Item

Description

Notes

1

Total variable costs

Cost of land rental (if any), ploughing; purchase of maize and bean seeds, fertilizers, manure, herbicides, pesticides, fungicides; labour for applying fertilizers, weeding, spraying, harvesting, transportation of produce from the garden, drying, threshing and winnowing

2

Farm gate prices¹ for 50-kg bags DAP, Urea, and 2.5 ton of cow manure

DAP = Ug. Shs. 150,000 (US$41.09); Urea = Ug. Shs. 130,000 (US$35.52); manure = Ug. Shs. 200,000 (US$54.79) per 2.5-ton truck including transport

3

Average yield (kg·ha⁻¹)

As measured in the field for different treatments

4

Field price

Farm gate price of maize and beans per kg at time of harvest

5

Gross benefits

Adjusted yield × field price

6

Gross margins = Gross field benefits-total variable costs

Gross margins are not the same as net profit, because not all production costs are considered under the partial budget

7

$\left(\frac{\text{Benefit}}{\text{Cost}}\right)=\left(\frac{\text{Grossbenefits}}{\text{totalvarialecosts}}\right)$

A benefit to cost ratio equal to one (1), implies that for each 1 US$ invested in the total variable costs, farmers recover their 1 US$.