2003 Enterprise Budgets for Winter Wheat, Spring Wheat, Spring Barley, Peas and Lentils in the 18 to 22-Inch Rainfall Area, Whitman County, Washington

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1 Farm Business Management Reports EB1970E 2003 Enterprise Budgets for Winter Wheat, Spring Wheat, Spring Barley, Peas and Lentils in the 18 to 22-Inch Rainfall Area, Whitman County, Washington Randy Baldree Herbert Hinman Online at:

2 PREFACE Enterprise costs and returns vary from one location to the next and over time for any particular farming operation. Variability stems from differences in the following: Capital, labor and natural resources Type and size of machinery complement Cultural practices Size of farm enterprise Crop yields Input prices Commodity prices Management skill Costs can also be calculated differently depending on the intended use of the cost estimate. The information in this publication provides cost of production estimates for producers in Whitman County, Washington. To avoid drawing unwarranted conclusions for any particular farm or group of farms, the reader must closely examine the assumptions used. If they are not appropriate for the situation under consideration, adjustments in the costs and/or returns should be made. i

3 TABLE OF CONTENTS Introduction...1 Sources of Information...2 Budget Assumptions...2 Discussion of Budget Information...2 Detailed Results...5 APPENDIX I: 2003 Cost of Producing Winter Wheat, Spring Wheat, Spring Barley, Peas and Lentils, Whitman County, Washington, Rainfall Area...7 ii

4 2003 Enterprise Budgets for Winter Wheat, Spring Wheat, Spring Barley, Peas and Lentils in the 18 to 22-Inch Rainfall Area Whitman County, Washington Randy Baldree and Herbert Hinman 1 INTRODUCTION This publication presents projected costs and returns for winter wheat, spring wheat, spring barley, peas and lentils grown in the rainfall area of Whitman County. These budgets are not representative of a particular farm. Instead, the budgets represent costs and returns anticipated under the specific assumptions adopted for the study. We recommend that individual growers use these budgets as a guide for developing budgets for their own farming operations. In order to get a better understanding of how to read and use crop budgets distributed by Washington State University, go to the WSU Farm Management Web site at and click on Publication Links, click on Unpublished and then click on and download the manuscript Understanding and Using WSU Crop Enterprise Budgets Rainfall Areas Figure 1. Whitman County, Washington 1 Randy Baldree is a county extension agent located in Colfax, Washington, and Herbert Hinman is a farm management specialist located in Pullman, Washington, Cooperative Extension, Washington State University. 1

5 SOURCES OF INFORMATION A committee of experienced Whitman County grain producers was assembled at the request of the county extension agent. This committee identified the machinery complement, field operations and inputs commonly used on well-managed operations. Local agricultural supply companies were contacted to obtain current price information on materials and services. BUDGET ASSUMPTIONS The committee assumed the following in developing the data: 1. The representative farms include 2,000 acres. 2. Since yield variability is quite common in Whitman County, yields were varied for each enterprise to demonstrate the substantial impact yields can have on per unit costs. 3. Prices received for the budgeted crops are $3.75 per bushel for both spring and winter wheat, $100 per ton for barley, 11 per pound for peas and 18.5 per pound for lentils. 4. Machinery values and costs vary widely from farm to farm in Whitman County. When replacing machinery producers replace with both new and used equipment. Thus, the machinery complement used in constructing these budgets is a representation of what a machinery complement might look like on a typical farm in the rainfall area. 5. The interest rate is 8.5%. 6. The farm is owned, managed and operated by the same person. Due to the information and procedure followed, the budgets should be viewed as typical or representative, rather than a mathematical average of a large number of producers. Where such factors as farm size, machinery complement and hourly use, cultural practices and yield differ from those assumed in this publication, substantially different enterprise costs and returns may result. Also, this budget includes only production costs and does not consider storage, handling, transportation and interest costs associated with marketing the crop. DISCUSSION OF BUDGET INFORMATION Summaries of the cost and return estimates per acre for winter wheat following peas or lentils, and winter wheat following spring wheat or spring barley in the rainfall area of Whitman County are presented in Tables 1 and 2, respectively. In each table, costs and returns at four different yield levels are presented. 2

6 Table 1. Summary of Cost and Return Estimates per Acre for Winter Wheat following Peas or Lentils in the Inch Rainfall Area of Whitman County. Production Level (Bushels) Expected Price ($/Bushel) Variable Cost Fixed Cost (excl. land cost) Total Cost (excl. land cost) Returns Cost Land Cost Total Cost (incl. land cost) Returns Cost Average Cost ($/Bushel) Table 2. Summary of Cost and Return Estimates per Acre for Winter Wheat following Spring Wheat or Spring Barley in the Inch Rainfall Area of Whitman County. Production Level (Bushels) Expected Price ($/Bushel) Variable Cost Fixed Cost (excl. land cost) Total Cost (excl. land cost) Returns - Cost Land Cost Total Cost (incl. land cost) Returns - Cost Average Cost ($/Bushel) Receipts are broken down by production levels and assumed price received. Costs are broken down by variable and fixed cost (excluding land cost), total cost (excluding land cost), land cost and total cost (including land cost). The reason costs are broken down in this manner is to show that cost of production for similar production systems vary little, regardless of production level, when land costs are not taken into consideration. Land costs, included either as real or opportunity costs, are based on the share rental arrangement typical in the area. In this study, net land rental cost was calculated as: Crop Value Fertilizer Cost Chemical Cost Crop Insurance Cost Land Taxes The operator pays all other production costs. 3

7 Since the net land rental value is based on production level, land cost varies directly as to production level that in turn directly affects the total cost value. For example, for winter wheat in Tables 1 and 2, total costs (excluding land cost) are about the same regardless of production level. However, when land costs are included, significant differences in total cost emerge. Thus, by breaking out land costs and showing results with and without land costs gives one a better comparison as to the cost differences. The complete details as to schedule of operations, input costs and the machinery complement used for crops in the rainfall area are presented in the Appendix. An explanation of how to read the tables presented in the Appendix is presented in the next section. Summaries of the cost and return estimates per acre for spring wheat, spring barley, peas and lentils are presented in Tables 3, 4, 5 and 6, respectively. For each crop of winter wheat, costs and returns are presented at four different yield levels. The complete details of operations schedule, input costs and the machinery complement used for each of these crops are presented in the Appendix. Table 3. Summary of Cost and Return Estimates per Acre for Spring Wheat following Spring Barley in the Inch Rainfall Area of Whitman County. Production Level (Bushels) Expected Price ($/Bushel) Variable Cost Fixed Cost (excl. land cost) Total Cost (excl. land cost) Returns - Cost Land Cost Total Cost (incl. land cost) Returns - Cost Average Cost ($/Bushel) Table 4. Summary of Cost and Return Estimates per Acre for Spring Barley following Winter Wheat in the Inch Rainfall Area of Whitman County. Production Level (Tons) Expected Price ($/Ton) Variable Cost Fixed Cost (excl. land cost) Total Cost (excl. land cost) Returns - Cost Land Cost Total Cost (incl. land cost) Returns - Cost Average Cost ($/Ton)

8 Table 5. Summary of Cost and Return Estimates per Acre for Peas following Winter Wheat in the Inch Rainfall Area of Whitman County. Production Level (Lbs.) Expected Price ( /Lb.) Variable Cost Fixed Cost (excl. land cost) Total Cost (excl. land cost) Returns - Cost Land Cost Total Cost (incl. land cost) Returns - Cost Average Cost ( /Lb.) Table 6. Summary of Cost and Return Estimates per Acre for Lentils following Winter Wheat in the Inch Rainfall Area of Whitman County. Production Level (Lbs.) Expected Price ( /Lb.) Variable Cost Fixed Cost (excl. land cost) Total Cost (excl. land cost) Returns - Cost Land Cost Total Cost (incl. land cost) Returns - Cost Average Cost ( /Lb.) Detailed Results The detailed budget results for each enterprise produced in the rainfall area of Whitman County are presented in the Appendix. Each detailed budget is for the yield level thought by the producer committee to be most representative of the given situation. For each enterprise situation in the Appendix there are two tables that outline the cost and returns for producing the enterprise in question.. The first table, Schedule of Operations and Estimated Costs Per Acre for..., outlines the schedule of field operations by calendar month, the type of machinery used, and the hours used per acre for the enterprise being analyzed. The costs are divided into two categories. The first is machinery and land fixed costs. The second category, variable costs, is associated with operating machinery, labor and purchasing services and materials. Whenever 5

9 services and/or materials are purchased, what is purchased, how much and at what price is footnoted at the bottom of the table. Total cost is the sum of fixed and variable cost. Machinery fixed cost includes depreciation, interest on the investment, property taxes, insurance and housing. For the overall farm operation, these costs do not vary with the crops produced, given the ownership of a specific machinery complement, and are incurred whether or not crops are grown. Machinery fixed costs for a specific field operation are determined by multiplying the machine hours per acre times the hourly fixed cost as shown in Table 20. The hourly fixed costs are determined by dividing the total fixed cost by the annual hours of machinery use for the representative firm. Land fixed costs include taxes and net rent which is based on a one-third land owner and twothirds tenant crop share with the land owner paying the land taxes and one-third the cost of fertilizer, chemicals and crop insurance. The tenant pays all other production costs. While the owner-operator will not actually experience a land rental cost, the cost represents the minimum returns the owneroperator must realize to justify growing the crop him or herself. This net rent return represents the income the owner-operator forgoes by producing the crop rather than renting to a tenant who produces the crop. As a result of owning land, the farmer receives both current returns from the farming operation and any long-term appreciation in land value. However, the farmer would continue to realize land value appreciation even if the land is rented out. Consequently, the appropriate land charge for growing the crop is only the forgone net rent. As used in this publication, for land that is owned and not rented, land cost is termed an opportunity cost to indicate that it is not an out-of-pocket expense, but rather a return that is forgone as a result of choosing to use the land to grow this crop. To determine the profitability of crop production relative to other activities, the owner-operator may want to consider these forgone returns, or opportunity costs, along with the usual production expenses. Variable costs vary directly with the crop grown and the number of acres produced. Variable costs include fuel, oil, repairs, fertilizer, chemicals, custom work, overhead and interest on operating capital. Labor, including that provided by the owner-operator, is also included as a variable cost. The second table, Itemized Cost Per Acre for..., itemizes the costs appearing in the Schedule of Operations and Estimated Cost Per Acre for... the respective crop enterprise. Most of the items are self-explanatory or have been explained previously. The entry Machinery Interest does, however, warrant some additional explanation. Machinery interest costs are calculated on the average annual investment in the machine. The formula used to calculate the average machine investment is: Purchase cost + Salvage value The 8.5% interest charge made against this average investment represents an opportunity cost (returns forgone by investing in a given machine implement rather than in an alternative investment) or interest paid on money borrowed to finance machine purchases, or both. Machinery interest cost for one acre of the crop enterprise being analyzed is determined by multiplying the respective machine hours per acre times the per hour interest costs shown in Table

10 APPENDIX 2003 COST OF PRODUCING WINTER WHEAT, SPRING WHEAT, SPRING BARLEY, PEAS AND LENTILS WHITMAN COUNTY, WASHINGTON RAINFALL AREA 7

11 8 TABLE 7. SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE FOR WINTER WHEAT FOLLOWING PEAS OR LENTILS IN THE RAINFALL AREA OF WHITMAN COUNTY. VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & MACH VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST $ $ $ $ $ $ $ $ SPRAY (10%) [1] ATV W/SPRAYER OCT FERTILIZE[2] 300HP-CHAL W/36' RIPPER SHOOTR OCT HAUL SEED 2-TON TRUCK OCT SEED[3] 300HP-CHAL W/36' JD 455 DRILL OCT SPRAY[4] CUSTOM AERIAL APPLIED APR CROP INSURANCE FIRE AND HAIL INSURANCE MAY SPRAY (5%) [5] LABOR W/BACK PACK SPRAYER JUL HARVEST 30' COMBINE AUG HAUL WHEAT 2-T0N TRUCK AUG HAUL WHEAT TANDEM AXLE TRUCK AUG MISC USE 2-TON TRUCK ANN MISC USE TANDEM AXLE TRUCK ANN MISC USE 50HP-WT W/BUCKET ANN MISC USE 3/4-TON PICKUP ANN MISC USE ATV ANN OVERHEAD UTILITIES, LEGAL, ACCT, ETC. ANN TAXES LAND TAXES ANN LAND COST NET LAND RENT ANN TOTAL PER ACRE SERVICES AND MATERIALS USED: [1] 1 QT. $9.00/QT., 6.4 OZS. $.145/OZ., 1.7 LBS. AMMONIA $.12/LB. AND 4 OZS. $.70/OZ. PER APPLIED ACRE. [2] FERTILIZER AND $40/ACRE. [3] RENTED 36 JD 455 $7.50/ACRE. 90 LBS. WHEAT $.167/LB. [4] CUSTOM $5.00/ACRE. HERBICIDE $20.00/ACRE. [5] 1 QT. $9.00/QT., 6.4 OZS. $.145/OZ. AND 1.7 LBS. AMMONIA $.12/LB. PER APPLIED ACRE.

12 TABLE 8. ITEMIZED COST PER ACRE FOR WINTER WHEAT FOLLOWING PEAS OR LENTILS IN THE RAINFALL AREA OF WHITMAN COUNTY. PRICE OR VALUE OR YOUR UNIT COST/UNIT QUANTITY COST FARM VARIABLE COSTS $ $ SPOT SPRAY* ACRE FERT & APPLICATION ACRE 'JD 455 DRILL ACRE WHEAT SEED LB CUSTOM AERIAL ACRE HERBICIDES ACRE CROP INSURANCE ACRE MACHINERY REPAIRS ACRE MACHINE FUEL/LUBE ACRE LABOR(TRAC/MACH) HOUR OVERHEAD ACRE INTEREST ON OP. CAP. ACRE TOTAL VARIABLE COST FIXED COSTS $ $ MACHINE DEPRECIATION ACRE MACHINE INTEREST ACRE MACHINE INSURANCE ACRE MACHINE TAXES ACRE MACHINE HOUSING ACRE LAND TAXES ACRE NET LAND RENT* ACRE TOTAL FIXED COST TOTAL COST *SEE SPOT SPRAY FOOTNOTES ON TABLE 1. **1/3 CROP 1/3 FERTILIZER 1/3 CHEMICALS 1/3 CROP INSURANCE - LAND TAXES. ASSUMING 82-BUSHEL YIELD SELLING AT $3.75/BU. AVERAGE COST = $2.81/BU. 9

13 TABLE 9. SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE FOR WINTER WHEAT FOLLOWING SPRING WHEAT OR SPRING BARLEY IN THE RAINFALL AREA OF WHITMAN COUNTY. 10 VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & MACH VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST $ $ $ $ $ $ $ $ SPRAY (5%) [1] ATV W/SPRAYER OCT FERTILIZE[2] 300HP-CHAL W/36' RIPPER SHOOTR OCT HAUL SEED 2-TON TRUCK OCT SEED[3] 300HP-CHAL W/36' JD 455 DRILL OCT SPRAY HERB[4] CUSTOM AERIAL APPLIED APR CROP INSURANCE FIRE AND HAIL INSURANCE MAY SPRAY (5%) [5] LABOR W/BACK PACK SPRAYER JUL HARVEST 30' COMBINE AUG HAUL WHEAT 2-T0N TRUCK AUG HAUL WHEAT TANDEM AXLE TRUCK AUG MISC USE 2-TON TRUCK ANN MISC USE TANDEM AXLE TRUCK ANN MISC USE 50HP-WT W/BUCKET ANN MISC USE 3/4-TON PICKUP ANN MISC USE ATV ANN OVERHEAD UTILITIES, LEGAL, ACCT, ETC. ANN TAXES LAND TAXES ANN LAND COST NET LAND RENT ANN TOTAL PER ACRE SERVICES AND MATERIALS USED: [1] 1 QT. $9.00/QT., 6.4 OZS. $.145/OZ., 1.7 LBS. AMMONIA $.12/LB. AND 4 OZS. $.70/OZ. PER APPLIED ACRE. [2] FERTILIZER AND $40/ACRE. [3] RENTED 36 JD 455 $7.50/ACRE. 90 LBS. WHEAT $.167/LB. [4] CUSTOM $5.00/ACRE. HERBICIDE $14.00/ACRE. [5] 1 QT. $9.00/QT., 6.4 OZS. $.145/OZ. AND 1.7 LBS. AMMONIA $.12/LB. PER APPLIED ACRE.

14 TABLE 10. ITEMIZED COST PER ACRE FOR WINTER WHEAT FOLLOWING SPRING WHEAT OR SPRING BARLEY IN THE RAINFALL AREA OF WHITMAN COUNTY. PRICE OR VALUE OR YOUR UNIT COST/UNIT QUANTITY COST FARM VARIABLE COSTS $ $ SPOT SPRAY* ACRE FERT & APPLICATION ACRE 'JD 455 DRILL ACRE WHEAT SEED LB CUSTOM AERIAL ACRE HERBICIDES ACRE CROP INSURANCE ACRE MACHINERY REPAIRS ACRE MACHINE FUEL/LUBE ACRE LABOR(TRAC/MACH) HOUR OVERHEAD ACRE INTEREST ON OP. CAP. ACRE TOTAL VARIABLE COST FIXED COSTS $ $ MACHINE DEPRECIATION ACRE MACHINE INTEREST ACRE MACHINE INSURANCE ACRE MACHINE TAXES ACRE MACHINE HOUSING ACRE LAND TAXES ACRE NET LAND RENT** ACRE TOTAL FIXED COST TOTAL COST *SEE SPOT SPRAY FOOTNOTES ON TABLE 1. **1/3 CROP 1/3 FERTILIZER 1/3 CHEMICALS 1/3 CROP INSURANCE - LAND TAXES. ASSUMING 82-BUSHEL YIELD SELLING AT $3.75/BU. AVERAGE COST = $2.80/BU. 11

15 TABLE 11. SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE FOR SPRING WHEAT FOLLOWING SPRING BARLEY IN THE RAINFALL AREA OF WHITMAN COUNTY. 12 VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & MACH VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST $ $ $ $ $ $ $ $ PLOW (50%) 300HP-CHAL W/10BTM PLOW OCT CHISEL (50%) 300HP-CHAL W/23' CHISEL OCT HAUL WATER 2-TON TRUCK W/SLIP TANK MAR SPRAY WEEDS[1] 300HP-CHAL W/80' SPRAYER MAR CULTIVATE/HARROW 300HP-CHAL W/36'CULT&TINE HAR APR FERTILIZE[2] 300HP-CHAL W/36' RIPPER SHOOTR APR CULTIVATE/HARROW 300HP-CHAL W/36'CULT&TINE HAR APR HAUL SEED 2-TON TRUCK MAY SEED[3] 300HP-CHAL W/36' JD 455 DRILL MAY HAUL WATER 2-TON TRUCK W/SLIP TANK MAY SPRAY HERB[4] 300HP-CHAL W/80' SPRAYER MAY CROP INSURANCE FIRE AND HAIL INSURANCE MAY SPRAY FUNGICD[5] CUSTOM AERIAL JUN HARVEST 30' COMBINE AUG HAUL WHEAT 2-T0N TRUCK AUG HAUL WHEAT TANDEM AXLE TRUCK AUG MISC USE TANDEM AXLE TRUCK ANN MISC USE 2-TON TRUCK ANN MISC USE ATV ANN MISC USE 3/4-TON PICKUP ANN MISC USE 50HP-WT W/BUCKET ANN OVERHEAD UTILITIES, LEGAL, ACCT, ETC. ANN TAXES LAND TAXES ANN LAND COST NET LAND RENT ANN TOTAL PER ACRE SERVICES AND MATERIALS USED: [1] SPRAYER $1.75/ACRE. 3/4 QT. $9.00/QT. 6.4 LBS. $.145/OZ. AND 1.7 LBS. AMMONIA $.12/LB. [2] FERTILIZER AND $35/ACRE. [3] DRILL $7.50/ACRE. 90 LBS. OF WHEAT $.167/LB. [4] SPRAYER $1.75/ACRE. $32/ACRE. [5] AERIAL $5.00/ACRE. $10/ACRE.

16 TABLE 12. ITEMIZED COST PER ACRE FOR SPRING WHEAT FOLLOWING SPRING BARLEY IN THE RAINFALL AREA OF WHITMAN COUNTY. PRICE OR VALUE OR YOUR UNIT COST/UNIT QUANTITY COST FARM VARIABLE COSTS $ $ GLYPHOSPHATE QT AMMONIA SULFATE LB SURFACTANT OZ HERBICIDE ACRE ' SPRAYER ACRE CROP INSURANCE ACRE WHEAT SEED LB 'JD 455 DRILL ACRE FERT & APPLICATOR ACRE FUNGICIDE ACRE CUSTOM AERIAL ACRE MACHINERY REPAIRS ACRE MACHINE FUEL/LUBE ACRE LABOR(TRAC/MACH) HOUR OVERHEAD ACRE INTEREST ON OP. CAP. ACRE TOTAL VARIABLE COST FIXED COSTS $ $ MACHINE DEPRECIATION ACRE MACHINE INTEREST ACRE MACHINE INSURANCE ACRE MACHINE TAXES ACRE MACHINE HOUSING ACRE LAND TAXES ACRE LAND RENT* ACRE TOTAL FIXED COST TOTAL COST *1/3 CROP 1/3 FERTILIZER 1/3 CHEMICALS 1/3 CROP INSURANCE - LAND TAXES. ASSUMING 68-BUSHEL YIELD SELLING AT $3.75/BU. AVERAGE COST = $3.75/BU. 13

17 14 TABLE 13. SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE SPRING BARLEY FOLLOWING WINTER WHEAT IN THE RAINFALL AREA OF WHITMAN COUNTY. VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & MACH VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST $ $ $ $ $ $ $ $ PLOW (50%) 300HP-CHAL W/10BTM PLOW OCT CHISEL (50%) 300HP-CHAL W/23' CHISEL OCT HAUL WATER 2-TON TRUCK W/SLIP TANK MAR SPRAY WEEDS[1] 300HP-CHAL W/80' SPRAYER MAR CULTIVATE/HARROW 300HP-CHAL W/36'CULT&TINE HAR APR FERTILIZE[2] 300HP-CHAL W/36' RIPPER SHOOTR APR HAUL WATER 2-TON TRUCK W/SLIP TANK APR CULT/SPRY/HAR[3]300HP-CHAL W/CULT,TINE,SPRAYER APR HAUL SEED 2-TON TRUCK MAY SEED[4] 300HP-CHAL W/36' JD 455 DRILL MAY HAUL WATER 2-TON TRUCK W/SLIP TANK MAY SPRAY HERB[5] 300HP-CHAL W/80' SPRAYER MAY CROP INSURANCE FIRE AND HAIL INSURANCE MAY HARVEST 30' COMBINE AUG HAUL BARLEY 2-T0N TRUCK AUG HAUL BARLEY TANDEM AXLE TRUCK AUG MISC USE TANDEM AXLE TRUCK ANN MISC USE 2-TON TRUCK ANN MISC USE ATV ANN MISC USE 3/4-TON PICKUP ANN MISC USE 50HP-WT W/BUCKET ANN OVERHEAD UTILITIES, LEGAL, ACCT, ETC. ANN TAXES LAND TAXES ANN LAND COST NET LAND RENT ANN TOTAL PER ACRE SERVICES AND MATERIALS USED: [1] SPRAYER $1.75/ACRE. 3/4 QT. $9.00/QT. 6.4 LBS. $.145/OZ. AND 1.7 LBS. AMMONIA $.12/LB. [2] FERTILIZER AND $35/ACRE. [3] SPRAYER $1.75/ACRE QTS. $10.86/QT. [4] DRILL $7.50/ACRE. 85 LBS. OF BARLEY $.13/LB. [5] SPRAYER $1.75/ACRE. $6.25/ACRE.

18 TABLE 14. ITEMIZED COST PER ACRE FOR SPRING BARLEY FOLLOWING WINTER WHEAT IN THE RAINFALL AREA OF WHITMAN COUNTY. PRICE OR VALUE OR YOUR UNIT COST/UNIT QUANTITY COST FARM VARIABLE COSTS $ $ GLYPHOSPHATE QT AMMONIA SULFATE LB SURFACTANT OZ FARGO QT HERBICIDE ACRE BARLEY SEED LB 'JD 455 DRILL ACRE ' SPRAYER ACRE FERT & APPLICATOR ACRE CROP INSURANCE ACRE MACHINERY REPAIRS ACRE MACHINE FUEL/LUBE ACRE LABOR(TRAC/MACH) HOUR OVERHEAD ACRE INTEREST ON OP. CAP. ACRE TOTAL VARIABLE COST FIXED COSTS $ $ MACHINE DEPRECIATION ACRE MACHINE INTEREST ACRE MACHINE INSURANCE ACRE MACHINE TAXES ACRE MACHINE HOUSING ACRE LAND TAXES ACRE NET LAND RENT* ACRE TOTAL FIXED COST TOTAL COST *1/3 CROP 1/3 FERTILIZER 1/3 CHEMICALS 1/3 CROP INSURANCE - LAND TAXES. ASSUMING 2-TON YIELD SELLING AT $100/TON. AVERAGE COST = $106.61/TON. 15

19 16 TABLE 15. SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE FOR PEAS FOLLOWING WINTER WHEAT IN THE RAINFALL AREA OF WHITMAN COUNTY. VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & MACH VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST $ $ $ $ $ $ $ $ PLOW (50%) 300HP-CHAL W/10BTM PLOW OCT CHISEL (50%) 300HP-CHAL W/23' CHISEL OCT HAUL WATER 2-TON TRUCK W/SLIP TANK MAR SPRAY WEEDS[1] 300HP-CHAL W/80' SPRAYER MAR HAUL WATER 2-TON TRUCK W/SLIP TANK APR CULT/SPRY/HAR[2] 300HP-CHAL W/CULT,TINE,SPRAYER APR CULTIVATE/HARROW 300HP-CHAL W/36'CULT&TINE HAR APR CROP INSURANCE FIRE AND HAIL INSURANCE MAY HAUL SEED 2-TON TRUCK MAY SEED[3] 300HP-CHAL W/36' JD 455 DRILL MAY PACK 300HP-CHAL W/40' PACKER MAY SPRAY INSECT[4] CUSTOM AERIAL JUN SPRAY INSECT[5] CUSTOM AERIAL JUN HARVEST 24' COMBINE AUG HAUL PEAS 2-T0N TRUCK AUG HAUL PEAS TANDEM AXLE TRUCK AUG MISC USE ATV ANN MISC USE 3/4-TON PICKUP ANN MISC USE 50HP-WT W/BUCKET ANN MISC USE TANDEM AXLE TRUCK ANN MISC USE 2-TON TRUCK ANN OVERHEAD UTILITIES, LEGAL, ACCT, ETC. ANN TAXES LAND TAXES ANN LAND COST NET LAND RENT ANN TOTAL PER ACRE SERVICES AND MATERIALS USED: [1] SPRAYER $1.75/ACRE. 1 QT. $9.00/QT. 6.4 LBS /OZ., 1.7 LBS. AMMONIA $.12/LB. [2] SPRAYER $1.75/ACRE. $26/ACRE. [3] DRILL $7.50/ACRE. 200 LBS. OF PEA $.125/LB. [4] CUSTOM $5.00/ACRE. 1 LB. $7.55/LB. [5] CUSTOM $5.00/ACRE PINTS OF $5.37/PINT.

20 TABLE 16. ITEMIZED COST PER ACRE FOR PEAS FOLLOWING WINTER WHEAT IN THE RAINFALL AREA OF WHITMAN COUNTY. PRICE OR VALUE OR YOUR UNIT COST/UNIT QUANTITY COST FARM VARIABLE COSTS $ $ GLYPHOSPHATE QT SURFACTANT OZ AMMONIA SULFATE LB HERBICIDE ACRE ' SPRAYER ACRE PEA SEED LB 'JD 455 DRILL ACRE DIMETHOATE PINT IMIDAN LB CUSTOM AERIAL ACRE CROP INSURANCE ACRE MACHINERY REPAIRS ACRE MACHINE FUEL/LUBE ACRE LABOR(TRAC/MACH) HOUR OVERHEAD ACRE INTEREST ON OP. CAP. ACRE TOTAL VARIABLE COST FIXED COSTS $ $ MACHINE DEPRECIATION ACRE MACHINE INTEREST ACRE MACHINE INSURANCE ACRE MACHINE TAXES ACRE MACHINE HOUSING ACRE LAND TAXES ACRE NET LAND RENT* ACRE TOTAL FIXED COST TOTAL COST * 1/3 CROP 1/3 CHEMICAL 1/3 CROP INSURANCE LAND TAXES ASSUMING 2000-LB. YIELD SELLING AT A 11 /LB. AVERAGE COST = 12.1 /Lb. 17

21 TABLE 17. SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE FOR LENTILS FOLLOWING WINTER WHEAT IN THE RAINFALL AREA OF WHITMAN COUNTY. 18 VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & MACH VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST $ $ $ $ $ $ $ $ PLOW (50%) 300HP-CHAL W/10BTM PLOW OCT CHISEL (50%) 300HP-CHAL W/23' CHISEL OCT HAUL WATER 2-TON TRUCK W/SLIP TANK MAR SPRAY WEEDS[1] 300HP-CHAL W/80' SPRAYER MAR HAUL WATER 2-TON TRUCK W/SLIP TANK APR CULT/SPRY/HAR[2] 300HP-CHAL W/CULT,TINE,SPRAYER APR CULTIVATE/HARROW 300HP-CHAL W/36'CULT&TINE HAR APR CROP INSURANCE FIRE AND HAIL INSURANCE MAY HAUL SEED 2-TON TRUCK MAY SEED[3] 300HP-CHAL W/36' JD 455 DRILL MAY PACK 300HP-CHAL W/40' PACKER MAY SPRAY INSECT[4] CUSTOM AERIAL JUN SWATH LENTILS[5] CUSTOM SWATH AUG HARVEST 24' COMBINE AUG HAUL LENTILS 2-T0N TRUCK AUG HAUL LENTILS TANDEM AXLE TRUCK AUG MISC USE ATV ANN MISC USE 3/4-TON PICKUP ANN MISC USE 50HP-WT W/BUCKET ANN MISC USE TANDEM AXLE TRUCK ANN MISC USE 2-TON TRUCK ANN OVERHEAD UTILITIES, LEGAL, ACCT, ETC. ANN TAXES LAND TAXES ANN LAND COST NET LAND RENT ANN TOTAL PER ACRE SERVICES AND MATERIALS USED: [1] SPRAYER $1.75/ACRE. 1 QT. $9.00/QT. 6.4 LBS. $.145/OZ., 1.7 LBS. AMMONIA $.12/LB. [2] SPRAYER $1.75/ACRE. $26/ACRE. [3] DRILL $7.50/ACRE. 65 LBS. OF LENTIL $.27/LB. [4] CUSTOM $5.00/ACRE PINTS OF $5.37/PINT. [5] CUSTOM $15.00/ACRE.

22 TABLE 18. ITEMIZED COST PER ACRE FOR LENTILS FOLLOWING WINTER WHEAT IN THE RAINFALL AREA OF WHITMAN COUNTY. PRICE OR VALUE OR YOUR UNIT COST/UNIT QUANTITY COST FARM VARIABLE COSTS $ $ GLYPHOSPHATE QT HERBICIDE ACRE SURFACTANT OZ AMMONIA SULFATE LB ' SPRAYER ACRE LENTIL SEED LB 'JD 455 DRILL ACRE DIMETHOATE PINT CUSTOM AERIAL ACRE CROP INSURANCE ACRE CUSTOM SWATH ACRE MACHINERY REPAIRS ACRE MACHINE FUEL/LUBE ACRE LABOR(TRAC/MACH) HOUR OVERHEAD ACRE INTEREST ON OP. CAP. ACRE TOTAL VARIABLE COST FIXED COSTS $ $ MACHINE DEPRECIATION ACRE MACHINE INTEREST ACRE MACHINE INSURANCE ACRE MACHINE TAXES ACRE MACHINE HOUSING ACRE LAND TAXES ACRE NET LAND RENT* ACRE TOTAL FIXED COST TOTAL COST * 1/3 CROP 1/3 CHEMICALS 1/3 CROP INSURANCE LAND TAXES ASSUMING 1500-LB. YIELD SELLING AT 18.5 /LB. AVERAGE COST = 17.2 /Lb. 19

23 TABLE 19. Machinery Complement. Type of Machine Replacement Value $ Years of Life Annual Hours of Use Salvage Value $ Annual Repairs (Materials & Labor) $ 2-Ton Truck 20, ,000 1,000 Comments Tandem Axle Truck 35, ,500 2,000 3/4-Ton Pickup 22, ,500 1,500 4WD-ATV 5, , Mounted Sprayer for ATV HP-WT w/bucket 15, , HP Challenger 95, ,000 2,500 23' Chisel 17, , ' Cultivator w/tine Harrow 18, , ' Packer 9, , BTM Plow 22, ,000 1,800 Back Pack Sprayer Slip Tank (2000 gal) 1, Allocate at a yearly cost of approx. 25 /acre 9600 JD Combine 180, ,000 5,000 Repair cost increase 20% w/peas & lentil

24 21 TABLE 20. MACHINERY COST PER HOUR YEARS TOTAL FUEL TOTAL PURCHASE TO ANNUAL DEPREC- INTER- INSUR- FIXED AND VARIABLE TOTAL MACHINERY PRICE TRADE HOURS IATION EST ANCE TAXES HOUSING COST REPAIR LUBE COST COST $ COST PER HOUR TON TRUCK 20, TANDEM AXLE TRUCK 35, /4-TON PICKUP 22, WD-ATV 5, ATV SPRAYER HP-WT W/BUCKET 15, HP CHALLENGER 95, ' CHISEL 17, ' CULT W/HARROW 18, ' PACKER 9, BTM PLOW 22, BACK PACK SPRAYR GAL SLIP TANK 1, JD COMBINE 180, * * THIS REPAIR VALUE IS FOR WHEAT AND BARLEY. FOR PEAS AND LENTILS, REPAIRS INCREASE TO $30 PER ACRE.

25 Table 21. Input Prices Ammonia sulfate 12 /lb Glyphosphate Banvil Fargo Pursuit Surfactant Chiptox Harmony-Extra Buctril Discover Imidan Dimethoate Wheat seed Barley seed Pea seed Lentil seed Custom aerial Labor Land taxes $9.00/quart 70 /ounce $10.86/quart $4.09/ounce 14.5 /ounce $1.33/pint $14.20/ounce 54 /ounce $5.93/ounce $7.55/lb $5.37/pint 16.7 /pound 13 /pound 12.5 /pound 27 /pound $5.00/acre $14.00/hour $5.50/acre Crop insurance Winter Wheat $3.50/acre Spring Barley $2.50/acre Spring Wheat $2.50/acre Spring Peas $2.50/acre Spring Lentils $3.75/acre

26 Use pesticides with care. Apply them only to plants, animals, or sites listed on the label. When mixing and applying pesticides, follow all label precautions to protect yourself and others around you. It is violation of law to disregard label directions. If pesticides are spilled on skin or clothing, remove clothing and wash skin thoroughly. Store pesticides in their original containers and keep them out of the reach of children, pets, and livestock. Alternate formats of our educational materials are available upon request for persons with disabilities. Please contact the Information Department, College of Agriculture and Home Economics. Washington State University Cooperative Extension publications contain material written and produced for public distribution. You may reprint written material, provided you do not use it to endorse a commercial product. Please reference by title and credit Washington State University Cooperative Extension. Issued by Washington State University Cooperative Extension and the U.S. Department of Agriculture in furtherance of the Acts of May 8 and June 30, Cooperative Extension programs and policies are consistent with federal and state laws and regulations on nondiscrimination regarding race, sex, religion, age, color, creed, national or ethnic origin; physical, mental or sensory disability; marital status, sexual orientation, and status as a Vietnam-era or disabled veteran. Evidence of noncompliance may be reported through your local Cooperative Extension office. Online at: Published September Subject codes 220, 244, 321. X. EB1970E