Evaluating the New Century Go-Go Farmer
|
|
- Bathsheba Harper
- 5 years ago
- Views:
Transcription
1 Evaluating the New Century Go-Go Farmer Bob Craven Center for Farm Financial Management University of Minnesota
2 Data providers: MNSCU Farm Business Management U of MN Farm Management Associations
3
4 Top 20% Characteristics Gross income $2.0 M Assets $5.6 M Debt to assets 38 % WC to gross 52% Owner withdrawal $82,585 Acres farmed 1,943 Owned acres 493
5 Bottom 20% -- Gross > $2 M Gross income $3.6 M Assets $4.0 M Debt to assets 53 % WC to gross 17.0% Owner withdrawal $82,585 Acres farmed 1,087 Owned acres 232 Bottom 20% -- Gross > $1 M Gross income $2.6 M Assets $4.4 M Net farm income $-212,991 Debt to assets 47 % WC to gross 5.4% Acres farmed 1,444 Owned acres 329
6 Go-Go Culture Hard charging Focused on expansion Willing to take risks Liquidity usually an issue Often gross income approaching or greater than total assets. Tools for Credit Analysis In the real world Financial Soundness Balance sheets at mixed market/cost values Financial Performance Schedule F tax statement How can we measure financial performance in the real world?
7 Income Statement Problems with Schedule F Cash based Tax rules that distort income Fast depreciation Sch F vs. Accrual Net Income % difference for years averaged Years Averaged All farms 20-40% in debt >40% in debt % 56% 60% % 56% 61% % 57% 63% 5-Year % 55% 60% Source: Barnard, F. L., Ellinger, P. N., & Wilson, C. (2010). Measurement Issues in Assessing Profitability through Cash Tax Returns. Journal of American Society of Farm Managers and Rural Appraisers, 2010(1),
8 Which Way Did They Go? Source: FINBIN Low Income Farms High Income Farms Cash net farm income 30, ,979 Accrual net farm income -31, ,131 Tools To Use Can you get fiscal year end balance sheets? Yes Scheduled F Accrual Analysis No Earned Net Worth Analysis
9 Earned Net Worth Analysis Beginning net worth + Net farm income (accrual) + Non-farm income - Family living expense - Income taxes +/- Valuation changes = Ending net worth Farm Business Earned Net Worth Analysis Start with net worth change (market) Back out valuation changes To arrive at earned net worth change Valuation changes not just LAND If machinery and building depreciation is not reasonable, valuation changes creep into these assets too
10 Earned Net Worth Analysis Ending net worth (mkt) Beginning net worth (mkt) - Change in net worth (mkt) = Change in market valuation (G) - Inheritance, gifts, capital contributions - Gifts given + A. Change in earned net worth = Change in earned net worth (A) Family living / owner withdrawals + income and social security taxes + Personal income - Personal asset depreciation + Change in personal accounts payable + B. Net Farm Income = Change in Market Valuation/Depreciation Worksheet Beginning balance sheet value Purchases + Sales - C. Total value to depreciate = Depreciation rate * D. Depreciation = E. Ending depreciated value (C - D) Machinery Buildings Land Total F. Ending balance sheet value G. Change in market valuation (F - E) Center for Farm Financial Management, University of Minnesota
11 Key Measures Vulnerable Strong Liquidity: Working Capital to Gross Revenue Total current assets Total current liabilities - Working capital = Gross farm income Working capital to gross revenue (%) = % % Solvency: Debt to Asset Ratio Total liabilities Total assets Debt to asset ratio (%) = % % Profitability: Rate of Return on Assets Net farm income (B) Farm interest expense + Value of labor and management - Return on farm assets = Total farm assets Rate of return on farm assets (%) = % % Repayment Capacity: Term Debt Coverage Ratio Earned net worth change (A) Depreciation expense (D) + Interest on term debt + Capital debt repayment capacity = Scheduled payments on term debt Term debt coverage ratio = Efficiency: Asset Turnover Rate Gross farm income Total farm assets Asset turnover rate (%) = % % -----
12 Tools To Use Can you get fiscal year end balance sheets? Yes Scheduled F Accrual Analysis No Earned Net Worth Analysis Accrual Adjusted Income Statement Includes all income actually produced during the accounting period, whether sold or not Includes all expenses incurred during the accounting period whether paid or not
13 May 2012 Income Statement Worksheet Use this worksheet to convert Schedule F tax information to an accrual adjusted income statement. Gross Income (Schedule F Line 11) Cost of Feeder Livestock Sold (Line 2) + Crop Insurance Reported (Line 8b) - Crop Insurance Received (Line 8a) + Crop Insurance Deferred from Previous Year (Line 8d) - Cull Livestock Income + Gross Cash Income (A) 0 Crops & Feed + Livestock Held For Sale + Accounts Receivable + Hedging Accounts + Other Inventory + Gross Farm Income (Accrual) End Invent - Beg Invent (B) Total Expense (sched F, line 35) Purchases of livestock & other items for resale + Depreciation (line 16) Account Prepaid Expenses & Supplies + Growing Crops + Account Accounts Payable + Accured Interest + Total Operating Expense (Accrual) Beg Invent - End Invent End Invent - Beg Invent (C) - Depreciation Begin value + Purchases - Sales Machinery Vehicles + Buildings + Breeding Livestock Replacments + Total Depreciation = Value * % Depr (D) Total Expense (accural) (E) C + D Net Farm Income (accural) (F) B - E Center for Farm Financial Management, University of Minnesota
14 May 2012 Key Ratios Worksheet Use this worksheet with the income statement and ending balance sheet to calculate the key ratios. Liquidity: Working Capital to Gross Revenue Vulnerable Strong Total current assets Total current liabilities - Working capital = Gross farm income (B) Working capital to gross revenue (%) = % % Solvency: Debt to Asset Ratio Total liabilities Total assets Debt to asset ratio (%) = % % Profitability: Rate of Return on Assets Net farm income (F) Farm interest expense + Value of labor and management - Return on farm assets = Total farm assets Rate of return on farm assets (%) = % % Profitability: Rate of Return on Equity Net farm income (F) Value of labor and management - Return on farm equity = Total farm net worth Rate of return on farm equity (%) = % % Repayment Capacity: Term Debt Coverage Ratio Net farm income (F) Depreciation expense (D) + Interest on term debt + Personal income + Family living expense - Income taxes - Capital debt repayment capacity = Scheduled payments on term debt Term debt coverage ratio = Efficiency: Asset Turnover Rate Gross farm income (B) Total farm assets Asset turnover rate (%) = % % Center for Farm Financial Management, University of Minnesota
15 Balance Sheet Timing Jan 1 Balance Sheet Schedule F Dec 31 Balance Sheet Working Capital Liquidity (working capital) is the first line of defense in an volatile environment Collateral is the second line defense
16 Farm finance scorecard Year Liquidity 1. Current ratio. Vulnerable Strong 2. Working capital $ 3. Working capital to gross revenues % 10% 25% Source: University of Vermont Extension and Center for Farm Financial Management FINBIN Liquidity Measures by Profit Group, Minnesota, 2012 Low 20% Medium 20% High 20% Current ratio Working capital 52, ,234 1,254,278 Working capital to gross revenue 16.7 % 35.2 % 51.6 %
17 Working Capital Not All Created Equal Cash conversion cycle Prepaid expenses, 1-2 years Feed, up to 1 year Grain, delivery contracts up to 9 months
18 Corn, Cash Rented, 2012 FINBIN Database, So MN Cost of production High Cost 20 % Middle 20% Low Cost 20% Yield Gross return $1,090 $1,197 $1,231 Seed Fertilizer Chemicals Rent Total costs Net return to operator lbr & mgt Cost of production Corn, Cash Rented FINBIN Database, Southern MN Projected 2014 Projected Seed Fertilizer Chemicals Fuel & drying Crop insur Rent Other Total cost
19 Corn, Cash Rent, Net Income Per Acre Assumes 2014 projected expenses Yield per Acre Price/Bu Corn, Cash Rent, Cost of Production 2014 expenses with a $55 labor & management charge /acre Yield per Acre Rent/Acre
20 Net Income, Corn, 12,000 Acres Assumes $350 cash rent Yield per Acre Price/Bu ,808,885-5,126,385-4,443,885-3,761,385-3,078, ,548,885-3,708,885-2,868,885-2,028,885-1,188, ,288,885-2,291,385-1,293, , , ,028, , ,115 1,436,115 2,591, , ,615 1,856,115 3,168,615 4,481,115 Net Income, Corn, 12,000 Acres Assumes $350 cash rent, with 80% RP $4.50 Yield per Acre Price/Bu ,708,885-3,708,885-3,708,885-3,708,885-3,078, ,708,885-3,708,885-2,868,885-2,028,885-1,188, ,288,885-2,291,385-1,293, , , ,028, , ,115 1,436,115 2,591, , ,615 1,856,115 3,168,615 4,481,115
21 Go-Go Analysis Is your credit analysis adequate? Trust but verify Sensitivity analysis Need for more frequent interaction Analyze counter-party risk Go-Go Analysis Respect your input? Provide documents when asked? Appear to understand their financials? Willing to walk for 50 basis points? Is your bank team in sync with their management style?
22 Data providers: MNSCU Farm Business Management U of MN Farm Management Associations ifsam.cffm.umn.edu
Year End Balance Beginning Balance 12/31/2015 1/1/2015 Crops and Feed Hay 0 0 Silage 0 0 Grain 0 0
Page 1 Year End Balance Beginning Balance 12/31/2015 1/1/2015 Crops and Feed Hay Silage Grain Livestock Held for Sale Steers Accounts Receivable Rusty's Restaurant 0 600 Total 0 600 Other Inventory Ground
More informationFarm Income Statement 2015 Moorhead Farm Business Management Annual Report (Farms Sorted By Net Farm Income) Number of farms
Farm Income Statement Cash Farm Income Barley 5,929 2,010 - - 12,581 14,753 Beans, Black Turtle 350 - - - - 1,723 Beans, Navy 3,627 13,512 - - 5,385 - Corn 168,160 172,777 84,655 79,253 289,902 214,568
More informationAVERAGE GRAIN FARMER 5/18/2018 KENTUCKY BUSINESS FARM ANALYSIS BALANCE SHEET For Year Ending December 31, 2017
BALANCE SHEET Current Assets Current Liabilities Bank Balance 89,593 Accounts Payable with Merchants & Dealers 37,635 Savings & CD's 58,735 Lease Payment 6,706 Hedging Account Balance 5,836 Feed Accounts
More informationDairy Grazing Farms in Michigan, Sherrill B. Nott. Staff Paper # October, 2002
Staff Paper Dairy Grazing Farms in Michigan, 2001 by Sherrill B. Nott Staff Paper #2002-30 October, 2002 Copyright: 2002 by Sherrill B. Nott. All rights reserved. Readers may make verbatim copies of this
More information2009, University of Minnesota
An online workshop series to help producers interpret and use financial information in managing their farm or ranch business Financial statements Financial ratios and measures Goals Help producers understand
More information2006 Michigan Cash Grain Farm Business Analysis Summary. Eric Wittenberg And Stephen Harsh. Staff Paper December, 2007
2006 Michigan Cash Grain Farm Business Analysis Summary Eric Wittenberg And Stephen Harsh Staff Paper 2007-11 December, 2007 Department of Agricultural Economics MICHIGAN STATE UNIVERSITY East Lansing,
More information2005 Michigan Feeder Steers Business Analysis Summary. Eric Wittenberg and Roy Black. Staff Paper December, 2006
2005 Michigan Feeder Steers Business Analysis Summary Eric Wittenberg and Roy Black Staff Paper 2006-31 December, 2006 Department of Agricultural Economics MICHIGAN STATE UNIVERSITY East Lansing, Michigan
More information2010 Michigan Upper Peninsula Dairy Business Analysis Summary. Eric Wittenberg And Christopher Wolf. Staff Paper December, 2011
2010 Michigan Upper Peninsula Dairy Business Analysis Summary Eric Wittenberg And Christopher Wolf Staff Paper 2011-12 December, 2011 Department of Agricultural, Food, and Resource Economics MICHIGAN STATE
More information2009 Michigan Upper Peninsula Dairy Business Analysis Summary. Eric Wittenberg And Christopher Wolf. Staff Paper December, 2010
2009 Michigan Upper Peninsula Dairy Business Analysis Summary Eric Wittenberg And Christopher Wolf Staff Paper 2010-08 December, 2010 Department of Agricultural, Food, and Resource Economics MICHIGAN STATE
More informationCredit Analysis Solutions AGRICULTURE
Credit Analysis Solutions AGRICULTURE University of Minnesota 130 Ruttan Hall 1994 Buford Avenue St. Paul, Minnesota 55108 Phone: (612) 625-1964 Toll-Free: (800) 234-1111 Fax: (612) 625-3105 Email: FINPACK@umn.edu
More information2002 Michigan Dairy Farm Business Analysis Summary. Staff Paper No November Eric Wittenberg and Christopher Wolf
2002 Michigan Dairy Farm Business Analysis Summary Staff Paper No. 03-14 November 2003 by Eric Wittenberg and Christopher Wolf Copyright 2003 by Eric Wittenberg and Christopher Wolf. Readers may make verbatim
More informationFinancial Planning and Cash Flow Budgeting for 2006
Financial Planning and Cash Flow Budgeting for 2006 Hands-on Applications By Paul Ellinger and Bruce Sherrick Outline FAST Tools overview Benefits of financial planning Components of financial plan Getting
More informationEvaluating the Financial Viability of the Business
Evaluating the Financial Viability of the Business Just as it is important to construct a new building on a strong foundation, it is important to build the economic future of your business on a sound financial
More informationFarm Financial Management Case: Mayer Farm 2013
Farm Financial Management Case: Mayer Farm 2013 The Mayer Farm Case is provided to you as an alternative to using your own financial data. Using the Mayer Farm Case data you can complete the following
More informationAccrued rents & Lease payments Other (including relatives)
Balance Sheet Financial Statement Name: As Of: Name Home Phone: Address: Email Address First Merchants Bank SSN# Cell Phone: SSN# Cell Phone: Current Assets Market Value Current Liabilities Market Value
More informationCurrent assets include cash, bank accounts, crops, livestock, and supplies that will normally be sold or used within a year.
Farm Financial Management Your Net Worth Statement Would you like to know more about the current financial situation of your farming operation? A simple listing of the property you own and the debts you
More informationEnding Balance Sheet Page 13 of 21
Farm Name Ending Balance Sheet Page 13 of 21 Current Assets Ending Balance Sheet Date: / / 201 Schedule A: Cash, Savings, and Checking Farm cash, checking and savings account balances as of the balance
More informationIntroduction January 10, 2019
Introduction January 10, 2019 Michael Langemeier Department of Agricultural Economics Purdue University Purdue.edu/commercialag White County Farms Enterprises Corn; 1,500 acres Soybeans; 1,500 acres Owned
More informationA B C D E F G H I Dairy Code: XXX Dairy Business Analysis Project version 8/19/2002 Page 1 Dairy Description /16/2002
1 1 1 1 0 1 0 1 A B C D E F G H I Dairy Code: XXX Dairy Business Analysis Project version /1/00 Page 1 Dairy Description 001 /1/00 Milk Production Prod. Record. System Milking System Milking Frequency
More informationDairy Proforma Calculator (DPC) Instructions Gary G. Frank, Center for Dairy Profitability, UW-Madison August 1, 1998
Dairy Proforma Calculator (DPC) Instructions Gary G. Frank, Center for Dairy Profitability, UW-Madison August 1, 1998 When loading DPC and this message appears, click the No button. Worksheet Appearance
More informationWorksheet 1* Historic and Projected Out-of-Pocket Cost of Production
Worksheet 1* Historic and Projected Production Records used for a sole proprietorship with most of the income coming from the dairy enterprise: Federal Income Tax Schedule F, Form 4797, year beginning
More informationWelcome to a brief discussion of income statements. The income statement is a critical record-keeping tool in evaluating the profitability of your
Welcome to a brief discussion of income statements. The income statement is a critical record-keeping tool in evaluating the profitability of your business. As with the other statements, you may choose
More informationFarm Financial Risk Management: Introduction to Farm Financial Statements for New and Beginning Farmers
Farm Financial Risk Management: Introduction to Farm Financial Statements for New and Beginning Farmers Kim Morgan, Assistant Professor, Agricultural and Applied Economics, Virginia Tech; Peter Callan,
More informationGary A. Hachfeld, David B. Bau, & C. Robert Holcomb, Extension Educators
Balance Sheet Agricultural Business Management Gary A. Hachfeld, David B. Bau, & C. Robert Holcomb, Extension Educators Financial Management Series #1 6/2017 A complete set of financial statements for
More informationIncome Statement. Are you making a profit? Income Statement Adjustments
The Farm Financial Standards Committee recommends four measures of profitability: 1. Net Farm Income 2. ROA 3. ROE 4. OPMR Income Statement Are you making a profit? The income statement is used to determine
More informationChapter 11- Analizing Quicken Farm Records with FINPAK Chapter 11- Analyzing Quicken Farm Records with FINPACK
Chapter 11- Analyzing Quicken Farm Records with FINPACK FINPACK is a computerized farm financial planning and analysis system. It will help you evaluate your financial situation, explore alternatives,
More informationFile: Organic_Dairy_Transition User: Tim Beck, Penn State Cooperative Extension FINPACK Printed 11/05/2007 3:18:10 PM
Organic_Dairy_Transition FINLRB: Options File: Organic_Dairy_Transition User: Tim Beck, FINPACK Printed 11/05/2007 3:18:10 PM PLAN DESCRIPTION Buy Corn $25 Milk $27 Milk $29 Milk Organic Total crop acres
More information2.1. A Brief History of Our Farm Operation
.1 A Brief History of Our Farm Operation Write a brief history describing the important events and decisions in your life and operation.why did you make the choices you did? What have been the most important
More informationManagerial Accounting Using QuickBooks Pro TM
Managerial Accounting Using QuickBooks Pro TM This manual is intended as a reference in furthering knowledge of management accounting for agricultural producers using QuickBooks Pro TM. Historically, agricultural
More information2017 Iowa Farm Business Management Career Development Event. INDIVIDUAL EXAM (150 pts.)
2017 Iowa Farm Business Management Career Development Event INDIVIDUAL EXAM (150 pts.) Select the best answer to each of the 75 questions to follow (2 pts. ea.). Code your answers on the answer sheet provided.
More informationSECTION B: SUMMARIZATION AND ANALYSIS Page B-1
SECTION B: SUMMARIZATION AND ANALYSIS Page B-1 This section of the Oklahoma Farm and Ranch Account Book provides for the summarization and analysis of the farm or ranch s financial and production data
More information2015 Iowa Farm Business Management Career Development Event. INDIVIDUAL EXAM (150 pts.)
2015 Iowa Farm Business Management Career Development Event INDIVIDUAL EXAM (150 pts.) Select the best answer to each of the 75 questions to follow (2 pts. ea.). Code your answers on the answer sheet provided.
More informationJOHN AND MARY FARMER (Farm Business Only) BALANCE SHEET AS OF 12/31/X1 AND 12/31/X2
JOHN AND MARY FARMER (Farm Business Only) ASSETS 12/31/X2 12/31/X1 12/31/X2 12/31/X1 LIABILITIES Cash $ 101,743 $ 113,421 Accounts Payable $ 6,578 $ 0 Inventories (Schedule 1) 180,581 149,557 Notes Due
More informationIf you have any questions, please contact (VACC Loan Officer) At: Telephone: Mail your completed application package to:
VERMONT ECONOMIC DEVELOPMENT AUTHORITY Vermont Agricultural Credit Corporation Vermont Small Business Loan Program Vermont 504 Corporation Dear VACC loan applicant, Thank you for choosing VACC for your
More informationBUSINESS SUMMARY DAIRY FARM NORTHERN NEW YORK REGION 2004 AUGUST 2005 E.B
AUGUST 2005 E.B. 2005-07 DAIRY FARM BUSINESS SUMMARY NORTHERN NEW YORK REGION 2004 Wayne A. Knoblauch Linda D. Putnam Jason Karszes Peggy Murray Frans Vokey Molly Ames William Van Loo Department of Applied
More informationNet farm income is an important
File C3-26 September 2016 www.extension.iastate.edu/agdm Converting Cash to Accrual Net Farm Income Net farm income is an important measure of the financial success of a farm business in a given year.
More informationNEW YORK DAIRY FARM RENTERS 2011
OCTOBER 2012 E.B. 2012-13 NEW YORK DAIRY FARM RENTERS 2011 Wayne A. Knoblauch Linda D. Putnam Charles H. Dyson School of Applied Economics and Management College of Agriculture and Life Sciences Cornell
More informationBalance Sheets- step one for your 2018 farm analysis
Page 1 of 21 Name Address Phone Email Balance Sheets- step one for your 2018 farm analysis The farm s balance sheet is a snapshot, on one day in time, of what the farm business owns, (its assets), and
More informationNEW YORK DAIRY FARM DECEMBER 2010 E.B Wayne A. Knoblauch Linda D. Putnam
DECEMBER 2010 E.B. 2010-18 NEW YORK DAIRY FARM RENTERS 2009 Wayne A. Knoblauch Linda D. Putnam Charles H. Dyson School of Applied Economics and Management College of Agriculture and Life Sciences Cornell
More informationA Financial Analysis Program That Will PASS the Farm Manager Interest Test
A Financial Analysis Program That Will PASS the Farm Manager Interest Test By Christine Wilson, Freddie Barnard, and Michael Boehlje Abstract This paper discusses a farm financial analysis program, along
More informationAPPENDIX A: EXAMPLE FINANCIAL STATEMENTS
APPENDIX A: EXAMPLE FINANCIAL STATEMENTS This Appendix contains an example of financial statement formats that are intended to assist the reader in the interpretation of the Report. It is impossible for
More informationModule 5 Preparing Agricultural Financial Statements: The Income Statement and Cash Flow Module Outline
Module 5 Preparing Agricultural Financial Statements: Module Outline Introduction Income Statement Overview Cash Income Statement What is not included on an income statement? Roadside Chat #1 Limitations
More informationODAP-S. Ontario Data Analysis Project - Swine FARM SUMMARY. For 2002 Tax Year. Prepared by: Lynn Marchand. Economics and Business Section
ODAP-S Ontario Data Analysis Project - Swine FARM SUMMARY For 22 Tax Year Prepared by: Lynn Marchand Economics and Business Section RIDGETOWN COLLEGE, UNIVERSITY OF GUELPH DECEMBER 23 TABLE OF CONTENTS
More informationModule 4 Preparing Agricultural Financial Statements: The Balance Sheet. Module Outline
Module 4 Preparing Agricultural Financial Statements: The Balance Sheet Introduction Roadside Chat #1 Balance Sheet Considerations Timing Balance Sheet Assets Liabilities Owner Equity Road Test #1 Assets
More informationFinance Implications of Intergenerational Transfer of US Farms. Freddie Barnard and Elizabeth Yeager. Introduction
Finance Implications of Intergenerational Transfer of US Farms Freddie Barnard and Elizabeth Yeager Introduction Background The intergenerational transfer of capital assets can be accomplished through
More informationBUSINESS SUMMARY DAIRY FARM HUDSON AND CENTRAL NEW YORK REGION June 2015 E.B
DAIRY FARM BUSINESS SUMMARY June 2015 E.B. 2015-07 HUDSON AND CENTRAL NEW YORK REGION 2014 You can t manage what you can t measure. But if you measure it, you can improve it! Wayne A. Knoblauch Cathryn
More informationIncome Statement-A Financial Management Tool
Income Statement-A Financial Management Tool Robin Reid (robinreid@ksu.edu) and Kevin Herbel (kherbel@ksu.edu) Revision of MF-294 by Dr. Michael Langemeier Kansas State University Department of Agricultural
More informationSession Objectives. The Balance Sheet. Basic Financial Framework Business Abilities & Financial Statements 11/23/2015
Session Objectives Introduction to Financial Statement Learn the 5 essential financial statements necessary for planning and monitoring farm profitability. Chris Bruynis, Assistant Professor & Extension
More informationPERSONAL TAX INFORMATION WORKSHEET
PERSONAL TAX INFORMATION WORKSHEET Please check the appropriate box: Date Received: I need my taxes done early for my child s financial aid. Most of the information needed to complete this form can be
More informationBUSINESS SUMMARY DAIRY FARM NORTHERN NEW YORK REGION 2010 SEPTEMBER 2011 E.B
DAIRY FARM BUSINESS SUMMARY SEPTEMBER 2011 E.B. 2011-07 NORTHERN NEW YORK REGION 2010 You can t manage what you can t measure. But if you measure it, you can improve it! Wayne A. Knoblauch Linda D. Putnam
More informationNEW YORK DAIRY FARM RENTERS 2004
DECEMBER 2005 E.B. 2005-16 NEW YORK DAIRY FARM RENTERS 2004 Wayne A. Knoblauch Linda D. Putnam Department of Applied Economics and Management College of Agriculture and Life Sciences Cornell University,
More informationABC Farms 1/1/2013 Balance Sheet
ABC Farms 1/1/2013 Balance Sheet Current Assets Value Current Liabilities Balance Cash and checking 65,579 Prepaid exp. & suppl. (Schd B) 112,225 Growing crops - Accounts receivable - Hedging accounts
More informationBalance Sheets- step one for your 2016 farm analysis
1 of 12 Name Address Phone Email Balance Sheets- step one for your 2016 farm analysis The farm s balance sheet is a snapshot, on one day in time, of what the farm business owns, (its assets), and what
More informationCopyright 2005 by Cornell University. All rights reserved.
DAIRY FARM BUSINESS SUMMARY OCTOBER 2005 E.B. 2005-13 CENTRAL VALLEYS REGION 2004 Wayne A. Knoblauch Jason Karszes Charles Z. Radick Dan Welch Linda D. Putnam Department of Applied Economics and Management
More information2017 MN State Farm Business Management Exam MULTIPLE CHOICE (Score 2 points per question)
2017 MN State Farm Business Management Exam MULTIPLE CHOICE (Score 2 points per question) Select the most correct answer and bubble it in on your scantron. 1. When local basis increases, it is an indication
More informationNEW YORK DAIRY FARM OCTOBER 2008 E.B Wayne A. Knoblauch Linda D. Putnam
OCTOBER 2008 E.B. 2008-23 NEW YORK DAIRY FARM RENTERS 2007 Wayne A. Knoblauch Linda D. Putnam Department of Applied Economics and Management College of Agriculture and Life Sciences Cornell University,
More informationBUSINESS SUMMARY DAIRY FARM HUDSON AND CENTRAL NEW YORK REGION August 2013 E.B
DAIRY FARM BUSINESS SUMMARY August 2013 E.B. 2013-15 HUDSON AND CENTRAL NEW YORK REGION 2012 You can t manage what you can t measure. But if you measure it, you can improve it! Wayne A. Knoblauch George
More informationSession 5: Financial Management
Session 5: Financial Management Session 4: Enterprise Budget Develop enterprise budget Decide on Production System How did they decide on pricing Where will they market Fixed cost Revenue = Price X Quantity
More informationBalance Sheet and Schedules
Balance Sheet and Schedules CURRENT ASSET SCHEDULE DOLLAR VALUE CASH AND EQUIVALENTS A $ MARKETABLE EQUITIES B $ ACCOUNTS RECEIVABLE C $ MARKET LIVESTOCK $ PRODUCE OR BY-PRODUCTS $ CROP INVENTORY D $ CROP
More informationCASH RENT WITH BONUS LEASING ARRANGEMENT: DESCRIPTION AND EXAMPLE
FEFO 11-17 September 27, 2011 CASH RENT WITH BONUS LEASING ARRANGEMENT: DESCRIPTION AND EXAMPLE A cash rent with bonus leasing arrangement is a variable cash rent lease that has a base rent and the potential
More informationCost Concepts Key Questions Chapter 9, pp
Cost Concepts Key Questions Chapter 9, pp. 137-141 How do operating and ownership costs differ? How are ownership costs calculated? In the short run? In the long run? How do cash and noncash costs differ?
More informationCrop Cash Flow and Enterprise Information - step two for your 2017 farm analysis
Name Address County Phone Email Operator #1 Year Born Year Started Farming Operator #2 Year Born Year Started Farming Operator #3 Year Born Year Started Farming Crop Cash Flow and Enterprise Information
More informationAgricultural Accounting
Agricultural Accounting Steven M. Bragg Chapter 1 Introduction to Agricultural Accounting... 1 Learning Objectives... 1 Introduction... 1 A Note on Terminology... 1 The Economic Entity Concept... 1 Financial
More informationStatement of Assets Client: as of. Current Assets. INTERMEDIATE ASSETS: Breeding Livestock. Market Livestock. Farm Machinery
Statement of Assets as of Current Assets Current Assets Cash on hand Investments Accounts Receivable Supplies Prepaid Expenses Growing Crops Current Assets Grain & Hay Inventory Grain & Hay on Hand Quantity
More information2017 Farm Tax Organizer Gurr & Company LLC
2017 Farm Tax Organizer Gurr & Company LLC Here is your tax organizer to assist you in gathering the information necessary information for your Schedule F "Farm" tax return for 2017. The Internal Revenue
More informationNET WORTH STATEMENT - FARMERS AND RANCHERS Name: Date of Statement: Valuation Method: Market Cost
NET WORTH STATEMENT - FARMERS AND RANCHERS Name: Address: Phone: Date of Statement: Valuation Method: Cost Note: This net worth statement should be filled in as a single entity. If you are able to separate
More informationFinance 411. Presented By: Dawn Edmonds & Angela Barsuglia
Finance 411 Presented By: Dawn Edmonds & Angela Barsuglia Finance 411 What is Farm Credit East and what services does it provide? A non-depository farm bank Operating, Capital, and Farm Ownership Loans
More informationODAP-S. Ontario Data Analysis Project - Swine FARM SUMMARY. For 2003 Tax Year. Prepared by: Lynn Marchand. Economics and Business Section
ODAP-S Ontario Data Analysis Project - Swine FARM SUMMARY For 2003 Tax Year Prepared by: Lynn Marchand Economics and Business Section RIDGETOWN COLLEGE, UNIVERSITY OF GUELPH DECEMBER 2004 TABLE OF CONTENTS
More information2014 Dairy Farm Business Summary
Cornell Cooperative Extension Prepared by Department of Applied Economics and Management Cornell University 214 Dairy Farm Business Summary Farm Educator 2/8/215 Progress of the Farm Business SELECTED
More informationTotal Tax If you have church employee income, see page 2 of the instructions before you begin.
Form 00-SS U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Department
More informationRevenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2011 through 2016, Projected 2017 and 2018
CROP COSTS Department of Agricultural and Consumer Economics University of Illinois Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2011 through 2016, Projected 2017 and
More informationFarm Business Analysis Ch.18
Farm Business Analysis Ch.18 What are the strengths and weaknesses of the farm business? How can we measure how well the farm is doing? Which farm would you prefer? Farm A Net worth $400,000 Total acres
More informationRevenue and Costs for Illinois Grain Crops, Actual for 2012 through 2017, Projected 2018 and 2019
CROP COSTS Department of Agricultural and Consumer Economics University of Illinois Revenue and Costs for Illinois Grain Crops, Actual for 2012 through 2017, Projected 2018 and 2019 Department of Agricultural
More informationAEC 851 BUDGETING ACTIVITY ANALYSIS INTRODUCTION TO BUDGETING AND
AEC 851 BUDGETING ACTIVITY ANALYSIS INTRODUCTION TO BUDGETING AND ACTIVITY ANALYSIS P Concepts presented are not complex but important to operations management < A logical way of organizing information
More informationFarm Business Planner
COMPREHENSIVE GUIDE TO FARM FINANCIAL MANAGEMENT Farm Business Planner www.saskatchewan.ca/agriculture 1 Summary Net Worth Statement This worksheet is intended to help you establish the present financial
More informationAGRICULTURAL BALANCE SHEET
AGRICULTURAL BALANCE SHEET 240 W. 4th St. P.O. 797 Colby, KS 67701 (785) 460-3321 (785) 460-9727 Fax Name(s): SSN or Tax ID No. Date: Residence Address: GENERAL INFORMATION Ownership of Assets/Liabilities
More informationAgricultural Economy in Southern Minnesota PAUL LANOUE
Agricultural Economy in Southern Minnesota PAUL LANOUE DEAN OF MANAGEMENT MINNESOTA WEST Where are we at? Variability Yields Weather Financial health Commodities Land Ownership Debt load Tax planning 2015
More information2014 Iowa Farm Business Management Career Development Event. INDIVIDUAL EXAM (150 pts.)
2014 Iowa Farm Business Management Career Development Event INDIVIDUAL EXAM (150 pts.) Select the best answer to each of the 75 questions to follow (2 pts. ea.). Code your answers on the answer sheet provided.
More informationSix Year Trend Analysis New York State Dairy Farms Selected Financial and Production Factors
January 2018 EB 2018 08 Six Year Trend Analysis New York State Dairy Farms Selected Financial and Production Factors Dairy Farm Business Summary New York State Same 128 Farms 2012 2017 Jason Karszes Dyson
More information2008 STATE FFA FARM BUSINESS MANAGEMENT CONTEST
2008 STATE FFA FARM BUSINESS MANAGEMENT CONTEST The information in this section will be used to complete the problem-solving portion of the Farm Management Test. In the balance sheet analysis, you will
More informationManaging Margins in 2017
Managing Margins in 2017 12 th Farming for the Future Conference Coalition to Support Iowa s Farmers Ames, Iowa Jan. 19, 2017 Alejandro Plastina Assistant Professor plastina@iastate.edu 515-294-6160 Chad
More informationDairy Business Analysis Project: 2007 Financial Summary 1
AN23 Dairy Business Analysis Project: 2007 Financial Summary A. De Vries, R. Giesy, M. Sowerby, and L. Ely 2 Introduction The Dairy Business Analysis Project (DBAP) was initiated in 996 by the University
More informationCash Flow Projection
Name Address City, State Preparer Cash Flow Projection Farm Financial Planning Input Forms Farm No. (3 digit) Beginning Cash Flow Date Version 1 Month Year The Cash Flow Projection Program is designed
More informationUnderstand Financial Statements and Identify Sources of Farm Financial Risk
Agricultural Finance Understand Financial Statements and Identify Sources of Farm Financial Risk By analyzing a complete set of your farm s financial statements you can identify sources and amounts of
More informationSix Year Trend Analysis New York State Dairy Farms Selected Financial and Production Factors
January 2018 EB 2018 01 Six Year Trend Analysis New York State Dairy Farms Selected Financial and Production Factors Dairy Farm Business Summary New York State Same 138 Farms 2011 2016 Jason Karszes Kayla
More informationCROP BUDGETS, ILLINOIS, 2017
CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2017 Department of Agricultural and Consumer Economics University of Illinois July 2017 Introduction
More informationCROP BUDGETS, ILLINOIS, 2019
CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2019 Department of Agricultural and Consumer Economics University of Illinois September 2018
More informationCROP BUDGETS, ILLINOIS, 2018
CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2018 Department of Agricultural and Consumer Economics University of Illinois February 2018
More information2000 Sole Proprietor Financial Summary
2000 Sole Proprietor Financial Summary KENTUCKY FARM BUSINESS MANAGEMENT PROGRAM Agricultural Economics Extension No. 2001-16 December 2001 By: GREGG IBENDAHL University of Kentucky Department of Agricultural
More informationDeveloping a Cash Flow Plan
Oklahoma Cooperative Extension Service AGEC-751 Developing a Cash Flow Plan Damona G. Doye Extension Economist and Professor A cash flow plan is a recorded projection of the amount and timing of all cash
More informationAGRICULTURAL BUSINESS AND ECONOMICS AG
Student's Name AGRICULTURAL BUSINESS AND ECONOMICS AG 0660 Directions: Rating Scale: Evaluate the trainee using the rating scale below and check the appropriate number to indicate the degree of competency
More informationA Checkup On Your Financial Health. Paul Ellinger Bruce Sherrick
A Checkup On Your Financial Health Paul Ellinger Bruce Sherrick Outline Key performance measures What lenders look at? Tools to monitor your health and assist decision making 2 Questions -- Perceptions
More informationFarm Financial Update
Farm Financial Update Tina Barrett Nebraska Farm Business, Inc. Nebraska Farm Business, Inc. The Nebraska Farm Business Association was started in 1976 as part of Cooperative Extension & The University
More informationProfitability is the primary goal of all business
Understanding Profitability File C3-24 December 2009 www.extension.iastate.edu/agdm Profitability is the primary goal of all business ventures. Without profitability the business will not survive in the
More informationThe Story of Remington Farms LLC
2015 National FFA Remington Farms LLC Resource Information Farm Business Management Career Development Event The Story of Remington Farms LLC Trevor and Emma live in the upper Midwest where they own and
More information2017 NATIONAL FFA FARM AND AGRIBUSINESS MANAGEMENT CAREER DEVELOPMENT EVENT
Participant s Name (please print clearly). Important: Before you start this portion of the event, please write your participant number and state abbreviation on the blanks provided at the top of each page.
More informationPLANNING FOR YOUR AGRIPRENEURSHIP BUSINESS
PLANNING FOR YOUR AGRIPRENEURSHIP BUSINESS 1 Creating a basic business plan: Understanding your financials Introduction: Welcome to How to Write Your Business Plan 101! As agricultural entrepreneurs, or
More informationMark Dikeman Associate Director KFMA
Mark Dikeman Associate Director KFMA Tedious requires attention to detail Complex some knowledge of accounting (and farm accounting) is needed Time consuming when more than tax records are needed A valuable
More informationFinancial Guidelines for Agriculture: An Implementation Guide for Non-Accountants
Financial Guidelines for Agriculture: An Implementation Guide for Non-Accountants October 2017 In order to avoid misunderstanding among members of the accounting profession relative to potential conflicts
More informationHow to Write a Pre-Harvest Marketing Plan
How to Write a Pre-Harvest Marketing Plan Edward Usset, Grain Marketing Economist University of Minnesota Columnist, Corn & Soybean Digest usset001@umn.edu www.cffm.umn.edu Three slides that explain the
More information