2022 Cost of Production
    Crops
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                                                Guidelines For Estimating
                                        Crop Production Costs - 2022
                                                                                 Date:  February, 2022
                                                                      **Revised - 2022 MASC values & Crop Prices**
                 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 2022 Guidelines (Dollars Per Acre)
                                                                           Wheat -                                                    Wheat - 
                                                                           Hard Red                                                  Northern 
                                                                Canola      Spring    Soybeans     Oats        Corn        Barley    Hard Red     Peas
                          A.  Operating Costs
                            Seed & Treatment                      $67.50     $32.50     $97.10      $35.00      $99.20      $28.00     $32.50      $88.00
                            Fertilizer                          $209.28     $183.85     $52.92     $133.49     $256.08     $149.91    $202.84      $34.02
                            Pesticide                             $46.38     $53.17     $19.33      $23.25      $41.13      $53.75     $53.17      $69.67
                            Fuel                                  $28.05     $29.39     $25.20      $35.45      $35.97      $31.07     $30.06      $24.25
                            Machinery Operating & Lease           $22.88     $22.88     $22.88      $22.88      $22.88      $22.88     $22.88      $22.88
                            Labour - Hired                         $5.00      $5.00       $5.00      $5.00        $5.00      $5.00      $5.00       $5.00
                            Crop Insurance                        $12.14      $9.06     $18.67      $20.19      $42.64      $14.67     $12.86      $16.17
                            Hail Insurance                         $9.38      $9.38     $12.19       $9.38        $9.38      $9.38      $9.38      $18.75
                            Drying  & Other Costs                 $17.75     $17.75     $17.75      $17.75      $52.75      $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                          $7.18     $10.12       $5.87     $18.77      $22.03      $12.40     $11.10       $7.51
                            Interest on Operating                 $11.08      $9.76       $7.36      $8.47      $15.11       $9.06     $10.38       $8.04
                            Total Operating                     $454.12     $400.35    $301.77     $347.11     $619.67     $371.37    $425.41    $329.54
                          B.   Fixed Costs
                            Land Costs                            $78.19     $78.19     $78.19      $78.19      $78.19      $78.19     $78.19      $78.19
                            Machinery Costs                       $68.01     $68.01     $68.01      $68.01      $76.17      $68.01     $68.01      $68.01
                            Total Fixed                         $146.20     $146.20    $146.20     $146.20     $154.36     $146.20    $146.20    $146.20
                          C.   Owners - Labour & Living           $25.00     $25.00     $25.00      $25.00      $25.00      $25.00     $25.00      $25.00
                          Total Costs                           $625.32     $571.55    $472.97     $518.31     $799.03     $542.57    $596.61    $500.74
                                                                                         Profitability Analysis                                                                                           
                          Estimated Farmgate
                            Target Price $ per unit               $18.00     $10.00     $15.00       $6.25        $7.00      $7.25      $9.50      $13.00
                            Premium $ per unit                     $0.00      $0.00       $0.00      $0.00        $0.00      $0.00      $0.00       $0.00
                            Target Yield per acre                     44          62         36        115          135         76          68         46
                            Unit type (bu. or lb.)                    bu          bu         bu         bu           bu         bu          bu         bu
                            Gross Revenue / acre                $792.00     $620.00    $540.00     $718.75     $945.00     $551.00    $646.00    $598.00
                             Operating Expense Ratio              57.3%       64.6%      55.9%      48.3%        65.6%      67.4%       65.9%      55.1%
                          Marginal Returns
                             Over Operating Costs               $337.88    $219.65    $238.23     $371.64     $325.33     $179.63    $220.59     $268.46
                             Over Total Costs (Net Profit)      $166.68     $48.45      $67.03    $200.44     $145.97       $8.43     $49.39      $97.26
                                       Profitability Ranking       3          10          7          1           4          16          9           6
                          Return on Investment (ROI)             26.66%       8.48%     14.17%     38.67%       18.27%      1.55%       8.28%     19.42%
                          Return on Asset (ROA)                   7.27%       4.28%      4.75%      8.12%        6.95%      3.27%       4.31%      5.52%
                                                                                          Breakeven Analysis                                                                                             
                          Breakeven Price Per Unit
                             Over Operating Costs                 $10.32      $6.46       $8.38      $3.02        $4.59      $4.89      $6.26       $7.16
                            Over Land Costs                        $1.78      $1.26       $2.17      $0.68        $0.58      $1.03      $1.15       $1.70
                            Over Machinery Costs                   $1.55      $1.10       $1.89      $0.59        $0.56      $0.89      $1.00       $1.48
                            Over Owners Labour & Lliving           $0.57      $0.40       $0.69      $0.22        $0.19      $0.33      $0.37       $0.54
                            Over Total Costs                      $14.21      $9.22     $13.14       $4.51        $5.92      $7.14      $8.77      $10.89
                          Breakeven Yield (Bu or lb.)
                            Over Operating Costs                    25.2        40.0       20.1       55.5         88.5       51.2        44.8         25
                            Over Land Costs                          4.3         7.8        5.2       12.5         11.2       10.8         8.2        6.0
                            Over Machinery Costs                      3.8        6.8        4.5       10.9         10.9         9.4        7.2        5.2
                            Over Owners Labour & Lliving             1.4         2.5        1.7         4.0         3.6         3.4        2.6        1.9
                            Over Total Costs                        34.7        57.1       31.5       82.9        114.2       74.8        62.8       38.1
                          Breakeven Yield Risk Ratio               127%       109%        114%       139%         118%       102%       108%        121%
                            (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.