Annual Report 2014
A Co-operative Project of:
Canadian Dairy Commission
Dairy Farmers of Ontario
Released
July 2015
-2-
ACKNOWLEDGEMENT
This report is indebted to the 65 dairy producers who willingly participated in the Project during
2014. These people went to considerable effort and inconvenience to help the Project representatives collect and verify information. Without this excellent co-operation, this report would not be
possible.
The Project representatives, whose job it was to collect, record, and verify all information, were
vital to the Project. Their initiative, perseverance and positive attitude has provided the Project
with high quality dairy farm data.
-3-
Table of Contents
Page
Foreword
5
PROJECT RESULTS7
List of Tables
Table 1
FARM REVENUE AND EXPENSES; 2014.
8
Table 2
FARM BALANCE SHEET; DECEMBER 31, 2014.
9
Table 3
BASIC FARM PRODUCTION PARAMETERS; 2014.
10
Table 4
DAIRY ENTERPRISE REVENUE AND EXPENSES; 2014,
PER COW.
11
Table 5
DAIRY ENTERPRISE REVENUE AND EXPENSES; 2014,
PER HL OF MILK SOLD.
12
List of Appendix and Appendix Tables
APPENDIX A
FARM REVENUE, EXPENSES, NET INCOME AND SAMPLE
CHARACTERISTICS; 2005 to 2014.13
Table A.1
FARM REVENUE, EXPENSES AND NET INCOME; 2005 TO 2014. 13
Table A.2
SAMPLE CHARACTERISTICS; 2005 TO 2014.
APPENDIX B
Table B.1
APPENDIX C
SAMPLE DESIGN AND CHARACTERISTICS15
B.1 Project Methodology
15
B.2 Sample Selection
15
B.3 Enrolment Procedure
17
B.4 Labour Data Collection
17
SAMPLE COMPOSITION AND STRUCTURE; 2014.
16
13
ACCOUNTING PROCEDURES18
C.1 Account Structure
18
C.2 On-Farm Recording
18
C.3 Valuation of Fixed Assets
19
C.4 Valuation of Livestock
19
C.5 Valuation of Crops
19
C.6 Allocation of Expenses
20
C.7 Allocation of Home-grown Feed
22
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Table C.1
LIVESTOCK INVENTORY VALUES; 2014.
19
Table C.2
CROP INVENTORY AND TRANSFER VALUES ON A
PER TONNE BASIS; 2014.
20
Listing Of Graphs
Graph A.1
AVERAGE REVENUE, EXPENSES AND NET INCOME;
2005 to 2014.
14
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FOREWORD
The Ontario Dairy Farm Accounting Project (ODFAP) is a co-operative project of Dairy Farmers
of Ontario, and the Canadian Dairy Commission (CDC). The Project was initiated in 1976.
The objective of the Project is to develop and maintain a system of obtaining regular, representative and consistent farm production and management data which meets the farm database
requirements of the Ontario dairy industry in the three areas of policy, research and extension.
This is being achieved (1) by maintaining a sample of farms which represents typical Ontario
dairy farm situations and which reflects different levels of technology, regional differences and
other significant factors and, (2) through the development and maintenance of a data collection
and information reporting system which will provide the participating agencies with the information which they require.
The ODFAP Annual Report is just one aspect of this Project. The Annual Report provides a
summary of the information collected, but, by no means, portrays the wealth of information
available for policy, research and extension uses. The project data, along with similar data from
other provinces, is incorporated into the National Cost of Production formula for industrial milk,
maintained by the Canadian Dairy Commission. Likewise, project data is incorporated in the
cost of production component of the national fluid milk pricing formula. Cost of production
has a 50% weighting in the formula, while the other 50% is from the change in Consumer Price
Index (CPI).
-6-
PROJECT STAFF
Project Staff, responsible for collecting and verifying the study information for 2014 were:
Barbara Ryan
Technician, Western Region
Gijs Cornelissen
Technician, East Region
Andrew Ryzebol
South-West and Niagara Regions
Jim Hanmore
Technician, Central Region
Project Manager, ODFAP
Individuals responsible for the final editing of the 2014 data and for the preparation of this report,
include:
Phil Cairns
Senior Policy Advisor, Dairy Farmers of Ontario
Kristin Benke
Economist, Dairy Farmers of Ontario
Jim Hanmore
Project Manager, ODFAP
-7-
ONTARIO DAIRY FARM
ACCOUNTING PROJECT
RESULTS 2014
The 2014 results for the 65 farms on the project are presented in the following tables.
Farm revenue and expenses are summarized in Table 1. Balance sheet information is summarized in Table 2. Physical characteristics are summarized in Table 3.
It should be noted that livestock and crop inventories are valued at an average of market values or prices at the beginning and end of the year for purposes of accruing the revenue value of
inventory changes in the Farm Revenue and Expense Statement in Table 1. As such, the reported
revenue items for inventory changes only reflect income changes associated with changes in the
quantities of the related inventories held. They do not capture any change in value associated
with market price changes during the year.
Revenue and expense information for the dairy enterprise is broken out in Tables 4 and 5. For
purposes of these tables, the dairy enterprise is defined to consist of dairy cows, the raising of
replacements and/or any related livestock borne of the dairy cow herd, and the supporting crop
production associated with both.
Averages are presented in each table for all farms and for 3 sample groupings ranked on the basis
of cost of production (COP): the 15 farms with the highest cost (bottom); the 15 farms with the
lowest cost (top), and the remaining 35 farms (middle). The COP ranking is based on the assumptions and calculational procedures established for the national Cost of Production pricing
formula for industrial milk.
-8-
FARM REVENUE AND EXPENSES; 2014.
Table 1
NUMBER OF FARMS
Bottom 15
Middle 35
Top 15
All 65
REVENUE
$$$$
Milk Sales 242,084
531,676
1,070,663
589,229
Cow & Bull Sales
14,382
30,887
75,105
37,282
Calf & Heifer Sales
5,625
13,167
17,697
12,472
Crop Sales
14,88246,91941,59438,297
Other Farm Income
20,72953,87669,65649,868
Total Cash Revenue
297,702
676,525
1,274,715
727,148
Inventory Change
Dairy Enterprise
-1272,9641,7331,967
Replacement Enterprise
-1,709 -4798,9131,405
Other Livestock
-6003,510 -1891,708
Feeds, Crops, Supplies
-9,070-7,848-5,808-7,659
Total Farm Revenue
286,196
674,672
1,279,364
724,569
EXPENSES
Dairy Cow Enterprise
Cow & Bull Purchases
3,101
3,436
3,393
3,349
Commercial Feed Purchases
32,173
74,673
170,452
86,968
Milk & Livestock Marketing
14,594
33,155
68,096
36,935
Breeding Fees
3,2465,7438,7705,865
Stable & Milkhouse Supplies
5,925
11,164
14,057
10,622
Vet. and Drugs
6,08114,10819,79313,568
Other Dairy Expenses1
6,71115,24729,02916,457
Replacement Enterprise
Cattle Purchases
267
1,050417723
Feed Purchases
6,78911,75524,66313,588
Other Direct Heifer Expenses
1,640
3,422
7,341
3,915
Crop Enterprise
Grains and Forages Purchases
4,857
11,194
14,572
10,511
Seed
6,43415,82024,32615,617
Fertilizer
7,35817,36228,16417,546
Sprays
2,0506,5079,1156,080
Custom Work
9,18522,11829,01920,726
Gas & Diesel Fuel
10,976
22,536
26,728
20,836
Machinery Repairs
12,31225,53731,43623,846
Other Crop Expenses2
2,4075,2854,8704,525
Other Farm Expenses
Direct Expenses Non-Dairy Livestock3
7763,038-2,4321,254
Direct Expenses Other Crops
7,390
15,804
25,351
16,066
Wages & Salaries
Land Rent
Interest Paid
Real Estate Taxes
Telephone & Hydro
Insurance
Equipment & Building Repairs
Other General Cash Expenses4
Total Cash Expenses
Building Depreciation
Machinery Depreciation
Total Farm Expenses
Net Farm Income
18,545
71,893
103,814
66,948
1,8486,9228,3746,086
24,52637,13789,81946,384
3,5167,22511,1607,277
11,18717,94523,47617,662
7,20410,12016,77110,982
11,448
23,957
34,804
23,573
9,61911,96617,07412,603
232,165
506,119
842,452
520,512
7,77920,48937,91121,576
14,56932,16264,53935,574
254,513558,770944,902577,662
31,683
115,902
334,462
146,907
Other Dairy Expenses include registration/testing fees, building rent, straw & bedding, & livestock insurance for the
dairy herd.
2
Other Crop Expenses include crop insurance, seed cleaning, twine, propane for corn drying & misc. crop expenses.
3
Since rebates are recorded as negative expenses, the direct expense for non-dairy livestock enterprises may be negative for farms which have no such livestock.
4
Other General Cash Expenses include car expenses and miscellaneous farm expenses.
1
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Table 2
FARM BALANCE SHEET;
DECEMBER 31, 2014.
NUMBER OF FARMS
Bottom 15
Middle 35
Top 15
All 65
A. WITH ASSETS AT MARKET VALUE
$
$
$
$
Machinery and Equipment
261,146
531,727
881,384
549,975
Personal Equipment
17,427
5,447
13,587
10,090
Land and Farm Buildings
1,346,609
3,166,325
4,301,932 3,008,454
Farm House & Personal Structures
99,367
224,017
318,263
217,001
Dairy Cows
58,647130,590255,763
142,874
Dairy Heifers
25,767
62,743
137,014
71,350
Other Livestock
2,6134,7053,320
3,903
Feed, Crops, Supplies, Inventory
52,107
131,062
217,165
132,712
Milk Quota
777,4671,679,2613,418,359
1,872,485
Total Assets
2,641,1505,935,8779,546,787
6,008,844
B. WITH FIXED ASSETS AT COST LESS DEPRECIATION1
Machinery and Equipment 144,911
299,836
574,167
327,391
Personal Equipment
20,85710,72021,756
15,606
Land and Farm Buildings
510,176
1,148,454
2,317,081 1,270,842
Farm House & Personal Structures
52,047
90,991
127,126
90,343
Dairy Cows
58,647130,590255,763
142,874
Dairy Heifers
25,767
62,743
137,014
71,350
Other Livestock
2,6134,7053,320
3,903
Feed, Crops, Supplies, Inventory
52,107
131,062
217,165
132,712
Milk Quota
777,4671,679,2613,418,359
1,872,485
Total Assets
1,146,8492,345,3435,300,906
2,750,822
C. LIABILITIES
Operating & Short-Term Trade Credit
Intermediate & Long Term Loans
F.C.C. Loans
Total Liabilities
D. OWNER’S EQUITY
(A) Assets At Market Value
(B) Fixed Assets at Cost
Less Depreciation
24,485
22,111
94,556
39,377
248,797
661,543
1,829,123
835,736
351,247
472,426
1,180,462
607,855
624,5291,156,0803,104,141
1,482,968
2,016,621
522,320
4,779,797
1,189,263
6,442,646
2,196,765
4,525,876
1,267,854
Depreciation was not subtracted from the cost of the farm house, land, milk quota, or personal equipment.
1
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Table 3
BASIC FARM PRODUCTION PARAMETERS; 2014.
NUMBER OF FARMS Bottom 15
Middle 35
Top 15
All 65
Dairy Cows (hd)
39.8
73.8
137.9
80.8
Open Dairy Heifers, 6 months & older (hd)
Bred Dairy Heifers (hd)
13.6
24.0
45.6
26.6
10.6
23.5
48.9
26.4
Milk Sold/Farm (litres)1
285,078 648,6581,295,479 714,021
Milk Sold/Cow (litres)1
7,0078,5319,2988,356
Butterfat Test (kg/hl)
4.174.044.034.07
Person-Equivalents of Labour
2.0
Workable Land Farmed (hectares)2
78144191140
Average Age of Principal Operator
Milk is expressed in terms of milk actually sold.
One hectare = 2.47 acres.
1
2
52.5
2.3
51.9
2.5
50.3
2.3
51.7
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Table 4
DAIRY ENTERPRISE REVENUE AND EXPENSES; 2014.
- PER COW NUMBER OF FARMS
Bottom 15
Middle 35
Top 15
All 65
REVENUE
Milk Sales Quality Penalties & Levies
Cows & Bulls Sold
Other Dairy Livestock Sold
Dairy Livestock Inventory Change
Net Revenue
$ $$$
5,888.11
6,954.43
7,622.67
6,862.56
-2.29
-2.32
-14.13
-5.04
340.81
426.00
540.34
432.73
141.17
192.68
132.16
166.82
-40.40
53.52
74.11
36.60
6,327.407,624.318,355.157,493.67
DIRECT DAIRY EXPENSE
Dairy Ration
Protein Supplements
Salt & Minerals
Milk Replacer & Calf Ration
Other Purchased Feeds
Vet & Drugs
A.I. Fees
Stable & Milk House Supplies
Milk Transport & Licence Fees
Livestock Marketing
Other Dairy Expense1
Total Direct Expense
485.88319.81640.41432.12
294.06563.42373.44457.42
76.60
73.64
107.04
82.03
104.62
96.85
134.82
107.40
0.0812.5379.0225.01
157.13202.20183.57187.50
75.8877.7070.6575.65
157.14
156.59
110.65
146.11
351.72
420.10
460.02
413.53
6.7316.2417.2314.28
180.49183.66178.37181.71
1,890.332,122.742,355.222,122.76
DAIRY SHARE OF CROP EXPENSES
Bulk Grain & Forage Purchases
Seed
Fertilizers
Herbicides & Pesticides
Custom Work
Fuel & Lubricants
Field Machinery Repairs
Land Rent
Other Crop Expense2
Total Crop Expense
Returns Over Direct & Crop Expenses
105.58
146.28
92.62
124.51
116.07140.35140.82134.86
133.62164.31151.60154.29
37.3557.4157.7052.85
159.48232.99187.68205.57
185.64215.89148.88193.44
186.52213.01187.43200.99
34.5964.2961.7756.85
57.5357.7339.4353.46
1,016.381,292.261,067.931,176.82
3,420.69
4,209.31
4,932.00
4,194.09
ALLOCATED INDIRECT & OVERHEAD EXPENSES
Barn Equipment & Building Repairs
219.48
262.44
203.82
239.00
Hired Labour Expenses
333.41787.59724.39668.20
Interest Expense
518.01456.66521.94485.88
Insurance
131.02102.38 84.81104.94
Hydro & Telephone
216.31182.43155.31183.99
Taxes
68.7969.3063.4167.82
Other Overhead Expenses3
140.82110.85 93.20113.70
Total Indirect & Overhead Expenses
1,627.84
1,971.65
1,846.88
1,863.53
Returns Over Expenses
1,792.852,237.663,085.122,330.56
DAIRY LIVESTOCK PURCHASES
Cows & Bulls Purchased
Other Dairy Livestock Purchases
Total Dairy Livestock Purchases
Net Returns
94.56
65.51
36.27
65.47
8.34
14.74
2.89
10.53
102.90
80.25
39.16
76.00
1,689.952,157.413,045.962,254.56
TOTAL LABOUR REQUIRED (Hrs)4 143.9196.3460.4999.04
1
Other Dairy Expense includes bedding materials, feed processing expense, livestock testing and registration,
livestock insurance, livestock promotion expense and building rent.
2
Other Crop Expense includes twine, seed cleaning, crop insurance and machine rentals.
3
Other Overhead Expense includes hardware, car expenses and miscellaneous expense.
4
Labour estimated based on the recorded hours from daily time sheets (see section B.4).
-12-
Table 5
DAIRY ENTERPRISE REVENUE AND EXPENSES; 2014.
- PER HL OF MILK SOLD -
NUMBER OF FARMS
REVENUE
Milk Sales
Quality Penalties & Levies
Cows & Bulls Sold
Other Dairy Livestock Sold
Dairy Livestock Inventory Change
Net Revenue
Bottom 15
Middle 35
Top 15
All 65
$$$$
84.8281.4281.9782.33
-0.04
-0.03
-0.14
-0.06
4.51
5.07
5.78
5.10
2.33
2.33
1.42
2.12
-0.44
0.65
0.78
0.43
91.1889.4489.8189.92
DIRECT DAIRY EXPENSES
Dairy Ration
Protein Supplements
Salt & Minerals
Milk Replacer & Calf Ration
Other Purchased Feeds
Vet & Drugs
A.I. Fees
Stable & Milk House Supplies
Milk Transport & Licence Fees
Livestock Marketing
Other Dairy Expense1
Total Direct Expense
7.153.786.865.27
3.976.244.045.21
1.150.781.140.95
1.43
1.12
1.45
1.27
0.000.140.870.28
2.092.331.962.19
1.060.910.750.91
2.30
1.89
1.19
1.82
5.08
4.93
4.95
4.97
0.120.190.190.17
2.582.041.912.13
26.9324.3525.3125.17
DAIRY SHARE OF CROP EXPENSES
Bulk Grain & Forage Purchases
Seed
Fertilizers
Herbicides & Pesticides
Custom Work
Fuel & Lubricants
Field Machinery Repairs
Land Rent
Other Crop Expense2
Total Crop Expense
Returns Over Direct & Crop Expenses
1.60
1.75
1.05
1.56
1.621.681.501.62
1.812.001.601.86
0.480.670.610.62
2.262.701.992.44
2.842.651.632.46
2.702.582.072.49
0.390.790.590.65
0.820.700.420.66
14.52
15.52
11.46
14.36
49.73
49.57
53.04
50.39
ALLOCATED INDIRECT & OVERHEAD EXPENSES
Barn Equipment & Building Repairs
2.90
3.05
2.22
2.83
Hired Labour Expenses
4.339.417.627.82
Interest Expense
6.925.185.805.72
Insurance
1.891.270.871.32
Telephone & Hydro
3.092.151.702.26
Taxes
1.040.840.690.85
Other Overhead Expenses3
1.981.331.001.40
Total Indirect & Overhead Expenses
22.15
23.23
19.90
22.20
Returns Over Expenses
27.5826.3433.1428.19
DAIRY LIVESTOCK PURCHASES
Cows & Bulls Purchased
Other Dairy Livestock Purchases
Total Dairy Livestock Purchases
Net Returns
TOTAL LABOUR REQUIRED (Hrs)4
1.51
0.88
0.42
0.92
0.09
0.16
0.03
0.11
1.60
1.04
0.45
1.03
25.9825.3032.6927.16
2.281.170.651.31
Other Dairy Expense includes bedding materials, feed processing, expense, livestock testing and registration,
livestock insurance, livestock promotion expense and building rent.
2
Other Crop Expense includes twine, seed cleaning, crop insurance and machine rentals.
3
Other Overhead Expense includes hardware, car expenses and miscellaneous expense.
4
Labour estimated based on the recorded hours from daily time sheets (see section B.4)
1
APPENDIX A
Data Year
Number of Farms
Herd Size (head)
Milk Sales (litres)
Milk Sales Per Cow (litres)
Tillable Hectares
Total Person Equivalents
Age of Principal Operator
2005200620072008200920102011201220132014
75748473736561565865
68.069.377.474.675.575.586.288.785.380.7
555,512573,620659,597616,427633,715619,236720,343759,686742,230714,021
7,8427,9758,2527,9718,0547,8537,9377,8938,1528,356
123132140115122130142152151140
2.102.102.302.302.252.222.40 2.4 2.3 2.3
47.046.947.047.449.549.550.653.352.351.7
Sample Characteristics; 2005 to 2014.
99,394106,340119,645117,860126,772150,323177,612178,601154,894146,907
NET FARM INCOME
Table A.2
32,43533,72036,71038,02738,32540,82351,27057,87458,37157,150
355,048389,512444,374436,455429,725422,724522,804567,752584,818577,662
98,218101,096254,484125,140130,483122,646155,543168,304172,835173,764
9,608 9,47911,35514,07612,04512,09616,86518,49017,45518,226
74,85679,78489,08993,48887,30989,037105,854122,888128,404119,687
139,931165,433183,982165,724161,563158,122193,272200,196207,753208,835
322,613355,792407,664398,428391,400381,901471,534509,878526,447520,512
6789,374-3,25414,8075,3465,5478,545-8,0396,240-2,579
454,442495,852564,019554,315556,497573,047700,416746,353739,712724,569
Inventory Change All Enterprises
Total Farm Revenue
EXPENSES
Dairy Cow Enterprise
Replacement Enterprise
Crops Enterprises
Other Farm Expenses
Total Cash Expenses
Building & Machinery Depreciation
Total Farm Expenses
$$$$$$$$$$
378,511403,024480,154455,880475,906474,444580,364601,449596,407589,229
16,69717,40316,72825,41516,84021,62029,45934,99537,76149,754
24,93928,59531,22427,48525,26233,06047,78666,24243,48638,297
33,61737,45639,16730,72833,14338,37634,26251,70655,81849,868
453,764486,478567,273539,508551,151567,500691,871754,392733,472727,148
2005200620072008200920102011201220132014
75748473736561565865
FARM REVENUE, EXPENSES AND NET INCOME; 2005 to 2014.
REVENUE
Milk and Cream Sales
Livestock Sales
Crop Sales
Other Farm Income
Total Cash Revenue
Year
Number of Farms
Table A.1
-13-
Dollars
Graph A.1
0
100000
200000
300000
400000
500000
600000
700000
800000
2005
2006
2007
Revenue
2008
2010
Year
Expenses
2009
2012
Net Farm Income
2011
Average Revenue, Expenses
And Net FARM Income;
2005 to 2014.
2013
2014
-14-
-15-
APPENDIX B
SAMPLE DESIGN AND CHARACTERISTICS
B.1 Project Methodology
To provide uniformity of data collection, Project representatives are assigned to do on-farm
recording of financial transactions. Farms are visited, on average, three to four times a year, to
record financial transactions and collect relevant production information. Various techniques are
used to solicit data due to the many differences in farm types and the level of organization.
B.2 Sample Selection
The project sample is based on a regionally stratified random sample of farms. The sample was
selected from the files of Dairy Farmers of Ontario (DFO).
The 2014 sample is composed of five sub-samples of dairy farms. The first sub-sample consists
of 1 farm which was recruited in late 2009 and enrolled in the Project for 2010. The second subsample consists of 14 farms recruited in late 2010 for enrolment in 2011. The third sub-sample
of 16 farms was recruited in late 2011 for enrolment in 2012. The fourth sub-sample of 21 farms
was recruited in late 2012 for enrolment in 2013. The fifth and final sub-sample of 13 farms was
recruited in late 2013 for enrolment in 2014.
All five sub-samples were randomly selected on the basis of region. That is, the number of farms
selected within a region for each sub-sample reflected the proportion of the farms present in the
population for that region at the time the sub-sample was drawn. In 2013 the original 6 regions
were replaced by 14 new regions, matching the DFO Field Supervisor Representative zones, allowing for a more streamlined recruiting process.
The counties1 included in each region of the sampling grid area are:
1
Counties are as they were defined prior to amalgamation under regional government.
Region 1
Region 2
Region 3
Region 4
Region 5
Region 6
Region 7
Region 8
Region 9
Region 10
Region 11
Region 12
Region 13
Region 14
Glengarry, Prescott
Russell, Stormont, Dundas, Carleton
Grenville, Leeds, Carleton, Dundas
Lennox & Addington, Frontenac, Lanark, Renfrew, Carleton
Hastings, Northumberland, Peterborough, Prince Edward
York, Peel, Durham, Simcoe, City of Kawartha Lakes
Brant, Haldimand, Niagara, Norfolk, Halton, Waterloo, Wentworth, Oxford, Wellington
Oxford
Middlesex, Elgin, Lambton, Essex-Kent
Perth, Huron
Perth, Wellington
Waterloo, Wellington
Bruce, Huron
Dufferin, Grey, Wellington
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The sample is based on a five year rotation. Each year the new sample is based on the existing
population within each of 14 regions. Any producer that had participated in the project within
the past 3 years was excluded from the sample selection process.
The sample composition and structure for the 65 farms on which this report is based are summarized in Table B.1. The reduced number of participants in 2010 reflects the planned reduction
in the sample size for the National COP in recognition of the current producer populations in all
provinces.
Table B.1
SAMPLE COMPOSITION AND STRUCTURE; 2014.
Participation by Year of Initial Enrolment
REGION 20102011201220132014Total
1
05100 6
2
00110 2
3
01120 4
4
02101 4
5
00222 6
6
01020 3
7
00152 8
8
00313 7
9
03002 5
10
01010 2
11
01313 8
12
00240 6
13
10110 3
14
00010 1
Total
1 14162113 65
B.3
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Enrolment Procedure
Farms selected for enrolment were initially contacted and recruited by a DFO Field Services
Representative. A serious attempt was made to handle all contacts in the same manner and to
give essentially the same message in all cases. In discussions with the farmers, and in seeking their co-operation, it was emphasized that the confidentiality of individual records would be
respected, that there were benefits to the industry and to the individual and that we were seeking
their co-operation. It was also stressed that the data collection visits would occur at the convenience of the producer.
B.4 Labour Data Collection
Labour data for the project is collected using daily time sheets. Producers are asked to complete
the time sheets for their first year on the project. Sheets are completed for all individuals contributing labour to the farm. Completion of the time sheets in the second and subsequent years on
the project is encouraged, but not mandatory, unless changes have occurred which would significantly alter the labour requirements for the operation.
Employees please fill-in the section below:
FARM #
Name:
2
3
4
5
6
7
8
9
10
MONTH
11
12
13
PAY
STAT
14
15
YEAR BORN
16
17
18
EFFICIENCY
19
20
21
Total Hours
EMPLOYEE NAME
22
23
24
25
26
27
28
29
30
31
DAIRY COWS AND BULLS
• Herd management, milking equipment
maintenance, milking, feeding, health care, etc.
DAIRY REPLACEMENTS
• Feeding, health care, management, etc.
OTHER LIVESTOCK: BEEF, SWINE ETC.
• Feeding, health care, management, etc.
Indicate type of livestock: _____________________
COMMON LIVESTOCK WORK
• Main dairy barn, stable maintenance & cleaning,
preparing rations, silo unloader, building repair.
FIELD MACHINERY
• Maintenance and repairing of field
machinery.
OTHER BUILDINGS
• Maintenance and repairing of other farm
buildings other than main dairy barn.
BARNYARD AND FENCES
• Maintenance and repairing of barnyard and
farm fences.
LAND
• Stone picking, farm lanes, snow removal,
ponds.
ADMINISTRATION AND MANAGEMENT
• Bookkeeping, meetings, errands, professional
reading, agricultural courses, banking.
HAY AND HAYLAGE
• Plowing, tillage, fertilizing, spraying, planting,
spreading manure, harvesting, etc.
SMALL GRAINS, WINTER WHEAT, STRAW
• Plowing, tillage, fertilizing, spraying, planting,
spreading manure, harvesting, etc.
CORN GRAIN AND CORN SILAGE
• Plowing, tillage, fertilizing, spraying, planting,
spreading manure, harvesting, etc.
SOYBEANS, OTHER CROPS, MAPLE SYRUP
• Plowing, tillage, fertilizing, spraying, planting, spreading manure, harvesting, etc. crop:_____________
OTHER
YEAR
100
1
CONSTRUCTION, LAND CLEARING
• Building construction, tree removal, etc.
CUSTOM HIRE FOR OTHERS
• Farm related work performed for others but
not part of your own farming operation.
PLEASE DO NOT WRITE IN SHADED AREAS
FIELD WORK
MAINTENANCE & REPAIRS
WORK IN THE BARN
Month:
Year Born:
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APPENDIX C
ACCOUNTING PROCEDURES
C.1 Account Structure
A computerized accounting program is used as the data collection vehicle for the Project. The
computer program permits separating information into enterprises or profit centres and accounts
or cost centres. Six basic enterprises are being registered:
(i) general farm
(ii) dairy herd
(iii)replacement
(iv) small grain
(v) corn/corn silage
(vi)hay/haylage/pasture
The general farm account includes any other crop or type of livestock. Specialized enterprises
are not registered. One overhead cost account is registered.
The number of farms which had other livestock or crops activity in the general farm account in
2014 is as follows:
(i)Beef
(ii)Swine
(iii)Poultry
(iv)Sheep
(v) Other Crops
5
0
0
1
43
C.2 On-Farm Recording
Project representatives work within very specific guidelines in order to get as much uniformity
as possible. As a general rule, the recording methods required for filing tax returns are used. All
income and expense items are recorded on an accrual basis. A complete list of items recorded
and the recording procedure can be obtained from the Project Manager.
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C.3 Valuation of Fixed Assets
All fixed assets (land, buildings, houses, machinery, and intangibles) are recorded at both original
cost and estimated current market value.
Depreciation is recorded using a diminishing balance rate: 5% for buildings and structures, 10%
for farm machinery and 15% motorized equipment and machinery. The assumption is made that
the equipment will reach its salvage value when it is worth 20 per cent of its original cost.
C.4 Valuation of Livestock
Dairy livestock is valued according to three different quality categories. Beginning and ending
inventory values, used for 2014, are as indicated in Table C.1.
Table C.1
LIVESTOCK INVENTORY VALUES; 2014.
5,000 or Below
5,001-7,750
Over 7,751
Description Litres/Cow/YearLitres/Cow/YearLitres/Cow/Year
BeginningEnding BeginningEnding
BeginningEnding
($)($) ($)($)
($)($)
Cows
Bred Heifers
Open Heifers
Heifer Calves
Bull Calves
Note:
800 800
750 750
500500
100100
120120
13001300
10001000
750750
150150
120120
18501850
16001600
10001000
250250
120120
Information in the table is based on current auction market value as collected by Project representatives.
Beef, swine and poultry were valued at current market value.
C.5 Valuation of Crops
Grain values are based on estimates obtained from the Ontario Ministry of Agriculture and Food.
Forage values are based on the equivalent feed value of grain corn. Values for 2014 are as indicated in Table C.2.
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Table C.2
CROP INVENTORY AND TRANSFER VALUES; 2014.
- Per Tonne Basis -
Values used for
Home-grown Feed:
Wheat (Feed)
Oats
Barley
Mixed Grain
Grain Corn
Hay
Corn Silage
Haylage @ 45% DM
Straw
Oatlage/Barlage
I nventory Valuation
Beginning
Ending
$$
Transfer
Value
$
260.00290.00275.00
260.00176.00213.00
250.00238.00249.00
265.00150.00207.50
235.00182.00208.50
100.00151.00125.50
45.0036.0040.50
90.00
75.00
82.50
100.00136.00118.00
90.0047.6068.80
C.6 Allocation of Expenses
Direct expense items, such as seed and fertilizer, pose no problem with respect to
allocation as their use is generally confined to a single farm enterprise.
Indirect and overhead expenses are more difficult to allocate as they are normally used in more than one enterprise. These expenses are allocated on the basis of the following guidelines.
(a)Building Depreciation
Allocated to livestock enterprises according to the building space used. If the
buildings used for certain types of enterprises are obviously depreciating at a higher rate than others, the allocation is accordingly adjusted.
(b)Machinery Depreciation
Allocated according to use as defined on the basis of the classification of individual machinery and equipment items.
(c) Heating Fuels
Normally all personal use unless auxiliary heating is required for certain livestock enterprises (e.g. broilers).
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(d) Barn Equipment Repair
Normally about 80 per cent to the cows, 20 per cent to heifers (milking equipment milk tank, stable cleaners, etc. are used mainly for the dairy enterprise). If other livestock enterprises are on the farm, costs are allocated according to use.
(e) Building Repair (building repair, fence repair, hardware)
Normally about 80 per cent cows, 20 per cent heifers if housed in the same type of facilities.
(f) Gas, Diesel (gas, diesel, oil, grease)
Allocated to crops on the basis of hectares or use. Gasoline for personal use is being recorded directly, and not allocated.
(g) Field Machinery (equipment repair)
Allocated according to hectares or use.
(h) Machinery Miscellaneous Expenses (hardware, tools, machine insurance, licence, rent)
Allocated according to hectares or use.
(i) House Repairs and Maintenance
Almost always 100 per cent personal.
(j)Labour (wages, EI, CPP, WSIB, EHT)
According to use.
(k)Interest (interest, life insurance premium)
Allocation of short term interest is based on the percentage that the direct expense for each enterprise represents of the total direct expense for the farm. Intermediate and long term interest including life insurance premium is allocated 50 per cent to the livestock enterprises based on the percentage overhead allocated, and 50 per cent to crops according to hectares.
(l) Farm Insurance (fire, liability, accident)
Allocated to livestock.
(m)Car (car insurance, maintenance)
Normally 70 per cent personal, 15 per cent livestock, 15 per cent crops.
(n)Hydro
Normally, if highly mechanized, 30 per cent personal, 70 per cent livestock. If low
mechanization, 50 per cent personal, 50 per cent livestock.
(o)Water
Allocated to livestock.
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(p)Telephone
Normally 50 per cent personal, 25 per cent livestock, 25 per cent crops.
(q)Real Estate Taxes
Approximately half land, half buildings, allocated 10 per cent to personal use for the house, pro-rated 40 per cent to livestock according to animal units, 50 per cent to
crops according to hectares of each crop.
(r) Other Overhead Expenses (Fees, accounting, legal, office supplies, advertising, etc.)
Fifty per cent livestock, 50 per cent crops.
C.7 Allocation of Home-grown Feed
All home-grown feed is allocated to the various livestock enterprises based on information supplied by the farmer. In order to check for accuracy, an edit is carried out at the end of the year.
This involves checking the estimated feed consumption
(Beginning Inventory + Production + Purchases - Sales - Ending Inventory )
for each farm to make sure that it is in line with accepted industry benchmarks for feed consumption. If feed consumption is not close to the benchmarks, the crop yields and other related information are double-checked to clarify the discrepancy.