Transcript 2010 Region 4 Powerpoint - NDFMGMT

Farm/Ranch Business
Management Education
Year 2010
Jerry Tuhy, Instructor
Bismarck State College at DREC
Gross Income (Accrual)
$ Per farm for year
1400000
1200000
1000000
800000
Average
20% High
20% Low
600000
400000
200000
0
2006
2007
2008
2009
2010
Net Income Ratio (%)
percentage of gross $ that is net $
40
30
20
Average
20% High
20% Low
10
0
-10
-20
2006
2007
2008
2009
2010
Net Income Ratio
% of Gross available for Family
living and Increasing Net Worth
average
26.3%
9.3%
64.5
%
0per exp
Int. & Depr
Net Income Ratio
high profit
34.1%
57.9
%
7.9%
$ Net Farm Income “Profit”
500000
400000
300000
Average
20% High
20% Low
200000
100000
0
-100000
2006
2007
2008
2009
2010
$ Net “Non-Farm” Income
60000
50000
40000
Average
20% High
20 % Low
30000
20000
10000
0
2006
2007
2008
2009
2010
Family Living & Income Taxes
$ spent/year
80000
70000
60000
50000
Average
20% High
20% Low
40000
30000
20000
10000
0
2006
2007
2008
2009
2010
Change in Retained Earnings
$ of equity gain per yr (cost basis)
500000
400000
300000
Average
20% High
20% Low
200000
100000
0
-100000
2006
2007
2008
2009
2010
Farm Debt/Asset Ratio (%) end year
cost basis
90
80
70
60
50
Average
High 20%
Low 20%
40
30
20
10
0
2006
2007
2008
2009
2010
Term Debt Coverage Ratio
a 100% ratio means “we can make all debt payments”
600
500
400
300
Average
High 20%
Low 20%
200
100
0
-100
2006
2007
2008
2009
2010
Spring Wheat on Cash Rented
(Bu.Yield/Acre)
60
50
40
Average
High
Low
30
20
10
0
2006
2007
2008
2009
2010
Spring Wheat Ave Yields and
Net $ per Acre
100
80
60
40
Ave Yield
Net$/ A
20
0
-20
-40
2006
2007
2008
2009
2010
Costs /acre for Spring Wheat comparing 06 to2010
180
160
140
120
100
80
60
40
20
0
'06
'10
Seed
'06
'10
9
11
Fert. Chem. Insur.
27
44
16
25
6
11
Fuel+ Total
Repair Direct
15
23
106
160
Crop Contributions to Overheads
Year2010
400
350
300
250
200
150
100
50
n
Fl
w
r
y
le
Su
Ba
r
lf
A
H
ay
as
Pe
ht
S
W
n
or
ur
D
C
um
l
Si
n
or
C
Le
nt
ils
0
Gross
Direct Cost
Gross Margin
Crop cost increased almost 50%
from 2006 to 2010
•
•
•
•
Spring Wheat total cost /A. in 2006 was $125, in 2010 was $187
This is 49.6 % increase
$125/ 30 bu = 4.16 Break Even, $187/ 30 bu= 6.23 Break Even
Land rent ave. in 2006 was $26 / A. in 2010 rent was $31/A.
•
•
•
•
Sunflower Cost/A in 2006 was$158 in 2010 total cost was $228
This was 44% increase
$158/12cwt = 13.15 BE price/cwt $228/12 = $19 BE price
Land rent for S flowers went from 27/A to $33/ acre during this time
$ Net income /Beef Cow
250
200
150
100
Average
High 20%
Low 20%
50
0
-50
-100
-150
2006
2007
2008
2009
2010
Beef cow costs, returns 2010
per cow (fuel&repairs in OVRHD)
average
high profit
$109
$343
$217
$112
$96
direct
overheads
net $
$307
How are low profit and high profit
Beef herds different ? For 2010 year.
Low Profit High Profit
Value of calf/cow
$567
$643
Depreciation per cow
$139
$32
Direct cost/cow
$451
$353
Overhead expense/cow
$93
$50
Cost per cwt (D&Ovhd)
$112
$75
Net Income per Cow
-$95
+$217
More info on these websites
www.finbin.umn.edu- Sort data by State, region, year, etc.
Whole farm, crop or livestock enterprise data available
Ifsam.cffm.umn.edu- learn to use financial statements in dayto-day management. understand how to interpret financial
statements.
www.ndfarmmanagement.com- Instructor contacts, regional
data, news, resources for farm/ranch management.