Cost of Production - Worksheets
Worksheet 1: Calculating Basic Costs and Individual
Crop Production Costs
Worksheet 1A: Determination of Basic Cost
Of Production
Schedule F & Balance Sheet Figures To Determine Basic Costs
1 Total Schedule F Expenses
Projections
Last
2 Years
This Year
Year
Ago
$561,500
$518,368
3 Years
Ago
$525,065
$579,105
2 Change in Accounts Payable
$0
$3,200
$1,500
$180
3 Change in Prepaid Expenses
$5,500
$10,500
$12,500
$9,250
4 Total Livestock Expenses
$0
$0
$0
$0
5 Total Interest Paid
$41,500
$48,640
$53,120
$59,500
6 Wages and Benefits Paid
$40,500
$33,300
$24,950
$32,700
7 Depreciation Claimed
$30,000
$31,500
$34,000
$36,200
$444,000
$397,628
$401,995
$441,635
8 Basic Costs of Production
(Line 1 + line 2 - lines 3, 4, 5, 6, 7)
Worksheet 1B: Calculation of Adjusted Basic
Crop Production Costs
Basic Cost =
a
$444,000
Acres of
Percent of
Crop Acres
Percent of
Costs
Cost
Yield
Cost Per
Crops in
Each Crop
Times
Total Cost
For Each
Per Acre
Estimate
Unit of
Rotation
in Rotation
Costs Below
by Crop
Crop
Next Year
Yield
b
c
d
e
f
g
h
Corn
1200
60.00%
$311,700.00
67.7%
$300,707
$250.59
150
Soybeans
700
35.00%
$127,568.00
27.7%
$123,069
$175.81
50
$3.52
Hay
100
5.00%
$20,963.00
4.6%
$20,224
$202.24
5
$40.45
Winter Wheat
0.0%
$0
Peas
0.0%
$0
Snapbeans
0.0%
$0
Sweet Corn
0.0%
$0
100.0%
$444,000
TOTALS
2000
100.00%
$460,231.00
$1.67
Crop Budget Figures To Use In Above Calculations To Estimate Production Costs
(See the Appendix for Crop Budget Details)
Central WI
Southern WI
Barley
Corn
$180.72
$233.75
$259.75
$179.93
$209.63
Corn Silage
Hay
$239.45
$186.96
Hay - Baled
$206.48
Haylage
$178.93
HMSC
$207.43
Oats
Grain Marketing
WI Dairy Farm
$179.33
Peas
$181.02
$203.02
Snapbeans
$263.11
$285.11
Soybeans
$168.73
$182.24
Sweet Corn
$169.68
$191.68
Winter Wheat
$131.27
$153.27
$148.23
Page 1
Cost of Production - Worksheets
Worksheet 2A: Estimating, Prioritizing, and Determining Price Targets
To Meet Production, Business and Family Goals
Total Projected Crop Production:
Acres
Yield
Total Yeild
Crop 1
Crop 2
Crop 3
Crop 4
1,200
700
100
0
150
50
5
180,000
35,000
500
Crop 1 = Corn
Cost or Goal
Basic financial
Amount this
Price per
costs & goals to
crop should
unit of yield
be achieved
contribute
needed
Priority
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
67.73%
Cost of Production
Basic Costs
Interest
Wages & Benefits
$444,000
$41,500
$40,500
$300,707
$28,107
$27,429
$1.67
$0.16
$0.15
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
$32,000
$18,000
$12,000
$8,500
$9,500
$18,000
$3,500
$2,500
$5,500
$5,000
$5,000
$21,673
$12,191
$8,127
$5,757
$6,434
$12,191
$2,370
$1,693
$3,725
$3,386
$3,386
$0.12
$0.07
$0.05
$0.03
$0.04
$0.07
$0.01
$0.01
$0.02
$0.02
$0.02
$645,500
$437,177
$2.43
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
Total Projected Crop Production:
Acres
Yield
Total Yeild
Crop 1
Crop 2
Crop 3
Crop 4
1,200
700
100
0
150
50
5
180,000
35,000
500
Crop 2 = Soybeans
Cost or Goal
Basic financial
Amount this
Price per
costs & goals to
crop should
unit of yield
be achieved
contribute
needed
Priority
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
27.72%
Cost of Production
Basic Costs
Interest
Wages & Benefits
$444,000
$41,500
$40,500
$123,069
$11,503
$11,226
$3.52
$0.33
$0.32
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
$32,000
$18,000
$12,000
$8,500
$9,500
$18,000
$3,500
$2,500
$5,500
$5,000
$5,000
$8,870
$4,989
$3,326
$2,356
$2,633
$4,989
$970
$693
$1,525
$1,386
$1,386
$0.25
$0.14
$0.10
$0.07
$0.08
$0.14
$0.03
$0.02
$0.04
$0.04
$0.04
$645,500
$178,921
$5.11
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
Total Projected Crop Production:
Acres
Yield
Total Yeild
Crop 1
Crop 2
Crop 3
Crop 4
1,200
700
100
0
150
50
5
180,000
35,000
500
Crop 3 = Hay
Cost or Goal
Basic financial
Amount this
Price per
costs & goals to
crop should
unit of yield
be achieved
contribute
needed
Priority
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
4.55%
Cost of Production
Basic Costs
Interest
Wages & Benefits
$444,000
$41,500
$40,500
$20,224
$1,890
$1,845
$40.45
$3.78
$3.69
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
$32,000
$18,000
$12,000
$8,500
$9,500
$18,000
$3,500
$2,500
$5,500
$5,000
$5,000
$1,458
$820
$547
$387
$433
$820
$159
$114
$251
$228
$228
$2.92
$1.64
$1.09
$0.77
$0.87
$1.64
$0.32
$0.23
$0.50
$0.46
$0.46
$645,500
$29,402
$58.80
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:
Acres
Crop 1
Crop 2
Crop 3
Crop 4
1,200
700
100
0
Yield
Total Yeild
150
50
5
180,000
35,000
500
Crop 4 =
Cost or Goal
Basic financial
Amount this
Price per
costs & goals to
crop should
unit of yield
be achieved
contribute
needed
Priority
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
0.00%
Cost of Production
Basic Costs
Interest
Wages & Benefits
$444,000
$41,500
$40,500
$0
$0
$0
$0.00
$0.00
$0.00
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
$32,000
$18,000
$12,000
$8,500
$9,500
$18,000
$3,500
$2,500
$5,500
$5,000
$5,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$645,500
$0
$0.00
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
1,200
700
100
0
Crop 1
Crop 2
Crop 3
Crop 4
Cumulative Acres
1,200
1,900
2,000
2,000
Yield
150
50
5
Crop 1=
Cost or Goal
Total Yield
180,000
35,000
500
Crop 2=
Crop 3=
Crop 4=
Basic financial
Cumulative
Cumulative
Cumulative
Cumulative
Cumulative
costs & goals to
Costs & Goals
Price Needed
Price Needed
Price Needed
Price Needed
be achieved
to be Achieved
Priority
For Crop to
For Crop to
For Crop to
For Crop to
Pay its Share
Pay its Share
Pay its Share
Pay its Share
Cost of Production
1
2
3
Basic Costs
Interest
Wages & Benefits
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
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
$444,000
$41,500
$40,500
$444,000
$485,500
$526,000
$1.67
$1.83
$1.98
$3.52
$3.84
$4.17
$40.45
$44.23
$47.92
$32,000
$18,000
$12,000
$8,500
$9,500
$18,000
$3,500
$2,500
$5,500
$5,000
$5,000
$558,000
$576,000
$588,000
$596,500
$606,000
$624,000
$627,500
$630,000
$635,500
$640,500
$645,500
$2.10
$2.17
$2.21
$2.24
$2.28
$2.35
$2.36
$2.37
$2.39
$2.41
$2.43
$4.42
$4.56
$4.66
$4.72
$4.80
$4.94
$4.97
$4.99
$5.03
$5.07
$5.11
$50.83
$52.47
$53.57
$54.34
$55.21
$56.84
$57.16
$57.39
$57.89
$58.35
$58.80
Farm Business & Family Goals
Worksheet 4 - Able Farm - Final Target Prices
Line
Category of
Costs/Goals
Cumulative Total
Dollars Needed to
Pay for Each Category
Total Dollars Needed
Per Quarter to Pay
for Each Category
Crop 1 =
Target Price of
Corn to Pay
for this Category
Crop 2 =
Target Price of
Beans to Pay
for this Category
Crop 3 =
Target Price of
Hay to Pay
for Each Category
1
Drop Dead
(Losses Incurred)
Red Ribbon Price
(Breakeven +)
Blue Ribbon Price
(Successful)
Purple Ribbon)
(Above Expectations)
Grand Champion
(Exceptional Market)
$444,000
$111,000
$1.67
$3.52
$40.45
$526,000
$131,500
$1.98
$4.17
$47.92
$596,500
$149,125
$2.24
$4.72
$54.34
$640,500
$160,125
$2.41
$5.07
$58.35
$645,500
$161,375
$2.43
$5.11
$58.80
3
7
13
14
Grain Marketing
Crop 4 =
Target Price of
crop 4 to Pay
for Each Category
Page 6
Cost of Production - Worksheets
Schedule F History
Income
Crop Income
Ag Program Payments
Other Income
Total Income
2001
2000
1999
1998
$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
$561,500
$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
$518,368
$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
$525,065
$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
$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 7
Cost of Production - Worksheets
Able Farm
Balance Sheet Summary
Assets
1/1/02
1/1/01
1/1/00
1/1/99
Current Assets
Cash & Checking Balance
$20,000
$14,500
$35,200
$26,500
Prepaid Expenses
$48,400
$42,900
$37,900
$25,400
Growing Crops
Accounts Receivable
$3,750
$0
$6,300
$2,150
Hedging Accounts
$20,000
$4,500
$6,520
$40,500
Crop Inventory
$42,974
$22,500
$38,600
$64,500
$0
$0
$0
$0
$135,124
$84,400
$124,520
$159,050
Market Livestock
Total Current Assets
Intermediate Assets
Breeding Livestock
Farm Machinery & Equipment
Other Int. Assets
Total Intermediate Assets
$0
$0
$0
$0
$350,000
$320,500
$310,500
$302,000
$30,200
$24,650
$25,660
$28,960
$380,200
$345,150
$336,160
$330,960
$1,320,000
$1,320,000
$1,320,000
$1,320,000
$251,000
$251,000
$251,000
$251,000
$0
$0
$0
$0
$1,571,000
$1,571,000
$1,571,000
$1,571,000
Long Term Farm Assets
Land - 1320 Acres
Buildings
Other Long Term, Assets
Total Long Term Assests
Total Farm Assets
$1,841,248 $1,739,800 $1,820,040 $1,889,100
Liabilities
Current Farm Liabilities
Accrued Farm Interest
$2,500
$3,900
$5,200
Farm Accounts Payable
$4,700
$4,700
$1,500
$0
Operating Loans
$11,500
$0
$0
$4,500
Pricipal Due In 12 Months
$43,500
$36,600
$30,150
$27,800
Real Estate Taxes Due
$17,000
$18,200
$18,650
$1,900
$79,200
$63,400
$55,500
$41,000
Machinery Loan
$175,000
$194,716
$210,325
$225,934
Other Int. Loans
$23,000
$28,480
$32,995
$37,157
$198,000
$223,196
$243,320
$263,091
$250,000
$261,403
$270,797
$279,458
$0
$0
$0
$0
$250,000
$261,403
$270,797
$279,458
$527,200
$547,999
$569,617
$583,549
Total Current Liabilities
$6,800
Intermediate Farm Liabilities
Total Intermediate Liabilities
Long Term Farm Liabilities
Real Estate Mortgages
Other Long Term Liabilities
Total Long Term Liabilities
Total Farm Liabilities
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
Grain Marketing
Page 8
Cost of Production - Worksheets
Schedule F
(Form 1040)
Profit or Loss From Farming
2001
Attach to Form 1040, Form 1941, Form 1065, or Form 1065-B
Attachment
Sequence No. 14
Name of Proprietor
Social Security Number (SSN)
Able Farms
3
A Pricipal Product. Describe in one or two words your pricipal crop or activity for the current tax year.
8
4
x
Cash [2]
4
6
1
6
2
5
1
8
9
2
3
x
E Did you "materially Participate in the operation of this business during 2001? If "No," see page F-2 for limit on passive losses
Part I
7
Employer ID Number (EIN), if any
1
Accrual
7
D
1
[1]
6
enter code from part IV
Cash Grains
C Accounting Method
5
B
1
3
1
Yes
No
Farm Income-Cash Method. Complete Parts I and II ( Accrual method taxpayers complete Parts II and III, and line 11 of Part I.)
Do not include sales of livestock held for draft, breeding, sport, or dairy purposes; report these sales on Form 4797.
1- Sales of livestock and other items you bought for resale . . . . . . . . . . . . . . . . . . . . .
1
2- Cost or other basis of livestock and other items reported on line 1 . . . . . . . . . . . . . . . . .
2
3- Subtract line 2 from line 1
. . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4- Sales of livestock, produce, grains and other products you raised . . . . . . . . . . . . . . . . . . . . . . . . .
3
$0
4
$585,400
5a Total Cooperative distributions (Form(s) 1099-PATR
5a
$7,500
5b Taxable amount
5b
$7,500
6a Agricultural Program Payments (see page F-2)
6a
$64,960
6b Taxable amount
6b
$64,960
7- Commodity Credit Corporation (CCC) loans (See page F-3)
a CCC loans reported under election
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b CCC loans forfeited
7a
7b
7c Taxable amount
7c
8a Taxable amount
8b
8- Crop insurance proceeds and certain disaster payments (see page F-3)
a Amount received in 2001
8a
c If election to defer to 2002 is attached, check here
8d Amount deferred from 2000 . .
8d
9- Custom hire (machine work) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
$3,750
10 Other income, including Federal and state gasoline or fuel tax credit or refund (see page F-3)
10
$4,500
11
$666,110
11 Gross Income. Add amounts in the right column for lines 3 through 10. If accrual method taxpayer, enter
the amount from page 2, line 51
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II Farm Expenses-Cash and Accrual Method. Do not include personal or living expenses such as taxes, insurance,
repairs, etc., on your home.
12 Car and truck expenses (see page
25 Pension and profit-sharing
F-4-also attach Form 4562 . . . . .
12
$2,000
13
$75,000
Page F-4) . . . . . . . . . . . .
14
$3,000
15 Custom hire (machine work) . . . . .
15
13 Chemicals . . . . . . . . . .
.
14 Conservation Expenses (see
25
a. Vehicles, machinery amd
16 Depeciation and section 179
expense deduction not claimed
elsewhere (see page F-4) . . . . . .
plans
26 Rent or lease (see page %-5):
16
$30,000
17 Employee benefit programs
equipment
26a
$3,000
b. Other (land, animals, etc.)
26b
$52,500
27 Repairs and maitenance
27
$44,500
28 Seeds & plants purchased
28
$50,000
29 Storage and warehousing
29
$4,500
30 Supplies purchased
30
$10,000
31 Taxes
31
$17,000
32 Utilities
32
$6,500
33 Veterinary, breeding and medicine
33
other than on line 25 . . . . . . . .
17
18 Feed Purchased . . . . . . . . . .
18
19 Fertilizers and lime . . . . . . . .
19
20 Freight and trucking . . . . . . . .
20
$8,000
21 Gasoline, fuel and oil . . . . . . . .
21
$42,000
a.
Office Expenses
34a
22 Insurance (other than health) . . . . .
22
$20,000
b.
Legal & Professional
34b
$500
c.
Marketing Expenses
34c
$3,000
$7,500
$98,500
23 Interest:
34 Other expenses (specify):
$6,500
a. Mortgage (paid to banks, etc.). . .
23a
$20,625
d.
34d
$1,000
b. Other . . . . . . . . . . . . .
23b
$20,875
e.
34e
$1,000
24 Labor hired (less emplopyee credits) . .
24
$33,000
f.
34f
$1,000
35
$561,500
35 Total Expenses. Add lines 12 through 34f . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36 Net Farm Profit or (loss). Subtract line 35 from line 11. If a profit, enter on form 1040, line 18, and also on
Schedule SE, line 1. If a loss, you must go on to line 37 (estates, trusts,and partnerships, see page F-6) .
36
$104,610
37 If you have a loss, you must check the box that describes your investment in this activity (see page F-6).
* If you checked 37a, enter the loss on Form 1040, line 18, and also on Schedule SE, line 1.
37a
* If you checked 37b, you must attach Form 6198.
37b
Grain Marketing
x
All investment is at risk
Some investment not at risk
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