1 Annual Report 2014 A Co-operative Project of: Canadian Dairy Commission Dairy Farmers of Ontario Released July 2015
2 -2- ACKNOWLEDGEMENT This report is indebted to the 65 dairy producers who willingly participated in the Project during 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 RESULTS 7-3- List of Tables Table 1 FARM REVENUE AND EXPENSES; Table 2 FARM BALANCE SHEET; DECEMBER 31, Table 3 BASIC FARM PRODUCTION PARAMETERS; 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 Table A.1 FARM REVENUE, EXPENSES AND NET INCOME; 2005 TO Table A.2 SAMPLE CHARACTERISTICS; 2005 TO APPENDIX B SAMPLE DESIGN AND CHARACTERISTICS 15 B.1 Project Methodology 15 B.2 Sample Selection 15 B.3 Enrolment Procedure 17 B.4 Labour Data Collection 17 Table B.1 SAMPLE COMPOSITION AND STRUCTURE; APPENDIX C ACCOUNTING PROCEDURES 18 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
4 Table C.1 LIVESTOCK INVENTORY VALUES; Table C.2 CROP INVENTORY AND TRANSFER VALUES ON A PER TONNE BASIS; Listing Of Graphs Graph A.1 AVERAGE REVENUE, EXPENSES AND NET INCOME; 2005 to
5 -5- 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 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: -6- Barbara Ryan Gijs Cornelissen Andrew Ryzebol Jim Hanmore Technician, Western Region Technician, East Region South-West and Niagara Regions 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 Kristin Benke Jim Hanmore Senior Policy Advisor, Dairy Farmers of Ontario Economist, Dairy Farmers of Ontario 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 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 -8- Table 1 FARM REVENUE AND EXPENSES; NUMBER OF FARMS Bottom 15 Middle 35 Top 15 All 65 REVENUE $ $ $ $ Milk Sales 242, ,676 1,070, ,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 14,882 46,919 41,594 38,297 Other Farm Income 20,729 53,876 69,656 49,868 Total Cash Revenue 297, ,525 1,274, ,148 Inventory Change Dairy Enterprise ,964 1,733 1,967 Replacement Enterprise -1, ,913 1,405 Other Livestock , ,708 Feeds, Crops, Supplies -9,070-7,848-5,808-7,659 Total Farm Revenue 286, ,672 1,279, ,569 EXPENSES Dairy Cow Enterprise Cow & Bull Purchases 3,101 3,436 3,393 3,349 Commercial Feed Purchases 32,173 74, ,452 86,968 Milk & Livestock Marketing 14,594 33,155 68,096 36,935 Breeding Fees 3,246 5,743 8,770 5,865 Stable & Milkhouse Supplies 5,925 11,164 14,057 10,622 Vet. and Drugs 6,081 14,108 19,793 13,568 Other Dairy Expenses 1 6,711 15,247 29,029 16,457 Replacement Enterprise Cattle Purchases 267 1, Feed Purchases 6,789 11,755 24,663 13,588 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 6,434 15,820 24,326 15,617 Fertilizer 7,358 17,362 28,164 17,546 Sprays 2,050 6,507 9,115 6,080 Custom Work 9,185 22,118 29,019 20,726 Gas & Diesel Fuel 10,976 22,536 26,728 20,836 Machinery Repairs 12,312 25,537 31,436 23,846 Other Crop Expenses 2 2,407 5,285 4,870 4,525 Other Farm Expenses Direct Expenses Non-Dairy Livestock ,038-2,432 1,254 Direct Expenses Other Crops 7,390 15,804 25,351 16,066 Wages & Salaries 18,545 71, ,814 66,948 Land Rent 1,848 6,922 8,374 6,086 Interest Paid 24,526 37,137 89,819 46,384 Real Estate Taxes 3,516 7,225 11,160 7,277 Telephone & Hydro 11,187 17,945 23,476 17,662 Insurance 7,204 10,120 16,771 10,982 Equipment & Building Repairs 11,448 23,957 34,804 23,573 Other General Cash Expenses 4 9,619 11,966 17,074 12,603 Total Cash Expenses 232, , , ,512 Building Depreciation 7,779 20,489 37,911 21,576 Machinery Depreciation 14,569 32,162 64,539 35,574 Total Farm Expenses 254, , , ,662 Net Farm Income 31, , , ,907 1 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.
9 -9- Table 2 FARM BALANCE SHEET; DECEMBER 31, NUMBER OF FARMS Bottom 15 Middle 35 Top 15 All 65 A. WITH ASSETS AT MARKET VALUE $ $ $ $ Machinery and Equipment 261, , , ,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, , , ,001 Dairy Cows 58, , , ,874 Dairy Heifers 25,767 62, ,014 71,350 Other Livestock 2,613 4,705 3,320 3,903 Feed, Crops, Supplies, Inventory 52, , , ,712 Milk Quota 777,467 1,679,261 3,418,359 1,872,485 Total Assets 2,641,150 5,935,877 9,546,787 6,008,844 B. WITH FIXED ASSETS AT COST LESS DEPRECIATION 1 Machinery and Equipment 144, , , ,391 Personal Equipment 20,857 10,720 21,756 15,606 Land and Farm Buildings 510,176 1,148,454 2,317,081 1,270,842 Farm House & Personal Structures 52,047 90, ,126 90,343 Dairy Cows 58, , , ,874 Dairy Heifers 25,767 62, ,014 71,350 Other Livestock 2,613 4,705 3,320 3,903 Feed, Crops, Supplies, Inventory 52, , , ,712 Milk Quota 777,467 1,679,261 3,418,359 1,872,485 Total Assets 1,146,849 2,345,343 5,300,906 2,750,822 C. LIABILITIES Operating & Short-Term Trade Credit 24,485 22,111 94,556 39,377 Intermediate & Long Term Loans 248, ,543 1,829, ,736 F.C.C. Loans 351, ,426 1,180, ,855 Total Liabilities 624,529 1,156,080 3,104,141 1,482,968 D. OWNER S EQUITY (A) Assets At Market Value 2,016,621 4,779,797 6,442,646 4,525,876 (B) Fixed Assets at Cost 522,320 1,189,263 2,196,765 1,267,854 Less Depreciation 1 Depreciation was not subtracted from the cost of the farm house, land, milk quota, or personal equipment.
10 -10- Table 3 BASIC FARM PRODUCTION PARAMETERS; NUMBER OF FARMS Bottom 15 Middle 35 Top 15 All 65 Dairy Cows (hd) Open Dairy Heifers, 6 months & older (hd) Bred Dairy Heifers (hd) Milk Sold/Farm (litres) 1 285, ,658 1,295, ,021 Milk Sold/Cow (litres) 1 7,007 8,531 9,298 8,356 Butterfat Test (kg/hl) Person-Equivalents of Labour Workable Land Farmed (hectares) Average Age of Principal Operator Milk is expressed in terms of milk actually sold. 2 One hectare = 2.47 acres.
11 Table DAIRY ENTERPRISE REVENUE AND EXPENSES; PER COW - NUMBER OF FARMS Bottom 15 Middle 35 Top 15 All 65 REVENUE $ $ $ $ Milk Sales 5, , , , Quality Penalties & Levies Cows & Bulls Sold Other Dairy Livestock Sold Dairy Livestock Inventory Change Net Revenue 6, , , , 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 Expense Total Direct Expense 1, , , , DAIRY SHARE OF CROP EXPENSES Bulk Grain & Forage Purchases Seed Fertilizers Herbicides & Pesticides Custom Work Fuel & Lubricants Field Machinery Repairs Land Rent Other Crop Expense Total Crop Expense 1, , , , Returns Over Direct & Crop Expenses 3, , , , ALLOCATED INDIRECT & OVERHEAD EXPENSES Barn Equipment & Building Repairs Hired Labour Expenses Interest Expense Insurance Hydro & Telephone Taxes Other Overhead Expenses Total Indirect & Overhead Expenses 1, , , , Returns Over Expenses 1, , , , DAIRY LIVESTOCK PURCHASES Cows & Bulls Purchased Other Dairy Livestock Purchases Total Dairy Livestock Purchases Net Returns 1, , , , TOTAL LABOUR REQUIRED (Hrs) 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 DAIRY ENTERPRISE REVENUE AND EXPENSES; PER HL OF MILK SOLD - 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 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 Expense Total Direct Expense DAIRY SHARE OF CROP EXPENSES Bulk Grain & Forage Purchases Seed Fertilizers Herbicides & Pesticides Custom Work Fuel & Lubricants Field Machinery Repairs Land Rent Other Crop Expense Total Crop Expense Returns Over Direct & Crop Expenses ALLOCATED INDIRECT & OVERHEAD EXPENSES Barn Equipment & Building Repairs Hired Labour Expenses Interest Expense Insurance Telephone & Hydro Taxes Other Overhead Expenses Total Indirect & Overhead Expenses Returns Over Expenses DAIRY LIVESTOCK PURCHASES Cows & Bulls Purchased Other Dairy Livestock Purchases Total Dairy Livestock Purchases Net Returns TOTAL LABOUR REQUIRED (Hrs) 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)
13 -13- APPENDIX A Table A.1 FARM REVENUE, EXPENSES AND NET INCOME; 2005 to Year 2005 Number of Farms REVENUE $ $ $ $ $ $ $ $ $ $ Milk and Cream Sales 378, , , , , , , , , ,229 Livestock Sales 16,697 17,403 16,728 25,415 16,840 21,620 29,459 34,995 37,761 49,754 Crop Sales 24,939 28,595 31,224 27,485 25,262 33,060 47,786 66,242 43,486 38,297 Other Farm Income 33,617 37,456 39,167 30,728 33,143 38,376 34,262 51,706 55,818 49,868 Total Cash Revenue 453, , , , , , , , , ,148 Inventory Change All Enterprises 678 9,374-3,254 14,807 5,346 5,547 8,545-8,039 6,240-2,579 Total Farm Revenue 454, , , , , , , , , ,569 EXPENSES Dairy Cow Enterprise 98, , , , , , , , , ,764 Replacement Enterprise 9,608 9,479 11,355 14,076 12,045 12,096 16,865 18,490 17,455 18,226 Crops Enterprises 74,856 79,784 89,089 93,488 87,309 89, , , , ,687 Other Farm Expenses 139, , , , , , , , , ,835 Total Cash Expenses 322, , , , , , , , , ,512 Building & Machinery Depreciation 32,435 Total Farm Expenses 355,048 33,720 36,710 38,027 38,325 40,823 51,270 57,874 58,371 57, , , , , , , , , ,662 NET FARM INCOME 99, , , , , , , , , ,907 Table A.2 Sample Characteristics; 2005 to Data Year 2005 Number of Farms 75 Herd Size (head) 68.0 Milk Sales (litres) 555,512 Milk Sales Per Cow (litres) 7,842 Tillable Hectares , , , , , , , , ,021 7,975 8,252 7,971 8,054 7,853 7,937 7,893 8,152 8, Total Person Equivalents Age of Principal Operator
14 -14- Graph A Average Revenue, Expenses And Net FARM Income; 2005 to Year Revenue Expenses Net Farm Income Dollars
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 -15- 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 The second subsample consists of 14 farms recruited in late 2010 for enrolment in The third sub-sample of 16 farms was recruited in late 2011 for enrolment in The fourth sub-sample of 21 farms was recruited in late 2012 for enrolment in The fifth and final sub-sample of 13 farms was recruited in late 2013 for enrolment in 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 counties 1 included in each region of the sampling grid area are: Region 1 Glengarry, Prescott Region 2 Russell, Stormont, Dundas, Carleton Region 3 Grenville, Leeds, Carleton, Dundas Region 4 Lennox & Addington, Frontenac, Lanark, Renfrew, Carleton Region 5 Hastings, Northumberland, Peterborough, Prince Edward Region 6 York, Peel, Durham, Simcoe, City of Kawartha Lakes Region 7 Brant, Haldimand, Niagara, Norfolk, Halton, Waterloo, Wentworth, Oxford, Wellington Region 8 Oxford Region 9 Middlesex, Elgin, Lambton, Essex-Kent Region 10 Perth, Huron Region 11 Perth, Wellington Region 12 Waterloo, Wellington Region 13 Bruce, Huron Region 14 Dufferin, Grey, Wellington 1 Counties are as they were defined prior to amalgamation under regional government.
16 -16- 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; Participation by Year of Initial Enrolment REGION Total Total
17 B.3 Enrolment Procedure -17- 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: Name: Month: Year Born: WORK IN THE BARN 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. FARM # YEAR MONTH YEAR BORN PAY STAT EFFICIENCY EMPLOYEE NAME Total Hours OTHER FIELD WORK MAINTENANCE & REPAIRS FIELD MACHINERY Maintenance and repairing of fi eld 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: 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
18 C.1 Account Structure APPENDIX C ACCOUNTING PROCEDURES 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 5 (ii) Swine 0 (iii) Poultry 0 (iv) Sheep 1 (v) Other Crops 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.
19 C.3 Valuation of Fixed Assets -19- 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; ,000 or Below 5,001-7,750 Over 7,751 Description Litres/Cow/Year Litres/Cow/Year Litres/Cow/Year Beginning Ending Beginning Ending Beginning Ending ($) ($) ($) ($) ($) ($) Cows Bred Heifers Open Heifers Heifer Calves Bull Calves Note: 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.
20 -20- Table C.2 CROP INVENTORY AND TRANSFER VALUES; Per Tonne Basis - Inventory Valuation Transfer Values used for Beginning Ending Value $ $ $ Home-grown Feed: Wheat (Feed) Oats Barley Mixed Grain Grain Corn Hay Corn Silage % DM Straw Oatlage/Barlage 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).
21 (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. -21-
22 -22- (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.
CORPORATE ACCRUAL TO TAX CONVERSION WORKSHEET Taxable entities who have filed tax returns with Canada Revenue Agency (CRA) on a cash basis and have their financial statements prepared on an accrual basis
Oklahoma Cooperative Extension Service AGEC-243 Using Enterprise Budgets in Farm Financial Planning Damona Doye Regents Professor and Extension Economist Roger Sahs Extension Assistant Oklahoma Cooperative
Twelve Steps to Ag Decision Maker Cash Flow Budgeting File C3-15 How much financing will your farm business require this year? When will money be needed and from where will it come? A little advance planning
Kentucky Farm Business Management Program Annual Summary Data: Kentucky Grain Farms - 2011 Agricultural Economics Extension No. 2012-17 June 2012 By: Amanda R. Jenkins Michael C. Forsythe University of
Extension No. M M-356 ESQ No. 490 1977 Farm Business Analysis Report BEEF SUMMARY Department of Agricultural Economics and Rural Sociology Cooperative Extension Service The Ohio State University Columbus,
FARM FUNDS WORKSHEETS Setting up your Chart of Accounts Supplies Supplies are any inputs that will be used on a field, group of livestock, or equipment. Setting up a supply will set up the related expense
Livestock Budget Estimates for Kentucky - 2000 Agricultural Economics Extension No. 2000-17 October 2000 By: RICHARD L. TRIMBLE, STEVE ISAACS, LAURA POWERS, AND A. LEE MEYER University of Kentucky Department
CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2015 Department of Agricultural and Consumer Economics University of Illinois September 2015
STATISTICAL PROFILE OF CAPE BRETON Prepared By: Nova Scotia Federation of Agriculture 1.0 Introduction Agriculture in the Local Economy Agriculture in Cape Breton is characterized by a diversity of farm
Business Planning for Livestock Producers James McWhorter UF/IFAS Highlands County Livestock Agent Introduction Why create a business plan Components of a business plan Financial statements Five C s of
Farm Tax Record Book TABLE OF CONTENTS Farm Receipts... Milk Sales and Deductions Worksheet... Government Payments Worksheet... Commodity Certificates... Sale of Livestock Worksheet... Farm Expenses...0
Cash to Accrual Income Approximation With this program, the user can estimate accrual income using the Schedule F from his/her federal income tax return. Fast Tools & Resources Farmers typically report
CROP COSTS Department of Agricultural and Consumer Economics University of Illinois Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2009 through 2015, Projected 2016 Department
1 Fact Sheet 539 Assessing and Improving Farm Profitability Is my farm making money? This is a question farm managers think about often. To stay in business, the farm must generate a profit, at least in
Business Planning and Economics of Sheep Farm Establishment and Cost of Production in Nova Scotia Prepared by: Christina Jones, Economist, Nova Scotia Department of Agriculture Although care has been taken
Farming at dairy (produktion på mælkelandbrug) Process description The present data refer to production on eight typical Danish Dairy in 2000, which combines dairy and (cash) crop production in a mixed
Computerized Farm Records Peg Brune ~ Dodge, NE 402-693-2801 Email: email@example.com Agricultural Bookkeeping: Quickbooks or Quicken???? Accounting: Accountants prefer Quickbooks, mostly because a lot of
TO: FROM: Chair and Members Corporate and Emergency Committee Terri Burton Director, Emergency DATE: February 18, 2015 SUBJECT: Land Ambulance Service Delivery Options REPORT NO: CES-4-2015-5 RECOMMENDATION
Business Planning for the Allocation of Milk Quota to New Entrants The business plan should start with a comment on where the farm is currently, what is planned over the next number of years and how it
Agriculture & Business Management Notes... SPA Standardized Performance Analysis For Sheep Producers -- A Worksheet Approach -- Sheep producers have been challenged to be lower cost producers, to become
Calculating Your Milk Production Costs and Using the Results to Manage Your Expenses by Gary G. Frank 1 Introduction Dairy farms producing milk have numerous sources of income: milk, cull cows, calves,
Converting the farm s financial accounts into management Contents page Acknowledgement Useful contacts iii iii Foreword by the Chief Executive of the Tenant Farmers Association 1 Preface 2 Introduction
Ref. Ares(215)2882499-9/7/215 EU Agricultural and Farm Economics Briefs No 7 June 215 EU Milk Margin Estimate up to 214 An overview of estimates of of production and gross margins of milk production in
Agricultural Balance Sheet (Financial Statement) This form can be used as a guide to collect information for an annual financial statement or for an application for credit. If you are using the Adobe PDF
Instruction Sheet for Recordkeeping Template: The intent of this table is to provide a place for recording farm expenses that you incurred and paid in the tax year. Generally, farmers can deduct the current
CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2013 Department of Agricultural and Consumer Economics University of Illinois July 2013 Introduction
COOPERATIVE EXTENSION Bringing the University to You Special Publication 05-12 Importance & Use of Enterprise Budgets in Agricultural Operations William W. Riggs, Eureka County Extension Educator, University
THE UNIVERSITY OF TENNESSEE AGRICULTURAL EXTENSION SERVICE PB 1583 The Development and Use of Financial Statements: The Balance Sheet Robert W. Holland, Jr., Assistant Area Specialist-Farm Management Delton
CROP BUDGETS Department of Agricultural and Consumer Economics University of Illinois CROP BUDGETS, ILLINOIS, 2014 Department of Agricultural and Consumer Economics University of Illinois June 2014 Introduction
Helpsheet 232 Tax year 6 April 2013 to 5 April 2014 Farm and stock valuation A Contacts Please phone: the number printed on page TR 1 of your tax return the SA Helpline on 0300 200 3310 the SA Orderline
Tennessee Trends in Agricultural Production and Infrastructure Highlights - In many states the percentage of the state population designated by the U.S. Census Bureau as living in rural areas has declined,
Fact Sheet 541 Assessing and Improving Your Farm Cash Flow What Is Liquidity? Liquidity refers to the ability of your farm to generate enough cash to meet financial obligations as they come due without
AGRICULTURAL LOAN APPLICATION REQUESTED LOAN AMOUNT PURPOSE APPLICANT TYPE INDIVIDUAL JOINT CORPORATION PARTNERSHIP OTHER REQUESTED LOAN TYPE OPERATING LINE OF CREDIT TERM EQUIPMENT REAL ESTATE INDIVIDUAL
FINAL REPORT JULY 2015 Opioid Prescribing and Opioid-Related Hospital Visits in Ontario 2 The (ODPRN) is funded to conduct pharmacoepidemiology and drug policy research as part of an initiative to provide
September 2014 Computation of Deferred Liabilities Michael Langemeier, Associate Director, Center for Commercial Agriculture This article is one of a series of financial management articles that will examine
KANSAS FARM MANAGEMENT ASSOCIATION Your Farm - Your Information - Your Decision N E W S L E T T E R Volume 6, Issue 3 March 2012 SOURCES AND USES OF FUNDS ON KFMA FARMS A flow of funds report, often referred
Estimated Costs of Crop Ag Decision Maker Production in Iowa - 2015 File A1-20 The estimated costs of corn, corn silage, soybeans, alfalfa, and pasture maintenance in this report are based on data from
A Project Funded by USDA BFRDP Grant #10506276 Development Partners Include: Lesson 2. Cash Flow Budgets Introduction Cash flow budgets provide detail about periods when cash outflows exceed cash inflows.
GROSS MARGINS GROSS MARGINS : HILL SHEEP 2004/2005 All flocks Top third Number of flocks in sample 242 81 Average size of flock (ewes and ewe lambs) 849 684 Lambs reared per ewe 1.10 1.25 ENTERPRISE OUTPUT
AGRICULTURE FINANCIAL STATEMENT Borrower # AND LOAN APPLICATION Telephone # For the purpose of obtaining credit from Ramsey National Bank (RNB) and any future credit granted by the RNB, or to support an
Statistical Profile of Lunenburg County Prepared by the Nova Scotia Federation of Agriculture 1 Contents 1.0 Introduction... 2 Agriculture in the Local Economy... 2 2.0 Population and Population Change...
Replacement Heifers Costs and Return Calculation Decision Aids The purpose of these replacement heifer cost decision aids is to calculate total production costs and return on investment (ROI) to evaluate
Crop-Share and Cash Rent Lease Comparisons Version 1.6 Alan Miller and Craig L. Dobbins Spreadsheet can be found at http://www.agecon.purdue.edu/extension/pubs/farmland_values.asp Introduction This spreadsheet
Livestock Rental Lease NCFMEC-06A For additonal information see NCFMEC 06 (Beef Cow Rental Arrangements For Your Farm). This form can provide the landowner and operator with a guide for developing an agreement
Think Plan Do My Farm, My Plan - Planning for my Future My Farm, My Plan - Planning for my Future Name: Address: Contents Benefits of completing a plan for my farm 1 The Farm Plan 3 Stage 1: Thinking about
Your Farm Ag Decision Maker Income Statement File C3-25 How much did your farm business earn last year? Was it profitabile? There are many ways to answer these questions. A farm income statement (sometimes
Cost of Production Versus Cost of Production And then there is, Cost of Production! Ken Bolton and Gary Frank Introduction September 2009 Historically business advisors have encouraged farm managers to
Your Net Worth Ag Decision Maker Statement File C3-20 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
Tax Considerations of Farm Transfers (Revised 9 January 2013) Introduction There are alternative methods of transferring farm assets from one generation to the next. The most common methods are by sale,
Managing for Today s Cattle Market and Beyond March 2002 The Costs of Raising Replacement Heifers and the Value of a Purchased Versus Raised Replacement By Dillon M. Feuz, University of Nebraska Numerous
Replacement Heifers Costs and Return on Investment Calculation Decision Aids The purpose of this replacement heifer cost decision aid is to calculate total production costs and return on investment (ROI)
Missouri Soybean Economic Report State Analysis March 2014 The following soybean economic impact values were estimated by Value Ag, LLC, as part of a Missouri Soybean Merchandising Council funded project.
Horticulture Nursery Manager Associate degree in Horticulture or related degree. Will consider all qualified agriculture degrees. Manages nursery to grow horticultural plants, such as trees, shrubs, flowers,
Business Analysis: Which Financial Tools Should I Use? Kevin C. Dhuyvetter, Ph.D. Department of Agricultural Economics, Kansas State University 307 Waters Hall, Manhattan, KS 66506. Tel 785-532-3527; fax
Cash Flow Analysis Worksheets Trent Teegerstrom Introduction This article describes the cash budget and analysis worksheets available for downloading at the Department of Agricultural and Resource Economics
Ontario Agri Business Association Economic Impact Analysis Executive Summary Prepared by: MNP LLP October, 2013 INTRODUCTION The Ontario Agri Business Association (OABA) commissioned MNP LLP (MNP) to carry
E-19 RM-7.0 02-09 Risk Management Cash Flow Projection for Operating Loan Determination Danny Klinefelter and Dean McCorkle* A cash flow statement can be simply described as a record of the dollars coming
................................................. Guidelines for Estimating Lamb Production Costs Based on a 500-Ewe Flock December, 2013 This guide is designed to provide you with planning information
Crops, Environment and Land-Use Programme Kildalton CROPS COSTS AND RETURNS 2014 Compiled by: Tim O Donovan, Crops Specialist and Jim O Mahony, Head of Crops - KT Department Crop Margins Awareness of crop
Natural Breeding vs. Artificial Insemination: A Cost Comparison Analysis By Patrick Jacobsen Table of Contents Introduction Problem Study Assumptions Natural Breeding Costs Artificial Insemination Costs
AGRICULTURE CREDIT CORPORATION CASH WHEN YOU NEED IT MOST OVERVIEW 1) Observations on Farm Debt in Canada 2) Overview of the APP and Changes 3) Overview of the Commodity Loan Program (CLP) 90000000 Total
Science of Life Explorations Celebrate the Growing Year: The Farmer s Year A Farmer s Year While you are in school or on a vacation, farmers are working hard to provide us with the foods we eat and the
DROUGHT ASSISTANCE PROGRAMS AND TAX IMPLICATIONS OF DROUGHT INDUCED LIVESTOCK SALES Russell Tronstad 1 Government payment assistance during or after a drought is a very real possibility. Drought assistance
March, 2016 Zimbabwe National Statistics Agency Telephone: 263-4-706681/8 or 263-4-703971/7 P. O. Box C. Y. 342 Fax: 263 4 792494 Causeway, Harare Email: firstname.lastname@example.org Zimbabwe Website: www.zimstat.co.zw
Preparing Agricultural Financial Statements Thoroughly understanding your business financial performance is critical for success in today s increasingly competitive agricultural environment. Accurate records
VICTIM QUICK RESPONSE PROGRAM PROGRAM INFORMATION BOOKLET July 2007 Ministry of the Attorney General Ontario Victim Services Secretariat What Is The Victim Quick Response Program? The Victim Quick Response
Definitions of Terms used in Farm Business Management Ensure a thriving farming sector and a sustainable, healthy and secure food supply February 2010 www.defra.gov.uk Definitions of Terms used in Farm
1 Agricultural Production and Research in Heilongjiang Province, China Jiang Enchen Professor, Department of Agricultural Engineering, Northeast Agricultural University, Harbin, China. Post code: 150030
Agriculture & Business Management Notes... Preparing and Analyzing a Cash Flow Statement Quick Notes... Cash Flow Statements summarize cash inflows and cash outflows over a period of time. Uses of a Cash
Real Estate Taxes - What is the Real Estate tax rate for Wythe County? - If I sell my house during the year, who gets the tax ticket and who is responsible for the taxes? - How and when will I be assessed
2008 Farm Record Analysis Closeout Procedures December 18, 2008 ii Introduction This manual was developed to assist in the standardization of data collection and entry for Farm Business Management Annual
Characterization of the Beef Cow-calf Enterprise of the Northern Great Plains Barry Dunn 1, Edward Hamilton 1, and Dick Pruitt 1 Departments of Animal and Range Sciences and Veterinary Science BEEF 2003
Dear Loan Applicant: This loan application booklet is provided to help you in the process of applying for a Rural Assistance Loan. A brochure about the loan program is also available from the Montana Department
Waste to Energy CIBSE Presentation Patrick Grange Rural, Business and Renewable Energy Consultants Copyright CIBSE MNW Region 1 Agenda CMS UK Background to Renewables Energy from Waste CHP Units How we
Chart of accounts Explanatory guide Disclaimer Whilst all reasonable efforts have been taken to ensure the accuracy of the Chart of Accounts Explanatory Guide, use of the information contained herein is
Business Plan Dairyman Farm Bill & Mike Dairyman 1803 Foliage Hill Rd Anywhere, VT 05761 802-555-3159 email@example.com November 29, 2007 Prepared by: Bill & Mike Dairyman with technical assistance
Selwyn Te Waihora Nutrient Performance and Financial Analysis Prepared for: Irrigation NZ and ECan Prepared by: The AgriBusiness Group December 2012 Contents Selwyn Te Waihora Nutrient Benchmarking EXECUTIVE
Enterprise Budget User Guide An Accompanying Guide to the Southwest British Columbia Small-Scale Farm Enterprise Budgets Institute for Sustainable Food Systems Kwantlen Polytechnic University Technical
FACT SHEET #2015.02 COMPARISON OF FIXED-TIME ARTIFICIAL INSEMINATION VS. NATURAL SERVICE IN BEEF COWS: REPRODUCTIVE EFFICIENCY AND SYSTEM COST By: Dr. Bart Lardner, Kathy Larson MSc, and Dr. Daalkhaijav
Farm Financial Ag Decision Maker Statements File C3-56 The financial position and performance of a farm business can be summarized by four important financial statements. The relationship of these statements
Felix Guillot, EA, ABA, ATA Kendyl Guillot, ABA E-Tax, LLC 318-445-5564 etaxla.com firstname.lastname@example.org Tax Organizer Tax Year 2014 Name: Taxpayer SS No. Birthdate/ Spouse SS No. Birthdate/ Address: Telephone