making decisions based on your records
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Making Decisions Based on Your Records
Bill BurtonArea Agricultural Economics Specialist
Family Business ProductionBills Paid Bills Paid Crops and Soils
Employment, Earnings
Income, Receipts Livestock
Accounts Accounts Machinery & Equipment
Credit Credit Computers, Office
Insurance Farm Insurance Buildings
Inventory & Assets
Business Management
Other Inventory
Important Papers
Where Do You Keep Your Records?
Wallet File cabinet Safe deposit boxDriver’s license Lots of stuff… List of records in the home
fileCredit/debit cards List of insurance policies
Card with medical info- Certificates: birth, death, etc.
Health insurance Contracts, notes, deeds, etc.
Memberships Copy of bank account info-, list of financial advisors
Mini-version of living will Copy of will
Organ donor card Stock certificates, bonds, etc.
Personal ID Household inventory & photos
Using records
• Historical analysis• Current assessment• Forward planning
• Financial performance• Financial position
• Whole farm• Enterprise
Questions that records can answer
• Am I making more on crops or livestock?• Should I buy or raise hay?• Are my costs of production too high?• What is my break-even calf price?• What can I do if I want to be more profitable?• What can I do to provide incentives for hired
help to do a better job?• What kind of risk management strategies
should I be using?
What do good records offer?• Cold, hard facts • Ability to compare to benchmarks• Insights into strengths/weaknesses,
problem identification• Identification of profit and loss centers• Direction for maximizing the returns to
owned resources• Documentation to obtain/maintain credit
Can You Answer Correctly?
• What is your calving percent?• How many calves died?• How much cost do you have in a bale of
hay?• How much does it take to run a cow for
one year?• Can I afford to buy that new pickup?
Can You Answer Correctly?
• Is it cheaper to bale my own hay, or buy it?• Which of my cows need to be culled?• How much fertilizer can I afford to put on my
pastures?
FinancialRecords
Cash records:tax reports,
financial statements, Quicken
AccrualAdjustments
ProductionRecords
Standardized Performance Analyses
Cow-calf
SPA
Production Performance
85.5 82.1
3.50
102030405060708090
100
Calving % Weaning % Death Loss %
Perc
ent
NM-TX-OK, 1991-2002
Production Performance522
429
300
350
400
450
500
550
Avg. Weaning Weight Lb. Weaned/Exp. Female
Poun
ds
NM-TX-OK, 1991-2002
Weaning Percent
85 83 81 80
0102030405060708090
100
Top 25% 2nd 25% 3rd 25% Low 25%
Perc
ent
Income Quartile
NM-TX-OK, 1991-2002
Pounds Weaned Per Exposed Cow
455 432 427 402
0
100
200
300
400
500
Top 25% 2nd 25% 3rd 25% Low 25%
Poun
ds
Income Quartile
NM-TX-OK, 1991-2002
Capital Investment Per Cow(Market Value)
3,8873,398 3,328
5,061
0
1,000
2,000
3,000
4,000
5,000
6,000
Top 25% 2nd 25% 3rd 25% Low 25%
Dolla
rs
Income Quartile
NM-TX-OK, 1991-2002
Cost of Production ($/Cow)
264323
383
568
0
100
200
300
400
500
600
Top 25% 2nd 25% 3rd 25% Low 25%
Dolla
rs
Income Quartile
NM-TX-OK, 1991-2002
Production Cost
6075
129
78
74
170
86
78
219
106
113
349
0
100
200
300
400
500
600
Top 25% 2nd 25% 3rd 25% Low 25%
Other CostGrazing Cost Per CowFeed Cost Per Cow
Dolla
rs
Income QuartileNM-TX-OK, 1991-2002
Return on Assets (%), Market Value
6.72.4
-1.2
-7.5
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
Top 25% 2nd 25% 3rd 25% Low 25%
Perc
ent
Income Quartile
NM-TX-OK, 1991-2002
Production Cost
131
118
265
111
91
147
92
105
195
7168
252
6775
238
6270
219
5272
187
0
100
200
300
400
500
600
1-49 50-99 100-199
200-299
300-499
500-999
1000+
Feed Cost Per Cow Grazing Cost Per Cow Other Cost
Dolla
rs
Number of HeadNM-TX-OK, 1991-2002
Net Income ($/Cow)
-192
6
-45 -33-13
16 29
-29
-200-175-150-125-100
-75-50-25
02550
1-49 50-99 100-199
200-299
300-499
500-599
1000+ Avg.
Dolla
rs
Number of HeadNM-TX-OK, 1991-2002
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