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Making Your Adult Program Indispensable: All-Year-Round. Presented to the Ag-Ed Department – University of Missouri-Columbia Thursday, June 28 th , 2007 John Hobert Farm Business Management Instructor Riverland Community College-Kenyon FBM Department. Welcome from the Gopher State!. - PowerPoint PPT Presentation
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Making Your Adult Program Indispensable: All-Year-Round
Presented to the Ag-Ed Department – University of Missouri-Columbia Thursday, June 28th, 2007John HobertFarm Business Management InstructorRiverland Community College-Kenyon FBM Department
Welcome from the Gopher State!
My Student Work Area:
Who is John Hobert?Cannon Falls, MN
Originally from Charles City, Iowa. Attended Mason City Junior College from 1964-1966. Attended South Dakota State University in Brookings,
South Dakota from 1966-1968. Served in Republic of S Vietnam 1969-1970. Taught Agricultural Education from 1970-1994 at
Cannon Falls Sr. High School, Cannon Falls, Minnesota. Riverland Community College 1994-Present. Currently work with 50+ farming operations. Currently President of NFRBMEA.
MN FBM Regional Setup:
1 – Northwest Northland CC-Thief River Falls Ron Dvergsten
2 -- Northeast / East Central Central Lakes CC-Staples Del Lecy
3 -- West Central Ridgewater CC-Willmar Jim Molenaar
4 – Southwest MN West CC-Jackson Al Brudelie
5 -- South Central South Central CC-Mankato Al Brudelie
6 – Southeast Riverland CC-Austin, Albert Lea,
Owatonna Peter Scheffert
Following the Annual RCC-Kenyon FBM Banquet Review our RCC-Kenyon Student FBM Notebook
for the Current Analysis year with student enrollees: Tab 1: Review the SE Minnesota 2006 Annual Report.
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Tab 1: Review the SE Minnesota 2006 Annual Report. Tab 2: Review the 2006 Calendar Year Farm Report
Card.
Riverland-Kenyon FBM Farm Averages2006 Averages
FINANCIAL MEASURES======================================================================== =============================================Categories Page Kenyon Area SE STATE MYSELF
Profitability (Cost) Ratios:
Rate of Return on Farm Equity P5 5.30% 9.40% 11.80% >>>>>>>> _________________>15% Green : <5% Red Operating Profit Margin P5 12.40% 17.50% 19.70% >>>>>>>> _________________>% Is BetterNet Farm Income P5 $75,663 $89,443 $91,971 >>>>>>>> _________________
Repayment Capacity (Cash) Ratios:
Term Debt Coverage Ratio P5 164% 170% 178% >>>>>>>> _________________>100% Is Recommended Capital Replacement Margin P5 $47,439 $46,119 $47,929 >>>>>>>> _________________>150% Green : <110% Red Efficiency Ratios:
Asset Turnover Rate(Cost) P5 49.70% 44.60% 46.10% >>>>>>>> _________________>25% Green : <15% Red Operating Expense Ratio P5 76.70% 74.90% 72.20% >>>>>>>> _________________<80% Green : >80% RedDepreciation Exp Ratio P5 5.40% 4.60% 4.90% >>>>>>>> _________________<10% Green : >15% RedInterest Expense Ratio P5 6.60% 5.70% 5.80% >>>>>>>> _________________<10% Green : >20% RedNet Farm Income Ratio P5 11.30% 14.80% 17.10% >>>>>>>> _________________>20% Green : <10% RedLabor Measures:
Total Unpaid Labor Hours P5 2571 2,673 2538 >>>>>>>> _________________
Total Hired Labor Hours P5 2213 2,296 1603 >>>>>>>> _________________
Total Farm Labor Hours P5 4784 4,969 4141 >>>>>>>> _________________
Value of Farm Production/Hour P5 $109.76 $96.55 108.14 >>>>>>>> _________________
Net Farm Income/Unpaid Hour P5 $29.43 $33.47 36.24 >>>>>>>> _________________
Miscellaneous Operator Information:
Operator's Age 46.1 46 46.4 >>>>>>>> _________________
Operator's Years Farming 23.4 22.3 23 >>>>>>>> _________________
Notes:
Riverland-Kenyon FBM Farm Averages2006 Averages
Corn========================================================================================== Categories K-W SE STATE MYSELF
(O) (R) (O) (R) (O) (R) (O) (R)================================================================================= Yield/Acre 180.16 179.71 182.28 178.41 167.47 166.74 ________/________Value per Bushel 3.00 2.94 2.97 2.95 2.90 2.86Gross Return/Acre 552.15 542.13 546.17 533.11 491.10 483.16 ________/________
Seed 53.47 52.96 52.62 52.57 51.22 52.74 ________/________
Fertilizer 72.05 76.29 73.05 76.41 69.63 72.12 ________/________
Chemicals 27.71 28.60 29.03 29.76 22.66 22.19 ________/________
Crop Insurance 12.37 13.05 11.17 11.97 10.39 11.19 ________/________
Land Rent - 116.25 - 118.83 - 102.89 ________/________
Fuel and Oil 18.18 18.02 21.35 20.26 21.22 20.58 ________/________ Total Repairs 25.87 22.65 26.78 24.61 26.72 23.98 ________/________
Operating Interest 10.62 10.93 9.54 11.99 10.26 11.67 ________/________
Total Direct Expenses 269.79 388.25 259.99 383.73 235.18 340.20 ________/________
Real Estate Taxes 20.67 - 17.18 - 14.03 - ________/________
Total Intm/Long Term Interest 55.93 9.02 51.21 7.87 51.00 6.61 ________/________
Mach & Building Depreciation 29.97 25.13 32.22 27.57 29.23 24.55 ________/________
Total Overhead Expenses 135.24 56.02 130.82 62.12 123.42 59.39 ________/________
Total Expenses 405.03 444.28 390.80 445.85 358.59 399.59 ________/________
Net Return/Acre 147.12 97.85 155.37 87.26 132.50 83.56 ________/________
Total Expense/Unit 2.25 2.47 2.14 2.50 2.14 2.40 ________/________
Net Return/Unit 0.82 0.54 0.85 0.49 0.79 0.50 ________/________
Breakeven Yield/Acre 135.01 151.12 131.58 151.14 123.65 139.72 ________/________
Estimated Labor Hours/Acre 3.10 2.27 2.97 2.48 2.92 2.41 ________/________
Net Return With Gov Payments 176.37 126.58 189.33 120.30 162.54 112.38 ________/________
Labor & Mgt Charge/Acre 44.53 38.78 36.22 33.29 31.89 28.39 ________/________
Net Return Over Lbr & Mgt 131.84 87.80 153.11 87.01 130.65 83.99 ________/________
Riverland-Kenyon FBM Farm Averages2006 Averages
DAIRY/COW===========================================================================================Categories K-W SE STATE MYSELF
2006 2005 2006 2005 2006 2005Gross Return 3051.04 3300.13 3046.54 3458.57 2819.86 3170.57 ________
Veterinary 130.82 117.14 121.00 127.29 108.96 107.20 ________
Livestock Supplies 90.72 96.12 109.05 106.23 115.13 114.02 ________
Total Direct Expenses 1992.24 1813.89 1933.72 1980.28 1804.94 1793.69 ________
Total Overhead Expenses 675.36 735.93 766.08 714.75 712.40 696.38 ________
Total Listed Expenses 2667.60 2549.82 2699.81 2695.03 2517.34 2490.07 ________
Net Return 373.84 750.32 346.73 763.55 302.53 680.51 ________
Est Labor Hours/Unit 39.35 37.77 40.38 38.79 40.74 40.53 ________
Labor & Mgt Charge 311.41 260.45 197.97 200.63 204.61 203.57 ________
Net Ret Over Labor/Mgt 62.43 489.87 148.76 562.91 97.91 476.94 ________
Average Number of Cows 142.00 135.60 170.70 154.30 122.00 117.30 ________
Milk Produced Per Cow 22575.00 21395.00 22678.00 22261.00 21307.00 20652.00 ________
Culling Percentage 23.90 26.00 25.10 26.20 24.60 25.50 ________
Percent of Barn Capacity 110.80 107.40 108.70 105.00 107.20 104.20 ________
Lbs. Milk/Lb Grain & Conc 2.40 2.40 2.50 2.40 2.40 2.30 ________
Feed Cost/Cwt. of Milk 5.13 4.95 5.15 5.2 5.37 5.48 ________
Feed Cost/Cow 1159.19 1059.67 1168.83 1156.49 1144.86 1132.04 ________
Price Received/Cwt. 13.57 15.84 13.55 15.83 13.36 15.70 ________
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Tab 1: Review the SE Minnesota 2006 Annual Report. Tab 2: Review the 2006 Calendar year Farm Report Card. Tab 3: Review Student 2006 FINAN Reports.
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Tab 1: Review the SE Minnesota 2006 Annual Report. Tab 2: Review the 2006 Calendar year Farm Report Card. Tab 3: Review 2006 Student FINAN Reports.
RankEm Personalized Percentile Rank Report.
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Tab 1: Review the SE Minnesota 2006 Annual Report. Tab 2: Review the 2006 Calendar year Farm Report Card. Tab 3: Review the 2006 Student FINAN Reports.
RankEm Personalized Percentile Rank Report. Personal Balance Sheet
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Review the SE Minnesota 2006 Annual Report. Review the 2006 Calendar year Farm Report Card. Review the 2006 Student FINAN Reports.
RankEm Personalized Percentile Rank Report. Personal Balance Sheet Personal FINAN Report
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Tab 1: Review the SE Minnesota 2006 Annual Report. Tab 2: Review the 2006 Calendar year Farm Report Card. Tab 3: Review the 2006 Student FINAN Reports.
RankEm Personalized Percentile Rank Report. Personal Balance Sheet Personal FINAN Report Personal Cash Flow Projection
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Tab 1: Review the SE Minnesota 2006 Annual Report. Tab 2: Review the 2006 Calendar year Farm Report Card. Tab 3: Review the 2006 Student FINAN Reports.
RankEm Personalized Percentile Rank Report. Personal Balance Sheet Personal FINAN Report Personal Cash Flow Projection Personal FINAN Graphs/Barometer Charts
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Tab 4: Review the student’s farm records.
Discuss accuracy, problem entries, & completeness.
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Tab 4: Review the student’s farm records.
Discuss accuracy, problem entries, & completeness. Tab 5: Misc. Farm Information
Custom Rate Information Factors That Lead to Profitable Farms Student Farm Visit Schedule
Review our RCC-Kenyon Student FBM Notebook for the Current Analysis year with student enrollees: Tab 4: Review the student’s farm records.
Discuss accuracy, problem entries, & completeness. Tab 5: Misc. Farm Information
Custom Rate Information Factors That Lead to Profitable Farms Student Farm Visit Schedule
Tab 6: Current Year Taxes
During the next year on subsequent farm visits: Review our RCC-Kenyon Student FBM Notebook
for the Current Analysis year with student enrollees: Tab 7: Evaluation Tools
2006 FINBIN Report on Minnesota Farm Finances. How Did Minnesota Farms Stack Up? How Did Your Farm Stack Up? Quarterly Cash Flow Monitoring Sheet follow-up. Balance Sheet, Livestock and Crop Enterprise Historical
Trends. Using RankEM to Set Short Term Goals. Instruct the use of FINBIN sorts to benefit students.
Include a Marketing Discussion at Each Scheduled Farm Visit:
Reinforce their marketing strengths and weaknesses year around: Review Daily Marketing Charts
Weather Review: Past Year, Past Month, Current, GDDs.
Grain Charts: Crop Condition Reports, Current Prices, Seasonal Highs & History, Basis, Probabilities, Supply & Demand Reports, Rust Update.
Dairy Charts: Monthly Class III Pricing, Current Class III Milk Price Graphing, Probabilities, MILC Historical Charting, Historical Milk Prices.
A Continual Reminder!
Think marketing! Watch markets daily! Know your costs! Utilize your analysis! Establishing a price where we make a ‘profit’ is the
key! Think profit gaps! What are your trigger prices? Lock in prices! Getting the top price will not be possible! Control
your emotions! Sell more often in smaller quantities. Spread your
marketing period further! Don’t become over-whelmed with data overload!
Use strategies that have worked over time and which have strong probabilities behind them!
Typical Farm Appointment Agenda: Six Week Rotation
Typical farm appointment is 2 ½ hours: Daily (Current) Market Update.
Utilize charting discussed previously. Farm Accounting Training, Review and Evaluation.
Work toward making your Close-Out Season efficient. Farm Evaluation Tools (Continual Financial Review).
Select from Tool Box discussed previously. Mini-Unit of Instruction
How to Handle High Income Years.
