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Guidelines: Crop Production Costs5Crop Production Standardized Operating Statement 2021 (Dollars Per Acre)PeasHybrid FallRyeWheat WinterBeans PintoWheat PrairieSpringFlaxseedSunflowerOilBeans WhiteSunflowerConfectionWheat OtherSpring 598.00 585.00 601.25 855.00 617.50 552.00 660.00 765.00 700.00 555.00 88.00 34.02 69.67 16.17 18.75 226.61 21.00 228.15 7.75 13.64 9.38 279.91 30.50 190.18 36.17 10.03 9.38 276.26 94.50 114.48 117.52 34.60 16.41 377.51 32.50 202.84 53.17 9.59 9.38 307.48 64.96 89.17 36.51 18.18 9.38 218.19 46.00 175.13 49.76 23.53 9.38 303.79 90.20 127.14 117.52 32.55 16.41 383.81 56.70 175.13 82.39 37.22 9.38 360.82 32.50 183.85 53.17 10.62 9.38 289.52 371.39 305.09 324.99 477.49 310.02 333.81 356.21 381.19 339.18 265.48 5.00 25.00 24.25 0.00 7.51 20.00 0.00 81.76 5.00 25.00 26.01 0.00 12.73 20.00 0.00 88.74 5.00 25.00 29.72 0.00 10.61 20.00 0.00 90.33 5.00 25.00 24.25 0.00 5.17 20.00 0.00 79.42 5.00 25.00 29.72 0.00 10.61 20.00 0.00 90.33 5.00 25.00 26.50 0.00 3.92 20.00 0.00 80.42 5.00 25.00 29.80 10.00 13.06 20.00 8.50 111.35 5.00 25.00 23.88 0.00 4.62 20.00 0.00 78.50 5.00 25.00 29.80 10.00 13.06 20.00 17.00 119.85 5.00 25.00 29.16 0.00 9.79 20.00 0.00 88.95 289.63 216.35 234.67 398.07 219.69 253.39 244.86 302.68 219.33 176.53 17.75 17.75 17.75 17.75 17.75 17.75 17.75 17.75 17.75 17.75 271.88 198.60 216.92 380.32 201.94 235.64 227.11 284.93 201.58 158.78 25.00 32.14 4.13 20.40 43.35 2.88 17.50 145.40 25.00 32.14 4.13 20.40 43.35 2.88 17.50 145.40 25.00 32.14 4.13 20.40 43.35 2.88 17.50 145.40 27.00 34.71 4.46 20.40 43.35 2.88 17.50 150.30 25.00 32.14 4.13 20.40 43.35 2.88 17.50 145.40 25.00 32.14 4.13 20.40 43.35 2.88 17.50 145.40 28.00 36.00 4.62 20.40 43.35 2.88 17.50 152.75 27.00 34.71 4.46 20.40 43.35 2.88 17.50 150.30 28.00 36.00 4.62 20.40 43.35 2.88 17.50 152.75 25.00 32.14 4.13 20.40 43.35 2.88 17.50 145.40 53.20 71.52 56.55 90.24 74.36 48.83 13.38 126.48 8.04 14.44 6.74 29.22 97.26 9.54 14.44 6.74 30.72 22.48 9.49 14.44 6.74 30.67 40.85 230.02 11.75 14.44 7.28 33.47 196.55 10.27 14.44 6.74 31.45 25.10 7.79 14.44 6.74 28.97 61.27 10.71 14.44 7.55 32.70 41.66 134.63 11.89 14.44 7.28 33.61 101.03 12.34 14.44 7.55 34.33 14.50Your Farm 9.79 14.44 6.74 30.97( 17.59)Manitoba Operating Income and Capital Costs ( /Acre) - 2022 400 350 per Acre 300 250 200 150 100 50 0Operating Income (EBITDAR)Cost of CapitalOperating Income ( 221 EBITDAR) BenchmarkManitoba Agriculture

Guidelines: Crop Production Costs6AgriInsurance Analysis*Based on 2022 MASC data*CanolaAgriInsurance80% Insured ValuePremium Cost (% of Insured)SoybeansOatsCornBarleyWheat NorthernHard RedPeas 5742.1% 4851.9% 3874.8% 5403.7% 7715.5% 3993.7% 4832.7% 4213.8% 0 0 51 0 0 87 0 0 86 0 0 0 0 0 28 0 0 144 0 0 114 0 0 ts Not Covered By AgriInsuranceOperating CostsOperating & Fixed CostsTotal CostsAgriInsurance Risk RatioOperating CostsTotal CostsWheat Hard RedSpring(AgriInsurance Coverage / Cost)126%92%Risk Ranking121%85%11914171012(Lower number indicates increasing risk)Risk & Sensitivity Analysis (Stress Test)Percent Crop Yield ChangePercent Market Price ChangePercent Fuel Cost Change(20%)(10%)0%Percent Fertilizer Cost ChangePercent Seed Cost ChangePercent Pesticide Cost ChangeCanolaWheat Hard RedSpringSoybeansOatsCorn(20%)35.2(10%) 16.20(20%)49.6(10%) 9.00(20%)28.8(10%) 13.50(20%)92.0(10%) 5.63Change in Profit (Loss) /acre( 222)( 174)( 151)Adjusted Net Profit (Loss) /acre( 55)3( 125)9( 84)5Percent Crop Yield ChangeYield (units/acre)Percent Market Price ChangePrice ( /unit)Adjusted Profitability RankingStress Test - Total Farm Debt ( /acre) 7620%0%0%ChangBarleyWheat NorthernHard RedPeas(20%)108.0(10%) 6.30(20%)60.8(10%) 6.53(20%)54.4(10%) 8.55(20%)36.8(10%) 11.70( 201)( 265)( 154)( 181)( 167)( 1)1( 119)8( 146)14( 131)11( 70)4(land debt of 510/acre machinery debt of 252/acre, farm equity (compared to baseline - Total Farm Debt ( /acre) 762land debt of 510/acre machinery debt of 252/acre, farm equity 80.8%)Rotation Economic AnalysisData Source – MASC Harvest Production Reports (2010-2015)Year 1Example Rotation #1Rotation Yield PremiumNet Profit (Loss)Year 2Year 3Year 4Year 5Wheat Hard RedSpring100% 48.45CanolaWheat Hard RedSpringCanolaWheat Hard RedSpring102%101%102%101%102%- 182.52 54.65 182.52 54.65 182.52 705CornCanolaWheat Hard turn100%112%101%101%103%Example Rotation #2Rotation Yield PremiumNet Profit (Loss) 145.97 261.72 54.65 72.43 174.32Year 6Canola112% 261.72Note: This budget is only a guide and is not intended as an in depth study of the cost of production of thisindustry. Interpretation and utilization of this information is the responsibility of the user.RotationTotalMarginalReturn- 971

Guidelines: Crop Production Costs7AgriInsurance AnalysisHybrid FallRyeWheat WinterBeans PintoWheat PrairieSpringFlaxseedSunflowerOilBeans WhiteSunflowerConfectionWheat OtherSpring 3463.9% 4582.2% 6545.3% 4642.1% 3754.8% 5634.2% 6235.2% 5317.0% 3662.9% 45 0 217 0 0 102 0 0 4 0 0 129 0 0 115 0 0 55 0 0 41 0 0 155 36 0 %105%77%91%64%57181615133Your Farm2Risk & Sensitivity Analysis (Stress Test)Change in Equipment Investment ( /Acre)e in Owned Acres (Purchase or Sale @ 3,400/acre)Hybrid FallRyeWheat WinterBeans PintoWheat PrairieSpring(20%)62.4(10%) 6.75(20%)52.0(10%) 8.33(20%)1520.0(10%) 0.41( 164)( 168)( 141)12( 128)10 00 0.00 increased equipment cost /acre 0.00 increased land cost /acreFlaxseedSunflowerOilBeans WhiteSunflowerConfectionWheat OtherSpring(20%)52.0(10%) 8.55(20%)19.2(10%) 20.70(20%)1600.0(10%) 0.30(20%)1360.0(10%) 0.41(20%)1600.0(10%) 0.32(20%)48.0(10%) 8.33( 239)( 173)( 155)( 185)( 214)( 196)( 155)( 43)2( 148)15( 93)6( 143)13( 113)7( 181)17( 173)16Your Farm80.8%)Rotation Economic AnalysisExample Rotation #3Rotation Yield PremiumNet Profit (Loss)Year 1Year 2Year 3Year 4Year 5Year 6Wheat Hard 100%102%101%100%103%119%- 48.45 182.52 207.63 67.03 174.32 147.50 827SoybeansWheat Hard RedSpringSoybeansWheat Hard RedSpringCanolaRotation TotalMarginal ReturnYour Farm RotationRotation Yield PremiumNet Profit (Loss)Rotation TotalMarginal Return100% 67.03108% 98.05Canola102% 182.52100% 67.03108% 98.05102% 182.52- 695Note: 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.

Guidelines: Crop Production Costs8MASC - 2021 Seeded AcresWheat - HardRed Spring,2,545,153Soybeans,1,249,977Oats, 643,901Canola, Wheat - Hard Red Spring andSoybeans total 76% of the 2021Seeded Acres and 78% of the 5 YearAverage Seeded AcresCorn, 383,647Barley, 407,767Canola,3,472,345Other, 761,509Wheat Northern HardRed, 119,850Manitoba AgricultureMASC - 2021 Other Crop Seeded AcresFlaxseed, 67,297Hybrid Fall Rye,100,065Beans - Pinto,86,179Wheat - PrairieSpring, 42,445Sunflower Oil,64,238SunflowerConfection,15,652Other Crops are 8% of the 2021Seeded AcresBeans - White,40,204Peas, 226,377Wheat - Winter,36,680Lentil, 1,070Black Bean,27,846Wheat - OtherSpring, 3,543Hempseed, 6,131Kidney Bean,9,454Canaryseed, 6,979 Fababean, 5,206Buckwheat, 4,416Manitoba AgricultureManitoba - 80% Insured Value AgriInsurance RiskAnalysis - 2022 900.00180%156% 800.00 Per Acre 700.00126%121%128% 600.00 500.0085%128%124%104%92%160%97%82%107%73% 400.00113%81%140%120%84%100%80% 300.0060% 200.0040% 100.0020% 0.00CanolaWheat - SoybeansHard RedSpring80% Insured ValueOatsCornBarley80% Coverage of Operating CostsWheat NorthernHard RedPeas0%80% Coverage of Total CostsManitoba AgricultureAnalysis of your AgriInsuranceCoverage of Operating and TotalCosts is an important step in RiskManagement Planning for your farm.

Guidelines: Crop Production Costs9Manitoba Risk & Reward Analysis - is of ROI (Reward) and theassociated AgriInsurance Coverageof Total Costs (Risk) is useful incomparing the profitability and costefficiency alongside the productioncost risk when evaluating crops toinclude in your rotation and is animportant step in Risk ManagementPlanning for your farm.80%26.7%Canola8.5%14.2%Wheat - SoybeansHard t NorthernHard RedPeasReturn on Investment (Reward)0%80% Coverage of Total Costs (Risk)Manitoba AgricultureManitoba Breakeven Yield Risk Ratio - 2022160%140%139%127%120%Analysis of your Breakeven Yieldscompared to Target (or average)Yields gives an indication of howclose to B/E ( 0 profit 100%) eachcrop in your rotation is if faced withpotential production or market pricechallenges and is an important step inRisk Management %CanolaWheat Hard RedSpringSoybeansOatsCornTarget Yield as % of B/E YieldBarleyWheat NorthernHard RedPeasManitoba AgricultureManitoba Net Profit Based on Seeding Date - 2022 400.00 300.00 200.00Seeding Date can have a significantimpact on crop yields and netprofitability. Analysis of seedingdates will highlight potential windowsof profitability to seed crops in yourrotation and is an important step inRisk Management Planning. 100.00 0.00- 100.00- 200.00- 300.004th weekApril1st weekMayCanola2nd weekMay3rd weekMayWheat - Hard Red Spring4th weekMay1st weekJuneSoybeans2nd weekJune3rd weekJuneOatsManitoba Agriculture

Guidelines: Crop Production Costs10Net Profit per Acre - Canola (44bu @ 18.00/bu) - 2022 20044 bu 167/ac 10035 bu Breakeven per acre 080% AgriInsurance (AI) has 70/acmore coverage compared to 70% AI fora 31 bu yield, 210/ac more coveragecompared to 50% AI for a 22 bu yield,and 349/ac more coverage comparedto no AI for a 13 bu yield.( 100)80% 35 bu 8/ac( 200)70% 31 bu - 71/ac( 300)50% 22 bu - 229/ac( 400)( 500)30% 13 bu - 388/ac100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30%Probable Yield80% AgriInsurance70% AgriInsurance50% AgriInsuranceNo AgriInsuranceManitoba AgricultureNet Profit per Acre - HRS Wheat (62bu @ 10.00/bu) - 2022 10062 bu 48/ac 5057.1 bu Breakeven 0( 50) per acre80% AgriInsurance (AI) has 59/acmore coverage compared to 70% AIfor a 43 bu yield, 177/ac morecoverage compared to 50% AI for a31 bu yield, and 295/ac morecoverage compared to no AI for a 19bu yield.( 100)( 150)80% 50 bu - 76/ac( 200)70% 43 bu - 138/ac( 250)( 300)( 350)50% 31 bu - 262/ac( 400)( 450)30% 19 bu - 386/ac100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30%Probable Yield80% AgriInsurance70% AgriInsurance50% AgriInsuranceNo AgriInsuranceManitoba AgricultureNet Profit per Acre - Soybean (36bu @ 15.00/bu) - 2022 100 5036 bu 67/ac31.5 bu Breakeven 0 per acre( 50)( 100)80% AgriInsurance (AI) has 47/acmore coverage compared to 70% AIfor a 25 bu yield, 141/ac morecoverage compared to 50% AI for a 18bu yield, and 235/ac more coveragecompared to no AI for a 11 bu yield.80% 29 bu - 41/ac( 150)( 200)70% 25 bu - 95/ac( 250)50% 18 bu - 203/ac( 300)( 350)30% 11 bu - 311/ac100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30%Probable Yield80% AgriInsurance70% AgriInsurance50% AgriInsuranceNo AgriInsuranceManitoba Agriculture

Guidelines: Crop Production CostsCROP PROFITABILITY IN EXTREME CONDITIONS - Crop Production Costs can help you balance several considerations.Producers face some tough crop selection decisions in the wake of a drought in 2021, higher than average grain prices and rising inputcosts. Questions like what crop will be the most profitable, which crop has the most downside risk, what crops fit best into a rotation andhow will cropping decisions in 2022 affect future cropping decisions on the farm are all top of mind this planning season. Additionalconcerns like potential herbicide carryover from a dry 2021 season, higher than average remaining fertility levels on land that grew wellbelow average crops, and changes in tillage practices to conserve moisture are all questions that need to considered in cropping choicesthat may not have been as important in previous years. Crops that were previously considered locks in the rotation are now beingquestioned, while the search for new crops to add to the rotation have taken on a new importance.Manitoba Agriculture and Resource Development’s Crop Production Costs is a great place to start for crop profitability and risk analysis.This guide provides an easy to use template to fully evaluate all costs with the ability to compare different crops. These comparisons takeon increased importance with all the changes in the past 12 months to crop yields, crop prices and input costs. Cropping selections are notmade in a vacuum, as there are many connected variables that go into picking the best crops to grow in 2022. Crop profitability is alwaystop of mind for producers in considering what crops to grow. Reasonably assessing yield, price and cost based on realistic scenarios isvery important.YIELDThe drought of 2021 and the corresponding low yields broke up a string of relatively stable yields from previous growing seasons. Look toAgriInsurance probable yields for your farm from Manitoba Agricultural Services Corporation (MASC). Consider your soil moisture levelsheading in to the 2022 growing season. Depending on the crop choice, dryer than average soil conditions should prompt a reduction inprojected yields used for planning purposes.PRICEWhile grain prices are high right now, there is variability and downside price risk in the commodity markets. Looking to new crop pricingrather than old crop pricing provides a better view into potential prices for the 2022 crop.COSTFinally consider the costs that go into growing a crop, one of the things that producers have some control over. Fertilizer prices are nearlydouble compared to prices last season. With some areas seeing severe drought reduced yields, accurately estimating remaining fertilitylevels with the current fertilizer prices will produce a great return on investment, so go soil test! Assessing crops that require less fertilizerto grow like soybeans, peas and flax will be worth the time spent. Seed costs are increasing due to the price of grain being high. Othercosts like fuel, labour, equipment and land always seem to take a steady march higher. It is very important this year to fully cost theseitems as there has been such a change in crop production costs for the upcoming year as compared to previous years.RISKSRisk with cropping decisions this year will be very important to identify. Creating some ‘what if’ scenarios will bring clarity to risks with cropchoices. With the effects of the 2021 drought in recent memory, what if crop yields are 40% lower than projected yields? Lower input cropssuch as oats and soybeans may see a smaller drop in profitability compared to higher input crops like canola and wheat. In extremeenvironmental situations though, rarely do all crops suffer the same yield loss as some perform better relative to others. In some regions in2021, soybeans suffered less of a yield loss compared to canola due to rainfall timing and how each type of plant handles extreme heat.Wheat also fared relatively better than other cereals in areas of drought as it was able to find and use more moisture than oats or barley.No one knows what the weather will be like for 2022, but if we enter winter dryer than average, determining what projections would looklike in another drought scenario would be the prudent management decision.ROTATIONConsidering the previous crop grown in determining a profitable crop rotation is important for success. Manitoba Agriculture and ResourceDevelopment and MASC have an informative table showing the yield response to a crop planted with a previous crop(https://www.masc.mb.ca/masc.nsf/mmpp crop rotations.html). For example, red spring wheat planted on oat stubble only provides a93% probable yield response compared to red spring wheat planted on soybean stubble providing a 108% probable yield response.Choosing crops that create a positive yield response can have large benefits to the farm, as each year’s gains have a positivecompounding effect over time. Farms that find themselves in this position will be much more resistant to the negative effects of extremeenvironmental conditions.The past few years have seen wheat, canola and soybeans make up nearly 80% of the crops grown in Manitoba. These crops havehistorically shown to be profitable and fit well into Manitoba’s growing conditions. However, growing only three crops can create riskcompared to growing a wider range of crops, essentially by not putting all of one’s eggs into one basket.On the other side, growing more crops in a rotation requires more production management knowledge and possibly a wider range ofequipment. Adding new crops to a rotation will initially create risk as there is a learning curve to growing a new crop, but over the long runrisk to the farm will be reduced as knowledge is gained in growing these crops.Calculating profitability based on realistic numbers, identifying downside risk with potential crops to be grown on the farm, andunderstanding the interconnectedness of rotation decisions will lead to long term success. Bringing in new crops into the rotation at asustainable pace and balancing the crops currently in the rotation will protect against future extreme environmental conditions. Failure toscrutinize these decisions on the farm under these conditions will put the farm at risk and limit the chances of success now and in thefuture.11

Guidelines: Crop Production Costs12Seed & TreatmentCropCanola* SoybeansWheat - Hard Red SpringWheat - Northern Hard RedWheat - Other SpringWheat - Prairie SpringWheat - WinterBarleyOatsCornPeasHybrid Fall RyeFlaxseedBeans - PintoBeans - WhiteSunflower OilSunflower ConfectionSeeding Rateper Acre5 lb1.43 units2.0 bu2.0 bu2.0 bu2.0 bu2.0 bu2.0 bu2.5 bu32,000 plants3 bu1.5 bu56 lb0.75 units1.10 units20,000 plants18,000 plantsPriceper Unit 13.50 67.90 16.25 16.25 16.25 16.25 15.25 14.00 14.00 0.0031 29.33 14.00 1.16 126.00 82.00 0.0023 b/unit/unit/plant/plantCostper Acre 67.50 97.10 32.50 32.50 32.50 32.50 30.50 28.00 35.00 99.20 88.00 21.00 64.96 94.50 90.20 46.00 56.70* If row cropping, change seeding rate to 1.3 units/acre which reduces seed cost by 10%FertilizerFertilizer TypeNitrogen: (urea) 46-0-0Nitrogen: (NH3) 82-0-0Nitrogen: (liquid) 28-0-0Phosphorus: 11-52-0Potash: 0-0-60Sulphur: 20.5-0-0-24MES S15: 13-33-0-15CropCanolaSoybeansWheat - Hard Red SpringWheat - Northern Hard RedWheat - Other SpringWheat - Prairie SpringWheat - WinterBarleyOatsCornPeasHybrid Fall RyeFlaxseedBeans - PintoBeans - WhiteSunflower OilSunflower ConfectionBulk Price /tonne 1,300 2,200 800 1,300 1,000 850 1,500Actual Nutrient /lb 1.282 1.217 1.296 0.863 0.756 0.512 t of Actual Pounds of Elements Applied Per AcreNitrogenPhosphorusPotashSulphurlbs /acrelbs /acrelbs /acrelbs /acre130 131.7940 45.360 0.0020 32.130 0.0040 45.3610 7.560 0.00110 122.9040 45.3610 7.565 8.03125 141.8940 45.3610 7.565 8.03110 122.9040 45.3610 7.565 8.03125 141.8940 45.3610 7.565 8.03115 129.2340 45.3610 7.565 8.0390 100.3030 34.0210 7.565 8.0375 75.8430 34.0210 7.5610 16.06135 131.3465 73.7125 18.9020 32.130 0.0030 34.020 0.000 0.00145 167.2040 45.3610 7.565 8.0350 55.1530 34.020 0.000 0.0070 80.4630 34.020 0.000 0.0080 93.1230 34.020 0.000 0.00100 118.4330 34.0230 22.680 0.00100 118.4330 34.0230 22.680 0.00Total /acre 209.28 52.92 183.85 202.84 183.85 202.84 190.18 149.91 133.49 256.08 34.02 228.15 89.17 114.48 127.14 175.13 175.13* The fertilizer recommendation will vary depending on the soil type, climate and crop rotation. It is recommended that soil test sampling and analysisbe conducted each year to produce a better baseline for fertility. It costs 1.00 to 2.00/acre for custom sampling and analysis.Nitrogen Rate Calculator* For more information

As a producer you are encouraged to calculate your own costs of production for various crops. On each farm, costs and . If you need help with a budget, contact a Farm Management Specialist. estimate the cash cost of producing field crops on their farm on an annual basis. CropPlan calculates marginal returns, breakeven yields, breakeven crop .