Business
I put every dollar I spend in a year into a spreadsheet so I know exactly what price I need out of my crops to breakeven. I am curious if anyone would help me find out how my costs compare to other farms. I am talking about EVERY dollar the farm spends in a year averaged by total acres per crop, not just crop inputs.
For soybeans I have been about $390 per acre.
For corn I have been about $512 per acre.
Thanks for any input, I appreciate the help,
Everyone can stay anonymous if they want.
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farmworks was the best for financials and precision ag. but that is going away. traction ag is working on getting to that level. Granular I hear is good but wow expensive
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I've used granular for 2 crop cycles now. 2020 does not have the overhead cleaned up and adjusted in proper yet. I think your $400 for soybeans is good. 2019 we where at $400.63 soybeans. This is production expenses + operating costs. (includes depreciation) Accrual adjusted. No drawing included...however there are fringe benefits to management included in the operating that where dificult t...
Download a free IRS form Schedule F and make a spreadsheet out of it and you’ll have a good start. You can detail out the line items you want more specific information on.
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Anybody have any more spreadsheets to share? I am new to farming and taking over an unmanaged, unkept, broken down old family farm in southern Indiana. We have about 350ac of abused dirt after 20yrs of tenant farmers on the ground. I am finding no locals that will teach or mentor me much less share any information. Thanks.
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Unfortunately this seems to be the "modern" trend these days. "I'm not going to help my neighbor get better, I want his land" type of thinking. Technology is great, BUT, technology is what has hurt/killed the small family farm/small towns. 24rw planters, 100ft sprayers, etc. etc. we/they don't need the extra people around. Good luck with your farm, BTW, how did you make out improving the land?
My Son helped me develop spreadsheets as well and we have been doing it for many years. We also have a feedlot so it is a must to do the spreadsheet to know what the true cost is. We get paid wages and so that gets difficult to distinguish what used what and some tractors as well. We do not do accrual accounting since we want to be cash for tax purposes, BUT we do things very simular every year...
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I take every expense for specific fields (seed, fertilize, rent, lime divided by 3 to represent 3 year expense, don't include tile)) and figure that fields cost per acre. Then I add up every dollar I spend on anything else from Christmas toys, groceries, equipment payments and maintenence, large expenses like tile or land payments, grain bin payments, minivan payment for the wife, anything that I ...
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why are you dividing seed, fert, rent, lime by 3. that would be this year's expense. not 3 years
Round #’s $115 seed $100 nitrogen $100 P&K $35 chemical $250 rent machinery is difficult, using custom rates. ~$45 includes drying costs plenty of small misc. including insurance on corn
First off this is a great question! There's great knowledge in the question itself, that I'll get back too. The problem is there's no true logical answer I feel, because every farm is so widely and incredibly different. Even neighbors would have a hard time comparing due to all the different practices that farmers use. Such as for an easy example are you no-till, vertical till, conventional till, ...
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I think you guys are making this too complicated. I figure EVERY dollar I spend in a year. The categories on my spreadsheet are the same as the categories my accountant breaks all my expenses into, except crop specific items, (seed, fertilizer, chemicals, etc). Crop specific items are entered into each specific crops. All other expenses are broken down by the crop percentage of the whole farm....
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Check out this spreadsheet.
You can add in additional expenses but this gives you a starting point.
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so what is your point. we are all trying to make money.
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So if you finance equipment for three years, you are counting the payment? And I finance for seven years, makes my numbers look much better. You can only compare businesses that are all using accrual accounting.
Some farms yield much better than others, some rents are much cheaper than others. Very difficult to compare 30 bu wheat SW ground to 250 bu I state ground, by the acre. Can really only ...
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made my go to one on excell
Haven’t kept track fir a while, curious to see how sone spreadsheets are setup
Lol I looked one year and I was up against irrigated farms. Take A careful look at all of info comparisons But I will say my banker loves them at FBFM . I take in their analysis of my operation and the master note is in the works.
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On costs per acre, it seems like everyone uses or omits something different that the next guy. Unless you’re comparing the exact same costs, then it’s not easy to compare. I have mine figured to include EVERYTHING I pay for.....from seed to a pack of gum beside the checkout register.
FBFM has Illinois’ end of the year net as negative 27 of the last 40 years and positive 13 of the last 40 years. ...
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fin pac if you want to go thru your local colleges this class is very good to bench mark your self against fellow farmers year after year. also Farm works is very good if your detailed with your input.
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There are some accounting services that include benchmarking.
It is difficult for any of us to help you without seeing your exact expenses by item per acre. Would also need to know yield goals, basis etc. I understand why you wouldn’t want to provide this level of detail on a public forum.
There are also independent financial consultants that specialize in agriculture. It might be worth the mon...
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loan total $85.37 / acre personal $35.88 / acre fertilizer,nitroge,hernicide,seed $225.40
these are all per income acre . all else repairs insurance labor prop taxes etc. $214.14 cash rent on all rented acres divided all income acres $85.37. gross income per is $793 of which fsa is $68.54 per income acre. commercial corn and soybeans. you're right to keep those #'s in your mind always...
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I think we are around $340 for beans and $540 for corn. In that neighborhood anyway.
That's based on spreadsheet costs. There are a few misc costs that would add $5-10 per ac. And doesn't include family living expense (time).
Edit: Doesn't include rent either.
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Just take total expenses off your taxes and divide them by acres planted. I realize every crop is different but I feel I need $300 across the board to support family living. Wheat barley corn soybeans canola oats. Maybe a little too simplified but works for me.
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I'm at 325 for wheat. take out machinery payments and I'm at 225. bought to much in the good years. looking forward to 2022. have one more year to make it through. Learned a valuable lesson. don't finance machinery.
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Very good advice ****. The young guns are extremely impatient and don’t know the value of $. Staying out of debt only adds more $ to your pocket. I understand the urge to grow rapidly, but that very thing has sunk many ships. Once again, great advice.