Farming Requires
Self-Analysis
Glenn A. Shirk
Lancaster Co. Extension Agent
LANCASTER (Lancaster Co.)
The end of one year and the
beginning of a new year is a good
time to look back to see what you
have accomplished, and to look
ahead to determine where you
want to be next year and 10 years
from now.
It is a good time to ask why are
you farming? What are your fami
ly’s goals? Is the farm working for
you and helping you to accom
plish your goals, or are you a slave
to the farm? As a farm manager,
you should be concerned about
these important questions that
affect the life of you and your
family.
The worksheet on the other side
can help you calculate your costs,
your profits, and your family liv
ing needs per cwt. of milk
shipped. You get paid a certain
amount, per cwt. of milk shipped,
hut do you know how much it
costs you to produce that milk,
and the margins of profit needed
to support your family? As a busi
You can san up to $3/cwt in milk production costs by grazing
alfalfa. The one to graze is Alfagraze. The first and only dual-purpose
alfalfa variety selected to survive intensive grazing and still produce top hay
yields. And after 12 years of university develop- ■■■■-mi. am.
ment, Alfagraze is amazing researchers and grow- AMUhCnS
ers nationwide.
For more information about Alfagraze,
contact your nearest America’s Alfalfa salesman.
We think you’ll be amazed.
P. L. ROHRER & BR0„ INC.
Smoketown, PA
GLENN’S
UDDERINGS
By
Glenn A. Shirk
Lancaster Extension
Dairy Agent
ness manager, you should know
these figures.
If your profit margins on line 29
are too small to meet your family
living needs on line 31 plus all of
your mortgage payments, includ
ing the portion on line 30 that is
related to land - -
a. How much do you need to
cut production costs on line 28 or
on lines 34 thru 38 to get the mar
gin of profit you need, and can
these cuts be made without hurt
ing your business in the long run?
b. How many cwts. of milk
must you ship, at your present
margin of profit per cwt. of milk,
to meet your family’s needs (col
umn 2, line 31 divided by line
29)?
c. How many cwt’s of milk
must you ship per cow to meet
your family’s needs (the answer in
b. above divided by the average
number of .cows milked per year)?
‘ 'd'."What changes can you make
to improve farm profits? Estimate
the impact these changes will have
on farm income and expenses.
(Turn to Page 04)
on
PH. 717-299-2571
Cwt. of Milk Shipped
Income;
Milk sales 146505
Cattle, calf sales 17556
Dividend, premium, refund
Total Income 164061
Expenses (paid and unpaid for the year):
Labor 11943
Feed ..40708 .
Consulting
Breeding, testing, registrar
Vet, medicine
Dairy supplies
Marketing, advertising
Trucking
Custom work
Crop supplies, fert, chem
Fuel
Utilities
Repairs
Rent, leases
Taxes
Insurance
Interest
Depreciation
Total Costs
29. Profit
30. - Land mortgage payments
31. - Family needs
Surplus or deficit
Categories of Costs;
* Feed-related 99745 8.80
(add lines 10+11 + 17 + 18 + 19 + field share of cost;
machinery share of costs on lines 21 + 22 + 24 + 25 +
* Herd replacements 30000 2.65
(total replacements added x the estimated cash and noi
* Machinery & equip, costs 42920 3.78
(machinery share of costs on lines 21 +22 + 24 + 25
* Real estate costs 24500 2.16 |
(land & building share of costs on lines 21 + 22 + 23 + 24 + 25 + 26 + line
* Debt-servicing costs 40528
(lines 25 + 30 + all principal payments)
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Lancaster Firming, Saturday. January 15, 1994-D3
Totals or
Yr.-to-Date
11340
Amount
per Cwt.
xx x x
12,92
1.55
14.47
IQS
3-59
3299
--326 Q
■29
.28
9133
1305
.. .444
13053
47.72
—4&12
...iQ63B.
6375
2674
3452
11441
16544
3088
143853
■Bl
■ 12
.04.
1.15
■42
.JSI
■94 -
24,
3Q
1.01
1.4.6.
21...
12.68
-2Q2QB-..
sm
31063
- 15855
1.78
...M.
2.74
-1.40
3.57 |
ire Situation
Totals or Amount
Change Yr.-to-Date per Cwt.
xxxx
on lines 9 + 22 + 23 + 24 + 25 +
56.)
i-cash costs per replacement)
26)
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