HAYIN BEEF ACRES FINANCIALS
HAYIN BEEF ACRES
BUSINESS PLAN
WORKSHEETS
1. Marketing Budget
2. Production Plan 2014
3. Balance Sheet 2013
4. Projected Equipment Purchasing Schedule
5. Inventory Adjusted Income Statement 2013
6. Cash Flow
7. Fixed Cost Spreadsheet
8. Enterprise Budget: Hay
9. Enterprise Budget: Alfalfa
10. Enterprise Budget: Beef
Shannon Dill, Ben Beale and Kristen Morgan
University of Maryland Extension
*Disclaimer: The information contained in this case study is to be used only as a case study example for teaching
purposes. The information in the case study is both factual and fictional. Opinions formulated by the author are
intended for educational purposes.
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
Marketing Budget
Category
Research
Research hired
Web research
Research publications purchased
Research Costs Total
Communications
Promotional brochures
Radio/Television
Web design/maintenance
Communications Costs Total
Networking
Memberships/Affiliations
Events
Subscriptions
Networking Costs Total
Promotions
Product giveaways
Product discounts
Special offers
Promotions Costs Total
Advertising
Brochures (development/production)
Logos/Labels
Signage
Farmers Market Fees
Farmers Market Display Items
Newspapers
Advertising Costs Total
Public Relations
Charity events
Advertising
Employee promotions
Sponsorships
Public Relations Costs Total
Distribution
Shipping
Transportation Fuel/Lube
Distribution Costs Total
MARKETING TOTAL
2014
2015
2016
Notes
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00 in house
$0.00 in house
$0.00
$0.00
$400.00
$0.00
$250.00
$650.00
$400.00
$0.00
$100.00
$500.00
$400.00 cost of printing
$0.00
$100.00 cost of domain, software
$500.00
$130.00
$400.00
$150.00
$680.00
$130.00
$400.00
$150.00
$680.00
$130.00 Farm Bureau, MD Dir. Mk
$400.00
$150.00
$680.00
$200.00
$0.00
$0.00
$200.00
$200.00
$0.00
$0.00
$200.00
$200.00 Samples to buyers
$0.00
$0.00
$200.00
$500.00
$750.00
$1,200.00
$250.00
$300.00
$0.00
$3,000.00
$200.00
$750.00
$200.00
$250.00
$150.00
$0.00
$1,550.00
$200.00
$0.00
$0.00
$100.00
$300.00
$200.00
$0.00
$0.00
$100.00
$300.00
$1,000.00
$2,700.00
$3,700.00
$1,000.00
$3,000.00
$4,000.00
$1,000.00
$3,200.00 42 weeks of the year
$4,200.00
$8,530.00
$7,230.00
$7,430.00
$200.00
$750.00
$200.00
$250.00
$150.00
$0.00
$1,550.00
Printing expenses
3 size options
Saturday and Wed Market
Tent, tables, decorations
$200.00 Donate gift certificates
$0.00
$0.00
$100.00 County Fair
$300.00
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
Production Plan
Month
Production
Financial
Marketing
Management
2014
JANUARY
Attend forage and beef Prepare year end
workshops
financial statements
Hay Sales as needed
Care and maintain
cattle. Special caution
for winter weather
Beef Sales as requested
Gather information for
taxes
No seasonal workers
Visit with restaurants
and attend winter
markets
Prepare for caving
FEBRUARY
Begin calving season
Send finished steers to
butcher
Care and maintain cattle
Meet with accountant
Make decision on this
year's line of credit
Hay sales as needed
Beef sales as requested
Follow up or continue
visits with restaurants
MARCH
Advertise for seasonal
workers
Finishing calving season
Spread fertilizer and
overseed hay fields
Hay sales as needed
Care and maintain cattle
Begin market season
Full grazing schedule
rotating and managing
pastures
Scout pastures, weed
control if needed
Hay sales as needed
Care and maintain cattle
Begin market season
Full grazing schedule
rotating and managing
pastures
Hay sales as needed
Care and maintain cattle
Beef sales as requested
Beef sale as requested
APRIL
Beef sales as requested
MAY
Hire seasonal workers
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
Production Plan
Month
Production
Financial
Marketing
Management
Prepare for hay harvest
Continue at markets
Full grazing schedule
rotating and managing
pastures
Hay sales as needed
Care and maintain cattle
Beef sales as requested
JUNE
Begin breeding schedule
and planning weaning
schedule
First cutting of hay
Continue at markets
JULY
Full grazing schedule
rotating and managing
pastures
Hay sales as needed
Care and maintain cattle
Second cutting of hay
Beef sales as requested
Continue at markets
Full grazing schedule
rotating and managing
pastures
Hay sales as needed
AUGUST
Care and maintain cattle
Beef sales as requested
Continue at markets
SEPTEMBER
Full grazing schedule
rotating and managing
pastures
Hay sales as needed
Care and maintain cattle
Third cutting of hay
Beef sales as requested
Continue at markets
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
Production Plan
Month
Production
Financial
Marketing
Management
Winter fertilizer of hay
and pasture fields.
Overseeding or
renovating if necessary
Cull cows
OCTOBER
Full grazing schedule
rotating and managing
pastures
Hay sales as needed
Wean Calves
Beef sales as requested
Care and maintain cattle
Continue at markets
Seasonal workers end
Clean field equipment
and winterize
NOVEMBER
Meet with accountant
for end of year tax
Grazing and hay feeding planning
Hay sales as needed
Care and maintain cattle
Beef sales as requested
Grazing and hay feeding
Hay sales as needed
Care and maintain cattle
Beef sales as requested
DECEMBER
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
BALANCE SHEET
ASSETS
Current Farm Assets
Cash, checking, savings
Prepaid expenses & supplies
Accounts receivable
Crops held for sale or feed
Orchard Grass Hay
Round Bales
Square Bales
Alfalfa Hay
Round Bales
Square Bales
Orchard Grass/Alfalfa Mix Hay
Square Bales
Round Bales
Livestock held for sale
Cows
Bulls
Culls
Stored Meat Inventory
Total current farm assets
Intermediate Farm Assets
Breeding livestock
Cows
Bulls
Heifers
Feeders
Machinery and Equipment
Other intermediate assets
Total intermediate assets
Long-term Farm Assets
Home Farm and buildings
Smith Property
Other long-term assets
Total long-term farm assets
Total farm assets
Nonfarm assets
Car
Household items
Cash value of life insurance
Total nonfarm assets
Total assets
Hayin Beef Acres
Quantity
150
200
90
200
200
240
Quantity
7
0
6
Date Prepared
LIABILITIES AND NET WORTH
Value
Current Farm Liabilities
$8,000.00 Accounts payable and accrued expenses
$0.00
Accrued interest - operating
Accrued interest - machinery
Accrued interest - mortgage
$12,000.00 Current farm notes payable
$1,400.00 Operating loan
$7,200.00 Intermediate and long-term principal
$1,400.00 due within 12 months
Machinery Loan
$1,000.00 Farm Mortgage
$19,200.00 Other current farm Liabilities
Contingency income tax
$5,950.00 Total current farm liabilities
$0.00 Intermediate Farm Liabilities
$7,200.00 Machinery and Equipment Loan
$63,350.00
Total intermediate farm liabilities
Long-term Farm Liabilities
Mortgage - Home Farm
Mortgage - Smith Property
Total long-term farm liabilities
Total farm liabilities
Nonfarm liabilities
Car Loan
Quantity Value
32
$27,200.00
1
$4,800.00
5
$6,500.00
17
$9,500.00
$159,900.00 Total nonfarm liabilities
Total liabilities
$207,900.00 Net Worth
01/01/14
Value
$0.00
$1,100.00
$19,000.00
$6,000.00
$35,000.00
$61,100.00
$26,749.00
$26,749.00
$225,000.00
$275,000.00
$500,000.00
$587,849.00
$5,000.00
$5,000.00
$592,849.00
$495,401.00
$425,000.00
$350,000.00
$775,000.00
$1,046,250.00
$10,000.00
$12,000.00
$15,000.00
$5,000.00
$42,000.00
$1,088,250.00
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
Equipment Inventory
Equipment
Model
Description
Tractor*
8225R
225hp
*Attachments Included
8 x 20 5th
Wheel
Trailer
Flat Bed
10 Ton
Bumper
Trailer
Flat Bed
Year
Purchased Age Condition Owner
2009
5 Good
Payment
2007
7 Good
2008
6 Good
2006
8 Fair
John Deere
Sitrex
John Deere
Baler Square 348
New
Holland
Baler Round BR7070
2006
2012
8 Good
2 Good
Paid In
Full
Paid In
Full
Paid In
Full
Paid In
Full
Payment
2009
5 Good
Payment
2008
6 Good
Fertilizer
2009
5 Good
Trailer
Livestock
5th Wheel
Bush Hog
Hay Rake
Truck
Truck
Seeder
Walkin
Freezer
Chest
Freezer
Frontier
Single Cab
GMC 4WD Long Bed
Quad Cab,
GMC 4WD Short Bed
RENT
Walk in
Crown/
cooler
Tonka
w/refrid.
Summit
Chest Freezer
2001
2012
13 Fair
2 Good
2011
5 Good
2008
7 Good
Paid In
Full
Paid In
Full
Paid In
Full
Payment
Paid In
Full
Paid In
Full
Purchase
Price
$135,000.00
Market
Yearly
Value
Payment
$85,000.00 $7,200.00
$8,000.00
$2,000.00
$0.00
$6,000.00
$1,000.00
$0.00
$19,500.00
$5,000.00
$0.00
$5,000.00
$16,000.00
$1,000.00
$11,000.00
$0.00
$4,200.00
$21,000.00
$14,000.00
$5,400.00
$23,000.00
$8,000.00
$0.00
$8,500.00
$4,000.00
$0.00
$15,000.00
$3,500.00
$0.00
$42,000.00
$22,000.00
$7,800.00
$4,800.00
$2,500.00
$0.00
$1,900.00
$900.00
$0.00
$305,700.00 $159,900.00 $24,600.00
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
Inventory Adjusted Income Statement
Cash Farm Income
Crop sales
Orchard Grass
Alfalfa Hay
Beef Sales
Breeding Sales
Cull Sales
Period covered
Cash Farm Expenses
80
47
550
Government payments
CREP/EQIP
Other farm income
Total cash farm income
January 1 - December 31, 2013
$16,800.00
$13,066.67
$25,712.50
$1,950.00
$7,200.00
Hay: Production Supplies
Beef: Production Supplies
Other Prodution Supplies
Insurance
Labor hired
Repairs and maintenance
Taxes
$2,600.00 Utilities
Marketing
Other Farm Expenses
$8,016.00
$14,663.40
$2,500.00
$3,600.00
$11,250.00
$6,000.00
$2,000.00
$1,050.00
$8,530.00
$2,500.00
$60,109.40
$7,219.77
$67,329.17 Total cash operating expense
Net cash farm income
Inventory change
Crops &
feed
$11,946.00
$8,450.00
$3,496.00
Market
Livestock
$19,465.00
$12,064.00
$7,401.00
Ending inventory
Beginning inventory
Inventory change
Net operating profit
Depreciation and Other Capital Adjustments
Breeding
Machinery
Livestock Equipment
Ending inventory
32,336.00
Capital sales
0.00
Ending inv & sales
32,336.00
Beginning inventory
19,000.00
Capital Purchases
18,250.00
Beg inv. & purchases
37,250.00
Depre. & cap adjust.
-4,914.00
Profit or Loss
Receivables
Supplies
-
Buildings
Improvements
12,000.00
0.00
12,000.00
12,000.00
0.00
12,000.00
0.00
$1,500.00
$1,500.00
-
Payables
(beg - end)
-
$10,897.00
$18,116.77
Other
-
-
-$4,914.00
$13,202.77
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
Cash Flow Budget
Name>
Hayin Beef Acres
2014
2015
2016
2017
Last year
Total
Cash inflow
Beginning cash balance
Hay Sales
Beef Sales
Livestock Sales
Other farm income:CREP
Capital sales
Off farm receipts
Total cash inflow
$8,500.00
$79,400.00
$25,712.50
$9,150.00
$2,600.00
$0.00
$45,000.00
$170,362.50
$28,153.10
$80,988.00
$26,226.75
$9,607.50
$2,600.00
$0.00
$45,000.00
$192,575.35
$66,770.95
$82,607.76
$26,751.29
$10,087.88
$2,600.00
$0.00
$46,000.00
$234,817.87
$106,624.75
$84,259.92
$27,286.31
$10,592.27
$2,600.00
$0.00
$47,000.00
$278,363.24
$155,100.47
$85,945.11
$27,832.04
$11,121.88
$2,600.00
$0.00
$47,500.00
$330,099.50
$203,823.59
$333,800.79
$133,808.88
$41,409.53
$10,400.00
$0.00
$230,500.00
$953,742.78
$8,016.00
$14,663.40
$3,600.00
$11,250.00
$6,000.00
$2,000.00
$1,050.00
$8,530.00
$2,500.00
$0.00
$25,000.00
$24,600.00
$35,000.00
$142,209.40
$8,016.00
$14,663.40
$3,780.00
$11,812.50
$6,300.00
$2,100.00
$1,102.50
$7,230.00
$3,000.00
$0.00
$25,000.00
$7,800.00
$35,000.00
$125,804.40
$8,416.80
$15,396.57
$3,969.00
$12,403.13
$6,615.00
$2,205.00
$1,157.63
$7,230.00
$3,000.00
$0.00
$25,000.00
$7,800.00
$35,000.00
$128,193.12
$8,837.64
$16,166.40
$4,167.45
$13,023.28
$6,945.75
$2,315.25
$1,215.51
$7,591.50
$3,000.00
$0.00
$25,000.00
$0.00
$35,000.00
$123,262.78
$9,279.52
$16,974.72
$4,375.82
$13,674.45
$7,293.04
$2,431.01
$1,276.28
$7,971.08
$3,000.00
$0.00
$25,000.00
$0.00
$35,000.00
$126,275.91
$42,565.96
$77,864.49
$19,892.27
$62,163.35
$33,153.79
$11,051.26
$5,801.91
$38,552.58
$14,500.00
$0.00
$125,000.00
$40,200.00
Cash outflow
Hay: Production Supplies
Beef: Production Supplies
Insurance
Labor hired: Seasonal
Repairs and maintenance
Taxes: Business, Property
Utilities
Marketing
Other farm expenses
Capital purchases
Family living or withdrawals
Term loan payments
Mortgage
Total cash outflow
$470,745.61
Cash flow summary
Inflow minus outflow
$28,153.10
$66,770.95
$106,624.75
$155,100.47
$203,823.59
New borrowing:term
New borrowing:credit line
Credit line payments
Ending cash balance
$28,153.10
$66,770.95
$106,624.75
$155,100.47
$203,823.59
Comments:
All production, income and expenses estimates were derived from the enterprise budgets and fixed cost summary
$482,997.17
$482,997.17
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
Fixed Cost Spreadsheet
Depreciated Equipment Cost
Equipment Item
Equipment
Tractor
Trailer - Flat Bed
Trailer - Flat Bed
Trailer - Livestock
Bush Hog
Hay Rake
Baler Square
Baler Round
Fertilizer Spreader
Truck
Truck
Walk In Freezer
Chest Freezer
Cost
$
$
$
$
$
$
$
$
$
$
$
$
$
135,000.00
7,500.00
6,000.00
5,500.00
6,500.00
16,000.00
22,000.00
21,000.00
10,200.00
12,000.00
45,000.00
4,800.00
1,900.00
25
15
15
15
15
15
15
15
15
10
8
15
15
$
$
$
$
$
$
$
$
$
$
$
$
$
5,400.00
500.00
400.00
366.67
433.33
1,066.67
1,466.67
1,400.00
680.00
1,200.00
5,625.00
320.00
126.67
Buildings
Pole Buildings
Livestock Barn
$
$
45,000.00
55,000.00
40
40
$
$
1,125.00
1,375.00
Total By Enterprise
Total Yearly Equipment
$
$
393,400.00
20,110.00
$
20,110.00
$
Total Fixed Cost
20,110.00
7.0% $
Per Year Charge
1,407.70
$
1,407.70
Interest
Interest on Fixed Cost
Total Interest Payment
Repairs
Equipment
Building
Total Repairs
Per Year Charge
Rate
3500
2500
$
Taxes
Taxes, Tags, License Fees
Total Taxes
Expected Life (years)
6,000.00
2000
$
Insurance
Liability Insurance
Property Insurance
Auto Insurance
2,000.00
800
800
2000
Total Insurance
$
3,600.00
Total Fixed Cost
$
33,117.70
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
Percent Allocated to Each Enterprise
Hay
Depreciated Equipment Cost
Tractor
Trailer - Flat Bed
Trailer - Flat Bed
Trailer - Livestock
Bush Hog
Hay Rake
Baler Square
Baler Round
Fertilizer Spreader
Truck
Truck
Walk In Freezer
Chest Freezer
$
$
$
$
$
$
$
$
$
$
$
4,050.00
500.00
400.00
390.00
1,066.67
1,466.67
1,400.00
612.00
600.00
2,812.50
$
$
$
$
$
$
$
$
$
$
$
$
$
1,350.00
366.67
43.33
68.00
600.00
2,812.50
320.00
126.67
50% $
0% $
562.50
-
50% $
100% $
562.50
1,375.00
Total Yearly Equipment
$
13,860.33
$
6,249.67
Total Interest Payment
69% $
970.22
31% $
437.48
Total Repairs
69% $
4,135.36
31% $
1,864.64
Total Taxes
69% $
1,378.45
31% $
621.55
Total Insurance
69% $
2,481.21
31% $
1,118.79
Total Fixed Cost
$
22,825.58
$
10,292.12
Buildings
Pole Building
Livestock Barn
75%
100%
100%
0%
90%
100%
100%
100%
90%
50%
50%
Beef
25%
0%
0%
100%
10%
0%
0%
0%
10%
50%
50%
100%
100%
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
CROP: Hay
INCOME
Hay
ITEM
VARIABLE/OPERATING COSTS
Seed - Prorated four years
FERTILIZER
N
P
K
PESTICIDES
SOIL TEST
LIME
HIRED LABOR
FUEL
UNIT
QUANTITY
TOTAL/AC
TOTAL Farm
TON
6.00
$185.00
$1,110.00
$44,400.00
POUNDS
1.00
$4.50
$4.50
$180.00
POUNDS
POUNDS
POUNDS
ACRE
ACRE
TON
HOURS
GALLONS
85.00
20.00
50.00
1.00
3.00
0.50
500.00
10.00
$0.42
$0.65
$0.36
$12.50
$6.50
$45.00
$7.50
$4.25
$35.70
$13.00
$18.00
$12.50
$19.50
$22.50
$42.50
$1,428.00
$520.00
$720.00
$500.00
$780.00
$900.00
$3,750.00
$1,700.00
$10.09
$178.29
$403.68
$10,881.68
APR
168.20
INTEREST ON OPERATING CAPITAL
TOTAL VARIABLE COSTS LISTED ABOVE
FIXED/OVERHEAD COSTS (SEE FIXED COST ALLOCATION SUMMARY)
EQUIPMENT DEPRECIATION
FARM
1.00
INTEREST PAYMENT
FARM
1.00
REPAIRS
FARM
1.00
TAXES
FARM
1.00
INSURANCE
FARM
1.00
TOTAL FIXED COST LISTED ABOVE
TOTAL VARIABLE AND FIXED COST
NET INCOME OVER VARIABLE & FIXED COSTS
PRICE
6%
$6,930.17
$485.11
$2,067.68
$689.23
$1,240.61
$6,930.17
$485.11
$2,067.68
$689.23
$1,240.61
$4,482.62
$15,364.30
$29,035.70
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
CROP: Alfalfa
INCOME
Alfalfa
ITEM
VARIABLE/OPERATING COSTS
Seed - Prorated four years
FERTILIZER
N
P
K
PESTICIDES
SOIL TEST
LIME
HIRED LABOR
FUEL
UNIT
QUANTITY
TOTAL/AC
TOTAL/FARM
TON
7.00
$250.00
$1,750.00
$35,000.00
POUNDS
1.00
$7.50
$7.50
$150.00
POUNDS
POUNDS
POUNDS
ACRE
ACRE
TON
0.00
100.00
140.00
1.00
3.00
0.50
$5.75
$0.65
$0.36
$15.00
$6.50
$45.00
$0.00
$65.00
$50.40
$15.00
$19.50
$22.50
$0.00
$1,300.00
$1,008.00
$300.00
$390.00
$450.00
HOURS
GALLONS
500.00
10.00
$7.50
$4.25
$42.50
$3,750.00
$1,700.00
$14.46
$236.86
$289.12
$9,337.12
INTEREST ON OPERATING CAPITAL
APR
222.40
TOTAL VARIABLE COSTS LISTED ABOVE
FIXED/OVERHEAD COSTS (SEE FIXED COST ALLOCATION SUMMARY)
EQUIPMENT DEPRECIATION
FARM
1.00
INTEREST PAYMENT
FARM
1.00
REPAIRS
FARM
1.00
TAXES
FARM
1.00
INSURANCE
FARM
1.00
TOTAL FIXED COST LISTED ABOVE
TOTAL VARIABLE AND FIXED COST
NET INCOME OVER VARIABLE & FIXED COSTS
PRICE
7%
$6,930.17
$485.11
$2,067.68
$689.23
$1,240.61
$6,930.17
$485.11
$2,067.68
$689.23
$1,240.61
$11,412.79
$20,749.91
$14,250.09
Hayin Beef Acres Business Plan
HAYIN BEEF ACRES FINANCIALS
CROP: Beef
ITEM
INCOME
BEEF SALES
BREEDING SALES
CULL SALES
TOTAL INCOME
VARIABLE/OPERATING COSTS
FEED
PASTURE
HAY
FEED
HEALTH
LABOR
TRANSPORTATION
SUPPLIES
UNIT
LBS
COW
LBS
QUANTITY
550.00
1.00
1,200.00
$2.75
$650.00
$0.75
PER COW
$1,512.50
$650.00
$900.00
TOTAL/ HERD
$25,712.50
$1,950.00
$7,200.00
$34,862.50
ACRE
COW
COW
COW
HOUR
COW
COW
TOTAL VARIABLE COSTS LISTED ABOVE
FIXED/OVERHEAD COSTS (SEE FIXED COST ALLOCATION SUMMARY)
EQUIPMENT DEPRECIATION
FARM
INTEREST PAYMENT
FARM
REPAIRS
FARM
TAXES
FARM
INSURANCE
FARM
TOTAL FIXED COST LISTED ABOVE
TOTAL VARIABLE AND FIXED COST
NET INCOME OVER VARIABLE & FIXED COSTS
PRICE
1.00
1.00
1.00
1.00
500.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
$30.00
$120.00
$230.00
$18.46
$7.50
$25.00
$18.50
$6,249.67
$437.48
$1,864.64
$621.55
$1,118.79
$30.00
$120.00
$230.00
$18.46
$25.00
$18.50
$750.00
$6,000.00
$5,750.00
$738.40
$3,750.00
$500.00
$925.00
$441.96
$18,413.40
$6,249.67
$437.48
$1,864.64
$621.55
$1,118.79
$4,042.46
$22,455.86
$12,406.64
Hayin Beef Acres Business Plan