What all do you include when calculating your debt per acre?
I know the big things like loans, family living expense, fertilizer, herbicide, but how far do you go?
If the farm is your only source of income it makes sense to include all debt, inputs, and liabilities in your debt per acre. Everything.
If you’re calculating breakevens you have to figure everything including cost of the land if land is owned (taxes) versus land that is rented (land rent) cost of Fert.,seed,seed treatments, fuel, custom hire,repairs,chemicals,fungicides,crop Insur.,lp for drying crops ,trucking ,labor, utilities,int. On operating Loan family’s living ex.,machinery paymt. Including Bin payments dryer, combine, tractor etc.
What is debt/acre calculation used for?
I have a spreadsheet setup that has what we have spent on a crop or projections on what we are gonna spend, what we think it will do, to help with marketing decisions. I was wanting to add the debt per acre to help make sure that we are making money with everything considered.