Cost of Production - Worksheets
Worksheet 1 - Determining Your Basic Costs
Worksheet 1a: Schedule F & Balance Sheet Figures To Determine Basic Costs
Projections
This Year
1
2
3
4
5
6
7
8
Last
Year
2 Years
Ago
3 Years
Ago
Total Schedule F Expenses
Change in Accounts Payable
Change in Prepaid Expenses
Total Livestock Expenses
Total Interest Paid
Wages and Benefits Paid
Depreciation Claimed
Basic Cost of Production
(Line 1 + line 2 - lines 3, 4, 5, 6, 7)
Worksheet 1B: Calculation of Adjusted Basic
Crop Production Costs
Basic Costs =
a
Corn
Soybeans
Hay
Winter Wheat
Peas
Snapbeans
Sweet Corn
TOTALS
Acres of
Crops in
Rotation
b
Percent of
Each Crop
in Rotation
c
Crop Acres
Times
Costs Below
d
Percent of
Total Cost
by Crop
e
Costs
For Each
Crop
f
Cost
Per Acre
g
Yield
Cost Per
Estimate
Unit of
Next Year
Yield
h
Worksheet 1C: Crop Budget Figures To Use In Above Calculations To Estimate Production Costs
Central WI
Southern WI WI Dairy Farm
Barley
Corn
Corn Silage
Hay
Hay - Baled
Haylage
HMSC
Oats
Peas
Snapbeans
Soybeans
Sweet Corn
Winter Wheat
Grain Marketing
Page 1
Cost of Production - Worksheets
Worksheet 2A: Estimating, Prioritizing, and Determining Price Targets
To Meet Production, Business and Family Goals
1
2
3
4
Total Projected Crop Production:
Crop 1
Crop 2
Crop 3
Crop 4
Cost or Goal
Acres
Basic financial
costs & goals to
be achieved
Yield
Crop 1 = Corn
Amount this
crop should
contribute
Total Yield
Price per
unit of yield
needed
Priority
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Cost of Production
Basic Costs
Interest
Wages & Benefits
Farm Business & Family Goals
Term Debt Service
Family Living Draw
Added Family Living Draw
Tractor Replacement
Field Cultivator
Grain Storage Bin
Winter Vacation
College Fund
Replace Pickup Truck
Savings
Savings
Price To Meet All Goals
Grain Marketing
Page 2
Cost of Production - Worksheets
Worksheet 2B: Estimating, Prioritizing, and Determining Price Targets
To Meet Production, Business and Family Goals
1
2
3
4
Total Projected Crop Production:
Crop 1
Crop 2
Crop 3
Crop 4
Cost or Goal
Acres
Yield
Crop 2 = Soybeans
Basic financial
Amount this
costs & goals to
crop should
be achieved
contribute
Total Yield
Price per
unit of yield
needed
Priority
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Cost of Production
Basic Costs
Interest
Wages & Benefits
Farm Business & Family Goals
Term Debt Service
Minimum Family Living Draw
Added Family Living Draw
Tractor Replacement
Field Cultivator
Grain Storage Bin
Winter Vacation
College Fund
Replace Pickup Truck
Savings
Savings
Price To Meet All Goals
Grain Marketing
Page 3
Cost of Production - Worksheets
Worksheet 2C: Estimating, Prioritizing, and Determining Price Targets
To Meet Production, Business and Family Goals
1
2
3
4
Total Projected Crop Production:
Crop 1
Crop 2
Crop 3
Crop 4
Cost or Goal
Acres
Basic financial
costs & goals to
be achieved
Yield
Crop 3 = Hay
Amount this
crop should
contribute
Total Yield
Price per
unit of yield
needed
Priority
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Cost of Production
Basic Costs
Interest
Wages & Benefits
Farm Business & Family Goals
Term Debt Service
Minimum Family Living Draw
Added Family Living Draw
Tractor Replacement
Field Cultivator
Grain Storage Bin
Winter Vacation
College Fund
Replace Pickup Truck
Savings
Savings
Price To Meet All Goals
Grain Marketing
Page 4
Cost of Production - Worksheets
Worksheet 2D: Estimating, Prioritizing, and Determining Price Targets
To Meet Production, Business and Family Goals
Total Projected Crop Production:
Crop 1
Crop 2
Crop 3
Cost or Goal
Priority
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Acres
Basic financial
costs & goals to
be achieved
Yield
Crop 4 =
Amount this
crop should
contribute
0.00%
Yield
Price per
unit of yield
needed
Cost of Production
Basic Costs
Interest
Wages & Benefits
Farm Business & Family Goals
Term Debt Service
Minimum Family Living Draw
Added Family Living Draw
Tractor Replacement
Field Cultivator
Grain Storage Bin
Winter Vacation
College Fund
Replace Pickup Truck
Savings
Savings
Price To Meet All Goals
Grain Marketing
Page 5
Cost of Production - Worksheets
Worksheet 3 - Summary of Cumulative Crop Price
Needs To Meet Target
Acres
Cumulative Acres
Yield
Total Yield
Crop 1
Crop 2
Crop 3
Basic financial
costs & goals to
be achieved
Cost or Goal
Priority
Cumulative
Costs & Goals
to be Achieved
Crop 1=
Crop 2=
Crop 3=
Cumulative
Cumulative
Cumulative
Price Needed Price Needed Price Needed
For Crop to
For Crop to
For Crop to
Pay its Share Pay its Share Pay its Share
Cost of Production
Basic Costs
Interest
Wages & Benefits
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Farm Business & Family Goals
Term Debt Service
Minimum Family Living Draw
Added Family Living Draw
Tractor Replacement
Field Cultivator
Grain Storage Bin
Winter Vacation
College Fund
Replace Pickup Truck
Savings
Savings
Worksheet 4 - Able Farm - Final Target Prices
Line
Category of
Costs/Goals
1
Drop Dead
(Losses Incurred)
Red Ribbon Price
(Breakeven +)
Blue Ribbon Price
(Successful)
Purple Ribbon)
(Above Expectations)
Grand Champion
(Exceptional Market)
3
7
13
14
Cumulative Total Total Dollars Needed
Dollars Needed
Needed Per
To Pay For
Quarter To Pay
Each Category
for Each Category
Grain Marketing
Crop 1 =
Crop 2 =
Crop 3 =
Target Price of
Target Price of
Target Price of
Corn to Pay
Beans to Pay
Hay to Pay
for this Category for this Category for Each Category
Page 6
Cost of Production - Worksheets
Able Farm
Balance Sheet
Assets
1/1/2003
1/1/2002
1/1/2001
1/1/2000
Current Assets
Cash & Checking Balance
Prepaid Expenses
Growing Crops
Accounts Receivable
Hedging Accounts
Crop Inventory
Market Livestock
Total Current Assets
$20,000
$48,400
$14,500
$42,900
$35,200
$37,900
$26,500
$25,400
$3,750
$20,000
$42,974
$0
$135,124
$0
$4,500
$22,500
$0
$84,400
$6,300
$6,520
$38,600
$0
$124,520
$2,150
$40,500
$64,500
$0
$159,050
Breeding Livestock
Farm Machinery & Equipment
Other Int. Assets
Total Intermediate Assets
$0
$350,000
$30,200
$380,200
$0
$320,500
$24,650
$345,150
$0
$310,500
$25,660
$336,160
$0
$302,000
$28,960
$330,960
Land - 1320 Acres
Buildings
Other Long Term, Assets
Total Long Term Assests
$1,320,000
$251,000
$0
$1,571,000
$1,320,000
$251,000
$0
$1,571,000
$1,320,000
$251,000
$0
$1,571,000
$1,320,000
$251,000
$0
$1,571,000
$1,841,248
$1,739,800
$1,820,040
$1,889,100
1/1/2003
1/1/2002
1/1/2001
1/1/2000
Intermediate Assets
Long Term Farm Assets
Total Farm Assets
Liabilities
Current Farm Liabilities
Accrued Farm Interest
Farm Accounts Payable
Operating Loans
Pricipal Due In 12 Months
Real Estate Taxes Due
Total Current Liabilities
$2,500
$4,700
$11,500
$43,500
$17,000
$79,200
$3,900
$4,700
$0
$36,600
$18,200
$63,400
$5,200
$1,500
$0
$30,150
$18,650
$55,500
$6,800
$0
$4,500
$27,800
$1,900
$41,000
Machinery Loan
Other Int. Loans
Total Intermediate Liabilities
$175,000
$23,000
$198,000
$194,716
$28,480
$223,196
$210,325
$32,995
$243,320
$225,934
$37,157
$263,091
Real Estate Mortgages
Other Long Term Liabilities
Total Long Term Liabilities
$250,000
$0
$250,000
$261,403
$0
$261,403
$270,797
$0
$270,797
$279,458
$0
$279,458
Total Farm Liabilities
$527,200
$547,999
$569,617
$583,549
Total Farm Assets
$1,841,248
$1,739,800
$1,820,040
$1,889,100
Farm Net Worth
$1,314,048
$1,191,801
$1,250,423
$1,305,551
Intermediate Farm Liabilities
Long Term Farm Liabilities
Grain Marketing
Page 7
Cost of Production - Worksheets
Able Farm Information
Balance Sheet Summary
Balance Sheet Items
Changes in Accounts Payable
Changes in Prepaid Expenses
Dec. 31
This
Past
Year
$0
$5,500
Dec. 31
Two
Years
Ago
$3,200
$10,500
Dec. 31
Three
Years
Ago
Dec. 31
Four
Years
Ago
$1,500
$12,500
$180
$9,250
2000
$1.67
$4.29
$65.00
1999
$1.76
$4.30
$65.00
Crop Price History
Average Prices Received:
Corn
Soybeans
Hay
Grain Marketing
2002
$1.65
$4.10
$70.00
2001
$1.78
$4.60
$65.00
Page 8
Cost of Production - Worksheets
Able Farm Information
Balance Sheet Summary, Continued
Schedule F History
Income
Crop Income
Ag Program Payments
Other Income
Total Income
2002
2001
2000
1999
$585,400
$64,960
$15,750
$666,110
$593,500
$68,500
$14,300
$676,300
$562,840
$69,400
$21,100
$653,340
$601,220
$39,000
$26,510
$666,730
$2,000
$75,000
$3,000
$30,000
$7,500
$98,500
$8,000
$42,000
$20,000
$41,500
$33,000
$55,500
$44,500
$50,000
$4,500
$10,000
$17,000
$6,500
$6,500
$500
$6,000
$1,800
$72,300
$5,800
$31,500
$6,800
$82,600
$9,200
$37,600
$18,500
$48,640
$26,500
$32,100
$51,699
$48,500
$359
$8,500
$16,420
$4,300
$7,100
$250
$7,900
$1,275
$68,200
$0
$34,000
$3,400
$76,500
$7,100
$36,250
$19,450
$53,120
$21,550
$48,220
$52,100
$53,000
$6,200
$11,250
$16,000
$5,200
$3,200
$1,450
$7,600
$1,920
$69,550
$18,000
$36,200
$4,600
$87,000
$8,650
$38,620
$23,000
$59,500
$28,100
$51,000
$46,000
$52,100
$7,100
$13,075
$15,340
$6,600
$4,200
$250
$8,300
$561,500
$518,368
$525,065
$579,105
Expenses
Car & Truck
Chemicals
Conservation Expenses
Depreciation
Employee Program Benefits
Ferrtilizers & Lime
Freight & Trucking
Gasoline, Fuel & Oil
Insurance
Interest
Labor Hired
Rental & Leases
Repairs & Maintenance
Seeds Plants
Storage & Warehousing
Supplies Purchased
Taxes
Utilities
Office Expense
Legal & Professional Fees
Marketing Expenses
Total
Grain Marketing
Page 9