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Disk(s) under separate cover

October 1986 Circular 732




RICE BUDGET GENERATOR



Central Science
COMPUTER SERIES Library
JAN 30 1990
Francisco Rohrmann and Jose Alvarez University o Fi 1
University of Florida










UNIVERSITY OFLORIDA













101
F636c
73 2 ,wv Extenion Srvice / Institute of Food and Agricultural Senfc / Univerity of Florida / John T. Wote, Dean
guide
























RICE BUDGET GENERATOR


(C) 1986, IFAS, UF





Francisco Rohrmann and Jose Alvarez























FOOD AND RESOURCE ECONOMICS DEPARTMENT
INSTITUTE OF FOOD AND AGRICULTURAL SCIENCES
FLORIDA COOPERATIVE EXTENSION SERVICE
UNIVERSITY OF FLORIDA


UI.j~v.LRSjTY OF FLORIDA LI~i.&niii











ABSTRACT


This manual explains how to use the "Rice Budget Generator"
microcomputer program. With the input figures provided by the
user, the program estimates costs and returns associated with a
rice enterprise, including a ratoon crop. After completing the
analysis, input variables can be changed to determine their
effect on costs and returns. Although developed for Florida
producers, the program can be modified and used in other
producing areas.



Keywords: Rice, budget, costs, returns, microcomputer.















AUTHORS

Francisco Rohrmann and Jose Alvarez are former IBM Grant Director
and Area Economist, respectively, Food and Resource Economics
Department, IFAS, University of Florida, Everglades Research and
Education Center, Belle Glade, FL 33430.


IBM PC is a trademark of International Business Machines Corp.
Lotus 1-2-3 is a trademark of Lotus Development Corporation.















TABLE OF CONTENTS


INTRODUCTION . . . . . . . .



HARDWARE AND SOFTWARE REQUIREMENTS . .



GETTING STARTED. . . . . . . .



BUDGET DESCRIPTION . . . . . .



USING THE PROGRAM. . . . . . .

General Information . . . . .

Machinery and Equipment . . . .

Machinery Use and Rice Operations . .

Pre-Harvest Costs . . . . . .

Total Costs per Acre. . . . . .

Returns to Factors of Production for the

Sensitivity Analysis. . . . . .

Partial Budget for the Ratoon Crop. .

Total Returns to Factors of Production.



SAVING AND PRINTING THE WORKSHEET. . .



ORDERING INFORMATION . . . . . .


Page



. . . . . 5



. . . . . 6



. . . . . 6



. . . . . 7



. . . . . 9

. . . . . 9

10
. . . . . 10

S. . . . 12

. . . . . 13

. . . . . 14

Plant Crop . 15

. . . . . 16

. . . . . 17

. . . . . 18



. . . . . 18



. . . . . 19


REFERENCES . . . . . . . . . ... . .


. .











LIST OF TABLES


Table Page


1 Screen access menu . . . . . . . 20

2 General information section. . . . . . 20

3 Machinery and equipment section. . . . . . 21

4 Machinery use and operations . . . . . 22

5 Pre-harvest costs. . . . . . . . . 23

6 Total cost per acre for the expected yield . . . 24

7 Total cost per acre for a 5 cwt lower yield. . . 25

8 Total cost per acre for a 5 cwt higher yield . . 25

9 Returns to factors of production for the plant crop. 26

10 Sensitivity analysis . . . . . . . . 26

11 Partial budget for a ratoon crop . . . . . 27

12 Total returns to factors of production . . . . 28

13 Help menu. . . . . . . . . . . 28











RICE BUDGET GENERATOR

Francisco Rohrmann and Jose Alvarez

(C) 1986, IFAS, UF



INTRODUCTION

An enterprise budget is a systematic listing of income,

expenses, capital, labor and machinery requirements for a given

crop. Preparing enterprise budgets is a tedious and time

consuming task when they are developed with pencil and paper.

This manual presents a microcomputer program that generates rice

budgets. Although the use of a computer does not reduce the data

requirements, the calculations can be performed in a faster and

more accurate manner than when they are developed by hand.

Furthermore, they also provide fast answers to "what if"

questions.

The "Rice Budget Generator" presented in this manual was

developed for Florida producers. It analyzes first the plant

crop, then the ratoon crop and, finally, the two operations

combined. The numbers in the example run pertain to a 500-acre

rice operation that complements sugar cane production in south

Florida and were taken from Rohrmann and Alvarez (1984) for

demonstration purposes.

The budget can be used for smaller or larger operations by

entering the appropriate data. It is also relevant to rice

producers in other areas.











HARDWARE AND SOFTWARE REQUIREMENTS

The computerized "Rice Budget Generator" program consists of

this user's manual and a distribution disk. The distribution

disk is to be used in conjunction with Lotus 1-2-3. To use this

program, an IBM Personal Computer, or compatible, with a minimum

of 192 kilobytes of RAM is required. Version 1, 1A or 2 of Lotus

1-2-3 is also necessary. All versions require at least two disk

drives and versions 1A and 2 support a hard disk. If printed

reports are desired, a printer is also needed.

The user should become familiar with Lotus 1-2-3 before

using this program by working at least the first four lessons of

the 1-2-3 Tutorial Disk. Once the user has learned how to move the

cell pointer and enter words and numbers into the spreadsheet,

using this program should be relatively easy.


GETTING STARTED

Before running the program for the first time, the user

should make a back-up copy of the distribution disk and store it

in a safe location. The instructions for duplicating diskettes

can be found in the IBM user's manual.

Begin by placing the Lotus 1-2-3 disk in drive A and the

distribution disk in drive B. Turn the computer on and answer the

date and time prompts. Then press for the 1-2-3 Lotus

Access System and, finally, when requested, press any key to

continue.

The first screen displays the title and version of the

program. It also gives the user two options. The first one shows
6











the credit and disclaimer screens. Users are encouraged to select

this option when running the program for the first time. To read

this information, look at the number shown in the cell pointer.

If it is number 1, just press . If number 2 appears in the

cell pointer, type the number 1 (numeric entries do not require

special characters) and press twice. When number 1 is

selected, the credit screen is then displayed. To read the

information contained in the disclaimer screen, press

when the cell pointer is in cell G160. To run the program, press

in the G184 cell which will access the main menu.

The second option allows the user to skip the steps described

above when number 2 is selected from the title screen. This will

display the screen access menu to start running the program. The

Z command will allow the user to return to the screen access

menu to select another section and the A command will return

the program to the title screen. These two macros are mostly

used after an input section has been completed and the program is

in READY mode. If a mistake is made while trying to execute these

macros, some letters and numbers may appear inside the cell

pointer. When this happens, enter the desired number, press

twice, then press the macro, and press again.


BUDGET DESCRIPTION

The program presented in this manual has over 300 lines of

information, some of which are provided by the user and some of

which are calculated by the program. Obviously, it is too long to

be displayed at one time on a typical 24-line microcomputer
7











screen. The program was designed to be displayed in short,

logical sections.

If version 1A or 2 of Lotus 1-2-3 is used, the numbers to be

entered by the user are highlighted and the rest are calculated

by the program. Neither is highlighted in version 1. The numbers

within boxes in the tables presented at the end of this manual are

input figures provided by the user (unprotected cells), while the

rest are calculated by the program (protected cells). However,

all the cells that are filled with formulas are protected in all

versions, meaning that, if a number is typed by accident into one

of those cells, a beep will alert users to the fact that they

are trying to replace a protected formula. If the user has better

estimates than those calculated by the program, the appropriate

changes should be made. First, move the cell pointer to the cell

to be changed; then unprotect the cell (/Range Unprotect )

and type the new estimate. Be sure to have a back-up copy of this

program because the formula will be erased after the new estimate

has been entered. An alternative way to change a figure calculated

by the program is to modify the existing formula or enter a

new one. In that case, press the {F2} EDIT key and make the needed

adjustments.

The program provides a table of contents called the Screen

Access Menu, which lists the major sections of the program (Table

1). This screen is displayed whenever the Z keys are pressed

after the distribution disk has been booted by the system. The

procedure to select a number was explained in the "Getting

Started" section of this manual. Before moving to another section,
8












it is highly recommended that the user go back to the Screen

Access Menu after one section of the program is completed.

Some sections listed in the Screen Access Menu occupy one

screen, while others occupy more than one screen. Sections 1, 2,

5, 6, 7, 8, 9, 11 and 12 occupy only one screen. Sections 3 and

4 include the original screens plus one more one page down

{PgDn}. Section 10 occupies the original screen plus two more

below that one {PgDn}.



USING THE PROGRAM

General Information

By selecting number 1 from the Screen Access Menu, the

program takes the user to the General Information section (Table

2). The cell pointer will be located in the "Farm name" row. The

user needs to identify the farm's name or section of the farm

where rice is to be grown. It is important, when necessary, to

differentiate between technological packages between farms or

sections of one farm so the producer can select the most

profitable one.

Moving the cell pointer down two times allows the user to

enter the number of net acres of rice to be planted. Going down

this column the next entries are yield (dry cwt/acre) and expected

price ($/cwt of dry rice). These first three figures will allow

the program to calculate costs and returns on a total, per acre

and per hundredweight basis.

The interest rates for operating and machinery loans must be

entered as decimals, and the program will display them as
9











percentage figures. In the example run, 0.13 was entered and the

program showed 13% on the screen, although 0.13 was used in the

calculations.

The operator's wage rate must be entered in dollars per

hour. The wage rate must include fringe benefits also. The

working hours per day for labor and machinery should reflect a

typical work schedule. In the example run, labor was assumed to

work 10 hours per day and machinery just nine hours. These

entries should be estimated carefully since they will determine

labor and machinery efficiencies, costs and the profitability of

the operation.

Fuel cost must represent the average price paid per gallon of

fuel.

The last five entries are related to post-harvest operations.

Hauling to the dryer must be expressed in terms of cost per cwt

of wet rice per mile. The average distance from the field to the

dryer and the drying cost in dollars per cwt must also be

entered. The percentage figures represent the moisture content

of the grain at harvest time and after the grain has been dried.

These are also entered as decimals and are shown on the screen

as percentages.



Machinery and Equipment

This section is reached when number 2 is selected from the

Screen Access Menu (Table 3). The cell pointer will be located in

the "Tractor 1" row under the "New Cost" column. The purchase

price of machinery and equipment used in the rice operation must
10











be entered. If a producer uses more than one item, the figure

must include the total cost of all items.

After completing the "New Cost" column, move the cell

pointer to the beginning of the next column to enter the fuel

consumption in gallons per hour of the power machinery. Then move

the cell pointer to the next column to enter the total number of

hours the item is used in one year. These entries should reflect

total use since the program estimates the time used in the rice

enterprise.

The last three columns are calculated by the program. Fixed

costs include depreciation, interest, repairs, taxes and

insurance. The straight-line depreciation method is used, assuming

a useful life of 10 years and a salvage value of 10% of the

purchase price. The formula is the initial investment minus the

salvage value divided by the useful life of the item. Interest

charges are calculated as the average value (new cost plus

salvage value divided by two) of the item multiplied by the

interest rate for machinery loans, and divided by two to account

for a sixth-month operation. Repairs are estimated at 3% of the

initial investment. Taxes and insurance are estimated at 1% of

the purchase cost.

Machinery fixed cost per acre is a prorated figure, which

relates the annual fixed cost per hour (which is simply the

annual fixed cost divided by the machinery or equipment's annual

use) to the total number of hours per acre a particular item is

employed in rice production. The prorating is the result of

assuming that some machinery and equipment are also used in

11











other enterprises, as is the case with sugar cane in Florida.

However, there are three items that are specifically for rice or

grain production: the self-propelled combine, the grain drill and

the hopper trailer. Therefore, the corresponding figures are not

prorated by their hourly use per acre, but total fixed cost is

simply divided by the number of acres of rice planted.

The variable cost per hour is the dollar amount of fuel

directly consumed by the machine plus one dollar per hour for

maintenance for the power equipment. For this reason, non-power

equipment does not show variable costs per hour. Non-power

equipment's share of maintenance is taken into account as fixed

cost repairs.

If the user has better estimates, they can be changed. The

procedure for doing this, and the repercussions, were explained in

the "Budget Description" section of this manual.


Machinery Use and Rice Operations

This section is displayed after selecting number 3 from the

Screen Access Menu (Table 4). As stated above, this section

occupies two screens. Thus, the {PgDn) key must be pressed after

finishing with the first screen.

The list of machinery and equipment is identical to the one

displayed in the former section. Rice operations were divided

into land breaking, land disking, land leveling, planting,

rolling, building levees, and destroying levees. The user is

given enough freedom to customize the program by adding or

deleting operations to reflect different technologies. This
12











section should include only the operations that require machinery

and equipment owned by the producer, except harvesting, hauling to

dryer and drying. Custom-hired operations should be included in

the pre-harvest and total costs sections.

The entries in this section include the number of times a

particular operation is done, the piece of machinery and/or

equipment used, and their efficiency in terms of acres per day.

In the example run, the producer knows that with a 140HP tractor

and a disk offset, 40 acres of "Land Breaking" can be done in a

typical working day and the operation will be performed twice.

After completing the first column, the user must move to the

"Land Disking" column and enter the corresponding figures. Once

the six columns of this screen have been completed, pressing the

{PgDn} key will allow the user to enter the figures for the last

two columns of this section.



Pre-Harvest Costs

Pressing number 4 from the Screen Access Menu takes the

user to this section (Table 5). This section occupies two

screens; the first screen accounts for the pre-harvest variable

costs, while the second one displays the pre-harvest fixed costs

and a summary of all pre-harvest costs.

The user needs to enter the units of reference in the first

column (lb, acre, ton, etc.), the quantity of units employed per

acre, the times over, and the price or cost per unit. The

Miscellaneous percentage is an estimate of other expenses such as

pick-up use, phone calls, office supplies, etc., in relation to
13











pre-harvest variable costs. Notice that labor, machinery and

equipment, and interest do not need to be entered. The last two

columns are also calculated by the program.

One page down shows the rest of the information. Fixed costs

are divided into machinery and equipment, land, and the irrigation

system. The example run pertains to a Florida operation where

the land and the irrigation system fixed costs are charged to the

sugar cane operation.

A summary of pre-harvest total variable and fixed costs is

presented at the end of this section. It may be important to

compare the relative importance of these two costs. The total

pre-harvest costs are considered as growing costs in the total

costs sections.



Total Costs per Acre

The total costs per acre are contained in three different

sections. The first one, which takes into account the expected

yield, can be reached by selecting number 5 from the Screen

Access Menu (Table 6). The remaining two sections, which

consider 5 cwt lower and higher than the expected yield, can be

reached by entering numbers 6 and 7, respectively (Tables 7 and

8).

The only entry needed in these three sections is the number

of acres that can be harvested in one hour. In other words, the

self-propelled combine efficiency should be adjusted to the

yield. In the example run, the combine was expected to harvest 3

acres per hour of use when the yield was 40 cwt (Table 6), while
14











the efficiency increased with a lower yield and vice versa (Tables

7 and 8).

Total costs are divided into growing, harvesting, hauling to

dryer and drying. The growing costs are the pre-harvest costs

calculated in the previous section. Harvesting costs are the

result of multiplying the number of hours per acre the combine is

used by the variable cost per hour of the combine and by the

operator's wage rate per hour. Hauling and drying costs vary

directly with the amount of rice harvested and its moisture

content at harvest. Since the amount of rice to be hauled from

the field to the dryer is expressed on a wet basis and other

figures are on a dry basis, a conversion factor is used to

convert from the "% moisture at harvest" to the "% moisture

desired" entered at the beginning of the program.

At the bottom of these three screens, a breakeven price is

calculated. This is the price required to cover total costs given

the corresponding yield.



Returns to Factors of Production for the Plant Crop

By selecting number 8 from the Screen Access Menu, the user

is taken to this section (Table 9). An alternative way to reach

this section is by pressing the R command, which will make

the program recalculate the entire worksheet. If the user

prefers to work from the Screen Access Menu, the F9 key must be

pressed to see the new results.

This section is designed to test the economic profitability

of the rice operation. Results are provided in absolute terms as
15











well as in relative terms for the purpose of illustrating the

magnitude of potential changes. If figures are changed in the

previous sections, the user can display this section to see their

effect.

For the example farm, the results show that returns to

management and risk are $35,300 for the plant crop operation,

which translates to $70.60 per acre and $1.77 per cwt of rice

produced. It also shows that for each dollar of revenue

generated, approximately $0.65 is paid to the variable inputs

and $0.17 to fixed costs, leaving a residual of $0.18 to the

producer. In other words, net returns represent 17.65% of total

revenues.

The Returns to Factors of Production section takes into

account only the production of the plant crop. A ratoon crop

analysis is conducted in section 10.


Sensitivity Analysis

This section is reached when number 9 is selected from the

Screen Access Menu or when the S command is pressed from

other sections of the worksheet (Table 10). Its main purpose is

to take risk and uncertainty into account. The analysis allows

the user to assess the effect of yield and price fluctuations on

net returns and on the financial position of the operation.

No entries are needed in this section. The variation is set

at $2 per cwt and 5 cwt above and below the expected price and

yield, respectively.











Partial Budget for the Ratoon Crop

The purpose of this section is to evaluate the economic

feasibility of growing and harvesting a ratoon crop from the same

planting. This practice is being conducted in several areas of

the world, including Florida.

The program displays this section when number 10 is selected

from the Screen Access Menu or when the B command is used

from other sections of the worksheet. The information is

contained on the original screen plus two more pages down (Table

11).

The information required appears within boxes in Table 11. It

includes the cultural practices required to obtain a ratoon crop.

Harvesting, hauling and drying are estimated in the same way as

in the total cost sections. If this practice is not feasible,

zeros should be entered in all cells contained in this section.

The decreased revenue category should account for losses in

net revenues from other crops caused by the ratooning of the rice

crop. This figure is sometimes difficult to estimate and could be

zero, as in the example run. However, there may be cases where

this is a real possibility. For example, a producer might grow

vegetables instead of a rice ratoon crop. In this case, the

revenue foregone should be entered in the "Decreased Revenue"

row.

If there are some additional positive effects as a result of

ratooning the rice, these should be entered in the "Additional

Revenue" section, which also contains figures for the rice

harvested. The expected price and other decreased costs, if any,
17











should also be entered. The decreased fixed costs reflect the

spreading of these costs for the machinery used in the ratoon

crop. No data are necessary in the final page, which shows a

breakeven analysis.


Total Returns to Factors of Production

This section summarizes the economic returns for the plant

and ratoon crops and is reached when number 11 is selected from

the Screen Access Menu (Table 12). The interpretation of this

section is identical to the one described under "Returns to

Factors of Production for the Plant Crop."

In the example run, a ratoon crop improves significantly the

profitability of the rice enterprise. While net returns represent

17.65% of total plant crop revenues, they increase to 31.7% when

a ratoon crop is grown. The 14.05% positive difference translates

into an extra $1.35 per cwt of rice produced.


SAVING AND PRINTING THE WORKSHEET

To save the worksheet, the user should press the usual 1-2-3

command (/File Save) and the name AUTO123 of the distribution

disk will be displayed on the screen. The user can replace the

old file with the same name or cancel the command. If the user

has any questions, the Lotus 1-2-3 manual should be consulted.

To print the corresponding reports, press P and a menu

will appear on the top of the screen. Then press the arrow key to

move the cell pointer to the section of the menu selected to be

printed and press . To print the entire worksheet, type
18











the letter E after the menu is displayed or move the cell pointer

to the word "Entire" and press . If the printer is on, it

will start printing the results of the analysis. If the printer

is off, the machine will beep and a printer error message will be

displayed on the bottom of the screen. Pressing the or the

keys will clear the upper section of the screen.

If the user wants to interrupt printing, the

keys must be pressed. The print command is also canceled before

printing starts by pressing the same keys.



ORDERING INFORMATION

For more information on this and other IFAS software,

contact the local county extension office or write to this

address:

IFAS Software Communication and Distribution
G022 McCarty Hall
University of Florida
Gainesville, FL 32611


REFERENCES

Rohrmann, Francisco and Jose Alvarez. "Costs and Returns for
Rice Production on Muck Soils in Florida, 1984," Economic
Information Report No. 202, Food and Resource Economics
Department, Institute of Food and Agricultural Sciences,
University of Florida, November 1984, pp. 21.









Table 1. Screen access menu.


RICE BUDGET GENERATOR

Screen Access Menu
SECTION #

GENERAL INFORMATION 1
MACHINE AND EQUIPMENT 2
MACHINERY USE AND OPERATIONS 3
PRE-HARVEST COSTS 4
TOTAL COSTS (with varying yields)
a) Expected 5
b) Lower 6
c) Higher 7
RETURNS TO FACTORS OF PRODUCTION 8
SENSITIVITY ANALYSIS 9
PARTIAL BUDGET FOR RATOON CROP 10
TOTAL RETURNS TO FACTORS OF PRODUCTION 11
HELP MENU 12

Enter the number corresponding to the section you want to reach:=======


Table 2. General information section.


General information:
Farm name:

Number of acres
Exptd. Dry Yield (cwt/
Expected Price ($/cwt)
Int.rate Oper. loans (
Int.rate Mach. loans (
Operator's wage ($/hr)
Labor use (hrs/day)
Machinery use (hrs/day
Fuel cost ($/gallon)

Haul. dryer ($/cwt/mil
Distance to dryer(mile
Moisture at harvest (%
Moisture desired (%)
Drying cost ($/cwt)


Everglades Rice, Inc.

500
A) 40
10
%) 13.00%
%) 13.00%
5.50
10
) 9
1.00

e) 0.05
s) 10
) 21.00%
12.50%
1.40











Table 3. Machinery and equipment section.


MACHINERY AND EQUIPMENT


ITEM

Tractor 1, 185 HP
Tractor 2, 140 HP
Tractor 3, 120 HP
Disk offset, 9'
Disk offset, 11'
Disk harrow, 21'
Laser plane
Roller, 10'
Grain drill, 10'
Hopper trailer
SP combine, 16'
Bulldozer
Levee disc


New Cost

60,000
45,000
35,000
4,000
5,000
9,000
30,000
1,530
2,880
7,200
73,500
39,600
10,000


Fuel Annual
gal/hr. Use (Hrs)

8.0 2000
4.5 1500
3.8 1500
500
500
500
1500
150
150
300
4.5 300
5.1 600
40


--Fixed cost--


Annual

12,090
9,068
7,053
806
1,008
1,814
6,045
308
580
1,451
14,810
7,979
2,015


65,026


$/A

13.03
4.76
3.48
0.73
1.04
1.09
7.25
0.69
1.16
2.90
29.62
0.75
2.83


Variable
Cost/Hr

9.00
5.50
4.80
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5.50
6.10
0.00


TOTAL 322,710 69.33


69.33


TOTAL 322,710










Table 4. Machinery use and operations.


MACHINERY USE


Times Over

Tractor 1, 185 HP
Tractor 2, 140 HP
Tractor 3, 120 HP
Disk offset, 9'
Disk offset, 11'
Disk harrow, 21'
Laser plane
Roller, 10'
Grain drill, 10'
Hopper trailer
SP combine, 16'
Bulldozer
Levee disc


MACHINERY USE


Times Over

Tractor 1, 185 HP
Tractor 2, 140 HP
Tractor 3, 120 HP
Disk offset, 9'
Disk offset, 11'
Disk harrow, 21'
Laser plane
Roller, 10'
Grain drill, 10'
Hopper trailer
SP combine, 16'
Bulldozer
Levee disc


Land Land Land Land Plant- Roll-
Breaking Disking Level Disking ing ing

2 2 1 2 1 3|
--------------Acres/Day-------------------
0 0 5 60 0 0
40 0 0 0 0 80
0 35 0 0 40 0
40 0 0 0 0 0
0 35 0 0 0 0
0 0 0 60 0 0
0 0 5 0 0 0
0 0 0 0 0 80
0 0 0 0 40 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 0 0


Build
Levees


Destruc.
Levees Other


1 1 0
---------Acres/Day----------------------
160 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0

0 160 0
160 0 0











Table 5. Pre-harvest costs.


PRE-HARVEST COSTS

I. VARIABLE COSTS
Seed
Fertilizer
Herbicide
Fungicide
Insecticide
Surveying
Aircraft
Labor
Mach. & Equip.
Irrigation
Miscellaneous
Interest


Unit Quantity
---- --------


I


Times
Over


Price


lb. 100 1 0.22
ton 0.05 1 240.00
gal. 0.5 2 9.75
lb. 1 2 8.25
gal 0.125 2 10.56
Acre 1 0 0.00
Acre 1 5 3.00
Hours 4.217 1 5.50
Hours


Acre-inch
%


32 1 0.50
10.00% 1
13.00% 1


TOTAL VARIABLE COSTS


Cost/Acre

22.00
12.00
9.75
16.50
2.64
0.00
15.00
23.19
27.63
16.00
14.47
10.35

169.53


Percent

12.98%
7.08%
5.75%
9.73%
1.56%
0.00%
8.85%
13.68%
16.30%
9.44%
8.54%
6.10%

100.00%


PRE-HARVEST COSTS

II.FIXED COSTS
Mach & Equip
Land
Irrigation syst
Other

TOTAL FIXED COSTS


Times
UNIT Quantity Over Price
---- -------- ----- -----
From Machinery & Equipment Section
acre 1 0.00


:em


= =---------


Cost/Acre

69.33
0.00
0.00
0.00

69.33


Percent

100.00%
0.00%
0.00%
0.00%

100.00%


III.PRE-HARVEST TOTAL COST SUMMARY


VARIABLE COSTS
FIXED COSTS


PRE-HARVEST TOTAL COST


=----------


169.53
69.33

238.87


70.97%
29.03%

100.00%


=======================>


<
)
**










Table 6. Total costs per acre for the expected yield.


ASSUMING:
Expected Yield (Cwt./Acre)


TOTAL COST PER ACRE

40 <----


Activity

GROWING
HARVESTING
HAULING TO DRYER
DRYING


# acres # Hrs. Unit

From above acre
M3r 1 Hr.
Custom Hired cwt.
Custom Hired cwt.


Quantity Cost/Unit

1.000 238.87
0.333
1.000 0.50
1.000 1.40


TOTAL COST -------------------------------------------->


BREAKEVEN PRICE ============>


Cost/A

238.87
3.67
22.86
64.01


329.40


$8.23 <=-=-==










Table 7. Total cost per acre for a 5cwt lower yield.


ASSUMING:
Expected Yield (Cwt./Acre)


TOTAL COST PER ACRE
35 <*****************
35 <----


Activity

GROWING
HARVESTING
HAULING TO DRYER
DRYING


# acres # Hrs.

From above

Custom Hired
Custom Hired


Unit

acre
Hr.
cwt.
cwt.


Quantity Cost/Unit

1.000 238.87
0.303
1.000 0.50
1.000 1.40


TOTAL COST -------------------------------------------- >


BREAKEVEN PRICE ==========-=>


$9.09 <========


Table 8. Total cost per acre for a 5 cwt higher yield.


ASSUMING:
Expected Yield (Cwt./Acre)


TOTAL COST PER ACRE

45 <----


Activity

GROWING
HARVESTING
HAULING TO DRYER
DRYING


# acres

From above
Custom Hire
Custom Hire
Custom Hire


# Hrs. Unit Quantity Cost/Unit

acre 1.000 238.87


1 Hr.
cwt.
cwt.


0.370
1.000
1.000


0.50
1.40


TOTAL COST --------------------------------------------->


BREAKEVEN PRICE =====-========>


Cost/A

238.87
3.33
20.00
56.01


318.21


Cost/A

238.87
4.07
25.72
72.01


340.67'


d
d


$7.57 <======









Table 9. Returns to factors of production for the plant crop.


RETURNS TO FACTORS OF PRODUCTION FOR THE PLANT CROP

TOTAL $ $/acre $/cwt


Total Revenue

Variable Costs


Return to Fixed Costs '

Fixed Costs (except Land charge)

Return to land, management and risk


Land Charge


Return to management and risk


200,000 400.00

130,034 260.07

69,966 139.93


34,666

35,300


69.33

70.60


0 0.00


35,300


70.60


10.00 100.00%


6.50

3.50

1.73

1.77

0.00

1.77


65.02%

34.98%

17.33%

17.65%

0.00%

17.65%


Table 10. Sensitivity analysis.


Price
-$/cwt. -
8.00
9.00
10.00
11.00
12.00

8.00
9.00
10.00
11.00
12.00

8.00
9.00
10.00
11.00
12.00


SENSITIVITY ANALYSIS
Revenue/Acre Total Costs/Acre Net Revenue/Acre
------------------Dollars-------------------------
280.00 318.21 -49.40
315.00 318.21 -14.40
350.00 318.21 20.60
385.00 318.21 55.60
420.00 318.21 90.60


320.00
360.00
400.00
440.00
480.00

360.00
405.00
450.00
495.00
540.00


329.40
329.40
329.40
329.40
329.40

340.67
340.67
340.67
340.67
340.67


-9.40
30.60
70.60
110.60
150.60

19.33
64.33
109.33
154.33
199.33


Yield
-Cwt.-
35
35
35
35
35

40
40
40
40
40

45
45
45
45
45









Table 11. Partial budget for .a ratoon crop.


INCREASED COSTS


Fungicide
Insecticide
Aircraft
Labor
Irrigation
Miscellaneous
Interest
Harvesting
Hauling to dryer
Drying


PARTIAL BUDGET FOR RATOON RICE
Times
UNIT Quantity Over P


rice


lbs 0 0 0.00
pt. 1.5 1 1.32
acre 1 1 3.00
Hrs. 1 1 5.00
acre-inch 10 1 1.00
% 10.00% 1
% 13.00%
cwt. 20 1 0.40


cwt.
cwt.


TOTAL
DECREASED REVENUE
None


1 0


TOTAL ADDED COSTS (A)

CONT. PARTIAL BUDGET FOR RATOON RICE


0.50
1 1.40


$/Acre

0.00
1.98
3.00
5.00
10.00
2.00
0.71
8.00
10.85
32.00

$73.55


0 0.00 $0.00


$73.55


ADDITIONAL REVENUE


Additional Rice


UNIT Quantity

cwt. 20


DECREASED COST

Other
Fixed costs (Mach & Equip)

TOTAL ADDED INCOME (B)

NET DIFFERENCE (B-A)


BREAKEVEN ANALYSIS FOR THE RATOON CROP:
*************************************


A) Minimum Yield required to cover all costs ====>


B) Minimum Price required to cover all costs ====>


6.03 cwt/acre


$2.86 per cwt.


Times
Over

1


Price

9.50f


$/Acre

190.00


0.00
16.26


$206.26

$132.71


tl "


i









Table 12. Total returns to factors of production.


TOTAL RETURNS TO FACTORS OF

TOTAL $

Total Revenue 295,000

Variable Costs 166,807

Return to Fixed Costs 128,193

Fixed Costs (except Land charge) 34,666

Return to land, management and risk 93,527

Land Charge 0

Return to management and risk 93,527


PRODUCTION

$/acre $/cwt

590.00 9.83

333.61 5.56

256.39 4.27

69.33 1.16

187.05 3.12

0.00 0.00

187.05 3.12


Table 13. Help menu.


HELP MENU
A -----> Returns the user to the title screen when in READY mode.

B -----> Reaches the partial budget section for the evaluation of
the ratoon crop.

C -----> Reaches the pre-harvest cost section, variable and fixed
costs sections, and the sensitivity analysis related to
total costs.

H -----> Help menu.

P -----> Prints different sections of the worksheet.

R -----> Reaches the returns to factors of production section.

S -----> Reaches the sensitivity analysis section, which shows a
series of outcomes given different yields and prices.

Z -----> Reaches the Screen Access Menu when in READY mode.


%

100.00%

56.54%

43.46%

11.75%

31.70%

0.00%

31.70%































































This publication was produced at a cost of $243.08, or 2.29 cents per copy, to explain how to use the "Rice Budget
Generator" microcomputer program. 10-106-86


COOPERATIVE EXTENSION SERVICE. UNIVERSITY OF FLORIDA, INSTITUTE OF FOOD AND AGRICULTURAL SCIENCES. K.R. 1Wdrtiler,
director, in cooperation with the United States Department of Agriculture, publishes this Information to further the purpose of the May 8 and
June 30,1914 Acts of Congress; and is authorized to provide research, educational Information and other services only to individuals and lnsitu-
tions that function without regard to race, color, sa or national origin. Single copies of Extension publications (excluding 4-H and Youth publica-
tions) are available free to Florida residents from County Extension Offices. Information on bulk rates or copies for out-of-sta purchasers s
available from C.M. Hinton, Publications Distribution Center, IAS Building 664, University of Florida, Gainesville, Florida 32611. Before publicizing this publication,
editors should contact this address to determine availability.