MAY 1992
ONEIDA-MOHAWK
REGION
1991
It-·
_
1951
Eddy L. laDue
Mark E. Anibal
Jacqueline M. Mierek
Department of Agricultural Economics
New York State College of Agriculture and Life Sciences
A Statutory College of the State University
Cornell University, Ithaca, New York 14853·7801
It is the policy of Cornell University actively to support equality
of educational and employment opportunity. No person shall be
denied admission to any educational program or activity or be
denied employment on the basis of any legally prohibited dis­
crimination involving, but not limited to, such factors as race,
color, creed, religion, national or ethnic origin, sex, age or
handicap. The University is committed to the maintenance of
affirmative action programs which will assure the continuation
of such equality of opportunity.
, ,
1991 DAIRY FARK BUSINESS SUHKARY
ONEIDA-MOHAWK REGION
Table of Contents
Page
.
1
Program Objectives
.
1
Format Features
.
1
.
2
Business Characteristics
.
2
Income Statement
.
2
Profitability Analysis
.
4
Farm and Family Financial Status
.
7
Cash Flow Statement
.
10
Repayment Analysis
.
11
Cropping Analysis
.
13
Dairy Analysis
.
15
INTRODUCTION
SUMMARY AND ANALYSIS OF THE FARM BUSINESS
Capital and Labor Efficiency Analysis
17
COMPARATIVE ANALYSIS OF THE FARM BUSINESS
18
Progress of the Farm Business
.
Regional Farm Business Chart
18
19
New York State Farm Business Chart
.
20
Financial Analysis Chart
.
22
Comparisons by Type of Barn and Herd Size
.
23
Herd Size Comparisons
.
23
IDENTIFY AND SET GOALS
.
29
GLOSSARY AND LOCATION OF COMMON TERMS
.
31
INDEX
.
34
•
1991 DAIRY FARK BUSINESS SUMMARY
ONEIDA-MOHAWK REGION*
INTRODUCTION
Dairy farmers throughout New York State have been participating in
Cornell Cooperative Extension's farm business summary and analysis program
since the early 1950's. Managers of each participating farm business
receive a comprehensive summary and analysis of the farm business. The
information in this report represents an average of the data submitted from
dairy farms in the Oneida-Mohawk region for 1991.
Program Ob1ective
The primary objective of the dairy farm business summary, DFBS, is to
help farm managers improve the business and financial management of their
business through appropriate use of historical farm data and the
application of modern farm business analysis techniques. In short, DFBS
identifies business and financial information farmers need and demonstrates
how it should be used in identifying and evaluating strengths and
weaknesses of the farm business.
Format Features
This regional report follows the same general format as in the 1991
DFBS printout received by all participating dairy farmers. The analysis
tables have an open column or section labeled My Farm. It may be used by
any dairy farm manager who wants to compare his or her business with the
average data of this region. A DFBS Data Check-in Form can be used by non­
DFBS participants to summarize their businesses.
This report features:
(1) an income statement including accrual adjustments for farm business
expenses and receipts, as well as measures of profitability with and
without appreciation,
(2) a complete balance sheet with analytical ratios;
(3) a cash flow summary including debt repayment ability;
(4) an analysis of crop acreage, yields, and expenses;
(5) an analysis of dairy livestock numbers, production. and expenses; and
(6) a capital and labor efficiency analysis.
Micro DFBS, a computer program which enables Cooperative Extension
agents and specialists to calculate and print individual farm business
reports in their offices, is now being used by the dairy farm management
field staff for nearly 100 percent of the farms cooperating. This
innovative approach provides faster processing of farm record data and
increased use of the DFBS in farm management programs.
*The Oneida-Mohawk region includes Oneida, Schoharie, Montgomery, Herkimer,
and Fulton Counties. This publication includes the following number of
farms by county: Oneida 18, Schoharie 24, Montgomery 16, Herkimer 2, and
Fulton 1. This summary was prepared by Eddy L. LaDue, Department of
Agricultural Economics, New York State College of Agriculture and Life
Sciences, Cornell University. The farm business data were collected by
Jacqueline M. Mierek, Cooperative Extension Agent, Oneida and Herkimer
Counties; and Mark E. Anibal, Cooperative Extension Agent, Schoharie,
Montgomery, and Fulton Counties. Analysis and data.management assistance
was provided by Linda Putnam.
•
2
SUHKARY AND ANALYSIS OF THE FARM BUSINESS
Business Characteristics
Planning optimal management strategies is a crucial component of operat­
ing a successful farm. Various combinations of farm resources, enterprises,
business arrangements, and management techniques are used by the dairy farmers
in this region. The following table shows important farm business
characteristics and the number of farms with these characteristics.
BUSINESS CHARACTERISTICS
61 Oneida-Mohawk Region Dairy Farms, 1991
Type of Farm
Number
Dairy
59
Part-time dairy
o
Dairy cash-crop
2
Part-time cash-crop dairy
0
Type of Ownership
Owner
Renter
Number
Iype of Business
Single proprietorship
Partnership
Corporation
Number
Business Record System
ELFAC II
Account Book
Agrifax (mail-in only)
On-Farm Computer
Other
Number
50
11
Type of Barn
Stanchion/Tie-Stall
Freestall
Combination
Number
Milking System
Bucket eSc carry
Dumping station
Pipeline
Herringbone parlor
Other parlor
Number
Milking Frequency
2x/day
3x/day
Other
Number
Production Records
DHIC
Owner-Sampler
Other
None
Number
43
13
5
1
3
43
13
1
42
18
1
o
24
7
10
20
56
4
1
45
7
7
2
The averages used in this report were compiled using data from all the
participating dairy farms in this region unless noted otherwise. There are
full-time dairy farms, part-time farms, dairy cash-crop farms, farm renters,
partnerships, and corporations included in the average. Average data for
these specific types of farms are presented in the State Business Summary.
Income Statement
In order for an income statement to accurately measure farm income, it
must include cash transactions and accrual adjustments (changes in accounts
payable, accounts receivable, inventories, and prepaid expenses).
Cash paid is the actual cash outlay during the year and does not necessarily
represent the cost of goods and services actually used in 1991.
Change in inventory: Increases in inventories of supplies and other purchased
inputs are subtracted in computing accrual expenses because they represent an
increase in purchased inputs not actually used during the year. Decreases in
purchased inventories are added to expenses because they represent inputs
purchased in a prior year and used this year.
­
~.
3
CASH AND ACCRUAL FAlUI EXPENSES
61 Oneida-Kohawk Region Dairy Farma, 1991
Expense Item
Hired Labor
IW
Dairy grain & conc.
Dairy roughage
Nondairy
Machinery
Mach. hire, rent/lease
Machinery repairs/parts
Auto expo (farm share)
Fuel, oil & grease
Livestock
Replacement livestock
Breeding
Vet & medicine
Milk marketing
Cattle lease/rent
Other livestock expense
Crops
Fertilizer & lime
Seeds & plants
Spray, other crop expo
Real Estate
Land/bldg./fence repair
Taxes
Rent & lease
Other
Insurance
Telephone (farm share)
Electricity (farm share)
Interest paid
Miscellaneous
Total Operating
Expansion livestock
Machinery depreciation
Building depreciation
TOTAL ACCRUAL EXPENSES
Cash
Paid +
$14,061
44,617
639
o
2,461
8,910
533
4,753
2,940
2,531
3,418
7,948
86
7,142
Change in
Inventory
or Prepaid
ExpeDse* +
$0 «
Change in
Accounts
Payable
$-110
680
1,127
65
-8
o
o
o«
-8
-22
-172
40
14
o«
o«
1
Accrual
Expenses
$13,951
46,424
696
o
2,453
8,716
534
4,807
22
-66
23
-6
-9
44
105
2,874
2,576
3,403
7,948
86
7,291
4,624
2,788
1,955
380
-17
73
344
15
85
5,348
2,786
2,113
2,564
5,112
5,727
-2
4
2,566
5,522
5,752
3,142
604
5,308
14,363
1,782
$148,008
2,431
o«
o«
o
o
«
«
401
28
o«
o«
o«
o«
-21
9
-3
16
$1,726
o«
o
-11
180
6
$1,481
o
3,121
604
5,297
14,543
1,804
$151,215
2,431
10,689
4,733
$169,068
Change in prepaid expenses (noted above by « ) is a net change in non-inven­
tory expenses that have been paid in advance of their use, for example, 1992
rent paid in 1991. If 1991 funds used to prepay 1992 rent exceeded the
amount of 1991 rent prepaid in 1990, the amount of this excess is entered as
a negative number to exclude it from 1991 accrual rental expenses. The
excess prepaid rent should be charged against the future year's business
operation. A decrease in prepaid rent is added to accrual expenses because
it represents use of resources during this year that were paid for in past
years.
ChAD&e in accounts payable: An increase in accounts payable from beginning to
end of year is added and a decrease is subtracted when calculating accrual
expenses.
Accrual expenses are the costs of inputs actually used in this year's produc­
tion. They are the total of cash paid, as well as changes in inventory,
prepaid expenses, and accounts payable.
•
4
Receipt Item
CASH AND ACCRUAL FAlUI RECEIPTS
61 Oneida-Hohawk Region Dairy Farms. 1991
Change in
Cash
Change in
Accounts
Receipts + InventoIY + Receivable
Milk sales
$160,699
Dairy cattle
11,418
$2,978
Dairy calves
3.083
Other livestock
253
103
Crops
342
1,777
Government receipts
1,993
-164*
Custom machine work
249
Gas tax refund
111
Other
1,331
Less nonfarm noncash cap.**
( - )---::-::--:-:2....,..6
Total Receipts
$180,914
$3,233
$1,117
35
o
o
65
o
-11
5
64
$1,275
Accrual
Receipts
$161,816
14,431
3.083
356
2,184
1,829
238
116
1,395
(-)
26
$185,422
*Change in advanced government receipts.
**Gifts or inheritances of cattle or crops included in inventory.
Cash receipts include the gross value of milk checks received during the year
plus all other payments received from the sale of farm products, services,
and government programs. Nonfarm income is not included in calculating farm
profitability.
Changes in inventory of assets produced by the business are calculated by
subtracting beginning of year values from end of year values excluding appre­
ciation. Increases in livestock inventory caused by herd growth and/or qual­
ity are added, and decreases caused by herd reduction and/or quality are
subtracted. Changes in inventories of crops grown are also included.
Increase in government receipts is subtracted from income because it
represents income received in 1991 for the 1992 crop year in excess of funds
earned for 1991. Likewise, a decrease is subtracted because it represents
funds received in 1991 in excess of those earned for 1991.
Changes in accounts receivable are calculated by subtracting beginning year
balances from end year balances. The January milk check for this December's
marketings compared with the previous January's check is included as a change
in accounts receivable.
Accrual receipts represent the value of all farm commodities produced and
services actually generated by the farm business during the year.
Profitability Analysis
Farm operators contribute labor, management, and capital to their
businesses and the combination of these resources selected determines income.
Farm profitability can be measured as the return to all family resources or
as the return to one or more individual resources such as labor and
management.
•
5
Net farm income is the return to the farm operators and other unpaid family
members for their labor, management, and equity capital. It is the farm
family's net annual return from working, managing, financing, and owning the
farm business. This is not a measure of cash available from the year's
business operation. Cash flow is evaluated later in this report.
Net farm income is computed both with and without appreciation. Appreciation
represents the change in values caused by annual changes in prices of live­
stock, machinery, real estate inventory, and stocks and certificates (other
than Farm Credit). Appreciation is a major factor contributing to changes in
farm net worth and must be included for a complete profitability analysis.
NET FARM INCOME
61 Oneida-Mohawk Region Dairy Farms, 1991
Item
Average
Total accrual receipts
Appreciation: Livestock
Machinery
Real Estate
Other Stock/Certificates
Total Including Appreciation
Total accrual expenses
Net Farm Income (with appreciation)
Net Farm Income (without appreciation)
My Farm
$185,422
1,131
620
4,157
1,627
$192,957
- 169,068
$23,889
$16,354
$--­
$--­
$--­
$---­
The chart below shows the relationship between net farm income per cow
(with appreciation) and pounds of milk sold per cow. Generally, farms with a
higher production per cow have higher profitability per cow.
Net Farnt IncoIne/Co'W and Pounds Milk/Co'W
61 Oneida-Moba'Wk Region FarIDS. 1991
2500
.
•
2000
l­
1500
f­
1
-
1000
l-
500
l-
•
•
•
'I
•
'iJ
~
"'z"C"
_.
0
-500
-1000
....
I­
•
•
•
..
•
• ••
•
••
• ••
• •
•
• •• • •• • • • •
• ••• ••
•
•
•
•
•
•
".
~
-.
­
•
•
-160100000.'-:-::--1':""2QOO::-:-::-=--1':""4OOQ":"':1-::-::--1-eooo":"':1-:--1-eooo.....L--2-0000.....L--22OQO-L--2-4OOQ-I
Pouada MlJ.k Sold Per Co_
•
6
Return to operators' labor. management. and equity capital measures the total
net farm income for the farm operator(s). It is calculated by deducting a
charge for unpaid family labor from net farm income. Operators' labor is not
included in unpaid family labor. Return to operators' labor, management, and
equity capital has been calculated both with and without appreciation.
Appreciation is an important part of the return to ownership of farm assets.
RETURN TO OPERATORS' lABOR, HANAGEHENT, AND EQUITY
61 Oneida-Mohawk Region Dairy Farms, 1991
My Farm
With
Without
Apprec.
Apprec.
Average
With
Without
Apprec.
Apprec.
Item
Net farm income
Family labor unpaid
@ $1,300 per month
Return to operators' labor,
management, & equity
$23,889
$16,354
- 3,731
- 3,731
$20,158
$12,623
$--­
$--­
$---­
$--­
Labor and management income is the return which farm operators receive for
their labor and management used in operating the farm business. Appreciation
is not included as part of the return to labor and management because it
results from ownership of assets rather than management of the farm business.
Labor and management income is calculated by deducting the opportunity cost
of using equity capital, at a real interest rate of five percent, from the
return to operators' labor, management, and equity capital excluding
appreciation. The interest charge of five percent reflects the long-term
average rate of return above inflation that a farmer might expect to earn in
comparable risk investments.
LABOR AND MANAGEMENT INCOME
61 Oneida-Mohawk Region Dairy Farms, 1991
Item
Return to operators' labor, management,
& equity without appreciation
Real interest @ 5% on $282,576
average equity capital
Labor & Management Income
Labor & Management Income per
1.34 OperatorfManager
Average
My Farm
$12,623
$--­
- 14,129
$-1,506
$--­
$-1,124
$--­
•
7
Return on equity capital measures the net return remaining for the farmer's
equity or owned capital after a charge has been made for the owner-operator's
labor and management. The earnings or amount of net farm income allocated to
labor and management is the opportunity cost of operators' labor and
management estimated by the cooperators. Return on equity capital is
calculated with and without appreciation. The rate of return on equity
capital is determined by dividing the amount returned by the average farm net
worth or equity capital. Return on total capital is calculated by adding
interest paid to the return on equity capital and then dividing by average
farm assets to calculate the rate of return on total capital.
I.ETURN ON EQUITY CAPITAL AND RETURN ON TOTAL CAPITAL
61 Oneida-Hohawk Region Dairy Farms, 1991
Item
Return to operators' labor, management,
& equity capital with appreciation
Value of operators' labor & management
Return on equity capital with appreciation
Interest paid
Return on total capital with appreciation
Return on equity capital without appreciation
Return on total capital without appreciation
Rate of return on average equity capital:
with appreciation
without appreciation
Rate of return on average total capital:
with appreciation
without appreciation
Avera~e
$20,158
- 27,926
$-7,768
$14,544
$6,776
$-15,303
$-759
My Farm
$
$
$
$
$
$
-2.75%
-5.42%
%
%
1.48%
-.17%
%
%
Farm and Family Financial Status
The first step in evaluating the financial position of the farm is to
construct a balance sheet which identifies all the assets and liabilities of
the business. The second step is to evaluate the relationship between
assets, liabilities, and net worth and changes that occurred during the year.
Financial lease obligations are included in the balance sheet. The present
value of all future payments is listed as a liability since the farmer is
committed to make the payments by signing the lease. The present value is
also listed as an asset, representing the future value the item has to the
business. For 1991, leases were discounted by 10.0 percent.
Advanced &overnment receipts are included as current liabilities. Government
payments received in 1991 that are for participation in the 1992 program are
the end year balance and payments received in 1990 for participation in the
1991 program are the beginning year balance.
•
8
1991 PARK BUSINESS & RORFARK BALANCE SHEET
61 Oneida-Hohawk Region Dairy Parms. 1991
Farm Assets
Jan. 1
Current
Farm cash, checking
& savings
$2,873
Accounts rec.
12,628
Prepaid expo
19
Feed & supplies
37,418
Total
$52,938
Intermediate
Dairy cows:
owned
$71,599
leased
0
Heifers
27,554
Bulls/other lvstk.
598
Mach,/eq. owned
92,952
Mach./eq. leased
1,377
Farm Credit stock
1,195
Other stock/cert.
3,379
Total
Long-Term
Landjbuildings:
owned
leased
Total
Total Farm
Assets
$198,654
Dec. 31
$2,843
13,902
14
36,041
$52,800
$73,500
0
29,759
703
92,271
977
748
4,583
Farm Liabilities
Jan, 1
Net Worth
Current
Accounts payable
$4,560
Operating debt
1,954
2,166
Short-term
Advanced govt. rec.
0
&
Dec, 31
$6,042
3,103
2,052
164
Total
Intermediate
Structured debt
1-10 years
Financial lease
(cattle/mach. )
Farm Credit stock
$8,680
$11,361
$80,398
$82,564
1,377
1,195
977
748
Total
$82,970
$84,289
Long Term
Structured debt
>10 yrs
Financial lease
(structures)
$81,108
$82,113
288
120
Total
Total Farm Liab.
FARM NET WORTH
$81,396
$173,046
$280,082
$82,233
$177,883
$285,069
$202,541
$201,248
288
$207,491
120
$201,536
$453,128
$207,611
$462,952
Nonfarm Assets, Liabilities & Net Worth (Average of 38 farms reporting)
Liabilities
Assets
Jan, 1
Dec. 31
& Net Worth
Jan. 1
Dec. 31
Personal cash, chkg.
& savings
$7,016
Cash value life ins.
5,238
Nonfarm real estate
23,347
Auto (personal sh.)
5,310
Stocks & bonds
4,260
Household fum.
10,447
All other
4,124
Total Nonfarm
$59,742
Nonfarm Liab.
$7,230
5,613
23,479
4,859
6,307
10,947
2,846
$61,282
NONFARM NET WORTH
Farm & Nonfarm Assets. Liabilities, & Net Worth*
$6,101
$5,384
$53,641
$55,898
Jan. 1
•
Dec. 31
-
Total Assets
$512,870
$524,234
Total Liabilities
.179,147
183,267
$333,723
$340,967
TOTAL FARM & NONFARM NET WORTH
*Assumes that average nonfarm assets and liabilities for the nonreporting
farms were the same as for those reporting.
.
9
Balance sheet analysis involves examination of relative asset and debt levels
for the business. Percent equity is calculated by dividing end of year net
worth by end of year assets and multiplying by 100. The debt to asset ratio
is compiled by dividing liabilities by assets. Low debt to asset ratios
reflect business solvency and the potential capacity to borrow. Debt levels
per productive unit represent old standards that are still useful if used
with measures of cash flow and repayment ability. The change in farm net
worth without appreciation is an excellent indicator of farm generated
financial progress.
BALANCE SHEET ANALYSIS
61 Oneida-Xohavk Region Dairy Farms, December 31, 1991
Item
Financial Ratios - Farm:
Percent equity
62%
Debt/asset ratio: total
.38
.40
long-term
intermediate/current
.37
Chanse in Net Worth:
Without appreciation
$-2,548
With appreciation
$4,987
Farm Debt Analysis:
Accounts payable as % of total debt
3%
Long-term liabilities as a % of total debt
46%
Current & inter. liab. as a % of total debt
54%
Per Tillable
Farm Debt Levels:
Per Cow
Acre Owned
Per Cow
Total farm debt
$2,437
$1,253
$--Long-term debt
1,126
579
Intermediate & current debt
1,310
674
My Farm
---_%
$--­
$--­
----_%
---_%
---_%
Per Tillable
Acre Owned
$---­
Farm inventory balance is an accounting of the value of assets used on the
balance sheet and the changes that occur from the beginning to end of year.
Changes in the livestock inventory are included in the dairy analysis. Net
investment indicates whether the capital stock is being expanded (positive)
or depleted (negative).
FARK INVENTORY BALANCE
61 Oneida-Xohavk Region Dairy Farms, 1991
Item
Value beg. of year
Purchases
Gift/inheritance
Lost capital
Sales
Depreciation
Averase of Re&ion's Farms
Real Estate
. Machinery & Equipment
$92,952
$201,248
+
$8,027*
0
715
279
4,733
+
$9,925
0
537
10,689
Net investment
Appreciation
+
Value end of year
$207,491
2,300
3,943**
*$2,295 land and $5,732 buildings and/or depreciable improvements.
**Excludes $214 of appreciation on assets sold during the year.
•
+
-1,301
620
$92,271
10
Cash Flow Statement
Completing an annual cash flow statement is an important step in
understanding the sources and uses of funds for the business. Understanding
last year's cash flow is the first step toward planning and managing cash
flow for the current and future years.
The annual cash flow statement is structured to compare all the cash
inflows including beginning balances with all the cash outflows including
ending balances for the year. By definition, total cash inflows must equal
total cash outflows when beginning and ending balances are included. Any
imbalance is, therefore, the error from incorrect accounting of cash inflows
and cash outflows. Whenever an imbalance exists, all other financial
measures may also be in error.
ANNUAL CASH FLOli STATEHENT
61 Oneida-MOhawk Region Dairy Farm., 1991
Item
Cash Inflows
Beginning farm cash, checking & savings
Cash farm receipts
Sale of assets: Machinery
Real estate
Other stock & certificate
Money borrowed (intermediate & long-term)
Money borrowed (short-term)
Increase in operating debt
Nonfarm income
Cash from nonfarm capital used in the business
Money borrowed - nonfarm
Average
$
My Farm
2,873
180,913
537
473
470
25,040
1,695
1,149
4,972
2,055
123
$---­
Total
Cash Outflows
Cash farm expenses
Capital purchases: Expansion livestock
Machinery
Real estate
Other stock & certificate
Principal payments (intermediate & long-term)
Principal payments (short-term)
Decrease in operating debt
Personal withdrawals & family expenditures
including nonfarm debt payments
Ending farm cash, checking & savings
$220,300
$---­
$148,008
2,431
9,925
8,027
47
21,869
1,809
$---­
Total
Imbalance (error)
$220,482
$-182
o
.
25,523
2,843
$---­
$---­
11
lepayment Analysis
A valuable use of cash flow analysis is to compare the debt payments
planned for the last year with the amount actually paid. The measures listed
below provide a number of different perspectives on the repayment performance
of the business. However, the critical question to many farmers and lenders
is whether planned payments can be made in 1992. The cash flow projection
worksheet on the next page can be used to estimate repayment ability, which
can then be compared to planned 1992 debt payments shown below.
PARK DEBT PAYXENTS PLANNED
Same 39 Oneida-llohawk legion Dairy Parms, 1990
Debt Payments
Long-term
Intermediate-term
Short-term
Operating (net
reduction)
Accounts payable
(net reduction)
Total
Per cow
Per cwt. 1991 milk
Percent of total
1991 receipts
Percent of 1991
milk receipts
Average
1991 Payments
Planned
Made
Planned
1992
$11,405
24,243
2,361
$12,001
27,664
2,501
$12,330
22,794
2,414
326
0
731
109
$38,443
0
$42,166
1,279
$39,549
$513
$2.90
$562
$3.18
20%
22%
23%
25%
&
1991
My Farm
1991 Payments
Planned
Made
Planned
1992
$--- $---$--­
$---$--- $--­
$
$
$--­
$--­
The cash flow coverage ratio measures the ability of the farm business
to meet its planned debt payment schedule. The ratio shows the percentage of
payments planned for 1991 (as of December 31, 1990) that could have been made
with the amount available for debt service in 1991. Farmers who did not
participate in DFBS in 1990 have their 1991 cash flow coverage ratio based on
planned debt payments for 1992.
CASH PLOW COVERAGE RATIO
Same 39 Oneida-Mohawk legion Dairy Parms, 1990 & 1991
Item
Cash farm receipts
- Cash farm expenses
+ Interest paid
- Net personal withdrawals from farm**
(A) - Amount Available for Debt Service
(B) - Debt Payments Planned for 1991
(as of December 31, 1990)
(A + B) - Cash Flow Coverage Ratio for 1991
Average
$190,176
156,262
15,556
22,126
My Farm
$---­
•
$27,344
$---­
$38,443
.71
$---­
**Personal withdrawals and family expenditures less nonfarm income and
nonfarm money borrowed. If family withdrawals are excluded, or
inaccurately included, the cash flow coverage ratio will be incorrect.
12
ANNUAL CASH FLOW WORKSHEET
Item
Regional
Averase
(per cow)
72.3
My Farm
Total
Per Cow
Expected
1992
Chanse Projection
Average number of cows
Accrual Oper. Receipts
Milk
Dairy cattle
Dairy calves
Other livestock
Crops
Misc. receipts
Total
$2,238.12
199.60
42.64
4.92
30.19
49.47
$2,564.95
$--­
$-­
$---­
$--­
$-­
$---­
Accrual Oper. Expenses
Hired labor
Dairy grain & cone.
Dairy roughage
Nondairy feed
Mach. hire/rent/lease
Mach. rpr./parts & auto
Fuel, oil & grease
Replacement 1vstk.
Breeding
Vet & medicine
Milk marketing
Cattle lease
Other livestock expo
Fertilizer & lime
Seeds & plants
Spray/other crop expo
Land, b1dg.,fence repair
Taxes
Real estate rent/lease
Insurance
Utilities
Miscellaneous
Total Less Int. Paid
$192.96
642.10
9.63
0.00
33.93
127.94
66.47
39.75
35.63
47.07
109.93
1.19
100.84
73.97
38.53
29.23
35.49
76.38
79.56
43.17
81.62
24.97
$1,890.36
$
$--­
----$---­
--­
Net Accrual Operatins Income
(total)
(without interest paid)
$48,775
3,233
- Change in 1vstk./crop inv.*
- Change in accts. rec.
1,275
+ Change in feed/supply inv.**
1,726
+ Change in accts. payab1e***
1,301
NET CASH FLOW
$47,294
- Net personal withdrawals from
farm (see footnote on pg. 12) 20,428
Available for Farm Debt
Payments & Investments
$26,866
- Farm debt payments
37,768
Available for Farm Investment
$-10,902
- Capital purchases: cattle,
machinery & improvements
$20,430
Additional Capital Needed
$---­
$
_
$---­
$
$---­
$
$
$
$
$
$
--­
*Inc1udes change in advance government receipts.
**Inc1udes change in prepaid expenses.
***Exc1udes change in interest account payable.
•
13
Cropping Analysis
The cropping program is an important part of the dairy farm business
and often represents opportunities for improved management. A complete
evaluation of what the available land resources are, how they are being used,
how well crops are producing, and what it costs to produce them is important
to evaluating alternative cropping and feed purchasing alternatives.
LAND RESOURCES AND CROP PRODUCTION
61 Oneida-Mohawk Region Dairy Farma. 1991
Item
My Farm
Avera&e
~
~
Tillable
Nontillable
Other nontillable
Total
142
28
55
225
Crop Yields
Hay crop
Corn silage
Farms
58
56
Other forage
Total forage
Corn grain
Oats
Wheat
Other crops
Tillable pasture
Idle
Total Tillable Acres
6
59
32
8
0
6
24
20
60
Rented
120
15
26
160
.I2.tli
~
Rented
~
261
43
81
385
Acres* Prod/Acre
2.42 tn OK
157
55
12.86 tn
4.60 tn OK
23
1. 73 tn OK
209
2.86 tn OK
65
99.44 bu
18
47.39 bu
0
0.00 bu
30
34
19
265
Prod/Acre
tn OK
tn
tn OK
tn OK
tn OK
bu
bu
bu
*This column represents the average acreage for the farms producing that
crop. Average acreages including those farms not producing were hay crop
149, corn silage 51, corn grain 34, oats 2, tillable pasture 13, and idle
6.
Average crop acres and yields compiled for the region are for the farms
reporting each crop. Yields of forage crops have been converted to tons of
dry matter using dry matter coefficients reported by the farmers. Grain
production has been converted to bushels of dry grain equivalent based on dry
matter information provided.
The following crop/dairy ratios indicate the relationship between
forage production, forage production resources, and the dairy herd.
CROP/DAIRY RATIOS
61 Oneida-Mohawk Region Dairy Farms. 1991
Item
Total tillable acres per cow
Total forage acres per cow
Harvested forage dry matter, tons per cow
My Farm
3.61
2.79
8.01
14
Cropping Analysis (continued)
A number of cooperators have allocated crop expenses among the hay
crop, corn, and other crops produced. Fertilizer and lime, seeds and plants,
and spray and other crop expenses have been computed per acre and per
production unit for hay and corn. Additional expense items such as fuels,
labor, and machinery repairs are not included.
Most machinery costs are associated with crop production and should be
analyzed with the crop enterprise. Total machinery expenses include the
major fixed costs (interest and depreciation), as well as the accrual
operating costs. Although machinery costs have not been allocated to
individual crops, they are shown below per total tillable acre.
ACCRUAL MACHINERY EXPENSES
61 Oneida-Mohawk Region Dairy Farms, 1991
Machinery
Expense Item
Average
Total
Per Til.
Expenses
Acre
Fuel, oil & grease
Machinery repairs & parts
Machine hire, rent & lease
Auto expense (farm share)
Interest (5%)
Depreciation
Total
$4,806
8,716
2,453
534
4,631
10,689
$31,829
$18.41
33.39
9.40
2.05
17.74
40.95
$121. 95
My Farm
Total
Per Til.
Acre
Expenses
$---­
$--­
$--­
$---,-­
15
Dairy Analysis
Analysis of the dairy enterprise can reveal a great deal about the
strengths and weaknesses of the dairy farm business. Information on this
page should be used in conjunction with DHI and other dairy production
information. Changes in dairy herd size and market values that occur during
the year are identified in the table below. The change in inventory value
without appreciation is attributed to physical changes in herd size and
quality. Any change in inventory is included as an accrual farm receipt when
calculating all of the profitability measures on pages 6 and 7.
DAIRY HERD INVENTORY
61 Oneida-Kohavk Region Dairy Farms. 1991
Dairy Cows
Item
Beg. year (owned)
No,
Value
72
$71,599
1,222
679
$73,500
+ Change w/o apprec.
+ Appreciation
73
73
End year (owned)
End inc!. leased
Average number
Bred
No. Value
18
18
$14,698
359
237
$15,294
Heifers
Open
No, Value
20
22
$9,076
1,315
141
$10,532
Calves
No. Value
17
$3,781
80
72
17
$3,933
56 (all age groups)
72
Ky Farm:
Beg. of year (owned)
+ Change w/o apprec.
+ Appreciation
End of year (owned)
End including leased
Average number
$--
$- - -
$- - -
$- - ­
----$
- - -
$--
$--
$-­
(all age groups)
Total milk sold and milk sold per cow are extremely valuable measures
of size and productivity, respectively, on the dairy farm. These measures of
milk output are based on pounds of milk marketed during the year. Farm
managers on DHI should compare milk sold per cow with their rolling herd
average on the test date nearest December 31 to see how close the DHI
estimate of milk produced is to actual milk sales.
KILX PRODUCTION
61 Oneida-Hohavk Region Dairy Farms. 1991
Item
Total milk sold, lbs.
Milk sold per cow, lbs.
Average milk plant test, percent butterfat
Average
1,261,899
17,455
3.66
My Farm
•
16
The cost of producin& milk has been compiled using the whole farm method and
is featured in the following table. Accrual receipts from milk sales can be
compared with the accrual costs of producing milk per cow and per
hundredweight of milk. Using the whole farm method, operatin& costs of
producin& milk are estimated by deducting nonmi1k accrual receipts from total
accrual operating expenses including expansion livestock purchased. ~
costs of producin& milk include the operating costs of producing milk plus
depreciation on machinery and buildings, the value of unpaid family labor,
the value of operators' labor and management, and the interest charge for
using equity capital. Total costs without operator's labor, management, and
capital are the operating costs plus depreciation and unpaid family labor.
ACCRUAL RECEIPTS FROM DAIRY AND COST OF PRODUCING MILK
61 Oneida-Mohawk Region Dairy Farms, 1991
Item
Accrual Costs of
Producin& Milk
Operating costs
Total costs wlo
opers' labor,
mgmt. & .capi tal
Total Costs
Accrual Receipts
From Milk
Total
Avera&e
Per Cow
Per Cwt,
Total
My Farm
Per Cow
Per Cwt.
$130,040
$1,799
$10.31
$
$
$
$149,193
$191,248
$2,064
$2,645
$11.82
$15.16
$
$
$
$
$
$
$161,816
$2,238
$12.82
$
$
$
The accrual operating expenses most commonly associated with the dairy
enterprise are listed in the table below. Evaluating these costs per unit of
production enables an evaluation of the dairy enterprise.
DAIRY RELATED ACCRUAL EXPENSES
61 Oneida-Mohawk Region Dairy Farms. 1991
Avera&e
Item
Purchased dairy grain
& concentrates
Purchased dairy roughage
Total Purchased
Dairy Feed
Purchased grain & conc.
as % of milk receipts
Purchased feed & crop expo
Purchased feed & crop expo
as % of milk receipts
Breeding
Veterinary & medicine
Milk marketing
Cattle lease
Other livestock expense
My Farm
Per Cow
Per Cwt.
Per Cow
$642
10
$3.68
.06
$
$
$652
$3.73
$
$
$4.55
$
$.20
.27
.63
.01
.58
$
29%
$793
\
35\
$36
47
110
1
101
Per Cwt,
$
\
$
•
17
Capital and Labor Efficiency Analysis
Capital efficiency factors measure how intensively the capital is being
used in the farm business. Measures of labor efficiency are key indicators
of management's success in generating products per unit of labor input.
Item
CAPITAL EFFICIENCY
61 Oneida-Mohawk Region Dairy Farms, 1991
Per
Per
Per Tillable
Worker
Cow
Acre
Farm capital
Real estate
Machinery & equipment
Capital turnover, years
$180,034
$6,335
2,830
1,297
36,864
Per Tillable
Acre Owned
$3,226
1,441
$1,755
359
2.37
My Farm:
Farm capital
Real estate
Machinery & equipment
Capital turnover, years
$
$
$--­
$--­
LABOR FORCE INVENTORY AND ANALYSIS
61 Oneida-Mohawk Region Dairy Farms, 1991
Years
Value of
Labor Force
Months
of Educ.
Labor & MlW't.
A&e
Operator number 1
14
11.56
$19,844
43
Operator number 2
6,459
3.69
14
40
Operator number 3
1,623
.84
50
13
Family paid
4.18
Family unpaid
2.87
Hired
L.l2.
Total
30.52
+ 12 - 2.54 Worker Equivalent
1. 34 Operator/Manager Equiv.
My Farm: Total
+ 12 Worker Equivalent
Operator's
Operator/Manager Equiv.
+ 12 Labor
Efficiency
Cows, average number
Milk sold, pounds
Tillable acres
Work units
Labor Costs
Value of operator(s)
labor ($l,300/mo.)
Family unpaid
($l,300/mo.)
Hired
Total Labor
Machinery Cost
Total Labor & Mach.
Avera&e
Per Worker
72
28
1,261,899
495,992
261
103
775
305
Total
Total
Total
My Farm
Per Worker
My Farm
Avera&e
Per
Per
Til. Acre
Cow
Per
Cow
Total
Per
Til. Acre
$20,917
$289
$80.14
$
$
$
3,731
13,951
$38,599
$31,829
$70,428
52
193
$534
$440
$974
14.30
53.45
$147.89
$121. 95
$269.84
$
$
$
$
$
$
$
$
$
•
18
COMPARATIVE ANALYSIS OF THE FAllH BUSINESS
Progress of the Farm Business
Comparing your business with average data from regional DFBS coopera­
tors that participated in both of the last two years is one part of a
business checkup. It is equally important for you to determine the progress
your business has made over the past two or three years and to set targets or
goals for the future.
PROGRESS OF THE FAllH BUSINESS
Oneida-Mohawk Region Dairy Farms, 1990 & 1991
Average of 39 Farms*
Selected Factors
1990
1991
Size of Business
Average number of cows
75
75
Average number of heifers
59
57
Milk sold, lbs.
1,241,764 1,324,702
Worker equivalent
2.64
2.59
Total tillable acres
259
271
Rates of Production
Milk sold per cow, lbs.
Hay DM per acre, tons
Corn silage per acre, tons
Labor Efficiency
Cows per worker
Milk sold/worker, lbs.
16,648
2.37
13
17,742
2.39
13
28
469,742
29
511,527
1990
My Farm
1991
Goal
Cost Control
Grain & cone. purchased
as % of milk sales
Dairy feed & crop expo
per cwt. milk
Labor & mach. costs/cow
$5.16
$1,034
$4.64
$991
$
$
___
___
Capital Efficiency**
Farm capital per cow
Mach. & equip. per cow
Capital turnover, years
$6,350
$1,370
2.11
$6,604
$1,390
2.44
$
$
___
$--------­ $ - - ­
___ $--------- $----­
$29,319
$36,436
$15,650
$24,923
$----­
$----­
$
$
$8,631
$-2,372
$----­
$----- $------­
Profitability
Net farm inc. w/o apprec.
Net farm inc. w/apprec.
Labor & mgt. income
per oper./manager
Rate of return on eq.
capital w/apprec.
Rate of return on all
capital w/apprec.
Financial Summary
Farm net worth, end year
Debt to asset ratio
Farm debt per cow
27%
4%
$298,850
.39
$2,473
*Farms participating both years.
29%
--_%
---_%
$--------­ $----­
$--------­ $ - - ­
$------­
$----­
-2%
--_%
--_%
--_%
2%
--_%
--_%
--_%
$305,732
.39
$2,529
$--­
$----- $------­
$--­
$
**Average for the year.
$------­
•
. 19
legional larm Business Chart
The Farm Business Chart is a tool which can be used in analyzing your
business. Compare your business by drawing a line through or near the figure in
each column which represents your current level of performance. The five
figures in each column represent the average of each 20 percent or quinti1e of
farms included in the regional summary.
lARK BUSINESS CHART 101 lARK HANAGEHENT COOPERATORS
61 Oneida-Xohawk legion Dairy larms, 1991
Size of Business
Worker
No.
Pounds
Equivof
Milk
alent
Cows
Sold
(10)*
4.1
2.7
2.3
2.0
1.5
(10)
132
74
63
53
36
Grain
Bought
Per Cow
(9)
$368
487
622
733
937
(10)
2,447,242
1,297,797
1,047,398
874,941
543,338
% Grain is
of Milk
Receipts
Labor Efficiency
Pounds
Cows
Per
Milk Sold
Worker
Per Worker
Rates of Production
Pounds
Tons
Tons Corn
Milk Sold Hay Crop Silage
Per Cow
DMjAcre Per Acre
(9)
(8)
(8)
20,962
18,000
17,049
15,538
13,498
3.6
2.6
2.2
1.8
1.4
17
15
13
11
7
Cost Control
Machinery
Labor &
Costs
Machinery
Per Cow
Costs Per Cow
(10)
Feed & Crop
Expenses
Per Cow
Feed & Crop
Expenses Per
Cwt. Milk
(9)
(10)
(10)
(9)
19%
24
28
34
40
$272
366
417
489
666
$736
858
970
1,090
1,354
$489
633
751
882
1,097
(9)
(9)
$2,689
2,331
2,172
1,965
1,691
$7.86
9.01
10.14
11.32
13.52
(9)
$12.81
14.16
15.15
16.22
21.51
Net Farm
Income
wjApprec.
(3)
$71,432
32,794
19,515
6,842
-15,116
679,437
531,980
463,912
407,666
303,520
39
31
27
24
19
(9)
Value and Cost of Production
Milk
Oper. Cost
Total Cost
Receipts
Milk
Production
Per Cow
Per Cwt.
Per Cwt.
(10)
$3.18
3.97
4.48
4.98
5.87
Profitability
Net Farm
Labor &
Inc. wjo
Mgt. Inc.
Per Oper.
Apprec.
(3)
$58,471
24,851
13,003
1,038
-19,113
(3)
$19,322
5,251
-2,953
-13,133
-34,133
*Page number of the participant's DFBS where the factor is located.
Change in
Net Worth
wjApprec.
(5)
$37,299
13,265
4,949
-6,238
-27,020
•
20
Nev York State Farm Business Chart
The Farm Business Chart is a tool which can be used in analyzing your
business. Compare your business by drawing a line through or near the figure in
each column which represents your current level of performance. The figure at
the top of each column is the average of the top 10 percent of the 395 farms for
that factor. The other figures in each column are the average for the second 10
percent, third 10 percent, etc. Each column of the chart is independent of the
others. The farms which are in the top 10 percent for one factor would ~ nec­
essarily be the same farms which make up the top 10 percent for any other
factor.
The cost control factors are ranked from low to high, but the lowest cost
is not necessarily the most profitable. In some cases, the "best" management
position is somewhere near the middle or average. Many things affect the level
of costs, and must be taken into account when analyzing the factors.
FARM BUSINESS CHAllT FOR FARM KANAGEHENT COOPERATORS
395 New York Dairy Farms, 1990
Size of Business
Worker
No.
Pounds
Equivof
Milk
alent
Cows
Sold
(10)
(10)
(10)*
8.7
349
6,643,712
4.7
157
2,871,316
3.9
118
2,089,248
3.3
1,691,784
98
3.0
81
1,417,006
Rates of Produc don
Pounds
Tons
Tons Corn
Milk Sold Hay Crop Silage
Per Cow
OM/Acre Per Acre
(8)
(9)
(8)
21,193
4.5
20
19,629
18
3.6
18,650
17
3.2
17,988
3.0
16
17,422
2.8
15
Labor Efficiency
Cows
Pounds
Per
Milk Sold
Worker
Per Worker
(10)
(10)
870,895
48
691,021
40
615,415
35
561,437
32
510,328
30
-------------------------------------------------------------------------------2.6
2.3
2.1
1.8
1.3
Grain
Bought
Per Cow
(9)
$ 366
476
542
611
667
70
60
53
46
35
1,151,117
968,206
837,604
693,783
507,451
% Grain is
of Milk
Receipts
(9)
15%
20
23
25
27
16,875
16,322
15,455
14,054
11,686
2.5
2.3
2.0
1.8
1.3
14
13
12
11
8
Cost Control
Machinery
Labor &
Costs
Machinery
Per Cow
Costs Per Cow
(10)
(10)
$265
$ 692
351
823
390
901
429
945
466
999
28
26
24
22
17
Feed & Crop
Expenses
Per Cow
(9)
$ 517
645
721
781
833
463,936
429,166
387,958
339,968
240,302
Feed & Crop
Expenses Per
Cwt. Milk
(9)
$3.40
4.13
4.46
4.74
4.97
-----------------------------------------.-------------------------------------­
719
770
827
899
1,058
29
31
32
35
40
496
530
575
638
807
1,058
1,109
1,173
1,273
1,474
891
949
1,014
1,099
1,279
*Page number of the participant's DFBS where the factor is located.
5.26
5.52
5.80
6.24
7.11
•
21
FARH BUSINESS CHAllT FOB. FARH
HANAGEHENT COOPERATORS
395 New York Dairy Farms, 1990
Milk
Receipts
Per Cow
Milk
Receipts
Per Cwt,
Oper, Cost
Milk
Per Cow
Total Cost
Production
Per Cow
Oper. Cost
Milk
Per Cwt,
Total Cost
Production
Per Cwt,
(9)
(9)
$3,201
2,966
2,806
2,669
2,589
$16,32
15,63
15,27
14,98
14,83
$1,112
1,425
1,547
1,668
1,791
$ 7,19
8,96
9.65
10.15
10.68
$1,997
2,311
2,461
2,594
2,710
$12,78
14,06
14.77
15.32
15,80
2,496
2,390
2,262
2,064
1,721
14,69
14,57
14,44
14.23
13,59
1,922
2,036
2,151
2,281
2,593
11.20
11.69
12.29
13,14
14,90
2,802
2,921
3,041
3,196
3,651
16.29
16.99
17.69
19.04
22.69
(9)
(9)
(9)
(9)
Profitability
Net Farm Income
With
Without
Appreciation
Appreciation
(3)
Return to Operator's Labor,
Management, & EQuity Capital
With
Without
Appreciation
Appreciation
Labor &
Management Income
Per
Per
Farm
Operator
(3)
(3)
(3)
$231,926
91,230
66,354
50,670
42,626
$190,057
81,401
56,580
44,618
34,580
$230,419
89,849
61,893
47,120
38,335
$188,587
79,191
52,316
40,525
31,926
$130,403
47,621
29,650
20,689
14,330
$96,579
31,927
21,508
15,542
10,878
33,267
25,805
19,089
11,588
-11,058
28,118
20,654
13,852
6,798
29,721
21,927
14,945
6,513
-14,637
24,485
16,616
10,124
1,732
-14,241
7,592
1,361
-5,365
-15,640
-34,015
6,034
1,060
-4,331
-13,572
-30,508
(3)
-9,971
(3)
Farm Business Charts for farms with freesta11 barns and 120 cows or less
and more than 120 cows, and farms with conventional barns with 60 cows or less
and more than 60 cows are shown on pages 25-28.
Financial Analysis Chart
The farm financial analysis chart on page 22 is designed just like the
Farm Business Chart and may be used to assess the financial health of the farm
business. Most of the financial measures used in the chart are defined on pages
6, 9, 11, and 17 of this publication, References to DFBS output page numbers
for participating dairy farmers are provided in the table headings,
•
22
FINANCIAL ANALYSIS CHART
395 New York Dairy Farms, 1990
Debt
Payments
Per Cow
(7)*
$ 59
181
253
341
400
454
501
560
642
899
Leverage
Ratio**
Available for
Debt Service
Per Cow
(11)
$932
742
663
582
513
452
395
315
207
-196
Capital
Turnover
(years)
(10)
1.38
1.68
1.84
2.03
2.18
2.34
2.50
2.70
3.08
4.27
(7)
(7)
5.22
2.11
1.59
1.30
1.15
1.01
0.85
0.69
0.43
-0.23
4%
Solvency
Debt/Asset Ratio
Percent
Current &
Long
Equity
Intermediate
Term
(5)
0.02
0.11
0.21
0.33
0.43
0.55
0.72
0.93
1.22
2.40
Liquidity (rep~ent)
Cash Flow
Debt Payments
Coverage
as Percent
Ratio
of Milk Sales
98
90
82
75
69
64
58
51
45
32
(5)
(5)
0.01
0.06
0.12
0.19
0.25
0.31
0.37
0.44
0.53
0.73
0.00
0.00
0.07
0.18
0.27
0.39
0.50
0.61
0.74
1.00
EfficiencY (Capital)
Real Estate
Machinery
Investment
Investment
Per Cow
Per Cow
(10)
(10)
$1,390
$ 596
1,972
817
2,262
940
2,594
1,050
2,865
1,194
3,125
1,318
3,504
1,472
4,037
1,658
4,705
1,946
6,762
2,646
Debt
Per Cow
(5)
$
8
11
14
16
18
20
22
25
37
119
680
1,210
1,632
2,025
2,386
2,735
3,178
3,737
4,726
Profitability
Percent Rate of Return with
appreciation on:
Equity
Investment***
(3)
(3)
21%
11
8
16%
10
8
5
3
6
5
1
4
-1
-3
-7
-23
3
1
-2
-7
Total Farm
Assets
Per Cow
(10)
$ 4,264
5,087
5,667
6,103
6,482
6,869
7,340
7,990
8,937
11,419
Change in
Net Worth
w/Appreciation
(5)
$110,353
53,680
33,094
22,571
15,798
10,557
3,939
-3,080
-11,458
-47,167
*Page number of the participant's DFBS where the factor is located.
**Do11ars of debt per dollar of equity, computed by dividing total liabilities
by total equity.
***Return on all farm capital (no deduction for interest paid) divided by total
farm assets.
•
23
Comparisons by Type of Barn and Herd Size
When analyzing a dairy farm business by comparing it to a group of farms,
it is important that the group of farms used has as many of the same physical
characteristics as possible as the farm being analyzed. To assist in this
endeavor, dairy farms in the 1990 State Summary* have been divided into those
with freestall and those with conventional housing. Within each group is a
further classification by size of the dairy herd.
The table on page 24 shows the average values for the resulting four
groups of dairy farms. Within each housing type, the larger herd size has the
highest crop yields and pounds of milk sold per cow. The total cost of
producing milk was lower on the larger farms and labor efficiency greater.
Profitability was also greater on the larger farms within each housing type.
Farm business charts have been computed for each of the four housing and
herd size categories. References to DFBS output page numbers for participating
dairy farmers are provided in the table headings. From these charts on pages
25-28, the range in size of business, rates of production, labor efficiency,
value and cost of producing milk, and profitability can be observed. The range
in every category of business performance is tremendous.
By comparing the farm's performance on the most appropriate business
chart, a farm manager will be better able to evaluate his or her business
performance. Farm managers should remember, however, that their competition is
not limited to the other farms in their own barn type and herd size category.
They should observe how their management performance compares with farms in
other categories as well.
Herd Size Comparisons
A detailed comparison of profitability, financial situation, and business
analysis factors across herd sizes is contained on pages 36-43 of the 1990 State
Summary*. As herd size increases, the average profitability also increases
(pages 36-37). Net farm income without appreciation was $227,064 per farm for
the 300 or more herd size group and $10,520 per farm for those with less than 40
cows. This relationship generally holds for all measures of profitability
including rate of return on capital.
Farm net worth increases rapidly as herd size increases (pages 38-41), but
percent equity and debt/asset ratios do not show a significant variation between
size groups. Debt payments per cow were lowest for the moderate size herd
groups and they demonstrated a strong ability to make debt payments.
Crop yields generally increased as herd size increased, but fertilizer and
lime expenses, and machinery cost per tillable acre also increased (pages 42­
43). Milk sold per cow increased as herd size increased, ranging from 15,372
pounds on the farms with less than 40 cows to 19,199 pounds on farms with 300 or
more cows. Farm capital per worker generally increased, and farm capital per
cow decreased as herd size increased. Milk sold per worker increased
dramatically as herd size increased, ranging from 304,000 pounds at the lowest
herd size category up to 872,000 pounds at the largest size cateogry.
*Smith, Stuart F., Wayne A. Knoblauch, and Linda D. Putnam, pairy Farm
Mana&ement Business Summary. New York. 1990, Department of Agricultural
Economics, Cornell University, A.E. Res. 91-5, August 1991.
•
24
SELECTED BUSINESS FACTORS BY TYPE OF BARN
AND IIEIlD SIZE
364 New York Dairy Farms, 1990
Farms with:
Item
Number of farms
Croppini Prosram Analysis
Total Tillable acres
Tillable acres rented*
Hay crop acres*
Corn silage acres*
Hay crop, tons DM/acre
Corn silage, tons/acre
Oats, bushels/acre
Forage DM per cow, tons
Tillable acres/cow
Fert. & lime exp./ti1. acre
Total machinery costs
Machinery cost/tillable acre
Conventional
$60 Cows
>60 Cows
127
97
60
80
162
50
105
28
2.3
13.2
55.8
7.9
3.5
$19.38
$22,362
$138
287
105
168
57
2.6
14.2
58.1
8.2
3.3
$27.87
$42,595
$148
287
115
156
65
2.5
15.3
61.4
8.6
3.4
$25.81
$44,486
$155
647
249
258
213
2.9
14.5
57.2
7.3
2.7
$33.56
$113,711
$176
Dairy Analysis
Number of cows
47
Number of heifers
37
Milk sold, 1bs.
741,903
Milk sold/cow, 1bs.
15,959
Operating cost of prod. mi1k/cwt.
$10.62
Total cost of prod. mi1k/cwt.
$17 .45
Price/cwt. milk sold
$14.70
Purchased dairy feed/cow
$693
Purchased dairy feed/cwt. milk
$4.34
Purc. grain & conc. as % milk rec.
28%
Purc. feed & crop exp./cwt. milk
$5.13
Capital Efficiency
Farm capital/worker
Farm capital/cow
Farm capital/til. acre owned
Real estate/cow
Machinery investment/cow
Capital turnover, years
Labor Efficiency
Worker equivalent
Operator/manager equivalent
Milk sold/worker, 1bs.
Cows/worker
Work units/worker
Labor cost/cow
Labor cost/tillable acre
Freestall
<120 Cows
>120 Cows
$172,643
$7,444
$3,090
$3,790
$1,444
2.58
87
73
1,461,585
16,860
$11.12
$16.12
$14.90
$719
$4.27
28%
$5.22
85
69
1,451,384
17,015
$11.04
$16.13
$14.95
$695
$4.09
26%
$5.08
243
196
4,558,311
18,739
$11.22
$14.56
$15.00
$813
$4.34
28%
$5.28
$199,664
$6,914
$3,294
$3,195
$1,346
2.33
$204,685
$6,834
$3,389
$3,016
$1,463
2.29
$234,105
$6,066
$3,706
$2,660
$1,053
1.81
2.00
1.21
370,048
23
248
$589
$169
3.00
1.38
486,820
29
309
$512
$155
2.85
1. 37
509,605
30
321
$510
$152
6.30
1.63
723,398
39
400
$550
$207
Profitability & Balance Sheet Analysis
Net farm income (w/o apprec.)
$18,620
Labor & mgmt. income/operator
$2,279
Farm debt/cow
$2,426
Percent equity
67%
$35,416
$8,017
$2,093
70%
$35,472
$8,594
$2,194
68%
$115,054
$39,642
$2,231
64%
*Average of all farms, not only those reporting data.
25
FARK BUSINESS CHART FOR SHALL CONVENTIONAL STALL DAIRY FARKS
127 Conventional Stall Dairy Farms with 60 or Less Cows, New York, 1990
Size of Business
Worker
No.
Pounds
Equiv­
of
Milk
alent
Cows
Sold
(10)
(10)
(10)*
Rates of Production
Tons
Tons Corn
Pounds
Milk Sold Hay Crop Silage
Per Cow
DMlAcre Per Acre
(9)
(8)
(8)
Labor Efficiency
Cows
Pounds
Per
Milk Sold
Worker
Per Worker
(10)
(10)
3.2
2.6
2.4
2.1
2.0
59
57
54
51
49
1,063,570
956,623
886,369
821,538
757,836
19,694
18,135
17,515
17,016
16,617
3.9
3.2
3.0
2.7
2.5
20
17
16
15
13
38
30
28
26
25
601,872
514,801
465,011
431,581
394,554
1.9
1.7
1.5
1.3
1.1
45
42
40
36
28
707,062
658,951
608,772
536,080
367,339
16,066
15,340
14,202
13,081
10,584
2.3
2.0
1.8
1.6
1.0
12
12
10
10
23
22
20
18
14
368,897
341,474
298,433
260,744
196,088
Grain
Bought
Per Cow
(9)
Grain is
of Milk
Receipts
%
(9)
$ 360
476
527
577
632
16%
22
24
26
28
698
737
781
827
1,007
29
31
33
37
41
7
Cost Control
Machinery
Labor &
Costs
Machinery
Per Cow
Costs Per Cow
(10)
(10)
$ 683
$221
829
317
917
359
962
391
455
1,022
490
516
556
619
848
Value and Cost of Production
Milk
Oper. Cost
Total Cost
Receipts
Milk
Production
Per Cow
Per Cwt.
Per Cwt.
Feed & Crop
Expenses
Per Cow
Feed & Crop
Expenses Per
Cwt. Milk
(9)
(9)
$ 475
608
684
722
762
$3.42
4.11
4.45
4.71
4.92
817
873
934
1,013
1,247
5.17
5.38
5.72
6.19
7.23
1,077
1,138
1,219
1,320
1,596
Profitability
Net Farm Income
Labor &.
With
Without
Mgmt. Inc.
Per Oper.
Apprec.
Apprec.
Change in
Net Worth
w/Apprec,
(9)
(9)
(9)
(3)
(3)
(3)
(5)
$2,982
2,729
2,604
2,490
2,408
$ 6.69
8.42
9.10
9.60
10.10
$13.63
14.78
15.38
16.04
16.81
$72,739
44,695
36,555
29,556
25,909
$48,969
35,933
29,744
25,100
19,976
$25,562
17,760
13,303
8,783
4,369
$42,873
22,785
16,110
12,312
6,962
•
2,337
2,224
2,073
1,877
1,522
10.77
11.45
11.98
12.74
15.51
17.50
18.18
19.28
20.39
26.07
21,881
17,294
12,480
5,188
-14,724
15,365
10,762
6,635
2,872
-12,754
339
-2,731
-7,250
-16,427
-32,617
*Page number of the participant's DFBS where the factor is located.
3,309
247
-4,426
-11,086
-36,059
26
FABlI BUSINESS CHART FOR LARGE CONVENTIONAL STALL DAIRY FARMS
97 Conventional Stall Dairy Farms with More Than 60 Cows, New York, 1990
Size of Business
Worker
Pounds
No.
Equivof
Milk
Cows
alent
Sold
(10)
(10)
(10)*
149
5.1
2,584,859
4.0
106
1,875,410
3.4
96
1,629,899
1,517,394
3.1
86
80
2.9
1,403,263
Rates of Production
Tons Corn
Pounds
Tons
Milk Sold Hay Crop Silage
Per Cow
DK/Acre Per Acre
(8)
(9)
(8)
20
20,718
4.3
19,377
18
3.5
17
18,581
3.1
18,068
2.9
16
17,315
2.6
15
Labor Efficiency
Cows
Pounds
Per
Milk Sold
Worker
Per Worker
(10)
(10)
44
760,541
637,992
37
33
576,615
31
541,546
30
486,292
---------------------------------_._------.------------------------------------­
2.6
2.5
2.4
2.1
1.7
Grain
Bought
Per Cow
(9)
$ 373
442
506
579
649
76
71
68
66
63
1,328,227
1,219,172
1,101,764
988,499
819,905
% Grain is
of Milk
Receipts
(9)
16%
19
23
24
26
16,794
16,108
14,940
13,591
11,401
2.4
2.2
2.1
1.8
1.5
14
12
12
11
8
Cost Control
Machinery
Labor &
Costs
Machinery
Per Cow
Costs Per Cow
(10)
(10)
$298
$ 720
368
812
864
393
913
421
456
954
456,646
426,507
404,925
375,631
297,511
28
26
25
23
19
Feed & Crop
Expenses
Per Cow
(9)
$ 493
598
695
759
826
Feed & Crop
Expenses Per
Cwt. Milk
(9)
$3.38
4.08
4.39
4.69
4.89
-------------------------------------------------------------------------------700
774
842
919
1,086
28
31
33
35
40
485
531
585
640
742
Value and Cost of Production
Milk
Oper. Cost
Total Cost
Receipts
Milk
Production
Per Cow
Per Cwt.
Per Cwt.
(9)
(9)
(9)
$3,162
$ 7.30
$13.04
2,902
9.22
14.11
2,744
9.91
14.94
2,651
10.20
15.55
2,576
10.59
15.93
994
1,079
1,137
1,216
1,362
886
936
1,011
1,087
1,279
Profitability
Labor &.
Net Farm Income
Without
Mgmt. Inc.
With
Per Oper.
Apprec.
Apprec.
(3)
(3)
(3)
$46,704
$106,960
$91,167
61,082
27,104
72,165
49,457
19,419
54,447
13,118
48,672
43,537
9,424
43,293
34,340
5.24
5.43
5.72
6.14
7.14
Change in
Net Worth
w/Apprec.
(5)
$77,975
39,645
29,725
23,556
17,338
-------------------------------------------------------------------------------2,478
2,362
2,205
2,025
1,730
11.13
11.69
12.34
13.24
14.19
16.38
16.82
17.30
18.04
20.13
36,204
25,594
18,611
12,273
-4,728
27,752
21,420
14,713
9,758
-5,646
4,553
380
-5,082
-13,809
-23,429
*Page number of the participant's DFBS where the factor is located.
12,420
5,334
-2,665
-11,179
-47,564
.
27
FARM BUSINESS CHAllT FOR SHALL FB.EESTALL DAIRY FARMS
60 Freesta11 Barn Dairy Farms with 120 or Less Cows, New York, 1990
Size of Business
Worker
Pounds
No.
of
Milk
EquivCows
alent
Sold
(10)
(10)
(10)*
4.3
116
2,158,034
109
1,944,413
3.8
3.5
103
1,846,013
3.1
97
1,696,622
2.9
90
1,536,651
Rates of Production
Tons Corn
Pounds
Tons
Milk Sold Hay Crop Silage
Per Cow
PMJAcre Per Acre
(8)
(9)
(8)
20,788
21
4.6
19,249
3.6
19
18,571
3.3
17
17,923
3.0
16
2.8
17,237
15
Labor Efficiency
Cows
Pounds
Milk Sold
Per
Worker
Per Worker
(10)
(10)
48
828,578
40
676,371
36
605,256
33
578,887
31
547,092
--------------------------------------------------------------------------------
2.7
2.5
2.2
1.9
1.4
Grain
Bought
Per Cow
(9)
286
$
426
520
606
666
80
77
67
56
46
1,343,093
1,213,815
1,049,918
881,600
632,120
% Grain is
of Milk
Receipts
(9)
11%
18
21
25
27
16,615
16,147
15,476
13,672
12,126
2.5
2.1
1.9
1.6
1.0
29
27
25
23
18
15
14
14
13
9
Cost Control
Machinery
Labor &
Costs
Machinery
Per Cow
Costs Per Cow
(10)
(10)
$270
$ 653
331
802
393
885
440
933
464
970
Feed & Crop
Expenses
Per Cow
(9)
$ 512
620
665
767
838
501,972
456,111
410,748
354,502
253,915
Feed & Crop
Expenses Per
Cwt. Milk
(9)
$3.01
3.77
4.40
4.76
5.12
--------------------------------------------------------------------------------
704
764
840
906
1,006
28
31
33
34
39
496
567
614
686
877
Value and Cost of Production
Milk
Oper. Cost
Total Cost
Receipts
Milk
Production
Per Cow
Per Cwt.
Per Cwt.
(9)
(9)
(9)
$1,854
$ 7.95
$12.98
2,012
9.22
14.11
2,295
9.65
14.91
2,435
10.09
15.41
2,509
10.72
15.85
2,588
2,667
2,759
2,898
3,100
11.21
11.78
12.71
13.84
15.22
16.19
16.95
17.81
19.65
22.15
1,046
1,092
1,153
1,267
1,481
921
969
1,041
1,091
1,219
Profi tab il i ty
Net Farm Income
Labor &.
Without
With
Mgmt. Inc.
Per Oper.
Apprec.
Apprec.
(3)
(3)
(3)
$101,819
$96,206
$44,877
27,364
79,708
70,840
19,085 ,
69,020
56,741
48,026
13,408
59,252
41,880
36,075
10,018
31,702
23,015
16,564
5,105
-18,572
27,444
15,348
10,333
-2,985
-12,043
6,031
433
-9,174
-18,460
-26,264
*Page number of the participant's DFBS where the factor is located.
5.52
5.65
5.85
6.34
7.12
Change in
Net Worth
w/Apprec.
(5)
$75,638
48,824
33,368
23,325
15,763
10,534
1,011
-7,476
-19,705
-77 ,443
28
FAllM BUSINESS CHART FOR LARGE FREESTALL DAIRY FAllMS
80 Freesta11 Barn Dairy Farms with More Than 120 Cows, New York, 1990
Size of Business
Worker
No.
Pounds
Equiv­
of
Milk
alent
Cows
Sold
(10)
(10)
(10)*
14.7
665 12,936,108
7.9
338
6,399,112
7.0
257
4,683,440
6.0
205
3,760,735
181
3,413,110
5.5
Rates of Production
Pounds
Tons
Tons Corn
Milk Sold Hay Crop Silage
Per Cow
PM/Acre Per Acre
(9)
(8)
(8)
21,844
4.7
19
20,930
4.0
18
20,025
3.5
17
19,243
3.2
16
18,723
3.0
16
Labor Efficiency
Cows
Pounds
Per
Milk Sold
Worker
Per Worker
(10)
(10)
57
1,002,686
44
866,986
42
793,600
40
734,560
38
694,646
------------------------------------------------------.------------------------­
5.1
4.5
4.0
3.8
3.1
Grain
Bought
Per Cow
(9)
416
$
550
632
689
738
783
826
857
926
1,078
169
156
142
130
122
3,070,859
2,884,946
2,714,383
2,432,639
1,908,456
% Grain is
of Milk
Receipts
(9)
15%
19
23
25
26
29
30
32
34
40
18,168
17,731
17 ,106
16,404
14,467
2.8
2.6
2.3
2.1
1.5
13
12
9
Cost Control
Labor &
Machinery
Costs
Machinery
Per Cow
Costs Per Cow
(10)
(10)
$287
$ 670
839
368
405
919
441
975
480
1,025
506
535
555
609
748
Value and Cost of Production
Milk
Total Cost
Oper. Cost
Receipts
Milk
Production
Per Cow
Per Cwt.
Per Cwt.
(9)
(9)
(9)
$3,303
$ 6.85
$11. 75
3,107
9.20
13.08
3,016
10.18
13.77
2,927
10.75
14.20
2,843
11.14
14.82
1,054
1,089
1,162
1,217
1,354
36
34
32
30
25
15
14
Feed & Crop
Expenses
Per Cow
(9)
$ 655
785
829
888
941
659,232
627,685
587,006
530,645
428,608
Feed & Crop
Expenses Per
Cwt. Milk
(9)
$3.48
4.17
4.50
4.84
5.10
979
1,019
1,085
1,160
1,293
Profitability
Labor &.
Net Farm Income
Without
With
Mgmt. Inc.
Per Oper.
Apprec.
Apprec.
(3)
(3)
(3)
$207,822
$420,314 $341,186
237,008
196,670
89,608
165,693
153,705
61,282
127,779
111,389
42,376
92,999
31,694
104,366
5.44
5.64
6.01
6.32
7.01
Change in
Net Worth
w/Apprec.
(5)
$187,516
102,826
80,200
65,041
46,573
-------------------------------------------------------------------------------2,713
2,644
2,548
2,443
2,169
11.44
11.90
12.42
13.04
14.07
15.22
15.61
15.94
16.51
17.72
85,705
71,032
50,070
35,473
-1,111
74,817
58,137
43,367
31,356
9,388
20,966
15,068
7,425
-5,216
-35,772
*Page number of the participant's PFBS where the factor is located.
35,148
21,132
1,876
-14,390
-58,492
~
•
29
IDENTIFY AND SET GOALS
If businesses are to be successful, they must have direction. Written
goals help provide businesses with an identifiable direction over both the long
and the short term. Goal setting is as important on a dairy farm as it is in
other businesses. Written goals are a tool which farm operators can use to
ensure that the business continues to move in the proper direction.
1.
Goals should be specific.
2.
Goals should be realistic and achievable.
3.
The achievement of the goal should be verifiable.
4.
You should designate a time when each goal will be achieved.
Goal setting on a dairy farm does not have to be a complex process. In
many cases it provides a process for writing down and agreeing on goals that you
have already given some thought to. It is also important to remember that once
you write out your goals they are not cast in concrete. If a change takes place
which has a major impact on the farm business, the goals should be reworked to
accommodate that change. Refer to your goals as often as necessary to keep the
farm business progressing.
It is important to identify both long and short range goals when looking
at the future of your farm business.
A suggested format for writing out your goals is as follows:
a.
Begin with a general philosophy statement which incorporates both
business and family goals.
b.
Identify 4-6 long range goals.
c.
Identify specific short range goals for a given time period (i.e.,
one year).
Worksheet for Setting Goals
I.
General Philosophy and Objectives
•
30
Worksheet for Setting Goals (continued)
II.
Long Range Goals (require tvo or more years to achieve)
III.
Short Range Goals (possible to achieve in one or tvo years)
What
How
When
NOTE: Once long and short range goals have been identified, it is helpful to
rank them in order of priority.
Prepared by T.R. Maloney, Extension Associate, Cornell University
Summarize Your Business Performance
The Farm Business and Financial Analysis Charts on pages 19-22 and 25-28
can be used to help identify strengths and weaknesses of your farm business.
Identify three major strengths and three areas of your farm business that need
improvement.
Strengths:
Need Improvement:
_
.,
.
31
GLOSSARY AND LOCATION OF COMMON TERHS
Accounts Payable - Open accounts or bills owed to feed and supply firms, cattle
dealers, veterinarians and other providers of farm services and supplies.
Accounts Receivable - Outstanding receipts from items sold or sales proceeds not
yet received such as the payment for December milk sales received in
January.
Accrual Expenses - (defined on page 3)
Accrual Receipts - (defined on page 4)
Annual Cash Flow Statement - (defined on page 10)
Appreciation - (defined on page 5)
Balance Sheet - A "snapshot" of the business financial position at a given point
in time, usually December 31. The balance sheet equates the value of
assets to liabilities plus net worth.
Capital Efficiency - The amount of capital invested per production unit.
Relatively high investments per worker with low to moderate investments
per cow imply efficient use of capital.
Capital Turnover. Years - The number of years required for total farm income to
equal total farm assets, calculated by dividing average total farm assets
by total accrual operating receipts plus appreciation.
Cash From Nonfarm Capital Used in the Business - Transfers of money from nonfarm
savings or investments to the farm business where it is used to pay
operating expenses, make debt payments and/or capital purchases.
Cash Flow Coverage Ratio - (defined on page 11)
Cash Paid - (defined on page 2)
Cash Receipts - (defined on page 4)
Change in Accounts Payable - (defined on page 3)
Change in ACCounts Receivable - (defined on page 4)
Change in Inventory - (defined on page 2)
Dairy (farm) - A farm business where dairy farming is the primary enterprise,
operating and managing this farm is a full-time occupation for one or more
people and cropland is owned.
•
Dairy Cash-Crop (farm) - Operating and managing this farm is the full-time
occupation of one or more people, cropland is owned but crop sales exceed
10 percent of accrual milk receipts .
Debt Per Coy - Total end-of-year debt divided by end-of-year number of cows.
Debt to Asset Ratios - (defined on page 9)
•
32
Dry Hatter - The amount or proportion of dry material that remains after all
water is removed. Commonly used to measure dry matter percent and tons of
dry matter in feed.
Equity Capital - The farm operator/manager's owned capital or farm net worth.
Expansion Livestock - Purchased dairy cattle and other livestock that cause an
increase in herd size from the beginning to the end of the year.
Farm Debt Payments as Percent of Milk Sales - Amount of milk income committed to
debt repayment, calculated by dividing planned debt payments by total milk
receipts.
Farm Debt Payments Per Cow - Planned or scheduled debt payments per cow
represent the repayment plan scheduled at the beginning of the year
divided by the average number of cows for the year. This measure of
repayment ability is used in the Financial Analysis Chart.
Financial Lease - A long-term non-cancellable contract giving the lessee use of
an asset in exchange for a series of lease payments. The term of a
financial lease usually covers a major portion of the economic life of the
asset. The lease is a substitute for purchase. The lessor retains
ownership of the asset.
Income Statement - A complete and accurate account of farm business receipts and
expenses used to measure profitability over a period of time such as one
year or one month.
Labor and Management Income - (defined on page 6)
Labor and Management Income Per Operator - The return to the owner/manager's
labor and management per full-time operator.
Labor Efficiency - Production capacity and output per worker.
Liquidity - Ability of business to generate cash to make debt payments or to
convert assets to cash.
Net Farm Income - (defined on page 5)
Net Worth - The value of assets less liabilities equal net worth.
equity the owner has in owned assets.
It is the
Operating Costs of Producing Milk - (defined on page 16)
Opportunity Cost • The cost or charge made for using a resource based on its
value in its most likely alternative use. The opportunity cost of a
farmer's labor and management is the value he/she would receive if
employed in his/her most qualified alternative position.
Other Livestock Expenses - All other dairy herd and livestock expenses not
included in more specific categories. Other livestock expenses include;
bedding, DHIC, milk house and parlor supplies, livestock board,
registration fees and transfers.
Part-Time Cash-Crop Dairy (farm) • Operating and managing this farm is not a
full-time occupation, crop sales exceed 10 percent of accrual milk
receipts and cropland is owned.
33
Part-Time Dairy (farm) - Dairy farming is the primary enterprise, cropland is
owned but operating and managing this farm is not a full-time occupation
for one or more people.
Personal Withdrawals and Family Expenditure, Includins Nonfarm Debt Payments ­
All the money removed from the farm business for personal or nonfarm use
including family living expenses, health and life insurance, income taxes,
nonfarm debt payments, and investments.
Profitability - The return or net income the owner/manager receives for using
one or more of his or her resources in the farm business. True "economic
profit" is what remains after deducting all costs including the
opportunity costs of the owner/manager's labor, management, and equity
capital.
Repayment Analysis - An evaluation of the business' ability to make planned debt
payments.
Replacement Livestock - Dairy cattle and other livestock purchased to replace
those that were culled or sold from the herd during the year.
Return on Equity Capital - (defined on page 7)
Return on Total Capital - (defined on page 7)
RetUrn to Operators' Labor. Management. and Equity Capital - (defined on page 6)
Solvency - The extent or ability of assets to cover or pay liabilities.
Debt/asset and leverage ratios are common measures of solvency.
Total Costs of Producins Kilk - (defined on page 16)
Whole Farm Kethod - A procedure
dairy farms without using
are assigned a cost equal
expenses to determine the
used to calculate costs of producing milk on
enterprise cost accounts. All non-milk receipts
to their sale value and deducted from total farm
costs of producing milk.
•
34
INDEX
Page(s)
Accounts Payable
.
3,8
Accounts Receivable
.
4,8
Accrual Expenses
.
3,5
Accrual Receipts
.
4,5
Acreage
.
13
Advanced Government
.
Receipts
7,8
Age
.
17
Amount Available
.
for Debt Service
11
Annual Cash Flow
10
Statement
.
. 5,9,15
Appreciation
Balance Sheet
.
8
Barn Type
.
2
Business Type
.
2
Capital Efficiency .. '"
.
17
Capital Turnover, Years
17
Cash From Nonfarm
Capital Used in
the Business
.
10
Cash Flow Coverage Ratio
.
11
Cash Paid
.
2
Cash Receipts
.
4,10
Change in Accounts
Payable
.
3
Change in Accounts
Receivable.
4
Change in Inventory....
2,3
Change in Net Worth
9
Crop Expenses
3,14
Crop/Dairy Ratios
13
2
Dairy (farm) .
2
Dairy Cash-Crop (farm)
9
Debt Per Cow
9
Debt to Asset Ratios
Depreciation
3,9
Dry Matter
13
17
Education
8
Equity Capital....
Expansion Livestock
3,10
Expenses
3
Farm Business Chart
19,20,
.............
21,25,
......................
. 26,27,28
Farm Debt Payments
as Percent of
Milk Sales
.
11
Farm Debt Payments
Per Cow
.
11
Financial Analysis Chart
Financial Lease
Income Statement
Inflows
Labor and Management
Income
Labor and Management
Income Per Operator
Labor Efficiency
Land Resources
Liquidity
Lost Capital
Machinery Expenses
Milking Frequency
Milk Production
Milking System
Money Borrowed
Net Farm Income
Net Investment
Net Worth
Number of Cows
Operating Costs of
Producing Milk
Opportunity Cost
Other Livestock Expenses
Outflows
Part-Time Cash-Crop
Dairy (farm)
Part-Time Dairy (farm)
Personal Withdrawals and
Family Expenditures
Including Nonfarm
Debt Payments
Principal Payments
Profitability
Receipts
Record System
Repayment Analysis
Replacement Livestock
Return on Equity Capital
Return on Total Capital
Return to Operator's
Labor, Management,
and Equity Capital
Solvency
Total Costs of
Producing Milk
Whole Farm Method
Worker Equivalent
Yields Per Acre
22
.
.
.
2
10
.
6
.
.
.
.
.
.
.
.
.
.
.
.
,
.
8
6
17
13
9
9
3,14
2
15
2
10
5
9
8
15
16
.
.
.
.
10
.
,
2
2
.
,
.
.
,
.
.
.
10
10
4
4
2
11
3
7
7
.
.
6
9
.
,
.
.
16
16
17
13
6
3
I
.
,I
I
OTHER AGRICULTURAL ECONOMICS EXTENSION PUBLICATIONS
•
No. 91-34
Issues in the Development and
Marketing of Reduced Chemical
Agricultural Products: A Look at
Disease-Resistant Apple Cultivars
Cecile Murphy
Lois Schertz Willett
No. 92-01
Economics of Integrated Pest
Management Practices for Insects in
Grape Production
Darwin P. Snyder
Timothy H. Weigle
Gerald B. White
No. 92-02
Economics of Integrated Crop
Management for Field Crops, New
York state, 1991.
Darwin P. Snyder
J. Keith Waldron
Donald R. Specker
No. 92-03
Micro DFBS: A Guide to processing
Dairy Farm Business Summaries in
County and Regional Extension
Offices for Micro DFBS v 2.6
Linda D. Putnam
Wayne A. Knoblauch
Stuart F. Smith
No. 92-04
Motivation: Improving Business
Performance Through People
Thomas R. Maloney
Robert A. Milligan
Jonas B.
Kauffman, III
No. 92-05
The Changing Landscape of New York
Agriculture in the Twentieth
century
B. F. Stanton
No. 92-06
Dairy Farm Business Summary
Western Plain Region 1991
Stuart F. Smith
Linda D. Putnam
George Allhusen
Jason Karszes
David Thorp
No. 92-07
Dairy Farm Business Summary
Northern New York 1991
Stuart F. Smith
Linda D. Putnam
Patricia A. Beyer
J. Russell Coombe
Anita W. Deming
LouAnne F. King
George o. Yarnall
•