ODAP-S. Ontario Data Analysis Project - Swine FARM SUMMARY. For 2002 Tax Year. Prepared by: Lynn Marchand. Economics and Business Section

Transcription

1 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

2 TABLE OF CONTENTS 1. SUMMARY STATISTICS 2. MAP OF ODAP PARTICIPANTS 3. SELECTED DESCRIPTIVE DATA 4. PERSONALIZED FARM INCOME STATEMENT 5. PERSONALIZED FARM INVESTMENT SUMMARY 6. PERSONALIZED FARM FINANCIAL ANALYSIS 7. FINANCIAL ANALYSIS DEFINITIONS 8. PERSONALIZED REVENUE SOURCE GRAPH 9. PERSONALIZED REVENUE AND PERFORMANCE GRAPHS 1. PERSONALIZED EXPENSE GRAPHS 11. PERSONALIZED FARM ASSET GRAPH 13. PERSONALIZED DEBT AND EQUITY GRAPH 14. BREAKDOWN OF PARTICIPANTS BY CATEGORY

3 SUMMARY STATISTICS This past year 15 farrow-to-finish hog farmers participated in the Ontario Data Analysis Project (ODAPS-2). The following pages summarize selected data results from the ODAP survey for the 22 fiscal year based on the data collected from the 15 farms surveyed. 1. Size The average workable land base of the farms was 298 acres of which the participants owned 91% (271 ac) and rented or sharecropped 9% (27 ac). The average rental rate was $11/acre with a lease length of 2.7 years. The average crop mix consisted primarily of grain corn (41%), soybeans (23%), high moisture corn (23%) and winter wheat (8%). On average, participants had 43 acres available to them for the purposes of manure disposal. The survey results recorded an average of 275 sows for the farrow-to-finish farms. 2. Operator Background The average operator in the study was 48 years old with 25 years experience raising hogs. The survey showed 47% of the producers had post secondary school education. 3. Business and Management Characteristics The survey results showed the business organization structure was 53% Family Corporations, 27% Spousal Partnerships and 13% Sole Proprietors. In the next five years, 33% plan on expanding their hog enterprise and 53% plan to maintain their present size of operation. Currently, 87% of the producers use computers in the management of their operations. Financial Management for accounting purposes was the most important use of computers followed closely by Livestock Management. There were also 73% of participants who use the internet for accessing market information. The survey results of producer involvement in government programs showed 8% using Market Revenue Insurance Program, 1% signed up for Net Income Stabilization Accounts (NISA), 53% had completed Environmental Plans and 47% have completed a Nutrient Management Plan. 4. Production Information The survey results indicated the sows gave birth to an average of 2.27 litters per sow per year with 11.6 piglets born per litter. However, only 1.7 piglets were born alive per litter resulting in 9. piglets being weaned per sow. The average piglet was weaned at 22 days and weighed 6.7 kg. After 168 days, the average market hog was shipped at a live weight of kg and indexed The survey results reported 8% of the farms are using some artificial insemination (AI). The average farm shipped 78 hogs every 7 days and 8% of the producers weigh some or all of their hogs before shipping. The average farm also sold 34 weaners every 21 days. The ODAP results showed 67% of all farms use commercial suppliers for 1% of their boars and 47% for their gilts to improve or maintain their breeding stock.

4 5. Financial Characteristics The survey results indicated the average Net Income was $59,265 before income tax and excluding family labour expense. The average ending assets were $2,653,19 with ending liabilities of $998,337 and ending equity of $1,654,772 or 62.4%. The average Return on Assets was 4.5% with average Return on Equity of 3.7%. With the inclusion of an average Family Labour expense of $64,32 the average Net Income is ($5,55). The financial ratios have been calculated using Net Income excluding family labour expense. NOTICE The Pigs Produced figure is a calculated number. It will not match the reproduction figures found in a production analysis which is usually solely based on head marketed. The pigs produced number in this report is the number of market hog equivalents produced by the swine operation, taking into account all production and inventory changes. The number is standardized to represent the value of a market hog. This is done in order to get a consistent analysis of costs. Weaner pigs are converted to market hog equivalents using a factor of forty percent and SEW pigs are given a factor of twenty-five percent. Unstandardized e.g. Feed per pig Total Feed Costs $9, Market hogs produced & sold 8 Weaner pigs produced & sold 6 SEW pigs produced & sold 1 15 pigs Costs per pig (SEW, weaner, market) $9, = $6 unrealistic 15 pigs (ie. each ate $6 worth of feed) Standardized Total Feed Costs $9, Market hogs produced & sold 8 Weaner pigs produced & sold 6 x.4 = 24 market hog equivalents Nursing pigs produced & sold 1 x.25 = = 165 Cost per market hog $9, = $84.51 more realistic 165 (ie. a market hog eats $84.51 worth of feed) As you can see a more accurate analysis is achieved by standardizing.

5 LOCATION OF ODAP PARTICIPANTS BY COUNTY The following map outlines the location of ODAP participants for 22 at the County level

6 SELECTED DESCRIPTIVE DATA SURVEY ITEM Personal Information: Age of Major Decision Maker Number of Years Raising Pigs Number of Family Members Working on (full-time) Number of Non-family Members Working on (full-time) Off Income of Major Decision Maker (Full Time and Part Time) Crop Information: Acres Worked Acres Owned and Worked Rent Price Per Acre Business Organization (% of farms): Sole Proprietor Spousal partnership Family Corporation Finisher Ration Formulations - % of farms using: Purchased Complete Feed Corn and a Supplement Base Mix, Grain, Soybean meal Swine Production Information: Average Number of Sows Litters Per Sow Per Year Number Born Per Litter Number Born Alive Per Litter Weaning Age (days) Weaning Weight (kg) Number Weaned Per Litter Finishing Weight Sold (kg live) Days to Market Average Index % Hogs Contracted Swine Sales: Market Hog Sales per Sow Weaner Sales per Sow Nursing Pig Sales per Sow Total Marketings per Sow (incl. cull and breeders) Barn Capacities / % Utilization Dry sows Farrowing Weaners Grower/finisher Government Programs: Signed up for Market Revenue Signed up for NISA Completed Environmental Plan Completed Nutrient Management Plan Tillage Practices: Less Tillage Than Last Year Less Tillage Than 5 Years Ago Less Tillage Than 1 Years Ago Management Practices: Use Computer Proportion of A.I. Use BOTTOM 7 FARMS $ $113 29% 14% 57% 29% 29% 57% % % 1% 12% 97% 57% 1% 57% 29% 14% 57% 57% 71% 56% Average: $ $11 13% 27% 53% 33% 13% 6% % % 99% 98% 94% 8% 1% 53% 47% 33% 8% 8% 87% 49% TOP 8 FARMS $ $9 % 38% 5% 38% % 63% % % 98% 94% 91% 1% 1% 5% 63% 5% 1% 1% 1% 43% (1) FARMS RANKED BY NET FARM INCOME (incl Family Labour Exp)

7 FARM INCOME STATEMENT BOTTOM 7 FARMS (1) AVERAGE 15 s TOP 8 FARMS YOUR FARM PIGS PRODUCED AVERAGE # SOWS REVENUE CORN SOYBEANS WHEAT SPRING GRAINS OTHER CROPS FORAGE SWINE OTHER LIVESTOCK GOVERNMENT CUSTOM WORK OTHER FARM INCOME TOTAL CASH REVENUE CHANGE IN ACCOUNTS RECEIVABLE CHANGE IN INVENTORIES TOTAL REVENUE 3,596 4,26 4, $ $19,742 $37,16 14,366 15,993 17,417 6,327 8,282 9,994 1,3 1, , , , ,984 35,539 27,97 24,368 21,216 3,17 1, ,77 42,855 64,859 63, , ,165 (5,42) 6,354 16,326 (11,853) 1,282 29,65 ================================================ 586,349 77, ,14 EXPENSES FERTILIZER PESTICIDES SEEDS AND PLANTS MACHINERY REPAIR, FUEL, VEHICLE, SMALL TOOLS STORAGE AND DRYING CROP INSURANCE, STABILIZATION, GRIP OTHER CROP EXPENSES PURCHASED FEED SWINE PURCHASES OTHER LIVESTOCK PURCHASES VET, HEALTH, DEAD STOCK REMOVAL BUILDING REPAIRS CUSTOM WORK: LIVESTOCK TRUCKING, MARKETING HIRED LABOUR UTILITIES ACCOUNTING,PROFESSIONAL, AND BANK FEES OPERATING INTEREST OTHER FARM EXPENSES TOTAL CASH OPERATING EXPENSES CHANGE IN ACCOUNTS PAYABLE OPERATING MARGIN 9,316 5,178 1,726 25, , ,863 37, ,434 8,823 4,293 8,985 23,367 18,15 6,12 1,68 7, ,792 (5,35) 126,592 12,545 8,589 11,793 29,52 3, ,319 28,786 32, ,697 19,753 4,596 13,158 39,36 21,476 7,152 4,59 27, ,365 1,688 27,719 15,37 11,574 12,726 31,83 5,623 1,321 16, ,844 27, ,53 29,316 4,861 16,81 53,354 24,426 8,55 7,2 46,71 628,99 24, ,75 BUILDING RENTAL LAND RENTAL PROPERTY TAX AND INSURANCE INTEREST (TERM AND MORTGAGE) TOTAL CASH OVERHEAD EXPENSES DEPRECIATION (2) TOTAL OVERHEAD EXPENSES TOTAL EXPENSES (excl Family Labour Exp) ,145 4,615 3,276 11,359 13,115 14,652 5,869 51,482 52,18 69,59 69,552 69,983 79,956 78,91 77, ,14 148, ,962 ================================================ 68, ,55 81,398 NET FARM INCOME (22,423) 59,265 13,743 (1) FARMS SORTED INTO TOP AND BOTTOM FARMS BY NET FARM INCOME (with Family Labour Exp Included) 2) DEPRECIATION: 2.5% OTHER ASSETS, 5% BUILDINGS, 15% MACHINERY INCLUDING TRUCKS AND CARS, 2% BARN EQUIPMENT

8 FARM INCOME STATEMENT - Including Family Labour Expense BOTTOM 9 AVERAGE TOP 1 YOUR FARMS (1) 15 s FARMS FARM PIGS PRODUCED AVERAGE # SOWS REVENUE CORN SOYBEANS WHEAT SPRING GRAINS OTHER CROPS FORAGE SWINE OTHER LIVESTOCK GOVERNMENT CUSTOM WORK OTHER FARM INCOME TOTAL CASH REVENUE CHANGE IN ACCOUNTS RECEIVABLE CHANGE IN INVENTORIES TOTAL REVENUE 3, $ 14,366 6, , ,97 3,17 17,77 63,243 (5,42) (11,853) 4, $19,742 15,993 8,282 1, ,143 18,984 24,368 1,567 42, ,134 6,354 1,282 4, $37,16 17,417 9,994 1, ,973 35,539 21, , ,165 16,326 29,65 =========== ==================================== 586,349 77, ,14 EXPENSES FERTILIZER 9,316 12,545 15,37 PESTICIDES 5,178 8,589 11,574 SEEDS AND PLANTS 1,726 11,793 12,726 MACHINERY REPAIR, FUEL, VEHICLE, SMALL TOOLS 25,98 29,52 31,83 STORAGE AND DRYING 917 3,427 5,623 CROP INSURANCE, STABILIZATION, GRIP ,321 OTHER CROP EXPENSES 7,277 12,319 16,731 PURCHASED FEED 273,863 28, ,844 SWINE PURCHASES 37,198 32,51 27,547 OTHER LIVESTOCK PURCHASES VET, HEALTH, DEAD STOCK REMOVAL 15,434 22,697 29,53 BUILDING REPAIRS 8,823 19,753 29,316 CUSTOM WORK: LIVESTOCK 4,293 4,596 4,861 TRUCKING, MARKETING 8,985 13,158 16,81 HIRED LABOUR 23,367 39,36 53,354 UTILITIES 18,15 21,476 24,426 ACCOUNTING,PROFESSIONAL, AND BANK FEES 6,12 7,152 8,55 OPERATING INTEREST 1,68 4,59 7,2 OTHER FARM EXPENSES 7,162 27,913 46,71 TOTAL CASH OPERATING EXPENSES 464, , ,99 CHANGE IN ACCOUNTS PAYABLE (5,35) 1,688 24,445 OPERATING MARGIN 126,592 27, ,75 BUILDING RENTAL LAND RENTAL PROPERTY TAX AND INSURANCE INTEREST (TERM AND MORTGAGE) TOTAL CASH OVERHEAD EXPENSES DEPRECIATION (2) TOTAL OVERHEAD EXPENSES Family Labour Expense 686 6,145 11,359 5,869 69, ,615 13,115 51,482 69, ,276 14,652 52,18 69,983 79,956 78,91 77, ,14 148, ,962 =========== ==================================== 65,829 64,32 63, TOTAL EXPENSES (incl Family Labour Exp) 674,6 775, ,398 NET FARM INCOME (88,251) (5,55) 67,743 (1) FARMS SORTED INTO TOP AND BOTTOM FARMS BY NET FARM INCOME (with Family Labour Exp Included) 2) DEPRECIATION: 2.5% OTHER ASSETS, 5% BUILDINGS, 15% MACHINERY INCLUDING TRUCKS AND CARS, 2% BARN EQUIPMENT

9 FARM BALANCE SHEET (YEAR END MARKET VALUE) BOTTOM 7 AVERAGE TOP 8 YOUR FARMS (1) 15 s FARMS FARM ASSETS CASH $7,34 $7,957 $8,529 SECURITIES 66,137 62,72 59,696 ACCOUNTS RECEIVABLE 11,625 25,144 36,974 CROPS IN STORAGE 69,64 79,978 89,55 SEED, FERTILIZER, PESTICIDE 5,683 9,399 12,65 FUEL 1, PURCHASED FEED 3,352 25,984 22,162 MARKET/FEEDER LIVESTOCK 141,5 173,541 21,97 OTHER CURRENT ASSETS 1,498 11,329 12,57 TOTAL CURRENT ASSETS 343,62 396, ,381 NISA ACCOUNT (PRODUCER ACCOUNT) 39,469 49,178 57,672 FIELD MACHINERY 152,795 15,62 148,682 BARN EQUIPMENT 143, ,134 13,358 TRUCKS 17,764 17,977 18,163 BUILDINGS 629, ,42 638,336 LAND 73,143 1,4,94 1,243,81 SWINE BREEDING STOCK 85,474 89,37 92,154 OTHER BREEDING LIVESTOCK 1,429 7,83 12,31 MARKET QUOTA 17,58 32,963 HOUSE 23, ,68 128,788 OTHER CAPITAL ASSETS 1, TOTAL CAPITAL ASSETS 2,4,779 2,256,291 2,476,364 TOTAL FARM ASSETS 2,348,381 2,653,19 2,919,745 LIABILITIES ACCOUNTS PAYABLE 24,34 28,158 31,767 INTEREST ARREARS ADVANCED PAYMENTS 17,92 8, OPERATING CREDIT 89, , ,21 CURRENT TERM/MORTGAGE DEBT 54,938 66,694 76,981 OTHER CURRENT LIABILITIES 27,891 2,85 13,255 TOTAL CURRENT LIABILITIES 213, ,81 287,4 DEFERRED TAXES 24,995 32,487 39,42 TERM DEBT 51,658 33,376 17,38 MORTGAGE 731, , ,243 TOTAL LONG TERM LIABILITIES 88, ,527 69,666 TOTAL FARM LIABILITIES 1,21,54 998, ,66 ============ ============ ============ ============ EQUITY IN FARM 1,326,877 1,654,772 1,941,68 (1) FARMS SORTED BY NET FARM INCOME (with Family Labour Exp Included)

10 FARM FINANCIAL ANALYSIS BOTTOM 7 AVERAGE TOP 8 YOUR FARMS (1) 15 s FARMS FARM ** LIQUIDITY ** WORKING CAPITAL (ENDING) $13,323 $144,7 $155,981 CURRENT RATIO (ENDING) DEBT STRUCTURE (ENDING) 2.9% 25.3% 29.4% ** SOLVENCY ** PERCENT EQUITY (ENDING) 56.5% 62.4% 66.5% DEBT TO ASSET RATIO (ENDING) DEBT TO EQUITY RATIO (ENDING) ** PROFITABILITY (PRETAX) ** NET INCOME: ENTIRE FARM ($22,423) $59,265 $13,743 RETURN ON AVERAGE ASSETS (FARM) 1.4% 4.5% 6.6% RETURN ON AVERAGE EQUITY (FARM) -1.7% 3.7% 7.% ** FINANCIAL EFFICIENCY ** DEBT PER SOW (ENDING) $3,63 $3,635 $3,639 NET FARM INCOME PER SOW ($79.68) $ $ OPERATING MARGIN $126,592 $27,719 $278,75 ** DEBT SERVICING ** DEBT SERVICING REQUIREMENT RATIO (1) FARMS SORTED BY NET FARM INCOME (with Family Labour Exp Included)

11 FINANCIAL ANALYSIS DEFINITIONS Working Capital = Current Assets (ending) - Current Liabilities (ending) Current Ratio = Current Assets (ending) : 1 Current Liabilities (ending) Debt Structure = Current Liabilities (ending) : 1 Total Liabilities (ending) Percent Equity = Equity in farm Business (ending) x 1 Total Assets (ending) Debt to Asset Ratio = Total Liabilities (ending) : 1 Total Assets (ending) Debt to Equity Ratio = Total Liabilities (ending) : 1 Owners Equity (ending) Return on Assets = Net farm Income (accrual) + Interest Paid (all) x 1 Total Assets (average beg. & end.) Return On Equity = Net Income (accrual) X 1 Owners Equity (average beg. & end.) Debt per Sow = Total Liabilities (ending) Average # of Sows Net Income per Sow= Net Income (before Income Tax) Average # of Sows Operating Margin = Total Revenue - Operating Expenses Debt Servicing = Principal + Interest Paid (All) : 1 Requirement Total Revenue Depreciation = 2.5% on other capital assets, 5% on buildings, 15% on machinery including trucks & cars and 2% on barn equipment

12 FINANCIAL ANALYSIS: DEFINITIONS EXPLAINED Liquidity Liquidity is a measurement of the ability to generate cash without disrupting the operations of the business. Asset items which are easily sold, such as grain and livestock, increase liquidity while machinery, breeding stock, and land which are assets more difficult to sell quickly, decrease liquidity. Three measures of liquidity have been calculated: 1) Working Capital = Current Assets (ending) - Current Liabilities (ending) 2) Current Ratio = Current Assets (ending) : 1 Current Liabilities (ending) eg. 2.4 : 1 means you have $2.4 in liquid (current) assets for every dollar you owe in the next 12 months (current debt). 3) Debt Structure = Current Liabilities (ending) x 1 Total Liabilities (ending) eg. 28 % indicates that 28 % of your liabilities are due within one year. Solvency Solvency is a term which measures the ability of a business to pay its debt. When a business cannot repay its entire debt, it is said to be technically insolvent. Three measures of solvency have been calculated: 1) Percent Equity = Equity in Business (ending) x 1 Total Assets (ending) eg. 69 % signifies that you actually own 69 percent of the total assets of the business. 2) Debt To Asset Ratio = Total Liabilities (ending) : 1 Total Assets (ending) eg..31 :1 indicates that for every dollar of assets, 31 cents is represented by debt and 69 cents by equity. 3) Debt to Equity Ratio = Total Liabilities (ending) : 1 Owners Equity (ending) eg..6 : 1 tells you that for every dollar you have in equity (paid assets), you have 6 cents still owing in farm liabilities (unpaid assets).

13 Profitability Three measurements of profitability have been calculated: 1) Net Income (before income tax) = Total Income - Total Expenses 2) Return On Assets = Net Income (accrual) + Interest Paid (all) x 1 Total Assets (average beg & end) eg % ROA indicates that for every dollar in assets controlled by the business 11.9 cents is available to pay a return to the owners of the assets. 3) Return On Equity = Net Income (accrual) x 1 Owners Equity (average beg & end) eg. 1.8% shows that for every dollar of business equity, 1.8 cents is available to pay a return to the owners of the equity.. This represents a 1.8% return on paid assets. Financial Efficiency To determine financial efficiency we look at the following measurements: 1) Average Debt per Sow = Total Liabilities Average # of Sows 2) Net Income per Sow = Net Income (before income tax) Average # of Sows 3) Operating Margin = Total Revenue - Operating Expenses Debt Servicing This is used as an indicator to show exactly how much of the farm's gross revenue is used towards debt repayment. Debt Servicing Requirement = Principal + Interest Paid (All) : 1 Total Revenue eg..27 : 1 would tell us that of every dollar of revenue taken in, 27 cents of it is used towards debt repayment (includes principal & interest).

14 FARM CASH REVENUE SOURCES Average $754,134 Total Cash Revenue Your : Total Cash Revenue

15 INCOME SUMMARY ** Taken from Swine Enterprise Average: 4,26 Pigs Produced Your : 8,18 Pigs Produced SELECTED PERFORMANCE VARIABLES AVERAGE ,

16 FEED vs NON-FEED EXPENSES * * Expenses are tabulated from the SWINE ENTERPRISE NON-FEED EXPENSES NOTES ON EXPENSE CATEGORIES: 1. "INTEREST" includes OPERATING, TERM, and MORTGAGE. 2. "OTHER" includes ACCOUNTING/PROFESSIONAL, MARKETING/TRUCKING, TAXES/INSURANCE, and CHANGES IN ACCOUNTS PAYABLE 3. "DEPRECIATION" includes ALL SWINE ASSET DEPRECIATION, plus BUILDING RENTAL and CUSTOM WORK 4. "BARN AND EQUIPMENT" includes UTILITIES, FUEL, REPAIRS, and VEHICLE EXPENSES 163

17 ENDING FARM ASSETS Mkt/Fdr Livestock Inventory Breeding Herd Machinery & Equipment Buildings Land Other TOTAL Survey Average: Per Sow Per Pig Prod'd $173,541 $632 $41 $116,144 $423 $27 $96,12 $35 $23 $29,712 $1,58 $68 $634,42 $2,38 $149 $1,4,94 $3,656 $236 $338,456 $1,232 $79 $2,653,19 $9,659 $623 BOTTOM 7 (by NFI) Per Sow Per Pig Prod'd $141,5 $51 $39 $16,989 $38 $3 $86,93 $39 $24 $314,153 $1,116 $87 $629,134 $2,236 $175 $73,143 $2,594 $23 $34,1 $1,28 $95 $2,348,381 $8,345 $653 TOP 8 (by NFI) Per Sow Per Pig Prod'd $21,97 $752 $42 $124,155 $462 $26 $14,185 $388 $22 $27,22 $1,5 $56 $638,336 $2,375 $132 $1,243,81 $4,628 $257 $337,96 $1,254 $7 $2,919,745 $1,864 $63 Your Per Sow Per Pig Prod'd

18 ENDING FARM DEBT AND EQUITY L I A B I L I T I E S CURRENTMEDIUM TERM LONG TERM TOTAL DEBT EQUITY Survey Average: Per Sow Per Pig Prod'd $252,81 $92 $59 $33,376 $122 $8 $712,15 $2,593 $167 $998,337 $3,635 $234 $1,654,772 $6,25 $388 BOTTOM 7 (by NFI) Per Sow Per Pig Prod'd $213,279 $758 $59 $51,658 $184 $14 $756,568 $2,688 $21 $1,21,54 $3,63 $284 $1,326,877 $4,715 $369 TOP 8 (by NFI) Per Sow Per Pig Prod'd $287,4 $1,69 $59 $17,38 $65 $4 $673,285 $2,55 $139 $978,66 $3,639 $22 $1,941,68 $7,225 $41 Your Per Sow Per Pig Prod'd $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

19 Breakdown of Participants by Category Below is a breakdown of participants by various categories for 22. Average # Sows/ <1 sows sows sows 5 >4 sows 2 participants " " " Total Marketings Per Sow (hogs, weaners, SEW, brdg stock, cull) <18 pigs 2 participants pigs pigs 4 >21 pigs 5 NFI Including Family Labour Expense <$1, 1 participants $1,-$25, 1 $25,-$5, 1 >$5, 3 Total Family Labour Expense <$25, 1 participants $25,-$5, 5 $5,-$75, 6 >$75, 3 Total Pigs Produced Per Sow (market hog equivalents-see def'n in Summary Statistics) <18 pigs 6 participants pigs pigs 6 >21 pigs 3 NFI Excluding Family Labour Expense <$1, 5 participants $1,-$25, 1 $25,-$5, 1 >$5, 8 Total Family Labour Expense/Sow <$2/sow 4 participants $2-$4/sow 7 $4-$6/sow 3 >$7/sow 1 Family Labour Expense = # Full time equivalents x $36,/person