Dairy Farm Financial

Enter Numbers inDark Blue on the following page, all others are calculated.
Introduction: The primary purpose of this template is to demonstrate the interaction of financial statements and take
feasibility of an operation. The user must complete some very simple information about each enterprise within an op
assests and liabilities are necessary to provide a complete financial picture.
Use the Enterprise tab and Statements tab at the bottom of the screen to enter requested data. This template is not c
Spreadsheets that are capable of detailed financial analysis are located at http://www.montana.edu/extensionecon/f
Financial statements used are very condensed versions of the basic statements used for financial analysis (balance sh
statement of owner equity). These statements are both simplfied and some data entry has been restricted to assure in
statement. While simplified statesments, the interaction of the statements and financial analysis concepts remain the
financial analysis ratio values (see Ratio_Calc tab) and dollar amount calcualtions identical to detailed financial state
The statements in this template are distributed "in balance" (fully reconciled). To help learn about the relationship am
information flows from one to another, change a number (only those in blue text) in one of the statements or on the E
Equity indicates whether the statements are still reconciled. This provides an opportunity to discuss how financial st
one number must be "offset" with changes somewhere else in the same system of financial statements. In many insta
automatically computed and put on the right statement. If the Statement of Owner Equity showns a Discrepancy figu
statements" are out of balance. The user must make one or more additional entries somewhere to make the statement
This program uses only business assets and liabilities in the reconciliation process. Personal (Non-Bus
However, non-business cash inflows and outflows are considered for correct Cash Flow calculations. (
eraction of financial statements and take a "quicka and dirty" look at the financial
mation about each enterprise within an operation. Additional information about
r requested data. This template is not capable of detailed financial analysis.

tp://www.montana.edu/extensionecon/farmmgt/software.html
s used for financial analysis (balance sheet, cash flow, income statement,
ata entry has been restricted to assure information flows to the correct financial
d financial analysis concepts remain the same. In fact, these statements produce
ltions identical to detailed financial statements.
Written by Duane Griffith

Montana State University
210 Linfield Hall
Bozeman, MT 59717
griffith@montana.edu
406-994-2580
To check for updates of this software, click
http://www.montana.edu/extensioneco
Loof for the RDFinancial file and check

date this file was last updated.
. To help learn about the relationship among the financial statements and how
text) in one of the statements or on the Enterprise tab. The Statement of Owner
n opportunity to discuss how financial statements are linked together. Changes in
m of financial statements. In many instances, in this spreadsheet, this offset in
Owner Equity showns a Discrepancy figure that is not equal to zero the "set of
ntries somewhere to make the statements reconcile.
liation process. Personal (Non-Business Assets and Liabilities) items are ignored.
r correct Cash Flow calculations. (Off Farm wages, family living expenditures, etc.)
e Griffith
niversity
Last update
Septemeber 11, 2003
es of this software, click the link below.
ana.edu/extensionecon/farmmgt/software.html
nancial file and check the

last updated.
Only information in blue text can be changed/entered. All other information is calculated or fixed.
Click button to print all input, statements, and ratios in this file>>
Crop Production/Sales Estimates:

Yield Per Unit
Number of Acres Per Enterprise
Sales Price Per Unit
Percent Acres Leased
Help Tenant Share Lease Percentage
Total Enterprise Crop Revenue
Lease Payments going To Others
Units (Bu, tons, lbs) Produced
Crop and
Crop/Forage Name WinterWheat
30.0
1000
$3.30
20.0%
66.0%
$99,000
$6,732
30,000
Forage Enterprises
Barley
Hay
48.0
2.00
500
300
$2.15
$0.00
0.0%
0.0%
0.0%
0.0%
$51,600
$0
$0
$0
24,000
600
(MUST use a yield of 1 for summer fallow, price = zero)

Sum. Fallow
Recrop Bar.
Recrop WW
SpringWheat
1
43.2
27.0
34.0
1000
200
300
500
$0.00
$2.15
$3.30
$3.50
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
$0
$18,576
$26,730
$59,500
$0
$0
$0
$0
1,000
8,640
8,100
17,000
Flax
14.5
0
$5.65
0.0%
0.0%
$0
$0
0
Canola
1200.0
0
$0.12
0.0%
0.0%
$0
$0
0
3,800
Totals
$255,406
$6,732
$248,674
Total Owner/Tenant Revenue Received
$248,674
Livestock Produciton/Sales Estimates:

Cull Rate for Enterprise
Cull Female Animal Weight
Cull Female Price Per Unit
Cull Male Animal Weight
Cull Male Price Per Unit
Avg. Number Females/Male
Bull/Ram/??? Purchase Cost
Avg. Lbs Prod. Per Animal
No. Animal Exposed/Fed/Finished
Price Per Unit
Base Value/Brding Animal
Other Revenue/Unit
Enterprise Revenue
Total Livestock Revenue
Help
Breeding Livestock Enterprises

Cow-Calf
Sheep
Other brdg lvstk
15%
0%
0%
1,200
0
0
$0.50
$0.00
$0.00
1,800
0
0
$0.55
0
0
25
0
0
$2,500
0
0
475
0
0
200
0
0
$1.00
$0.00
$0.00
$600
$0
$0
$0.00
$0.00
$0.00
$115,640
$0
$0
Non-Breeding Livestock Ent.

Feeders
Stockers
Cows
Bulls Only
Sheep - Ewes
Rams Only
Other Brding Females
Other Brding Males
Total Cull Revenue
0
0
$0.00
0
0
$0.00
$0.00
$0
$0.00
$0
Sum. Fallow
Recrop Bar.
200
Recrop WW
300
SpringWheat
500
Cull Revenue Calculations

Cash
Base Value
Capital
Cull Income
Animals Sold
Gain/Loss
$18,000
$18,000
$0
$2,640
$0
$2,640
$0.00
$0
$0
$0.00
$0
$0
$0.00
$0
$0
$0.00
$0
$0
$20,640
$18,000
$2,640
$115,640
Government Payments:
Direct Payment Calculations:
Name for each Enterprise

Base Acreage by Enterprise
Percent of Base Leased from Others
Help Direct Payment Rate by Commodity
Direct Payment Yield by Commodity
Direct Payments Per Base Acre
Total Enterprise Gov. Payments
Gov. Payments Going To Others
WinterWheat
1000
Barley
500
Hay
20.0%
$0.52
$0.24
$0.24
$0.52
$0.52
32
$14.14
$14,144
50
$10.20
$5,100
$0.00
$0
$0.00
$0
45
$9.18
$1,836
28
$12.38
$3,713
30
$13.26
$6,630
$962
$0
$0
$0
$0
WinterWheat
$0.52
$3.75
$3.00
Barley
Hay
Flax
Canola
$0.00
$0
$0.00
$0
Row Totals
$31,423
$0
$0
$0
$0
Government Payments, excluding share paid to landlords
$962
$30,461
Sum. Fallow Recrop Bar.
Flax
Counter Cyclical Payments:

Counter Cyclical Payment Target Price Schedule as of February 2005.
Commodity
barley
corn
grain sorghum
oats
other oilseeds
peanuts
rice
soybeans
upland cotton
wheat
Unit
per bushel
per bushel
per bushel
per bushel
per Cwt.
per ton
per Cwt.
per bushel
per pound
per bushel
2002--03
$2.21
$2.60
$2.54
$1.40
$9.80
$495.00
$10.50
$5.80
$0.72
$3.86
Effective Price calculation

Direct Payment Rate for this Commodity (Enter from table above)
National Average Market Price Received During the Marketing Year
National Average Loan Price for This Commodity
Counter Cyclical Payment Yields
LDP Payments:
2004--07
$2.24
$2.63
$2.57
$1.44
$10.10
$495.00
$10.50
$5.80
$0.72
$3.92
Recrop WW
SpringWheat
Canola
Expenses by Enterprise
Warning: When entering the enterprise expenses below, do not include expenses for depreciation, interest (opportunity costs) or family
living. Depreciation expenses are included at the whole farm/ranch level and are entered below on this tab. Interest is included on the
whole farm/ranch level and is calculated below on this tab. Family living is entered on the Statements page. If included in the enterprise
costs for crops or livestock, these expenses will be double counted.
Crop and Forage Enterprises
Help
Help
Help
Help
Avg. Cost Per Unit of Yield

Cost/unit adjustment for leased acres
Cost by Enterprise
Total Crop Cost of Production
Livestock Enterprise
Cost per Pound Produced
Purchase Cost Mrkt Lvstk (Dollars per pound)
Purchase Weight Per Head (Enter in pounds)
Lvstk cost by enterprise
Cost Per Breeder/Feeder Animal
Total Livestock Cost Of Production
Cost of Production (Crops & Lvstk)
Cost of production Overhead Percentage
WinterWheat
Barley
Hay
$2.00
$1.85
$40.00
30.0%
0.0%
0.0%
$56,400
$44,400
$24,000
$228,926
Breeding Livestock Enterprises
Cow-Calf
Sheep
Other brdg lvstk
$0.60
$0.00
$0.00
Total cost of production, Crops and Livestock
$57,000
$285
$57,000
$0
$0
$285,926
3.00%
$294,504
$0
$0
Sum. Fallow
$35.00
0.0%
$35,000
Recrop Bar.
$1.90
0.0%
$16,416
Non-Breeding Livestock Ent.

Feeders
Stockers
$0.00
$0.00
$0.00
$0.00
0
0
$0
$0
$0
$0
<< Example, enter 2% as 2% not 102%.
Recrop WW
$2.10
0.0%
$17,010
SpringWheat
$2.10
0.0%
$35,700
Flax
$4.40
0.0%
$0
Do Not include interest or

depreciation in the per unit (per bu.,
per pound, per ton, per cwt, etc.)
costs of production.
Canola
$0.06
0.0%
$0
Asset and Liability Calculations for the Balance Sheet, Ca
Crop Acres/Units Owned

Average Value Per Acre
Total Cropland Value
Livestock Acres Owned
Average Value Per Acre
Total Rangeland Value
Total Real Estate (Crop + Range)
Mach & Equip.
Bldg & Improvements
Breeding Livestock
Total Asset Value
Beginning
Asset
Value
3600
$300
$1,080,000
4000
$100
$400,000
$1,480,000
$380,000
$100,000
$148,000
Totals
$2,108,000
Depreciation
or Capital
Replacement
Expense by
Asset Type
$7,400
$25,000
$5,000
$2,000
$39,400
Purchase/Contribute/Distribute Section
Capital Asset Purchase
or Contribution
or Distribution
Machinery & Equipment
Real Estate (Land & Buildings)
Breeding Livestock
Purchase
Price or
Value
of Asset
$0
$0
$0
$0
Depreciation
on Assets
Purchased
This Year
$0
$0
$0
$0
Liability Calculations for the Balance Sheet, Cash Flow and Income Statement
Liabilities
Short Term
Interest Rate
8.0%
Payment #
4
# Payments
7
Ending
Asset Value
Adjustment
Total Dollars
$0
$0
$0
$0
$0
Asset Value
Plus for
+ Contribution
- for Distribution
$0
$0
$0
$0
Percent Debt
By Asset Type
20%
30%
10%
0%
Total Liabilities
%
Debt
$296,000
$114,000
$10,000
$0
$420,000
Debt/Asset Ratio
16.66%
Percent
Purchased
Asset that is
Financed
0%
0%
0%
Loan
Proceeds
Received
$0
$0
$0
$0
Long Term
6.0%
10
30
Beginning and Ending Liability Estimates
Beginning
Beginning
Ending
Annual
Annual
Annual
Principal
Interest
Principal
($6,326)
($15,179)
($6,705)
($16,094)
($5,802)
($17,382)
($1,412)
($509)
($1,525)
$0
$0
$0
$23,832
$21,489
$25,612
Checksum
Additional
Ending
Principal
$0
$0
$0
$0
$45,321
Additional
Ending
Interest
$0
$0
$0
$0
Checksum
Added
Principal
End Next Yr
$0
$0
$0
Estimates
Ending
Annual
Interest
($14,799)
($4,514)
($396)
$0
$19,709
$45,321
Added
Interest
End Next Yr
$0
$0
$0
Period
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
Principal
Real Estate
Remaining
Principal
Interest
$3,744
$17,760 $292,256
$3,969
$17,535 $288,287
$4,207
$17,297 $284,080
$4,459
$17,045 $279,621
$4,727
$16,777 $274,894
$5,010
$16,494 $269,884
$5,311
$16,193 $264,573
$5,630
$15,874 $258,943
$5,967
$15,537 $252,976
$6,326
$15,179 $246,650
$6,705
$14,799 $239,945
$7,107
$14,397 $232,838
$7,534
$13,970 $225,304
$7,986
$13,518 $217,318
$8,465
$13,039 $208,853
$8,973
$12,531 $199,880
$9,511
$11,993 $190,369
$10,082
$11,422 $180,287
$10,687
$10,817 $169,600
$11,328
$10,176 $158,272
$12,008
$9,496 $146,264
$12,728
$8,776 $133,536
$13,492
$8,012 $120,044
$14,301
$7,203 $105,743
$90,583
$15,160
$6,345
$74,514
$16,069
$5,435
$57,481
$17,033
$4,471
$39,425
$18,055
$3,449
$20,287
$19,139
$2,366
($0)
$20,287
$1,217
Mach & Equip.

Principal
Interest
$12,776
$9,120
$13,798
$8,098
$14,902
$6,994
$16,094
$5,802
$17,382
$4,514
$18,773
$3,124
$20,274
$1,622
Principal
Remaining
$101,224
$87,425
$72,523
$56,429
$39,047
$20,274
$0
Bldg & Improvements

Principal
Interest
$1,121
$800
$1,210
$710
$1,307
$614
$1,412
$509
$1,525
$396
$1,647
$274
$1,778
$142
Principal
Remaining
$8,879
$7,669
$6,362
$4,950
$3,425
$1,778
$0
Breeding Livestock
Principal
$0
$0
$0
$0
$0
$0
$0
Breeding Livestock
Interest
$0
$0
$0
$0
$0
$0
$0
Principal
Remaining
$0
$0
$0
$0
$0
$0
$0
Total
Shorter Term
Principal
Interest
$13,897
$9,920
$15,009
$8,808
$16,209
$7,608
$17,506
$6,311
$18,907
$4,910
$20,419
$3,398
$22,053
$1,764
Principal
Remaining
$110,103
$95,094
$78,885
$61,379
$42,472
$22,053
$0
MPCI Basic Unit Insurance Option: Example below allow

Help Activate MPCI Basic Unit Insurance Option (Y or N) >>
Enter a Y f
Crop Qualifites for MPCI Coverage (Y or N) >>
WinterWheat
Barley
1000
500
800
500
30
48
75%
75.00%
Help Ownership Level This Basic Unit
100%
100.00%
Help FCIC Establish Market Price
$3.25
$2.00
Help Market Price Election
100%
100.00%
Calculated Yield Coveage Level
22.5
36
Actual Harvested Yield
30.2
35
500
$3.25
$2.00
$58,500
$36,000
$0
$1,000
Total Number of Planted Acres in This Enterprise

Acres of each crop in Basic Unit # 1
Help APH Yield History
Help APH Yield Coverage Election-by Crop
Quantiity Indemnity Payment Level

Calculated Market Price Coverage Level
Maximum Possible Indemnity Payment by Crop
Estimated Indemnity Based on Acutal Yields
Total Potential Indemnity Payment This Basic Unit
Esttimated Total Indemnity This Basic Unit
$164,156
$1,000
Acres Remaining after allocation to Basic Unit

200
Enter a Y f
WinterWheat
Barley
200
30
75%
66%
$3.25
100%
22.5
30.2
35
$3.25
$0.00
$14,625
$0
$0
$0
Quantiity Indemnity Payment Level

$14,625
$0
Acres Remaining after allocation to Basic Unit

0
Enter a Y f
WinterWheat
Barley
30.2
35
$0.00
$0.00
$0
$0
$0
$0
$0
$0

Quantiity Indemnity Payment Level (bu/cwt)
Acres Remaining after allocation to ALL Posibl

0
WinterWheat
Barley
$73,125
$36,000
6%
6%
$4,388
$2,160
55%
55%
Actual Premium Paid by Producer
$2,413
$1,188
Total Premium Actually Paid
$5,900
Help Total Potential Indemnity Payment

Premium Rate Percenage
Premium Payment by Crop for All Basic Units
Percentage Premium Subsidy
Total Indemnity Paid Given Actual Yields

Help Net Benefit of Crop Insurance
$1,000
$0
n: Example below allows only 3 Basic Units for illustrative purposes.

n
Basic Unit
1 of 3
Enter a Y for each crop covered crop that you would like to insure.
N
Hay
Sum. Fallow
Recrop Bar.
Recrop WW
SpringWheat
Flax
300
1000
200
300
500
200
300
500
40
25
30
75.00%
75.00%
75.00%
100.00%
100.00%
100.00%
$2.00
$3.25
$3.50
100.00%
100.00%
100.00%
30
18.75
22.5
31.5
27.2
24.5
14.8
$0.00
$0.00
$2.00
$3.25
$3.50
$0.00
$0
$0
$12,000
$18,281
$39,375
$0
$0
$0
$0
$0
$0
$0
1000
ter allocation to Basic Unit # 1

300
Basic Unit
2 of 3
N
Hay
Sum. Fallow
Recrop Bar.
Recrop WW
SpringWheat
Flax
31.5
27.2
24.5
14.8
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
1000
ter allocation to Basic Unit # 2

300
Basic Unit
3 of 3
N
Hay
Sum. Fallow
Recrop Bar.
Recrop WW
SpringWheat
Flax
31.5
27.2
24.5
14.8
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
ter allocation to ALL Posible Basic Units Insured (In This Example, only 3 units available)
300
1000
Hay
Sum. Fallow
Recrop Bar.
Recrop WW
SpringWheat
Flax
$0
$0
$12,000
$18,281
$39,375
$0
0%
5%
6%
6%
6%
0%
$0
$0
$720
$1,097
$2,363
$0
55%
55%
55%
55%
55%
55%
$0
$0
$396
$603
$1,299
$0
Insurance Premium Subsidy

Factors (Feb. 2005)
Premium
Coverage
Subsidy
Level
Factor
50%
67.00%
55%
64.00%
60%
64.00%
65%
59.00%
70%
59.00%
75%
55.00%
80%
48.00%
85%
38.00%
N
Canola
0
0
1077
0
$0.00
$0
$0
N
Canola
0
1077
0
$0.00
$0
$0
N
Canola
0
1077
0
$0.00
$0
$0
0
Canola
$0
0%
$0
55%
$0
Percent Crop Revenue
Balance Sheet
Cash on Hand
Crops Held for Feed (Exp)
Crops Held for Sale (Inc)
Market Livestock (Inc)
Other Current Assets (Inc)
Cash Invt Growing Crops (Exp)
Supplies&Prepaid Exp. (Exp)
Total Current Assets
Non-Current Assets
Mach. & Equipment
Breeding Livestock
Real Estate (Land, Bldgs, Impr)
Total Business Assets
100%
Percent Livestock Revenue
Assets
Beginning
Ending
1,500
3,893
18,000
18,000
45,000
45,000
0
0
15,000
15,000
0
0
5,800
5,800
85,300
87,693
380,000
148,000
1,580,000
2,193,300
Cash Flow Statement

Crop Sales & Net Insurance Payments
Mrkt & Cull Livestock Sales
Government Payments
Other Cash business Income
50%
Operating Loan Proceeds
Loan Proceeds Capital Assets
Non-Business Inflows/Revenue
Other Nonfarm Inflows
Other Nonfarm Inflows
Total Cash Inflows
* T.D. = Term Debt, C.L. = Capital Lease
100%
Accounts Payable (Exp)

Accrued Interest (Exp)
Current Principal
Other Current Liability (Exp)
Short Term Notes Payable (Exp)
Other Current Liab. (Not Adj.)
Def. Tax on Current Assets
Operating Loan Carryover
Total Current Liab.
355,000 Non-Current Liabilities
152,667 Prin. on T.D. & C.L.
308,029
1,567,600 Total Business Liab.
365,350
2,162,960
Business Net Worth
1,827,950
Change in Equity From Beginning to End of Year
Inflows
248,674
115,640
30,461
0
147,252
0
Operating Expenses
Other Cash Business Expense
Cash Int. Exp. - T.D. & C.L.*
Cash Int. Exp. - Operating
Loan Prin. Payments - T.D. & C.L.
Breeding Livestock Asset Purchases
Mach & Equip & Real Estate Purchase
0 Owner withdrawals
0 Cash Taxes Paid (Income & SS)
$542,027 Other Cash Outflows (Not Expenses)
No Interest >
8%
Subtotal
Operating Loan Prin. Payments
Total Cash Outflows
Annual Net Cash Flow (never < zero)
Percent Cost of Production - Crops
100%
Percent Gov. Payments
Liabilities
Beginning
Ending
2,000
2,000
21,489
19,709
23,832
25,612
10,000
10,000
0
0
0
0
0
0
0
0
57,321
57,321
Percent cost of Production - Livestock
282,417
339,738
1,823,222
(4,728)
OutFlows
294,504
0
21,489
5,890
23,832
6,667
0
40,000
0
0
$392,382
$147,252
$539,633
3,893
100%
Income Statement - Accrual Adj.
Income
$374,135
0
18,000
2,640
$394,775
Expense
294,504
0
0
39,400
333,904
21,489
5,890
(1,780)
$359,503
Cash Income (adj. for cull lvstk sales)

Non-Cash Income Adjustments
Non-Cash Income (Raised Brdg Lvstk)
Capital Gain/Loss on Breeding Lvstk (Net)
Gross Revenue
Cash Expense (Excluding Interest)
Non-Cash Feed Inventory Adjustment
Other Non-Cash Non-Interest Expense
Depreciation (Land, Bldgs, Equip.)
Total Operating Expense
Cash Int. Exp. - T.D. & C.L.
Cash Int. Exp. - Operating
Non-Cash Interest Expense
Total Expense
Net Business Income From Operations
Net Business Income
Income & SS Taxes (Cash & Non-Cash)
Net Income
35,272
35,272
0
$35,272
Statement of Owner Equity

Beginning Net Worth (Cost/Mrkt)
Net Income
Non-Business Cash Inflows
Owner Withdrawals (Cash)
Asset Valuation Change or Cont./Distrib.
Calculated Ending Net Worth
Reported Ending Net Worth (Cost/Mrkt)
Discrepancy
+
+
+/=
1,827,950
35,272
0
40,000
$0
1,823,222
1,823,222
0
100%
Note: This program is designed to teach concepts of financial analysis and get a rough initial look at a farm/ranch operation. It is not intended and you can not use this to make detailed
analysis of an individual operation. It does not have the capability to analyze detailed information.
Additional Information Needed for Ratios
1) Value of Operator and Unpaid Family Labor & Management
2) Payment on Operating Debt Converted to Term from Previous Years
3) Total Annual Payments on Personal Liabilities
25,000
0
0
Quick (and Dirty) Income Tax Calculation For Cash Basis Taxpayer
Include Taxes In the Statements at Left
(Y = Yes, N= No)
Cash Income
Cash Expense
Depreciation
Cash Interest
Taxable Income
Exemptions and Standard Deductions
Taxable Income After Exemptions and Standard Deductions
Combined State & Fed Tax Rate
Estimated Income Tax
N
$374,135
$294,504
$39,400
$27,379
$12,852
$6,000
$6,852
21%
$1,439
Financial Statement Ratios

Liquidity
Current Ratio
Current Assets
divided by Current Liabilities
Beginning
85,300
57,321
1.49
Ending
87,693
57,321
85,300
57,321
87,693
57,321
1.53
Working Capital
Current Assets
- Current Liabilities
$27,979
$30,372
Solvency
Debt/Asset Ratio
Total Business Liabilities
divided by Total Business Assets
Beginning
365,350
2,193,300
16.66%
Ending
339,738
2,162,960
15.71%
1,827,950
2,193,300
1,823,222
2,162,960
84.29%
Equity/Asset Ratio
Total Business Equity
divided by Total Business Assets
83.34%
Debt/Equity Ratio
Total Business Liabilities
divided by Total Business Equity
365,350
1,827,950
0.20
339,738
1,823,222
0.19
Profitability
Rate of Return on Business Assets
35,272
+ Business Interest Expense
25,599
- Value of Operator and Unpaid Family Labor & Manageme

Divided by Average Total Business Assets
25,000
2,178,130
1.65%
Rate of Return on Business Equity

35,272

Divided by Average Total Business Equity
25,000
1,825,586
0.56%
Operating Profit Margin Ratio

35,272
+ Business Interest Expense
25,599
25,000
Divided by Gross Revenue
394,775
9.09%
Net Business Income

Calculated by Matching Revenues and Expense (Accrual) Plus
Gain or Loss on the Sale of Capital Assets
$35,271.85
Repayment Capacity
Term Debt and Capital Lease Coverage Ratio
35,272
+ Total Non-Business Income
+ Depreciation/Amortization Expense
39,400
+ Interest on Term Debt
21,489
+ Interest on Capital Leases

- Total Income Tax Expense
- Owner Withdrawals
40,000
$56,161.18
Divided by
Scheduled Prin. & Int. on Term Debt & Cap. Lease
45,321
Ratio Value
Capital Replacement and Term Debt Repayment Margin
+ Total Non-Business Income*
+ Depreciation/Amortization Expense
- Total Income Tax Expense
- Owner Withdrawals
= Capital Replacement and Term Debt Repayment Capacit
- Payment on Unpaid Operating Debt From Prior Year
- Principal Pymnts-Current Portions of Term Debt & Cap. L
- Total Annual Payments on Personal Liabilities (if Not in
= Capital Replacement and Term Debt Repayment Margin
1.24
35,272
0
39,400
0
40,000
34,672
0
23,832
0
$10,840.12
* To evaluate for the business only, do not include items marked with an *
Financial Efficiency
Asset Turnover Ratio
Gross Revenues
divided by Average Total Business Assets
394,775
2,178,130
0.1812
Operating Expense Ratio

Total Operating Expense
- Depreciation & Amortization Expense
Divided by Gross Revenues
333,904
39,400
394,775
74.60%
Depreciation Expense Ratio

Depreciation & Amortization Expense
divided by Gross Revenues
39,400
394,775
9.98%
Interest Expense Ratio

Total Business Interest Expense
25,599
394,775
6.48%
35,272
394,775
Check Sum
8.93%
100.00%
Net Farm Income From Operations Ratio

Labels starting in column B on this tab are from the Accrual Adjusted Income Statement
on the Statements tab and are shown in this color font.
Labels starting in column C on this tab are from the Balance Sheet
on the Statements tab and are shown in this color font.
Income Accrual Adjustments from Current Assets on the Balance Sheet

Ending
Beginning
Inventory
Inventory
Value From
Value From
Current
Current
Non-Cash Income Adjustments
Assets
Assets
Crops Held for Sale (Inc)
$45,000
$45,000
Market Livestock (Inc)
$0
$0
Other Current Assets (Inc)
$15,000
$15,000
Total Non Cash Income Adjustment made to the Income Statement
Non-Cash Income (Raised Brdg Lvstk)
See the Enterprise tab, cells I21 throught J31 for the non-cash value of raised breeding livestock.
Expense Accrual Adjustments made on the Accrual Income Statement
Non-Cash Feed Inventory Adjustment

Crops Held for Feed (Exp)
Other Non-Cash Non-Interest Expense

Cash Invt Growing Crops (Exp)
Supplies&Prepaid Exp. (Exp)
Accounts Payable (Exp)
Other Current Liability (Exp)
Short Term Notes Payable (Exp)
Non-Cash Interest Expense

Accrued Interest (Exp)
Ending
Inventory
Value From
Current
Assets
$18,000
Beginning
Inventory
Value From
Current
Assets
$18,000
Ending
Inventory
Value From
Current
Assets
$0
$5,800
Liabilities
$2,000
$10,000
$0
Beginning
Inventory
Value From
Current
Assets
$0
$5,800
Liabilities
$2,000
$10,000
$0
Ending
Inventory
Value From
Current
Liabilities
$19,709
Beginning
Inventory
Value From
Current
Liabilities
$21,489
Income & SS Taxes (Cash & Non-Cash)

Def. Tax on Current Assets
Other Current Liab. (Not Adj.)
Only Accrual Adjustment Portion of Taxes

$0
$0
<< This line is not adjusted on the Income Statement.

Please read the comment on the Statements page of this
This line is provided to help illustrate the Statement of O
function and reconciliation of the financial statements.
d Income Statement
n the Balance Sheet

Accrual
Income
(+/-) to the
Income
Statement
$0
$0
$0
$0
$18,000
breeding livestock.
Income Statement
Accrual
Expense
(+/-) to the
Income
Statement
$0
Accrual
Expense
(+/-) to the
Income
Statement
$0
$0
$0
$0
$0
Accrual
Expense
(+/-) to the
Income
Statement
($1,780)
ustment Portion of Taxes

$0
the Income Statement.

e Statements page of this spreadsheet.
strate the Statement of Owner Equity's
he financial statements.
Goto:
Page down for additional enterprise budgets
Cost of production estimates are

included for Barley, Wheat, Oats,
Corn, and Sugar Beets.
Corn
SugarBeets
Cost of Production for Northern Plains States for 1997 and 1998
These cost of production estimates are located at
http://ww
1997
Barley
1998
Avg 97-98
Yield (bu./planted acre)
43.52
47.28
45.40
Cash expenses:
Seed
Fertilizer, lime, and gypsum
Chemicals
Custom operations
Fuel, lube, and electricity
Repairs
Hired labor
Other variable cash expenses 1/
Total, variable cash expenses
Dollars
6.77
16.68
7.97
3.39
8.59
13.87
4.40
1.04
62.71
Wheat
per planted
6.30
14.49
8.11
3.49
7.55
14.08
4.50
1.06
59.58
acre
6.54
15.59
8.04
3.44
8.07
13.98
4.45
1.05
61.15
1997
24.57
Dollars per planted ac

7.64
14.85
8.33
2.64
6.74
12.77
2.52
0.03
55.52
General farm overhead

Taxes and insurance
Fixed cash expense, excluding interest
7.58
12.13
19.71
6.07
11.14
17.21
6.83
11.64
18.46
5.35
9.61
14.96
Interest
Fixed cash expenses including interest
12.20
31.91
11.33
28.54
11.77
30.23
9.47
24.43
Total cash expenses excluding interest

Total cash expenses including interest
82.42
94.62
76.79
88.12
79.61
91.37
70.48
79.95
Cash cost per unit of crop produced

excluding interest
including interest
Dollars Per Bushel

$1.89
$1.62
1.76
$2.17
$1.86
2.02
Dollars Per Bushel

$2.87
$3.25
1/ Cost of purchased irrigation water and baling.
1/ Cost of purchased irrigatio
Item
Yield (bushels per planted acre)
Operating costs:
Seed
Fertilizer, lime, and gypsum
Soil conditioners
Manure
1997
96
Corn
1998 Avg. 97-98
111
103.50
Dollars per planted acre

27.60
27.59
27.60
24.43
26.49
22.37
0.00
0.00
0.00
0.00
0.00
0.00
Chemicals
Custom operations 2/
Repairs
Hired labor
Other variable cash expenses 3/
Total, operating costs
19.00
21.34
20.95
17.55
1.78
0.25
134.95
19.41
21.49
19.75
18.24
1.78
0.24
130.88
19.21
21.42
20.35
17.90
1.78
0.25
132.92

Taxes and insurance
7.15
9.77
16.92
6.75
9.78
16.53
6.95
9.78
16.73
Interest on operating capital

3.41
20.33
3.09
19.62
3.25
19.98
151.87
155.28
147.41
150.50
149.64
152.89

excluding interest
including interest
Dollars Per Bushel

$1.58
$1.33
1.45
$1.62
$1.36
1.49
Allocated overhead: -- Non Cash Costs

Opportunity cost of unpaid labor
Capital recovery of machinery and equipment
Opportunity cost of land (rental rate)
Total allocated overhead - Non-cash or estimate

22.94
22.77
23.10
57.91
56.52
59.30
54.45
53.57
55.33
132.86
137.73
135.30
Total costs after addition of "Allocated overhead"

excluding interest
including interest
Supporting information:
Enterprise size (planted acres) 1/
Production practices: 1/
Irrigated (percent)
Dryland (percent)
1/
For 1996 survey base year only.
284.73
288.14
285.14
288.23
301
301
39
61
39
61
284.94
288.19
2/ Cost of custom operations, technical services and commercial drying. 3/ Cost of p
Sugar Beets-North West

1997
1998 Avg 97-98
Yield (net tons/planted acre) 2/
27.40
27.81
27.61
Sugar Beets-Great Pla

1997
18.32
Cash expenses:
Seed
Fertilizer
Chemicals
Custom operations
Fuel and lubrication
Repairs
Hired labor
Purchased irrigation water
Freight and dirt hauling charges
Miscellaneous
Hauling allowance (-)

47.15
46.31
47.98
121.94
109.52 115.73
82.92
82.79
83.05
37.09
36.54
37.64
93.74
96.85
90.63
66.59
66.93
66.24
198.59
204.63 201.61
30.74
31.25
30.22
14.86
16.79
12.92
5.76
5.89
5.63
1.55
1.76
1.34
694.62
702.12
687.12
Dollars per planted acr

47.69
88.02
77.22
22.78
55.13
55.89
111.98
13.68
17.81
6.44
2.01
494.63

Taxes and insurance
48.10
38.77
86.87
45.36
39.60
84.96
46.73
39.19
85.92
46.06
41.34
87.40
Interest
47.05
133.92
49.55
134.51
48.30
134.22
52.98
140.38
788.99
836.04
772.08
821.63
780.54
828.84
582.03
635.01

excluding interest
including interest
$28.80
$30.51
Dollars Per Ton

$27.76
28.28
$29.54
30.03
Dollars Per Ton

$31.77
$34.66
1/ 1997 estimates are revised. 1998 estimates are preliminary. Sugarbeet prices are held at the 1997 level because State-le
are those reported in USDA's 1992 Farm Costs and Returns Survey of sugarbeet growers adjusted for year-over-year changes
Note: Sugar beet regions defined as: Great Lakes (Michigan, Ohio), Red River Valley (Minnesota, eastern North Dakota), Grea
Northwest (Idaho, Oregon except Klamath County), and Southwest (California, Klamath County of Oregon).
s States for 1997 and 1998. Source USDA - ERS

re located at
http://www.ers.usda.gov/Briefing/farmincome/data.htm
Wheat
1998 Avg. 97-98
31.08
Dollars per planted
7.27
12.61
8.28
2.98
5.94
13.52
2.69
0.03
53.32
1997
27.83
acre
7.46
13.73
8.31
2.81
6.34
13.15
2.61
0.03
54.42
68.62
/2
/3
Oats
1998 Avg. 97-98
65.89
67.26

5.35
6.72
3.97
9.04
9.62
8.46
2.32
2.32
2.32
2.41
2.41
2.41
9.85
10.59
9.11
14.24
14.75
13.73
0.37
0.36
0.38
0.43
0.45
0.40
44.00
47.22
40.78
4.20
8.78
12.98
4.78
9.20
13.97
3.77
7.75
11.52
3.56
7.61
11.17
3.67
7.68
11.35
8.27
21.25
8.87
22.84
5.13
16.65
5.40
16.57
5.27
16.61
66.30
74.57
68.39
77.26
58.74
63.87
51.95
57.35
55.35
60.61
Dollars Per Bushel

$2.13
2.50
$2.40
2.83
Dollars Per Bushel

$0.86
$0.79
0.82
$0.93
$0.87
0.90
2/ Cost of custom operations and technical services. 3/ Cost of baling.

1/ Cost of purchased irrigation water and baling.
mmercial drying. 3/ Cost of purchased irrigation water.
Sugar Beets-Great Plains

1998 Avg 97-98
20.06
19.19

48.79
49.88
84.34
80.66
76.50
75.77
21.57
20.36
50.27
45.41
56.89
57.88
119.13 115.56
14.01
14.34
17.51
17.20
6.34
6.24
1.70
1.38
490.06
485.49
44.07
42.63
86.70
45.07
41.99
87.05
57.00
143.70
54.99
142.04
572.19
629.19
577.11
632.10
Dollars Per Ton

$28.52
30.15
$31.37
33.01
e 1997 level because State-level prices for the 1998 season will not be available before January 2000. 2/ Yields
ed for year-over-year changes as reported by NASS/USDA in Crop Production, 1998 Summary, January 1999.
a, eastern North Dakota), Great Plains (western North Dakota, Montana, Wyoming, Nebraska, Colorado, Texas),
This sheet includes cost of production estimates for Cow-calf and dairy operations.
Goto:
Dairy
Page down for additional cow-calf and dairy budgets
Cow-calf production costs and returns per bredcow, 1997-98

1997
Northern Great Plains

1998
Avg. 97-98
Fruitful Rim
1997
Dollars Per He
Gross value of production:
Steer calves
Heifer calves
Yearling steers
Yearling heifers
Other cattle
Total gross value of production
132.77
82.78
111.54
32.88
84.55
444.52
132.69
82.34
102.98
30.06
82.51
430.58
132.73
82.56
107.26
31.47
83.53
437.55
72.73
50.19
52.93
21.12
59.37
256.34
15.29
13.89
14.59
106.97
22.53
42.98
121.75
9.16
124.50
5.80
326.72
20.26
32.35
96.27
7.31
111.10
4.58
271.87
21.40
37.67
109.01
8.24
117.80
5.19
299.30
23.16
4.02
80.04
3.78
194.62
1.89
307.51
14.73
0.21
6.37
29.33
16.41
21.62
10.75
441.43
15.38
0.22
6.63
31.08
16.44
22.69
10.05
388.25
15.06
0.22
6.50
30.21
16.43
22.16
10.40
414.84
35.29
0.43
4.54
55.60
22.28
18.67
13.39
564.68
Allocated overhead:
Hired labor
Opportunity cost of unpaid labor
Capital recovery cost of machinery and equipme
Opportunity cost of land
Taxes and insurance
Total allocated overhead
0.64
302.94
76.71
2.79
31.27
57.50
471.85
0.65
309.71
74.76
2.89
33.33
54.98
476.32
0.65
306.33
75.74
2.84
32.30
56.24
474.09
14.24
255.25
75.19
0.95
29.65
57.14
432.42
Total Cash Cost Excluding Interest /1

Total Cash Cost Including Interest /2
520.09
530.84
467.16
477.21
493.63
504.03
652.32
665.71
Operating costs:
Feeder cattle
Feed:
Concentrates and other feed
Supplemental feed
Harvested forages
Cropland pasture
Private pasture
Public land
Total feed costs
Other:
Veterinary and medicine
Bedding and litter
Marketing
Custom operations
Repairs
Interest on operating inputs
Total operating costs
Total Cost Excluding Interest /3

Total Cost Including Interest /4
/1
/2
/3
/4
902.53
913.28
854.52
864.57
878.53
888.93
983.71
997.10
Excludes Interest on operating inputs, Opportunity Cost o f unpaid labor, Capital recovery costs of machine
Includes interest on operating but excluses Opportunity Cost o f unpaid labor, Capital recovery costs of m
Includes all costs listed except interest on operating inputs
Includes all costs listed
Milk production costs and returns, per cwt sold, 1997-98
Item
Gross value of production:

Milk
Cattle
Other income
Total, gross value of production
Cash expenses:
Feed-Concentrates
By-products
Liquid whey
Hay
Silage
Pasture and other forage
Total, feed costs
Other-Hauling
Artificial insemination
Veterinary and medicine
Bedding and litter
Marketing
Custom services and supplies
Repairs
Hired labor
DHIA fees
Dairy assessment
1997
12.77
0.63
0.56
13.96
Pacific
1998
Per Cwt/. Sold

15.07
0.61
0.56
16.24
Upper Midwest
Avg. 97-98
13.92
0.62
0.56
15.10
1997
Per Cwt/. Sold

13.32
0.97
0.75
15.04
3.17
0.48
0.05
2.71
1.10
0.20
7.71
2.94
0.47
0.05
2.34
0.95
0.12
6.87
3.06
0.48
0.05
2.53
1.03
0.16
7.29
4.53
0.12
0.17
1.36
1.99
0.12
8.29
0.39
0.12
0.20
0.05
0.45
0.41
0.29
0.31
0.54
0.07
0.00
10.54
0.38
0.11
0.20
0.05
0.44
0.39
0.26
0.32
0.52
0.07
0.00
9.61
0.39
0.12
0.20
0.05
0.45
0.40
0.28
0.32
0.53
0.07
0.00
10.08
0.29
0.18
0.50
0.35
0.29
0.39
0.61
1.09
0.53
0.08
0.00
12.60

Taxes and insurance
0.38
0.13
0.51
0.39
0.14
0.53
0.39
0.14
0.73
0.42
1.15
Interest
0.62
0.71
0.67
1.13

1.13
1.24
1.19
2.28
11.05
11.67
10.14
10.85
10.60
11.26
13.75
14.88
Fruitful Rim
1998
Avg. 97-98
1997
Basin and Range

1998
Avg. 97-98
Dollars Per Head

72.45
49.90
50.83
20.17
57.86
251.21
72.59
50.05
51.88
20.65
58.62
253.78
141.35
87.11
126.48
54.08
76.68
485.70
139.46
86.45
123.64
51.75
72.79
474.09
140.41
86.78
125.06
52.92
74.74
479.90
104.47
105.72
6.90
6.79
6.85
22.66
3.23
70.08
3.72
169.57
1.93
271.19
22.91
3.63
75.06
3.75
182.10
1.91
289.35
10.73
3.10
129.46
8.49
188.16
5.53
345.47
9.60
2.27
118.51
5.52
123.56
3.71
263.17
10.17
2.69
123.99
7.01
155.86
4.62
304.32
35.08
0.41
4.56
54.78
22.28
18.61
12.53
523.91
35.19
0.42
4.55
55.19
22.28
18.64
12.96
544.30
16.57
0.67
5.94
25.29
18.84
17.70
10.79
448.17
16.07
0.66
5.77
24.48
18.81
17.10
10.11
362.96
16.32
0.67
5.86
24.89
18.83
17.40
10.45
405.57
15.28
263.29
71.62
0.94
31.15
53.86
436.14
14.76
259.27
73.41
0.95
30.40
55.50
434.28
1.25
364.79
67.52
1.48
29.04
58.05
522.13
1.32
377.53
63.73
1.47
30.55
54.75
529.35
1.29
371.16
65.63
1.48
29.80
56.40
525.74
611.67
624.20
632.00
644.96
525.72
536.51
439.47
449.58
482.60
493.05
947.52
960.05
965.62
978.58
959.51
970.30
882.20
892.31
covery costs of machinery, Opportunity cost of land

tal recovery costs of machinery, Opportunity cost of land
Upper Midwest
1998
Avg. 97-98
Per Cwt/. Sold

15.48
0.94
0.68
17.10
14.40
0.96
0.72
16.07
4.07
0.13
0.18
1.14
1.67
0.14
7.33
4.30
0.13
0.18
1.25
1.83
0.13
7.81
0.29
0.17
0.49
0.34
0.29
0.39
0.56
1.13
0.50
0.08
0.00
11.57
0.29
0.18
0.50
0.35
0.29
0.39
0.59
1.11
0.52
0.08
0.00
12.09
0.75
0.46
1.21
0.74
0.44
1.29
1.21
920.86
931.31
2.50
2.39
12.78
14.07
13.27
14.48
3
4
List of defaults and/or assumptions used in this spreadsheet template.

Bulls are assumed to have a three year life and are always fully depreciated when they are sold.
All bull revenue is treated just like "ordinary income," even though it is listed under Capital Gains/Loss on Breeding Livestock.
See the Enterprise tab of this template in cell block I21 throught L31.
Bulls (or other male breeding livestock, Rams for example) are the only type of purchased breeding livestock included in the initial setup.
Female breeding livestock are always raised and assigned a base value by the user. However, the user can enter any type
of purchased breeding livestock on the Enterprise tab under the Purchase/Contribute/Distribute Capital Asset section starting
in cell A81
No asset sales, or death loss of breeding livestock, etc. is allowed in this spreadsheet.
The beginning and ending values on the balance sheet for current assets and liabilities are (should) always be the same.
This eliminates accrual adjustments on the income statement prior to the user entering or changing a specific number to
show an accrual income or expense. It simplifies teaching the concepts.
Due to the design of this spreadsheet, interest and depreciation are handled separately from the basic cost of production figures entered
for each enterprise. This is necessary to calculate and display principle and interest for all loans on the various financial statements.
It is important that these numbers are separated out of the enterprise cost of production figures, to the best of your ability, remembering
that this template is basically designed to teach interaction of and how to interrupt financial statements.
Separate out:
Interest or opportunity costs charged on operating costs
Interest or opportunity costs charged on capital assets
Depreciation on capital assets included in the enterprise costs
Some basic assumptions about timing are included when making entries to illustrate assest purchases, receiving captial contributions,
or making capital distributions.
It is always assumed, in this system of financial statements, that these activities happen at the end of the
year when there is no opportunity for a purchased or contributed asset to generate any additional
revenue to be included in this analysis year.
The assumption with distributed assests is the revenue from that particular asset has already been received during the
year and no reduction in revenue occurs because of the asset's disappearance from the balance sheet during the year.
This assumptions helps to illustrate the fact that the mear purchase of an asset will not increase equity, I.e. you can
not buy equity. You must employ the asset in a manner that earns equity through increasing the revenue stream or
reducing the expense stream, hence increasing net income.
If using the purchase capital asset section on the Enterprise tab, the assumption is that, if financied, no P & I payment is made on the asset
during the year of purchase. Other expenses like taxes, and insurance are also not made during the year of purchase.
Breeding Livestock.
luded in the initial setup.

nter any type
Asset section starting
c number to
duction figures entered

nancial statements.
r ability, remembering
captial contributions,
ment is made on the asset

Dairy Farm Financial

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Dairy Farm Financial

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Enter Numbers inDark Blue on the following page, all others are calculated.

r requested data. This template is not capable of detailed financial analysis.

Written by Duane Griffith

To check for updates of this software, click

Loof for the RDFinancial file and check

es of this software, click the link below.

nancial file and check the

Crop Production/Sales Estimates:

(MUST use a yield of 1 for summer fallow, price = zero)

Total Owner/Tenant Revenue Received

Livestock Produciton/Sales Estimates:

Breeding Livestock Enterprises

Non-Breeding Livestock Ent.

Cull Revenue Calculations

Name for each Enterprise

Sum. Fallow Recrop Bar.

Counter Cyclical Payments:

Effective Price calculation

Avg. Cost Per Unit of Yield

Total cost of production, Crops and Livestock

Non-Breeding Livestock Ent.

<< Example, enter 2% as 2% not 102%.

Do Not include interest or

Asset and Liability Calculations for the Balance Sheet, Ca

Crop Acres/Units Owned

Mach & Equip.

Bldg & Improvements

MPCI Basic Unit Insurance Option: Example below allow

Help Ownership Level This Basic Unit

Help FCIC Establish Market Price

Help Market Price Election

Calculated Yield Coveage Level

Actual Harvested Yield

Total Number of Planted Acres in This Enterprise

Quantiity Indemnity Payment Level

Acres Remaining after allocation to Basic Unit

Help APH Yield Coverage Election-by Crop

Help Ownership Level This Basic Unit

Help FCIC Establish Market Price

Help Market Price Election

Calculated Yield Coveage Level

Actual Harvested Yield

Quantiity Indemnity Payment Level

Acres Remaining after allocation to Basic Unit

Maximum Possible Indemnity Payment by Crop

Estimated Indemnity Based on Acutal Yields

Total Potential Indemnity Payment This Basic Unit

Esttimated Total Indemnity This Basic Unit

Acres of each crop in Basic Unit # 3

Acres Remaining after allocation to ALL Posibl

Actual Premium Paid by Producer

Total Premium Actually Paid

Help Total Potential Indemnity Payment

Total Indemnity Paid Given Actual Yields

n: Example below allows only 3 Basic Units for illustrative purposes.

ter allocation to Basic Unit # 1

ter allocation to Basic Unit # 2

Insurance Premium Subsidy

Percent Crop Revenue

Percent Livestock Revenue

Cash Flow Statement

Accounts Payable (Exp)

Percent Cost of Production - Crops

Percent Gov. Payments