $ per unit                     $0.00       $0.00      $0.00       $0.00       $0.00       $0.00      $0.00       $0.00
                            Target Yield per acre                     44          64         36         120         135          78          48         70
                            Unit type (bu. or lb.)                    bu          bu         bu          bu           bu         bu          bu         bu
                            Gross Revenue / acre                 $748.00    $672.00     $576.00    $600.00    $1,012.50    $565.50     $624.00    $700.00
                            Operating Expense Ratio                66.0%      62.5%       57.5%      62.1%        67.0%      70.9%       59.1%      63.4%
                          Marginal Returns
                            Over Operating Costs                $254.13    $251.87     $244.87    $227.35      $333.81     $164.84    $255.16     $256.53
                            Over Total Costs (Net Profit)        $44.59      $42.33     $35.33      $17.82     $113.91     ($44.70)    $45.62      $46.99
                                       Profitability Ranking       6          7           8          13          1           16          5           4
                          Return on Investment (ROI)               6.34%      6.72%       6.53%      3.06%      12.68%      (7.33%)      7.89%      7.20%
                          Return on Asset (ROA)                    4.48%      4.43%       4.27%      3.88%        6.28%      2.46%       4.50%      4.53%
                                                                                           Breakeven Analysis                                                                                              
                          Breakeven Price Per Unit
                            Over Operating Costs                  $11.22       $6.56      $9.20       $3.11       $5.03       $5.14      $7.68       $6.34
                            Over Land Costs                        $2.21       $1.52      $2.70       $0.81       $0.72       $1.25      $2.02       $1.39
                            Over Machinery Costs                   $1.96       $1.35      $2.40       $0.72       $0.72       $1.11      $1.80       $1.23
                            Over Owners Labour & Lliving           $0.59       $0.41      $0.72       $0.22       $0.19       $0.33      $0.54       $0.37
                            Over Total Costs                      $15.99       $9.84     $15.02       $4.85       $6.66       $7.82     $12.05       $9.33
                          Breakeven Yield (Bu or lb.)
                            Over Operating Costs                     29.1       40.0        20.7       74.5         90.5       55.3        28.4         44
                            Over Land Costs                           5.7        9.3         6.1       19.4         13.0       13.4         7.5         9.7
                            Over Machinery Costs                      5.1        8.2         5.4       17.3         12.9       11.9         6.6         8.6
                            Over Owners Labour & Lliving              1.5        2.5         1.6        5.2          3.5         3.6        2.0         2.6
                            Over Total Costs                         41.4       60.0        33.8      116.4       119.9        84.2        44.5       64.9
                          Breakeven Yield Risk Ratio               106%        107%       107%        103%        113%         93%       108%        108%
                            (Target Yield per Acre / BE Yield)
                            Note: This budget is only a guide and is not intended as an in depth study of the cost of production of this 
                            industry. Interpretation and utilization of this information is the responsibility of the user.