improving lives. improving texas. jay yates extension program specialist - risk management texas...
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Improving Lives. Improving Texas.
Jay YatesJay Yates Extension Program Specialist - Risk ManagementExtension Program Specialist - Risk Management
Texas AgriLife Extension ServiceTexas AgriLife Extension Service
2008 Oilseeds Workshop2008 Oilseeds Workshop•Enterprise BudgetsEnterprise Budgets•FARM AssistanceFARM Assistance
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Break-even Price to Cover Costs
Returns Above Total Specified Expenses
Total Direct Expenses
What Is FARM Assistance?Financial And Risk Management Assistance• Cutting edge technology that
incorporates risky returns of agriculture
• Long term planning tool designed to project the financial condition under risk
• Goal is to evaluate the future impacts of management decisions before a commitment is made
FARM Assistance Benefits
• Evaluate production, borrowing, & marketing alternatives
• Estimate costs & returns using forward price information
• Designed to provide a comparison of proposed changes to continuing the business “as is”
• One-on-one approach allows for in-depth assessment of financial future
The Real Power of FARM Assist… Examining Alternatives
• Take on more land• Grow different crops• Restructure debt• Increase livestock inventories• Sell calves at weaning, sell them as
feeders or carry them through the feedlot
FARM Assistance Benefits
“In the last few years, with all the restructuring and extending we’ve done, FARM Assistance has been essential in helping us sort out the long term solutions from the short term patches that simply delay the inevitable.”
Brennan Vaverek, First United Bank, Seminole
FARM Assistance Benefits
• Examine Proposed Plans– Reduced number of non-viable
alternatives– Greater planning of new business
ventures
FARM Assistance Benefits
• Better Informed Decisions– Helps define and project the
producer’s risk, both for the short and long term
– Provides an informative, unbiased look at a farm’s long term financial future
FARM Assistance Benefits
• Educational Outreach– Through the use of this innovative
service producers become better:• Decision makers• Managers• Customers
– Certified FSA Financial Management Training
FARM Assistance Benefits
• Packaging– All production and financial
information for a producer can be summarized in one report
FARM Assistance Costs
• Base fee of $250 for analysis of:– Current situation– Multiple alternatives
• Commitment– Several hours of face-to-face time– Gathering accurate, honest
information
Ralph Waldo Emerson
"I see young men, my townsmen, whose misfortune it is to have inherited farms, houses, barns, cattle, and
farming tools; for these are more easily acquired than got
rid of."
Improving Lives. Improving Texas.
February 17February 17thth
March 5March 5thth
9:00 a.m. – 3:00 p.m.9:00 a.m. – 3:00 p.m.
Texas AgriLife Research andTexas AgriLife Research andExtension CenterExtension Center
ClassroomClassroom
Registration Fee $20Registration Fee $20
South Plains South Plains Profitability WorkshopsProfitability Workshops
•Jackie SmithJackie Smith•Jay YatesJay Yates•Jeff PateJeff Pate•John RobinsonJohn Robinson
Funded in part by Texas State
Support Committee of
Cotton Incorporated
806-746-6101
Improving Lives. Improving Texas.
Contact Information:Contact Information:Texas AgriLife Research Texas AgriLife Research
and Extension Centerand Extension Center1102 East FM 12941102 East FM 1294Lubbock, TX 79403Lubbock, TX 79403
(806) 746-6101(806) 746-6101
[email protected]@ag.tamu.edu
http://lubbock.tamu.eduhttp://lubbock.tamu.edu
Jay YatesJay YatesExtension Program SpecialistExtension Program SpecialistRisk ManagementRisk Management
FARM Assistance AnalystFARM Assistance Analyst
South Plains Cotton Update every Thursday at 1:30 p.m. during Ag Talk on
Also available as blog online athttp://agrilifeblogs.tamu.edu/mt/spcuor via email.
Improving Lives. Improving Texas.
Jay YatesJay Yates Extension Program Specialist - Risk ManagementExtension Program Specialist - Risk Management
806-746-6101806-746-6101
[email protected]@ag.tamu.edu
SouthPlainsProfit.tamu.eduSouthPlainsProfit.tamu.edu
FARMAssistance.tamu.eduFARMAssistance.tamu.edu
Texas AgriLife Extension ServiceTexas AgriLife Extension Service
2008 Oilseeds Workshop2008 Oilseeds Workshop•Enterprise BudgetsEnterprise Budgets•FARM AssistanceFARM Assistance