Farm Business Management
2014
annual r e p o rt
Northern Minnesota April, 2015
www.fbm.mnscu.edu
A Management Education Program through AgCentric, Northern Center of Excellence for Agriculture A MEMBER OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES SYSTEM
Northern Minnesota Annual Report Instructors and Locations
Greg Dvergsten Thief River Falls (218) 686-7273
Kittson
Northland Roseau Lake of the Woods
Beltrami
Polk
Pennington
St. Louis
Norman
Clearwater
Red Lake
Ron Dvergsten Thief River Falls (218) 686-5448
Koochiching
Marshall
Cook Lake
Itasca
Mahnomen
Hubbard
Cass
Otter Tail
Aitkin
Carlton
Pine
Douglas
Morrison Stearns
Kanabec
Benton
Sherburne
Isanti
go
Grant
Greg Kalinoski Red Lake Falls (218) 686-2626
Mille Lacs
Todd
Anoka
Paul Oehlke Fergus Falls (218) 899-2690
ADawn Melbye Thief River Falls (218) 684-1047
Josh Tjosaas Moorhead (320) 583-5056
Randy Zimmerman Ulen (701) 212-6759
Ridgewater Bob Stommes Melrose (320) 256-4340
Central Lakes Nate Converse Little Falls (218) 296-1272
Thaddeus McCamant Staples (218) 894-9709
Bob Rick Staples (218) 820-8699
Lee Todnem Mora (715) 808-1268
Ed Uhlenkamp Staples (320) 360-2747
Chis a
Wadena
Wilkin
Doug Fjerstad Fosston (218) 280-8843
Becker Crow Wing
Clay
Ramsey
St. Cloud Brad Burkland St. Cloud (320) 309-3571
Ken Thiesen St. Cloud (320) 309-3293
Jim Molenaar St. Cloud (320) 308-5074
Alexandria Bill Januszewski Alexandria (218) 329-2373
2014 Annual Report Overview Farm Business Management Education has been a part of agricultural education programs in Minnesota since 1953. FBM Programs are now an integral part of the Minnesota State Colleges and University System, delivered through eight two-year colleges. In 2014, the Northern Minnesota Annual Report is being printed for the first time. The eleven year partnership between Northland Community & Technical College and Central Lakes College Farm Business Management Programs has been expanded to include Alexandria Technical & Community College, Ridgewater College, and St. Cloud Technical & Community College. A complete list of Instructors who have students with data in this report is found on the inside of the front cover. This report and two (2) other regional reports include statewide data for each of the livestock enterprises. Regional livestock enterprise information can be obtained from each of the colleges that offer Farm Business Management, or a Farm Business Management Instructor from that college. Other colleges with Farm Business Management Programs include: Minnesota West Community & Technical College, Riverland Community & Technical College, and South Central College. In 2014, the Northern Minnesota Annual Report includes data from 566 farms. The Minnesota State FBM Program database includes data from 2047 farms.
Explanation of Data Processing and Report Format This report was prepared under the direction of Ron Dvergsten and DelRay Lecy through AgCentric, Northern Center of Excellence for Agriculture. A special thank you goes to Rosemary Gustafson, Northland Community & Technical College, for her assistance. The tables in this report were created using FINPACK and RankEm Central, copyrighted software of the Center for Farm Financial Management, University of Minnesota. The financial portion of the report, found in the first 26 pages, uses a standard format for each of the tables. Data from the analysis system is printed in a four column format, which includes: Average, Low, Middle, & High. The High, Middle, & Low ranges are calculated based on a 20% slice of the farms in the total group. The enterprise tables begin on page 30. Each of these tables consist of: a size indicator, a total and per unit income, direct & overhead expenses, and other information. Costs which are considered operating, whether easily assigned or are allocated, are listed as Direct Expenses. Costs which are general in nature, whether fixed or variable, are listed as Overhead Expenses. The criteria for determining the 20% categories in each area are listed below: Analysis Section Financial Crops Livestock
Criteria to determine the "20%" categories Net Farm Income Return to Overhead Return to Overhead
NOTE: Some cover photos are courtesy of the USDA Natural Resources Conservation Service 2014 Northern Minnesota Annual Report
Page 1
Farm Business Management Education Programs
TABLE OF CONTENTS Description
Page Number
Annual Report and Data Processing Overview Table of Contents 5-Year Financial Trend Summary Average money spent by each Farmer Year at a Glance Farm Income Statement Summary Farm Income Statement Inventory Changes Balance Sheet - "Cost Value Basis" and "Market Value Basis" Definitions of Financial Standards Measures Northern Financial Standards Measures and "How does your Farm Stack Up" Minnesota Financial Profitability Measures Information Liquidity and Replacement Capacity Measures Graphic Summary of Selected Financial Guideline Measures Operator and Labor Information Household & Personal Expense Reported Nonfarm Summary Financial Summary: Selected Factors sorted by Net Farm Income Financial Summary: Selected Factors sorted by Gross Income Financial Summary: Selected Factors sorted by Type of Farm with graphs Financial Summary: Selected Factors sorted by Crop Acres Crop Production and Marketing Summary Overview of Enterprise Tables and Machine Cost per Acre Five Year Graphic History of Selected Crop Data Corn Soybeans Spring Wheat Corn Silage Hay, Alfalfa Northern Minnesota Crop Enterprises
Hay, Mixed
40-41
Hay, Grass Establish Alfalfa Hay, Pasture, and Prevented Planting Organic Crops: Corn Silage, Alfalfa Hay, and Pasture Organic Crops: Barley, Soybeans, and Corn Irrigated Crops: Corn and Corn Silage Irrigated Crops: Soybeans, Alfalfa Hay, Dark Red Kidney Beans, and Strawberries Other Crops: Barley, Oats, Seed Soybeans, and Food Soybeans Other Crops: Rye, Winter Wheat, Perennial Rye Grass Seed, and Navy Beans Dairy Cows Dairy Cows - Organic Production Dairy Cows - Sorted by Herd Size Graphic Summary of Selected Dairy Factors Statewide Dairy Cows and Dairy Replacements Combined (All Dairy) Livestock Enterprises Dairy Feeders and Dairy Finishing Dairy Replacement Heifers Beef Finishing Beef Cow-Calf Average and Sorted by Herd Size Hogs, Finish Feeder Pigs & Weaning to Finish (Contract Grower) Enterprise Trend Summary 2014 Northern Minnesota Annual Report
1 2 3 4 5 6-7 8 9 10-11 12-13 14-15 16 17 18 19 20 21 22 23 24-25 26 27 28 29 30-31 32-33 34-35 36-37 38-39
Page 2
42 43 44 45 46 47 48 49 50-51 52 53 54 55 56-57 58
59 60-61 62-63 64
Farm Business Management Education Programs
Financial Trend Summary Northern Minnesota Farm Business Management Data
Income Statement Gross Cash Farm Income Total Cash Farm Expense Net Cash Farm Income Inventory change Depreciation Net Farm Income From Operations Gain or loss on capital sales Average Net Farm Income Median Net Farm Income Profitability (Cost) Rate of Return on Assets Rate of Return on Equity Operating Profit Margin Asset Turnover Rate Liquidity & Repayment (end of year) Current Assets Current Liabilities Current Ratio Working capital Working capital to gross inc Term Debt Coverage Ratio Replacement coverage ratio Term debt to EBITDA Solvency (Market) Number of Farms Total Assets Total Liabilities Net Worth Net Worth Change Farm Debt to Asset Ratio Total Debt to Asset Ratio Change in total net worth % Nonfarm Information Net Nonfarm Income Farms Reporting Liv Expenses Total Family Living Expense Total Living, Invest, & Cap Purch
2010
2011
2012
2013
2014
375,936 313,387 62,549 57,491 -23,486 96,554 485 97,040 56,727
489,148 389,571 99,577 45,283 -29,184 115,675 1,197 116,872 66,755
609,139 473,448 135,691 94,606 -34,864 195,433 155 195,588 102,641
595,950 467,633 128,317 -16,741 -36,037 75,539 -296 75,243 27,886
658,798 522,485 136,314 18,383 -40,880 113,816 279 114,095 46,104
9.7% 15.1% 23.3% 41.8%
9.6% 14.4% 22.1% 43.7%
13.9% 22.2% 29.1% 47.7%
4.4% 4.5% 12.7% 34.6%
6.4% 8.3% 17.8% 36.2%
269,641 144,874 1.86 124,766 29.5% 2.28 1.97 -
298,668 151,495 1.97 147,173 28.0% 2.47 2.10 -
433,205 197,776 2.19 235,430 33.9% 3.24 2.79 -
320,139 190,113 1.68 130,026 27.9% 1.31 1.15 -
379,735 208,684 1.82 171,051 25.40% 1.75 1.50 2.45
408 1,287,246 625,782 661,463 89,151 51% 49% -
395 1,480,387 670,483 809,903 116,594 47% 45% -
405 1,846,773 830,038 1,016,735 174,381 47% 45% -
412 1,685,236 785,428 899,809 64,982 44% 47% -
566 2,032,113 883,164 1,148,949 111,833 44% 43% 11%
24,694 56 38,253 48,578
27,828 49 40,784 50,363
24,030 53 46,842 77,238
26,161 51 43,192 60,826
25,050 88 51,248 69,840
717 246 460 11 -
712 251 452 9 -
836 299 521 17 -
749 278 462 9 -
697 253 432 12 607
Crop Acres Total Crop Acres Total Crop Acres Owned Total Crop Acres Cash Rented Total Crop Acres Share Rent Machinery value per crop acre Working capital 235,430
300,000 200,000
35.0%
124,766 147,173
130,026
171,051
Working capital to gross inc 29.5%
20.0%
33.9% 27.9%
28.0%
25.40%
100,000 5.0%
0 2010
2011
2012
2014 Northern Minnesota Annual Report
2013
2010
2014 Page 3
2011
2012
2013
2014
Farm Business Management Education Programs
Average Money Spent by Each Farmer Where the Money was Spent:
What the Money was used for:
Amount nt
To Other Farmers
Feeder Livestock and Custom Work
$39,336 #
To Agri-Business
Seed, Fertilizer, and Chemicals Other Direct Crop Expense Purchased Feed Other Direct Livestock Expense Fuel, Lubricants & Repairs General Farm Expenses
Individuals
Hired Labor
$34,676 #
Utility Company
Utilities
$11,438 #
Lenders or Other Farmers
Use of Capital: Interest & Leases
$69,160 #
Local Government
Real Estate Taxes
Agri-Business or Other Farmers
Breeding Livestock, Machinery, Equipment, Buildings, Land, and Other.
$133,695 #
Food, Clothing, Furnishings, Education, Contributions, Medical, Gifts, Recreation, Taxes, Capital Expenditures & Investments.
$73,068 #
Household and Personal Expense
$99,945 $22,127 $106,845 $38,861 $73,223 $21,845
$5,029 #
#
Average Money Spent by Each Farmer in the Greater Community: Average Money Spent by Each Farmer in a Money Spent in Community by
Percent Spending by Category
# # # # # #
30 Yr Career: 566 Farmers:
$729,248 $21,877,440 $412,754,368
Fdr Lvstk & Cust Wk 5.4%
Family Living 10.0%
Seed, Fert, Chem 13.7%
Capital Purchases 18.3%
Other Crop Exp 3.0% Purchased Feed 14.7%
RE Taxes & Utilities 2.3% Interest & Leases 9.5% Hired Labor 4.8% 2014 Northern Minnesota Annual Report
Other Lvstk Exp 5.3% Fuel & Repairs 10.0% Page 4
Gen Farm Exp 3.0% Farm Business Management Education Programs
Year at a Glance Northern Minnesota
State FBM Data
566 Farms
2047 Farms
Gross Cash Farm Income
$658,798
$867,528
Total Cash Operating Expense
$522,485
$718,033
Net Cash Farm Income
$136,314
$149,495
Net Operating Profit
$132,946
$150,420
Net Farm Income
$114,095
$95,740
$46,104
$40,950
Data for the Average Farm
Local Area
Your Farm Data
Your Farm Goal
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Income Statement
Median Farm Income Balance Sheet (Market) Total Assets - 12/31
$2,032,113
$2,899,931
$883,164
$1,213,523
$1,148,949
$1,686,407
$111,833
$88,652
$171,051
$252,084
Debt to Asset Ratio - 12/31
44%
43%
Rate of Return on Farm Assets - Cost
6.4%
3.8%
Rate of Return on Farm Equity - Cost
8.3%
3.7%
Total Liabilities - 12/31 Net Worth - 12/31 Change in Net Worth Financial Standards Measures Working Capital - 12/31
Term Debt Coverage Ratio
1.75
1.30
Asset Turnover Rate
36.2%
35.9%
Operating Expense Ratio
73.1%
78.9%
3.9%
3.8%
Average Age of the Farmer
47.0
48.3
Average Years Farming
22.2
24.5
Total Cash Family Living Expense
$50,978
$63,584
Total Non Farm Income
$25,050
$31,013
Interest Expense Ratio Operator Information
Personal Spending & Income
Net Farm Income dollars are used to pay for Family Living, Social Security and Income Tax, Retirement Accounts, Medical and Health expenses, and loan principle payments. A positive balance indicates revenue for other uses, while a negative balance indicates a need for revenue from other sources. The following list shows expenses for the year: Net Farm Income Depreciation Family Living (Excl Health/Med) Social Security and Income Tax Health and Medical Expense Retirement Accounts Principal Payments
(+) (+) (-) (-) (-) (-) (-)
Balance
(=)
2014 Northern Minnesota Annual Report
Northern Minnesota $114,095 $40,880 $45,229 $10,256 $7,887 $1,042 $59,279 $31,282 Page 5
State Data $95,740 $56,012 $53,493 $16,833 $11,190 $5,995 $70,078 -$5,837
Farm Business Management Education Programs
Farm Income Statement Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms Number of farms
Low 20%
40 - 60%
High 20%
566
113
113
114
Barley Beans, Edible Corn Corn Silage Hay, Alfalfa Hay, Other Fruit and Vegetable Crops Organic Crops Soybeans Soybeans Food Sunflowers Oats Wheat, Spring Wheat, Winter Grass Seed Other Crop Enterprises Miscellaneous crop income Total Crop Sales
2,743 6,892 48,517 678 2,015 2,256 3,073 1,628 76,695 747 1,053 802 41,441 778 3,780 4,072 240 197,410
10,094 654 77,286 374 2,213 2,963 688 543 124,378 2,159 4,309 709 54,601 2,161 3,700 5,022 36 291,890
1,634 30,910 123 1,904 1,838 7,672 6,653 44,878 536 879 328 26,316 132 1,173 4,586 142 129,704
2,411 23,971 60,489 2,604 2,617 2,941 105,877 334 1,766 67,350 941 12,513 8,212 292,026
Sale of Livestock Beef Cow-Calf, Beef Calves Beef, Background Beef Beef, Finishing Beef Finish Cull Cows Dairy, Milk Dairy Calves Dairy Heifers (for sale) Dairy Feeders & Backgrounding Dairy Finishing Hogs, Weaning to Finish Other Livestock Enterprises Cull breeding livestock Misc. livestock income Total Livestock & Product Sales
10,184 15,706 7,378 1,760 271,628 5,002 1,446 11,760 15,308 5,645 2,205 20,925 1,204 370,151
10,264 9,630 883 4,089 37,813 574 318 441 1,328 2,379 5,974 439 74,132
8,686 7,200 6,706 542 100,250 1,675 635 1,476 13,775 1,708 9,536 701 152,890
14,428 43,827 21,335 3,950 927,656 17,475 5,306 48,008 36,678 19,732 2,799 62,221 2,538 1,205,953
Other farm income Crop government payments CRP payments Livestock govt payments Other government payments Custom work income Patronage dividends, cash Insurance income Contract livestock income Other farm income Total Other Farm Income
521 659 93 7,138 15,171 6,884 40,745 6,019 14,007
781 1,377 20 5,032 23,498 5,104 55,828 3,226 6,460
361 603 330 6,697 7,954 3,699 21,108 1,952 12,935
1,057 407 78 11,893 31,882 17,207 67,664 21,225 32,394
91,237
101,326
55,639
183,807
Gross Cash Farm Income
658,798
467,348
338,233
1,681,786
Sale of Crops
2014 Northern Minnesota Annual Report
Page 6
Farm Business Management Education Programs
Farm Income Statement Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Number of farms
Average
Low 20%
40 - 60%
High 20%
566
113
113
114
36,281 48,157 15,507 10,099 2,308 9,720 122,072
42,139 63,343 19,091 14,638 3006 10,588 152,805
22,409 29,536 8,641 6,024 1545 5,362 73,517
67,296 86,554 28,312 15,080 3,582 19,884 220,708
Direct Crop Expense Seed Fertilizer Crop chemicals Crop insurance Drying Expense Crop miscellaneous Total Direct Crop Expense Direct Livestock Expense Feeder livestock purchase Purchased feed Breeding fees Veterinary Supplies and related Contract production exp. Livestock hauling and trucking Livestock marketing Bedding Total Direct Livestock Expense Other Farm Expense Interest CCC Buybacks Fuel & oil Repairs Custom hire Hired labor Land rent Machinery & bldg leases Real estate taxes Farm insurance Utilities Dues & professional fees Miscellaneous Total Other Farm Expense Total cash expense
30,175 106,845 2,970 7,463 13,584 3,139 2,828 2,950 5,927 175,881
11704 22,959 313 1,551 3,628 480 816 971 574 42,996
9,831 41,370 1,051 3,071 5,367 605 1,887 1,450 1,355 65,987
97,350 355,633 10,120 24,536 43,346 12,928 6,814 9,245 21,894 581,866
25,854 1,202 32,367 40,856 9,161 34,676 35,917 7,389 5,029 9,089 11,438 3,395 8,159 224,532 522,485
27,296 4,711 31,598 37,028 3,166 17,416 46,649 6,437 4,703 8,405 7,188 4,076 9,388 208,061 403,862
17,682 209 18,341 23,162 3,474 10,866 18,499 2,403 3,832 5,830 7,143 2,184 6,162 119,787 259,291
47,737 1,092 69,853 89,142 28,752 110,797 66,115 19,894 8,524 19,136 27,170 6,004 16,083 510,299 1,312,873
Net cash farm income
136,313
63,486
78,942
368,913
Inventory Changes Prepaids and supplies Accounts receivable Hedging acct. & Oth Cur Assets Crops and feed Market livestock Breeding livestock Accounts payable Accrued Interest & other assets Total inventory change Net operating profit
4,116 1,742 9,063 -23,111 18,162 2,989 479 4,943 18,383 154,696
-5,914 -4,316 724 -69,888 -1,172 -2,650 -7,009 -1,481 -91,706 -28,220
1,058 -6686 890 -12,443 6,635 4,181 -1,894 733 -7,526 71,416
31,472 17,331 43,728 -17,738 59,465 12,714 9,739 22,692 179,403 548,316
Depreciation Machinery and equipment Titled vehicles Buildings and improvements Total depreciation Net farm income from operations Gain or loss on capital sales Net farm income
-29,866 -2,902 -8,112 -40,880 113,816 279 114,095
-32,790 -3,499 -5,797 -42,086 -70,307 -230 -70,537
-15,909 -2,064 -3,788 -21,751 49,665 26 49,691
-60,528 -4,843 -19,248 -84,619 463,698 22 463,720
2014 Northern Minnesota Annual Report
Page 7
Farm Business Management Education Programs
Summary Farm Income Statement Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
Crop sales Crop inventory change Gross crop income
197,414 -23,111 174,303
291,887 -69,888 221,999
129,703 -12,442 117,261
292,026 -17,738 274,288
Livestock sales Livestock inventory change Gross livestock income
348,073 18,162 366,235
67,787 -1,172 66,615
142,728 6,635 149,362
1,141,192 59,465 1,200,657
Government payments Other cash farm income Change in accounts receivable Gain or loss on hedging accounts Change in other assets Gain or loss on breeding lvst Gross farm income
8,411 104,900 1,742 -601 14,734 2,989 672,713
7,211 100,463 -4,316 174 -12 -2,650 389,483
7,991 57,811 -6,686 29 1,497 4,181 331,446
13,435 235,133 17,331 -2,362 68,465 12,714 1,819,661
Cash operating expenses Change in prepaids and supplies Change in growing crops Change in accounts payable Depreciation Total operating expense
496,630 -4,116 -467 -479 40,880 532,449
376,565 5,914 -686 7,009 42,086 430,888
241,610 -1,058 -195 1,894 21,751 264,002
1,265,136 -31,472 -728 -9,739 84,619 1,307,815
Interest paid Change in accrued interest Total interest expense Total expenses
25,854 594 26,449 558,897
27,296 1,605 28,901 459,790
17,682 97 17,779 281,781
47,737 412 48,149 1,355,963
Net farm income from operations Gain or loss on capital sales
113,816 279
-70,306 -230
49,665 26
463,698 22
Net farm income
114,095
-70,537
49,691
463,720
Number of farms
2014 Northern Minnesota Annual Report
Page 8
Farm Business Management Education Programs
Inventory Changes Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
Net cash farm income
136,314
63,486
78,941
368,914
Crops and Feed Ending inventory Beginning inventory Inventory change
192,010 215,122 -23,111
167,173 237,061 -69,888
107,819 120,261 -12,442
417,455 435,193 -17,738
Market Livestock Ending inventory Beginning inventory Inventory change
60,918 42,756 18,162
16,989 18,161 -1,172
36,143 29,509 6,635
170,882 111,417 59,465
Accts Receivable Ending inventory Beginning inventory Inventory change
37,775 36,033 1,742
21,221 25,537 -4,316
10,858 17,544 -6,686
111,732 94,402 17,331
Prepaid Expenses and Supplies Ending inventory Beginning inventory Inventory change
45,450 41,335 4,116
36,360 42,274 -5,914
19,224 18,166 1,058
107,768 76,296 31,472
858 321 668 1,111 -601
431 384 388 254 174
451 318 295 445 29
2,272 276 1,499 3,412 -2,362
14,085 4,420 9,665
5,516 4,967 549
4,332 3,470 862
54,186 8,097 46,090
Breeding Livestock Ending inventory Capital sales Beginning inventory Capital purchases Depreciation, capital adjust
140,883 2,824 132,714 8,004 2,989
43,348 1,233 41,657 5,574 -2,650
72,661 6,755 70,198 5,037 4,181
402,502 2,595 376,592 15,792 12,714
Other Capital Assets Ending inventory Capital sales Beginning inventory Capital purchases Depreciation, capital adjust
54,893 441 47,790 2,007 5,537
33,822 504 31,916 2,285 124
22,507 67 20,954 790 830
151,249 1,299 124,809 4,635 23,104
Accounts Payable Beginning inventory Ending inventory Inventory change
20,845 20,366 479
15,741 22,749 -7,009
10,378 12,271 -1,894
52,964 43,225 9,739
Accrued Interest Beginning inventory Ending inventory Inventory change
5,381 5,975 -594
8,889 10,493 -1,605
4,468 4,566 -97
5,769 6,181 -412
18,383
-91,706
-7,525
179,403
154,696
-28,220
71,416
548,316
Number of farms
Hedging Activities Ending inventory Withdrawals Beginning inventory Deposits Gain or loss Other Current Assets Ending inventory Beginning inventory Inventory change
Total inventory change Net operating profit
2014 Northern Minnesota Annual Report
Page 9
Farm Business Management Education Programs
Balance Sheet at Cost Values Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
Assets Current Farm Assets Cash and checking balance Prepaid expenses & supplies Growing crops Accounts receivable Hedging accounts Crops held for sale or feed Crops under government loan Market livestock held for sale Other current assets Total current farm assets
21,921 45,450 2,662 37,775 858 191,696 7,032 60,918 11,423 379,735
13,075 36,360 2,582 21,221 431 162,339 29,808 16,989 2,934 285,739
11,996 19,224 2,119 10,858 451 108,242 649 36,143 2,213 191,895
60,130 107,768 5,929 111,732 2,272 418,339 2,733 170,882 48,258 928,044
Intermediate Farm Assets Breeding livestock Machinery and equipment Titled vehicles Other intermediate assets Total intermediate farm assets
140,883 382,264 26,534 23,409 573,090
43,348 398,111 36,393 11,328 489,180
72,661 215,692 14,172 8,520 311,045
402,502 782,243 45,010 73,790 1,303,545
Long Term Farm Assets Farm land Buildings and improvements Other long-term assets Total long-term farm assets Total Farm Assets
347,397 199,197 31,484 578,078 1,530,903
389,583 134,530 22,494 546,607 1,321,526
270,474 94,348 13,987 378,809 881,749
555,319 484,683 77,459 1,117,461 3,349,050
Total Nonfarm Assets Total Assets
158,440 1,689,343
156,195 1,477,721
119,122 1,000,872
178,585 3,527,635
Liabilities Current Farm Liabilities Accrued interest Accounts payable Current notes Government crop loans Principal due on term debt Total current farm liabilities
5,980 20,320 119,529 3,576 59,279 208,684
10,516 22,749 184,354 15,338 58,229 291,187
4,567 12,271 57,666 340 33,010 107,854
6,181 43,225 206,898 1,307 125,828 383,439
Total intermediate farm liabs Total long term farm liabilities Total farm liabilities
149,822 313,004 671,511
158,384 328,288 777,860
84,470 227,480 419,804
310,869 535,143 1,229,450
Total nonfarm liabilities Total liabilities
33,158 704,669
41,695 819,555
20,724 440,528
29,635 1,259,085
Net worth (farm and nonfarm) Net worth change Percent net worth change
984,674 80,649 9%
658,166 -85,137 -11 %
560,344 30,063 6%
2,268,549 374,724 20 %
55 % 26 % 54 % 42 %
102 % 32 % 60 % 55 %
56 % 27 % 60 % 44 %
41 % 24 % 48 % 36 %
Number of farms
Ratio Analysis Current farm liabilities / assets Intermediate farm liab. / assets Long term farm liab. / assets Total debt to asset ratio 2014 Northern Minnesota Annual Report
Page 10
Farm Business Management Education Programs
Balance Sheet at Market Values Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
Assets Current Farm Assets Cash and checking balance Prepaid expenses & supplies Growing crops Accounts receivable Hedging accounts Crops held for sale or feed Crops under government loan Market livestock held for sale Other current assets Total current farm assets
21,921 45,450 2,662 37,775 858 191,696 7,032 60,918 11,423 379,735
13,075 36,360 2,582 21,221 431 162,339 29,808 16,989 2,934 285,739
11,996 19,224 2,119 10,858 451 108,242 649 36,143 2,213 191,895
60,130 107,768 5,929 111,732 2,272 418,339 2,733 170,882 48,258 928,044
Intermediate Farm Assets Breeding livestock Machinery and equipment Titled vehicles Other intermediate assets Total intermediate farm assets
144,609 433,530 29,228 24,464 631,831
43,424 470,729 40,407 11,972 566,532
74,583 252,023 15,350 8,644 350,601
414,977 850,739 49,217 78,466 1,393,399
Long Term Farm Assets Farm land Buildings and improvements Other long-term assets Total long-term farm assets Total Farm Assets
590,778 218,544 39,234 848,556 1,860,122
622,929 149,497 24,002 796,428 1,648,699
484,843 110,663 14,797 610,304 1,152,800
907,885 511,839 81,939 1,501,663 3,823,106
Total Nonfarm Assets Total Assets
171,991 2,032,113
175,503 1,824,202
127,040 1,279,840
194,885 4,017,991
Liabilities Current Farm Liabilities Accrued interest Accounts payable Current notes Government crop loans Principal due on term debt Total current farm liabilities
5,980 20,320 119,529 3,576 59,279 208,684
10,516 22,749 184,354 15,338 58,229 291,187
4,567 12,271 57,666 340 33,010 107,854
6,181 43,225 206,898 1,307 125,828 383,439
Total intermediate farm liabs Total long term farm liabilities Total farm liabilities
149,822 313,004 671,511
158,384 328,288 777,860
84,470 227,480 419,804
310,869 535,143 1,229,450
Total nonfarm liabilities Total liabs excluding deferreds Total deferred liabilities Total liabilities
33,158 704,669 178,495 883,164
41,695 819,555 147,712 967,267
20,724 440,528 103,743 544,271
29,635 1,259,085 389,530 1,648,616
Retained earnings Market valuation equity Net worth (farm and nonfarm) Net worth excluding deferreds Net worth change Percent net worth change
984,674 164,275 1,148,949 1,327,444 111,833 11 %
658,166 198,769 856,935 1,004,647 -29,048 -3 %
560,344 175,225 735,569 839,312 48,658 7%
2,268,549 100,826 2,369,375 2,758,906 395,181 20 %
55 % 24 % 37 % 43 % 35 %
102 % 28 % 41 % 53 % 45 %
56 % 24 % 37 % 43 % 34 %
41 % 22 % 36 % 41 % 31 %
Number of farms
Ratio Analysis Current farm liabilities / assets Intermediate farm liab. / assets Long term farm liab. / assets Total debt to asset ratio Debt to assets excl deferreds 2014 Northern Minnesota Annual Report
Page 11
Farm Business Management Education Programs
Financial Guideline Measures The Farm Financial Standards Task Force recommended the use of these financial measures to evaluate a farm’s financial position and financial performance. These measures are grouped by: Liquidity, Solvency, Profitability, Repayment Capacity, and Efficiency.
Liquidity Liquidity is the ability of the farm business to meet financial obligations in a timely manner, without disrupting normal business operations. Current Ratio: The current ratio shows the value of current assets relative to current liabilities. It measures the extent current farm assets, if liquidated, would cover liabilities that are due during the next 12 months. The higher the ratio, the safer the short term position. Working Capital: Working capital shows the dollar amount that current assets can or cannot cover current liabilities. It approximates the amount of capital available to purchase crop and livestock inputs and equipment necessary to produce farm products. The amount of working capital considered adequate must be related to the size of the farm business. Working Capital to Gross Revenues: Measures operating capital available against the size of the business.
Solvency Solvency is important in evaluating the risk position of the farm and family and in considering future borrowing capacity. Solvency measures the ability of the business to pay off all debts if liquidated. Farm Debt To Asset Ratio: The farm debt to asset ratio measures the financial position or solvency of the farm or ranch by comparing the total liabilities to the total assets. It measures the portion of the farm assets that have debt against them. A higher ratio is considered an indicator of greater financial risk. Farm Equity To Asset Ratio: The farm equity to asset ratio measures the farm equity relative to the value of the farm assets. It measures the proportion of the farm assets financed by the owner’s equity whereas the debt to asset ratio measured the proportion of farm assets financed by debt. Farm Debt To Equity Ratio: The farm debt to equity ratio measures the amount of farm debt relative to the amount of farm equity. It measures the amount of debt the farm has for every dollar of equity.
Profitability Profitability is the measure of the value of goods produced by the business in relation to the cost of resources used in the production. Profitability calculated on a cost basis does not consider changes in market valuation of capital assets such as machinery and breeding livestock. Rate of Return on Assets: Rate of return on assets is, in effect, the interest rate your farm earned in the past year on all money invested in the business. If assets are valued at market value, the rate of return on investment can be looked at as the “opportunity cost” of investing money in the farm instead of alternative investments. If assets are valued at cost (cost less depreciation), the rate of return represents the actual return on the average dollar invested in the business. Rate of Return on Equity: Rate of return on equity is, in effect, the interest rate your investment in the business earned in the past year. If assets are valued at market value, this return can be compared with returns available if the assets were liquidated and invested in alternative investments. If assets are valued at cost, this represents the actual return to the amount of equity capital you have invested in the farm business. If your return on assets is higher than your average interest rate, your return on equity will be still higher, reflecting the fact that there are residual returns to equity capital after paying all interest expense. This is positive use of financial leverage. If your return on assets is lower than your average interest rate, your return on equity will be still lower, reflecting the fact that borrowed capital did not earn enough to pay its interest cost. This is negative financial leverage. Profitability becomes a key concern when substantial debt capital is used in the business. 2014 Northern Minnesota Annual Report
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Farm Business Management Education Programs
Financial Guideline Measures Net Farm Income: Net farm income represents the returns to labor, management, and equity capital invested in the business. Without income from other sources, or appreciation of capital asset values, net farm income must cover family living expenses and taxes, or net worth will decrease. Operating Profit Margin: The operating profit margin is a measure of the profit margin from the employment of assets. It measures how effectively you are employing assets relative to the value of output produced. Low prices, high operating expenses, or production problems are all possible causes of a low operating profit margin. EBITDA: This factor stands for: Earnings Before Interest, Taxes, Depreciation and Amortization. This represents a measure of earnings available for debt repayment.
Repayment Capacity Repayment capacity shows the borrower’s ability to repay term debts (longer than one year) on time. This includes non-farm income, and is therefore not a measure of business performance alone. Capital Debt Repayment Capacity: Measures the amount generated from farm and non-farm sources, to cover debt repayment and capital replacement. Capital Debt Repayment Margin: The amount of money remaining after all operating expenses, taxes, family living costs, and scheduled debt payments have been made. It is the money left, after paying all expenses, which is available for purchasing/financing new machinery, equipment, land or livestock. Replacement Margin: The replacement margin is the amount of income remaining after paying principal and interest on term loans and unfunded (cash) capital purchases. Term Debt Coverage Ratio: The term debt coverage ratio measures the ability of the business to cover all term debt payments. A number less than 100 percent indicates that the business, plus non-farm income, is not generating sufficient cash to meet all of the debt payments, after family living expenses and taxes have been paid. A number greater than 100 indicates the business is generating sufficient cash to pay all term debt obligations with some surplus margin remaining. Replacement Margin Coverage Ratio: This represents the ability to term debt and unfunded capital purchases. A ratio under 1.0 indicated that you did not generate enough income to cover term debt payments and unfunded capital purchases.
Efficiency These measures reflect the relationships between expense and income items to revenue and the efficiency of the farm business with regard to the use of cash and capital assets. Asset Turnover: Asset turnover is a measure of how efficiently assets are used in the business. A farm with good operating profit margin and asset turnover will show a strong rate of return on farm assets. If operating profit margin is low, the asset turnover rate must be strong, or vice versa, to maintain the rate of return on assets. Operating Expense Ratio: This ratio indicates the percent of the gross farm income, which is used to pay the operating expenses. Operating expenses do not include interest or depreciation expense. Depreciation Expense Ratio: This ratio indicates the percent of the gross farm income, which is used to cover the depreciation expense. Interest Expense Ratio: This ratio indicates the percent of the gross farm income, which is used to pay farm interest expenses. Net Farm Income Ratio: The ratio indicates the percent of the gross farm income, which remains after all expenses. 2014 Northern Minnesota Annual Report
Page 13
Farm Business Management Education Programs
Financial Standards Measures Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
1.82 171,051 25.4%
0.98 -5,448 -1.4%
1.78 84,041 25.4%
2.42 544,605 29.9%
44% 56% 0.78
55% 45% 1.21
44% 56% 0.79
40% 60% 0.66
Profitability (cost) Rate of return on farm assets Rate of return on farm equity Operating profit margin Net farm income EBIDTA
6.4% 8.3% 17.8% 114,095 181,145
-5.8% -17.8% -21.6% -70,537 681
4.3% 4.3% 13.4% 49,691 89,195
13.3% 19.0% 30.6% 463,720 596,465
Repayment Capacity Capital debt repayment capacity Capital debt repayment margin Replacement margin Term debt coverage ratio Replacement coverage ratio
135,240 57,842 45,181 1.75 1.50
-28,826 -107,054 -120,602 -0.37 -0.31
59,609 14,525 6,730 1.32 1.13
490,423 331,790 311,864 3.09 2.75
36.2% 73.1% 6.1% 3.9% 17.0%
26.7% 99.8% 10.8% 7.4% -18.1%
32.3% 73.1% 6.6% 5.4% 15.0%
43.4% 67.2% 4.7% 2.6% 25.5%
Number of farms Liquidity Current ratio Working capital Working capital to gross inc. Solvency (market) Farm debt to asset ratio Farm equity to asset ratio Farm debt to equity ratio
Efficiency Asset turnover rate (cost) Operating expense ratio Depreciation expense ratio Interest expense ratio Net farm income ratio
Operating Profit Margin X Asset Turnover Rate = Rate of Return on Farm Assets Operating Profit Margin
Percent
26
29.1 23.3
55
22.1
17.8 12.7
16
Percent
36
Asset Turnover Rate
6
41.8
43.7
47.7 34.6
36.2
35
15
-4 2010
2011
2012
2013
2010
2014
2011
2012
2013
2014
Rate of Return on Assets 16.0
13.9 9.7
9.6
6.4
Percent
11.0
4.4
6.0 1.0 -4.0
2010
2014 Northern Minnesota Annual Report
2011
2012
Page 14
2013
2014
Farm Business Management Education Programs
How does your Farm Stack Up? Northern Minnesota Farm Business Management Data Below is a summary of the low, average, and high farms using the 21 Financial Standards Measures. The numbers listed below are intended to provide a general overview of the farm situation for the current year and over a five year period. The current year data provides a shapshot of the conditions that represent the present while the five year data provides a longer term look at these factors to enable their use in potential decision making activities. For additional information, please see the back cover of this report. A "Financial Scorecard" is provided in color for your use.
Low Farms
Evaluation Chart Liquidity Current Ratio
Average
High Farms
2014
5 Yr Ave
2014
5 Yr Ave
2014
5 Yr Ave
0.98
0.97
1.82
1.90
2.42
2.40
Working Capital
$
(5,448)
(3,257)
171,051
161,689
544,605
525,395
Working Capital to Gross Inc.
%
-1.4%
-1.7%
25.4%
28.9%
29.9%
37.2%
%
55%
58%
44%
47%
40%
42%
Farm Equity to Asset Ratio
%
45%
42%
56%
53%
60%
58%
Farm Debt to Equity Ratio
%
1.21
1.38
0.78
0.87
0.66
0.73
Profitability (Cost) Rate of Return on Farm Assets
%
-5.8%
-4.8%
6.4%
8.8%
13.3%
14.7%
Rate of Return on Farm Equity
%
-17.8%
-23.8%
8.3%
12.9%
19.0%
21.5%
Operating Profit Margin
%
-21.6%
-19.4%
17.8%
21.0%
30.6%
29.9%
Net Farm Income
$
-70,537
-40,845
114,095
119,768
463,720
422,816
EBIDTA
$
681
6,070
181,145
177,529
596,465
541,098
Repayment Capacity (Accrual) Capital Debt Repayment Cap.
$
-28,826
-3,646
135,240
140,986
490,423
449,014
Capital Debt Repayment Margin
$
-107,054
-54,734
57,842
75,939
331,790
317,174
Replacement Margin
$
-120,602
-62,152
45,181
65,613
311,864
295,486
Term Debt Coverage Ratio
-0.37
0.08
1.75
2.21
3.09
3.45
Replacement Coverage Ratio
-0.31
0.07
1.5
1.90
2.75
2.95
Solvency (Market) Farm Debt to Asset Ratio
Efficiency Asset Turnover Rate (Cost)
%
26.7%
25.1%
36.2%
40.8%
43.4%
48.7%
Operating Expense Ratio
%
99.8%
96.0%
73.1%
69.3%
67.2%
63.4%
Depreciation Expense Ratio
%
10.8%
8.6%
6.1%
5.7%
4.7%
5.1%
Interest Expense Ratio
%
7.4%
9.5%
3.9%
4.5%
2.6%
3.1%
Net Farm Income Ratio
%
-18.1%
-14.5%
17.0%
20.7%
25.5%
28.5%
2014 Northern Minnesota Annual Report
Page 15
Your Farm 2014
5 Yr Ave
Farm Business Management Education Programs
Profitability Measures Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income)
Number of farms Profitability (assets valued at cost) Net farm income from operations Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate Farm interest expense Value of operator lbr and mgmt. Return on farm assets Average farm assets Return on farm equity Average farm equity Value of farm production
Number of farms Profitability (assets valued at market) Net farm income from operations Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate Farm interest expense Value of operator lbr and mgmt. Return on farm assets Average farm assets Return on farm equity Average farm equity Value of farm production
2014 Northern Minnesota Annual Report
Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
113,816 6.4 % 8.3 % 17.8 % 36.2 %
-70,306 -5.8 % -17.8 % -21.6 % 26.7 %
49,665 4.3 % 4.3 % 13.4 % 32.3 %
463,698 13.3 % 19.0 % 30.6 % 43.4 %
26,449 45,212 95,053 1,477,846 68,604 825,179 534,705
28,901 34,796 -76,201 1,320,386 -105,102 590,660 352,380
17,779 30,056 37,388 865,927 19,609 450,944 279,904
48,149 94,425 417,422 3,149,857 369,273 1,943,066 1,366,133
Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
146,063 7.1 % 10.1 % 23.8 % 29.9 %
-17,184 -1.4 % -6.8 % -6.5 % 21.7 %
67,331 4.9 % 6.0 % 19.7 % 24.8 %
494,074 12.5 % 18.9 % 32.8 % 38.0 %
26,449 45,212 127,300 1,787,985 100,851 997,048 534,705
28,901 34,796 -23,078 1,626,723 -51,979 767,696 352,380
17,779 30,056 55,054 1,127,650 37,275 624,464 279,904
48,149 94,425 447,798 3,593,012 399,650 2,115,832 1,366,133
Page 16
Farm Business Management Education Programs
Liquidity & Repayment Capacity Measures Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
Liquidity Current ratio Working capital Working capital to gross inc.
1.82 171,051 25.4%
0.98 -5,448 -1.4%
1.78 84,041 25.4%
2.42 544,605 29.9%
Current assets Current liabilities Gross revenues (accrual)
379,735 208,684 672,713
285,739 291,187 389,483
191,895 107,854 331,446
928,044 383,439 1,819,661
Payments on personal debt Income taxes paid Interest on term debt Capital debt repayment capacity
113,816 40,880 25,050 -53,117 -58 -2,658 -10,206 21,474 135,240
-70,306 42,086 35,912 -43,851 -169 -3,479 -11,045 21,857 -28,826
49,665 21,751 22,677 -42,599 16 -1,956 -4,007 14,078 59,609
463,698 84,619 12,720 -88,651 -24 -1,910 -19,611 39,558 490,423
Scheduled term debt payments Capital debt repayment margin
-77,397 57,842
-78,228 -107,054
-45,085 14,525
-158,633 331,790
Cash replacement allowance Replacement margin
-12,662 45,181
-13,548 -120,602
-7,795 6,730
-19,926 311,864
1.75 1.50
-0.37 -0.31
1.32 1.13
3.09 2.75
Number of farms
Repayment capacity Net farm income from operations Depreciation Personal income Family living/owner withdrawals
Term debt coverage ratio Replacement coverage ratio
Net Farm Income from Operations
Change in Net Worth
$700,000
200,000
174,381
$600,000 $500,000
150,000
$400,000
111,833
116,594
$300,000 100,000
$200,000
89,151
73,490
$100,000 $0 -$100,000
50,000 2010
2011
2012
2013
2014
Median 40-60%
54,314
67,271
107,866
27,464
49,665
Low 20%
-19,477
-20,970
-15,500
-76,237
-70,306
High20%
316,439
372,448
620,037
336,039
463,698
2014 Northern Minnesota Annual Report
0
2010
Page 17
2011
2012
2013
2014
Farm Business Management Education Programs
Selected Financial Guideline Measures Northern Minnesota Farm Business Management Data
Working Capital By Type of Farm
By Net Farm Income
255,022
544,605
161,325
158,490
137,616 125,741 182,805
87,013 84,041 -5,448 Crop
Dairy
Beef
Crop& Dairy
Beef & Crop
Low 20%
Other
45,946 20-40% 40-60% 60-80%
High 20%
Operating Expense Ratio By Net Farm Income
By Type of Farm 99.8% 80.6%
80.1%
72.6% 71.2%
70.0%
Crop
Dairy
80.4%
67.3%
Beef
Crop& Dairy
73.1%
Beef & Crop
71.2%
67.2%
Other
Low 20% 20-40%
40-60%
60-80% High 20%
Asset Turnover Rate By Type of Farm
By Net Farm Income 50.0%
55.0%
43.4% 42.1%
41.9%
40.0%
40.0%
35.4%
35.7% 31.2%
32.3%
30.8% 30.0%
24.5%
25.0%
26.7%
26.7%
20.0%
10.0% Crop
Dairy
Beef
Crop& Dairy
2014 Northern Minnesota Annual Report
Beef & Crop
10.0%
Other
Low 20% 20-40%
Page 18
40-60%
60-80% High 20%
Farm Business Management Education Programs
Operator and Labor Information Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
1.2 47.0 22.2
1.1 47.2 21.8
1.1 47.6 23.3
1.6 46.8 23.2
141,847 1,685,165 732,379 952,786 1,100,806
-5,011 1,677,939 889,712 788,227 924,095
73,617 1,121,100 476,764 644,336 735,211
338,338 2,496,191 1,024,208 1,471,982 1,713,980
557,859 463,475 94,384
358,255 422,924 -64,669
290,336 246,831 43,505
1,130,471 842,397 288,074
20,773 52,560
33,033 50,650
19,864 40,811
7,902 67,273
269.0 578.2 209.9 358.6 9.7 37.4
335.5 814.6 290.3 508.0 16.3 28.7
226.7 418.1 155.5 253.9 8.7 31.5
300.0 670.5 228.1 431.5 10.8 63.0
Labor Analysis Number of farms Total unpaid labor hours Total hired labor hours Total labor hours per farm Unpaid hours per operator Value of farm production / hour Net farm income / unpaid hour Average hourly hired labor wage
566 2,668 2,182 4,850 2,213 110.24 42.66 17.62
113 1,898 965 2,863 1,746 123.08 -37.03 20.00
113 2,490 858 3,348 2,181 83.60 19.95 14.59
114 4,157 6,991 11,148 2,582 122.55 111.55 17.87
Partnerships & LLCs Number of farms Number of operators Owner withdrawals per farm Withdrawals per operator
74 2.0 92,870 46,435
13 1.5 -
12 1.8 -
29 2.6 135,640 56,517
17 2.1
2 -
2 -
10 2.2
Number of farms Operator Information Average number of operators Average age of operators Average number of years farming Results Per Operator Working capital Total assets (market) Total liabilities Net worth (market) Net worth excl deferred liabs Gross farm income Total farm expense Net farm income from operations Net nonfarm income Family living & tax withdrawals Total acres owned Total crop acres Crop acres owned Crop acres cash rented Crop acres share rented Total pasture acres
Corporations Number of farms Number of operators
2014 Northern Minnesota Annual Report
Page 19
Farm Business Management Education Programs
Household and Personal Expenses Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms
Low 20%
40 - 60%
High 20%
88
17
18
14
3.2
2.2
3.3
3.9
Family Living Expenses Food and meals expense Medical care Health insurance Cash donations Household supplies Clothing Personal care Child / Dependent care Alimony and child support Gifts Education Recreation Utilities (household share) Personal vehicle operating exp Household real estate taxes Dwelling rent Household repairs Personal interest Disability / Long term care ins Life insurance payments Personal property insurance Miscellaneous Total cash family living expense Family living from the farm Total family living
7,850 3,126 4,445 1,419 3,125 1,603 4,041 511 125 1,375 1,014 2,917 2,622 3,717 294 156 1,598 1,489 316 2,242 212 6,781 50,978 270 51,248
6,557 3,111 3,453 1,407 2,163 1,367 6,193 533 1,601 986 2,147 2,567 3,356 524 2,816 2,139 447 1,308 225 3,417 46,316 71 46,387
7,936 1,786 3,561 1,916 1,307 987 3,841 884 1,170 1,167 2,614 2,264 5,029 52 25 808 1,171 116 1,613 54 7,469 45,768 657 46,425
8,184 3,961 3,726 2,159 2,310 3,270 1,705 550 1,458 1,334 3,771 2,796 1,871 474 3,029 36 350 3,263 272 7,304 51,820 286 52,105
Other Nonfarm Expenditures Income taxes Furnishing & appliance purchases Nonfarm vehicle purchases Nonfarm real estate purchases Other nonfarm capital purchases Nonfarm savings & investments Total other nonfarm expenditures
11,271 133 2,411 3,202 804 1,042 18,862
23,334 69 1,718 1,176 -2,772 23,526
3,344 510 931 2,995 -2,722 265 5,322
20,560 1,147 1,065 3,502 26,274
Total cash family living investment & nonfarm capital purch
69,840
69,842
51,090
78,093
Number of farms Average family size
2014 Northern Minnesota Annual Report
Page 20
Farm Business Management Education Programs
Nonfarm Summary Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income)
Number of farms Nonfarm Income Personal wages & salary Net nonfarm business income Personal rental income Personal interest income Personal cash dividends Tax refunds Other nonfarm income Total nonfarm income Gifts and inheritances Nonfarm Assets (market) Checking & savings Stocks & bonds Other current assets Furniture & appliances Nonfarm vehicles Cash value of life ins. Retirement accounts Other intermediate assets Nonfarm real estate Personal bus. investment Other long term assets Total nonfarm assets Nonfarm Liabilities Accrued interest Accounts payable Current notes Princ due on term debt Total current liabilities Intermediate liabilities Long term liabilities Total nonfarm liabilities Nonfarm net worth Nonfarm debt to asset ratio
2014 Northern Minnesota Annual Report
Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
17,609 2,262 327 84 127 1,192 3,447 25,050
25,107 3,620 449 60 194 1,590 4,893 35,912
17,236 919 193 12 47 1,131 3,139 22,677
5,756 1,978 221 162 30 668 3,905 12,720
1,153
3,903
114
1,478
6,438 7,180 1,682 8,717 14,022 4,592 37,645 7,413 70,221 5,068 9,015 171,991
4,084 12,643 421 8,526 18,128 2,475 31,900 4,879 84,695 704 7,049 175,503
3,933 3,274 833 8,236 10,928 6,192 31,036 4,784 48,309 3,020 6,493 127,040
7,040 6,493 5,175 7,435 14,032 5,068 38,229 13,476 73,299 16,281 8,357 194,885
54 1,631 1,298 2,890 8,545 4,629 19,984 33,158
138 1,187 1,666 3,964 9,707 7,455 24,534 41,695
15 3,119 1,108 1,943 6,565 3,060 11,099 20,724
16 2,476 486 2,272 10,924 3,347 15,364 29,635
138,833 19 %
133,807 24 %
106,316 16 %
165,250 15 %
Page 21
Farm Business Management Education Programs
Financial Summary Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income) Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
658,798 522,485 136,314 18,383 -40,880 113,816 279 114,095 46,104
467,348 403,862 63,486 -91,706 -42,086 -70,306 -230 -70,537 -48,720
338,233 259,291 78,941 -7,525 -21,751 49,665 26 49,691 45,925
1,681,786 1,312,873 368,914 179,403 -84,619 463,698 22 463,720 292,681
Profitability (cost) Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate
6.4 % 8.3 % 17.8 % 36.2 %
-5.8 % -17.8 % -21.6 % 26.7 %
4.3 % 4.3 % 13.4 % 32.3 %
13.3 % 19.0 % 30.6 % 43.4 %
Profitability (market) Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate
7.1 % 10.1 % 23.8 % 29.9 %
-1.4 % -6.8 % -6.5 % 21.7 %
4.9 % 6.0 % 19.7 % 24.8 %
12.5 % 18.9 % 32.8 % 38.0 %
379,735 208,684 1.82 171,051 25.4 % 1.75 1.50 2.45
285,739 291,187 0.98 -5,448 -1.4 % -0.37 -0.31 668.70
191,895 107,854 1.78 84,041 25.4 % 1.32 1.13 3.40
928,044 383,439 2.42 544,605 29.9 % 3.09 2.75 1.35
Solvency (end of year at cost) Number of farms Total assets Total liabilities Net worth Net worth change Farm debt to asset ratio Total debt to asset ratio Change in earned net worth %
566 1,689,343 704,669 984,674 80,649 44 % 42 % 9%
113 1,477,721 819,555 658,166 -85,137 59 % 55 % -11 %
113 1,000,872 440,528 560,344 30,063 48 % 44 % 6%
114 3,527,635 1,259,085 2,268,549 374,724 37 % 36 % 20 %
Solvency (end of year at market) Number of farms Total assets Total liabilities Net worth Total net worth change Farm debt to asset ratio Total debt to asset ratio Change in total net worth %
566 2,032,113 883,164 1,148,949 111,833 44 % 43 % 11 %
113 1,824,202 967,267 856,935 -29,048 55 % 53 % -3 %
113 1,279,840 544,271 735,569 48,658 44 % 43 % 7%
114 4,017,991 1,648,616 2,369,375 395,181 40 % 41 % 20 %
25,050 88 51,248 69,840
35,912 17 46,387 69,842
22,677 18 46,425 51,090
12,720 14 52,105 78,093
697 253 432 12 607
886 316 552 18 519
477 177 290 10 511
1,079 367 695 17 754
Number of farms Income Statement Gross cash farm income Total cash farm expense Net cash farm income Inventory change Depreciation Net farm income from operations Gain or loss on capital sales Average net farm income Median net farm income
Liquidity & Repayment (end of year) Current assets Current liabilities Current ratio Working capital Working capital to gross inc Term debt coverage ratio Replacement coverage ratio Term debt to EBITDA
Nonfarm Information Net nonfarm income Farms reporting living expenses Total family living expense Total living, invest, cap. purch Crop Acres Total crop acres Total crop acres owned Total crop acres cash rented Total crop acres share rented Machinery value per crop acre
2014 Northern Minnesota Annual Report
Page 22
Farm Business Management Education Programs
Financial Summary Northern Minnesota Farm Business Management Data (Farms Sorted By Gross Farm Income) Less than 50,000
50,001 100,000
100,001 250,000
250,001 500,000
500,001 1,000,000
Over 1,000,000
41
48
116
130
133
98
Income Statement Gross cash farm income Total cash farm expense Net cash farm income Inventory change Depreciation Net farm income from operations Gain or loss on capital sales Average net farm income Median net farm income
30,536 40,862 -10,326 7,347 -3,984 -6,964 -6,964 -3,309
77,885 72,625 5,260 6,936 -8,922 3,274 3,274 6,766
172,238 138,016 34,221 6,576 -12,493 28,304 200 28,504 30,593
358,913 277,625 81,288 34,056 -24,891 90,453 1,091 91,543 58,495
708,979 552,651 156,328 -9,040 -49,029 98,259 -13 98,247 106,271
2,111,805 1,683,278 428,526 59,007 -115,721 371,812 -52 371,760 271,655
Profitability (cost) Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate
-3.0 % -13.8 % -25.0 % 11.8 %
-0.8 % -6.6 % -3.7 % 20.5 %
3.1 % 2.0 % 12.0 % 25.7 %
7.6 % 10.7 % 22.0 % 34.5 %
4.6 % 5.1 % 13.1 % 35.5 %
8.3 % 11.2 % 20.4 % 40.5 %
Profitability (market) Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate
-0.4 % -4.6 % -4.8 % 9.1 %
1.0 % -1.4 % 6.1 % 15.6 %
3.7 % 4.0 % 20.4 % 18.3 %
7.8 % 11.1 % 28.6 % 27.1 %
6.7 % 9.2 % 23.2 % 28.7 %
8.5 % 12.6 % 23.8 % 35.7 %
Liquidity & Repayment (end of year) Current assets Current liabilities Current ratio Working capital Working capital to gross inc Term debt coverage ratio Replacement coverage ratio Term debt to EBITDA
27,389 25,562 1.07 1,828 4.9 % 1.48 1.27 45.73
51,094 44,415 1.15 6,680 8.0 % 1.38 1.14 7.71
109,269 69,014 1.58 40,255 22.3 % 1.20 1.02 4.48
251,415 113,476 2.22 137,939 34.8 % 2.01 1.69 2.62
417,743 255,219 1.64 162,525 23.0 % 1.30 1.11 2.66
1,126,894 594,222 1.90 532,672 25.0 % 2.04 1.79 1.88
Solvency (end of year at cost) Number of farms Total assets Total liabilities Net worth Net worth change Farm debt to asset ratio Total debt to asset ratio Change in earned net worth %
41 411,489 216,053 195,436 23,241 63 % 53 % 13 %
48 516,563 249,965 266,598 19,602 56 % 48 % 8%
116 759,544 348,426 411,118 20,647 51 % 46 % 5%
130 1,166,790 505,728 661,062 66,912 47 % 43 % 11 %
133 1,866,064 763,969 1,102,095 53,065 43 % 41 % 5%
98 4,352,305 1,736,899 2,615,406 261,248 41 % 40 % 11 %
Solvency (end of year at market) Number of farms Total assets Total liabilities Net worth Total net worth change Farm debt to asset ratio Total debt to asset ratio Change in total net worth %
41 514,907 238,782 276,125 30,686 53 % 46 % 13 %
48 646,720 288,484 358,235 27,745 49 % 45 % 8%
116 1,019,502 424,552 594,950 33,793 44 % 42 % 6%
130 1,456,843 614,057 842,787 90,445 43 % 42 % 12 %
133 2,295,860 961,834 1,334,026 111,864 42 % 42 % 9%
98 4,949,193 2,237,080 2,712,113 307,674 44 % 45 % 13 %
48,905 8 41,671 46,342
50,815 10 31,512 41,660
27,722 17 46,442 49,819
21,361 22 45,472 55,858
19,138 19 65,811 103,734
12,203 12 68,417 109,318
97 58 40 465
139 83 56 1 690
286 140 142 4 524
528 213 309 6 542
839 293 527 19 587
1,742 552 1,161 29 663
Number of farms
Nonfarm Information Net nonfarm income Farms reporting living expenses Total family living expense Total living, invest, cap. purch Crop Acres Total crop acres Total crop acres owned Total crop acres cash rented Total crop acres share rented Machinery value per crop acre
2014 Northern Minnesota Annual Report
Page 23
Farm Business Management Education Programs
Financial Summary Northern Minnesota Farm Business Management Data (Farms Sorted By Farm Type) Avg. Of All Farms
Crop
Dairy
Beef
Crop and Dairy
Crop and Beef
Other
566
152
185
31
17
40
138
658,798 522,485 136,314 18,383 -40,880 113,816 279 114,095 46,104
588,545 427,690 160,855 -78,288 -44,858 37,709 42 37,751 14,676
897,467 704,994 192,473 59,648 -46,117 206,003 345 206,348 103,490
518,635 531,539 -12,905 101,291 -20,312 68,074 -726 67,349 29,296
828,996 624,470 204,526 32,501 -49,143 187,885 187,885 129,458
404,190 330,602 73,588 19,510 -24,153 68,945 84 69,029 38,543
482,906 405,720 77,186 49,348 -37,939 88,596 776 89,372 20,367
Profitability (cost) Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate
6.4 % 8.3 % 17.8 % 36.2 %
1.0 % -0.4 % 3.4 % 31.2 %
11.0 % 16.1 % 26.0 % 42.1 %
6.0 % 7.5 % 24.4 % 24.5 %
9.5 % 13.3 % 22.8 % 41.9 %
5.8 % 7.9 % 18.7 % 30.8 %
6.3 % 8.9 % 17.7 % 35.7 %
Profitability (market) Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate
7.1 % 10.1 % 23.8 % 29.9 %
3.4 % 3.8 % 13.3 % 25.4 %
10.8 % 16.4 % 30.3 % 35.7 %
6.4 % 9.1 % 29.2 % 21.9 %
8.9 % 12.5 % 25.9 % 34.4 %
5.7 % 8.0 % 23.0 % 24.9 %
6.7 % 10.1 % 23.6 % 28.6 %
379,735 208,684 1.82 171,051 25.4 % 1.75 1.50 2.45
510,154 255,132 2.00 255,022 48.8 % 0.57 0.44 3.46
294,054 135,564 2.17 158,490 16.9 % 2.54 2.28 1.90
441,615 354,602 1.25 87,013 14.3 % 2.13 1.90 2.39
354,495 193,169 1.84 161,325 19.1 % 1.71 1.66 2.16
319,296 181,681 1.76 137,616 33.2 % 1.78 1.53 3.20
352,316 226,575 1.55 125,741 23.5 % 1.66 1.46 2.96
Solvency (end of year at cost) Number of farms Total assets Total liabilities Net worth Net worth change Farm debt to asset ratio Total debt to asset ratio Change in earned net worth %
566 1,689,343 704,669 984,674 80,649 44 % 42 % 9%
152 1,864,152 666,323 1,197,829 -11,600 37 % 36 % -1 %
185 1,817,943 720,239 1,097,705 160,097 42 % 40 % 17 %
31 1,345,738 724,402 621,336 63,469 57 % 54 % 11 %
17 1,949,655 780,403 1,169,251 149,218 43 % 40 % 15 %
40 1,211,663 581,620 630,043 70,089 50 % 48 % 13 %
138 1,506,311 742,332 763,979 74,289 52 % 49 % 11 %
Solvency (end of year at market) Number of farms Total assets Total liabilities Net worth Total net worth change Farm debt to asset ratio Total debt to asset ratio Change in total net worth %
566 2,032,113 883,164 1,148,949 111,833 44 % 43 % 11 %
152 2,288,852 887,522 1,401,329 43,722 39 % 39 % 3%
185 2,131,354 896,023 1,235,331 183,948 42 % 42 % 17 %
31 1,508,234 841,149 667,085 75,917 57 % 56 % 13 %
17 2,344,375 952,051 1,392,324 171,527 41 % 41 % 14 %
40 1,488,922 705,053 783,869 87,011 47 % 47 % 12 %
138 1,858,055 908,404 949,651 98,753 49 % 49 % 12 %
25,050 88 51,248 69,840
32,622 22 61,588 105,626
12,643 28 55,681 69,428
35,471 6 30,804 33,850
13,439 2 -
40,061 6 47,236 57,147
28,358 23 44,038 52,002
697 253 432 12 607
1,283 469 790 25 448
367 160 201 6 1,054
388 113 275 492
786 279 504 3 718
594 224 361 8 520
580 177 394 10 650
Number of farms Income Statement Gross cash farm income Total cash farm expense Net cash farm income Inventory change Depreciation Net farm income from operations Gain or loss on capital sales Average net farm income Median net farm income
Liquidity & Repayment (end of year) Current assets Current liabilities Current ratio Working capital Working capital to gross inc Term debt coverage ratio Replacement coverage ratio Term debt to EBITDA
Nonfarm Information Net nonfarm income Farms reporting living expenses Total family living expense Total living, invest, cap. purch Crop Acres Total crop acres Total crop acres owned Total crop acres cash rented Total crop acres share rented Machinery value per crop acre
2014 Northern Minnesota Annual Report
Page 24
Farm Business Management Education Programs
Selected Factors by Type of Farm
Net Farm Income
Change in Net Worth 200000
240000 200000
140000 160000 120000
80000
80000
20000
40000 0
67,349
Dairy Crop 187,885
Beef Crop 69,029
89,372
29,296
129,458
38,543
20,367
Ave.
Crop
Dairy
Beef
Ave NFI
114,095
37,751
206,348
Median NFI
46,104
14,676
103,490
-40000
Other
NW Change
Total Assets shown as Equity & Liabilities
Ave.
Crop
Dairy
Beef
111,833
43,722
183,948
75,917
Dairy Crop 171,527
Beef Crop 87,011
Other 98,753
Rate of Return on Assets & Equity (%) 18
2700000 2400000
14
2100000 1800000
10
1500000 1200000
6
900000 600000
2
300000 0 Liabilities Equity
Ave.
Crop
Dairy
Beef
Dairy Crop
Beef Crop
Other
883,164
887,522
896,023
841,149
952,051
705,053
908,404
667,085
1,392,324
783,869
949,651
1,148,949 1,401,330 1,235,331
-2
Ave.
Crop
Dairy
Beef
Dairy Crop
Beef Crop
ROA
6.4
1.0
11.0
6.0
9.5
5.8
6.3
ROE
8.3
-0.4
16.1
7.5
13.3
7.9
8.9
Working Capital
Other
Ending Debt to Asset Ratio (%)
300000
100.0%
60
250000 75.0%
200000 150000
50.0%
40
100000 25.0%
50000 0 Ave. Wk Cap WC as % GFI
Crop
Dairy
171,051 255,022 158,490 25.4%
48.8%
16.9%
Beef 87,013 14.3%
Dairy Beef Other Crop Crop 161,325 137,616 125,741 19.1%
33.2%
0.0%
20
23.5% Debt to Asset
2014 Northern Minnesota Annual Report
Page 25
Ave.
Crop
Dairy
Beef
Dairy Crop
Beef Crop
Other
43.0
39.0
42.0
56.0
41.0
47.0
49.0
Farm Business Management Education Programs
Financial Summary Northern Minnesota Farm Business Management Data (Farms Sorted By Total Acres) Less than 100
101 250
251 500
501 1,000
1,001 1,500
1,501 2,000
2,001 5,000
85
127
126
102
55
27
42
297,437 243,059 54,379 12,745 -17,056 50,068 -242 49,826 20,569
260,116 207,749 52,368 15,226 -14,479 53,115 193 53,309 36,651
414,468 331,527 82,941 24,139 -27,713 79,367 522 79,889 45,897
766,048 631,474 134,574 75,788 -44,480 165,882 1,151 167,032 54,576
1,158,302 873,869 284,433 1,512 -77,112 208,833 -20 208,813 79,009
1,416,302 1,181,411 234,891 37,690 -87,600 184,981 184,981 99,547
1,820,808 1,381,692 439,116 -99,697 -117,462 221,957 -714 221,242 104,959
Profitability (cost) Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate
6.1 % 8.9 % 19.5 % 31.3 %
6.5 % 9.1 % 19.6 % 33.0 %
6.5 % 8.4 % 19.7 % 32.8 %
8.8 % 13.0 % 21.9 % 40.1 %
7.3 % 9.7 % 19.1 % 38.2 %
5.2 % 5.9 % 13.3 % 39.4 %
4.3 % 4.6 % 12.4 % 34.3 %
Profitability (market) Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate
6.5 % 9.9 % 25.7 % 25.3 %
6.3 % 8.6 % 26.1 % 24.2 %
8.1 % 11.6 % 30.7 % 26.3 %
8.2 % 12.5 % 24.6 % 33.4 %
9.6 % 14.4 % 29.6 % 32.5 %
5.2 % 6.3 % 15.2 % 34.2 %
5.0 % 6.6 % 17.1 % 29.1 %
Liquidity & Repayment (end of year) Current assets Current liabilities Current ratio Working capital Working capital to gross inc Term debt coverage ratio Replacement coverage ratio Term debt to EBITDA
128,070 110,183 1.16 17,887 5.8 % 1.67 1.47 2.95
103,790 59,839 1.73 43,951 16.3 % 1.76 1.56 3.34
204,922 108,742 1.88 96,180 22.3 % 1.88 1.61 2.85
443,455 212,201 2.09 231,254 27.3 % 2.23 1.96 2.33
612,297 346,773 1.77 265,525 23.0 % 1.71 1.55 2.23
918,421 601,652 1.53 316,769 21.7 % 1.56 1.33 2.16
1,329,501 694,403 1.91 635,098 37.6 % 1.24 0.98 1.92
Solvency (end of year at cost) Number of farms Total assets Total liabilities Net worth Net worth change Farm debt to asset ratio Total debt to asset ratio Change in earned net worth %
85 786,090 400,992 385,098 42,633 55 % 51 % 12 %
127 774,954 370,430 404,525 46,832 53 % 48 % 13 %
126 1,214,853 521,169 693,684 62,467 47 % 43 % 10 %
102 1,907,628 828,150 1,079,478 138,429 46 % 43 % 15 %
55 2,782,865 1,106,403 1,676,462 146,396 41 % 40 % 10 %
27 3,312,278 1,448,361 1,863,917 107,433 45 % 44 % 6%
42 4,448,451 1,539,821 2,908,630 74,856 35 % 35 % 3%
Solvency (end of year at market) Number of farms Total assets Total liabilities Net worth Total net worth change Farm debt to asset ratio Total debt to asset ratio Change in total net worth %
85 959,900 464,228 495,672 55,209 51 % 48 % 13 %
127 1,021,817 444,553 577,264 60,977 46 % 44 % 12 %
126 1,494,721 640,994 853,727 97,754 44 % 43 % 13 %
102 2,264,661 1,014,013 1,250,647 150,493 45 % 45 % 14 %
55 3,301,866 1,400,409 1,901,458 248,201 42 % 42 % 15 %
27 3,791,122 1,826,526 1,964,595 137,007 45 % 48 % 7%
42 5,265,555 2,121,887 3,143,669 138,951 40 % 40 % 5%
26,488 16 41,582 48,535
32,916 29 47,893 62,596
23,615 16 50,410 60,617
23,793 15 47,941 58,323
22,052 2 -
23,093 5 67,372 93,799
12,082 5 88,130 195,071
27 20 6 1,405
178 97 79 2 971
362 175 186 2 747
716 266 439 11 621
1,237 428 803 7 613
1,807 538 1,228 41 561
2,931 970 1,890 71 504
Number of farms Income Statement Gross cash farm income Total cash farm expense Net cash farm income Inventory change Depreciation Net farm income from operations Gain or loss on capital sales Average net farm income Median net farm income
Nonfarm Information Net nonfarm income Farms reporting living expenses Total family living expense Total living, invest, cap. purch Crop Acres Total crop acres Total crop acres owned Total crop acres cash rented Total crop acres share rented Machinery value per crop acre
2014 Northern Minnesota Annual Report
Page 26
Farm Business Management Education Programs
Crop Production and Marketing Summary Northern Minnesota Farm Business Management Data (Farms Sorted By Net Farm Income)
Number of farms Acreage Summary Total acres owned Total crop acres Crop acres owned Crop acres cash rented Crop acres share rented Total pasture acres Percent crop acres owned Mach invest/crop acre cost Mach invest/crop acre market Average Price Received (Cash Sales Only) Soybeans per bushel Corn per bushel Wheat, Spring per bushel Hay, Alfalfa per ton Oats per bushel Hay, Grass per ton Hay, Mixed per ton Corn Silage per ton Barley per bushel Rye per bushel Beans, Dark Red Kidney per cwt Beans, Navy per cwt Corn, Organic per bushel Soybeans, Organic per bushel
Avg. Of All Farms
Low 20%
40 - 60%
High 20%
566
113
113
114
324 697 253 432 12 45 36%
365 886 316 552 18 31 36%
259 477 177 290 10 36 37%
483 1,079 367 695 17 101 34%
538 607
447 519
439 511
692 754
11.38 4.02 6.31 142.67 3.61 110.15 103.33 38.37 6.28 7.20 55.06 29.79 12.21 16.53
11.36 3.88 5.92 138.89 3.33 103.10 98.51 32.76 6.18 -
10.93 3.90 5.79 131.62 3.56 99.52 106.96 35.42 7.22 -
11.85 4.36 6.76 168.95 4.24 129.75 42.77 6.50 -
118.75 32.87 13.76 3.85 61.59 2.15 1.90 66.16 45.67 29.17 14.59 84.74 15.46
114.27 30.90 12.01 3.17 54.55 2.27 1.51 70.16 43.89 21.80 36.73 24.65
115.72 32.16 12.22 3.24 58.27 2.11 2.19 44.04 -
128.56 35.59 14.50 4.46 66.30 2.15 2.63 73.20 26.99 -
Average Yield Per Acre Corn (bushel) Soybeans (bushel) Corn Silage (ton) Hay, Alfalfa (ton) Wheat, Spring (bushel) Hay, Grass (ton) Hay, Mixed (ton) Oats (bushel) Barley (bushel) Rye (bushel) Beans, Navy (cwt) Corn, Organic (bushel) Soybeans, Organic (bushel)
Crop Acres ‐ Owned & Cash Rented 1500 1000 500
253
432
695
552 316
177
290
367 Crop acres cash rented
0 Average 2014 Northern Minnesota Annual Report
Low 20%
Median Page 27
Crop acres owned
High 20% Farm Business Management Education Programs
Individual Enterprise Analysis Tables The individual crop and livestock tables are designed to identify the costs and returns for specific enterprises on the farm. Data from all farmers with each enterprise is merged. The minimum number of farms, in order to print a given column on the following reports, is five (5). This enables the necessary level of confidentiality for publication of this information. Crop report costs such as fertilizer, chemicals, seed, crop drying expenses, hired labor, and custom hire are costs that are assigned to each individual crop. These costs are shown in the crop enterprise analysis as Direct Costs. Other costs, called Overhead Costs, are divided out by formula. Overhead costs are assigned by an allocation factor to each enterprise. The allocation factor is based on historical data of labor and capital intensity. There are a couple of subtle differences between the Owned Land and Cash Rented Land tables. Naturally, on cash rented land, the actual cost of renting the land is reported in the direct cost section. On the owned land, there are two different lines of information in the overhead cost section that would be included for calculating cost of ownership: real-estate taxes and interest on long-term debt. The livestock reports have a format similar to the crop reports. Production information is listed at the top of each table. This will include animal or product sales, purchases, sales, transfers, and inventory change. The Direct Costs include costs that are assigned to the enterprise, including items such as: feed, veterinary, breeding, marketing, hired labor, fuel & repairs, and livestock supplies. The Overhead Costs include formula-assigned costs, including items such as: depreciation, interest, utilities, and insurances. At the bottom of each livestock report, there is a list of selected factors for each enterprise. These factors are a combination of production indicators and efficiency indicators. Towards the bottom of both the crop and livestock enterprise tables, are four (4) factors that show varying levels of Cost of Production. Those factors include a cost of production based on: direct costs, overhead & direct costs, total cost less government payments and/or other revenue, and total cost including labor & management.
Machinery Cost per Acre is a factor used to combine all costs related to machinery usage. The Machinery Cost per Acre includes: Fuel & Oil, Repairs, Custom hire, Machinery leases, Interest on machinery debt, and Machinery depreciation. A machinery cost summary for five prominent Northern Minnesota crops is listed below. Data is taken from the owned land enterprise tables. Crop Alfalfa Hay Corn Corn Silage Soybeans Spring Wheat
2010 $122.97 $118.92 $146.13 $70.06 $73.46
2014 Northern Minnesota Annual Report
2011 $134.95 $142.37 $184.16 $87.20 $84.21
Page 28
2012 $150.94 154.11 $185.94 $88.40 $94.18
2013 $145.46 152.35 $178.58 $85.28 $87.97
2014 $190.49 $162.84 $229.01 $87.39 $86.33
Farm Business Management Education Programs
Five Year History of Crop Yields and Cost of Production Northern Minnesota Farm Business Management Data Alfalfa Hay - Direct & Overhead Expense (cash rented land)
Alfalfa Hay Yields (cash rented land)
5.0
$381
$400 4.2
$314 3.8
4.0
3.5
3.3
3.7
$275
$300 $219
3.0
$200
$100
2.0 2010
2011
2012
2013
2010
2014
2011
$545
118.2
$550
100.0
$450
70.0
2012
2013
$436
$350
2014
2010
65.7 59.3
2012
$400
62.4
$343
55.8
2013
2014
$355
$351
$319 48.3
50.0
2011
Spring Wheat- Direct & Overhead Expense (cash rented land)
Spring Wheat Yields (cash rented land) 70.0
$565
$493
105.4
2011
2014
$611
128.5 119.4
2010
2013
$650
142.9
130.0
2012
Corn - Direct & Overhead Expense (cash rented land)
Corn Yields (cash rented land) 160.0
$335
$300
30.0
$256
$200
2010
2011
2012
2013
2014
2010
2012
2013
$360
37.0 34.2
$330 $310
32.8
30.8
2014
Soybeans - Direct & Overhead Expense (cash rented land)
Soybeans Yields (cash rented land) 40.0
2011
$311
$278
30.6
30.0
$260
20.0
$244
$160
2010
2011
2012
2013
2014 Northern Minnesota Annual Report
2014
2010
Page 29
2011
2012
2013
2014
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Corn on Owned Land Avg. Of All Farms
40 - 60%
High 20%
170
34
34
Yield per acre (bu.) Operators share of yield % Value per bu. Other product return per acre Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
118.76 100.00 3.42 3.97 410.68 86.01 9.58 506.27
113.70 100.00 3.48 6.66 402.26 64.67 4.00 470.93
129.27 100.00 3.53 3.52 459.27 135.94 26.06 621.27
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Drying expense Storage Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Machinery leases Hauling and trucking Marketing Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
101.25 124.34 27.02 21.51 15.73 1.23 0.47 38.40 49.52 13.15 1.04 2.24 1.50 0.68 5.78 3.20 407.08 99.19
97.16 112.88 26.04 20.40 12.63 0.32 0.66 43.58 50.26 12.12 2.83 0.76 0.72 6.49 2.97 389.81 81.11
100.67 121.45 25.10 23.47 15.63 0.67 37.80 33.40 6.64 0.18 4.13 0.66 0.37 5.06 3.70 378.93 242.34
Overhead Expenses Hired labor Machinery leases Building leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
14.70 1.87 0.99 18.12 10.21 7.10 4.59 51.44 58.34 7.26 174.59 581.67 -75.40
20.29 4.07 0.03 13.52 9.95 6.64 3.06 66.52 43.82 5.70 173.61 563.42 -92.49
13.88 0.72 1.01 19.94 8.55 6.65 4.58 52.18 66.50 8.64 182.64 561.57 59.70
0.29 -75.12 51.43 -126.54
-92.49 37.43 -129.92
1.16 60.86 50.11 10.75
3.43 4.90 4.06 4.49
3.43 4.96 4.29 4.62
2.93 4.34 3.05 3.44
Net value per unit Machinery cost per acre Est. labor hours per acre
3.42 162.84 4.25
3.48 162.93 3.95
3.53 148.07 3.94
2014 Northern Minnesota Annual Report
Page 30
Farm Business Management Education Programs
Number of farms
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Corn on Cash Rent Avg. Of All Farms
40 - 60%
High 20%
200
40
40
Yield per acre (bu.) Operators share of yield % Value per bu. Other product return per acre Total product return per acre Hedging gains/losses per acre Crop insurance per acre Other crop income per acre Gross return per acre
118.20 100.00 3.49 4.07 416.31 0.30 100.05 4.97 521.63
115.36 100.00 3.48 6.23 407.68 71.39 3.39 482.46
128.43 100.00 3.49 8.56 456.61 149.91 7.56 614.08
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Drying expense Storage Fuel & oil Repairs Custom hire Hired labor Land rent Machinery leases Utilities Hauling and trucking Marketing Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
98.79 129.22 26.44 20.96 14.82 1.57 37.43 49.23 11.14 1.77 101.95 4.02 0.52 1.09 0.77 6.94 2.29 508.96 12.67
98.78 127.14 24.92 17.63 13.65 2.13 32.10 47.96 9.28 0.16 84.72 4.80 0.17 0.60 0.48 8.69 1.71 474.91 7.54
97.11 117.03 24.58 19.20 8.79 37.13 38.18 6.42 1.61 92.17 0.71 1.13 0.64 0.15 5.52 2.95 453.32 160.76
Overhead Expenses Hired labor Machinery leases Building leases Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
18.22 3.82 0.73 7.59 5.34 4.97 6.92 48.83 5.78 102.20 611.16 -89.53
19.60 1.87 0.12 7.50 4.10 4.64 8.52 42.93 7.23 96.52 571.44 -88.98
14.35 0.66 0.23 8.38 6.43 4.60 5.35 51.45 4.34 95.80 549.12 64.96
0.26 -89.27 42.30 -131.57
0.01 -88.97 36.81 -125.78
1.25 66.21 41.98 24.23
4.31 5.17 4.24 4.60
4.12 4.95 4.25 4.57
3.53 4.28 2.97 3.30
Net value per unit Machinery cost per acre Est. labor hours per acre
3.49 155.90 3.74
3.48 142.88 3.03
3.49 133.34 3.55
2014 Northern Minnesota Annual Report
Page 31
Farm Business Management Education Programs
Number of farms
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Soybeans on Owned Land Avg. Of All Farms
40 - 60%
High 20%
148
29
30
Yield per acre (bu.) Operators share of yield % Value per bu. Other product return per acre Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
33.02 100.00 9.73 0.12 321.52 18.08 2.65 342.25
33.64 100.00 9.66 324.79 18.68 0.77 344.24
38.17 100.00 9.90 377.71 30.32 4.99 413.01
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Drying expense Fuel & oil Repairs Custom hire Hired labor Machinery leases Hauling and trucking Marketing Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
62.30 32.44 20.87 15.67 0.33 21.96 24.08 6.68 0.55 0.84 0.89 0.53 3.59 1.23 191.96 150.28
63.58 35.63 26.85 14.64 0.60 22.38 28.27 8.58 1.43 0.37 1.07 0.29 3.93 0.98 208.59 135.64
58.46 34.94 22.18 16.64 0.05 20.34 17.98 3.15 0.94 1.27 0.36 0.20 1.73 1.13 179.39 233.62
Overhead Expenses Hired labor Machinery leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
8.82 1.43 12.49 5.90 4.32 2.53 26.88 31.85 3.18 97.41 289.37 52.87
8.48 0.92 11.80 6.33 5.06 2.65 22.35 24.09 2.25 83.93 292.53 51.71
8.44 0.33 15.67 5.22 3.52 2.58 25.52 36.72 3.28 101.28 280.67 132.34
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
0.30 53.17 28.28 24.89
0.21 51.92 29.60 22.32
0.85 133.20 28.06 105.13
Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management
5.81 8.76 8.12 8.98
6.20 8.70 8.11 8.99
4.70 7.35 6.41 7.14
Net value per unit Machinery cost per acre Est. labor hours per acre
9.73 87.39 1.94
9.66 84.73 2.27
9.90 79.78 1.74
2014 Northern Minnesota Annual Reporrt
Page 32
Number of farms
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Soybeans on Cash Rent Avg. Of All Farms
40 - 60%
High 20%
194
39
39
Yield per acre (bu.) Operators share of yield % Value per bu. Other product return per acre Total product return per acre Hedging gains/losses per acre Crop insurance per acre Other crop income per acre Gross return per acre
32.83 100.00 9.78 0.03 321.01 0.04 17.08 4.07 342.20
31.33 100.00 10.06 0.09 315.36 10.73 6.46 332.55
39.52 100.00 9.93 0.10 392.59 26.78 7.45 426.82
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Drying expense Fuel & oil Repairs Custom hire Hired labor Land rent Machinery leases Hauling and trucking Marketing Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
63.91 31.20 20.78 16.57 0.54 21.62 23.84 5.20 1.53 80.62 2.16 0.45 0.36 3.27 1.60 273.65 68.55
65.97 28.61 19.43 17.01 0.00 23.51 24.50 4.44 0.77 72.05 0.34 0.69 0.25 2.41 1.24 261.23 71.32
61.32 23.14 26.65 17.58 1.75 20.91 22.09 5.13 81.54 2.14 0.44 0.70 3.29 1.62 268.31 158.51
Overhead Expenses Hired labor Machinery leases Building leases Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
7.25 2.88 0.72 4.90 3.82 2.74 3.66 26.24 3.73 55.94 329.59 12.61
7.39 1.79 0.89 4.60 4.07 2.01 2.44 22.32 1.79 47.30 308.53 24.02
8.67 5.26 0.48 5.14 4.08 3.19 4.51 28.02 3.37 62.72 331.04 95.79
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
0.43 13.04 25.24 -12.20
0.13 24.15 25.12 -0.97
95.79 27.07 68.72
Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management
8.34 10.04 9.38 10.15
8.34 9.85 9.29 10.09
6.79 8.38 7.51 8.19
Net value per unit Machinery cost per acre Est. labor hours per acre
9.78 83.48 1.65
10.06 78.08 1.66
9.93 85.32 1.80
2014 Northern Minnesota Annual Report
Page 33
Number of farms
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Wheat, Spring on Owned Land Avg. Of All Farms
40 - 60%
High 20%
74
15
15
Yield per acre (bu.) Operators share of yield % Value per bu. Other product return per acre Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
60.20 100.00 5.62 0.28 338.87 9.45 4.92 353.24
60.52 100.00 5.39 1.71 328.06 7.89 7.10 343.04
70.23 100.00 5.74 402.99 15.89 14.82 433.70
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Drying expense Fuel & oil Repairs Custom hire Hired labor Machinery leases Hauling and trucking Marketing Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
23.06 97.25 31.20 13.66 4.34 21.94 21.23 7.08 1.20 0.44 0.56 0.62 2.90 1.32 226.80 126.44
26.23 96.90 30.08 16.27 3.31 21.31 22.38 5.30 0.91 2.05 4.44 0.97 230.15 112.89
23.02 84.06 27.65 10.27 4.44 21.06 19.65 5.15 0.73 0.92 0.33 0.01 2.20 0.53 200.02 233.69
Overhead Expenses Hired labor Machinery leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
12.65 1.29 10.21 6.13 4.51 2.52 18.72 33.91 3.65 93.61 320.40 32.83
10.38 2.84 10.15 5.76 4.14 3.15 26.08 24.87 3.24 90.60 320.75 22.29
12.83 0.43 12.45 5.08 3.78 2.19 18.74 40.16 4.35 100.02 300.04 133.67
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
0.35 33.18 27.23 5.95
22.29 26.39 -4.10
133.67 26.49 107.17
Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management
3.77 5.32 5.07 5.53
3.80 5.30 5.02 5.46
2.85 4.27 3.84 4.21
Net value per unit Machinery cost per acre Est. labor hours per acre
5.62 86.33 1.79
5.39 79.42 1.87
5.74 89.08 1.89
2014 Northern Minnesota Annual Report
Page 34
Number of farms
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Wheat, Spring on Cash Rent Avg. Of All Farms
40 - 60%
High 20%
101
20
21
Yield per acre (bu.) Operators share of yield % Value per bu. Other product return per acre Total product return per acre Hedging gains/losses per acre Crop insurance per acre Other crop income per acre Gross return per acre
62.39 100.00 5.56 0.39 347.59 0.08 5.52 8.34 361.53
57.44 100.00 5.46 313.75 4.01 3.78 321.54
68.19 100.00 5.93 1.16 405.54 18.03 23.02 446.59
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Drying expense Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Machinery leases Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
23.13 94.69 29.09 13.58 3.83 0.17 21.91 23.35 6.79 1.84 71.67 1.63 2.86 1.52 296.07 65.45
23.84 94.34 27.92 14.30 1.71 0.62 20.29 20.57 5.45 64.62 5.47 3.51 1.70 284.34 37.20
22.90 84.84 27.23 13.02 4.24 0.04 17.37 23.15 4.99 0.85 64.53 1.61 2.54 1.30 268.60 177.99
Overhead Expenses Hired labor Machinery leases Building leases Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
8.68 2.54 0.86 5.07 3.94 2.23 2.90 25.84 3.20 55.26 351.33 10.20
11.04 2.20 0.02 3.87 3.05 1.89 3.51 26.74 1.64 53.96 338.30 -16.76
10.72 4.17 0.12 4.74 2.81 1.83 3.58 25.82 3.56 57.35 325.95 120.64
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
0.14 10.33 24.77 -14.43
-16.76 21.39 -38.15
120.64 25.27 95.37
4.75 5.63 5.40 5.80
4.95 5.89 5.75 6.13
3.94 4.78 4.16 4.53
Net value per unit Machinery cost per acre Est. labor hours per acre
5.57 83.46 1.54
5.46 82.62 1.38
5.93 78.87 1.55
2014 Northern Minnesota Annual Report
Page 35
Number of farms
Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Corn Silage on Owned Land Avg. Of All Farms
40 - 60%
High 20%
151
30
31
Yield per acre (ton) Operators share of yield % Value per ton Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
14.31 100.00 35.05 501.67 83.27 1.20 586.14
14.88 100.00 34.47 512.72 58.09 2.14 572.94
17.35 100.00 35.24 611.48 142.68 0.51 754.67
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Storage Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Machinery leases Utilities Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
92.84 73.60 28.69 17.84 4.16 3.30 51.84 71.04 40.88 1.07 2.93 0.68 4.01 3.47 396.36 189.78
94.41 73.40 30.92 14.90 5.83 2.55 55.85 65.98 50.71 0.18 0.62 0.28 5.12 3.83 404.59 168.36
94.26 70.15 28.49 23.78 1.01 4.54 53.78 60.53 28.40 2.16 3.80 0.27 2.87 3.58 377.60 377.07
Overhead Expenses Custom hire Hired labor Machinery leases Building leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
0.13 29.41 5.09 0.59 12.92 11.29 6.59 3.18 48.41 54.71 7.78 180.10 576.47 9.68
23.21 0.86 1.80 16.10 10.80 8.80 3.84 35.76 53.35 9.20 163.71 568.30 4.64
0.52 34.29 2.19 12.76 10.82 6.69 2.90 37.91 60.84 5.40 174.30 551.90 202.77
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
9.68 54.31 -44.63
4.64 64.59 -59.95
202.77 45.56 157.21
Cost of Production Total direct expense per ton Total dir & ovhd exp per ton Less govt & other income With labor & management
27.70 40.28 34.38 38.17
27.20 38.20 34.16 38.50
21.76 31.81 23.56 26.18
Net value per unit Machinery cost per acre Est. labor hours per acre
35.05 229.01 5.22
34.47 227.70 6.53
35.24 211.58 4.90
2014 Northern Minnesota Annual Report
Page 36
Farm Business Management Education Programs
Number of farms
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Corn Silage on Cash Rent Avg. Of All Farms
40 - 60%
High 20%
148
29
30
Yield per acre (ton) Operators share of yield % Value per ton Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
13.37 100.00 35.02 468.38 104.47 2.20 575.04
12.97 100.00 35.85 465.03 74.04 1.02 540.08
15.60 100.00 35.86 559.58 167.30 0.02 726.90
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Storage Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Machinery leases Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
94.83 82.03 26.69 18.29 2.16 4.87 51.28 66.13 35.89 1.21 89.51 12.50 4.36 3.42 493.18 81.86
95.32 94.38 30.33 14.47 2.08 2.83 43.13 68.83 31.83 0.50 68.19 0.51 5.13 3.72 461.23 78.85
83.18 70.96 27.30 19.23 0.80 3.79 48.85 48.48 13.71 1.79 65.97 0.64 3.05 1.31 389.07 337.84
Overhead Expenses Hired labor Machinery leases Building leases Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
29.51 6.61 0.50 6.74 5.88 3.51 8.74 52.48 6.27 120.25 613.43 -38.39
31.04 10.48 0.47 7.00 4.42 3.07 8.32 45.12 7.16 117.08 578.31 -38.22
25.20 0.16 0.00 6.07 5.25 1.89 5.41 52.29 3.39 99.67 488.74 238.17
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
-38.39 49.47 -87.86
-38.22 49.23 -87.46
238.17 53.18 184.99
Cost of Production Total direct expense per ton Total dir & ovhd exp per ton Less govt & other income With labor & management
36.87 45.86 37.89 41.59
35.55 44.58 38.79 42.59
24.93 31.32 20.60 24.01
Net value per unit Machinery cost per acre Est. labor hours per acre
35.02 229.45 5.06
35.85 204.22 4.55
35.86 166.01 4.03
2014 Northern Minnesota Annual Report
Page 37
Farm Business Management Education Programs
Number of farms
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Hay, Alfalfa on Owned Land Avg. Of All Farms
40 - 60%
High 20%
116
23
24
Yield per acre (ton) Operators share of yield % Value per ton Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
4.04 100.00 176.49 712.22 1.61 3.72 717.56
3.32 100.00 204.63 678.96 1.50 1.34 681.80
5.66 100.00 222.65 1,260.76 0.49 12.84 1,274.09
Direct Expenses Fertilizer Crop chemicals Non-chemical crop protect Crop insurance Storage Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Machinery leases Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
37.97 3.95 0.21 4.65 4.60 2.24 49.27 65.30 16.45 1.27 1.57 4.62 4.26 196.38 521.18
28.56 6.19 0.23 5.30 6.20 0.53 43.06 74.20 39.61 0.17 6.83 7.56 2.50 220.93 460.87
56.45 5.33 1.02 3.65 5.80 5.62 59.39 63.54 21.97 0.27 2.34 2.44 227.81 1,046.27
Overhead Expenses Hired labor Machinery leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
27.63 1.52 14.51 12.44 7.89 3.99 52.30 55.82 7.37 183.46 379.84 337.71
26.56 4.18 14.43 11.21 9.41 4.33 59.79 54.55 6.53 190.99 411.92 269.88
21.30 0.04 15.13 12.91 9.55 4.64 65.29 65.64 8.16 202.65 430.47 843.62
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
0.06 337.77 51.22 286.55
269.88 53.13 216.75
843.62 49.26 794.36
Cost of Production Total direct expense per ton Total dir & ovhd exp per ton Less govt & other income With labor & management
48.66 94.13 92.79 105.48
66.59 124.15 123.29 139.30
40.23 76.02 73.67 82.36
Net value per unit Machinery cost per acre Est. labor hours per acre
176.49 190.49 5.80
204.63 227.18 6.10
222.65 209.54 5.76
2014 Northern Minnesota Annual Report
Page 38
Farm Business Management Education Programs
Number of farms
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Hay, Alfalfa on Cash Rent Avg. Of All Farms
40 - 60%
High 20%
103
20
21
Yield per acre (ton) Operators share of yield % Value per ton Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
3.69 100.00 174.36 643.28 2.37 1.24 646.88
3.79 100.00 164.67 624.59 0.18 3.08 627.85
5.24 100.00 207.94 1,090.23 0.31 1,090.55
Direct Expenses Fertilizer Crop chemicals Crop insurance Storage Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Machinery leases Hauling and trucking Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
39.18 5.74 3.81 2.93 2.54 44.05 57.17 24.74 2.47 84.40 2.56 0.24 4.87 2.20 276.90 369.98
30.48 8.07 4.05 0.46 0.26 45.81 71.69 35.55 1.05 87.96 4.18 6.65 3.14 299.37 328.48
34.17 3.74 5.52 1.61 1.80 40.80 49.67 12.07 0.31 68.69 0.17 0.91 2.06 1.02 222.54 868.01
Overhead Expenses Hired labor Machinery leases Building leases Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
22.43 3.12 0.52 9.01 6.48 4.12 6.40 46.15 6.36 104.59 381.48 265.40
27.70 6.15 0.66 9.04 9.65 4.44 10.68 45.10 9.91 123.33 422.70 205.15
20.84 0.06 0.35 7.76 5.51 2.98 4.94 60.97 4.90 108.32 330.85 759.69
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
265.40 43.27 222.13
205.15 47.47 157.68
759.69 40.02 719.67
Cost of Production Total direct expense per ton Total dir & ovhd exp per ton Less govt & other income With labor & management
75.05 103.40 102.43 114.16
78.93 111.45 110.58 123.10
42.45 63.10 63.04 70.68
Net value per unit Machinery cost per acre Est. labor hours per acre
174.36 179.25 4.73
164.67 215.29 5.33
207.94 162.13 4.73
Number of farms
2014 Northern Minnesota Annual Report
Page 39
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Hay, Mixed on Owned Land Avg. Of All Farms
40 - 60%
High 20%
40
8
8
1.86 100.00 94.07 175.33 1.07 0.45 176.85
2.47 100.00 75.85 187.54 187.54
3.34 100.00 156.28 521.97 9.58 4.04 535.59
0.95 12.32 0.35 0.74 0.28 1.28 27.14 35.35 13.54 1.57 1.73 0.84 96.09 80.76
23.46 0.70 1.22 22.40 30.08 6.36 0.78 6.38 91.37 96.17
2.34 3.10 2.77 0.53 0.32 26.01 62.42 32.53 1.44 0.04 131.49 404.09
Overhead Expenses Hired labor Machinery leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
3.50 0.37 8.46 4.95 3.35 1.68 22.45 27.04 4.68 76.48 172.56 4.29
13.67 1.26 12.39 2.98 4.59 0.70 62.97 20.04 2.46 121.05 212.42 -24.88
8.58 11.37 6.22 3.65 3.50 10.00 40.33 8.77 92.41 223.90 311.69
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
4.29 33.63 -29.35
-24.88 24.38 -49.26
311.69 69.92 241.77
Cost of Production Total direct expense per ton Total dir & ovhd exp per ton Less govt & other income With labor & management
51.55 92.59 91.77 109.82
36.96 85.92 85.92 95.78
39.37 67.04 62.96 83.90
Net value per unit Machinery cost per acre Est. labor hours per acre
94.07 104.39 2.96
75.85 83.44 2.90
156.28 161.43 4.21
Number of farms Yield per acre (ton) Operators share of yield % Value per ton Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Storage Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
2014 Northern Minnesota Annual Report
Page 40
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Hay, Mixed on Cash Rent Avg. Of All Farms
40 - 60%
High 20%
43
8
9
Yield per acre (ton) Operators share of yield % Value per ton Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
1.91 100.00 102.85 196.92 1.03 0.69 198.63
1.50 100.00 95.48 142.90 142.90
3.79 100.00 141.81 538.00 5.11 6.41 549.52
Direct Expenses Fertilizer Crop chemicals Crop insurance Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Machinery leases Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
8.66 0.38 1.57 1.23 28.50 33.28 5.13 2.21 34.93 1.15 1.96 1.24 120.23 78.40
2.05 0.87 0.90 24.29 24.66 9.11 0.56 16.44 2.29 0.66 81.84 61.06
11.93 2.82 0.34 26.05 37.96 12.54 1.53 57.80 4.53 155.51 394.01
Overhead Expenses Hired labor Machinery leases Building leases Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
7.07 4.85 0.18 4.30 2.00 1.01 4.55 24.66 3.58 52.22 172.45 26.18
11.55 2.60 0.23 3.94 1.19 1.64 2.09 27.68 6.89 57.81 139.65 3.25
3.66 0.28 0.65 6.55 3.80 3.01 8.34 43.73 3.86 73.88 229.39 320.13
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
26.18 28.73 -2.55
3.25 36.48 -33.23
320.13 39.80 280.33
Cost of Production Total direct expense per ton Total dir & ovhd exp per ton Less govt & other income With labor & management
62.80 90.07 89.17 104.18
54.68 93.31 93.31 117.68
40.99 60.46 57.43 67.92
Net value per unit Machinery cost per acre Est. labor hours per acre
102.85 100.88 2.71
95.48 88.67 3.32
141.81 125.87 2.86
Number of farms
2014 Northern Minnesota Annual Report
Page 41
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Hay, Grass on Cash Rent Avg. Of All Farms
40 - 60%
High 20%
80
16
16
Yield per acre (ton) Operators share of yield % Value per ton Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
2.07 100.00 89.60 185.61 0.30 0.26 186.17
2.20 100.00 79.38 174.66 0.70 0.33 175.69
3.17 100.00 111.87 354.91 354.91
Direct Expenses Fertilizer Storage Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Machinery leases Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
19.24 0.84 0.96 19.98 25.90 5.01 1.22 47.23 0.83 4.76 1.04 127.01 59.16
27.38 0.22 15.65 22.53 0.54 29.98 0.10 6.00 1.05 103.47 72.23
10.87 24.64 29.22 2.90 45.82 0.15 4.00 0.41 118.02 236.89
Overhead Expenses Hired labor Machinery leases Building leases Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
13.31 2.41 0.60 2.88 2.09 1.21 4.98 23.21 3.02 53.72 180.73 5.44
17.42 1.77 1.02 1.69 0.80 0.45 4.83 16.22 1.98 46.19 149.66 26.03
7.32 0.91 0.32 3.33 3.69 1.26 6.22 37.25 3.76 64.05 182.07 172.83
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
0.32 5.76 17.52 -11.76
26.03 11.50 14.54
3.16 175.99 27.06 148.93
Cost of Production Total direct expense per ton Total dir & ovhd exp per ton Less govt & other income With labor & management
61.31 87.25 86.82 95.28
47.02 68.02 67.55 72.77
37.20 57.39 56.39 64.92
Net value per unit Machinery cost per acre Est. labor hours per acre
89.60 80.48 2.28
79.38 60.55 1.71
111.87 98.41 3.63
2014 Northern Minnesota Annual Report
Page 42
Number of farms
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Owned and Rented Acres Combined * Establish Alfalfa Hay
Pasture
Intensive Pasture
Prevented Planting
65
73
5
124
1.23 100.00 165.43 205.03 5.33 209.30
1.59 100.00 15.37 24.73 0.58 25.02
4.50 100.00 25.19 113.44 113.44
236.52 100.00 1.00 236.52 236.52
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land Rent Utilities Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
94.91 36.69 4.85 3.08 1.73 48.30 58.48 17.84 1.01 53.31 0.17 4.07 2.06 330.29 -120.98
0.14 0.70 3.26 4.24 0.15 10.26 0.41 0.27 19.44 5.59
5.26 0.44 10.80 18.58 2.59 25.52 0.94 0.30 0.02 64.44 49.00
3.20 9.03 3.27 18.08 17.45 20.21 4.80 0.40 43.35 3.24 1.21 124.23 112.29
Overhead Expenses Hired labor Mach and bldg leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
27.16 4.09 5.99 8.64 5.24 3.69 30.29 50.16 7.47 142.73 473.02 -263.72
1.37 0.52 2.35 0.66 0.41 4.45 3.40 0.78 13.96 33.40 -8.38
1.85 1.77 7.35 2.12 2.07 0.74 3.78 9.77 5.54 35.00 99.44 14.00
9.46 1.39 5.01 4.51 2.85 1.74 14.20 27.30 3.57 70.03 194.26 42.27
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
-263.72 44.56 -308.27
-8.38 3.57 -11.95
14.00 52.54 -38.54
42.27 24.48 17.79
Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management
267.89 383.66 379.33 415.47
12.22 21.00 20.63 22.88
14.31 22.08 22.08 33.75
-
Net value per unit Machinery cost per acre Est. labor hours per acre
165.43 186.27 5.39
15.37 11.93 0.29
25.19 40.58 3.09
1.00 70.74 2.03
Number of farms Yield per acre Operators share of yield % Value Total product return per acre Other crop income per acre Gross return per acre
* Combined data for rented and owned land. Actual land cost is the sum of: Land Rent, Interest, & RE taxes. 2014 Northern Minnesota Annual Report
Page 43
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Organic Crops * Corn Silage
Hay, Alfalfa
Pasture
5
7
5
Yield per acre (unit) Operators share of yield % Value per unit Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
6.39 100.00 61.91 395.00 15.60 411.10
2.55 100.00 167.74 428.43 8.12 436.55
5.69 100.00 14.80 84.22 84.22
Direct Expenses Seed Fertilizer Non-chemical crop protect Crop insurance Fuel & oil Repairs Custom hire Land rent Organic certification Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
105.42 111.46 0.77 3.92 46.32 76.53 7.63 48.10 2.95 2.19 405.29 5.81
21.17 0.80 1.45 23.44 45.65 27.59 30.14 1.70 1.93 2.13 159.86 276.69
5.35 5.32 10.22 7.75 1.70 0.57 2.05 32.97 51.26
Overhead Expenses Hired labor Machinery & Building leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
18.87 9.81 15.96 6.52 5.28 7.78 14.35 39.82 5.55 123.93 529.22 -118.12
18.35 4.48 3.98 10.57 5.47 2.77 18.30 23.11 7.68 94.70 254.56 181.99
1.40 2.94 20.55 3.05 1.52 0.24 20.25 5.83 2.86 58.65 91.61 -7.39
Government payments Net return with govt payments Labor & Management charge Net return over lbr & mgt
-118.12 34.09 -152.21
181.99 24.74 157.25
-7.39 4.13 -11.52
63.44 82.84 80.40 85.73
62.59 99.67 96.49 106.17
5.79 16.10 16.10 16.82
61.91 183.51 6.02
167.74 130.83 3.99
14.80 23.93 0.89
Number of farms
Cost of Production Total direct expense per unit Total dir & ovhd exp per unit Less govt & other income With labor & management Net value per unit Machinery cost per acre Est. labor hours per acre
* Combined data for rented and owned land. Actual land cost is the sum of: Land Rent, Interest, & RE taxes. 2014 Northern Minnesota Annual Report
Page 44
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Organic Crops * Barley
Soybeans
Corn
5
5
6
36.19 100.00 10.01 362.18 53.44 42.39 458.01
13.51 100.00 27.10 366.19 162.81 529.01
67.29 100.00 11.38 765.48 153.86 919.34
Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Utilities Organic certification Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
23.83 43.94 10.59 4.02 5.66 19.07 64.18 40.04 23.19 57.35 0.53 2.56 10.28 2.39 307.63 150.37
36.12 16.53 21.45 12.46 17.36 36.68 19.91 5.41 10.94 0.80 177.66 351.34
91.50 72.63 0.35 15.22 12.53 36.70 94.57 32.38 13.24 40.84 0.30 6.48 10.74 3.19 430.66 488.67
Overhead Expenses Hired labor Machinery & Building leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
24.79 0.26 1.84 13.70 11.48 3.78 6.85 22.95 0.02 85.67 393.30 64.71
1.01 0.33 8.76 12.81 3.97 3.92 20.30 20.19 6.54 77.84 255.50 273.51
3.54 1.62 11.32 14.82 8.74 4.25 35.03 44.81 6.33 130.45 561.12 358.22
Government payments Net return with govt payments Labor & Management charge Net return over lbr & mgt
64.71 28.22 36.48
273.51 25.81 247.70
358.22 34.52 323.70
Cost of Production Total direct expense per unit Total dir & ovhd exp per unit Less govt & other income With labor & management
8.50 10.87 8.22 9.00
13.15 18.91 6.86 8.77
6.40 8.34 6.05 6.56
10.01 140.45 3.74
27.10 88.88 2.32
11.38 214.95 5.03
Number of farms Yield per acre (unit) Operators share of yield % Value per unit Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre Direct Expenses Seed Fertilizer Non-chemical crop protect Crop insurance Drying expense
Net value per unit Machinery cost per acre Est. labor hours per acre
* Combined data for rented and owned land. Actual land cost is the sum of: Land Rent, Interest, & RE taxes. 2014 Northern Minnesota Annual Report
Page 45
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Irrigated Crops * Corn
Corn Silage Average High 20%
Average
High 20%
49
10
19
5
Yield per acre Operators share of yield % Value Other product return per acre Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
153.80 100.00 3.48 15.92 551.04 119.91 7.12 678.08
155.75 100.00 3.70 9.76 585.57 217.21 6.32 809.09
21.30 100.00 37.23 793.04 85.32 878.36
21.07 100.00 50.01 1053.57 74.32 1127.89
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Drying expense Storage Irrigation energy Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land Rent Machinery leases Utilities Hauling and trucking Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
112.23 165.83 34.08 21.77 14.31 1.33 20.51 0.89 44.61 52.71 10.12 0.91 64.73 0.36 0.56 1.49 9.97 4.04 560.59 117.49
102.63 148.68 39.82 29.55 19.12 1.17 18.58 0.79 47.35 45.15 3.51 0.61 45.65 0.51 0.36 0.09 5.35 0.82 509.73 299.36
101.28 97.44 32.77 18.82 0.10 17.62 10.48 67.81 73.45 36.07 0.22 24.80 2.05 2.11 6.61 7.83 499.46 378.90
84.13 90.36 25.02 8.43 11.04 55.64 53.09 2.93 5.08 3.75 339.46 788.43
Overhead Expenses Hired labor Mach and bldg leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
23.07 8.19 9.46 10.78 5.54 6.63 38.64 82.49 11.95 196.75 757.34 -79.26
33.30 1.08 15.29 9.96 5.43 5.49 60.75 97.57 11.87 240.75 750.48 58.61
41.41 5.04 12.24 12.17 6.58 3.60 40.12 69.33 6.67 197.17 696.63 181.74
31.86 38.37 12.27 6.15 8.64 3.42 39.38 50.32 24.56 214.97 554.43 573.46
-79.25 54.33 -133.58
58.61 58.04 0.57
181.74 66.17 115.57
573.46 58.02 515.44
3.64 4.92 3.99 4.35
3.27 4.82 3.32 3.69
23.45 32.70 28.70 31.80
16.11 26.32 22.79 25.54
3.49 195.84 3.90
3.70 195.24 4.26
37.23 255.30 6.34
50.01 221.73 3.77
Number of farms
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management Net value per unit Machinery cost per acre Est. labor hours per acre
* Combined data for rented and owned land. Actual land cost is the sum of: Land Rent, Interest, & RE taxes. 2014 Northern Minnesota Annual Report
Page 46
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Irrigated Crops * Dark Red Soybeans Kidney Beans Hay, Alfalfa
Strawberries
16
6
11
7
43.83 100.00 9.85 431.87 16.15 3.05 451.07
20.91 100.00 54.62 1,141.90 29.20 1,171.10
5.01 100.00 202.72 1,015.57 16.20 4.58 1,036.35
4,522.18 100.00 2.41 10,903.90 10,903.90
55.94 32.65 39.27 14.39 18.43 18.19 27.73 8.94 0.92 66.48 4.55 6.37 293.86 157.21
114.83 102.52 94.19 27.70 18.07 55.42 52.41 8.62 33.26 29.70 0.35 537.70 633.40
64.19 11.03 5.53 2.78 22.07 8.83 72.77 74.63 38.92 1.30 36.62 6.76 13.20 358.63 677.72
271.35 228.25 333.92 70.15 186.55 326.17 595.87 221.75 1,764.33 8.21 16.26 620.59 4,643.37 6,260.53
9.99 2.90 6.46 7.01 2.88 2.12 14.28 30.51 1.69 77.85 371.71 79.37
22.91 13.56 7.76 11.75 4.98 5.86 34.48 74.21 13.06 188.58 726.28 444.82
42.02 5.61 17.32 5.54 5.39 28.21 91.15 4.47 199.71 558.34 478.01
204.99 172.96 113.23 258.22 52.34 299.90 446.34 770.50 784.96 3,103.44 7,746.81 3,157.09
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management
79.37 27.36 52.01
444.82 86.29 358.53
478.01 62.89 415.12
3,157.09 1,905.46 1,251.62
6.70 8.48 8.04 8.67
25.72 34.74 33.34 37.47
71.59 111.45 107.31 119.86
1.03 1.71 1.71 2.13
Net value per unit Machinery cost per acre Est. labor hours per acre
9.85 86.66 2.28
54.62 209.25 3.67
202.72 277.80 5.12
2.41 1,627.24 481.06
Number of farms Yield per acre Operators share of yield % Value Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Marketing Storage Irrigation energy Packaging and supplies Fuel & oil Repairs Custom hire and Trucking Hired labor Land Rent Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre Overhead Expenses Hired labor Mach and bldg leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
* Combined data for rented and owned land. Actual land cost is the sum of: Land Rent, Interest, & RE taxes. 2014 Northern Minnesota Annual Report
Page 47
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Owned and Rented Acres Combined * Barley
Oats
Soybeans, Seed
Soybeans, Food
11
54
8
7
Yield per acre Operators share of yield % Value Other product return per acre Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
45.82 100.00 5.28 1.79 243.63 65.94 11.70 321.26
65.92 100.00 3.29 5.47 222.61 5.83 36.23 264.67
40.12 100.00 10.44 418.97 35.69 16.98 471.63
21.10 100.00 13.79 290.89 55.01 2.53 348.43
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Drying expense Fuel & oil Repairs Custom hire Hired labor Land Rent Hauling and trucking Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
17.23 72.39 26.25 17.25 3.76 33.08 35.79 1.29 0.50 48.50 5.38 3.13 264.69 56.57
22.37 40.39 6.26 7.76 0.25 20.54 24.02 9.11 1.24 26.49 0.58 2.71 3.59 165.30 99.36
56.14 27.51 26.91 14.37 17.09 30.00 15.91 86.67 0.21 1.59 3.78 280.60 191.04
29.86 41.72 31.96 18.73 0.75 21.08 23.41 8.47 5.42 59.69 1.73 0.51 243.33 105.10
Overhead Expenses Hired labor Machinery leases Building leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
8.57 6.42 2.40 2.05 6.91 6.51 3.29 15.72 35.16 2.21 89.23 353.93 -32.67
8.71 1.49 0.30 5.41 4.53 2.86 1.90 23.10 26.97 5.75 81.04 246.34 18.33
5.85 0.90 6.00 4.61 3.99 2.75 13.71 43.92 1.92 83.65 364.24 107.39
4.62 1.48 0.15 3.86 6.03 4.06 1.71 10.87 27.41 3.68 63.86 307.19 41.24
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
-32.67 29.52 -62.19
0.20 18.52 26.09 -7.57
107.39 31.97 75.42
41.24 27.34 13.91
5.78 7.72 5.99 6.63
2.51 3.74 3.01 3.41
6.99 9.08 7.77 8.56
11.53 14.56 11.83 13.13
5.28 116.29 1.57
3.29 84.74 2.93
10.61 100.55 1.85
13.86 82.32 1.70
Number of farms
Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management Net value per unit Machinery cost per acre Est. labor hours per acre
* Combined data for rented and owned land. Actual land cost is the sum of: Land Rent, Interest, & RE taxes. 2014 Northern Minnesota Annual Report
Page 48
Farm Business Management Education Programs
Crop Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Owned and Rented Acres Combined * Rye
Winter Wheat
Perennial Rye Grass
Navy Beans
12
9
8
6
Yield per acre Operators share of yield % Value Other product return per acre Total product return per acre Crop insurance per acre Other crop income per acre Gross return per acre
29.68 100.00 7.17 18.36 231.21 25.31 256.51
45.65 100.00 5.90 269.48 9.80 279.28
1024.59 100.00 0.70 712.45 0.97 713.42
14.59 100.00 29.82 435.17 50.09 4.74 490.00
Direct Expenses Seed Fertilizer Crop chemicals Crop insurance Drying expense Fuel & oil Repairs Custom hire Hired labor Land Rent Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre
20.46 38.88 0.94 22.72 25.46 13.10 6.68 38.50 6.95 1.89 176.52 79.99
21.40 76.97 19.81 14.50 2.08 21.89 22.96 8.41 48.75 3.77 3.32 242.94 36.34
17.07 106.11 50.99 14.19 5.71 27.49 30.64 15.98 0.89 27.20 3.58 1.17 301.01 412.41
51.68 65.40 66.02 28.98 25.35 48.10 9.97 2.57 61.25 6.14 2.54 368.00 122.00
Overhead Expenses Hired labor Mach and bldg leases RE & pers. property taxes Farm insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre
6.83 0.78 1.01 5.43 2.84 3.38 4.31 33.82 1.88 60.28 236.80 19.71
8.51 4.88 3.09 5.37 3.13 1.75 5.67 25.44 1.06 58.89 301.83 -22.55
15.61 2.70 3.28 8.49 6.03 2.72 5.59 47.92 8.93 101.27 402.28 311.14
30.66 4.61 6.06 6.31 6.08 2.88 20.06 31.41 3.17 111.25 479.24 10.76
Government payments Net return with govt pmts Labor & management charge Net return over lbr & mgt
19.71 19.52 0.20
0.61 -21.94 22.65 -44.59
311.14 46.05 265.09
10.76 19.41 -8.66
Cost of Production Total direct expense per bu. Total dir & ovhd exp per bu. Less govt & other income With labor & management
5.95 7.98 6.51 7.17
5.32 6.61 6.38 6.88
0.29 0.39 0.39 0.44
25.22 32.84 29.08 30.41
7.17 96.10 2.16
5.90 82.18 1.48
0.70 123.97 2.02
29.82 120.18 2.37
Number of farms
Net value per unit Machinery cost per acre Est. labor hours per acre
* Combined data for rented and owned land. Actual land cost is the sum of: Land Rent, Interest, & RE taxes. 2014 Northern Minnesota Annual Report
Page 49
Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) *** Dairy -- Average Per Cwt. Of Milk *** Excluding Organic & Organic Transition Avg. Of All Farms Number of farms Milk sold (hd) Dairy Calves sold (hd) Transferred out (hd) Cull sales (hd) Other income Purchased (hd) Transferred in (hd) Inventory change (hd) Dairy repl net cost Gross margin Direct Expenses Protein Vit Minerals (lb.) Complete Ration (lb.) Corn (bu.) Corn Silage (lb.) Hay, Alfalfa (lb.) Haylage, Alfalfa (lb.) Other feed stuffs (lb) Breeding fees Veterinary BST Supplies Fuel & oil Repairs Custom hire Hired labor Utilities Bedding Total direct expenses Return over direct expense
40 - 60%
High 20%
79
75
378 Quantity 99.37 0.00 0.00 0.00 0.00 0.00 0.00
16.65 6.06 0.28 76.02 10.49 17.20 15.26
Value 24.20 0.36 0.24 1.52 0.14 -0.14 -0.48 0.31 -2.51 23.64
Quantity 99.10 0.00 0.00 0.00
3.96 1.57 1.03 1.45 0.94 0.69 0.58 0.22 0.48 0.21 1.27 0.49 0.76 0.29 1.10 0.15 0.38 15.57 8.07
15.04 4.23 0.27 71.69 8.37 17.14 24.52
0.00 0.00 0.00
Value 24.00 0.30 0.26 1.50 0.16 -0.13 -0.79 0.25 -2.19 23.39
Quantity 99.48 0.00 0.00 0.00
3.88 2.04 0.89 1.45 0.76 0.62 0.70 0.22 0.43 0.26 1.33 0.50 0.75 0.27 1.60 0.22 0.32 16.23 7.16
15.78 2.83 0.27 73.95 10.19 15.89 16.43
0.00 0.00 0.00
Value 24.49 0.43 0.28 1.59 0.13 -0.05 -0.42 0.33 -2.18 24.61 4.22 0.68 1.04 1.46 0.83 0.64 0.70 0.22 0.44 0.18 1.11 0.50 0.73 0.16 0.32 0.06 0.37 13.67 10.93
Overhead Expenses Hired labor Building leases Farm insurance Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
0.76 0.21 0.20 0.29 0.36 0.71 0.28 2.81 18.38 5.26
0.46 0.21 0.20 0.19 0.28 0.59 0.28 2.21 18.44 4.95
1.48 0.23 0.23 0.35 0.36 0.85 0.28 3.77 17.45 7.16
Labor & management charge Net return over lbr & mgt
0.94 4.32
0.67 4.27
1.12 6.04
15.57 18.38 19.06 20.00
16.23 18.44 19.22 19.90
13.67 17.45 17.43 18.55
0.17
0.17
0.17
184.4 23,765 4,354,362 1,625,320 30.4 37.5 6.5 110.4 6.66 10.22 2,429.70 24.36 14.13
223.2 24,594 5,439,104 1,667,988 32.0 38.7 6.4 108.5 6.96 10.34 2,541.78 24.22 13.89
231.0 25,144 5,778,718 1,633,205 31.0 37.6 5.9 114.6 6.60 9.58 2,409.64 24.62 15.03
Cost of Production Per Cwt. Of Milk Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management Est. labor hours per unit Other Information Number of cows Milk produced per cow Total milk sold Lb. of milk sold per FTE Culling percentage Turnover rate Cow death loss percent Percent of barn capacity Feed cost per day Feed cost per cwt. of milk Feed cost per cow Avg. milk price per cwt. Milk price / feed margin 2014 Northern Minnesota Annual Report
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Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) *** Dairy -- Average Per Cow *** Excluding Organic & Organic Transition Avg. Of All Farms Number of farms Milk sold (hd) Dairy Calves sold (hd) Transferred out (hd) Cull sales (hd) Other income Purchased (hd) Transferred in (hd) Inventory change (hd) Dairy repl net cost Gross margin Direct Expenses Protein Vit Minerals (lb.) Complete Ration (lb.) Corn (bu.) Corn Silage (lb.) Hay, Alfalfa (lb.) Haylage, Alfalfa (lb.) Other feed stuffs (lb) Breeding fees Veterinary BST Supplies Fuel & oil Repairs Custom hire Hired labor Utilities Bedding Total direct expenses Return over direct expense
40 - 60%
High 20%
79
75
378 Quantity 23,613.9 0.3 0.7 0.3 0.0 0.4 0.0
3,956.3 1,439.1 65.5 18,066.1 2,492.7 4,088.6 3,626.6
Value 5,751.59 85.39 56.62 360.98 33.70 -33.03 -113.53 72.98 -597.25 5,617.96
Quantity 24,371.4 0.3 0.7 0.3
940.77 372.80 245.95 343.84 222.99 164.58 138.78 51.34 113.99 49.78 301.36 117.58 181.55 68.76 262.25 34.72 89.29 3,700.33 1,917.62
3,698.0 1,040.7 66.7 17,631.8 2,057.6 4,215.6 6,029.9
0.0 0.4 0.0
Value 5,903.64 74.65 64.86 369.86 39.35 -30.89 -193.56 61.65 -538.24 5,751.93
Quantity 25,014.1 0.4 0.7 0.3
954.78 501.12 218.69 356.66 187.22 151.99 171.32 54.64 105.65 63.28 326.23 122.96 183.98 67.47 392.30 54.04 78.50 3,990.82 1,761.11
3,967.8 712.6 67.8 18,595.4 2,562.9 3,994.7 4,131.5
0.0 0.4 0.0
Value 6,157.35 107.46 71.10 399.22 33.92 -12.06 -106.49 83.16 -547.70 6,186.76 1,060.89 171.33 262.48 367.68 209.01 161.78 176.46 54.53 111.44 44.65 279.61 126.15 184.12 40.44 81.00 14.77 91.99 3,438.33 2,748.43
Overhead Expenses Hired labor Building leases Farm insurance Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
179.64 50.86 47.67 69.56 85.05 168.16 67.50 668.43 4,368.76 1,249.20
113.33 51.20 48.71 46.63 68.53 145.76 70.06 544.22 4,535.04 1,216.89
373.20 58.48 56.92 86.99 90.80 212.66 69.34 948.39 4,386.72 1,800.04
Labor & management charge Net return over lbr & mgt
223.19 1,026.01
165.51 1,051.37
281.38 1,518.67
Cost of Production Per Cwt. Of Milk Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management
15.57 18.38 19.06 20.00
16.23 18.44 19.22 19.90
13.67 17.45 17.43 18.55
Est. labor hours per unit
40.68
40.91
42.88
184.4 23,765 4,354,362 1,625,320 30.4 37.5 6.5 110.4 6.66 10.22 2,429.70 24.36 14.13
223.2 24,594 5,439,104 1,667,988 32.0 38.7 6.4 108.5 6.96 10.34 2,541.78 24.22 13.89
231.0 25,144 5,778,718 1,633,205 31.0 37.6 5.9 114.6 6.60 9.58 2,409.64 24.62 15.03
Other Information Number of cows Milk produced per cow Total milk sold Lb. of milk sold per FTE Culling percentage Turnover rate Cow death loss percent Percent of barn capacity Feed cost per day Feed cost per cwt. of milk Feed cost per cow Avg. milk price per cwt. Milk price / feed margin 2014 Northern Minnesota Annual Report
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Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Organic Dairy -- Average Per Cow Avg. Of All Farms Number of farms Milk sold (hd) Dairy Calves sold (hd) Transferred out (hd) Cull sales (hd) Other income Purchased (hd) Transferred in (hd) Inventory change (hd) Dairy repl net cost Gross margin Direct Expenses Protein Vit Minerals (lb.) Complete Ration (lb.) Corn (bu.) Corn Silage (lb.) Haylage, Alfalfa (lb.) Barley, Organic (bu.) Corn, Organic (bu.) Corn Silage, Organic (lb.) Hay, Alfalfa, Organic (lb.) Pasture, Organic (aum) Hay, Grass, Organic (lb.) Other feed stuffs (lb) Veterinary Supplies Fuel & oil Repairs Hired labor Marketing Bedding Total direct expenses Return over direct expense Overhead Expenses Hired labor Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
33 - 66%
High 34%
5
6
15 Quantity 12,729.2 0.1 0.8 0.3 0.0 0.3 0.0
470.5 587.5 12.7 825.2 3,063.6 10.1 22.3 7,263.9 5,640.8 2.3 613.6 2,872.9
Value 3,978.38 31.08 55.47 322.48 121.09 -86.54 -114.77 88.79 -592.04 3,807.30
Quantity 9,592.8 0.0 0.9 0.3
264.98 63.53 146.36 30.94 153.18 80.79 248.09 159.15 475.01 106.90 57.47 180.87 35.24 214.50 86.41 161.25 88.78 41.92 86.47 2,681.85 1,125.45
184.2 448.9 2,427.9 1.6 18.8 8,043.8 8,938.1 2.3 5.9
0.0 0.3 -0.1
Value 2,943.26 22.19 26.83 301.86 138.26 -9.73 -136.49 -46.50 -384.80 2,854.88
Quantity 15,002.8 0.1 0.9 0.3
84.39 90.35 91.05 14.04 213.31 157.48 609.62 70.51 90.55 14.19 187.01 100.50 147.11 71.24 52.39 30.19 2,023.93 830.94
555.6 918.4 26.9 6,477.1 11.9 15.5 8,870.7 1,670.7 1.3 683.5 3,710.0
0.1 0.4 0.1
Value 4,765.23 21.30 97.99 353.09 47.29 -175.97 -144.58 221.29 -603.81 4,587.43 339.64 68.42 309.44 323.86 79.28 156.29 191.52 148.11 88.96 84.68 212.37 45.94 214.79 76.80 160.82 123.66 37.86 154.12 2,816.56 1,770.87
140.14 50.05 76.46 88.58 139.76 494.99 3,176.84 630.46
101.98 57.48 102.84 72.27 109.67 444.25 2,468.18 386.70
214.88 59.82 80.77 105.37 123.26 584.11 3,400.67 1,186.76
262.21 368.25
226.18 160.52
242.75 944.01
Cost of Production Per Cwt. Of Milk Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management
20.57 24.36 26.45 28.47
20.50 25.00 27.00 29.29
18.61 22.47 23.89 25.50
Est. labor hours per unit
39.30
33.55
46.39
87.7 13,041 1,116,858 906,847 28.9 33.6 4.1 96.4 5.39 15.09 1,967.27 31.25 16.17
89.5 9,871 858,169 800,532 31.7 36.4 4.7 101.7 3.89 14.40 1,421.30 30.68 16.28
103.8 15,132 1,556,544 905,520 28.9 32.3 2.9 95.6 5.49 13.23 2,002.57 31.76 18.53
Labor & management charge Net return over lbr & mgt
Other Information Number of cows Milk produced per cow Total milk sold Lb. of milk sold per FTE Culling percentage Turnover rate Cow death loss percent Percent of barn capacity Feed cost per day Feed cost per cwt. of milk Feed cost per cow Avg. milk price per cwt. Milk price / feed margin 2014 Northern Minnesota Annual Report
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Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Enterprise Size) *** Dairy -- Average Per Cow -- By Herd Size*** Excluding Organic & Organic Transition Up to 50
50 100
100 200
200 500
Over 500
49
139
95
65
30
Number of farms Milk sold (hd) Dairy Calves sold (hd) Transferred out (hd) Cull sales (hd) Other income Purchased (hd) Transferred in (hd) Inventory change (hd) Dairy repl net cost Gross margin Direct Expenses Protein Vit Minerals (lb.) Complete Ration (lb.) Corn (bu.) Corn Silage (lb.) Hay, Alfalfa (lb.) Haylage, Alfalfa (lb.) Other feed stuffs (lb) Veterinary BST Supplies Fuel & oil Repairs Custom hire Hired labor Hauling and trucking Bedding Total direct expenses Return over direct expense
Quantity 16,830.7 0.1 0.7 0.3 0.1 0.3 0.0
2,330.7 987.2 59.8 15,503.2 4,621.1 2,527.8 2,045.5
Overhead Expenses Hired labor Building leases Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
Value 4,111.82 46.48 58.34 294.12 66.98 -147.44 -99.48 130.86 -594.36 3,867.32
Quantity 20,228.8 0.2 0.7 0.3
610.31 171.05 225.24 267.69 425.65 119.94 123.91 86.38 5.08 309.84 72.26 139.95 22.99 24.96 72.01 53.39 2,730.65 1,136.67
2,976.5 1,901.3 65.2 16,317.8 4,454.4 3,397.3 1,925.5
0.0 0.4 0.0
Value 4,925.24 68.77 85.90 353.00 35.57 -72.35 -84.36 87.72 -581.16 4,819.40
Quantity 21,839.4 0.3 0.7 0.3
751.76 227.25 249.45 289.83 437.85 145.06 100.58 97.03 12.83 327.38 87.86 157.88 38.73 67.26 62.83 74.70 3,128.27 1,691.13
3,019.0 1,577.6 58.3 17,098.7 2,631.6 3,387.0 6,765.1
0.0 0.3 0.0
Value 5,346.45 65.66 42.81 339.82 38.89 -49.17 -80.03 73.03 -608.55 5,170.21
Quantity 23,855.4 0.3 0.7 0.3
786.66 398.69 224.15 304.80 234.49 148.58 131.71 114.88 23.95 331.21 107.16 167.25 38.30 134.28 52.02 80.44 3,278.59 1,891.63
3,748.2 1,745.5 73.1 18,374.9 2,474.4 4,730.8 1,894.6
0.0 0.4 0.0
Value 5,860.79 74.34 67.62 334.54 49.52 -14.81 -135.83 82.86 -579.56 5,739.81
Quantity 26,383.4 0.4 0.6 0.3
943.49 383.93 256.94 353.41 218.59 185.29 130.52 127.77 53.90 331.87 115.86 192.51 65.00 287.60 36.82 100.06 3,783.57 1,956.24
5,204.6 939.2 63.6 19,293.6 1,424.2 4,352.9 4,198.5
0.0 0.4 0.0
Value 6,367.91 116.00 42.34 404.01 13.89 -13.66 -126.84 53.66 -613.08 6,244.24 1,131.51 426.99 248.93 386.60 112.49 167.76 167.24 111.21 80.04 371.92 141.16 193.61 105.42 414.28 33.04 94.14 4,186.36 2,057.88
33.85 23.51 101.18 80.13 110.94 133.10 482.72 3,213.37 653.95
111.13 14.72 99.34 82.39 166.02 124.17 597.77 3,726.04 1,093.36
147.77 29.91 69.80 100.82 192.04 114.88 655.22 3,933.81 1,236.40
214.74 67.47 70.22 100.53 184.53 119.39 756.89 4,540.46 1,199.35
208.39 66.02 53.62 64.58 146.32 106.46 645.39 4,831.75 1,412.48
414.39 239.56
313.09 780.27
263.92 972.48
186.97 1,012.38
177.72 1,234.77
Cost of Production Per Cwt. Of Milk Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management
16.01 18.84 20.51 22.94
15.42 18.36 18.95 20.49
14.92 17.90 18.83 20.03
15.70 18.84 19.51 20.29
15.80 18.23 18.78 19.45
Est. labor hours per unit
47.61
40.77
36.79
40.71
42.24
38.6 17,058 650,159 989,789 26.2 35.9 8.4 85.6 5.33 11.40 1,943.78 24.43 13.04
73.4 20,293 1,485,536 1,389,145 29.4 36.7 6.4 105.3 6.03 10.85 2,201.77 24.35 13.50
140.6 21,971 3,071,083 1,662,277 28.1 35.3 6.2 107.6 6.11 10.15 2,229.10 24.48 14.34
313.0 24,099 7,466,323 1,640,578 28.2 35.9 7.0 115.7 6.77 10.26 2,472.17 24.57 14.31
796.6 26,497 21,017,922 1,748,922 34.2 40.5 6.2 112.6 7.24 9.97 2,641.53 24.14 14.17
Labor & management charge Net return over lbr & mgt
Other Information Number of cows Milk produced per cow Total milk sold Lb. of milk sold per FTE Culling percentage Turnover rate Cow death loss percent Percent of barn capacity Feed cost per day Feed cost per cwt. of milk Feed cost per cow Avg. milk price per cwt. Milk price / feed margin
2014 Northern Minnesota Annual Report
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Farm Business Management Education Programs
Summary of Selected Dairy Enterprise Factors
Overhead, $2.81 Grain/Conc, $6.85
Dairy Cow Costs of Production (Per CWT Produced)
Other Direct, $5.35 Forages, $3.37
Ave Milk Price Recv'd
Milk Production per Cow
29.50
25000
24.36 19.84
22.00
19.47
23765
20.20
16.01
22000
22028
22315
22774
23087
14.50
19000
7.00 2010
2011
2012
2013
2010
2014
Dir & Ovhd Exp per CWT 20
2012
2013
2014
Net Return per Cow $1,500
18.38
17.81
17.44
2011
$1,249
16.27 14.05 $750
14
$524 $177
$287
2012
2013
$0
8 2010
2011
2012
2013
2010
2014
Feed Cost per CWT
2011
10.19
10.37
8.83
2014
Ave. Number of Cows 200
12
8
$290
10.22 159.8
7.17
150
170.1
178.9
184.4
139.6
100
4 2010
2011
2012
2014 Northern Minnesota Annual Report
2013
2010
2014 Page 54
2011
2012
2013
2014
Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) ***Dairy and Repl Heifers -- Average Per Cow*** Excluding Organic & Organic Transition Avg. Of All Farms Number of farms Milk sold (hd) Dairy Calves sold (hd) Transferred out (hd) Cull sales (hd) Other income Purchased (hd) Transferred in (hd) Inventory change (hd) Gross margin Direct Expenses Protein Vit Minerals (lb.) Complete Ration (lb.) Corn (bu.) Corn Silage (lb.) Hay, Alfalfa (lb.) Haylage, Alfalfa (lb.) Other feed stuffs (lb) Breeding fees Veterinary Supplies Contract production exp. Fuel & oil Repairs Custom hire Hired labor Bedding Total direct expenses Return over direct expense
40 - 60%
High 20%
62
63
311 Quantity 23,727.4 -
4,438.3 1,755.3 73.2 22,618.1 3,337.4 4,422.3 5,032.3
Value 5,763.03 155.99 31.47 368.73 32.24 -50.27 -13.67 119.96 6,407.68
Quantity 23,802.0 -
996.91 468.09 275.63 428.96 281.45 176.30 220.07 66.97 130.49 379.90 114.43 130.72 216.14 79.41 286.02 111.76 4,363.26 2,044.42
4,203.0 981.2 74.5 21,253.2 3,284.5 4,064.8 4,752.1
-
Value 5,818.13 151.25 41.29 370.26 43.34 -34.21 -27.86 84.64 6,446.94
Quantity 25,352.7 -
989.39 626.05 239.25 423.72 278.17 156.23 211.57 73.58 131.53 379.83 174.65 116.75 235.83 77.29 412.02 90.33 4,616.18 1,830.76
4,697.8 885.0 77.3 23,902.2 3,331.5 4,577.5 6,616.5
-
Value 6,226.24 195.40 37.26 422.13 21.00 -17.29 -7.91 148.12 7,024.97 1,171.65 263.74 297.63 460.78 253.29 182.56 259.34 69.71 126.32 349.95 48.19 148.99 214.24 47.45 89.07 115.96 4,098.88 2,926.08
Overhead Expenses Hired labor Building leases Farm insurance Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
198.70 60.98 54.35 82.92 99.53 191.29 77.90 765.67 5,128.93 1,278.75
83.74 53.29 54.99 66.75 94.35 192.67 83.43 629.22 5,245.40 1,201.54
469.59 87.79 62.38 104.61 101.10 226.65 73.90 1,126.02 5,224.90 1,800.06
Labor & management charge Net return over lbr & mgt
261.48 1,017.27
215.89 985.65
321.20 1,478.87
Cost of Production Per Cwt. Of Milk Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management
18.28 21.49 18.90 20.00
19.20 21.82 19.40 20.29
16.11 20.53 17.47 18.74
Est. labor hours per unit
48.25
46.84
51.71
186.1 23,872 4,415,963 1,377,012 30.3 37.4 6.5 110.1 7.80 11.93 2,847.41 24.29 12.36
198.6 24,037 4,726,558 1,422,970 31.1 37.6 6.3 108.8 8.01 12.17 2,924.37 24.44 12.28
240.0 25,444 6,084,461 1,372,809 32.0 38.5 5.9 115.2 7.92 11.35 2,889.00 24.56 13.20
Other Information Number of cows Milk produced per cow Total milk sold Lb. of milk sold per FTE Culling percentage Turnover rate Cow death loss percent Percent of barn capacity Feed cost per day Feed cost per cwt. of milk Feed cost per cow Avg. milk price per cwt. Milk price / feed margin
2014 Northern Minnesota Annual Report
Page 55
Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Dairy Feeder -- Average Per Cwt. Produced Avg. Of All Farms Number of farms Dairy Feeder sold (lb) Transferred out (lb) Other income Purchased (lb) Transferred in (lb) Inventory change (lb) Gross margin Direct Expenses Protein Vit Minerals (lb.) Milk Replacer (lb.) Milk (lb.) Creep / Starter (lb.) Complete Ration (lb.) Corn (bu.) Corn Silage (lb.) Hay, Alfalfa (lb.) Other feed stuffs (lb) Veterinary Supplies Fuel & oil Repairs Utilities Marketing Bedding Total direct expenses Return over direct expense
40 - 60%
High 20%
5
5
22 Quantity 144.98 6.60 -59.75 -5.24 12.64
143.46 5.43 25.60 4.89 42.35 6.39 86.47 42.44 48.30
Value 268.94 10.84 0.92 -154.80 -17.62 63.50 171.78
Quantity 163.31 -
29.63 7.51 5.86 1.83 4.38 24.27 1.41 4.43 2.46 4.70 2.38 2.78 3.16 0.70 0.32 4.66 100.48 71.30
164.44 4.38 29.35 7.55 24.05 6.55 10.96 3.32 28.53
-82.10 -0.46 19.24
Value 312.84 -212.77 -11.47 74.46 163.06
Quantity 118.05 7.28
30.60 5.77 6.77 2.83 1.91 24.95 0.14 0.17 0.95 6.29 1.94 1.73 2.07 1.08 0.02 5.52 92.71 70.36
96.11 5.17 4.85 264.77 60.48 29.76
-9.62 -6.68 -9.82
Value 186.83 12.16 0.96 -18.38 -13.42 32.80 200.95 25.77 7.92 18.56 4.18 5.68 1.55 0.06 0.50 5.13 6.12 1.08 2.74 79.29 121.67
Overhead Expenses Hired labor RE & pers. property taxes Farm insurance Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
1.48 0.84 1.31 1.58 2.78 5.88 1.85 15.71 116.19 55.59
1.45 0.99 0.94 0.67 1.49 4.45 2.17 12.17 104.87 58.19
0.83 0.34 2.90 4.47 6.99 7.91 1.35 24.79 104.07 96.88
Labor & management charge Net return over lbr & mgt
8.45 47.14
8.14 50.05
8.08 88.80
137.53 147.90 147.90 153.47
148.48 155.93 155.93 160.91
61.70 81.47 81.47 87.92
0.93
0.87
0.80
185 143 7.2 1.20 5.54 6.93 81.78 234.07 486 486.89 185.50
580 425 6.8 1.07 5.63 6.24 74.08 211.71 505 540.96 191.56
57 62 5.6 1.48 3.72 5.50 63.65 342.51 676 173.54 158.27
Cost of Production Per Cwt. Produced Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management Est. labor hours per unit Other Information No. purchased or trans in Number sold or trans out Percentage death loss Avg. daily gain (lb.) Lb. of conc / lb. of gain Lb. of feed / lb. of gain Feed cost per cwt. of gain Feed cost per head Avg wgt / Dairy Feeder sold Avg purch price / head Avg sales price / cwt.
2014 Northern Minnesota Annual Report
Page 56
Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Dairy Finishing -- Average Per Cwt. Produced Avg. Of All Farms Number of farms Dairy Finish sold (lb) Transferred out (lb) Other income Purchased (lb) Transferred in (lb) Inventory change (lb) Gross margin Direct Expenses Protein Vit Minerals (lb.) Milk Replacer (lb.) Complete Ration (lb.) Corn (bu.) Corn Silage (lb.) Hay, Alfalfa (lb.) Hay, Grass (lb.) DDGS, dry (lb.) Other feed stuffs (lb) Veterinary Supplies Contract production exp. Fuel & oil Repairs Marketing Bedding Operating interest Total direct expenses Return over direct expense
40 - 60%
High 20%
18
19
91 Quantity 123.67 0.16 -35.89 -2.56 13.12
94.33 1.12 12.98 10.20 209.63 24.67 31.17 29.12 100.75
Value 161.63 0.37 1.98 -63.07 -6.25 54.00 148.66
Quantity 103.56 -
18.18 1.68 2.20 39.11 3.45 1.77 1.79 2.15 3.94 2.22 2.86 0.63 2.09 2.86 0.81 1.54 1.62 88.90 59.76
126.66 1.52 6.57 10.45 234.78 60.48 35.03 6.00 70.54
-24.61 -2.57 23.06
Value 136.85 0.58 -50.37 -4.55 63.00 145.51
Quantity 104.32 -
19.53 2.23 1.59 39.31 2.98 4.02 2.10 0.67 2.17 2.37 1.90 1.70 1.65 2.91 1.08 3.16 1.69 91.07 54.44
75.14 1.47 36.69 9.09 129.61 20.76 40.66 39.17 32.56
-15.71 -1.90 11.94
Value 142.44 0.53 1.79 -26.10 -8.88 67.03 176.80 13.78 2.36 4.48 33.28 2.25 1.98 2.09 3.88 2.72 2.29 2.17 0.97 1.69 2.50 0.60 1.35 0.45 78.85 97.94
Overhead Expenses Hired labor Farm insurance Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
1.62 1.10 1.01 1.70 3.81 1.87 11.10 100.00 48.66
1.65 1.24 1.21 1.43 3.70 1.61 10.85 101.92 43.59
2.50 0.78 1.21 0.99 4.59 1.57 11.65 90.50 86.29
Labor & management charge Net return over lbr & mgt
5.77 42.89
5.46 38.13
3.99 82.31
Cost of Production Per Cwt. Produced Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management
82.64 91.60 91.52 96.18
79.57 90.05 90.05 95.32
43.16 54.33 54.33 58.15
0.50
0.47
0.51
149 123 3.0 2.50 7.50 9.10 74.27 743.19 411 1,418 723.11 130.69
173 129 3.5 2.45 7.63 9.57 74.60 834.89 275 1,411 561.83 132.15
130 105 2.5 2.41 6.71 7.92 66.83 811.37 267 1,468 444.31 136.55
Est. labor hours per unit Other Information No. purchased or trans in Number sold or trans out Percentage death loss Avg. daily gain (lb.) Lb. of conc / lb. of gain Lb. of feed / lb. of gain Feed cost per cwt. of gain Feed cost per head Average purchase weight Avg wgt / Dairy Finish sold Avg purch price / head Avg sales price / cwt.
2014 Northern Minnesota Annual Report
Page 57
Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Dairy Replacement Heifers -- Average Per Head Avg. Of All Farms Number of farms Replacements sold (hd) Transferred out (hd) Cull sales (hd) Other income Purchased (hd) Transferred in (hd) Inventory change (hd) Gross margin Direct Expenses Protein Vit Minerals (lb.) Milk Replacer (lb.) Milk (lb.) Creep / Starter (lb.) Complete Ration (lb.) Corn (bu.) Corn Silage (lb.) Hay, Alfalfa (lb.) Hay, Grass (lb.) Haylage, Alfalfa (lb.) Other feed stuffs (lb) Breeding fees Veterinary Supplies Contract production exp. Fuel & oil Repairs Hired labor Bedding Total direct expenses Return over direct expense
40 - 60%
High 20%
72
72
357 Quantity 0.1 0.4 0.0 0.0 0.6 0.0
378.9 15.2 123.5 654.3 330.4 6.0 4,374.4 756.1 740.4 856.8 1,489.8
Value 58.95 609.82 4.65 1.33 -17.47 -142.63 50.96 565.67
Quantity 0.1 0.4 0.0
95.48 17.34 25.16 4.76 59.42 22.50 79.99 59.18 39.24 32.37 45.51 14.49 17.46 24.18 89.34 20.86 31.79 23.51 21.22 723.80 -158.13
256.0 30.0 134.1 10.9 389.4 5.9 4,496.9 519.8 800.7 947.0 1,458.2
0.0 0.6 0.0
Value 47.30 619.07 4.09 1.34 -6.41 -148.30 32.16 549.25
Quantity 0.1 0.5 0.0
65.67 19.94 31.92 2.38 56.15 22.21 82.43 38.02 43.74 38.84 50.45 15.41 16.83 23.54 70.09 20.01 32.58 37.16 23.56 690.92 -141.67
278.0 8.4 78.1 1,989.8 316.4 8.6 3,673.3 689.4 669.7 775.6 999.1
0.0 0.6 0.0
Value 68.69 765.96 6.19 2.64 -13.29 -155.32 137.00 812.18 74.38 11.38 17.44 16.44 48.70 32.41 67.87 59.57 34.93 26.57 28.37 13.01 21.82 18.55 9.26 24.45 35.05 9.14 12.78 562.11 250.07
Overhead Expenses Hired labor Building leases Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
31.00 12.11 12.73 15.10 28.92 20.40 120.26 844.06 -278.39
23.59 4.02 14.45 19.40 32.81 22.69 116.97 807.89 -258.63
49.02 31.61 16.40 15.18 32.69 21.26 166.16 728.27 83.91
Labor & management charge Net return over lbr & mgt
38.29 -316.68
42.17 -300.81
38.23 45.68
Cost of Production Per Head Per Day Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management
2.27 2.60 2.60 2.70
2.21 2.53 2.53 2.65
1.60 2.06 2.06 2.16
Est. labor hours per unit
7.03
7.88
7.24
104 89 168 9.0 480.95 904.43 1,853.15 1.32 1,339.49 601.40
98 83 164 9.0 451.75 889.59 1,904.59 1.24 1,375.45 669.59
100 87 151 6.1 418.06 724.73 1,367.71 1.15 576.41 669.28
Other Information No. purchased or trans in Number sold or trans out Average number of head Percentage death loss Feed cost per average head Feed cost/head sold/trans Total cost/head sold/trans Feed cost per head per day Avg. purch price / head Avg. sales price / head
2014 Northern Minnesota Annual Report
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Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Beef Finishing -- Average Per Cwt. Produced Avg. Of All Farms Number of farms Finish Beef sold (lb) Transferred out (lb) Cull sales (lb) Other income Purchased (lb) Transferred in (lb) Inventory change (lb) Gross margin Direct Expenses Protein Vit Minerals (lb.) Complete Ration (lb.) Corn (bu.) Corn Silage (lb.) Hay, Alfalfa (lb.) Hay, Grass (lb.) DDGS, dry (lb.) DDGS, wet (lb.) Other feed stuffs (lb) Veterinary Supplies Fuel & oil Repairs Custom hire Hauling and trucking Marketing Operating interest Total direct expenses Return over direct expense
40 - 60%
High 20%
12
13
63 Quantity 192.67 1.55 0.01 -83.88 -5.51 -5.97
34.80 19.65 7.02 444.55 31.57 50.84 61.10 53.17 84.48
Value 290.15 2.42 0.01 -0.51 -165.34 -12.77 35.70 149.67
Quantity 184.15 1.55 -
7.81 2.70 26.51 7.69 1.94 2.19 4.01 1.93 2.99 2.37 3.66 2.62 2.93 1.05 1.78 4.89 2.75 79.82 69.85
46.48 21.81 7.72 361.21 60.34 37.39 70.66 65.18 50.39
-72.98 -6.50 -7.94
Value 271.48 3.38 1.14 -140.56 -17.07 22.96 141.33
Quantity 178.09 -
10.17 5.18 29.31 6.26 4.40 1.95 3.87 1.97 1.59 2.08 4.10 2.79 3.45 3.74 1.05 0.44 2.66 85.02 56.30
26.82 46.31 5.54 650.95 15.68 37.54 40.61 13.75 43.19
-71.33 -4.18 -3.38
Value 272.39 1.06 -130.06 -9.20 35.90 170.09 5.36 4.92 21.02 11.01 0.90 1.55 3.20 0.18 1.86 3.43 3.38 2.79 2.80 0.80 1.14 0.23 3.56 68.12 101.97
Overhead Expenses Hired labor Machinery leases Farm insurance Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
2.33 0.37 1.26 1.19 4.76 2.19 12.09 91.91 57.76
1.62 0.04 0.94 1.13 4.91 1.61 10.24 95.26 46.07
3.55 1.21 1.86 1.72 3.55 2.51 14.39 82.51 87.58
Labor & management charge Net return over lbr & mgt
7.34 50.42
10.68 35.38
6.33 81.25
113.57 119.79 120.90 124.68
116.80 122.31 123.21 128.96
95.69 103.77 103.77 107.33
0.49
0.53
0.51
272 281 0.7 2.73 6.12 8.53 57.77 403.54 652 1,356 197.11 150.60
213 232 0.7 2.72 6.57 8.93 64.71 452.26 641 1,359 192.59 147.43
375 390 0.5 2.86 4.77 7.49 49.99 364.37 580 1,308 182.35 152.95
Cost of Production Per Cwt. Produced Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management Est. labor hours per unit Other Information No. purchased or trans in Number sold or trans out Percentage death loss Avg. daily gain (lb.) Lb. of conc / lb. of gain Lb. of feed / lb. of gain Feed cost per cwt. of gain Feed cost per head Average purchase weight Avg wgt / Finish Beef sold Avg purch price / cwt. Avg sales price / cwt.
2014 Northern Minnesota Annual Report
Page 59
Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Beef Cow-Calf -- Average Per Cow Avg. Of All Farms Number of farms Beef Calves sold (lb) Transferred out (lb) Cull sales (lb) Other income Purchased (lb) Transferred in (lb) Inventory change (lb) Gross margin Direct Expenses Protein Vit Minerals (lb.) Complete Ration (lb.) Corn Silage (lb.) Hay, Alfalfa (lb.) Hay, Grass (lb.) Pasture (aum) Other feed stuffs (lb) Veterinary Supplies Fuel & oil Repairs Hired labor Marketing Bedding Operating interest Total direct expenses Return over direct expense
40 - 60%
High 20%
22
22
107 Quantity 234.2 220.8 84.6 -24.2 -49.1 145.6
413.6 181.5 5,224.9 1,198.1 3,931.7 5.0 1,535.8
Value 497.29 517.30 179.46 5.17 -98.01 -104.14 290.69 1,295.14
Quantity 122.4 339.5 51.3
39.01 26.29 88.93 71.12 170.03 62.73 50.38 27.93 34.37 39.11 44.98 3.46 6.42 7.51 12.46 684.74 610.40
134.4 159.0 6,730.5 1,390.0 3,811.8 3.2 1,041.0
-9.4 -80.7 -16.4
Value 274.78 846.04 204.53 7.84 -108.92 -196.14 146.07 1,183.45
Quantity 302.7 156.9 131.6
32.10 22.16 117.57 82.74 139.11 47.17 29.14 24.36 36.91 34.16 28.07 9.78 5.28 4.82 4.43 617.80 565.65
201.3 123.0 3,826.8 1,155.7 3,575.7 4.7 1,302.7
-56.7 -50.1 529.5
Value 652.81 421.83 175.32 4.73 -159.36 -88.46 560.89 1,590.67 32.78 23.16 61.35 71.63 149.43 91.89 51.31 27.01 15.09 34.58 49.01 1.11 10.18 10.66 9.98 639.16 951.51
Overhead Expenses Hired labor RE & pers. property taxes Farm insurance Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
11.10 7.20 16.79 17.91 25.79 57.29 22.69 158.77 843.51 451.63
5.02 4.30 14.31 10.69 18.88 49.01 16.67 118.89 736.69 446.76
7.25 9.49 18.50 20.10 28.10 44.60 19.41 147.45 786.62 804.06
Labor & management charge Net return over lbr & mgt
111.40 340.23
96.43 350.33
101.46 702.60
Cost of Production Per Cwt. Produced Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management
111.51 137.36 115.78 133.92
151.36 180.49 166.00 189.62
62.80 77.29 51.75 61.72
9.92
7.62
9.50
67.8 96.8 3.4 13.1 93.5 87.3 0.79 5.8 2.4 282.1 533 465 508.48 615 212.33
69.7 97.0 4.5 14.2 92.6 87.2 0.83 6.9 2.9 367.3 503 439 469.99 526 224.54
77.9 98.3 3.4 13.1 94.9 88.5 0.81 3.9 1.9 294.7 547 484 481.55 651 215.66
Est. labor hours per unit Other Information Number of cows Pregnancy percentage Pregnancy loss percentage Culling percentage Calving percentage Weaning percentage Calves sold per cow Calf death loss percent Cow death loss percent Cows per FTE Average weaning weight Lb. weaned/exposed female Feed cost per cow Avg wgt/ Beef Calves sold Avg price / cwt.
2014 Northern Minnesota Annual Report
Page 60
Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Enterprise Size) Beef Cow-Calf -- Average Per Cow -- By Herd Size Up to 50
50 100
100 200
200 500
53
33
17
4
Number of farms Beef Calves sold (lb) Transferred out (lb) Cull sales (lb) Other income Purchased (lb) Transferred in (lb) Inventory change (lb) Gross margin
Quantity 241.8 151.2 84.2
Direct Expenses Beet Pulp (dry) (lb.) Protein Vit Minerals (lb.) Complete Ration (lb.) Corn Silage (lb.) Hay, Alfalfa (lb.) Hay, Grass (lb.) Pasture (aum) Other feed stuffs (lb) Veterinary Supplies Fuel & oil Repairs Custom hire Bedding Operating interest Total direct expenses Return over direct expense
-15.7 -31.3 59.1
475.3 1,248.2 39.2 3,182.3 2,166.5 3,676.6 4.3 1,210.6
Value 532.36 352.88 164.29 10.12 -63.92 -76.48 296.90 1,217.47
Quantity 232.7 227.1 89.3
7.21 52.22 13.82 55.67 123.36 156.31 44.53 44.06 27.30 43.29 34.89 46.42 11.73 7.49 7.83 676.13 541.34
879.7 240.0 308.3 4,524.0 1,502.8 4,054.2 2.6 485.3
-29.4 -43.4 346.5
Value 506.74 551.19 155.44 5.96 -172.03 -72.20 313.66 1,300.60
Quantity 222.4 213.1 82.5
13.35 39.62 41.91 79.60 86.96 188.19 46.83 32.39 22.16 40.95 39.90 48.66 1.52 6.49 11.42 699.96 600.64
175.7 278.7 206.3 6,398.3 743.0 4,397.4 7.9 1,185.6
-9.1 -52.1 48.2
Value 500.14 473.10 135.72 3.39 -49.20 -129.63 369.20 1,312.59
Quantity 252.6 305.2 79.2
3.14 39.86 26.86 104.58 52.70 193.15 82.26 45.76 30.29 26.25 38.40 43.53 8.73 11.52 17.77 724.80 587.79
1,484.7 70.6 31.7 6,706.4 346.7 3,021.2 5.2 591.4
-54.3 -75.9 24.2
Value 430.19 730.46 337.52 1.31 -82.40 -151.79 74.25 1,339.53 24.02 20.37 6.93 115.74 13.87 100.66 77.66 38.10 36.01 45.61 43.89 38.51 8.73 1.48 9.23 580.83 758.70
Overhead Expenses Hired labor RE & pers. property taxes Farm insurance Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
8.57 11.59 18.65 27.52 36.23 67.11 36.08 205.75 881.88 335.59
11.09 10.50 16.08 15.77 25.08 69.03 22.63 170.17 870.13 430.47
9.25 2.98 18.20 20.37 22.79 48.86 18.75 141.20 866.00 446.59
17.86 3.74 13.22 6.03 21.15 38.28 15.06 115.34 696.16 643.36
Labor & management charge Net return over lbr & mgt
149.26 186.33
112.37 318.09
97.12 349.47
93.92 549.44
Cost of Production Per Cwt. Produced Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management
137.46 179.29 141.71 172.05
84.69 105.28 87.06 100.65
143.18 171.07 140.27 159.46
109.15 130.82 133.71 151.36
13.06
9.51
9.78
7.41
25.5 95.9 5.5 12.2 90.6 83.7 0.70 7.0 3.3 214.3 519 434 497.19 573 220.19
73.0 96.4 1.5 11.6 95.0 88.4 0.81 6.7 2.9 294.6 514 454 528.85 601 217.73
137.9 97.1 5.0 9.4 92.2 85.8 0.79 5.7 1.9 286.4 531 456 548.32 619 224.90
286.3 97.9 1.7 25.0 96.2 92.1 0.86 3.0 1.1 378.1 587 541 397.35 697 170.32
Est. labor hours per unit Other Information Number of cows Pregnancy percentage Pregnancy loss percentage Culling percentage Calving percentage Weaning percentage Calves sold per cow Calf death loss percent Cow death loss percent Cows per FTE Average weaning weight Lb. weaned/exposed female Feed cost per cow Avg wgt/ Beef Calves sold Avg price / cwt.
2014 Northern Minnesota Annual Report
Page 61
Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Hogs, Finish Feeder Pigs -- Average Per Cwt. Carcass Sold Avg. Of All Farms Number of farms Finish Hogs sold (lb) Transferred out (lb) Cull sales (lb) Other income Purchased (lb) Transferred in (lb) Inventory change (lb) Gross margin Direct Expenses Protein Vit Minerals (lb.) Complete Ration (lb.) Corn (bu.) Other feed stuffs (lb) Veterinary Supplies Contract production exp. Fuel & oil Repairs Custom hire Hauling and trucking Marketing Total direct expenses Return over direct expense
40 - 60%
High 20%
6
7
35 Quantity 135.59 0.06 0.76 -19.60 -3.51 2.27
81.45 34.99 3.74 9.24
Value 99.82 0.05 0.38 1.94 -28.99 -5.11 1.46 69.55
Quantity 134.05 0.12 0.00
16.44 4.91 15.64 0.72 0.54 1.53 0.82 0.67 0.91 2.65 0.78 1.15 46.74 22.81
98.77 4.28 6.34
-22.43 -0.91 15.90
Value 93.83 0.17 0.01 -1.26 -34.73 -1.12 10.06 66.95
Quantity 135.76 1.83
20.85 18.23 0.76 0.62 1.37 0.29 1.35 0.91 0.18 0.07 44.63 22.31
91.12 0.77 4.33 6.08
-16.48 -2.60 1.41
Value 101.99 0.87 6.96 -27.68 -2.92 2.11 81.33 20.73 0.11 16.54 0.56 0.92 0.63 0.38 0.80 5.56 0.30 1.37 47.91 33.42
Overhead Expenses Hired labor Building leases Farm insurance Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
0.90 3.18 0.44 0.58 0.41 1.52 0.75 7.78 54.52 15.03
0.30 0.94 0.76 0.75 0.61 1.92 0.63 5.90 50.53 16.41
0.95 6.03 0.29 0.48 0.18 1.36 0.84 10.13 58.04 23.29
Labor & management charge Net return over lbr & mgt
2.42 12.61
4.98 11.44
1.66 21.63
Cost of Production/Cwt. Carcass Sold Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management
78.92 86.70 84.84 87.25
70.34 76.24 77.58 82.56
75.46 85.59 78.70 80.36
0.12
0.18
0.08
6,749 6,401 2.1 2 1.45 2.90 32.60 77.11 44 281 65.79 73.61 212 98.79
2,873 2,651 2.4 1 1.88 2.74 31.42 75.78 45 282 70.24 69.99 212 93.36
11,033 10,218 0.7 2 1.27 2.84 31.62 80.72 35 284 58.50 75.12 213 100.96
Est. labor hours per unit Other Information No. purchased or trans in Number sold or trans out Percentage death loss Percent substandard hogs Avg. daily gain (lb.) Lb. of feed / lb. of gain Feed cost per cwt. of gain Feed cost per head Average purchase weight Avg wgt / Finish Hogs sold Avg purch price / head Avg sales price / cwt. Average carcass weight Average price / cwt. carcass
2014 Northern Minnesota Annual Report
Page 62
Farm Business Management Education Programs
Livestock Enterprise Analysis Northern Minnesota Farm Business Management Data (Farms Sorted By Return to Overhead) Hogs, Weaning to Finish (Contract Grower) -- Average Per Head Avg. Of All Farms Number of farms Other income Gross margin
40 - 60%
63 Quantity
High 20%
12 Value 37.72 37.72
Quantity
13 Value 37.14 37.14
Quantity
Value 44.26 44.26
Direct Expenses Supplies Contract production exp. Fuel & oil Repairs Custom hire Hired labor Livestock leases Utilities Total direct expenses Return over direct expense
1.73 1.45 1.94 3.09 0.61 0.92 0.36 1.13 11.23 26.49
1.32 2.99 2.06 2.66 0.36 0.59 0.73 0.74 11.44 25.70
1.16 1.36 1.83 0.75 0.23 0.49 5.82 38.44
Overhead Expenses Hired labor Building leases RE & pers. property taxes Farm insurance Utilities Interest Mach & bldg depreciation Miscellaneous Total overhead expenses Total dir & ovhd expenses Net return
0.31 0.86 0.71 1.48 1.20 3.70 10.23 0.91 19.41 30.64 7.08
0.02 4.45 0.48 1.01 1.02 3.93 5.56 0.62 17.10 28.54 8.60
0.26 0.51 1.49 2.08 6.21 17.74 1.16 29.45 35.27 8.98
Labor & management charge Net return over lbr & mgt
5.00 2.08
4.27 4.33
4.32 4.67
-
-
-
0.32
0.29
0.22
Other Information Number of pigs Pigs per pig space (per year) Pigs per 100 sq. ft. (per yr) Net return per 100 sq. ft. Net return per labor hour Square feet per pig space
7,528 2.40 33.31 98.15 22.39 7.22
5,892 2.02 34.18 145.59 29.49 5.91
9,069 2.44 31.49 115.91 40.68 7.75
2014 Northern Minnesota Annual Report
Page 63
Cost of Production Per Pig Space Total direct expense per unit Total dir& ovhd expense per unit With other revenue adjustments With labor and management Est. labor hours per unit
Farm Business Management Education Programs
Selected Crop & Livestock Enterprise Trend Summary Northern Minnesota Farm Business Management Data
2010
2011
2012
2013
2014
Alfalfa Hay Yield per Acre Value per Ton Fuel, Oil, Repairs per Acre Total Dir & Ovhd Exp per Acre Net Return per Acre Total Direct Expenses per Ton Total Dir & Ovhd Exp per Ton
3.6 $77.11 $69.58 $233.21 $57.05 $34.04 $65.13
3.6 $89.32 $83.79 $247.68 $74.89 $37.68 $69.17
3.3 $131.79 $95.25 $302.02 $150.49 $50.72 $91.87
3.3 $153.38 $91.09 $302.28 $218.54 $51.79 $91.64
4.0 $176.49 $114.57 $379.84 $337.71 $48.66 $94.13
Corn Yield per Acre Value per Bushel Fuel, Oil, Repairs per Acre Total Dir & Ovhd Exp per Acre Net Return per Acre Total Direct Expenses per Bu. Total Dir & Ovhd Exp per Bushel
143.4 $4.61 $66.19 $415.50 $249.14 $2.01 $2.90
121.7 $5.72 $87.13 $465.97 $248.53 $2.77 $3.83
128.9 $6.49 $88.45 $530.74 $320.53 $2.97 $3.91
108.5 $4.02 $88.78 $553.77 -$44.10 $3.71 $5.11
118.8 $3.42 $87.92 $581.67 -$75.40 $3.43 $4.90
Corn Silage Yield per Acre Value per Ton Fuel, Oil, Repairs per Acre Total Dir & Ovhd Exp per Acre Net Return per Acre Total Direct Expenses per Ton Total Dir & Ovhd Exp per Ton
18.4 $31.88 $74.47 $380.24 $208.71 $13.68 $20.62
15.2 $39.05 $98.93 $458.64 $157.19 $21.60 $30.09
15.1 $50.65 $103.50 $495.91 $285.57 $22.91 $32.86
11.7 $40.01 $100.48 $504.52 $155.90 $31.22 $43.05
14.3 $35.05 $122.88 $576.47 $9.68 $27.70 $40.28
Soybeans Yield per Acre Value per Bushel Fuel, Oil, Repairs per Acre Total Dir & Ovhd Exp per Acre Net Return per Acre Total Direct Expenses per Bu. Total Dir & Ovhd Exp per Bushel
35.2 $10.55 $37.29 $227.84 $147.05 $4.17 $6.48
31.5 $11.41 $49.03 $259.44 $112.02 $5.53 $8.23
37.8 $13.87 $49.01 $285.21 $243.72 $5.15 $7.55
33.4 $12.52 $45.26 $288.53 $139.81 $5.76 $8.65
33.0 $9.73 $46.04 $289.37 $52.87 $5.81 $8.76
Spring Wheat Yield per Acre Value per Bushel Fuel, Oil, Repairs per Acre Total Dir & Ovhd Exp per Acre Net Return per Acre Total Direct Expenses per Bu. Total Dir & Ovhd Exp per Bushel
52.5 $6.63 $37.31 $245.71 $108.02 $3.32 $4.68
48.0 $7.99 $44.65 $301.89 $97.69 $4.63 $6.29
60.8 $8.30 $50.14 $328.49 $182.39 $4.01 $5.40
66.5 $6.24 $44.21 $329.01 $95.54 $3.56 $4.95
60.2 $5.62 $43.17 $320.40 $32.83 $3.77 $5.32
Beef Cow Calf Price Recv'd/Cwt Calf Sold Total Feed Cost/Cow Return over Feed/Cow Net Return/Cow Total Direct & Ovhd Expenses
$114.79 $359.75 $279.52 $53.60 $585.68
$132.13 $388.03 $380.97 $127.61 $641.39
$146.91 $445.53 $354.44 $88.27 $711.70
$152.83 $479.03 $298.68 $36.61 $741.10
$212.33 $508.48 $786.66 $451.63 $843.51
Dairy Cows Production/Cow Price Recv'd/Cwt Milk Total Feed Cost/Cwt Milk Return over Feed/Cwt Milk Net Return/Cwt Milk Total Direct & Ovhd Expenses
21,669 $16.24 $7.22 $7.85 $0.92 $14.15
22,343 $19.84 $8.82 $9.79 $2.35 $16.27
22,774 $19.47 $10.19 $8.53 $1.27 $17.44
23,087 $20.20 $10.37 $8.69 $1.24 $17.81
23,765 $24.36 $10.22 $13.42 $5.26 $18.38
2014 Northern Minnesota Annual Report
Page 64
Total Dir&Ovhd Expense $400 380
$300 $200
302
302
2013
2014
554
582
2014
233
248
2010
2011
2012
466
531
2011
2012
2013
459
496
505
2011
2012
2013
2014
259
285
289
289
2011
2012
2013
2014
302
328
329
320
2011
2012
2013
2014
$100 $0
$800 $600 $400 $200
416
$0 2010
$800 $600 $400 $200
380
576
$0 2010
$400 $300 $200
228
$100 $0 2010
$400 $300 $200
246
$100 $0 2010
$1,000 844 $500
586
641 712
741
2011
2013
$0 2010
2012
2014
$20 $10
16
17
18
2011
2012
2013
14
18
$0 2010
2014
Farm Business Management Education Programs
Minnesota Farm Business Management Education Vision: To provide educational opportunities for students to be successful in a competitive agricultural environment.
Mission: To deliver management education for decision-making that achieves an individual’s business goals.
Guiding Principles: 1. 2. 3. 4. 5.
Improved Quality of Life in Rural Communities Achievement of Student Goals Awareness of the Global Importance of Agriculture Integrity in Student Interaction Timely and Student-Focused Programming
MnSCU and Participating College Websites: State FBM Website: fbm.mnscu.edu Alexandria Technical and Community College: alextech.edu Central Lakes College Website: clcmn.edu Northland Community & Technical College Website: northlandcollege.edu Ridgewater College: ridgewater.edu St. Cloud Technical and Community College: sctcc.edu
Keith Olander, Director 1830 Airport Road Staples, MN 56479 Office Phone: 218-894-5163 Email:
[email protected] Website: Agcentric.org
AgCentric, orthern Center of Excellence for Agriculture, is committed to helping our region meet the evolving challenges of global agriculture through agricultural education, workforce development, collaboration and advocacy.
MyFarm Financial Scorecard Year: Liquidity
Name: This Year
5-Year Ave
Strong 1.7
Vulnerable 1.1
25%
10%
30%
60%
70%
40%
0.43
1.50
8%
4%
10%
3%
25%
15%
1.50
1.20
1.40
1.10
45%
30%
60%
80%
5%
15%
5%
10%
20%
10%
Current ratio Working capital Working cap to gross revenue Solvency (market)
Note: These solvency ratios include deferred liabilities
Farm debt/asset ratio Farm equity/asset ratio Farm debt/equity ratio Profitability (Cost) Rate of return on farm assets Rate of return on farm equity Operating profit margin Net farm income EBITDA Repayment Capacity (Accrual) Capital debt repay capacity Capital debt repay margin Replacement margin Term-debt coverage ratio Replacement margin ratio Financial Efficiency Asset-turnover rate (market) Operating-expense ratio Depreciation-expense ratio Interest-expense ratio Net farm income ratio
Developed by: University of Vermont Extension and Center for Farm Financial Mgt, University of Minnesota Updated by: Greg Tullis, Farm Business Mgt Program, Northland College
