2018 Wisconsin FBPM Annual

Farm Financial Report

FBPM

The 2018 Wisconsin Annual Report is a result of the time and commitment from the contributing Farm Business & Production Management (FBPM) Instructors and the support from their prospective colleges (see map at end of report). The farm students whom this data is generated also deserve recognition for their commitment to maintaining sustainable businesses by committing to education and farm financial analysis. We recognize everyone’s efforts that went into collecting the data for this report. To generate the livestock and crop enterprise summaries requires additional time beyond what is required for whole farm analysis and we appreciate their efforts. We want to thank the supporters from our communities who believe in us and the FBPM program and show this through their actions. We hope that you find this report to be a valuable resource for you. Please let us know if you have any questions concerning this information.

This report was developed using FINPACK and RANKEM software developed by the Center for Farm Financial Management at the University of Minnesota. http://www.cffm.umn.edu/

Additional farm financial reports can be queried from the Center for Farm Financial Management FINBIN website. https://finbin.umn.edu/

This report was created through the efforts of the WI FBPM instructors and edited by Brad Sirianni, Farm Business & Production Management Instructor at Western Technical College.

TABLE OF CONTENTS Submitted Analysis Data Breakdown Important Information and Data from the Report Whole Farms Reports Information

a. Financial Summary by Years b. Financial Summary by Net Farm Income Categories c. Financial Standards Measures by Net Farm Income Categories d. Farm Income Statement e. Summary Farm Income Statement f. Summary Farm Income Statement by Net Farm Income Categories g. Profitability Measures by Net Farm Income Categories h. Liquidity & Repayment Capacity i. Balance Sheet at Market Values j. Balance Sheet at Cost Values k. Balance Sheet at Cost Values by Net Farm Income Categories l. Statement of Cash Flows m. Crop Production and Marketing Summary n. Operator & Labor Information o. Nonfarm Summary

Crop Reports Information a. Corn Net Return & Cost of Production b. Corn Enterprise Data by Years c. Soybean Enterprise Cost of Production Data d. Soybean Enterprise Data by Years e. Alfalfa Cost of Production f. Alfalfa Enterprise by Years g. Corn Silage Cost of Production h. Corn Silage Enterprise by Years

Livestock Reports Information a. Dairy per Cow b. Dairy per CWT c. Dairy & Replacements per Cow d. Dairy Organic per Cow e. Dairy Organic per CWT

Farmer Spending Impact Resources

a. Links b. Farm Finance Scorecard c. Flowchart for Assessing & Improving Farm Firm Profit

Sponsors & Logos Wisconsin & College Map

Wisconsin Report Data

Other includes farm enterprises – hogs, fruits, vegetables, contract growers, etc.

CVTC, 10, 12%

FVTC, 5, 6%

MSTC, 1, 1%

NWTC, 13, 16%

SWTC, 27, 33%

Western, 26, 32%

2018 Analysis Submitted by College

CVTC

FVTC

MSTC

NWTC

SWTC

Western

56

5

6

15

Analysis by Farm Type

Dairy Crop Beef Other

COP – Cost of production data from FINBIN database. WI data for corn, soybeans & milk. Cattle COP is MN & WI. Average annual prices for corn & soybeans if from CME. Milk from Federal Milk Marketing Order data. Cattle from Beef Market Central.

$63,933.00

$18,284.00

$72,072.00

$127,095.00

$110,780.00

$56,827.00

$107,784.00

$26,339.00

$29,958.00 $38,173.00

-$9,334.00-$20,000.00

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net Farm Income (All Farms)

$3.88$7.62

$16.90

$120.75

$3.70$9.34

$15.72

$117.83

-$10.00

$10.00

$30.00

$50.00

$70.00

$90.00

$110.00

$130.00

Corn Soybeans Milk Cattle

Cost of Production vs. Avg. Annual Price

COP Avg. Price

Whole Farm Reports

The whole-farm reports summarize the financial performance of member farms in 2018. Each table includes the average of the 82 farms included in the report. Many of the reports list the data from lowest to highest by 20% increments. Some reports will not show this due to not meeting a minimum number of farms in each category to show the data. Most of the reports are also sorted by Net Farm Income. Please consider how the data is sorted when analyzing it.

Below is a short summary of the whole farm reports.

Summary of Whole Farm Analysis by Years

This report is sorted by years and also shows the number of farms included in each year. This is for comparison purposes and as you analyze it you may be able to see potential trends in the various categories.

Financial Summary

The Financial Summary report provides a summary of the key financial measures and ratios included on the other detailed whole farm reports. All profitability and repayment capacity measures are based on accrual adjusted net farm income.

Financial Standards Measures

The Farm Financial Standards Council recommends that farms use these twenty-one measures as standard measures of farm financial performance. Many are repeated from the Profitability, Liquidity, and Balance Sheet tables. For a complete description, see the Financial Guidelines for Agricultural Producers at http://www.ffsc.org/index.php/order-the-guidelines/

Farm Income Statement

The Income Statement calculates the accrual Net Farm Income generated by the average farm for year 2018. Net Farm Income is reported based on accrual adjustments to the cash income and expenses reported for the year. Net Farm Income is the income earned before any compensation for owner labor and management. If owner compensation was included in farm expenses, it has been excluded here to make all farms uniform. Net Farm Income represents the return to the operator's labor, management, and equity capital (net worth). It is the amount the farm contributed to owner family living, income taxes, and net worth growth. However, it does not include any asset appreciation, debt forgiveness or asset repossessions. Most farmers are familiar with 1040 F income statement that is provided to the Internal Revenue Service each year. Most farmers file the 1040 F based on a cash accounting system of accounting. They may also use methods of depreciation (e.g. MARCS) that do not realistically reflect actual depreciation. In addition, a cash based 1040 F does not account for all changes in inventory. The income statements in this report depart from a 1040 F from both of these

perspectives. As a result, the net farm income reported in the following tables represents an accrual adjusted income statement which cannot be directly compared to a 1040 F income statement.

Profitability Measures

The profitability measures are calculated based on both the cost value of assets and the market value. When calculated based on the market value of assets, the profitability measures can be compared to interest rates and returns available on alternative investments. When based on cost values, the returns more closely estimate the actual returns from the actual investment. (Cost values do not reflect the tax basis of farm assets. Instead, a method of calculating depreciation is used that estimates economic depreciation over the useful life of the assets.)

- The Rate of Return on Assets (ROA) can be thought of as the interest rate earned by all investment in farm assets.

- Rate of Return on Equity (ROE) is the rate earned on the operator’s equity or net worth in the farm business. If ROE is higher than ROA, borrowed funds more than paid for their cost in interest expense.

- Operating Profit Margin measures efficiency in farm operations. The higher the margin, the more of the farm income remained in pockets of the farm operator.

- Asset Turnover Rate measures efficiency in use of capital. Again, the higher the better. Farms with high investment in fixed assets will generally have a lower turnover rate than those who lease a major share of their capital.

Liquidity and Repayment Capacity Measures

Liquidity reflects the ability of the farm to meet its financial obligations on time.

- Current Ratio is current farm assets divided by current farm liabilities. - Working Capital is current farm assets minus current farm liabilities. Businesses with

more working capital are generally in a better position to overcome short-term financial downturns or production problems.

- Working Capital to Gross Income measures liquidity relative to business size.

Repayment capacity measures the ability of the business to meet debt payments and replace capital assets.

- Term Debt Coverage Ratio measures the ability of the business to meet its scheduled debt payments. A term debt coverage ratio greater than 1.0 indicates that the business produced more than enough earnings to meet its scheduled debt payments.

- Replacement Coverage Ratio adds the need for capital replacement. A replacement coverage ratio greater than 1.0 indicates that the business produced more than enough earnings to meet its payments and replace its depreciable assets.

Balance Sheets

Balance sheet reports are included for both the cost and market value of assets. Current assets are identical in both tables, with crop and livestock inventories generally valued at market value. This conforms to the methodology recommended by the Farm Financial Standards Council. On the cost-based table, intermediate and long term assets are shown at depreciated value using estimated economic, rather than tax, depreciation. On the market table, they are valued at estimated market value.

Liabilities are the same on the cost and market tables except for the inclusion of Deferred Liabilities on the market statements. Deferred liabilities are the estimated taxes that would be paid if assets were liquidated at their market values.

- Net Worth Change on the cost value table is the amount of earned net worth growth or loss for the year. Net worth change on the market value table includes both earned growth and changes in the market valuation of capital assets.

Statement of Cash Flows

The Statement of Cash Flows displays the sources and uses of cash for the year.

- Cash From Operating Activities includes sources and uses of cash related to normal farm operations.

- Cash From Investing Activities reflect cash used to buy and sell capital assets. - Cash From Financing Activities includes sources and uses of borrowed funds as well as

cash from nonfarm activities.

Crop Production and Marketing

This table reports farm size in acres farmed, average crop yields for major commodities, and average crop sales prices for the calendar year. Yields and prices are reported for the average of all farms for more commodities than those included in the High and Low columns because a minimum of five farms are required to report the yield or price for any group.

Household and Personal Expenses

This table reports family living and other non-farm expenditures. Only sole proprietors who keep detailed family living records are included. Currently, there are too few producers who track their personal expenses for us to include this in our report. However, we do view it as an important number to track and desire to include it in the future.

Operator and Labor Information

All previous tables report results per farm, regardless of the number of families or operators involved in the operation. This report repeats several measures from previous tables on a Per Operator basis. It also summarizes estimated labor hours used and labor performance.

Nonfarm Summary

This table summarizes nonfarm earnings for the average farm and details nonfarm assets and liabilities.

Projected Profitability

Based on the past year’s results and the author’s estimates of changes in next year’s production, prices and costs, this page projects the financial performance of these farms in the coming year. This report is not included in this year’s summary.

Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 84 104 133 123 101 105 127 121 110 82Income Statement Gross cash farm income 444606 448964 583927 657535 465526 580508 558271 503025 798143 769008 Total cash farm expense 410727 369036 461619 538785 369051 470617 462569 430012 698599 673736 Net cash farm income 33879 79929 122308 118749 96475 109891 95701 73012 99544 95272 Inventory change 9898 21435 40040 37246 -7417 30875 -28376 4055 9806 -23816 Depreciation -25622 -29385 -35932 -45471 -33152 -33486 -42321 -48542 -72550 -79726 Net farm income from operations 18155 71978 126417 110525 55907 107279 25004 28525 36801 -8270 Gain or loss on capital sales 128 94 678 255 921 505 1335 1433 1373 -1064 Average net farm income 18284 72072 127095 110780 56827 107784 26339 29958 38173 -9334 Median net farm income 23561 52765 92725 74057 38342 80767 22737 23977 26353 2065Profitability (cost) Rate of return on assets 3.20% 5.70% 10.90% 7.90% 3.30% 7.10% -0.50% 0.50% 1.00% -1.70% Rate of return on equity -0.20% 6.40% 21.00% 12.60% 2.80% 10.80% -4.80% -3.40% -3.00% -11.10% Operating profit margin 7.90% 13.60% 22.70% 17.20% 8.90% 17.50% -1.50% 1.70% 3.00% -5.60% Asset turnover rate 40.30% 41.50% 48.00% 46.00% 36.80% 40.80% 33.10% 31.70% 34.50% 29.80%Profitability (market) Rate of return on assets 3.90% 6.20% 9.20% 8.50% 4.40% 6.50% 1.20% 1.80% 3.10% 0.30% Rate of return on equity 3.80% 7.60% 13.70% 12.30% 5.40% 8.80% -0.30% 0.60% 2.70% -2.50% Operating profit margin 17.00% 23.10% 29.10% 28.40% 17.90% 22.70% 5.00% 8.00% 12.90% 1.60% Asset turnover rate 23.10% 27.00% 31.50% 30.10% 24.80% 28.70% 23.10% 22.60% 23.70% 19.40%Liquidity & Repayment (end of year) Current assets 186371 174990 200123 273010 216456 252163 233030 236210 291575 310821 Current liabilities 109102 84976 98803 111391 100837 108502 127893 132023 187185 213598 Current ratio 1.71 2.06 2.03 2.45 2.15 2.32 1.82 1.79 1.56 1.46 Working capital 77269 90014 101320 161619 115620 143661 105137 104187 104390 97223 Change in working capital -22005 -3807 Working capital to gross inc 16.50% 19.30% 16.50% 23.40% 24.80% 24.20% 19.30% 20.00% 12.90% 12.70%

16.50 19.30 16.50 23.40 24.80 24.20 19.30 20.00 12.90 12.70 Term debt coverage ratio 0.53 1.55 2.14 1.83 1.25 1.89 0.76 0.95 1.18 0.67 Replacement coverage ratio 0.47 1.32 1.91 1.64 1.11 1.67 0.65 0.79 0.94 0.59 Term debt to EBITDA 6.86 3.31 2.65 2.92 3.9 2.91 5.51 5.47 5.58 8.04

Financial Summary (Farms Sorted By Years)

Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Solvency (end of year at cost) Number of farms 67 104 133 122 101 105 127 121 110 82 Total assets 1137282 946831 1085338 1283989 1067505 1227247 1403941 1389924 1886203 1984970 Total liabilities 734712 539759 648434 717652 578480 606419 692355 741235 1098203 1218009 Net worth 402571 407072 436904 566338 489025 620828 711586 648689 788000 766961 Net worth change -17482 40263 96526 80446 15767 79966 1354 -1226 3639 -21690 Farm debt to asset ratio 66% 58% 60% 57% 56% 51% 52% 55% 59% 63% Total debt to asset ratio 65% 57% 60% 56% 54% 49% 49% 53% 58% 61% Change in earned net worth -4% 11% 28% 17% 3% 15% 0% 0% 0% -3%

Solvency (end of year at market) Number of farms 84 104 133 123 101 105 127 121 110 82 Total assets 1597435 1477105 1653075 1958976 1587455 1740204 2028026 1984191 2801249 3098465 Total liabilities 788179 637598 771240 854431 670681 705032 858814 907180 1280036 1456132 Net worth 809256 839507 881835 1104545 916774 1035172 1169212 1077011 1521213 1642333 Total net worth change 15807 77972 127113 140424 53160 102018 26696 28648 70786 24245 Farm debt to asset ratio 50% 43% 47% 44% 43% 41% 44% 48% 47% 49% Total debt to asset ratio 49% 43% 47% 44% 42% 41% 42% 46% 46% 47% Change in total net worth % 2% 10% 17% 15% 6% 11% 2% 3% 5% 1%

Nonfarm Information Net nonfarm income 11355 15385 13356 15048 18754 20876 21523 18001 18591 24210 Farms reporting living expenses 5 7 4 4 4 3 6 Total family living expense - - - - - - - Total living invest cap. purch - - - - - - -

Crop Acres Total crop acres 268 289 306 340 277 289 305 248 343 378 Total crop acres owned 117 109 123 120 114 103 100 113 135 194 Total crop acres cash rented 150 180 181 218 162 174 204 135 209 184 Total crop acres share rented 1 0 1 1 0 12 1 - - 0 Machinery value per crop acre 796 746 798 901 917 941 1023 1036 1146 1265

Financial Summary (Farms Sorted By Years)

All Farms Low 20% 20 - 40% 40 - 60% 60 - 80% High 20%Number of farms 82 16 16 17 16 17Income Statement Gross cash farm income 769008 1512505 607882 386701 391233 958753 Total cash farm expense 673736 1408413 570503 326859 323744 755715 Net cash farm income 95272 104092 37380 59842 67489 203037 Inventory change -23816 -146355 -35310 -24161 1936 78442 Depreciation -79726 -224084 -35490 -27394 -30652 -84013 Net farm income from operations -8270 -266347 -33420 8287 38773 197466 Gain or loss on capital sales -1064 -7800 2043 1037 -1365 533 Average net farm income -9334 -274148 -31378 9324 37408 197999 Median net farm income 2065 -132080 -29519 -762 29087 160876

Profitability (cost) Rate of return on assets -1.70% -9.20% -4.10% -0.80% 1.30% 5.10% Rate of return on equity -11.10% -195.60% -22.70% -8.00% -0.40% 5.60% Operating profit margin -5.60% -27.50% -12.90% -2.50% 5.00% 19.10% Asset turnover rate 29.80% 33.50% 31.90% 31.70% 25.50% 26.60%

Profitability (market) Rate of return on assets 0.30% -3.20% 0.20% 0.30% 2.00% 4.90% Rate of return on equity -2.50% -11.50% -3.80% -2.90% 1.60% 5.70% Operating profit margin 1.60% -18.60% 0.70% 1.30% 12.30% 22.20% Asset turnover rate 19.40% 17.20% 21.00% 22.30% 16.50% 22.20%

Liquidity & Repayment (end of year) Current assets 310821 593225 215777 141901 224760 384398 Current liabilities 213598 498268 210984 108715 79330 179386 Current ratio 1.46 1.19 1.02 1.31 2.83 2.14 Working capital 97223 94958 4794 33186 145430 205012 Change in working capital -3807 -35324 -45257 -19936 5695 72054 Working capital to gross inc 12.70% 6.50% 0.80% 9.00% 37.40% 20.00% Term debt coverage ratio 0.67 0.13 0.22 0.67 1.49 1.72 Replacement coverage ratio 0.59 0.13 0.18 0.55 1.04 1.45 Term debt to EBITDA 8.04 34.98 18.23 7.61 4.65 2.92

Financial Summary (Farms Sorted By Net Farm Income)

0.76

0.65

5.51

0.01.02.03.04.05.06.07.08.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Repayment Measures (ratios %)

Term debt coverage ratio Replacement coverage ratio

Term debt to EBITDA

All Farms Low 20% 20 - 40% 40 - 60% 60 - 80% High 20%Solvency (end of year at cost) Number of farms 82 16 16 17 16 17 Total assets 1984970 2891956 1518284 994580 1322485 3184475 Total liabilities 1218009 2791155 1066705 578885 477975 1215432 Net worth 766961 100801 451579 415695 844510 1969043 Net worth change -21690 -295045 -46094 -15386 21789 211330 Farm debt to asset ratio 63% 98% 72% 59% 38% 39% Total debt to asset ratio 61% 97% 70% 58% 36% 38% Change in earned net worth % -3% -75% -9% -4% 3% 12%

Solvency (end of year at market) Number of farms 82 16 16 17 16 17 Total assets 3098465 5845702 2323870 1487029 2070592 3820706 Total liabilities 1456132 3263432 1295249 688515 645560 1437072 Net worth 1642333 2582270 1028620 798514 1425033 2383633 Total net worth change 24245 -209302 18406 17018 46265 236052 Farm debt to asset ratio 49% 57% 58% 49% 33% 39% Total debt to asset ratio 47% 56% 56% 46% 31% 38% Change in total net worth % 1% -7% 2% 2% 3% 11%

Nonfarm Information Net nonfarm income 24210 22535 44045 28411 17757 8990

Crop Acres Total crop acres 378 735 267 214 264 416 Total crop acres owned 194 317 169 68 139 279 Total crop acres cash rented 184 418 99 146 125 137 Total crop acres share rented 0 - - 0 - - Machinery value per crop acre 1265 1234 1185 828 987 1756

Financial Summary (Farms Sorted By Net Farm Income)

-0.017

-0.111

-0.056

0.298

-15%

-5%

5%

15%

25%

35%

45%

55%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Profitability Measures (cost)

Rate of return on assets Rate of return on equity

Operating profit margin Asset turnover rate

All Farms Low 20% 20 - 40% 40 - 60% 60 - 80% High 20%Number of farms 82 16 16 17 16 17Liquidity Current ratio 1.46 1.19 1.02 1.31 2.83 2.14 Working capital 97223 94958 4794 33186 145430 205012 Working capital to gross inc 12.70% 6.50% 0.80% 9.00% 37.40% 20.00%

Solvency (market) Farm debt to asset ratio 49% 57% 58% 49% 33% 39% Farm equity to asset ratio 51% 43% 42% 51% 67% 61% Farm debt to equity ratio 0.95 1.34 1.36 0.95 0.49 0.64

Profitability (cost) Rate of return on farm assets -1.70% -9.20% -4.10% -0.80% 1.30% 5.10% Rate of return on farm equity -11.10% -195.60% -22.70% -8.00% -0.40% 5.60% Operating profit margin -5.60% -27.50% -12.90% -2.50% 5.00% 19.10% Net farm income -9334 -274148 -31378 9324 37408 197999 EBITDA 118724 64018 40295 59131 87783 332739

Repayment Capacity Capital debt repayment capacity 84160 39057 21360 36741 67678 248646 Capital debt repayment margin -41914 -251109 -77427 -17955 22288 104017 Replacement margin -59587 -259100 -99040 -29655 2429 77020 Term debt coverage ratio 0.67 0.13 0.22 0.67 1.49 1.72 Replacement coverage ratio 0.59 0.13 0.18 0.55 1.04 1.45

Efficiency Asset turnover rate (cost) 29.80% 33.50% 31.90% 31.70% 25.50% 26.60% Operating expense ratio 84.40% 95.60% 93.20% 84.00% 77.40% 67.50% Depreciation expense ratio 10.40% 15.40% 6.00% 7.40% 7.90% 8.20% Interest expense ratio 6.20% 7.30% 6.50% 6.40% 4.70% 5.00% Net farm income ratio -1.10% -18.30% -5.70% 2.20% 10.00% 19.30%

Financial Standards Measures (Farms Sorted By Net Farm Income)

-0.04

0.11

0.28

0.17

0.03

0.15

0 0 0 -0.03

-0.1-0.05

00.05

0.10.15

0.20.25

0.30.35

0.40.45

0.50.55

0.60.65

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Solvency Measures (cost) Ratios

Farm debt to asset ratio Total debt to asset ratio

Change in earned net worth

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 1084 83 104 133 123 101 103 124 121 110 82

Crop sales 70021 37091 61185 76930 101337 72413 60040 73458 69130 65803 67752Crop inventory change 8047 11349 13637 23387 26605 -12244 3077 -4346 11643 1038 -1026Gross crop income 78069 48440 74822 100316 127942 60169 63117 69112 80772 66841 66726

Livestock sales 426811 331751 340369 450304 459061 305137 428210 391899 357696 630061 576418Livestock inventory change 2147 2625 3321 2438 1061 2092 5892 -4361 2784 5362 1289Gross livestock income 428958 334376 343690 452742 460123 307229 434102 387537 360480 635424 577706

Government payments 13242 32067 8073 6931 17013 12724 4251 14658 13791 7288 22295Other cash farm income 72494 47936 39336 49762 80124 75252 90854 86076 62408 94990 102543Change in accounts receivable 1276 2292 -860 1871 5650 8210 566 -5069 1534 -172 -1058Gain or loss on hedging accounts -1 1290 -1002 1414 -406 -347 286 -5 -187 -1026 -7Change in other assets 538 -181 558 -147 1098 996 284 728 -576 1651 1128Gain or loss on breeding lvst 1701 6622 1255 834 -615 2335 3514 221 3902 4945 -6258Gross farm income 596277 472841 465873 613723 690928 466568 596975 553258 522124 809942 763075

Cash operating expenses 458785 386095 342438 431614 509706 350025 451135 445059 403801 657341 626724Change in prepaids and supplies -241 6656 -4645 -7100 -4981 2437 -8690 12128 4071 -3029 2585Change in growing crops -77 367 1197 155 -126 -392 -749 -1203 347 546 -968Change in accounts payable 3230 6282 -1212 -3464 1110 6035 -7478 4538 9802 4807 16011Depreciation 44350 25889 29385 35932 45471 33152 33306 42966 48542 72550 79726Total operating expense 506047 425289 367163 457137 551179 391257 467524 503488 466563 732216 724077

Interest paid 29006 29031 26598 30005 29080 19026 21704 24007 26212 41257 47012Change in accrued interest 247 648 134 165 145 379 352 15 825 -332 255Total interest expense 29253 29678 26732 30170 29224 19405 22056 24022 27037 40925 47267Total expenses 535300 454967 393895 487307 580403 410662 489580 527510 493600 773141 771344

Net farm income from operations 60978 17874 71978 126417 110525 55907 107395 25748 28525 36801 -8270Gain or loss on capital sales 643 130 94 678 255 921 515 1386 1433 1373 -1064

Net farm income 61621 18004 72072 127095 110780 56827 107910 27134 29958 38173 -9334

Summary Farm Income Statement (Farms Sorted By Years)

All Farms Low 20% 20 - 40% 40 - 60% 60 - 80% High 20%Number of farms 82 16 16 17 16 17Crop sales 67752 62443 80377 71211 86966 39322Crop inventory change -1026 -26167 -8953 -8935 4234 33053Gross crop income 66726 36276 71424 62277 91200 72375Livestock sales 576418 1261055 356857 261298 248976 761999Livestock inventory change 1289 3895 -14565 497 3107 12837Gross livestock income 577706 1264949 342292 261795 252083 774836

Government payments 22295 35048 21134 16121 19063 20602Other cash farm income 102543 153959 149515 38070 36228 136828Change in accounts receivable -1058 -12230 3345 2408 -3302 3958Gain or loss on hedging accounts -7 707 785 - -675 -800Change in other assets 1128 -1230 1069 -929 520 6030Gain or loss on breeding lvst -6258 -24581 -1277 -11030 -6157 10975Gross farm income 763075 1452897 588287 368713 388960 1024805

Cash operating expenses 626724 1303312 533407 303719 305974 702648Change in prepaids and supplies 2585 12336 976 5443 -6521 635Change in growing crops -968 -4390 1177 2 -306 -1362Change in accounts payable 16011 77622 12432 417 2029 -9854Depreciation 79726 224084 35490 27394 30652 84013Total operating expense 724077 1612964 583482 336976 331829 776079

Interest paid 47012 105100 37095 23140 17770 53068Change in accrued interest 255 1180 1131 310 588 -1807Total interest expense 47267 106280 38226 23450 18358 51260Total expenses 771344 1719244 621708 360426 350187 827339

Net farm income from operations -8270 -266347 -33420 8287 38773 197466Gain or loss on capital sales -1064 -7800 2043 1037 -1365 533

Net farm income -9334 -274148 -31378 9324 37408 197999

Summary Farm Income Statement (Farms Sorted By Net Farm Income)

-$50,000$50,000

$150,000$250,000$350,000$450,000$550,000$650,000$750,000$850,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Income / Expenses / Net

Gross cash farm income Total cash farm expense

Net cash farm income Net farm income from operations

All Farms Low 20% 20 - 40% 40 - 60% 60 - 80% High 20%Number of farms 82 16 16 17 16 17Profitability (assets valued at cost) Net farm income from operations -8270 -266347 -33420 8287 38773 197466 Rate of return on assets -1.70% -9.20% -4.10% -0.80% 1.30% 5.10% Rate of return on equity -11.10% -195.60% -22.70% -8.00% -0.40% 5.60% Operating profit margin -5.60% -27.50% -12.90% -2.50% 5.00% 19.10% Asset turnover rate 29.80% 33.50% 31.90% 31.70% 25.50% 26.60%

Farm interest expense 47267 106280 38226 23450 18358 51260 Value of operator lbr and mgmt. 70855 111908 62602 39019 41562 99390 Return on farm assets -31857 -271975 -57796 -7282 15569 149337 Average farm assets 1895310 2957349 1408967 929531 1232282 2943285 Return on farm equity -79125 -378255 -96022 -30732 -2789 98077 Average farm equity 711624 193372 422988 381864 753058 1761813 Value of farm production 565172 989461 449265 294909 314043 781552

Profitability (assets valued at market) Net farm income from operations 32588 -178232 27613 19307 61823 221455 Rate of return on assets 0.30% -3.20% 0.20% 0.30% 2.00% 4.90% Rate of return on equity -2.50% -11.50% -3.80% -2.90% 1.60% 5.70% Operating profit margin 1.60% -18.60% 0.70% 1.30% 12.30% 22.20% Asset turnover rate 19.40% 17.20% 21.00% 22.30% 16.50% 22.20%

Farm interest expense 47267 106280 38226 23450 18358 51260 Value of operator lbr and mgmt. 70855 111908 62602 39019 41562 99390 Return on farm assets 9000 -183861 3237 3738 38619 173326 Average farm assets 2913474 5742993 2135190 1324038 1907428 3519202 Return on farm equity -38267 -290141 -34988 -19712 20261 122065 Average farm equity 1502289 2523748 928770 681463 1266630 2123321 Value of farm production 565172 989461 449265 294909 314043 781552

Profitability Measures (Farms Sorted By Net Farm Income)

-0.017

-0.111

-0.056

0.298

-15%

-5%

5%

15%

25%

35%

45%

55%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Profitability Measures (cost)

Rate of return on assets Rate of return on equity

Operating profit margin Asset turnover rate

All Farms Low 20% 20 - 40% 40 - 60% 60 - 80% High 20%Number of farms 82 16 16 17 16 17Liquidity Current ratio 1.46 1.19 1.02 1.31 2.83 2.14 Working capital 97223 94958 4794 33186 145430 205012 Working capital to gross inc 12.70% 6.50% 0.80% 9.00% 37.40% 20.00%

Current assets 310821 593225 215777 141901 224760 384398 Current liabilities 213598 498268 210984 108715 79330 179386 Gross revenues (accrual) 763075 1452897 588287 368713 388960 1024805

Repayment capacity Net farm income from operations -8270 -266347 -33420 8287 38773 197466 Depreciation 79726 224084 35490 27394 30652 84013 Personal income 24210 22535 44045 28411 17757 8990 Family living/owner withdrawals -55449 -56228 -54195 -45541 -36117 -83998 Cash discrepancy 83 194 - 21 1 196 Payments on personal debt -1567 -736 -3146 -1860 -542 -1536 Income taxes paid -1409 -974 -1174 -1499 -524 -2783 Interest on term debt 46835 116528 33761 21528 17677 46298 Capital debt repayment capacity 84160 39057 21360 36741 67678 248646

Scheduled term debt payments -126073 -290166 -98788 -54696 -45389 -144629 Capital debt repayment margin -41914 -251109 -77427 -17955 22288 104017

Cash replacement allowance -17674 -7991 -21613 -11701 -19859 -26997 Replacement margin -59587 -259100 -99040 -29655 2429 77020

Term debt coverage ratio 0.67 0.13 0.22 0.67 1.49 1.72 Replacement coverage ratio 0.59 0.13 0.18 0.55 1.04 1.45

Liquidity & Repayment Capacity Measures (Farms Sorted By Net Farm Income)

1.71

2.06 2.03

2.45

2.15

2.32

1.82 1.79

1.561.46

1.00

1.50

2.00

2.50

3.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Liquidity - Current Ratio

Current ratio

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of farms 1084 83 104 133 123 101 103 124 121 110 82

AssetsCurrent Farm Assets Cash and checking balance 25600 16131 14324 16748 34359 26659 30489 26741 28633 29149 32297 Prepaid expenses & supplies 20480 13815 15800 21152 28378 20719 27640 20763 16562 21539 14865 Growing crops 3004 1540 1495 1586 2794 3409 4395 3641 3742 3352 4246 Accounts receivable 21144 30730 16882 11661 20133 24093 26195 18092 17314 29443 22902 Hedging accounts 441 281 419 736 814 350 437 569 258 141 184 Crops held for sale or feed 141637 107831 102719 127609 163701 116677 131985 143677 147514 177012 198529 Crops under government loan 1950 1877 4788 4766 2298 2460 1200 1384 - - - Market livestock held for sale 21470 14910 17508 15012 18737 21245 27900 18489 21326 27551 36479 Other current assets 1301 149 1054 852 1796 844 852 1577 862 3388 1319Total current farm assets 237027 187263 174990 200123 273010 216456 251092 234934 236210 291575 310821

Intermediate Farm Assets Breeding livestock 248333 282630 225920 239221 249040 163872 205397 243302 227453 338112 331705 Machinery and equipment 340410 250057 224659 258297 325899 280780 332377 365632 364451 502435 526185 Titled vehicles 23116 21648 14318 19996 28677 18352 19776 23885 25428 25114 35285 Other intermediate assets 12365 11740 9428 10995 13997 7341 9012 12135 12474 16909 20987Total intermediate farm assets 624223 566076 474324 528509 617614 470346 566562 644954 629806 882571 914163

Long Term Farm Assets Farm land 714824 536511 523315 603742 697927 631235 608838 710599 704049 1025836 1184876 Buildings and improvements 289294 239338 226877 244275 265982 176919 208199 297917 283061 479201 508689 Other long-term assets 8239 9290 9120 10453 9008 5034 5895 6381 5947 9337 12925Total long-term farm assets 1012357 785139 759311 858469 972916 813188 822932 1014897 993057 1514374 1706490Total Farm Assets 1873606 1538478 1408625 1587102 1863540 1499990 1640586 1894785 1859074 2688520 2931474

Total Nonfarm Assets 100976 58795 68480 65973 95436 87465 91896 140416 125117 112729 166991Total Assets 1974583 1597273 1477105 1653075 1958976 1587455 1732481 2035201 1984191 2801249 3098465

Balance Sheet at Market Values (Farms Sorted By Years)

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of farms 1084 83 104 133 123 101 103 124 121 110 82LiabilitiesCurrent Farm Liabilities Accrued interest 1396 1887 1124 794 1044 1335 1495 1316 1680 1483 2286 Accounts payable 21117 23413 13540 17690 17736 14996 13473 16647 25753 31488 42182 Current notes 49270 40161 30199 28962 30629 36341 43250 55945 53421 93227 91878 Government crop loans 665 849 1709 1287 563 965 531 648 - - - Principal due on term debt 53221 44064 38403 50071 61418 47200 49695 54080 51169 60988 77252Total current farm liabilities 125670 110375 84976 98803 111391 100837 108444 128635 132023 187185 213598

Total intermediate farm liabs 196921 221081 147810 192128 213876 143433 165748 161077 191967 277392 275704Total long term farm liabilities 402258 331771 293971 343033 363443 317269 317932 384300 404056 616244 713274Total farm liabilities 724849 663227 526757 633965 688710 561540 592124 674013 728046 1080821 1202575

Total nonfarm liabilities 16991 11928 13002 14469 26126 16940 20002 19304 13189 17382 15434Total liabs excluding deferreds 741840 675156 539759 648434 714836 578480 612126 693317 741235 1098203 1218009Total deferred liabilities 142014 122366 97839 122806 139595 92201 99004 169283 165945 181833 238123Total liabilities 883854 797522 637598 771240 854431 670681 711131 862600 907180 1280036 1456132

Net worth (farm and nonfarm) 1090729 799751 839507 881835 1104545 916774 1021351 1172601 1077011 1521213 1642333Net worth excluding deferreds 1232743 922117 937346 1004641 1244141 1008975 1120355 1341884 1242955 1703046 1880456Net worth change 69839 9669 77972 127113 140424 53160 99061 30661 28648 70786 24245Percent net worth change 7% 1% 10% 17% 15% 6% 11% 3% 3% 5% 1%

Ratio AnalysisCurrent farm liabilities / assets 53% 59% 49% 49% 41% 47% 43% 55% 56% 64% 69%Intermediate farm liab. / assets 32% 39% 31% 36% 35% 30% 29% 25% 30% 31% 30%Long term farm liab. / assets 40% 42% 39% 40% 37% 39% 39% 38% 41% 41% 42%Total debt to asset ratio 45% 50% 43% 47% 44% 42% 41% 42% 46% 46% 47%Debt to assets excl deferreds 38% 42% 37% 39% 36% 36% 35% 34% 37% 39% 39%

Balance Sheet at Market Values (Farms Sorted By Years)

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of farms 1066 66 104 133 122 101 103 124 121 110 82AssetsCurrent Farm Assets Cash and checking balance 25945 19059 14324 16748 34538 26659 30489 26741 28633 29149 32297 Prepaid expenses & supplies 20759 16307 15800 21152 28610 20719 27640 20763 16562 21539 14865 Growing crops 3054 1936 1495 1586 2816 3409 4395 3641 3742 3352 4246 Accounts receivable 21204 33847 16882 11661 20298 24093 26195 18092 17314 29443 22902 Hedging accounts 448 353 419 736 821 350 437 569 258 141 184 Crops held for sale or feed 143211 122724 102719 127609 164867 116677 131985 143677 147514 177012 198529 Crops under government loan 1924 1414 4788 4766 2317 2460 1200 1384 - - - Market livestock held for sale 21600 14984 17508 15012 18891 21245 27900 18489 21326 27551 36479 Other current assets 1315 58 1054 852 1811 844 852 1577 862 3388 1319Total current farm assets 239461 210681 174990 200123 274969 216456 251092 234934 236210 291575 310821

Intermediate Farm Assets Breeding livestock 207545 237862 178709 197684 208152 141874 172551 200438 196468 269804 303217 Machinery and equipment 230373 187667 150571 181161 226370 196085 237828 241135 255673 307123 328042 Titled vehicles 15975 17179 11122 14412 19128 13029 14606 15481 17076 16058 23364 Other intermediate assets 9248 9894 6844 8807 11417 6796 8653 10584 10019 10448 8270Total intermediate farm assets 463141 452602 347247 402063 465067 357784 433638 467638 479236 603433 662893

Long Term Farm Assets Farm land 331743 195144 201715 239514 272296 285338 290858 349869 374175 569838 543729 Buildings and improvements 231937 244806 179409 198081 204025 147650 174776 251719 229832 356389 366501 Other long-term assets 6352 7883 7043 8608 7171 3497 2945 4370 5566 6640 10927Total long-term farm assets 570031 447833 388166 446204 483491 436485 468579 605958 609573 932867 921157Total Farm Assets 1272633 1111116 910402 1048390 1223527 1010725 1153309 1308529 1325019 1827876 1894872

Total Nonfarm Assets 59506 27469 36429 36948 60462 56779 67632 90182 64905 58327 90098Total Assets 1332138 1138585 946831 1085338 1283989 1067505 1220940 1398711 1389924 1886203 1984970

Balance Sheet at Cost Values (Farms Sorted By Years)

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of farms 1066 66 104 133 122 101 103 124 121 110 82

LiabilitiesCurrent Farm Liabilities Accrued interest 1379 1713 1124 794 1052 1335 1495 1316 1680 1483 2286 Accounts payable 21319 26952 13540 17690 17882 14996 13473 16647 25753 31488 42182 Current notes 49366 38918 30199 28962 30717 36341 43250 55945 53421 93227 91878 Government crop loans 648 613 1709 1287 568 965 531 648 - - - Principal due on term debt 53709 49319 38403 50071 61634 47200 49695 54080 51169 60988 77252Total current farm liabilities 126422 117515 84976 98803 111852 100837 108444 128635 132023 187185 213598

Total intermediate farm liabs 197651 236890 147810 192128 215204 143433 165748 161077 191967 277392 275704Total long term farm liabilities 406441 379083 293971 343033 364255 317269 317932 384300 404056 616244 713274Total farm liabilities 730513 733488 526757 633965 691311 561540 592124 674013 728046 1080821 1202575

Total nonfarm liabilities 17102 12162 13002 14469 26340 16940 20002 19304 13189 17382 15434Total liabilities 747616 745651 539759 648434 717652 578480 612126 693317 741235 1098203 1218009

Net worth (farm and nonfarm) 584523 392934 407072 436904 566338 489025 608814 705394 648689 788000 766961Net worth change 31583 -20029 40263 96526 80446 15767 79309 -684 -1226 3639 -21690Percent net worth change 6% -5% 11% 28% 17% 3% 15% 0% 0% 0% -3%

Ratio AnalysisCurrent farm liabilities / assets 53% 56% 49% 49% 41% 47% 43% 55% 56% 64% 69%Intermediate farm liab. / assets 43% 52% 43% 48% 46% 40% 38% 34% 40% 46% 42%Long term farm liab. / assets 71% 85% 76% 77% 75% 73% 68% 63% 66% 66% 77%Total debt to asset ratio 56% 65% 57% 60% 56% 54% 50% 50% 53% 58% 61%

Balance Sheet at Cost Values (Farms Sorted By Years)

All Farms Low 20% 20 - 40% 40 - 60% 60 - 80% High 20%Number of farms 82 16 16 17 16 17AssetsCurrent Farm Assets Cash and checking balance 32297 18678 17923 9589 39297 74763 Prepaid expenses & supplies 14865 12594 5565 7050 31066 18320 Growing crops 4246 9065 366 3224 4935 3736 Accounts receivable 22902 43708 30530 7773 6069 27112 Hedging accounts 184 - - - 814 121 Crops held for sale or feed 198529 430273 150545 108671 108979 199721 Crops under government loan - - - - - - Market livestock held for sale 36479 76967 10568 5594 29160 60531 Other current assets 1319 1940 281 - 4439 94Total current farm assets 310821 593225 215777 141901 224760 384398Intermediate Farm Assets Breeding livestock 303217 656813 199798 153411 114261 395403 Machinery and equipment 328042 383247 227662 181664 186414 650234 Titled vehicles 23364 29583 24809 21650 15110 25635 Other intermediate assets 8270 6814 2431 4092 19045 9175Total intermediate farm assets 662893 1076458 454700 360817 334829 1080447Long Term Farm Assets Farm land 543729 400714 429236 307453 530829 1034507 Buildings and improvements 366501 749033 342438 114412 143409 491178 Other long-term assets 10927 14984 8171 518 - 30396Total long-term farm assets 921157 1164731 779845 422383 674239 1556081Total Farm Assets 1894872 2834414 1450322 925100 1233828 3020925Total Nonfarm Assets 90098 57542 67962 69480 88656 163550Total Assets 1984970 2891956 1518284 994580 1322485 3184475LiabilitiesCurrent Farm Liabilities Accrued interest 2286 3887 2334 623 1596 3047 Accounts payable 42182 130460 48071 12444 14780 9083 Current notes 91878 207666 98050 59930 34238 63288 Government crop loans - - - - - - Principal due on term debt 77252 156255 62528 35718 28716 103968Total current farm liabilities 213598 498268 210984 108715 79330 179386Total intermediate farm liabs 275704 809033 186746 143166 66425 186977Total long term farm liabilities 713274 1479965 651779 298291 328878 826326Total farm liabilities 1202575 2787266 1049510 550171 474632 1192689Total nonfarm liabilities 15434 3889 17196 28714 3343 22743Total liabilities 1218009 2791155 1066705 578885 477975 1215432Net worth (farm and nonfarm) 766961 100801 451579 415695 844510 1969043Net worth change -21690 -295045 -46094 -15386 21789 211330Percent net worth change -3% -75% -9% -4% 3% 12%Ratio AnalysisCurrent farm liabilities / assets 69% 84% 98% 77% 35% 47%Intermediate farm liab. / assets 42% 75% 41% 40% 20% 17%Long term farm liab. / assets 77% 127% 84% 71% 49% 53%Total debt to asset ratio 61% 97% 70% 58% 36% 38%

Balance Sheet at Cost Values (Farms Sorted By Net Farm Income)

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 1084 83 104 133 123 101 103 124 121 110 82Beginning cash (farm & nonfarm) 31896 21849 16891 18425 30156 32485 33601 40086 38962 44888 42449Cash Provided By Operating ActivitiesGross cash farm income 582569 448845 448964 583927 657535 465526 583355 566091 503025 798143 769008Total cash farm expense -487791 -415126 -369036 -461619 -538785 -369051 -472839 -469066 -430012 -698599 -673736Net cash from hedging transactions 165 1410 -870 1064 -152 -253 171 -114 -41 494 27Cash provided by operating 94943 35129 79059 123373 118598 96223 110687 96910 72972 100039 95299Cash Provided By Investing ActivitiesSale of breeding livestock 2367 1793 1724 2150 655 2261 1502 3539 5365 2295 1794Sale of machinery & equipment 6401 1521 2490 3589 7682 6963 6469 6429 6745 15822 4969Sale of titled vehicles 380 465 264 469 428 272 405 235 273 338 766Sale of farm land 2883 7470 9 953 4201 - 462 887 3460 5779 7914Sale of farm buildings 1145 - 17 - 720 1827 - 982 2423 1502 4706Sale of other farm assets 140 51 81 49 68 228 27 45 680 15 102Sale of nonfarm assets 1178 756 245 1353 1373 3019 353 1232 275 778 2764Purchase of breeding livestock -10491 -17042 -8712 -11153 -9442 -3745 -9520 -12962 -10075 -12857 -9849Purchase of machinery & equip. -48556 -33176 -26478 -51654 -64307 -55964 -54862 -40885 -45210 -71023 -32830Purchase of titled vehicles -3423 -2847 -2196 -4098 -6044 -3336 -3075 -1664 -3761 -1703 -5543Purchase of farm land -23329 -7006 -10628 -20561 -31682 -34438 -11027 -24597 -15969 -45455 -28947Purchase of farm buildings -28009 -24432 -14513 -25231 -26092 -28779 -15767 -44933 -26409 -42366 -28071Purchase of other farm assets -1275 -887 -957 -4914 -1183 -634 -420 -1201 -875 -347 -114Purchase of nonfarm assets -5301 -4434 -5739 -4850 -16992 -3578 -3967 -3214 -3170 -2312 -2920Cash provided by investing -105891 -77769 -64391 -113898 -140617 -115902 -89421 -116108 -86250 -149532 -85259

Statement Of Cash Flows

$300,000$350,000$400,000$450,000$500,000$550,000$600,000$650,000$700,000$750,000$800,000$850,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Gross Income & Expenses

Gross cash farm income Total cash farm expense

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 1084 83 104 133 123 101 103 124 121 110 82

Principal payments -177891 -212905 -114836 -147463 -201049 -118884 -153897 -147935 -145438 -285684 -288444Personal income 17248 10245 15385 13356 15048 18754 20011 19800 18001 18591 24210Family living/owner withdrawals -43210 -15386 -25923 -40789 -44840 -47354 -51907 -50324 -46106 -49577 -55174Income and social security tax -2273 -2515 -2284 -2291 -1910 -3100 -2556 -2520 -2304 -1766 -1409Capital contributions 803 675 85 232 419 635 739 758 1588 1697 1341Capital distributions -1042 -3000 -7 -1 - -1980 - - -902 -5185 - Dividends paid -56 - - -67 -202 -41 - -2 - - -275Cash gifts and inheritances 1600 889 1471 622 811 885 2001 819 24 6404 2699Gifts given -204 -74 -490 -119 -73 -269 -315 -123 -233 -234 -130Other cash flows - - - - - - - - - - - Cash provided by financing 11861 40456 -11545 -7584 30609 20535 -14723 14005 11149 44585 -7353

Net change in cash balance 914 -2184 3123 1891 8590 855 6542 -5193 -2130 -4908 2686Ending cash (farm & nonfarm) 32768 19665 20013 20316 38746 33340 40430 34856 36167 40013 45218Discrepancy 4664 25356 19660 6137 183 233 -287 36 664 -33 -83

Statement Of Cash Flows (Farms Sorted By Years)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Comparisons from Statement of Cash Flows

Money borrowed Principal payments

Family living/owner withdrawals

All Farms Low 20% 20 - 40% 40 - 60% 60 - 80% High 20%Number of farms 82 16 16 17 16 17

Acreage Summary Total acres owned 233 376 167 135 235 255 Total crop acres 378 735 267 214 264 416 Crop acres owned 194 317 169 68 139 279 Crop acres cash rented 184 418 99 146 125 137 Crop acres share rented 0 - - 0 - - Total pasture acres 30 29 24 20 21 55 Percent crop acres owned 51% 43% 63% 32% 53% 67%

Mach invest/crop acre cost 835 593 682 595 688 1543 Mach invest/crop acre market 1265 1234 1185 828 987 1756

Average Price Received (Cash Sales Only) Corn per bushel 3.41 - - 3.49 - - Soybeans per bushel 8.85 - - - - - Wheat Winter per bushel 4.42 - - - - -

Average Yield Per Acre Corn (bushel) 181.44 178.01 - - 198.99 - Corn Silage (ton) 26.28 - - - - - Hay Alfalfa (ton) 6.11 - - - - - Soybeans (bushel) 44.15 - - - 48.8 -

Crop Production and Marketing Summary (Farms Sorted By Net Farm Income)

319305

268289

306

340

277289

305

248

343

378

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Crop Acres

Total crop acres Total crop acres owned

Total crop acres cash rented

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of farms 1084 83 104 133 123 101 103 124 121 110 82

Operator Information Average number of operators 1.4 1.4 1.3 1.3 1.3 1.2 1.4 1.4 1.4 1.4 1.5 Average age of operators 43.2 40.7 44 42.3 42 41.7 43.5 43.9 43.4 44.2 45.8 Average number of years farming 18.8 17.2 19.9 18.4 18.3 17.1 18.3 18.7 18.5 19.9 21.5

Results Per Operator Working capital 81838 54082 69344 77893 122711 93421 103836 73432 76870 74083 65347 Total assets (market) 1451151 1123505 1137918 1270861 1487371 1282663 1261100 1405932 1463945 1987983 2082575 Total liabilities 649558 560969 491187 592918 648735 541910 517643 595891 669322 908412 978712 Net worth (market) 801593 562537 646731 677943 838636 740753 743457 810042 794624 1079571 1103863 Net worth excl deferred liabs 905961 648608 722104 772354 944625 815252 815524 926984 917059 1208613 1263913

Gross farm income 438213 332592 358895 471822 524594 376987 434547 382195 385226 574797 512886 Total farm expense 393400 320019 303445 374634 440677 331815 356372 364408 364180 548681 518445 Net farm income from operations 44813 12573 55450 97187 83917 45173 78175 17787 21046 26117 -5558

Net nonfarm income 12676 7206 11852 10268 11425 15153 14566 13678 13281 13194 16272 Family living & tax withdrawals 36890 30426 36875 37837 35788 40988 39436 36543 36219 36400 38160

Total acres owned 141.4 138.6 144.4 140 142 134.8 122.3 135.5 141.9 158.9 156.3 Total crop acres 224 190.2 222.5 235.1 257.8 223.5 213.8 215.1 182.9 243.6 253.9 Crop acres owned 89.1 82.6 83.9 94.8 91.4 92 75.7 70.1 83.2 95.5 130.2 Crop acres cash rented 133.7 106.8 138.3 139.4 165.2 131.2 129.4 144.6 99.7 148.2 123.6 Crop acres share rented 1.2 0.7 0.3 0.8 1.1 0.4 8.8 0.4 - - 0 Total pasture acres 19.7 7.1 15.8 16.3 18.8 25.5 27.8 24.9 20 18.5 20.3

Operator and Labor Information (Farms Sorted By Years)

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 1084 83 104 133 123 101 103 124 121 110 82Labor AnalysisNumber of farms 1007 64 103 128 115 82 78 124 121 110 82Total unpaid labor hours 3309 3663 3396 3501 3353 3029 3670 3205 3186 2955 3317Total hired labor hours 4202 5629 3789 4216 4489 2912 3350 3461 2924 5888 6025Total labor hours per farm 7511 9292 7184 7718 7842 5942 7020 6666 6110 8843 9342Unpaid hours per operator 2422 2548 2610 2700 2571 2412 2590 2214 2351 2097 2230Value of farm production / hour 62.08 43.26 51.44 62.78 65.97 61.73 67.43 64.5 67.44 69.66 60.5Net farm income / unpaid hour 18.48 5.2 21.4 36.84 31.5 20.32 32.07 8.03 8.95 12.46 -2.49Average hourly hired labor wage 12.93 9.89 9.77 10.5 11.23 12.41 14.3 14.8 14.27 15.76 15.4

Partnerships & LLCsNumber of farms 219 12 11 18 17 15 24 34 30 35 23 Number of operators 2 2.4 2.5 2.2 2.2 1.9 1.9 2 1.7 1.8 2.3 Owner withdrawals per farm 69667 - - - - - - 68692 - 48060 86154 Withdrawals per operator 33440 - - - - - - 32711 - 25075 38291

CorporationsNumber of farms 22 2 2 1 2 3 3 2 2 4 1 Number of operators 1.6 - - - - - - - - - -

Operator and Labor Information (Farms Sorted By Years)

-$2.49

$15.40

-5

0

5

10

15

20

25

30

35

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Hired Wages vs. Net Farm Income/Unpaid Labor Hours

Net farm income / unpaid hour Average hourly hired labor wage

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 1084 83 104 133 123 101 103 124 121 110 82Nonfarm Income Personal wages & salary 12302 7448 12057 10113 11087 12159 15005 11256 14196 13555 16783Net nonfarm business income 995 188 616 455 583 2191 1622 2208 229 778 1111 Personal rental income 481 227 254 360 541 757 679 620 410 477 451 Personal interest income 175 236 231 211 222 334 79 140 53 69 213 Personal cash dividends 138 106 139 58 177 41 20 170 467 41 109 Tax refunds 1333 1504 1338 1383 1070 1269 1409 1160 1852 1048 1328 Other nonfarm income 1823 536 749 778 1367 2002 1196 4246 795 2624 4214Total nonfarm income 17248 10245 15385 13356 15048 18754 20011 19800 18001 18591 24210Gifts and inheritances 1600 889 1471 622 811 885 2001 819 24 6404 2699Nonfarm Assets (market) Checking & savings 7168 3534 5689 3568 4387 6681 9940 8115 7535 10864 12922 Stocks & bonds 6694 6371 5255 2650 2378 2794 1568 10232 13053 14925 7343 Other current assets 652 213 381 240 177 1835 527 466 928 720 1310 Furniture & appliances 6710 8755 7053 5318 6248 7684 7242 6739 7242 5541 6032 Nonfarm vehicles 8101 5178 7335 8233 6777 8688 9143 9503 9954 7750 7383 Cash value of life ins. 5553 3662 3469 3579 4608 5967 6316 5583 6647 10107 5497 Retirement accounts 27596 9867 11481 13038 19802 23359 26866 37514 44406 31647 62179 Other intermediate assets 2945 984 1021 1042 913 2227 2362 3991 5142 4990 7558 Nonfarm real estate 32256 16609 23858 26555 47799 25323 25879 55742 30003 25957 37481 Personal bus. investment 433 - - 450 772 1110 354 858 207 - 427 Other long term assets 2867 3620 2938 1301 1576 1797 1699 1673 - 227 18860Total nonfarm assets 100976 58795 68480 65973 95436 87465 91896 140416 125117 112729 166991Nonfarm Liabilities Accrued interest 38 5 4 1 84 214 24 12 5 17 24 Accounts payable 383 625 265 364 367 629 554 306 183 321 315 Current notes 1300 1442 1383 944 1308 1426 2158 1245 1349 942 875 Princ due on term debt 1689 1212 1382 1367 1896 1333 1978 2173 1627 2074 1689Total current liabilities 3413 3283 3035 2676 3655 3602 4714 3752 3180 3354 2904Intermediate liabilities 3916 2610 3810 4113 2468 4578 4615 4691 3816 5049 2992Long term liabilities 9662 6035 6157 7681 20003 8760 10673 10860 6194 8979 9539Total nonfarm liabilities 16991 11928 13002 14469 26126 16940 20002 19304 13189 17382 15434Nonfarm net worth 83985 46866 55478 51504 69310 70525 71893 121112 111928 95347 151557Nonfarm debt to asset ratio 17% 20% 19% 22% 27% 19% 22% 14% 11% 15% 9%

Nonfarm Summary(Farms Sorted By Years)

Crop Reports The Crop Enterprise Analysis tables show the average physical production, gross return, direct costs, overhead costs, and net returns per acre. There are potentially three reports for each crop, owned, cash rented and share crop rented acres. There may not be enough observations (a minimum of three is required) for each of these types of farmed acres. This year’s reports show only rented and owned land. Farms are classified into low to high by increments of 20% on the basis of net return per acre. Some reports do not meet the minimums to populate all increments. The classification is done separately for each table.

There are eight general sections to each report which are outlined as follows.

Number of farms and fields included for each crop.

Gross Return per Acre includes the value of the crop produced (gross receipts from producing each crop) plus any other income directly associated with production of the crop, including hedging gains or losses, crop insurance proceeds and any disaster payments that might have been received. It does not include government payments that are decoupled from production such as ARC and PLC payments (see Net Return with Government Payments).

The Value per Unit is assigned by the producer. For cash crops, the value is based on the actual sales price for production sold or contracted before year-end and the inventory value for crops still in inventory at year-end. The local harvest-time price is used for forages and other feed crops. In many cases these crops were fed to livestock owned by the farm. The gross returns reflect the value of production if sold not their value as feed fed.

Direct expenses represent the costs that were incurred to grow the crop. Most direct expenses are directly assigned to production of the crop and simply divided by acres. Some, such as Fuel and Oil and Repairs, which are difficult to assign directly to specific crops are determined by allocating the total annual expenses across all enterprises using allocation factors entered for each crop.

Overhead expenses represent the portion of the general overhead expenses that were allocated to this crop. No perfect system exists for allocating these costs, but these allocations are believed to be representative of the costs for this crop.

Net Return per Acre is the amount contributed toward operator labor, management, and equity capital. Any wages and benefits paid to the operator are removed from labor costs (and added to Labor and Management Charge) so that all farms are on equal footing. Land costs include land rent on the rented land pages but only actual interest paid and real estate taxes on owned land. For this reason, net returns from owned and rented land should not be compared.

Net Return with Government Payments is the net return per acre after decoupled government payments such as ARC and PLC payments have been added. These payments are generally allocated evenly per acre across all crops except vegetables and pasture.

Net Return Over Labor and Management is the return, including government payments, remaining after deducting an opportunity cost for unpaid operator labor and management. This is the per acre return to equity capital.

Estimated labor hours per acre is calculated by allocating the farmer’s estimate of total operator and hired labor hours for the year across all enterprises.

Cost of Production shows the average cost per unit produced in each cost category.

- Total Direct and Overhead Expense per Unit is the breakeven price needed to cover cashcosts and depreciation.

- Less Government and Other Income is the breakeven price if government payments andany miscellaneous income are used to offset some expenses.

- With Labor and Management is the breakeven price to provide a labor andmanagement return for the operator(s).

- Machinery Cost per Acre includes fuel and oil, repairs, custom hire, machinery leasepayments, machinery depreciation, and interest on intermediate debt.

There are enough observations for some crops to show the amount of variation that exists in the costs and returns. In these cases, it clearly shows that costs are the primary variable that affects net returns – production and prices are generally similar for the high, mid and low profit farms.

All Farms 40 - 60% High 20% All Farms 40 - 60% High 20%Number of farms 22 5 5 22 5 5Acres 269.53 442.62 122.99 269.53 444 277.4Yield per acre (bu.) 181.44 176 206.9 181.44 184.23 166.1Operators share of yield % 100 100 100 100 100 100Value per bu. 3.39 3.31 3.4 3.39 3.32 3.32Other product return per acre 18.73 17.8 45.32 18.73 16.98 4.33Total product return per acre 634.54 600.09 748.15 634.54 628.01 555.39Crop insurance per acre 0.05 0.14 - 0.05 - - Other crop income per acre 2.17 - 0.65 2.17 0.21 - Gross return per acre 636.76 600.23 748.81 636.76 628.23 555.39Direct Expenses Seed 109.94 105.03 102.98 109.94 104.37 162.3 Fertilizer 100.86 82.33 62.94 100.86 89.76 100.87 Crop chemicals 31.15 30.9 37.83 31.15 30.2 34.02 Cover crop expense 1.53 - - 1.53 - - Crop insurance 8.07 2.32 9.34 8.07 2.3 0.7 Drying expense 8.43 2.25 1.33 8.43 6.43 - Storage 0.66 0.91 1.46 0.66 0.11 0.72 Fuel & oil 35.08 43.7 27.74 35.08 45.04 45.09 Repairs 46.31 43.38 35.24 46.31 44.93 56.11 Custom hire 26.61 11.08 15.33 26.61 10.48 64.61 Hired labor 13.39 13.23 7.85 13.39 13.19 18.48 Land rent 106.28 79.68 84.4 106.28 86.18 101.86 Machinery leases 3.87 0.55 15.43 3.87 0.54 8.85 Utilities 3.1 2.9 5.02 3.1 2.89 1.75 Hauling and trucking 9.34 19.64 - 9.34 24.48 - Marketing 0.62 0.1 1.94 0.62 0.14 0.3 Operating interest 13.05 7.42 18.31 13.05 6.68 25.41 Miscellaneous 1.64 1.15 - 1.64 1.53 3.09Total direct expenses per acre 519.94 446.55 427.13 519.94 469.25 624.14Return over direct exp per acre 116.82 153.68 321.67 116.82 158.98 -68.75

Crop Enterprise Analysis

Corn

Crop Enterprise Analysis (Farms Sorted By Cost of Production) (Farms Sorted By Net Return)

Corn

Seed 21%

Fertilizer 20%

Crop chemicals 6%

Crop insurance 1%

Drying expense 2%

Fuel & oil 7%

Repairs 9%

Custom hire 5%

Hired labor 3%

Land rent 21%

Machinery leases 1%

Hauling and trucking

2%Operating interest

2%

Direct Corn Expenses

All Farms 40 - 60% High 20% All Farms 40 - 60% High 20%

Number of farms 22 5 5 22 5 5Overhead Expenses Hired labor 9.43 8.42 5.37 9.43 3.7 2.89 Machinery leases 0.58 - - 0.58 - - Building leases 0.35 0.54 0.61 RE & pers. property taxes 7.56 13.97 8.09 7.56 14.33 4.5 Farm insurance 8.9 8.22 8.94 8.9 7.58 6.45 Utilities 1.43 0.65 2.73 1.43 1.06 0.35 Dues & professional fees 2.45 1.39 4.2 2.45 1.91 2.54 Interest 37.94 39.53 5.58 37.94 41.51 79.3 Mach & bldg depreciation 86.89 110.74 63.25 86.89 114.53 104.86 Miscellaneous 9.93 1.42 22.68 9.59 6.31 8.07Total overhead expenses per acre 165.11 184.34 120.84 165.11 191.47 209.58Total dir & ovhd expenses per acre 685.05 630.89 547.98 685.05 660.72 833.72Net return per acre -48.29 -30.66 200.83 -48.29 -32.49 -278.33

Government payments 3.11 - 0.09 3.11 6.4 1.08Net return with govt pmts -45.17 -30.66 200.92 -45.17 -26.09 -277.25Labor & management charge 43.86 45.74 58.56 43.86 46.51 22.93Net return over lbr & mgt -89.03 -76.4 142.36 -89.03 -72.6 -300.17

Cost of ProductionTotal direct expense per bu. 2.87 2.54 2.06 2.87 2.55 3.76Total dir & ovhd exp per bu. 3.78 3.58 2.65 3.78 3.59 5.02Less govt & other income 3.64 3.48 2.43 3.64 3.46 4.99With labor & management 3.88 3.74 2.71 3.88 3.71 5.12

Net value per unit 3.39 3.31 3.4 3.39 3.32 3.32Machinery cost per acre 213.04 233.29 130.41 213.04 241.46 313.73Est. labor hours per acre 3.8 2.58 5.32 3.8 2.62 2.46

Corn Corn(Farms Sorted By Net Return)

Crop Enterprise Analysis Crop Enterprise Analysis (Farms Sorted By Cost of Production)

2.87

3.78 3.643.88

$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50

Total direct expenseper bu.

Total dir & ovhd expper bu.

Less govt & otherincome

With labor &management

Corn Cost of Production

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 386 18 48 65 54 41 44 38 31 25 22

Acres 168.14 144.97 133.84 148.98 151.44 185.43 165.86 201.26 173.93 165.39 269.53Yield per acre (bu.) 153.72 135.49 162.39 152.52 125.7 128.34 155.22 158.19 170.23 184.42 181.44Operators share of yield % 99.82 100 99.71 99.59 99.32 99.79 100 100 100 100 100Value per bu. 4.36 3.75 4.49 5.78 6.77 4.52 3.72 3.47 3.35 3.2 3.39Other product return per acre 7.51 13.09 3.08 3.64 6.23 6.02 4.18 6.91 7.39 16.33 18.73Total product return per acre 676.27 521.1 730.54 881.81 851.83 584.96 581.9 556.01 577.96 606.26 634.54Hedging gains/losses per acre 0.39 - - 0.83 - 0.32 1.66 0.2 0.3 - - Crop insurance per acre 24.14 3.17 0.78 - 69.33 71.24 31.15 15.37 0.82 22.96 0.05LDP income per acre 0.02 - 0.15 0.03 - - - - - - - Other crop income per acre 1.41 1.51 0.5 0.79 0.04 1.29 0.16 3.91 0.69 4.6 2.17Gross return per acre 702.23 525.79 731.97 883.46 921.19 657.8 614.87 575.49 579.77 633.82 636.76

Direct Expenses Seed 88.46 69.23 74.89 76.06 89.29 78.86 106.82 91.96 94.52 89.12 109.94 Fertilizer 112.26 78.32 97.13 114.4 129.25 120.31 130.39 116.83 114.6 76.6 100.86 Crop chemicals 34.61 31.58 39 32.27 32.35 25.26 39.22 33.77 44.79 42.01 31.15 Cover crop expense 0.14 - - - - - - - - - 1.53 Crop insurance 14.16 15.51 8.13 18.29 16.06 15.01 17.41 14.44 10.42 15.05 8.07 Drying expense 12.91 12.32 5.33 11.7 8.37 19 27 9.74 8.24 19.22 8.43 Storage 2.01 0.7 5.06 2.11 1.02 1.18 1.34 2.23 3.94 1.48 0.66 Fuel & oil 27.32 22.74 24.85 29.1 31.82 22.45 32.85 24.79 22.41 20.18 35.08 Repairs 39.01 28.31 27.3 39.59 32.59 40 38.92 46.79 38.87 48.9 46.31 Custom hire 21.94 9.24 27.05 22.81 22.84 18.54 15.12 16.75 25.66 34.5 26.61 Hired labor 11.62 17.36 10.73 6.89 2.34 19.64 12.71 14.71 8.74 17.6 13.39 Land rent 84.66 62.82 69.07 70.07 81.18 78.37 97.86 100.13 79.51 99.07 106.28 Machinery leases 2.45 0.42 1.56 1.26 5.87 5.43 0.11 2.2 0.36 1 3.87 Utilities 3.21 4.53 3.9 2.56 1.66 3.37 3.3 3.44 3.56 4.71 3.1 Hauling and trucking 5.21 1.42 9.6 4.79 3.74 3.04 6.26 2.96 5.12 5.16 9.34 Marketing 2.4 0.03 0.28 1.85 2.28 2.86 6.69 2.99 2.49 1.55 0.62 Operating interest 6.86 8.4 4.85 6.01 4.91 6.46 7.52 4.95 6.67 9.34 13.05 Miscellaneous 2.59 0.88 3.69 2.65 2.16 0.85 1.09 5.82 4.34 1.57 1.64Total direct expenses per acre 471.8 363.82 412.42 442.39 467.74 460.61 544.61 494.48 474.24 487.05 519.94Return over direct exp per acre 230.43 161.97 319.55 441.07 453.45 197.19 70.25 81.02 105.52 146.78 116.82

Crop Enterprise Analysis(Farms Sorted By Years)

Corn

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 386 18 48 65 54 41 44 38 31 25 22Overhead Expenses

Hired labor 5.01 0.81 0.62 11.51 25.39 -10.21 1.07 0.17 1.64 0.86 9.43 Machinery leases 0.58 9.34 0.11 0.49 0.12 0.13 0.08 0.02 0.04 0.33 0.58 Building leases 0.22 - 0.15 0.2 0.1 0.09 0.22 0.23 0.53 0.47 0.35 RE & pers. property taxes 5.95 1.66 3.78 7.25 6.92 5.58 4.94 4.3 7.43 8.39 7.56 Farm insurance 7.07 6.25 6.95 5.61 7.52 6.39 6.51 6.59 8.43 8.98 8.9 Utilities 1.34 0.19 1.13 2.37 2.99 0.8 0.7 0.48 1.1 0.64 1.43 Dues & professional fees 2.78 3.41 1.49 2.65 2.88 3.98 2.3 2.92 3.06 2.95 2.45 Interest 18.09 8.01 15.47 17.01 18.23 11.45 15.17 15.28 22.23 19.42 37.94 Mach & bldg depreciation 50.51 27.01 33.94 36.06 47.24 49.06 69.08 52.04 47.83 49.87 86.89 Miscellaneous 10.41 24.44 9.4 8.85 8.39 8.55 9.68 7.66 18.25 11.45 9.59Total overhead expenses per acre 101.96 81.11 73.06 92 119.77 75.83 109.74 89.7 110.54 103.37 165.11Total dir & ovhd expenses per acr 573.76 444.93 485.47 534.39 587.52 536.44 654.36 584.17 584.78 590.41 685.05Net return per acre 128.47 80.86 246.49 349.07 333.68 121.36 -39.49 -8.68 -5.02 43.41 -48.29

Government payments 14.63 12.2 13.1 14.58 15.14 12.67 0.89 37.09 26.27 5.38 3.11Net return with govt pmts 143.11 93.06 259.6 363.65 348.81 134.03 -38.6 28.41 21.25 48.79 -45.17Labor & management charge 48.33 33.05 38.78 45.01 42.57 50.3 52.64 51.85 63.91 60.39 43.86Net return over lbr & mgt 94.77 60.01 220.82 318.64 306.24 83.74 -91.24 -23.44 -42.67 -11.59 -89.03

Cost of ProductionTotal direct expense per bu. 3.07 2.69 2.55 2.91 3.75 3.6 3.51 3.13 2.79 2.64 2.87Total dir & ovhd exp per bu. 3.74 3.28 3 3.52 4.71 4.19 4.22 3.69 3.44 3.2 3.78Less govt & other income 3.43 3.06 2.89 3.39 3.98 3.47 3.97 3.29 3.23 2.93 3.64With labor & management 3.74 3.31 3.13 3.68 4.32 3.87 4.31 3.62 3.6 3.26 3.88

Net value per unit 4.36 3.75 4.49 5.79 6.77 4.52 3.73 3.47 3.35 3.2 3.39Machinery cost per acre 144.65 95.89 119.42 131.87 140.01 136.21 158.81 144 140.79 152.38 213.04Est. labor hours per acre 4.63 7.18 5.65 4.32 4.24 4.63 4.57 4.06 5.03 4.72 3.8

Corn

Crop Enterprise Analysis(Farms Sorted By Years)

All FarmsNumber of farms 12Acres 113.88 Overhead ExpensesYield per acre (bu.) 44.15 Hired labor 7.29Operators share of yield % 100 Machinery leases 0.32Value per bu. 8.88 Building leases 0.52Total product return per acre 392.22 RE & pers. property taxes 4.27Crop insurance per acre 7.36 Farm insurance 5.99Other crop income per acre 43.47 Utilities 1.34Gross return per acre 443.05 Dues & professional fees 2.1

Interest 16.58Direct Expenses Mach & bldg depreciation 40.26 Seed 65.48 Miscellaneous 9.66 Fertilizer 19.64 Total overhead expenses per acre 88.34 Crop chemicals 36.47 Total dir & ovhd expenses per acre 381.86 Crop insurance 12.63 Net return per acre 61.18 Drying expense 0.36 Storage 0.25 Government payments 22.69 Fuel & oil 13.94 Net return with govt pmts 83.87 Repairs 29.87 Labor & management charge 27.94 Custom hire 11.53 Net return over lbr & mgt 55.93 Hired labor 4.36 Land rent 83.73 Cost of Production Machinery leases 2.72 Total direct expense per bu. 6.65 Utilities 1.04 Total dir & ovhd exp per bu. 8.65 Hauling and trucking 3.24 Less govt & other income 6.98 Marketing 1.36 With labor & management 7.62 Operating interest 5.56 Miscellaneous 1.34 Net value per unit 8.88Total direct expenses per acre 293.52 Machinery cost per acre 94.86Return over direct exp per acre 149.53 Est. labor hours per acre 2.91

Crop Enterprise AnalysisSoybeans

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Total direct expenseper bu.

Total dir & ovhd expper bu.

Less govt & otherincome

With labor &management

6.65

8.65

6.987.62

Soybean Cost of Production

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 200 7 21 26 31 22 21 22 22 16 12

Acres 125.61 79.03 122.84 139.52 104.88 99.97 149.75 159.19 110.55 154.15 113.88Yield per acre (bu.) 45.81 34.9 49.94 47.47 40.45 39.89 43.4 44.48 60.36 45.34 44.15Operators share of yield % 100 100 100 100 100 100 100 100 100 100 100Value per bu. 10.45 9.94 10.21 11.62 13.34 12.35 10.12 8.86 9.36 9.05 8.88Other product return per acre 0.45 4.03 - 0.96 - 1.91 - 0.2 0.25 - - Total product return per acre 479.21 350.83 509.6 552.33 539.6 494.61 439.28 394.24 565.09 410.42 392.22Hedging gains/losses per acre 0.81 - - - - 0.85 5.09 - 1.04 - - Crop insurance per acre 12.16 - 0.49 4.64 31.29 25.46 7.16 25.25 - 3.51 7.36Other crop income per acre 4.16 2.84 0.01 0.48 - - - 4.4 1.15 9.54 43.47Gross return per acre 496.34 353.67 510.11 557.45 570.89 520.91 451.53 423.89 567.27 423.47 443.05

Direct Expenses Seed 55.44 53.96 50.32 46.05 47.02 52.88 67.29 59.21 61.16 56.68 65.48 Fertilizer 48.72 0.76 29.79 53.37 52 61.16 65.41 53.25 49.98 44.14 19.64 Crop chemicals 25.56 16.65 25.93 27.85 20.37 21.77 24.39 24.21 31.97 25.09 36.47 Crop insurance 11.89 14.55 9.43 17.07 12.61 12.19 11.59 13.57 8.69 5.82 12.63 Drying expense 0.49 0.77 - 0.13 0.01 0.21 1.69 1.36 0.02 0.15 0.36 Fuel & oil 14.57 13.58 14.55 15.43 16.73 12.75 17.45 12.7 13.63 12.52 13.94 Repairs 22.41 16.68 16.44 24.47 20.23 17.23 19.42 23.56 24 30.86 29.87 Custom hire 12.2 3.28 13.03 11.4 9.93 9.08 6.77 11.29 17.58 23.57 11.53 Hired labor 9.21 4.31 5.58 3.63 3.26 22.8 10.21 12.65 8.59 15.23 4.36 Land rent 87.91 57.08 65.75 84.51 87.78 81.51 97.19 105.47 92.51 89.84 83.73 Machinery leases 1.57 - 1.75 1.23 1.85 1.05 0.04 4.92 0.46 - 2.72 Utilities 2.5 4.91 2.86 1.01 0.71 4.6 2.96 2.94 3.24 3.14 1.04 Hauling and trucking 3.05 1.92 6.59 2.06 2.21 3.62 3.61 1.38 4.35 1.96 3.24 Marketing 1.69 0.35 0.38 1.65 0.73 1.93 2.53 1.52 3.74 1.84 1.36 Operating interest 5.16 6.03 3.82 3.69 2.96 4.13 5.73 5.29 7.17 9.27 5.56 Miscellaneous 2.02 2.45 1.97 1.33 2.6 1.06 1.28 2.59 4.28 1.24 1.59Total direct expenses per acre 304.41 197.3 248.2 294.88 280.98 307.99 337.56 335.9 331.38 321.36 293.52Return over direct exp per acre 191.93 156.37 261.9 262.57 289.91 212.92 113.97 87.99 235.9 102.12 149.53

Crop Enterprise Analysis(Farms Sorted By Years)

Soybeans

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 200 7 21 26 31 22 21 22 22 16 12

Overhead Expenses Hired labor 2.07 1.5 0.68 4.34 9.7 -7.77 1.49 0 1.87 0.05 7.29 Machinery leases 0.23 7.3 0.02 0.21 0.07 0 0.04 0.01 0.03 - 0.32 Building leases 0.16 - - - - 0.12 0.16 0.1 0.4 0.43 0.52 RE & pers. property taxes 4.56 1.81 5 3.83 3.53 3.19 6.48 2.18 6.54 7.49 4.27 Farm insurance 5 1.29 6.23 4.83 4.27 4.57 4.23 4.59 6.17 5.99 5.99 Utilities 0.78 0.16 0.45 1.56 1.45 0.58 0.63 0.25 0.67 0.16 1.34 Dues & professional fees 1.8 0.85 1.01 1.71 1.88 2.29 1.28 2.3 1.95 2.05 2.1 Interest 14.96 2.62 12.12 10.52 13.02 9.85 16.08 17.56 11.71 31.52 16.58 Mach & bldg depreciation 32.54 13.16 23.43 22.55 29.93 34.29 44.47 39.72 32.13 33.66 40.26 Miscellaneous 6.27 18.23 5.53 5.02 5.71 6.04 5.99 4.25 7.91 6.88 9.66Total overhead expenses per acre 68.36 46.91 54.47 54.56 69.57 53.16 80.84 70.96 69.39 88.24 88.34Total dir & ovhd expenses per acr 372.76 244.21 302.68 349.44 350.55 361.15 418.4 406.86 400.76 409.59 381.86Net return per acre 123.58 109.46 207.43 208.01 220.34 159.76 33.13 17.04 166.51 13.88 61.18

Government payments 13.68 10.5 14.35 8.78 9.59 9.53 - 31.67 25.73 5.02 22.69Net return with govt pmts 137.26 119.97 221.78 216.79 229.93 169.29 33.13 48.71 192.24 18.9 83.87Labor & management charge 32.84 21.02 31.64 35.59 27.95 32.63 33.19 33.33 38.47 35.35 27.94Net return over lbr & mgt 104.42 98.94 190.15 181.2 201.98 136.66 -0.06 15.38 153.76 -16.45 55.93

Cost of ProductionTotal direct expense per bu. 6.65 5.65 4.97 6.21 6.95 7.72 7.78 7.55 5.49 7.09 6.65Total dir & ovhd exp per bu. 8.14 7 6.06 7.36 8.67 9.05 9.64 9.15 6.64 9.03 8.65Less govt & other income 7.46 6.5 5.76 7.05 7.66 8.11 9.36 7.76 6.17 8.64 6.98With labor & management 8.17 7.1 6.4 7.8 8.35 8.92 10.12 8.51 6.81 9.41 7.62

Net value per unit 10.47 9.94 10.21 11.62 13.34 12.37 10.24 8.86 9.37 9.05 8.88Machinery cost per acre 84.18 53.56 71.59 76.12 79.57 75.61 90.22 93.02 89.95 97.89 94.86Est. labor hours per acre 2.73 2.25 3.08 2.63 2.45 2.88 2.52 2.36 3.27 3.04 2.91

Soybeans

Crop Enterprise Analysis(Farms Sorted By Years)

All FarmsNumber of farms 12

Acres 179.73 Overhead ExpensesYield per acre (ton) 6.11 Hired labor 11.49Operators share of yield % 100 Building leases 0.47Value per ton 160.01 RE & pers. property taxes 10.21Other product return per acre 0.19 Farm insurance 8.45Total product return per acre 978.08 Utilities 2.58Gross return per acre 978.08 Dues & professional fees 2.85

Interest 50.44Direct Expenses Mach & bldg depreciation 103.29 Fertilizer 51.68 Miscellaneous 13.74 Crop chemicals 2.51 Total overhead expenses per acre 203.52 Crop insurance 0.52 Total dir & ovhd expenses per acre 516.14 Fuel & oil 42.53 Net return per acre 461.94 Repairs 48.57 Custom hire 38.57 Government payments - Hired labor 11.82 Net return with govt pmts 461.94 Land rent 79.14 Labor & management charge 40.62 Machinery leases 4.46 Net return over lbr & mgt 421.32 Utilities 1.25 Hauling and trucking 9.28 Cost of Production Operating interest 20.98 Total direct expense per ton 51.15 Miscellaneous 1.29 Total dir & ovhd exp per ton 84.45Total direct expenses per acre 312.62 Less govt & other income 84.42Return over direct exp per acre 665.46 With labor & management 91.07

Net value per unit 160.01Machinery cost per acre 257.37Est. labor hours per acre 4.37

Hay Alfalfa(Farms Sorted By Cost of Production)

Crop Enterprise Analysis

$0.00$10.00$20.00$30.00$40.00$50.00$60.00$70.00$80.00$90.00

$100.00

Total direct expenseper ton

Total dir & ovhd expper ton

Less govt & otherincome

With labor &management

51.15

84.45 84.4291.07

Alfalfa Cost of Production

All Farms 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 232 34 32 26 22 37 28 22 18 12

Acres 104.69 92.79 99.91 79.51 88.55 106.99 115.19 102.87 124.21 179.73Yield per acre (ton) 5.11 4.46 4.48 5.1 5.54 4.9 5.3 5.44 5.38 6.11Operators share of yield % 100 100 100 100 100 100 100 100 100 100Value per ton 146.53 100.97 121.9 174.22 188.51 159.61 147.72 134.99 142.15 160.01Other product return per acre 0.66 - 0.56 6.29 - 0.23 - - - 0.19Total product return per acre 749.06 449.97 546.97 894.95 1044.02 782.3 782.6 733.86 764.47 978.08Crop insurance per acre 0.13 - - 1.48 - - - - - - LDP income per acre 0.13 0.69 0.3 - - - - - - - Other crop income per acre 0.67 1.11 - 4.74 - 0.22 0.34 0.4 - - Gross return per acre 749.98 451.77 547.27 901.17 1044.02 782.52 782.94 734.25 764.47 978.08

Direct Expenses Seed 3.24 8.84 2.74 4.32 6.13 2.94 2.06 0.24 1.04 - Fertilizer 60.47 45.38 52.52 63.98 64.56 72.14 69.17 55.67 68.58 51.68 Crop chemicals 3.49 2.83 5.23 2.72 1.57 1.73 6.93 4.28 2.78 2.51 Crop insurance 0.65 0.04 1.51 0.75 0.52 0.18 0.2 1.06 1.54 0.52 Fuel & oil 40.05 38.84 45.85 55.09 46.09 43.49 33.27 26.83 29.98 42.53 Repairs 55.38 50.11 61.35 60.56 64.99 49.41 59.51 51.97 56.32 48.57 Custom hire 51.31 24.31 32.59 85.34 18.53 52.99 72.66 49.08 95.87 38.57 Hired labor 17.96 18.78 13.26 16.15 16.53 21.38 21.61 18.23 21.45 11.82 Land rent 61.37 65.76 59.82 49.53 53.18 55.99 65.81 56.53 68.19 79.14 Machinery leases 1.51 0.95 1.03 1.19 - 1.67 2.83 0.29 0.91 4.46 Utilities 2.98 2.58 2.98 2.35 2.74 3.68 3.36 3.27 4.01 1.25 Hauling and trucking 1.42 0.24 - - 1.57 2.38 - 0.1 0.49 9.28 Marketing 0.16 - - - - 0.71 0.01 0.2 0.18 0.09 Operating interest 5.8 2.92 1.92 2.8 2.44 2.25 4.2 3.62 17.35 20.98 Miscellaneous 3.23 6.95 3.85 3.35 1.17 2.14 4.31 3.29 1.2 1.2Total direct expenses per acre 309.04 268.53 284.66 348.14 280.02 313.08 345.95 274.66 369.89 312.62Return over direct exp per acre 440.94 183.24 262.61 553.03 764.01 469.44 437 459.6 394.58 665.46

Crop Enterprise Analysis(Farms Sorted By Years)

Hay Alfalfa

All Farms 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 232 34 32 26 22 37 28 22 18 12

Overhead Expenses Custom hire 0.11 - - - 1.26 - 0.04 0.04 - - Hired labor 5.73 1.49 15.76 16.76 1.19 1.88 0.47 2.53 3.36 11.49 Machinery leases 0.2 0.51 0.1 0.55 0.72 0.03 0.04 0.04 - - Building leases 0.36 0.41 0.78 0.33 0.34 0.15 0.1 0.43 0.37 0.47 RE & pers. property taxes 7.84 7.66 7.41 8.15 9.34 9.73 5.14 6.44 7.11 10.21 Farm insurance 6.71 5.2 6.54 7.54 6.83 6.13 6.79 6.67 7.74 8.45 Utilities 2.22 2.37 2.91 5.15 2.19 1.14 1.52 2.61 0.64 2.58 Dues & professional fees 3.41 1.86 3.8 3.41 3.14 3 5.03 4.06 3.57 2.85 Interest 25.95 23.6 27.03 23.41 20.26 20.59 19.26 28.02 29.13 50.44 Mach & bldg depreciation 56.74 49.28 49.29 54.97 51.03 50.34 54.81 54.32 58.06 103.29 Miscellaneous 13.29 16.22 6.46 7.41 13.21 15.1 11.99 18.07 18.01 13.74Total overhead expenses per acre 122.56 108.62 120.09 127.67 109.5 108.08 105.19 123.22 128 203.52Total dir & ovhd expenses per acre 431.6 377.15 404.75 475.81 389.52 421.16 451.13 397.88 497.89 516.14Net return per acre 318.37 74.62 142.52 425.36 654.5 361.36 331.81 336.37 266.57 461.94

Government payments 6.05 4.17 6.46 5.23 0.51 0.95 10.92 24.41 3.14 - Net return with govt pmts 324.42 78.78 148.98 430.59 655.01 362.3 342.73 360.78 269.72 461.94Labor & management charge 56.13 55.43 62.62 61.23 60.89 60.05 53.06 55.37 52.16 40.62Net return over lbr & mgt 268.29 23.35 86.35 369.36 594.12 302.25 289.67 305.41 217.56 421.32

Cost of ProductionTotal direct expense per ton 60.51 60.26 63.51 68.25 50.56 63.89 65.3 50.52 68.78 51.15Total dir & ovhd exp per ton 84.5 84.63 90.3 93.28 70.33 85.95 85.15 73.19 92.58 84.45Less govt & other income 83.01 83.29 88.66 89.8 70.24 85.67 83.02 68.63 92 84.42With labor & management 94 95.73 102.64 101.81 81.23 97.92 93.04 78.81 101.69 91.07

Net value per unit 146.55 101.13 121.97 174.22 188.51 159.61 147.72 134.99 142.15 160.01Machinery cost per acre 210.77 169.32 194.71 260.42 184.98 200.83 225.19 193.1 243.82 257.37Est. labor hours per acre 6.47 6.87 8.06 8.2 6.93 6.41 5.77 6.17 5 4.37

Hay Alfalfa

Crop Enterprise Analysis(Farms Sorted By Years)

All FarmsNumber of farms 18

Acres 127.47 Overhead ExpensesYield per acre (ton) 26.28 Hired labor 7.47Operators share of yield % 100 Machinery leases 0.35Value per ton 33.62 RE & pers. property taxes 10.66Total product return per acre 883.35 Farm insurance 7.43Other crop income per acre 0.03 Utilities 1.59Gross return per acre 883.38 Dues & professional fees 2.52

Interest 57.42Direct Expenses Mach & bldg depreciation 86.56 Seed 125.48 Miscellaneous 6.89 Fertilizer 80.54 Total overhead expenses per acre 180.88 Crop chemicals 30.39 Total dir & ovhd expenses per acre 680.29 Cover crop expense 0.38 Net return per acre 203.09 Crop insurance 7.35 Fuel & oil 43.82 Government payments 0.97 Repairs 48.12 Net return with govt pmts 204.06 Custom hire 51.28 Labor & management charge 50.16 Hired labor 15.06 Net return over lbr & mgt 153.9 Land rent 68.44 Machinery leases 5.15 Cost of Production Utilities 1.58 Total direct expense per ton 19.01 Hauling and trucking 4.71 Total dir & ovhd exp per ton 25.89 Operating interest 15.34 Less govt & other income 25.85 Miscellaneous 1.78 With labor & management 27.76Total direct expenses per acre 499.42Return over direct exp per acre 383.97 Net value per unit 33.62

Machinery cost per acre 255.51Est. labor hours per acre 3.33

Crop Enterprise Analysis(Farms Sorted By Cost of Production)

Corn Silage

19.01

25.89 25.8527.76

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

Total direct expense perton

Total dir & ovhd exp perton

Less govt & otherincome

With labor &management

Corn Silage Cost of Production

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 314 17 39 56 42 31 35 32 24 20 18Acres 61.82 48.21 50.52 50.8 64.22 56.21 57.42 67.64 42.63 92.22 127.47Yield per acre (ton) 21.82 23.28 22.36 22.43 17.45 18.32 21.4 20.78 22.95 24.81 26.28Operators share of yield % 100 100 100 100 100 100 100 100 100 100 100Value per ton 41.01 36.68 38.88 48.95 61.84 47.54 38.52 35.16 32.85 29.84 33.62Other product return per acre 0.27 3.42 - - - - 1.19 - - - - Total product return per acre 894.96 857.55 869.33 1097.81 1079.28 871.23 825.36 730.69 753.67 740.4 883.35Hedging gains/losses per acre 0.06 - - - - - 0.57 - - - - Crop insurance per acre 12.4 3.15 - - 39.62 29.63 7.16 14.06 1.43 18.04 - LDP income per acre 0.13 - 1.08 0.14 - - - - - - - Other crop income per acre 0.71 1.38 1.25 0.31 0.41 2.22 0.01 0.26 2.33 0.69 0.03Gross return per acre 908.26 862.08 871.66 1098.26 1119.31 903.09 833.11 745.01 757.43 759.13 883.38

Direct Expenses Seed 95.5 68.41 73.85 87.47 88.71 82.97 98.86 107.26 100.34 107.39 125.48 Fertilizer 86.44 62.87 50.51 84.55 98.11 135.28 96.68 84.02 93.9 69.87 80.54 Crop chemicals 34.02 38.67 38.54 32.38 27.73 32.09 38.36 35.55 32.57 39.45 30.39 Crop insurance 11.64 13.62 7.13 10.28 15.2 14.34 12.27 14.46 12.16 10.92 7.35 Storage 0.29 - 0.16 1.06 0.86 - - - - - - Packaging and supplies 0.15 - - - - - - 0.27 - 1.29 - Fuel & oil 40.84 27.72 34.85 44.49 52.08 46.68 48.77 33.24 26.42 30.03 43.82 Repairs 52.5 41.81 40.36 51.57 54.92 75.36 46.56 54.56 56.1 54.04 48.12 Custom hire 71.67 19.68 61.08 79.25 61.21 91.55 94.81 56.27 51.87 120.14 51.28 Hired labor 18.56 25.08 25.48 14.21 9.56 24.03 21.54 22.6 14.08 21.78 15.06 Land rent 55.71 31.73 54.88 54.05 61.84 41.58 50.15 55.06 42.93 72.31 68.44 Machinery leases 4.02 4.89 3.09 5.27 2.85 1.88 1.91 9.53 2.34 1.78 5.15 Utilities 2.6 3.64 2.29 1.64 1.19 2.77 3.47 3.46 2.74 5.07 1.58 Hauling and trucking 1.25 - 0.18 0.64 0.03 2.66 3.32 - - - 4.71 Operating interest 8.1 5.25 3.91 4.83 4.29 13.52 7.3 5.01 3.65 17.33 15.34 Miscellaneous 4.02 1.2 3.67 7.1 4.4 1.24 2.63 9.93 2.09 0.96 2.16Total direct expenses per acre 487.32 344.57 399.99 478.8 482.98 565.96 526.63 491.22 441.19 552.36 499.42Return over direct exp per acre 420.94 517.51 471.67 619.46 636.33 337.12 306.47 253.79 316.23 206.77 383.97

Crop Enterprise Analysis(Farms Sorted By Years)

Corn Silage

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 314 17 39 56 42 31 35 32 24 20 18Overhead Expenses Hired labor 8.2 2.69 1.15 17.83 28.29 -0.31 1.32 1.11 1.23 2.6 7.47 Machinery leases 0.25 -0.1 0.1 0.02 0.16 - 0.49 0.01 0.04 1.26 0.35 Building leases 0.4 1.4 0.25 0.67 0.72 0.21 0.05 0.11 0.3 0.41 0.19 RE & pers. property taxes 7.77 11.04 6.21 6.57 7.67 7.71 7.39 5.99 10.17 7.58 10.66 Farm insurance 6.39 3.88 4.61 6.4 8.12 4.29 6.71 6.95 7.38 5.99 7.43 Utilities 2.11 0.62 2.64 3.98 4.29 0.57 0.68 1 2.52 0.84 1.59 Dues & professional fees 3.24 6.52 2.42 3.99 3.92 1.88 2.46 3.35 3.99 2.98 2.52 Interest 34.35 39.45 30.04 37.35 31 26.4 21.6 20.7 27.72 49.39 57.42 Mach & bldg depreciation 52.02 47.33 41.84 40.25 48.85 56.15 41.69 48.48 59.76 52.02 86.56 Miscellaneous 13.15 7.91 7.34 7.02 8.86 17.39 13.86 10.48 70.79 11.8 6.7Total overhead expenses per acre 127.86 120.74 96.6 124.08 141.87 114.29 96.24 98.17 183.9 134.88 180.88Total dir & ovhd expenses per acre 615.18 465.32 496.59 602.88 624.84 680.26 622.87 589.39 625.1 687.24 680.29Net return per acre 293.08 396.76 375.06 495.38 494.47 222.83 210.23 155.62 132.33 71.89 203.09

Government payments 12.51 16.96 14.13 11.66 11.62 12.89 1.11 35.44 23.09 5.08 0.97Net return with govt pmts 305.59 413.72 389.2 507.04 506.09 235.72 211.34 191.07 155.42 76.97 204.06Labor & management charge 50.37 36.47 39.11 43.86 45.55 70.99 55.12 51.31 53.32 58.54 50.16Net return over lbr & mgt 255.22 377.25 350.08 463.18 460.53 164.73 156.22 139.76 102.1 18.44 153.9

Cost of ProductionTotal direct expense per ton 22.34 14.8 17.89 21.35 27.68 30.89 24.61 23.64 19.23 22.26 19.01Total dir & ovhd exp per ton 28.2 19.99 22.21 26.88 35.8 37.12 29.11 28.36 27.24 27.7 25.89Less govt & other income 27 18.92 21.47 26.34 32.84 34.68 28.64 25.97 26.07 26.74 25.85With labor & management 29.31 20.48 23.22 28.3 35.46 38.55 31.22 28.43 28.4 29.1 27.76

Net value per unit 41.02 36.68 38.93 48.95 61.84 47.54 38.55 35.16 32.85 29.84 33.62Machinery cost per acre 228.58 144.67 189.61 229.76 225.11 275.77 237.52 204.14 203.6 265.45 255.51Est. labor hours per acre 5.21 5.11 5.32 5.72 5.62 5.95 5.44 5.43 5.71 4.61 3.33

Crop Enterprise Analysis(Farms Sorted By Years)

Corn Silage

Livestock Reports The livestock reports show the average physical production, gross returns and costs of producing the animals or animal products involved. These are generally shown on per unit (pound or cwt) or per head basis. Again, all livestock enterprises require a minimum of five observations to be included in the report.

The “Dairy” table, if included, contains the information for only the milking herd (which includes dry cows). “Dairy Replacement Heifers” are those heifers kept for replacement into the milking herd. The “Dairy and Replacement Heifers” table is for the whole herd and includes those farms in the “Dairy” and “Dairy Replacement Heifers” tables; it does not include “Dairy Steers.”

Gross Margin is the accrual gross value added by the enterprise. It includes income from sale of offspring and livestock products, cull income, non-cash transfers to other enterprises, and the value of production used in the home or for feed. It also includes the value of inventory change from beginning to the end of the year. The cost of livestock purchased and the value of animals transferred in are deducted.

Net Return is the amount contributed by the enterprise toward operator labor, management, and equity capital. Any wages and benefits paid to the operator are removed from labor costs (and added to Labor and Management Charge) so that all farms are on equal footing.

Net Return Over Labor and Management is the return remaining after deducting an opportunity cost for unpaid labor and management. This is the return to equity capital.

Cost of Production shows the average cost per unit sold in each cost category. Total direct and overhead expense per unit is the breakeven price needed to cover cash costs and depreciation. For grow/finish enterprises, this includes the purchase cost or transfer in value of the animal. With other revenue adjustments the breakeven price is adjusted for cull sales, other offspring sales, the cost of replacement stock, and any other miscellaneous income. This assumes that some costs can be covered by these other income sources. With labor and management is the final breakeven price to provide a labor and management return for the operator(s).

Other Information contains both economic and technical efficiency measures for each enterprise.

Rounding of individual items for the report may have caused minor discrepancies with the calculated totals. If fewer than 5 farms have a certain livestock enterprise, that information is not reported. If there are fewer than 25 farms, the high and low groups are not reported.

Considerable variation exists between the high and low profit firms. Expenses (direct as well as overhead) vary widely but so do returns. This suggests that management of the livestock enterprise(s) is key to higher profitability.

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 307 18 42 53 37 33 34 34 23 19 14

Milk sold 4083.05 2977.28 3456.26 4395.95 4423 4129.56 5160.42 4012.71 3598.47 4102.43 3861.2Dairy Calves sold 48.41 12.01 27.74 29.45 43.18 35.81 82.12 117.43 54.87 45.42 21.71Transferred out 41.08 53.5 42.32 40.42 52.98 38.11 78.84 42.47 19.1 19.75 10.79Cull sales 213.03 74.89 159.52 209 230.2 221 272.18 297.2 229.13 197.87 177.74Insurance income 0.32 - - - - - - 0.2 - - 3.42Government payments 1.77 - - - - - 0.41 0.2 2.28 - 17.83Other income 50.82 238.23 13.06 41.79 67.15 63.28 39.27 26.72 28.47 19.75 49.21Purchased -45.03 -64.44 -43.79 -106.69 -10.52 -16.66 -48.96 -46.85 -5.97 -52.03 -20.02Transferred in -78.71 -143.38 -53.47 -160.41 -66.11 -65.98 -58.15 -111.57 -27.15 -45.51 -8.11Inventory change 32.75 -76.88 98.43 74.52 13.01 17.19 73.56 -88.94 32.28 109.09 30.95Dairy repl net cost -404.08 -344.1 -370.85 -389.58 -607.74 -355.99 -446.49 -438.42 -499.59 -355.07 -131.49Gross margin 3943.41 2727.12 3329.23 4134.45 4145.17 4066.31 5153.18 3811.14 3431.88 4041.7 4013.23

Direct Expenses Protein Vit Minerals 795.01 745.2 585.8 773.21 815.84 623.29 1058.61 796.1 795.2 831.7 952.05 Complete Ration 182.23 - 275.59 351.51 439.24 218.3 71.25 - 50.15 34.67 76.27 Corn 271.98 233.35 210.02 348.11 317.94 324.67 229.47 259.01 289.38 158.56 293.54 Corn Silage 299.5 277.36 206.12 312.19 342.05 339.74 306.01 282.3 272.2 287.23 371.58 Hay Alfalfa 293.9 57.14 137.29 177.45 253.18 533.9 392.12 319.82 321.33 398.41 454.27 Haylage Alfalfa 180.44 317.07 191.55 187.99 214.41 287.46 180.71 170.47 68.19 151.04 41.37 Hay Alfalfa Organic 12.75 - - - - 114.77 33.3 3.3 - - - Other feed stuffs 136.15 112.11 56.93 64.43 135.77 375.64 212.38 136.08 138.65 142.22 78.75 Breeding fees 50.16 33.92 33.86 40.58 47.93 52.26 63.5 52.87 54.82 65.65 65.15 Veterinary 110.81 94.43 103.99 107.67 128.37 104.27 121.67 109 97.42 114.08 114.43 Supplies 404.46 382.89 407.78 381.58 439.69 352.95 389.77 407.51 383.41 435.73 448.26 Fuel & oil 68.77 48.03 58.49 77.18 83.03 83.54 87.68 66.02 48.68 51.11 63.1 Repairs 111.24 106.57 96.69 104.42 120.88 130.95 134.13 129.17 113.04 94.05 79.58 Hired labor 241.76 200.35 232.47 173.14 228.38 215.62 268.92 260.28 267.82 334.4 282.63 Utilities 74.02 75.38 70.65 66.56 60.35 85.6 82.29 82.48 74.5 88.59 65.9Total direct expenses 3233.19 2683.8 2667.23 3166.02 3627.07 3842.96 3631.8 3074.42 2974.8 3187.45 3386.88Return over direct expense 710.22 43.32 662 968.43 518.1 223.36 1521.39 736.73 457.08 854.25 626.35

Livestock Enterprise Analysis(Farms Sorted By Years)

Dairy -- Average Per Cow

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 307 18 42 53 37 33 34 34 23 19 14Overhead Expenses Hired labor 35.49 14.08 -16.51 80 83.85 1.19 13.1 34.71 13.67 0 80.57 Interest 116.87 173.13 151.15 142.97 131.38 92.18 108.3 95.17 105.89 72.47 75.67 Mach & bldg depreciation 171.76 166.94 144.03 147.13 167.68 174.75 189.75 146.96 146.04 245.86 223.33 Miscellaneous 155.07 148.1 119.05 147.88 143.99 130.59 159.3 136.31 213.96 191.24 200.18Total overhead expenses 479.19 502.25 397.72 517.98 526.9 398.7 470.46 413.15 479.55 509.57 579.75Total dir & ovhd expenses 3712.38 3186.05 3064.95 3684.01 4153.96 4241.66 4102.26 3487.57 3454.35 3697.02 3966.63Net return 231.03 -458.93 264.28 450.45 -8.8 -175.35 1050.93 323.57 -22.47 344.68 46.6

Labor & management charge 263.69 214.57 240.67 258.78 235.73 298.43 350.79 272.93 290.41 235.49 243.71Net return over lbr & mgt -32.66 -673.5 23.62 191.67 -244.52 -473.78 700.14 50.64 -312.88 109.19 -197.11Cost of Production Per Cwt. Of MilkTotal direct expense per unit 14.44 11.57 12.36 14.08 15.63 18.97 16.82 13.44 13.91 13.93 14.04Total dir& ovhd expense per unit 16.58 13.73 14.2 16.38 17.9 20.94 19 15.24 16.15 16.16 16.45With other revenue adjustments 17.3 14.89 14.83 17.63 19.17 21.4 19.19 16.24 17.04 16.51 15.89With labor and management 18.47 15.81 15.95 18.78 20.18 22.87 20.82 17.43 18.4 17.54 16.9

Est. labor hours per unit 42.54 46.82 43.96 43.57 42.26 48.04 44.56 40.67 43.08 36.53 36.78

Other InformationNumber of cows 142.2 143.8 126.2 126.7 154.2 105 125.4 150.6 132.6 192.4 271.2Milk produced per cow 22395 23204 21588 22488 23203 20260 21593 22879 21393 22880 24119Total milk sold 3160795 3318402 2712703 2830224 3554923 2103318 2681120 3420282 2810136 4359686 6488655Pounds of milk sold per FTE 1462970 1379798 1368716 1435542 1527855 1167769 1343091 1563649 1377361 1736870 1821386Culling percentage 26.1 19.3 24.4 25.5 27.5 28 23.9 26.3 29.4 24.7 30.8Turnover rate 33.7 26 32.4 33.1 34 39.8 31.1 33.4 36.8 33.2 37.7Cow death loss percent 7.4 6.6 7.9 7.5 6.4 10.7 6.7 6.8 7.2 8.2 6.6Percent of barn capacity 115.9 120.2 113.5 111.5 115.2 108.6 116.8 128.3 126 116.3 109.1Feed cost per day 5.95 4.77 4.56 6.07 6.9 7.72 6.81 5.39 5.3 5.49 6.21Feed cost per cwt of milk 9.7 7.51 7.7 9.85 10.85 13.91 11.5 8.6 9.05 8.76 9.4Feed cost per cow 2171.96 1742.23 1663.3 2214.89 2518.43 2817.77 2483.84 1967.07 1935.1 2003.83 2267.82Hired labor per cow 277.25 214.44 215.96 253.14 312.23 216.81 282.02 294.99 281.49 334.4 363.2Avg. milk price per cwt. 18.37 12.9 16.08 19.68 19.18 20.61 24.14 17.67 16.98 18.11 16.14Milk price / feed margin 8.67 5.4 8.38 9.83 8.33 6.7 12.64 9.07 7.94 9.35 6.73

Dairy -- Average Per Cow

Livestock Enterprise Analysis (Farms Sorted By Years)

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 307 18 42 53 37 33 34 34 23 19 14

Milk sold 18.23 12.83 16.01 19.55 19.06 20.38 23.9 17.54 16.82 17.93 16.01Dairy Calves sold 0.22 0.05 0.13 0.13 0.19 0.18 0.38 0.51 0.26 0.2 0.09Transferred out 0.18 0.23 0.2 0.18 0.23 0.19 0.37 0.19 0.09 0.09 0.04Cull sales 0.95 0.32 0.74 0.93 0.99 1.09 1.26 1.3 1.07 0.86 0.74Insurance income 0 - - - - - - 0 - - 0.01Government payments 0.01 - - - - - 0 0 0.01 - 0.07Other income 0.23 1.03 0.06 0.19 0.29 0.31 0.18 0.12 0.13 0.09 0.2Purchased -0.2 -0.28 -0.2 -0.47 -0.05 -0.08 -0.23 -0.2 -0.03 -0.23 -0.08Transferred in -0.35 -0.62 -0.25 -0.71 -0.28 -0.33 -0.27 -0.49 -0.13 -0.2 -0.03Inventory change 0.15 -0.33 0.46 0.33 0.06 0.08 0.34 -0.39 0.15 0.48 0.13Dairy repl net cost -1.8 -1.48 -1.72 -1.73 -2.62 -1.76 -2.07 -1.92 -2.34 -1.55 -0.55Gross margin 17.61 11.75 15.42 18.38 17.86 20.07 23.87 16.66 16.04 17.66 16.64

Direct Expenses Protein Vit Minerals 3.55 3.21 2.71 3.44 3.52 3.08 4.9 3.48 3.72 3.64 3.95 Complete Ration 0.81 - 1.28 1.56 1.89 1.08 0.33 - 0.23 0.15 0.32 Corn 1.21 1.01 0.97 1.55 1.37 1.6 1.06 1.13 1.35 0.69 1.22 Corn Silage 1.34 1.2 0.95 1.39 1.47 1.68 1.42 1.23 1.27 1.26 1.54 Hay Alfalfa 1.31 0.25 0.64 0.79 1.09 2.64 1.82 1.4 1.5 1.74 1.88 Haylage Alfalfa 0.81 1.37 0.89 0.84 0.92 1.42 0.84 0.75 0.32 0.66 0.17 Hay Alfalfa Organic 0.06 - - - - 0.57 0.15 0.01 - - - Other feed stuffs 0.61 0.48 0.26 0.29 0.59 1.85 0.98 0.59 0.65 0.62 0.33 Breeding fees 0.22 0.15 0.16 0.18 0.21 0.26 0.29 0.23 0.26 0.29 0.27 Veterinary 0.49 0.41 0.48 0.48 0.55 0.51 0.56 0.48 0.46 0.5 0.47 Supplies 1.56 1.33 1.56 1.46 1.6 1.63 1.66 1.52 1.6 1.61 1.58 Fuel & oil 0.31 0.21 0.27 0.34 0.36 0.41 0.41 0.29 0.23 0.22 0.26 Repairs 0.5 0.46 0.45 0.46 0.52 0.65 0.62 0.56 0.53 0.41 0.33 Custom hire 0.25 0.32 0.33 0.23 0.29 0.12 0.14 0.26 0.19 0.3 0.28 Hired labor 1.08 0.86 1.08 0.77 0.98 1.06 1.25 1.14 1.25 1.46 1.17 Utilities 0.33 0.32 0.33 0.3 0.26 0.42 0.38 0.36 0.35 0.39 0.27Total direct expenses 14.44 11.57 12.36 14.08 15.63 18.97 16.82 13.44 13.91 13.93 14.04Return over direct expense 3.17 0.19 3.07 4.31 2.23 1.1 7.05 3.22 2.14 3.73 2.6

Dairy -- Average Per Cwt. Of Milk

All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 307 18 42 53 37 33 34 34 23 19 14Overhead Expenses Hired labor 0.16 0.06 -0.08 0.36 0.36 0.01 0.06 0.15 0.06 0 0.33 Interest 0.52 0.75 0.7 0.64 0.57 0.45 0.5 0.42 0.49 0.32 0.31 Mach & bldg depreciation 0.77 0.72 0.67 0.65 0.72 0.86 0.88 0.64 0.68 1.07 0.93 Miscellaneous 0.69 0.64 0.55 0.66 0.62 0.64 0.74 0.6 1 0.84 0.83Total overhead expenses 2.14 2.16 1.84 2.3 2.27 1.97 2.18 1.81 2.24 2.23 2.4Total dir & ovhd expenses 16.58 13.73 14.2 16.38 17.9 20.94 19 15.24 16.15 16.16 16.45Net return 1.03 -1.98 1.22 2 -0.04 -0.87 4.87 1.41 -0.11 1.51 0.19

Labor & management charge 1.18 0.92 1.11 1.15 1.02 1.47 1.62 1.19 1.36 1.03 1.01Net return over lbr & mgt -0.15 -2.9 0.11 0.85 -1.05 -2.34 3.24 0.22 -1.46 0.48 -0.82

Cost of Production Per Cwt. Of MilkTotal direct expense per unit 14.44 11.57 12.36 14.08 15.63 18.97 16.82 13.44 13.91 13.93 14.04Total dir& ovhd expense per unit 16.58 13.73 14.2 16.38 17.9 20.94 19 15.24 16.15 16.16 16.45With other revenue adjustments 17.3 14.89 14.83 17.63 19.17 21.4 19.19 16.24 17.04 16.51 15.89With labor and management 18.47 15.81 15.95 18.78 20.18 22.87 20.82 17.43 18.4 17.54 16.9

Est. labor hours per unit 0.19 0.2 0.2 0.19 0.18 0.24 0.21 0.18 0.2 0.16 0.15

Other InformationNumber of cows 142.2 143.8 126.2 126.7 154.2 105 125.4 150.6 132.6 192.4 271.2Milk produced per cow 22395 23204 21588 22488 23203 20260 21593 22879 21393 22880 24119Total milk sold 3160795 3318402 2712703 2830224 3554923 2103318 2681120 3420282 2810136 4359686 6488655Pounds of milk sold per FTE 1462970 1379798 1368716 1435542 1527855 1167769 1343091 1563649 1377361 1736870 1821386Culling percentage 26.1 19.3 24.4 25.5 27.5 28 23.9 26.3 29.4 24.7 30.8Turnover rate 33.7 26 32.4 33.1 34 39.8 31.1 33.4 36.8 33.2 37.7Cow death loss percent 7.4 6.6 7.9 7.5 6.4 10.7 6.7 6.8 7.2 8.2 6.6Percent of barn capacity 115.9 120.2 113.5 111.5 115.2 108.6 116.8 128.3 126 116.3 109.1Feed cost per day 5.95 4.77 4.56 6.07 6.9 7.72 6.81 5.39 5.3 5.49 6.21Feed cost per cwt of milk 9.7 7.51 7.7 9.85 10.85 13.91 11.5 8.6 9.05 8.76 9.4Feed cost per cow 2171.96 1742.23 1663.3 2214.89 2518.43 2817.77 2483.84 1967.07 1935.1 2003.83 2267.82Hired labor per cow 277.25 214.44 215.96 253.14 312.23 216.81 282.02 294.99 281.49 334.4 363.2Avg. milk price per cwt. 18.37 12.9 16.08 19.68 19.18 20.61 24.14 17.67 16.98 18.11 16.14Milk price / feed margin 8.67 5.4 8.38 9.83 8.33 6.7 12.64 9.07 7.94 9.35 6.73

Dairy -- Average Per Cwt. Of Milk

MN & WI All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of farms 267 31 42 34 33 26 19 23 24 19 16

Milk sold 3924.55 3038.65 3260.73 3262.14 3509.73 3905.3 4204.38 4677.2 4776.28 4880.5 4504.55Dairy Calves sold 42.08 17.27 16.01 36.44 20.53 102.21 34.43 68.28 56.8 44.88 33.14Transferred out 46.3 44.85 78.32 45.85 74.55 25.75 60.66 40.3 33.67 23.49 9.87Cull sales 203.53 113.76 142.76 185.01 230.17 255.85 307.56 261.02 187.08 190.27 208.57Insurance income 1.38 - - - - - - - - - 18.54Government payments 3.46 - - - - - 2.61 5.4 0.98 4.3 30.64Other income 145.22 250.77 117.03 129.12 166.16 166.1 131.46 146.15 106.4 111.81 118.22Purchased -29.38 -36.51 -35.12 -3.26 -34.31 -27 -76.58 -17.87 -4.45 -64.89 -8.87Transferred in -83.29 -121.92 -113.89 -93.08 -97.58 -92.39 -88.95 -54.96 -53.48 -65.12 -19.29Inventory change 38.52 -8.76 61.46 -37.03 21.55 -43.37 93.22 110.77 91.86 109.61 12.6Dairy repl net cost -502.74 -361.84 -394.51 -345.46 -480.14 -569.06 -622.78 -423.75 -560.12 -696.86 -763.44Gross margin 3789.64 2936.26 3132.8 3179.73 3410.67 3723.38 4046.01 4812.54 4635.03 4537.98 4144.52

Direct Expenses Protein Vit Minerals 303.21 188.67 212.04 220.33 261.43 199.24 311.94 420.6 482.54 462.12 367.86 Complete Ration 71.18 16.63 47.27 68.02 89.84 157.39 49.24 79.49 70.72 58.93 67.34 Corn 94.71 25.18 32.17 91.97 129.74 158.59 162.17 150.9 165.68 26.97 - Haylage Alfalfa 106.01 62.08 59.02 91.55 76.81 115.33 118.72 81.48 133.21 186.6 199.74 Corn Organic 255.52 194.67 153.96 193.75 220.88 312.33 284.7 355.85 162.95 386.53 411.34 Corn Silage Organic 170.96 109.18 96.65 164.19 161.58 191.95 158.61 222.78 179.76 216.05 264.95 Hay Alfalfa Organic 332.68 224.03 278.1 318.73 444.31 428.2 451.59 429.12 244.19 245.63 261.4 Pasture Organic 80.82 107.13 96.34 96.78 74.73 69.32 96.59 75.47 50.19 52.63 85.35 Other feed stuffs 332.28 325.52 267.37 295.75 365.43 318.75 292.89 373.81 423.61 316.21 351.47 Breeding fees 27.4 17.89 20.39 24.24 24.03 23.25 20.54 41.82 33.64 34.6 39.44 Supplies 337.71 247.59 288.71 287.24 315.1 306.88 322.55 402.04 456.6 416.63 378.93 Fuel & oil 75.05 55.88 71.04 92.65 87.75 115.57 92.01 59.21 46.05 54.13 73.67 Repairs 145.23 116.93 136.94 168.5 137.11 121.03 170.26 159.34 159.62 167.92 122.46 Hired labor 103.32 54.8 38.58 99.9 76.14 68.96 69.97 176.91 131.06 128.44 249.46 Bedding 38.89 23.49 23.63 25.56 24.23 33.77 78.01 60.95 38.26 62.39 46.46Total direct expenses 2473.82 1769.67 1813.75 2239.16 2489.11 2620.55 2679.8 3089.75 2778.09 2815.78 2919.89Return over direct expense 1315.82 1166.6 1319.05 940.57 921.56 1102.83 1366.21 1722.79 1856.94 1722.2 1224.63

Organic Dairy -- Average Per Cow

MN & WI All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 267 31 42 34 33 26 19 23 24 19 16Overhead Expenses Hired labor 156.58 169.51 176.19 126.19 146.31 181.07 159.4 111.47 166.89 161.66 169.96 Building leases 31.67 11.89 24.1 14.79 14.22 15 30.91 8.5 53.34 114.24 57.98 Interest 89.64 77.64 75.05 109.04 77.72 119.15 93 77.16 65.86 103.84 112.58 Mach & bldg depreciation 129.25 93.91 110.09 102.08 95.89 119.05 127.03 166.29 161.62 189.51 161.62 Miscellaneous 172.77 162.01 187.47 176.49 169.22 192.33 178.74 180.44 152.92 169.6 149.12Total overhead expenses 578.28 514.97 560.82 528.58 503.37 626.6 589.08 543.87 600.63 738.85 651.27Total dir & ovhd expenses 3052.1 2284.63 2374.57 2767.75 2992.48 3247.16 3268.88 3633.62 3378.72 3554.63 3571.16Net return 737.54 651.63 758.22 411.98 418.19 476.22 777.13 1178.92 1256.31 983.35 573.36

Labor & management charge 290.21 285.16 278.22 301.57 275.07 260.59 271.53 295.1 299.85 367.1 279.1Net return over lbr & mgt 447.33 366.47 480 110.41 143.12 215.63 505.6 883.82 956.46 616.25 294.26

Cost of Production Per Cwt. Of MilkTotal direct expense per unit 17.66 14.59 13.83 17.86 19.4 19.2 19.32 20.03 17.62 17.42 18.06Total dir& ovhd expense per unit 21.79 18.84 18.1 22.08 23.32 23.79 23.56 23.55 21.43 21.99 22.09With other revenue adjustments 23.47 20.29 19.76 23.58 24.65 26.01 25.54 23.59 22.9 24.8 25.01With labor and management 25.55 22.64 21.88 25.98 26.79 27.92 27.5 25.5 24.8 27.07 26.74

Est. labor hours per unit 38.88 39.48 40.1 41.58 38.32 38.49 41.23 39.02 37.21 36.59 35.73

Other InformationNumber of cows 90.5 77.8 77.6 78.9 90 94.8 89.4 104.1 103 106 112.8Milk produced per cow 14008 12129 13119 12537 12832 13652 13874 15429 15767 16162 16164Total milk sold 1230774 917025 986438 955116 1122354 1252424 1206061 1555415 1584878 1667677 1766954Pounds of milk sold per FTE 979474 836365 888101 815448 911656 961180 916520 1072087 1158359 1204506 1228120Culling percentage 25.5 21.7 23.5 25.7 27.9 32.5 29.7 20.5 22.6 25.8 26.9Turnover rate 31.2 27.3 29.9 33.3 32.6 39 34.1 25.9 28.5 30.2 32.4Cow death loss percent 4.8 3.9 5.5 6.2 3.9 5.7 3.8 4.6 4.9 4.1 5Percent of barn capacity 96.1 103.9 99.2 99.7 72.5 101.8 99.8 103.9 96.4 100.8 102.7Feed cost per day 4.79 3.43 3.41 4.22 5 5.35 5.28 6 5.24 5.35 5.51Feed cost per cwt of milk 12.47 10.33 9.47 12.29 14.22 14.29 13.89 14.19 12.13 12.08 12.43Feed cost per cow 1747.36 1253.08 1242.93 1541.08 1824.74 1951.09 1926.45 2189.48 1912.86 1951.67 2009.46Hired labor per cow 259.57 224.31 212.33 226.09 222.45 250.03 229.37 288.39 297.95 290.1 419.42Avg. milk price per cwt. 28.86 25.77 25.64 26.94 28.13 29.56 31.16 31.31 31.03 31.01 28.74Milk price / feed margin 16.38 15.43 16.16 14.65 13.91 15.26 17.27 17.12 18.9 18.93 16.31

Organic Dairy -- Average Per Cow

MN & WI All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of farms 267 31 42 34 33 26 19 23 24 19 16

Milk sold 28.02 25.05 24.86 26.02 27.35 28.61 30.3 30.31 30.29 30.2 27.87Dairy Calves sold 0.3 0.14 0.12 0.29 0.16 0.75 0.25 0.44 0.36 0.28 0.2Transferred out 0.33 0.37 0.6 0.37 0.58 0.19 0.44 0.26 0.21 0.15 0.06Cull sales 1.45 0.94 1.09 1.48 1.79 1.87 2.22 1.69 1.19 1.18 1.29Insurance income 0.01 - - - - - - - - - 0.11Government payments 0.02 - - - - - 0.02 0.04 0.01 0.03 0.19Other income 1.04 2.07 0.89 1.03 1.29 1.22 0.95 0.95 0.67 0.69 0.73Purchased -0.21 -0.3 -0.27 -0.03 -0.27 -0.2 -0.55 -0.12 -0.03 -0.4 -0.05Transferred in -0.59 -1.01 -0.87 -0.74 -0.76 -0.68 -0.64 -0.36 -0.34 -0.4 -0.12Inventory change 0.27 -0.07 0.47 -0.3 0.17 -0.32 0.67 0.72 0.58 0.68 0.08Dairy repl net cost -3.59 -2.98 -3.01 -2.76 -3.74 -4.17 -4.49 -2.75 -3.55 -4.31 -4.72Gross margin 27.05 24.21 23.88 25.36 26.58 27.27 29.16 31.19 29.4 28.08 25.64

Direct Expenses Protein Vit Minerals 2.16 1.56 1.62 1.76 2.04 1.46 2.25 2.73 3.06 2.86 2.28 Complete Ration 0.51 0.14 0.36 0.54 0.7 1.15 0.35 0.52 0.45 0.36 0.42 Corn 0.68 0.21 0.25 0.73 1.01 1.16 1.17 0.98 1.05 0.17 - Haylage Alfalfa 0.76 0.51 0.45 0.73 0.6 0.84 0.86 0.53 0.84 1.15 1.24 Corn Organic 1.82 1.61 1.17 1.55 1.72 2.29 2.05 2.31 1.03 2.39 2.54 Corn Silage Organic 1.22 0.9 0.74 1.31 1.26 1.41 1.14 1.44 1.14 1.34 1.64 Hay Alfalfa Organic 2.37 1.85 2.12 2.54 3.46 3.14 3.25 2.78 1.55 1.52 1.62 Pasture Organic 0.58 0.88 0.73 0.77 0.58 0.51 0.7 0.49 0.32 0.33 0.53 Other feed stuffs 2.37 2.68 2.04 2.36 2.85 2.33 2.11 2.42 2.69 1.96 2.17 Breeding fees 0.2 0.15 0.16 0.19 0.19 0.17 0.15 0.27 0.21 0.21 0.24 Supplies 2.41 2.04 2.2 2.29 2.46 2.25 2.32 2.61 2.9 2.58 2.34 Fuel & oil 0.54 0.46 0.54 0.74 0.68 0.85 0.66 0.38 0.29 0.33 0.46 Repairs 1.04 0.96 1.04 1.34 1.07 0.89 1.23 1.03 1.01 1.04 0.76 Hired labor 0.74 0.45 0.29 0.8 0.59 0.51 0.5 1.15 0.83 0.79 1.54 Bedding 0.28 0.19 0.18 0.2 0.19 0.25 0.56 0.39 0.24 0.39 0.29Total direct expenses 17.66 14.59 13.83 17.86 19.4 19.2 19.32 20.03 17.62 17.42 18.06Return over direct expense 9.39 9.62 10.05 7.5 7.18 8.08 9.85 11.17 11.78 10.66 7.58

Organic Dairy -- Average Per Cwt. Of Milk

MN & WI All Farms 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Number of farms 267 31 42 34 33 26 19 23 24 19 16Overhead Expenses Hired labor 1.12 1.4 1.34 1.01 1.14 1.33 1.15 0.72 1.06 1 1.05 Building leases 0.23 0.1 0.18 0.12 0.11 0.11 0.22 0.06 0.34 0.71 0.36 Interest 0.64 0.64 0.57 0.87 0.61 0.87 0.67 0.5 0.42 0.64 0.7 Mach & bldg depreciation 0.92 0.77 0.84 0.81 0.75 0.87 0.92 1.08 1.03 1.17 1 Miscellaneous 1.23 1.34 1.43 1.41 1.32 1.41 1.29 1.17 0.97 1.05 0.92Total overhead expenses 4.13 4.25 4.27 4.22 3.92 4.59 4.25 3.52 3.81 4.57 4.03Total dir & ovhd expenses 21.79 18.84 18.1 22.08 23.32 23.79 23.56 23.55 21.43 21.99 22.09Net return 5.26 5.37 5.78 3.29 3.26 3.49 5.6 7.64 7.97 6.08 3.55

Labor & management charge 2.07 2.35 2.12 2.41 2.14 1.91 1.96 1.91 1.9 2.27 1.73Net return over lbr & mgt 3.19 3.02 3.66 0.88 1.12 1.58 3.64 5.73 6.07 3.81 1.82

Cost of Production Per Cwt. Of MilkTotal direct expense per unit 17.66 14.59 13.83 17.86 19.4 19.2 19.32 20.03 17.62 17.42 18.06Total dir& ovhd expense per unit 21.79 18.84 18.1 22.08 23.32 23.79 23.56 23.55 21.43 21.99 22.09With other revenue adjustments 23.47 20.29 19.76 23.58 24.65 26.01 25.54 23.59 22.9 24.8 25.01With labor and management 25.55 22.64 21.88 25.98 26.79 27.92 27.5 25.5 24.8 27.07 26.74

Est. labor hours per unit 0.28 0.33 0.31 0.33 0.3 0.28 0.3 0.25 0.24 0.23 0.22

Other InformationNumber of cows 90.5 77.8 77.6 78.9 90 94.8 89.4 104.1 103 106 112.8Milk produced per cow 14008 12129 13119 12537 12832 13652 13874 15429 15767 16162 16164Total milk sold 1230774 917025 986438 955116 1122354 1252424 1206061 1555415 1584878 1667677 1766954Pounds of milk sold per FTE 979474 836365 888101 815448 911656 961180 916520 1072087 1158359 1204506 1228120Culling percentage 25.5 21.7 23.5 25.7 27.9 32.5 29.7 20.5 22.6 25.8 26.9Turnover rate 31.2 27.3 29.9 33.3 32.6 39 34.1 25.9 28.5 30.2 32.4Cow death loss percent 4.8 3.9 5.5 6.2 3.9 5.7 3.8 4.6 4.9 4.1 5Percent of barn capacity 96.1 103.9 99.2 99.7 72.5 101.8 99.8 103.9 96.4 100.8 102.7Feed cost per day 4.79 3.43 3.41 4.22 5 5.35 5.28 6 5.24 5.35 5.51Feed cost per cwt of milk 12.47 10.33 9.47 12.29 14.22 14.29 13.89 14.19 12.13 12.08 12.43Feed cost per cow 1747.36 1253.08 1242.93 1541.08 1824.74 1951.09 1926.45 2189.48 1912.86 1951.67 2009.46Hired labor per cow 259.57 224.31 212.33 226.09 222.45 250.03 229.37 288.39 297.95 290.1 419.42Avg. milk price per cwt. 28.86 25.77 25.64 26.94 28.13 29.56 31.16 31.31 31.03 31.01 28.74Milk price / feed margin 16.38 15.43 16.16 14.65 13.91 15.26 17.27 17.12 18.9 18.93 16.31

Organic Dairy -- Average Per Cwt. Of Milk

Cash Farm Expense Seed $28,772 Fertilizer $31,951 Crop chemicals $9,218 Non-chemical crop protect $7 Crop insurance $3,445 Drying expense $1,385 Storage $661 Packaging and supplies $260 Crop supplies - Crop miscellaneous $1,666 Crop consultants $378 Feeder livestock purchase $6,873 Purchased feed $190,852 Breeding fees $8,194 Veterinary $16,615 Livestock supplies $24,848 DHIA $1,709 Contract production exp. $2,860 Livestock insurance $505 Livestock leases $204 Grazing fees $230 Govt program expense $349 Bedding $6,576 Organic certification $69 Livestock consultants $603 Interest $47,012 Fuel & oil $27,144 Repairs $38,655 Custom hire $32,998 Hired labor $70,934 Land rent $41,588 Machinery leases $4,737 Building leases $3,718 Real estate taxes $7,107 Personal property taxes $128 Farm insurance $11,870 Utilities $17,625 Hauling and trucking $11,115 Marketing $7,652 Dues & professional fees $4,537 Purchase of resale items $177 Miscellaneous $8,505Total cash expense $673,732.00

Average Farm dollars from 82 farms in this report that are expensed/spent/infused into our economy.

Consider what places in your community or area where these dollars may have

This is important to understand how any person or business affects our local/area communities and ecnomy.

Vulnerable Strong

Farm Finance Scorecard

__ . __

$ ______

____%

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$ ______

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$ ______

$ ______

$ ______

$ ______

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____%

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Year _____

1. Current ratio

2. Working capital

3. Working capital to gross revenues

4. Farm debt-to-asset ratio

5. Farm equity-to-asset ratio

6. Farm debt-to-equity ratio

7. Net farm income

8. Rate of return on farm assets

9. Rate of return on farm equity

10. Operating profi t margin

11. EBITDA

12. Capital debt repayment capacity

13. Capital debt repayment margin

14. Replacement margin

15. Term-debt coverage ratio

16. Replacement margin coverage ratio

17. Asset-turnover rate

18. Operating-expense ratio

19. Depreciation-expense ratio

20. Interest-expense ratio

21. Net farm income ratio

Liquidity

Solvency

Profi tability

Repayment capacity

Financial effi ciency

1.3 2.0

10% 30%

60% 30%

40% 70%

1.5 0.43

4% 8%

3% 10%

15% 25%

1.25 1.75

30% 45%

80% 60%

10% 5%

10% 5%

10% 20%

1.10 1.50

Liquidity- is the ability of your farm business to meet financial obligations as they come due – to generate enough cash to pay your family living expenses and taxes, and make debt payments on time.

1. Current ratio - measures the extent to which current farm assets, if sold tomorrow, would pay off current farm liabilities.

2. Working capital - tells us the operating capital available in the short term from within the business. 3. Working capital to gross revenues - measures operating capital available against the size of the business.

Solvency- is the ability of your business to pay all its debts if it were sold tomorrow. Solvency is important in evaluating the financial risk and borrowing capacity of the business.

9. Rate of return on farm equity - represents the interest rate being earned by your investment in the farm. This return can be compared to returns available if your equity were invested somewhere else, such as a certificate of deposit.

10. Operating profit margin - shows the operating efficiency of the business. If expenses are low relative to the value of farm production, the business will have a healthy operating profit margin. A low profit margin can be caused by low product prices, high operating expenses, or inefficient production.

11. EBITDA - Earnings Before Interest Taxes Depreciation and Amortization. Measures earnings available for debt repayment.

Profitability- is the difference between the value of goods produced and the cost of the resources used in their production.

7. Net farm income - represents return to 3 things, • Your labor, • Your management and • Your equity, that you have invested in the business. It is the reward for investing your unpaid family labor, management and money in the business instead of elsewhere. Anything left in the business, i.e., not taken out for family living and taxes, will increase your farm net worth.

8. Rate of return on farm assets - can be thought of as the average interest rate being earned on all (yours and creditors’) investments in the farm. Unpaid labor and management are assigned a return before return on farm assets is calculated.

4. Farm debt-to-asset ratio - is the bank’s share of the business. It compares total farm debt to total farm assets. A higher ratio is an indicator of greater financial risk and lower borrowing capacity.

5. Farm equity-to-asset ratio - is your share of the business. It compares farm equity to total farm assets. If you add the debt-to-asset ratio and the equity-to-asset ratio you must get 100%.

6. Farm debt-to-equity ratio - compares the bank’s ownership to your ownership. It also indicates how much the owners have leveraged (i.e., multiplied) their equity in the business.

Farm Financial Ratios and Guidelines

From the balance sheet

From the income statement

2

Repayment capacity- shows the borrower’s (i.e., your) ability to repay term debts on time. It includes non-farm income and so is not a measure of business performance alone.

12. Capital debt repayment capacity - measures the amount generated from farm and non-farm sources, to cover debt repayment and capital replacement.

13. Capital debt repayment margin - is the amount of money remaining after all operating expenses, taxes, family living costs, and scheduled debt payments have been made. It’s really the money left, after paying all bills, that is available for purchasing or financing new machinery, equipment, land or livestock.

The last four ratios show how Gross Farm Income is used. The sum of the four equals 100% (of Gross Farm Income).

18. Operating-expense ratio - shows the proportion of farm income that is used to pay operating expenses, not including principal or interest.

19. Depreciation-expense ratio - indicates how fast the business wears out capital. It tells what proportion of farm income is needed to maintain the capital used by the business.

20. Interest-expense ratio - shows how much of gross farm income is used to pay for interest on borrowed capital.

21. Net farm income ratio - compares profit to gross farm income. It shows how much is left after all farm expenses, except for unpaid labor and management, are paid.

Financial efficiency- shows how effectively your business uses assets to generate income. Past performance of the business could well indicate potential future accomplishments.

It also answers the questions: • Are you using every available asset to its fullest potential?

• What are the effects of production, purchasing, pricing, financing and marketing decisions on gross income?

17. Asset-turnover rate - measures efficiency in using capital. You could think of it as capital productivity. Generating a high level of production with a low level of capital investment will give a high asset-turnover rate. If, on the other hand, the turnover is low you will want to explore methods to use the capital invested much more efficiently or sell some low-return investments. (It could mean getting rid of that swamp and ledge on the back 40 and getting something that produces income.)

14. Replacement margin - the amount of income remaining after paying principal and interest on term loans and unfunded (cash) capital purchases.

15. Term-debt coverage ratio - tells whether your business produced enough income to cover all intermediate and long-term debt payments. A ratio of less than 1.0 indicates that the business had to liquidate inventories, run up open accounts, borrow money, or sell assets to make scheduled payments.

16. Replacement margin coverage ratio - A ratio under 1.0 indicates that you did not generate enough income to cover term debt payments and unfunded capital purchases.

From the cash-flow statement

From all the financial statements

3

2014

Liquidity1. Current ratio = Total current farm assets / Total current farm liabilities2. Working capital = Total current farm assets – Total current farm liabilities3. Working capital to gross revenues = Working capital / Gross farm income

Solvency (market)4. Farm debt-to-asset ratio = Total farm liabilities / Total farm assets5. Farm equity-to-asset ratio = Farm net worth / Total farm assets 6. Farm debt-to-equity ratio = Total farm liabilities / Farm net worth

Profitability7. Net farm income = Gross cash farm income – Total cash farm expense + / – Inventory changes – Depreciation 8. Rate of return on farm assets = Return on farm assets / Average farm assets Return on farm assets = Net farm income + Farm interest – Value of operator labor & management9. Rate of return on farm equity = Return on farm equity / Average farm net worth Return on farm equity = Net farm income – Value of operator labor & management10. Operating profit margin = Return on farm assets / Value of farm production Value of farm production = Gross cash farm income + / – Inv change of crops, mkt lvst, brdg lvst & other income items – Feeder livestock purchased – Purchased feed11. EBITDA = Net farm income + Interest expense + Depreciation and amortization expense

Repayment capacity12. Capital debt repayment capacity = Net farm income + Depreciation + Net non-farm income – Family living & income taxes + Interest expense on term loans13. Capital debt repayment margin = Capital debt repayment capacity – Scheduled principal & interest on term loans* 14. Replacement margin = Capital debt repayment margin – Unfunded (cash) capital replacement allowance15. Term debt coverage ratio = Capital debt repayment capacity / Scheduled principal & interest on term loans*16. Replacement margin coverage ratio = Capital debt repayment capacity / (Scheduled principal & interest on term loans* + Unfunded capital replacement allowance)

Financial efficiency17. Asset-turnover ratio = Value of farm production / Average farm assets18. Operating-expense ratio = (Total farm operating expense excluding interest – Depreciation) / Gross farm income19. Depreciation-expense ratio = Depreciation / Gross farm income20. Interest-expense ratio = Farm interest / Gross farm income21. Net farm income ratio = Net farm income / Gross farm income

The University of Minnesota is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation.

Developed by: K. Becker, D. Kauppila, G. Rogers, R. Parsons, D. Nordquist, and R. Craven

*Includes payments on capital leases

Flowchart for Assessing and Improving Farm Firm Profitability

Resources Measuring and Analyzing Farm Financial Performance

Department of Agricultural Economics, Purdue University https://www.extension.purdue.edu/extmedia/ec/ec-712-w.pdf

Possible Courses of Action to Improve Profit Performance

Key Financial Performance Measures for Farm General Managers University of Purdue Extension

https://www.extension.purdue.edu/extmedia/id/id-243.pdf

Interpreting Financial Statements and Measures

University of Minnesota Center for Farm Financial Management

https://ifsam.cffm.umn.edu/

Ag Risk & Farm Management Library

University of Minnesota Center for Farm Financial Management

https://agrisk.umn.edu/

Information and logos page. (Sponsors of this report)

Participating Wisconsin Technical Colleges

In Cooperation With Center for Farm Financial Management – University of Minnesota

Farm Business & Production Management – Wisconsin Technical College System

Mark Denk

Aimee Schomburg Dona Goede Brad Sirianni

Ed Ruff – retired Kory Stalsberg Jonna Schutte

Mark Alden - retired Brian Niemuth Jon Bahrke Aaron Pape

Jeremy Hanson Sara Maass-Pate

Mike Sabel

Dustin Williams Randy Zogbaum

Wisconsin Farm Business & Production Management (FBPM Programs and

Instructors Julie Wadzinski