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IMicr()DFBS V 2.4 I

1. CHOOSE OPTION 1 MAKE A DIRECTORY 2 REMOVE A DIRECTORY 3 SET NEV PATH TO DIRECTORY 0 CONTINUE INSTALLATION OPTION This menu allows the user to create and select the path for the storage of data in the program The current path will display at the top of the menu If the path displayed is correct then choose 0 zero to continue installation and save the current path If the path displayed needs to be changed or a new subdirectory needs to be created then select those items from the menu For example to create a subdirectory on the hard disk called DFBSDATA within the directory c dfbs you select 1 from the menu The program will then prompt you for the name of the new directory To specify the name you would type the complete path name to the new directory e g C DFBS DFBSDATA and press the return key The program will now create the desired subdirectory After the new directory is created the menu will again appear the new path should be displayed at the top of the screen If the path is not correct you can use option number 3 to set the proper path If you will be storing the data on a floppy diskette it is not necessary to create a directory on the diskette Choose option 3 from the menu and when prompted for the directory name simply type return enter When you are satisfied with your selection type 0 to continue installation FOR DOS 1 XX USERS The path command is not implemented in this version of DOS a
2. e s 250 Gas Tax Refunds s 160 0 s 160 Other s 200 s Q 200 TOTAL 165315 25085 s 525 190925 Sale cf Other Stock amp Certificates exclude FLB amp PCA stock 2000 NONFARM RECEIPTS Cash Income 104635 Cash Used in Business from Nonfarm Capital 2000 Noncash Capital Transferred to Farm Business Cattle crops 1 06 24 Screen 13 Summary of Year s Expenses and Changes in Inventory or Prepaid Expenses and Accounts Payable is divided in two screens Screen 13 and Screen 13a Screen 13 contains the hired labor feed machinery and livestock expense categories Screen 13a contains the crops real estate other and nonfarm expense categories To move from Screen 13 to Screen 13a press the Esc key To get back to Screen 13 from Screen 13a press the Esc key then type 13 The change in inventory values in the change in inventory or prepaid expenses column are displayed when Screen 13 is first brought up These values are calculated from the purchased feed and supply inventories entered in Screen 3 The order of data entry is across the rows The calculated values are the changes in inventory accrual expenses column and the total accrual expenses row See page 12 for instructions Change in SCREEN 13 Inventory Cash or Prepaid Change in Accrual Farm Expenses Amount paid enses cct Pav Expenses Hired Labor 3000 ix 0x 390 Feed Dairy grain amp concentrate 30000 aso oco 36250 Dair
3. Check the allocation Sum of spray and other expenses for hay crop and corn is farm total for all crops The allocation of expenses among crops is not accurate Screen 14 Check the allocations Total crop expenses per acre of hay crop is gt 150 or lt 20 K The total crop expense per acre of hay is outside the normally expected range Screen 14 Check the allocation of expenses to hay and compare with yields to see if a deviation s justified Also check acreage for accuracy OTHER Farm coded irregular A farm is coded irregular when data is incomplete missing or judged to be inaccurate Farm coded part time A farm is coded part time when operator months are less than six months and total labor months are less than 12 Farm coded renter A farm is coded renter when no tillable land is owned or the real estate inventory at end year 0 Farm coded cash crop A farm is coded dairy cash crop when cash crop sales amounted to more than 10 percent of accrual milk sales 58 59 APPENDIX A HOW TO COMPLETE DAIRY FARM BUSINESS SUMMARY DATA CHECK IN FORMS 60 HOW TO COMPLETE DAIRY FARM BUSINESS SUMMARY DATA CHECK IN FORMS Screen 1 Cooperator s Name and Address page 1 Fill in the name of the operator s of the farm business the farm name if there is one the address and the county s record project in which he or she is participating The processing number will be assigned at
4. Screen 5 Real Estate Inventory Balance page 3 This section must be completed to conf rm changes in the market value of real estate during the year a Report the beginning of year market value previous year s end of year value b Enter the cost of new purchases and capital improvements for land and buildings and subtract lost capital Value added the difference between cost of new real estate and lost capital is that proportion of the new investment that adds to the market value of the farm Enter the value of real estate that has come into the farm business during the year from gifts inheritances and from conversion of nonfarm real estate to farm real estate c Building depreciation from 1989 tax return is used as an estimate of a total building depreciation charge for the year Be sure to include depreciation on single purpose agricultural structures grain bins fences tile and silos as well as general purpose buildings d Deduct the beginning inventory value of real estate sold For example a tenant house inventoried at 20 000 and sold for 25 000 with 1 000 of sale expenses and a mortgage of 15 000 held by the seller would be entered as follows 64 Real Estate Sold Beginning of year inventory value 20 000 Total sale price 25 000 Sale expenses 1 000 Note mortgage held by seller 15 000 Net cash amt rec d in 1989 9 000 The note mortgage held by seller of 15 000 must be entered as an Other Nonfarm A
5. TOTAL OPERATING 109730 1758 13100 124588 Expansion livestock 3 9000 0 0 9000 Machinery depreciation 14280 Building depreciation 6615 83 Changes in inventory include net amounts of items used out of purchased inventory this year positive change is amt inventory declined negative change is amt inventory increased Changes in prepaid expenses apply to non inventory categories positive change is amt pre pymnt declined Unpaid items or services used or added to inventory during the year 31 3 FARM NO 38006 JANUARY 5 1990 1 E STATEMENT conti i Change in Cash Change in Accounts Accrual eceipts Inv ory Recej Receipts Milk sales 145145 1825 146970 Dairy cattle 15300 13000 1000 27300 Dairy calves 1630 300 1330 Other livestock 0 1600 0 1600 Crops 400 12485 0 12885 Gov t receipts 2230 2000 0 230 Custom machine work 250 0 250 Gas tax refund 160 0 160 Other 200 0 200 Noncash capital transfer 7 1600 1600 165315 23485 525 189325 Change in lvstk inv w o apprec amp total change in grown feeds inv Change in advanced government receipts Gifts j ritances o ttle reps to the farm business PROFITABILITY ANALYSIS Without Appreci With RETURN TO OPERATOR S amp FAMILY LABOR Apprec ation Apprec UNPAID MGMT amp EQUITY CAPITAL Total Accrual Receipts 189325 Livestock Appreciation 5000 Machinery Appreciation 3730 Real Estate Appreciation 961
6. of new Loans FLB PCA Stock 6950 ee n s s s t n tn n nz Sz Sn ll 1 jl n8 B n l lse lt4t t 9 n gott Net Reduction fug eci E e nee heo s ace ete ia Ret ce Og Ronde RE gre Planned PCA 3000 lOper Debt 4000 0 0 Accts Pay 5500 18600 2500 Accts Pay 1000 Adv Gov Rec 0 2000 Total Farm 172450 186850 5000 17000 Nonfarm Liab 10000 2000 400 Total Nonfarm eee ye Seer E ik e Uc V eas e ERR era eke eae te sperare e xunheesveee wem wine payments 6200 450 22 Financial leases are entered in Screen ll The columns titled amount of each payment no of payments in 1989 no of payments full year and no of payments remaining from the data check in form are entered on Screen ll The total 1989 expense column is calculated The order of data entry is across rows SCREEN 11 Amount No of Total No of No of of each payments 1989 payments payments fu ear emainin Cattle j4slcI4 RPSL ras Peak ees ELAR MAT RA YU UA EP orsa Equipmene MOLT AT s A10 l 2040 JA a4 Total S g0t 0 Total 3 lEnter under Cattle leases on Screen 13 page 11 Enter under Machine hire rent amp lease on Screen 13 page 11 SEnter under Real Estate rent lease on Screen 13 page 11 Farm No 38006 Screen 11 FINANCIAL LEASES No of Total No of No of Amount of Payments 1989 Paym
7. return enter to move to the address line and type the rest of the farm information use the sample farm information from above Screen 1 FARM INFORMATION Verified N Farm No 38006 Operator s Name Farm Name Address Irregular At the bottom of the screen find the classifications Regular and Irregular The regular and irregular classifications indicate the accuracy and completeness of the information for determination of whether or not this farm will be included in the county regional and state summaries Regular is included irregular is not Select the appropriate classification by entering an x in the space between the brackets The Verified N notation in the upper right corner of Screen 1 indicates that the data has not yet been verified The N will change to a Y after the verification has been completed The entering of farm information in Screen 1 has now been completed It is possible to change data in the screen at this point For example use the f and 4 keys to move the cursor to Farm Name and type Sam Hill return enter There are three ways to get out of Screen 1 and move to the next screen 1 return enter Keep pressing return until the cursor goes off the screen and you get the message below 2 4 key Keep pressing the down arrow key until you get the message below 3 Esc key The escape key only needs to be pressed once to get t
8. 1 5 1490 RES CORNELL CCOPERATIVE EXTENSION Prepared by DEPARTMENT OF E NEW YORK AGRICULTURAL ECONOMICS ee COPIES CORNELL UNIVERSITY Dairy Farm Business Summary Version 2 4 C 1989 A EM eT RR Create Update Display Record Calculate and Print Farm Summary Verify Record Run Install Program J Delete Record Help Quit The main menu shows the options available in DFBS A set of brackets appears to the left of each named option An underline character is used as the cursor and marks the first option Create Update Display Record Practice moving the cursor keys What happens when you use the right and left arrow keys Final startup instructions the INSTALL program An installation program must be run before using the M cro DFBS Program in order to specify which disk drive data are to be stored on Use the cursor keys t or i to select Run Install Program You should get the message DAIRY FARM BUSINESS SUMMARY INSTALLATION PROGRAM DISK DRIVE SELECTION Valid drives are A G Present Drive is a ENTER NEW DRIVE LETTER OR PRESS RETURN TO OK EXISTING DRIVE Enter a drive letter in most cases A B or C or press return if the correct drive is already specified For the two floppy disk drive system type B Once you set the drive it will remain at that setting until you change it by selecting install again You should then see the following menu CURRENT DIRECTORY IS
9. 10 000 or gt 50 000 Net farm income without appreciation is outside the normally 12 amp 13 12 amp 13 12 amp 13 12 amp 13 12 amp 13 10 12 amp 13 56 expected range Review receipts and expenses especially accounts payable and receivable depreciation and inventory changes for accuracy Net farm income w appreciation n When n 10 000 or gt 50 000 Net farm income with appreciation is outside the normally expected range Review receipts and expenses especially livestock machinery and real estate appreciation for accuracy Labor and management income per operator lt 0 or gt 30 000 U Labor and management income is outside normally expected range Review the cash receipts and cash expenses Screens 12 and 13 and especially inventory adjustments and or depreciation for real estate machinery and equipment livestock and feed and supplies Return to operator s labor management and equity capital lt 10 000 or gt 50 000 Return to operator s labor management and equity capital is outside the normally expected range Check all receipts and expenses plus the unpaid family labor for accuracy Grain and concentrate as milk unusually low or high Value s ng When n lt 10 or gt 408 Feed purchases as a percent of milk sales is outside the normally expected range Check feed purchases Screen 11 for accuracy check to see if crop yields are
10. Cornell if the data is to be entered on the computer at Cornell If entering the data in the county use the list of processing numbers provided by Cornell to assign numbers to new cooperators and to confirm numbers used for continuing cooperators Please indicate if a farm is to be coded irregular at the top of the check in form An irregular farm has missing or inaccurate data Worksheet 1 Machinery and Equipment Purchased page 1 The only item from this section required to complete a farm business summary is the total machinery and equipment purchased Worksheet 1 is included to provide a workplace for the operator manager or managers to calculate this information If prior to completion of the check in forms the farm business has an accurate up to date machinery and equipment inventory there is no particular need to copy that information onto Worksheet 1 If completion of the worksheet is required list all new or used machinery and equipment acquired during the year and the boot amount paid or obligated to pay on each item List the market value of items traded in and make the inventory checks in order to substantiate beginning and end inventory values Check reported capital expenditures with the inventory book for the business New items should be inventoried at boot plus market value of trade in less first year s depreciation Loss or increase in market value may occur from date of purchase to year end Adjust year end value r
11. Cows may in fact be rented from others or boarded for others In this situation do not report cows as leased but enter the rental expense on Screen 13 and total average numbers including rentals on Screen 6 Livestock appreciation is 0 X Livestock values fell from beginning to end of year Screen 4 Check to make certain this occurred Livestock appreciation change in inventory X The majority of the increase in total livestock inventory resulted from price increases and not growth or quality improvement of the herd Screen 4 Check to see if this is accurate Expansion livestock expense 0 but no increase in dairy cow P P y numbers An inconsistency exists If herd size did not increase from beginning to end of year cattle purchases were not for increase of herd size Cattle purchases should be entered under Replacement Livestock on Screen 13 An exception to the above is the purchase of youngstock bred heifers in anticipation of a herd size increase If this is the situation disregard the diagnostic Dairy cow numbers decreased and dairy cattle sales 400 head The revenue from dairy cattle sales is divided by the number of cows by which herd size decreased and this diagnostic is printed if the result is less than 400 per head Did dairy cow numbers decrease Screen 4 and if so were the prices received for cull cows low or did a higher proportion of cows die or was the sales revenue
12. Stock and Cert 3000 3200 Prepaid Expenses 200 800 Total Farm Assets 450315 533867 Nonfarm Assets Personal Cash Check Saving 1500 1600 Cash Value Life Insurance 3000 3200 Nonfarm Real Estate 0 0 Personal Share Auto 2000 1500 Stocks amp Bonds 0 0 Household Furnishings 5000 5000 Other 0 16940 Total Nonfarm Assets 11500 26240 TCTAL ASSETS 461815 560107 20 Screen 10 Liabilities and Planned Debt Payment Schedule is divided into two screens Screen 10 and Screen 10a Screen 10 contains the Long Term and Intermediate Liabilities and Debt Payments Screen 10a contains the Short Term Operating Debt Accounts Payable Advanced Government Receipts and Nonfarm Liabilities and Debt Payments To move from Screen 10 to Screen 10a press the PgDn key To get back to Screen 10 from Screen 10a press the PgUp key The first column the creditor description s limited to 12 characters of input You may abbreviate and use upper or lower case letters however you wish the description will be printed on the output just as it is entered here There is a blank column under Planned 1990 Debt Payments where the interest rate was entered in past years If a value is entered in the blank column by mistake you will see a message at the bottom of the screen Number Not Within 0 00 and 0 00 Range To return to input type delete 4 0 or FARM FAMILY FINANCIAL SITUATION continued SCREEN 10 L S D
13. a total of 45K for each farm if you have previous year s data enter new data and save the calculated output for each summary The data diskette should then hold about eight 360K 45K farm records if you save the print files and about 36 farm records if you do not If you do wish to save the print files farm no prn it is recommended you save them on a separate disk When you fill up the diskette you will get a message telling you to change diskettes This may happen when you use Create Update Display Record but more likely at Calculate and Print Farm Summary When this happens you will need to use the DOS command COPY to copy the current and previous years farm record files to another diskette For example to copy the record files for farm 38006 to a new diskette remove the DFBS program diskette from drive A and insert a blank formatted diskette Then type COPY B 38006 A Then remove the original data diskette from drive B and move the new one from A to B 45 HINTS FOR INTERPRETING AND USING DAIRY FARM BUSINESS SUMMARY DIAGNOSTICS The last page s of a farm business summary printout are the diagnostics Diagnostics serve the purpose of alerting the person editing the record to possible data problems Diagnostic statements are generated when data is missing inconsistent or outside a normal expected range Each diagnostic statement should be carefully scrutinized to help insure that the data is accurate One
14. age of youngstock from beginning of year to end of year has increased and thereby value per head increased Check to be certain one or both of the above actually occurred Screen 4 End of year bred open or calf heifer inventory at beginning prices lt beginning of year inventory but no decrease in bred open or calf heifer numbers Again two possible explanations exist 1 A decrease in the quality of heifers has occurred 2 The average age of youngstock from beginning to end of year has decreased and thereby value per head decreased Check to be certain one or both of the above actually occurred Screen 4 Change in cow values head gt 100 change Qt The upward or downward movement in dairy cow market prices was greater than 100 per head Check to see if this actually occurred as a result of 1 An increase or decrease in quality of animals 2 A change in market conditions from beginning to end of year Check to be certain one or both of the above occurred Screen 4 If the beginning of year values taken from last year s end of year inventory were incorrect make the change in beginning of year values so as to accurately reflect the market at the beginning of 47 the year being analyzed Number of leased dairy cows gt 0 but cattle lease expense 0 An inconsistency may exist Check to see if cattle were leased Screen 4 and if lease payments were entered correctly Screens 11 and 13
15. amp Other Livestock 0 0 amp 1600 1600 TOTAL LIVESTOCK 120 93506 134 108100 1131005 14 The data for Screen 5 Real Estate Inventory is entered in the following order beginning year market value end year market value new land new buildings lost capital nonfarm noncash transfer depreciation and real estate sold beginning year value total sale price sale expenses and note mortgage held by seller All remaining items are calculated If there were previous year s data the beginning of year inventory value will be displayed It may be revised if necessary by typing the new value over the existing one REAL EST NV Y LANCE SCREEN 5 Land amp Building Market Value Beginning 80 000 End SA40 000 New Real Estate Purchased o s f03OO 3300 2000 land bldgs Iand imp lost capital value added Noncash Real Estate Transfer to Farm e g gifts inherit 2 Doo Depreciation from 1989 income tax Include bldgs in pre ACRS ACRS MACRS amp ADS Real Estate Sold Beginning of year inventory value 2000 Total sale price 2000O0 Sale expenses ao Note mortgage held by seller Net cash amt rec d in 1989 9 0909 Total Beginning Value After Changes 5A333 Real Estate Appreciation Assets owned at end of year end beginning after changes e SIS Assets sold during the year sale price beginning of year value lUse Worksheet 4 page 2 Calculated value is a cash inflow
16. are entered by typing the number that appears in parentheses on the data check in form and pressing return enter The appropriate business description item will be displayed on the screen Initially all the items are set to l so there will be data on the screen when you call it up The DHI number requires a 6 digit entry The first 2 digits refer to the county the last 4 digits are unique to the farm If there were previous year s data the production record milking system business type milking frequency dairy housing and financial recordkeeping system will have last year s data displayed These items may be revised by typing the correct number IVESTO i N SCREEN 6 Avg No Production Primary Livestock For Year Record Milking System Business Type Dairy cows owned AGOD H I __ 1 Bucket amp carry __ 1 Single prop rented amp leased 7 7 200 8 2 Dumping station M 2 Partnership Heifers dairy SQ Dile2138123 34 3 Pipeline 3 Corporat ion Bulls G Other __ 4 Herringbone par Other type Da ey wee LR p 6 None __ 5 Other parlor Primary Financial head oe Recordkeeping System ue Dairy Housing GOELFAC Lbs milk sold L lle gee eee Md Stanchion 2 Accounr Book __ 2 3x day Tie Stall _ 3 Agrifax Mail in Avg milk plant test 3 4 8 B F _ 3 0ther __ 2 Freestall L 4 0n Farm Computer QGJ Combination _ 5 Other Farm No 38006 Screen 6 LIVESTOCK and BUSINESS DESCRIPTION Average No Product
17. as money borrowed Enter planned payments for 1990 In the case of an FmHA Deferred Loan the unpaid interest is not converted to principal therefore the interest would be included as an account payable The total of the farm interest actually paid in 1989 7th column should equal the interest expense entered in Screen 13 page 11 The Nonfarm Liability Payments line includes debt incurred for all nonfarm assets purchased For example if a pleasure boat was purchased using debt capital record the beginning and end of year nonfarm loan balances amount of new borrowing for the boat actual payments made on the boat or any other nonfarm loan during the year and next year s planned payments If the farmer prefers not to record nonfarm liabilities any new nonfarm borrowings must also be excluded from personal withdrawals and family expenditures in Screen 13 page 11 See the footnotes at the bottom of page 7 of the check in form for additional guidelines to completing this section Screen 1l Financial Leases page 8 The purpose of this table is to help calculate the expenses associated with financial leases and to determine the present assets and liabilities for the leased items Include those items for which the farmer originally had an obligation to make specific payment for more than one year Do not include items such as machines rented per hour or day buildings equipment and cattle rented from a family member payments on purc
18. ec 160C A eo0 Crops YOO fa MES ieee 4I3 885 Government Receipts A230 900 ade Custom Machine werk aso XXXXXXXXX AsO Sas Tax Refunds Lec XXXXXXXXX LEQ Other Pat Refunds s aoc Re pen ces dal pi IU iileit EREET NEM Sie wins Total Other ato XXXXXXXXX 200 TOTAL SILS3IS SAS CBS FAS 190 428 Sale of other stock amp certificates texciude FLB amp PCA stock 10900 x m z 7 Cash income describe amp pee ura amounts I ryt income 1 9000 RE mr HE D S MBE cotal s 9435 Cash used in the WE inert on nonfarm RE eoo Noncash capita transferred to farm business for cattle crops etc e g pifrs inheritances excluding machinery enter Screen 2 amp real estate enter Screen 5 600 iEnd of year at beginning prices for cattle minus beginning of year Use Worksheet 6 on page 9 to calculate Change in advanced government receipts beginning year end year ealculated from values entered in Screen 10 page 7 Farm No 38006 Screen 12 SUMMARY OF YEARLY RECEIPTS amp CHANGES IN INVENTORY amp ACCOUNTS RECEIVABLE ma ema Cash Changes in Changes in Accrual Receipts Receipts Inventory Accts Rec Receipts t Miik 1116500 ibs 145145 1825 146970 Dairy Cattle 15300 13000 10930 27320 Dairy Calves 1630 s 300 s 1330 Other Livestock 0 s 1600 s n 1600 Crops Ei 400 126B5 0 12885 Government Recpts 2230 2000 o s 230 Cust Mach Work 250
19. high and or a large number of crop acres per cow exists Rate of return on equity capital w o appreciation n amp When n 0 or gt 10 This indicates a rate of return without appreciation outside the normally expected range Check expenses and receipts as well as assets and liabilities for accuracy Cash flow imbalance error is 1 of total cash inflows The cash flow imbalance is greater than can be accepted Check the family withdrawals and family expenditures calculations for accuracy remember income and social security taxes are considered personal withdrawals and family expenditures Check principal payments as well as new borrowings for accuracy Also consider gifts and inheritances as possible sources of discrepancy Debt to asset ratio 0 3 o Debt to asset ratio is very low Check asset values and liabili ties for accuracy 10 12 amp 13 13 13 13 13 57 Cash flow coverage ratio 0 8 or 1 2 Cash flow coverage ratio is outside normal range Check receipt and expense items as debt payments made for accuracy CROP EXPENSES Sum of fertilizer and lime expenses for hay crop and corn is farm total for all crops The allocation of expenses among crops is not accurate Screen 14 Check the allocations Sum of seed and plant expenses for hay crop and corn is farm total for all crops The allocation of expenses among crops is not accurate Screen 14
20. last page of the summary is a diagnostic page a listing of data items that fall outside of normal ranges for that item These unusual items may indicate data entry errors or simply unusual farm situations Look over the diagnostics page Refer to the section beginning on page 45 entitled Hints for Interpreting and Using Dairy Farm Business Summary Diagnostics Initial each item and write an explanation as necessary on one copy Send this copy to Cornell along with the diskette and check in form to indicate that the record is correct This will save everyone time and telephone calls spent verifying and correcting farm records Update a record Select the Create Update Display Record option on the main menu to update a farm record After entering the farm number the program will take you to Screen l If no updates are to be made on Screen 1 press the Esc key to display the message PgDn or RETURN next PgUp previous screen Esc to exit or of Screen Enter the number of the screen where a change needs to be made Use the cursor keys to move to the appropriate value and retype the new value over the old one Important If totals or calculated values appear on the screen be sure to press return or use the arrow key to move through the calculated items so they will be recalculated You may now move to another screen to make more changes in data or return to the main menu Display a record To display a record
21. not accurately reported Screen 13 Check the accuracy of input data Dairy cow end year inventory at beginning prices beginning year inventory but no increase in dairy cow numbers Quality of cows increased from beginning to end of year Screen 3 Check to see if this is accurate Dairy cow end year inventory at beginning prices lt beginning year inventory but no decrease in dairy cow numbers Quality of cows decreased from beginning to end of year Screen 3 Check to see if this is accurate 48 Number of cows 0 total value x Where x gt 0 Number of cows x total value 0 Where x gt 0 Also for heifers and bulls and other livestock There is missing data If number of livestock is entered there must be a corresponding value for those livestock If a value for livestock is entered the number of livestock must be entered REAL ESTATE INVENTORY Real estate appreciation gt 0 05 of beginning value added or 0 Real estate appreciation is greater than expected in normal circumstances or is negative Screen 5 Real estate values may have not been changed for several years and this year s change reflects more than one year s increase If this occurred change the beginning of year value to accurately reflect beginning of year value Lost capital 0 50 of real estate purchased e Lost capital is greater than normally expected Screen 5 Small capital improvements may not add
22. of the Farm Family Financial Situation The first items beginning and end year total farm inventories are calculated from data entered in earlier screens and displayed here The order of data entry is across the rows The calculated values are Total Farm Assets Total Nonfarm Assets and Total Assets If there vere previous year s data the entire beginning year column will be displayed SCREEN 9 ASSETS January l 1989 December 31 1989 Total Farm Inventory sdrteeos s 498 392 Other Farm Assets Farm cash checking amp savings 13000 Li 200 Accounts receivable 1a 5 o0 3 eas FLB amp PCA stock ld so 72950 Other stock amp certificates 3 060 3 aQgo Prepaid expenses x aco x x oo x Total Farm Assets 4503 5 3 3367 p Nonfarm Assets Personal cash checking amp savings 500 L290 Cash value life insurance 3020 3200 Nonfarm real estate o Personal share auto at OOO 500 Stock amp bonds e e Household furnishings amp 200 sooo Other include mortgages amp notes 4 9yo Total Nonfarm Assets 4 900 s me ato TOTAL ASSETS not including leases 4 S_ 59 107 Fev mm No 38 5 Soe er an FeBM eMace PIGALLE Sil 216Tigte AQZZzL Ts Jeucer be i765 December 31 1965 Total Farm Inventory 614665 98392 Other Assets Farm Cash Check Saving 23000 11200 Accounts Receivable 12500 13025 FLB amp PCA Stock 6950 7250 Other
23. real estate rent lease is 0 Screen 13 Check to see if this is correct Example If land rent is paid with a portion of crop report that value as a crop sale and as a rent payment There are less than two tillable acres per cow Land is very limited Check to see if feed purchases Screen 13 reflect low levels of farm grown feeds Check to see if all owned and rented land has been omitted Screen 7 Hay crop yield is 2 or 4 tons DM per acre Yield is Hay crop yield is outside the normal range Check to see if a large number of acres of new seeding were established poor weather or good weather existed Also check acres in hay for accuracy Screen 8 Corn silage yield is lt 2 5 or gt 7 tons DM per acre Yield is Corn silage yield is outside normal range Check to see if the dry matter coefficient and conversion are correct Screen 8 Check acres of corn silage Screen 8 and determine if some acres were not harvested Check calculation of quantity harvested Corn grain yield is lt 50 or gt 120 bushels per acre Yield is Corn grain yield is outside normal range Check to see if moisture conversion and or bushel conversions were done correctly 51 Screen 8 Check acres in corn grain and repeat calculations of quantity harvested Oat yield is 40 or 100 bushels per acre Yield is E Oat yield is outside the normal range Check to see if oat acreage was reported under grain and production und
24. should not rely on the diagnostics to catch data entry or data acquisition errors Accurate original collection and entry of data are the best methods Page No of Check In Form MACHINERY AND EQUIPMENT INVENTORY Ley Machinery owned but no machinery depreciation Check to see if machinery depreciation was collected on the check in form Screen 2 and not entered or if an entry error is present Machinery could be rented from a partner in the business with the market value being reported but not the depreciation In situations where machinery is rented from a partner it is preferable to enter machinery inventory values and depreciation for business analysis purposes However check to make certain machinery rental payments have been removed as a cash expense but that debt payments on machinery remain 1 Machinery depreciation n of beginning inventory plus new machinery When n lt 5 or n gt 20 Depreciation reported is probably too low or too high Screen 2 Check to be certain that building and or cattle depreciation has not been included as a machinery entry Low depreciation values are expected when the average age of machinery is high greater than 10 years and little if any new machinery was purchased High depreciation values are expected when the average age of machinery is low less than five years and relatively large purchases of new machinery occurred in recent years 1 Machinery appreciation exceeds
25. the Dairy Farm Business Summary check in form The top of the first page of our sample farm check in form is shown below We will call our sample farm number 38006 and we have written the number in the space labelled Processing number CORNELL COOPERATIVE EXTENSION DAIRY FARM BUSINESS SUMMARY AND DATA CHECK IN FORM SCREEN 1 Name Ly County Roc X land Farm Name Address RD Box Id Dairy town Ny 13 76 Proc number 2 00 6 Year 1989 Phone no 2 a Acomplete jentered ready Update Screens Type the farm number 38006 The program will find the file 38006 89 This file already contains data from the previous year such as beginning of year inventory values and beginning of year assets and liabilities The program continues on to Screen 1 If the data you are entering is for a new cooperator you will see the following message after you enter the newly assigned farm number Data files missing create new ones Y N Enter y J The program will continue on to Screen 1 Screen 1 contains the farm name address and phone number from the boxed in area at the top of page 1 of the check in form Screen numbers 2 through 14 correspond to the other 13 boxed in areas of the check in form Screen 1 should look like Screen 1 on the next page The farm number state and county will already be inserted for you and the cursor will be at the operator s name Enter the farmer s name There is no farm name so enter e
26. the appropriate number of payments The FLB amp PCA Stock values at the top of Screen 10a are displayed These values were entered as assets in Screen 9 The order of data entry is across the rows The calculated values are the rows for Total Farm Liabilities Payments and Total Liabilities Payments If there were previous year s data the creditor description and beginning year liability columns will be displayed Farm No 36006 LIABILITIES amp PLANNED DEBT PAYMENT SCHEDULE Screen 1 Liabilities Debt Payments Amount Amount Actual Planned 1990 r of New I Jan 1 Dec 31 1989 1989 LODE Lerm eres seer A cv quee san ona a ouch Dec suae ea s fries wr Fors Seo ecu e hohe Pao Y S TIAS Reid 1 lst Bank Mtg 36000 35000 o 1000 3000 326 12 FLB 60000 58000 I 0i 2000 4000 589 12 08 0 i ags 08 0 O 12 Oo 0 JS ojs 0 s 0 0 12 intermediate naso Med wr EPFL E pM ERA PES First Bank 18000 18000 0 e 378 12 PCA 30000 33000 5000 2000 4500 675 12 0 o Is ols os 0 o 12 0 O s ojs 0 0 0 12 0 0 is oj 0 0 0 12 0 0 i ois 0 0 0 12 05 Oo i ojs 08s 0 O 12 PRESS PgDn OR ESC TO GO TO SCREEN 10A lt lt lt lt SCREEN 10 CONTINUED gt gt gt gt gt PRESS PgUp TO GO TO SCREEN 10 M Amount
27. 000 33000 Heifers 30500 35500 0 0 Bulls other 0 0 lvstk 0 1600 0 0 Mach eq owned 90000 94000 0 0 Mach eq leased 5029 3470 0 0 FLB PCA Stock 6950 7250 Financial lease Other stock cattle mach 5029 3470 amp cert 3000 3200 FLB PCA Stock 6950 7250 Total 198479 221020 Total 59979 61720 Long Term Long Term Land buildings 1st Bank Mtg 36000 35000 owned 190000 240000 FLB 60000 58000 leased 0 0 0 0 Total 190000 240000 0 0 Fin lease struc 0 0 Total Farm Total 96000 93000 Assets 455344 537337 Total Farm Liab 177479 190320 TW 277865 347017 NONFARM Jan 1 Dec 31 Jan 1 Dec 31 Nonfarm Assets Nonfarm Liab O 310000 Pers cash chkg amp savings 1500 1600 Cash value of life ins 3000 3200 Nonfarm RE 0 0 Auto pers sh 2000 1500 Stocks amp Bonds 0 0 Hshld furn 5000 5000 All other 0 14940 Total Nonfarm 11500 26240 NONFARM NET WORTH 11500 16240 FARM amp NONFARM Total Farm amp Nonfarm Liab 177479 200320 Total Farm amp FARM amp NONFARM e 71 5 57 32 33 5 FARM NO 38006 JANUARY 5 1990 AN T LYSIS Financial Ratios Farm Business Farm amp Nonfarm Percent equity 65 64 Debt to asset ratio Total 0 35 0 36 Long term 0 39 l Intermediate current 0 33 Ch e in Net Wor Without appreciation 50807 With appreciation 69152 273892 Debt Analysis Accounts payable as of total debt 10 Long term liabilities as a of total debt 49 Current amp intermediate liabilities as of to
28. 5 Other Stock Cert Appreciation 0 207670 Total Accrual Expenses 154483 154483 NET FARM INCOME 34842 53187 RETURN TO OPERATOR S LABOR MANAGEMENT amp EQUITY CAPITAL Net Farm Income 34842 53187 Family Labor Unpaid 750 mo 2250 2250 RETURN TO OP S LABOR MGT amp EQ CAPITAL 32592 50937 RETURN TO OPERATOR S LABOR amp MANAGEMENT Return to Op s Labor Mgt amp Eq Capital 32592 Real Interest on 312441 Average Equity Capital 5 15622 LABOR amp MANAGEMENT INCOME 16970 LABOR amp MANAGEMENT INC PER 2 00 OP MGR 8485 RETURN TO EQUITY CAPITAL Return to Op s Labor Mgt amp Eq Capital 32592 50937 Value of Operator s Labor amp Management amp 0000 40000 RETURN TO EQUITY CAPITAL 7408 10937 Rate of Return on Equity Capital 2 4 3 5 RETURN TO ALL CAPITAL Return to Equity Capital 7408 10937 Interest Paid 19100 19100 RETURN TO ALL CAPITAL 11692 30037 4 FARM NO 38006 JANUARY 5 1990 am armer 1989 BALANCE SHEET FARM BUSINESS ASSETS LIABILITIES amp NET WORTH Jan 1 Dec 31 Current Jan Dec 31 Accounts payable 5500 18600 Farm cash chkg Operating debt amp savings 13000 11200 PCA 16000 15000 Accts rec 12500 13025 0 0 Prepaid exp 200 800 Short term Feed supplies 41165 51292 0 0 0 0 Total 66865 76317 Advanced Gov Rec 0 2000 Total 21500 35600 Intermediate Dairy cows Inte tate owned 63000 76000 First Bank 18000 18000 leased 0 0 PCA 30
29. B to the blank formatted diskette in drive A type COPY B 8 A Or COPY 8 A if the data is on the hard disk Do this twice One backup diskette is now ready to be shipped to Cornell along with the check in form a copy of the printout and initialed d agnostics page Keep the other diskette as your backup This completes the operation of Micro DFBS Run Time Error 02 PCXXXX Caused by an attempt to divide by zero input to assure that all information is correct 43 DFBS ERROR MESSAGES call the authors for help Check If problem pers sts Run Time Error F PCXXXX Caused by program attempting to locate and not finding the program file Calc 000 the file is present backup disk to the program disk Check the program disk to see if If the file is not present copy the file from a I O Error l PCXXXX Caused by an attempt to open a file that the program cannot find ice s a data file that is not on the disk Check to make sure the file exists and that you are using the proper disk drive 1 Error F PCXXXX Disk full error Too many files on the data disk See the next section What to do When the Diskette Gets Full I O Error F3 PCXXXX Too many files open All See Appendix C of the above errors will cause the program to terminate and will bring the user back to the operating system After checking and correcting the cause of the problem the program may be run
30. Department of Agricultural Economics at Cornell University for additional review prior to calculation of county regional and State summaries HARDWARE REQUIREMENTS Version 2 4 of the Micro DFBS program will run on IBM PC and XT and IBM compatible computers such as Compaq with a minimum of 256K of random access memory RAM The DOS 2 0 or higher operating system is needed Either two floppy disk drives or one floppy and one hard disk are needed Printers vary from one Extension office to another and an effort is made to make the program work with as many printers as possible Most printers capable of printing in pica type 10 characters per inch 66 lines per page should work Each farm summary printout is 11 pages long and you typically need three copies one for the farmer one for your county or regional Extension office file and one to send to Cornell for the regional and State summaries Triple copy paper will allow you to print all three copies at once if a dot matrix printer is used GETTING STARTED This tutorial section will serve as a learning guide and hands on exercise in using Micro DFBS The user becomes familiar with the operation of Micro DFBS by a making backup copies of diskettes b starting the program c typing information from a sample input form d calculating and printing a summary e preparing a diskette for shipment to Cornell This tutor al assumes that a suitable microcomputer and printer ar
31. EBT PAYMENTS Creditor Amt of Planned 1990 the firse 12 Amount Amount of Debt Actual 1989 Pymts Amt Pyats characters will be Jan 1 Dee Refin of Per 989 Pymts 3 Long Term Debt zlOyrs st 3000 350090 x x 336 lal EL bO000 S000 x x 539 da Intermediate Term Debt lyr lOyrs T First Gaok 4 o09 000 x x 378 FLB amp PCA Stock 6150 22a5o Short Term Debt 1 year or less borrowed to purchase capital items X oarak Operating Debt borrowed to buy items net reduction entered as expenses in Screen 13 pianneg ir PCA joo IS000 t 3000 Zoo Accounts Payable S500 1 6 00 2500 pay 000 Advanced Gov t Rec e 2000 Total Farm Liab Pymts 7a SOSA amp amp SO 0 000 5 7000 Total Nonfarm Liab Pymts Q _ 0000 x 2doobdx 2000 __ YOO Pymns 5 200 TOTAL LIAB PYMTS SLTAYSOSIVGSSO s 3000 s F 00 not including leases 21 The values entered in the Amount of Payments and Payments Per Year columns will be multiplied together to arrive at a total annual planned payment The Payments Per Year column defaults to 12 since it is most likely the Amount of Payments column will contain the monthly payment amount However if it is more convenient to enter the total annual payment amount in the Amount of Payments column simply type a 1 in the Payments Per Year column If the payments are not monthly or annual enter
32. III Make two backup copies of the data diskette 42 DFBS ERROR MESSAGES ccc cc eee esse heh hh hen 43 WHAT TO DO WHEN THE DISKETTE GETS FULL see nnn 44 HINTS FOR INTERPRETING AND USING DAIRY FARM BUSINESS SUMMARY DIAGNOSTICS lees ehe ee hh o a 45 APPENDIX A HOW TO COMPLETE DFBS CHECK IN FORMS eee 59 APPENDIX B PROCEDURES FOR CALCULATING COST OF PRODUCING MILK 7i APPENDIX C CREATION OF A CONFIG SYS FILE ccc cere cece eh n 75 INTRODUCTION This publication s a guide to using the Microcomputer Dairy Farm Business Summary Micro DFBS computer program for analyzing ind vidual dairy farm businesses County Extension agents and regional specialists are the intended audience however college faculty in other states may also find this publication of value Farm business summary and analysis projects have long been a basic part of the agricultural Extension program in New York State Records submitted by New York State dairy farmers provide the basis for many Extension educational programs and the data for applied research studies and classroom teaching Extension offices with appropriate microcomputers have the capability to strengthen their dairy farm business analysis activities by calculating and printing the individual farm summaries for immediate use by the agent and farmer at any t me After entry in the county individual farm data is sent to the
33. January 1990 A E Ext 90 1 A A Guide to Processing Dairy Farm Business Summaries in County and Regional Extension Offices for IBM PC XT AND IBM Compatible Microcomputers Linda D Putnam Wayne A Knoblauch Stuart F Smith Department of Agricultural Economics A New York State Coliege of Agriculture and Life Sciences A Statutory College of the State University Cornell University Ithaca New York 14853 TABLE OF CONTENTS Page INTRODUCTION 222689 E el ita 8s Gas uc SES EOS TENERE EE S doe 1 HARDWARE REQUIREMENTS 2 0 0 ccc ccc eee hh rh eee eens 1 GETTING STARTED iso oii ee Hale eS RU RS DAD LES wae ae He eio ete AU t ng 1 I Make backup copies of diskettes ce eee eee 2 II Start the program ossee en Ea ee wee 9 RA Y RR UR y Elk e E a Ss 2 III Final startup instructions the INSTALL program 5 IV Enter the input data nd pedi RI PS ee I REVUE ES e DAS 7 V Verify the data ci E etes bee ter e inetd Ba edere a raed I e 27 VI Calculate and print farm summary clean 28 VII Check the diagnostics page see ee 41 XVIII Update a record ews fies hin eh a OR De HENTAI wach RUE RC RUIN 4l IX Display a record 3 8 eet Voces Rx heces e SUR Gea wed Re ee v 41 X Delete ia record soc lhe e aca ww PURA GE DESMO ER RU ERR EE NS e 41 XI HELD se oT eu ce ew Cw pa CR wa Roget cb qe Nahe whee arbi pend 41 XIL QUIE naen ue wise uM i ue Sess es E AY aeui ust qu teste pe dcl 41 X
34. Manual Feeding Management A Pro Dairy Management Focus Workshop for Dairy Farm Managers Participant s Manual 1988 Northeast Beef Farm Business Summary Farm Income Tax Management and Reporting Reference Manual FORAGE PRODUCTION A Pro Dairy Management Focus Workshop for Farm Managers Facilitator s and Participants Manual Fruit Farm Business Summary Lake Ontario Region 1988 New York Economic Handbook 1990 Agriculture Situation and Outlook Census of Agricultural Highlights New York State 1987 aor aor Oma spom Murray Prior F Stanton A Milligan A Milligan Sherman Chase Bigger Conway Chase Bigger Conway Rasmussen Smith G Fox Casler Smith Leonard Milligan Pardee vm P Snyder M DeMarree Extension Staff B Ww L Stanton Knoblauch Putnam
35. Net Personal Withdrawals from Farm on page 7 of the Business Summary will be negative Check to be certain this is accurate Total change in prepaid expenses entered as an expense does not equal the total prepaid expenses change entered as an asset The total change in prepaid expenses in Screen 13 does not equal the total prepaid expenses change in Screen 9 There must be a data acquisition or data entry problem Total change in accounts payable entered as expense does not equal change in accounts payable entered as liability The total change in accounts payable on Screen 10 does not equal the total accounts payable change on Screen 13 There must be a data acquisition or data entry problem Operating cost of producing milk is lt 8 or gt S12 cwt The operating cost of producing milk is outside the normally expected range Check all operating expenses and nondairy receipts for accuracy Screens 12 and 13 as well as total pounds of milk sold Screen 6 Total cost of producing milk is lt 10 or gt 16 cwt n The total cost of producing milk is outside the normal range Check all expenses and nondairy receipts plus interest on equity capital and value of operator s labor and management and unpaid family labor for accuracy Screens 12 13 and 7 Also check the total pounds of milk sold for accuracy Screen 6 AGEMENT PERFORMANCE MEASURES Net farm income w o appreciation n When n
36. OES NOT EXIST SETTING VALUES TO O If there is an 1 0 error F3 during calculation follow the instructions in Appendix B 9 Hold down the ctrl key and press the num lock key 29 CORNELL COOPERATIVE EXTENSION AOK kk Prepared by PRELIMINARY DEPARTMENT OF AGRICULTURAL ECONOMICS CORNELL UNIVERSITY FO OK E Name m m NY Address amp DI Box IG x FORO IOI K Qt ema 14876 EEEE KK x xx x x x x x PRELIMINARY x KOK 1989 DAIRY FARM BUSINESS SUMMARY FARM NO 38006 JANUARY 5 1990 ROGRESS OF THE US SS CT FA 1987 1988 1989 Size of Business Avg of cows 65 67 77 Avg of heifers 50 50 50 Milk sold lbs 910000 964800 1116500 Worker equiv 2 75 2 75 2 75 Total tillable acres 260 260 260 Rates of Production Milk sold per cow lbs 14000 14400 14500 Hay DM per acre tons 2 8 2 4 2 7 Corn silage per acre tons 14 14 14 Labor Efficiency Cows per worker 24 24 28 Milk sold per worker l1bs 330909 350836 406000 Cost Control Grain amp conc purch as milk sales 26 29 25 Dairy feed amp crop exp per cwt milk 4 19 4 17 4 amp 70 Labor and mach costs per cow 768 908 823 Capital Efficiency average for year Farm capital per cow 6273 6112 6446 Machinery and equipment per cow 1467 1362 1250 Capital turnover years 2 7 2 7 2 4 Profitability Net farm income w o apprec 9060 2574 34842 Net farm income w appreciation 26675 19719 53187 Labor am
37. OPY A 38006 The C prompt should reappear The Micro DFBS program may be run from the hard disk drive or from the floppy disk drive l Operating the Micro DFBS program from the hard disk drive The Micro DFBS program diskette contains all the files necessary to run the Micro DFBS program These files must be copied to your DFBS directory to be able to run the program from the hard disk If you are not already in the DFBS directory type CD XDFBS Insert the Micro DFBS program diskette into drive A and copy all the files to the hard disk by typing COPY A J The names of the files being copied will appear on the screen as they are copied to the hard disk The C prompt should reappear after all the files are copied 2 Qperating the Micro DFBS program from the floppy disk drive Insert the Micro DFBS program diskette in drive A Type A This makes the A drive the default drive With the Micro DFBS program operating from the A drive you will need to store the data files on the C drive as there is insufficient space on the program diskette The Install program described in Section III will enable you to specify the C drive for data storage Note The MD DFBS and COPY commands need to be used only once the directory and files will remain after the session is ended and can be used in future sessions C You are now ready to run Micro DFBS Type DFBS You should see the main menu MAIN MENU DATE
38. PPLY INVENTORY r CT eae TER 1 Feed amp Supply Irventcry Beg Year End Year Inventory Change i Total Grown Feeds 31500 4 2985 1 485 Purchased Feeds Dairy Grain amp Cone t 3400 3250 250 i Dairy Rougnage 0 3 0 5 p Non3airy Feeg 0 3 C 0 j Supplies N Machine Parts 200 i 245 25 t Fue Oil Grease 11 Ei 7 28 i Livestock Senen C s 0 Vet Supplies 80 7 20 Other Supplies 200 125 25 Crops Fertilizer 5003 3000 2000 Seeis 509 t 500 Pesticides and Other 3 250 250 Land Bldg Fence 500 400 100 Other o o Total Feed amp Supplies 411365 51292 5There are four kinds of spaces on the check in form for work space for data entry items J for calculated values and x x for optional nput 13 Data entry in Screen 4 Livestock Inventory starts with leased dairy cows then continues across the remaining rows All totals are calculated The per Head columns are calculated after the number of head and total value entries are made for each row If you prefer to enter per Head values type return enter for Total Value and the cursor will move back to the per Head column Enter the value per head and press return enter and the Total Value will be calculated Once the Total Value has been calculated the cursor will not return to the per Head space If there were previous year s data the be
39. Sampel Farmer the following message would appear on the screen ENTRY DOES NOT MATCH PREVIOUS ENTRY The program will give you this kind of message for up to three tries On the fourth try if it still does not match a previous entry the following message will be displayed LAST ENTRY DIDN T MATCH ACCEPTED WITHOUT QUESTION At this point you are on your own to see that the entry is correct Use the cursor key t to move back to the incorrect entry and retype it In Screens 2 through 14 where the entries are numeric not character data the value you are verifying will appear as a zero Re enter the data for all the screens The cursor movement and movement between screens are done the same as in the Create Update Display Record option When you have completed the verification process on Screen 14 the program vill return to the main menu 28 VI Calculate and print farm summary You are now ready to calculate and print a dairy farm business summary Use the cursor key to move down to Calculate and Print Farm Summary You will be prompted for the farm number Type 38006 return enter The following will be displayed on the screen BEGINNING CALCULATIONS If you get error 02 you may have missing data DFBS CALCULATION PROGRAM ENTER DESIRED OUTPUT DEVICE S creen P rinter F ile or Q uit Select the appropriate output device l Type S to have the output be displayed on the screen The output will s
40. abor Unpaid 2 250 Accrual Receipts Less Milk Sales 42 355 Total Cost of Producing Milk Excluding Operator s Labor Management amp Capital 114 378 Total Accrual Expenses 154 483 Family Labor Unpaid 2 250 Value of Operator s Labor amp Management 40 000 Real Interest on Equity Capital 15 622 Accrual Receipts Less Milk Sales 42 355 Total Cost of Producing Milk9 170 000 a Same example as in Section VI of this publication b Considering only operating costs this measure shows how you are doing on cost control in operating the business If milk receipts are less than this measure the farm has serious milk production profitability troubles which must be corrected immediately if the business is to survive c Considering all costs except the opportunity cost of operator s labor management and equity capital this measure after being subtracted from milk receipts will show the return from milk production to the above mentioned factors of production If milk receipts are less than this measure of cost of producing milk the business has milk production profitability difficulties If the operating cost of producing milk is less than milk sales but this measure is more than milk sales the farm business is contributing to but not totally covering fixed costs This situation must be corrected for long run business survival Considering all costs of producing milk including the opportunity cost of operator provided inputs th
41. all acres that normally are cropped either in row crops hay crops or cropland pasture Pasture acres owned and rented should include all acres of pasture that are not cropland Nontillable woodland and other acres owned would then be included and the three would add to total acres owned rented and to the total acres in the farm business Screen 8 Tillable Land Use page 5 The purpose of this section is to obtain a complete accounting of the tillable acres in the farm business and an accurate record of the cropping program of the farm business This record is an essential part of the business summary The forage crops should be separated into hay hay crop silage corn silage and other forage crops harvested could include green chop small grain silage and sudan sorghum silage Enter only the first cut acres for all hay crops on the first line The measure of production of the roughages is the total tons of dry matter The intermediate columns of total production and percent dry matter are used to assist in calculating the total tons of dry matter Total production of all hay crops are divided into dry hay and hay crop silage The total production of corn for grain oats and wheat should be reported on a dry bushel equivalent Worksheet 5 is included on the opposite page for conversion of corn to a dry shelled basis 66 Clear seeding acres should be entered under hay unless another crop is grown on those acres and considered the maj
42. as usual COMMON PROBLEMS Message Program won t recognize a farm record file Disk error on drive A or B or C CAN T OPEN FILE or other cycling keyboard won t respond Interpretation File extension year example 89 must be one less than the year you entered when you turned the computer on or typed DATE Diskette not inserted door not closed bad diskette Drive out of alignment Cannot locate a file Solution Rename the file changing the file extension See your DOS manual RENAME command Insert diskette Close door Try again or copy files from other drive Replace diskette Service disk drive Check file name Use DIR command to check disk to see if file exists If the program locks up the user can exit by pressing the Ctrl and C keys at the same time or if that fails by turning the computer off Please notify the authors 607 255 8429 of any problems 19 YXXX will be replaced by a number Make note of this number It is useful information to the programmer if there is a persistent problem 44 WHAT TO DO WHEN THE DISKETTE GETS FULL A diskette formatted in DOS 2 1 holds about 360K of data The Create Update Display Record option creates a data file for each farm which is about 9K in size The two previous year s data files total 1K Calculate and Print Farm Summary has the option to create a file the one with the prn extension which is 35K So it takes
43. croll so use Control num lock keys or the Pause key to stop the output from scrolling Hit any key to continue scrolling 2 Type P to have the output printed on your printer You will be prompted for the number of copies to print Before entering the number be sure to have your printer on and the paper set at the perforation The program will advance the paper a couple of lines before starting to print 3 Type F to have the calculated output stored on your disk in text format The file name will be made up of the farm number with a file extension of prn farm no gt prn This file will be stored on the disk that you specified when you ran the install program This option is useful when you want to load the output into a word processing package or print from DOS 4 Type Q to go back to the main menu After you select one of the above you will see the following message Enter A to print All pages D to print Diagnostics or Number of Page Typing A return enter will display print or file the 11 pages of output plus the diagnostic page D a gives the diagnostic page only and entering a number from 1 to 11 gives you that page number See Appendix A for the procedure used to calculate costs of producing milk that are printed on page 9 of the following output TIf there were no previous year s data the following messages will also be displayed 1988 FILE DOES NOT EXIST SETTING VALUES TO O 1987 FILE D
44. crual receipts screen The inventory changes for purchased feeds and supplies are calculated by subtracting the end year inventory value from beginning year value for each item These inventory change values are then transferred to Screen 13 the accrual expenses screen Use the cursor i key or l return enter to skip zero entries Total Total 1 4 H SCREEN 3 K i Inyentorv Change Total Grown Feeds 531500 543985 SJA HES PURCHASED FEEDS 3 Dairv grain conc aeT TT s 32400 AST xf 78 75 3 50 _ RSO Dairv roughdges Capre kers 10 924 afaire Sakana bAa Aa LA D Nondairy feed DRM ccc C SUPPLIES Machine Parts Bou m0O X 0 TRS Fuel cil grease tbr f 1 Pipl Tal 1 feft g7 3 SUVESCOCKS Semen sole Cites eG AMAA imc oy D CA Lc Vet supplies p D e Pe 79 Tap Other supplies pe Fix POO y heen Z2 5 TRS Cress Fertilizer 2 inne o0Q 1s 3000 A00 Seeds see 0 so o0 00 SOQ Pesticides Other 49 maraa ocou u eter tM axo ASD Land Bldg Fence 0 o o OO f00 Other2 iisp4e94e0s GV VOS UO Wie ON oe los Vei raed CE Eat Total Feed amp Supplies Inventory changes are calculated total grown feeds end year beginning year and is carried over to Screen 12 purchased feeds and supplies beginning year end year and are carried over to Screen 13 Farm Ue 8026 Screen 3 FEED amp SU
45. ded This number will be added to owned dairy cows at end of year when computing debt levels per cow For owned livestock this section is used to obtain information on the inventory of livestock at the beginning and end of the year and to separate the change in inventory during the year into the change a that results from changes in numbers and or qualities of livestock and b that result from price changes during the year The screen is designed to help inventory the livestock by categories The heifer inventory allows space for three categories bred heifers open heifers 6 months to breeding and calves under six months The information required is the number and value at the beginning of the year the number and value at the end of the year using beginning of year prices and the value at the end of the year using end of year prices The value per head columns are calculated If you prefer the values per head may be entered and the total value columns will be calculated The quantity and value for beginning of year inventory can either be taken from last year s end of year inventory if accurate information is available or can be calculated based on the livestock on hand and the value per head at the beginning of the year The end of year inventory is more complex since the livestock numbers at the end of the year need to be valued both at beginning of year prices and at 63 end of year prices in order to separate the increase
46. depreciation Check to see if depreciation is within the expected range but is not correct Screen 2 Low depreciation often results in appreciation that is unrealistically high In normal years of low to moderate inflation machinery appreciation is expected to be less than machinery depreciation 1 Machinery appreciation n When n 108 of beginning machinery inventory Reported machinery market values fell more than was accounted for by depreciation Screen 2 While this is possible especially in periods of soft machinery markets the decrease was more than 10 of beginning machinery inventory Check to see if all values especially depreciation are correct 46 FEED AND SUPPLIES Feed and supply inventory increase gt 25 Feed and supply inventory increased beyond what would normally be expected Screen 3 Check to see if physical quantities and or prices increased from beginning to end of year Feed and supply inventory decrease gt 25 Feed and supply inventory decreased beyond what would normally be expected Screen 3 Check to see if physical quantities and or prices decreased from beginning to end of year LIVESTOCK INVENTORY End of year bred open or calf heifer inventory at beginning prices beginning of year inventory but no increase in bred open or calf heifer numbers Two possible explanations exist 1 An increase in the quality of heifers has occurred 2 The average
47. e The Change in Inventory values are calculated from the beginning and end year inventory values in Screen 3 page 2 beginning year end year change in inventory The computer program will display on Screen l4 the total accrual expenses for the crop expense categories from Screen 13 at the time of data entry The All other crops line will be calculated using the accrual expense totals less the values entered in the first two lines of the screen for hay crop and corn Unless you have a better basis for allocation allocate lime expenses proportionately across all crop acres to allow for the fact that benefits extend to crops grown in future years not just the first year Charge fertilizer chemical and seed costs to the crop applied to Of course fertilizer and chemicals can have carryover effects on future crops as well but in most cases it would be impossible to accurately allocate these carryover effects 71 APPENDIX B PROCEDURES FOR CALCULATING COST OF PRODUCING MILK 72 73 PROCEDURES FOR CALCULATING COST OF PRODUCING MILK 1989 DAIRY FARM BUSINESS SUMMARY Example Total Accrual Operating Expenses 124 588 Plus Expansion Livestock Expense 9 000 Accrual Operating Expenses Including Expansion Livestock 133 588 Total Accrual Receipts 189 325 Less Accrual Milk Sales 146 970 Accrual Receipts Less Milk Sales 42 355 Operating Cost of Producing Milkb 91 233 Total Accrual Expenses 154 483 Family L
48. e such as an off farm enterprise commitment to farm organizations or family commitments less than 12 months would be appropriate In addition for each operator indicate their age their years of education and the estimated value of their management and labor input This value should be based on what that person could earn in a similar capacity in similar employment Any farm expenses for labor or perquisities for these operators should be excluded from the labor expenses entered later in the input This exclusion will probably be most relevant for corporations but may also apply to other businesses In addition the total months of family labor who are paid the months of family labor not paid and the total full time months of hired labor should be recorded The full time months can then be totaled and divided by 12 to determine the worker equivalent The conversion to full time worker month equivalents is necessary conversion is not always easy but is very important to an accurate summary A high school student may provide three months of worker month equivalent labor during the 10 month school year by working part time Convert hourly labor on the basis of 230 hours per month Screen 7 Land Inventory page 5 The purpose of this section is to obtain a complete accounting of the owned and rented acreages included as a part of this farm business First the tillable acres owned and rented should be entered Tillable acres should include
49. e 200 679 Tons DM 3 40 Tons DM Corn grain 35 3300 Bushels 94 29 Bushels Oats 10 560 Bushels 56 00 Bushels Wheat 0 0 Bushels 0 00 Bushels Other crops 0 Tillable pasture 15 Idle tillable land 0 Total tillable acres 260 op Relate cc enses Total Hay Crop Corn Corn Grain Till Per All Corn Silage Per Dry Crops Acre Per Acre Ton DM Per Acre Ton DM Shell Bu Fert amp lime 38 08 26 14 9 80 58 78 12 00 0 62 Seeds amp plants 12 69 7 64 2 87 20 32 4 15 0 22 Spray other crop expense 11 50 5 23 1 96 21 83 6 45 0 23 Total Crop 62 27 39 02 14 63 100 93 20 60 1 07 i Tota en Per Tillable Acre Fuel oil amp grease 4028 15 49 Machinery repair amp parts 7275 27 98 Machine hire rent amp lease 2240 8 62 Auto expense farm share 500 1 92 Interest 5 4600 17 69 Depreciation 14280 54 92 hi 923 26 6 Crop Cow Factors Total Tillable Acres per Cow 3 38 Total Forage Acres per Cow 2 60 Harvested Forage Dry Matter per Cow 8 82 37 9 FARM NO 38006 JANUARY 5 1990 AIRY ALYSIS Dairy Inventory o Heifers Dairy Cows Bred Open Calves No Value No Value No Value No Value Beg of Year 70 63000 10 8500 20 13000 20 9000 Change in Inv w o apprec 9000 8500 0 4500 Appreciation 4000 1000 0 0 End of Year 80 76000 20 18000 20 13000 10 4500 Total End incl leased 80 Average Number 77 50 All Age Groups Milk Production Total milk sold 1116500 lbs Milk sold per cow 14500 lbs Average m
50. e available and the user knows how to operate them Microcomputer hardware requirements were explained above If you are not familiar with the operation of your microcomputer and operating system refer to its DOS manual I Make backup copy of diskette You should have received a program diskette that also has sample data on it Make a copy of this diskette put the original diskette in a safe place and use the copy Use the DOS copy command For example on a computer with two floppy disk drives after booting the computer place the diskette to be copied in Drive A and a blank formatted diskette in Drive B and type copy a b return key The names of the files being copied will appear on the screen as they are copied The sample farm has three data files on the diskette lt 38006 gt 89 is the current year s data file lt 38006 gt 880 is the 1988 output file and lt 38006 gt 870 is the 1987 output file The 1988 and 1987 output data files are required for use by the current year data file farm no gt 89 in order to print a Progress of the Farm Business table on page 1 of the output The 1989 data file contains data from the 1988 data file such as beginning of year inventory values and beginning of year assets and liabilities II Start the program Important be sure to always enter the correct date when you start the computer to run Micro DFBS Micro DFBS prints this date on the summary printout It also assu
51. e certain interest and penalties have not been included Liability 0 but no scheduled payment liability jn Liabilities are greater than 0 but scheduled debt payments are 0 indicates that the payments were inadvertently omitted or in fact that no payments are scheduled Screen 10 Check to make certain the data is accurate Decrease in liability from beginning to end year does not equal principal paid If no new money was borrowed the decrease in the liability amount from beginning to end year should equal the amount of principal paid during the year Check to make certain the data is accurate Screen 10 Amount of money borrowed entered does not equal calculated money borrowed Jer If a value was entered in the amount of new borrowings column Screen 10 it should equal the calculated value for money borrowed The formula for calculating money borrowed is end year liability beginning year liability principal paid Check to make certain the data is accurate Screen 10 53 FINANCIAL LEASES Leases cattle but no lease expense Cattle are leased Screen 11 but lease expense is 0 Screen 13 Check to be certain cattle lease is not included with machinery or real estate lease and the cattle are in fact leased not rented Leases equipment but no lease expense Equipment s leased Screen 11 but lease expense is 0 Screen 13 Check to see if cattle or real estate lease includes equipm
52. ear inventory less the total beginning inventory after changes is equal to machinery appreciation This value is then used as the contribution toward ownership income from machinery and equipment If machinery appreciation appears to be too high or too low given changes in prevailing mach nery and equipment prices during the year one might consider some of the following possible causes If change in inventory due to price appears to be too high check the following possible causes a There are more new items in the inventory book than listed as capital purchases b New items were not depreciated this year or were valued at list price rather than at a value based on cost c Trade ins and other dispositions were not removed from book d Machinery was revalued upward during the year and beginning inventory was not adjusted in the same direction If change in inventory due to price appears to be too low check these possible causes a New items were not all listed in inventory book b Items acquired through trade were not valued correctly 62 c Items no longer in use were removed from end inventory or devaluated without corresponding changes to beginning inventory d Machinery was revalued downward during the year and beginning inventory was not adjusted in the same direction Worksheet 3 Grown Feed Inventory Worksheet page 2 This worksheet is used to calculate the grown feed inventory at the beginning and
53. ecorded in inventory to represent year end market values of machinery and equipment purchased Make sure traded items are removed from this year s inventory Do not include any leased items We will assume the list of capital purchases and dollar amount reported here are correct and it will take ecedence over other sts that may be included in the record Worksheet 2 Machinery and Equipment Sold or Destroyed page 1 List machinery and equipment that was disposed of by outright sales and items that were destroyed by fire flood and other disasters Do not list items traded in here Report insurance received from machinery destroyed and check to see that all dispositions are removed from the end inventory Add insurance received from machinery destroyed to total machinery and equiment sold and enter the total in Screen 2 As with the machinery and equipment purchased only the total mach nery and equipment sold including insurance proceeds is required to complete a business summary consequently if the farm records are complete and accurate Worksheet 2 is not needed for input and need not be used 61 Screen 2 Machinery and Equipment Inventory and Depreciation page 1 The information to be collected in this sect on is required to calculate the ownership costs incurred in maintaining an inventory of owned machinery and equipment and to calculate the increase or possibly decrease in the value of the machinery complement resulting fr
54. end of year Space is provided to enter quantities of the various grown feeds their market value per unit and the calculated market value for each grown feed The total values of the grown feeds at beginning and end of year need to be calculated and entered in the appropriate spaces in Screen 3 The change will be computed and will appear on Screen 12 as a change in crop inventory Inventory growth will produce a positive change or increase in crop receipts Screen 3 Feed and Supply Inventory page 2 Report beginning and end market values of purchased feeds and supplies in Screen 3 Workspace is provided for the quantity and market value per unit for the purchased feed and supply categories to assist in the calculation of the total value for each item at beginning and end of year Of course if an accurate accounting was made for the previous year the end of year inventory should be used for the beginning of year inventory for this year The beginning of year data is not optional it is required If winter wheat is grown be sure to include in grown feed end of year inventory Worksheet 3 the value of the crop based on the cost incurred in growing it Unused silage bags should be entered as supplies in the land bldg fence category The footnote for Screen 3 explains how inventory changes are computed and their effect on accrual expenses Screen 4 Livestock Inventory page 3 Report all leased dairy cows at end of year in the space provi
55. ent Screen 13 and if equipment is in fact leased Leases structures but no lease expense Structures are leased Screen 11 but lease expense is 0 Screen 13 Check to see if cattle or real estate lease includes equipment Screen 13 and if equipment is in fact leased RECEIPTS Milk price lt 11 or gt 15 Price per cwt Milk price is outside the normal range Check to see if pounds of milk sold are under reported Screen 6 milk sales gross is over reported Screen 12 or a Jersey herd is being summarized Sereen 6 Tillable crop acres per cow gt 4 but 0 crop sales Tillable crop acres per cow are high Screen 7 but not crop sales are reported Screen 12 Check to see if crop yields are low Screen 8 or inventories of feed and supplies increased Screen 3 No dairy cattle sales This statement indicates that dairy cattle sales on Screen 12 is blank Check to see if this was overlooked when gathering data or not entered in the computer No dairy calf sales This statement indicates that dairy calf sales on Screen 12 is blank Check to see if this was overlooked when gathering data not entered in the computer or if in fact all calves were either raised or died and therefore no sales existed Government receipts other receipts or miscellaneous receipts 5 000 Government receipts other receipts or miscellaneous receipts are greater than normally expected Verify that the entr
56. ents Payments Leased Item Each Pymt in 1989 Expense Full Year Remaining Equipment Structures v www www w www 23 Screen 12 is the Summary of Yearly Receipts and Changes in Inventory and Accounts Receivable The pounds of milk sold will be displayed on the screen when it is first brought up This value was entered earlier in Screen 6 The change in inventory values are also displayed The dairy cattle change in inventory value is calculated from the dairy cow and heifer values entered in Screen 4 The other livestock change in inven tory value is calculated from the bulls and other livestock values entered on Screen 4 The crops change n inventory value is calculated from the grown feeds inventory on Screen 3 The change in advanced gov ernment receipts is calculated from the liabilities entered in Screen 10 There is work space to itemize other receipt items only the total is entered The order of data entry is across the rows The calculated values include the change in inventory column accrual receipts column and the total accrual receipts row For any negative values in the Change in Accounts Receivable column must type the negative sign you SCREEN 12 Change in Casi Change in Accounts s Accrual 20S Receiris Inventory _necejvabie Receipts Lie 500 JMS M S ocxxxxx fas siie 470 sir scele 134200 5 13 000 E 27300 Dairy Calves L63c axiduooea 330 liber Livestock e
57. er forage if harvested as oatlage Screen 8 Tons DM harvested per cow lt 4 or gt 12 an Tons of dry matter harvested is outside normal range Check dry matter harvested calculations cow numbers and feed purchases for consistency Tillable land all acres does not equal total tillable acres Calculations on Screen 7 and Screen 8 are not correct consistent Review the data entries for accuracy and recheck your math ASSETS AND LIABILITIES Scheduled debt payments 0 35 of milk sales Scheduled debt payments are 10 percentage points above the average Screens 10 and 12 Check milk sales and debt payment schedule for accuracy Long term debt 0 80 of land and building inventory Long term debt is higher than normally expected Check to see if data is entered correctly Screen 10 Falling asset values may have contributed to creation of this situation as well as increased borrowing Farm net worth lt 0 30 of farm capital NW a Farm net worth is lower than normal Screen 10 Check all calculations for accuracy Falling asset values and increased borrowing may have contributed Debt per cow gt 3 500 e Debt per cow is above average Check for accuracy of data Screens 6 and 10 Accounts receivable 5 of milk sales The December milk check may not have been included as an account receivable Screen 12 Check to see if all accounts have been included Intermediate term debt t
58. farm debt payments 55270 Ending farm cash checking amp savings 11200 TOTAL 213500 Imbalance error 0 35 7 FARM NO 38006 JANUARY 5 1990 REPAYMENT ANALYSIS Planned Made in Planned ents for 1989 41289 for 1990 Long term 10988 10000 10980 Intermediate term 12639 6500 12636 Short term 0 0 0 Operating net reduction 4000 1000 L000 Accounts payable net reduction 1000 0 1000 Total 28627 17500 28616 made of planned 61 Per cow 372 227 Per cwt 1989 milk 2 56 1 57 Percent of total 1989 receipts 15 9 Percent of 1989 milk receipts 19 12 If on Business Summary in 1988 ow age lo Cash Farm Receipts 165315 Cash Farm Expenses 109730 Interest Paid 17000 Net Pers Withdls from Farm 32835 A Amount Available for Debt Service 39750 B Debt Payments Planned for 1989 28627 A B Cash Flow Coverage Ratio for 1989 1 39 Personal withdrawals amp family expenditures less nonfarm income and nonfarm money borrowed 36 8 FARM NO 38006 JANUARY 5 1990 CROPPING PROGRAM ANALYSIS Land Owned Rented Total Tillable 200 60 260 Nontillable 30 10 40 Other nontillable 160 5 165 Total 390 75 465 Total Production Crop Yields Acres Production er Acre Dry hay 128 Tons DM Hay crop silage 192 Tons DM Total Hay Crop Production 120 1320 Tons DM 2 67 Tons DM Corn silage 70 980 Tons 14 00 Tons 343 Tons DM 4 90 Tons DM Other forage 10 16 Tons DM 1 60 Tons DM Total Forag
59. g entered on a computer in the county enter the work units for other livestock Use Table 1 page 16 of the Micro DFBS User s Manual as a guide Total pounds of milk sold is the total weight reported by the milk plant Average milk plant test is not used to convert to a 3 5 equivalent It is used as a reference only Check the appropriate item under Production Record Milking System Business Type Milking Frequency Dairy Housing and Primary Financial Recordkeeping System Under milking frequency check 2x day if all cows were milked twice a day for the entire year check 3x day if all cows were milked three times a day for the entire year or check other if a port on of the herd was milked three times a day or the total herd was milked three times a day for part of the year 65 Screen 7 Labor Inventory page 5 Begin by identifying the operators of the farm Operators should include all individuals who are integrally involved in the operation and management of the farm business They are not limited to those who are the owner of a sole proprietorship or are formally a member of a partnership or corporation In instances where a husband and wife operate and manage the farm as a team both may be included as operators The labor input of each operator should then be specified in months In most instances this is 12 months but in some instances where one or more operators of the farm business have other items occupying their tim
60. ginning of year inventory values will be displayed LIVESTOCK SCREEN 4 Number of leased rented dairy cows at end of year QO December 31 1989 Inventory Using Jan d 198 Inventory 1 1 89 Prices 12 31 89 Prices per Total per Total per Total No Hea Valu No Head Value d Value Dairy Cows Jo s o s 63000 So s900 s 12000 s25o s ooo Total Dairy Cows 10 63000 0 72000 76000 Heifers Bred Heifers 0 50 5co AO s9850 s 17000 400 sl ano Open 6 mo bred RO 650 23000 Ro 650 13000 50 3000 Calves lt 6 mo 20 450 4000 lO 480 Soo M50 4500 Total Heifers SO 20 900 50 531500 35 900 Bulls amp Other Lvstk Dowy Steers Os s O _4 s 400 s G00 400 5 600 iivestock 5 9 4 9 16 00 s 16 00 Total Livestock L120 523500 134 0 0C 5 3100 Farm No 38006 LIVESTOCK INVENTORY Screen 4 Leased Dairy Cows End Yr End of Year Inventory Using o Beginning of Year Beg Prices End Prices per Total per Total per Total No Head Value Head Value Head Value Dairy Cows 70 900 80 900 72000 950 76906 0 o 0 0 0 o 0 d Total Dairy Cows 70 63000 80 72000 76000 Heifers Bred 10 850 8500 20 850 17000 900 18000 Open 20 650 13000 20 50 13000 656 13005 Calves 20 amp 50 9000 10 450 4500 450 amp 50u Total Heifers 50 30500 50 34500 35500 Bulls Other Lvstk 0 0 0 amp 400 1600 400 1600 0 0 0 0 0 0 0 0 Total Bulls
61. hase contracts The total yearly expense is calculated by multiplying the amount of each payment times the number of payments for the year The total yearly expenses for each item are added to get the total expense for cattle equipment and structures The totals must be entered under expenses on page 11 The total expense for cattle is entered under cattle lease the total expense for equipment is entered under machine hire rent and lease and the total expense for structures is entered under real estate rent lease 68 Enter the number of payments in a full year and the number of payments remaining for each item From this information present values for assets and liabilities can be computed for the leased items Worksheet 6 Changes in Operating Accounts Receivable page 8 The purpose of Worksheet 6 is to assist in calculating the changes in operating accounts receivable and to allocate the changes to the appropriate receipt category for entry in Screen 12 page 9 If there are no operating accounts receivable other than the January milk check it is not necessary to use the worksheet Simply calculate the difference in the account receivable from beginning to end of year and enter that value in Screen 12 in the space for Milk Change in Accounts Receivable Note To calculate the correct change in accounts receivable subtract the beginning of year balance January 1 1989 from the end of year balance December 31 1989 to get the i
62. he message below Note Use this key with caution On screens with totals or computed values use or i to move through the entire screen so values are calculated PgDn or RETURN next PgUp previous screen Esc to exit or of Screen The above message or command line allows you four courses of action 1 PgDn or RETURN will take you to the next screen 2 PgUp will take you to the previous screen 10 3 Esc will exit the screen and take you back to the main menu 4 of Screen i e enter the number of any screen to move to that screen It is not necessary to E Return Enter after entering the Screen Screen 1 FARM INFORMATION Verified NJ i Farm No 38006 il Operator s Name Sample Farmer Farm Name Sam Hill Address RD1 Box 19 i fi City iss ORTES Dairytown State ls ets 3 NY Zip 9 19876 i County s ROCKLAND Phone Tes aca 6071255 8429 1 Irregular x PgDnlJor RETURNJ next PgUpl previous screen Esc to exit Or of Screen Move to Screen 2 by typing as many times as necessary You should see Screen 2 Farm No 38006 Screen 2 MACHINERY AND EQUIPMENT INVENTORY AND DEPRECIATION Machinery amp Equipment Inventory Beginning 90000 End o M Machinery amp Equipment Purchased 0 Noncash Machinery Transfer to Farm 0 Machinery amp Equipment Sold 0 1989 Tax Depreciat
63. i Farm No 38006 Screen 2 MACHINERY AND EQUIPMENT INVENTQR 1 PEPREGTATION Machinery amp Equipment Inventory cli 90000 End s 94000 Machinery amp Equipment Purchased 10800 Noncash Machinery Transfer to Farm s 5000 Machinery amp Equipment Sold 1250 1989 Tax Depreciation 14280 Total Beginning Inventory After Changes 90270 Machinery Appreciation end less beginning after changes 3730 eee M M Screens 3 through 14 are handled in a similar way and as with Screen 2 are designed to resemble the check in form as closely as possible Now finish typing the farm information for Sam Hill into Screens 3 through 14 using the data on the following pages After Screen 14 you should be back to the main menu 12 Screen 3 Feed and Supply Inventory has three columns two of which are for data entry The beginning and end year columns are entered and the beginning and end year totals and inventory change column are computed The check in form has additional columns in Screen 3 for quantities and per unit however these are work spaces 5 If there were previous year s data the beginning of year inventory values will be displayed The order of data entry is across the rows The inventory change for grown feeds is calculated by subtracting the beginning year inventory value from the end year inventory value This inventory change is then transferred automatically to Screen 12 the ac
64. ilk plant test 3 40 butterfat Accrual Receipts From Dairy Total Per Cow Per Cwt Milk 146970 1909 13 16 Dairy cattle including culls 27300 355 2 45 Dairy calves 1330 17 0 12 Total 175600 2281 15 73 A ual Cost of Produci Milk o ethod Operating cost of producing milk 91233 1185 8 17 Total cost of producing milk excluding operator s labor management amp capital 114378 1485 10 24 Total cost of producing milk 170000 2208 15 23 Dairy Related Accrual Expenses Purchased dairy grain amp concentrates 36250 471 3 25 Purchased dairy roughage 0 0 0 00 Total Purchased Dairy Feed 36250 471 3 25 Purchased grain amp concentrates as of milk receipts 25 Purchased feed amp crop exp 52440 681 4 70 Purchased feed amp crop exp as of milk receipts 36 Breeding 2300 30 0 21 Veterinary amp medicine 1980 26 0 18 Milk marketing 8500 110 0 76 Cattle lease 0 0 0 00 Other livestock expense 5565 72 0 50 D H I PIPELINE STANCHION 2 TIMES DAY 38 10 FARM NO 38006 JANUARY 5 1990 CAPITAL amp LABOR EFFICIENCY ANALYSIS Capital Efficiency Average for Year Per Tillable Per Tillable Per Worker Per Cow Acre Acre Owned Farm capital 180488 6646 1909 2482 Real estate 2792 1075 Machinery amp equip 35000 1250 370 Capital Turnover years 2 39 Years of Value of Labor Force Months Age Education Labor amp Mgmt Operator number 1 12 51 14 20000 Operator number 2 12 28 16 20000 Fami
65. in inventory into two parts Unless large numbers of animals have been purchased of a different quality or the composition of the animals in the group has been altered significantly during the year the value per head using the beginning of year prices is the same as the value per head in the beginning of year inventory Situations which could result in the value per head in the beginning of year nventory and the value per head using beginning of year prices for the end of year inventory being different include 1 the purchase of a large number of animals of higher quality than those previously in the herd and 2 the average age of calves in the end inventory being two or three months more than those in the beginning inventory Finally the end of year inventory at end of year prices is the same number of head as for the end of year inventory at the beginning of year prices times the value per head based on the market price of the livestock on December 31 of the summary year Worksheet 4 Land and Buildings Purchases and Sales page 2 In this section only the totals for cost and lost capital of new purchases and capital improvements and sale price amount received and beginning inventory value of capital sales and losses are required If the cooperator has an accurate record of his or her real estate transactions these totals can be taken from that record if the cooperator does not Worksheet 4 can be used to assist in calculating the totals
66. income The section at the bottom of Screen 12 is used to record nonfarm cash inflows The last line in Screen 12 is for noncash capital transferred to the farm business for cattle crops etc excluding machinery enter in Screen 2 and real estate enter n Screen 5 See the bottom of page 9 of the check in form for further guidelines to recording the farm and nonfarm receipts Worksheet 7 es in erating Accounts Payable page 10 The purpose of Worksheet 7 is to assist in calculating the changes in operating accounts payable and to allocate the changes to the appropriate expense category for entry in Screen 13 page ll If there are no operating accounts Payable do not use the worksheet go directly to Screen 13 on page ll When Worksheet 7 is used enter the end of year balance then enter and subtract the 69 beginning of year balance to obtain the correct change in accounts payable The total of the column Balance 12 31 89 in Worksheet 7 must equal the value in Screen 10 page 7 for Accounts Payable December 31 1989 The total of the column Balance 1 1 89 in the worksheet must equal the value in Screen 10 for Accounts Payable January 1 1989 The totals of the two Change in Accounts Payable columns in Worksheet 7 must be equal They must also equal the total of the column Change in Accounts Payable in Screen 13 page ll See the bottom of page 10 of the check in form for further guidelines to recording changes in acc
67. ion 0 Total Beginning Inventory After Changes 90000 Machinery Appreciation end less beginning after changes 90000 Part of page 1 of Sample Farmer s check in sheet the machinery inventory and depreciation information is shown below The arrows show where each item is typed into Screen 2 of Micro DFBS The computer doesn t know what to do with commas or spaces within or to the left of numbers so 11 don t e t commas If there were previous year s data the beginning of year inventory value will be displayed If this value does not need to be revised press return enter to move to the next item If it needs to be changed simply type the revised value over the existing one Enter the data called for Use to move from one item to the next one below The bottom two items marked with are calculated by Micro DFBS When you have entered all the data for Screen 2 advance to Screen 3 by typing PgDn SCREEN 2 INVENTORY amp DEPRECIATION do not include leased items Beginning of Year Inventory 90 ooo End of Year Inventory 94 000 Machinery amp Eguipment Purchased 0 2o Qo Nencash Mach Transfer to Farm s e g gifts inheritances j20o Machinery amp Equipment Sold 250 1989 Tax Depreciation E 2o Total Beginning Inventorv After Chang s 90 270 Machinery Appreciation end less beginnipg after amp hftrcsp 3 730 7Exclude buildings and cattle from ACRS d preciatibn i
68. ion Livestock For Year Record Milking System Business Type Dairy Cows 77 1 D H I 3 PIPELINE 2 PARTNERSHIP Heifers dairy 50 Bulls Other r Financial Milk Production Milking Dairy Recordkeeping Frequency Housing System milk sold lb 1116500 i 1 2X DAY 1 STANCHION 2 ACCT BOOK Average Milk Plant Test 3 40 B F 16 Table l Work Units For Livestock and Crops Work units per aci et C ge Tesg or per Apre Livestock Beef cows Horses Hens production only Egg processing per dozen Pullets raised Broilers raised Brood sows Hogs raised Ewes 04 002 004 003 OQtuwoooototo Crops Barley Dry beans Potatoes Cabbage Snap beans for processing Sweet corn Onions Apples growing Apples harvest per bushel p QO PrtoL bL bUAioom bnbo 02 m Work off farm days Livestock Dairy cows 7 Heifers Bulls NO ho Crops Hay Hay crop silage Corn silage Other forage harvested Corn for grain Oats Wheat Tillable pasture oOOooOoooooo HANA OOH Work units for the primary enterprises are built into Micro DFBS and are not entered by the user They are provided here for information only 17 In Screen 7 the order of data entry for the labor and land inventory is across the rows The total months of labor worker equivalent and land inventory totals are calculated If there were previous year s data the entire land inventory sectio
69. is measure is the best indicator of long run business survival On many farms the total cost of producing milk will be less than milk sales This does not imply the business is doomed If milk sales are greater than the previously discussed two measures of cost of milk production but less than the total cost of producing milk the business is not returning the total opportunity cost of operator provided inputs For long run business survival farms should strive for milk sales to meet or exceed this cost of producing milk 74 75 APPENDIX C CREATION OF A CONFIG SYS FILE 76 77 CREATION OF A CONFIG SYS FILE In order for the program to work properly a CONFIG SYS file must exist in the root directory of a hard disk or on the MSDOS or PCDOS boot diskette of a floppy based system To see if such a file exists use the DIR command to get a directory of the existing files in the root directory For example on a hard disk you would type DIR C NCONFIG SYS and press return If the file exists it vill be listed on the screen if the file is not present a message FILE NOT FOUND vill be displayed Existing files will need to be edited This can be done by using the EDLIN command To use this command type EDLIN CONFIG SYS and press return and the following message will be displayed if the file is found End of input file To get a listing of the file type 1 and press return The contents of the file
70. le Lease 0 0 0 0 Other Lvstk Exp 5190 25 400 5565 lt lt lt lt SCREEN 13 CONTINUED gt gt gt gt gt PRESS ESC TO GO TO SCREEN 12 Cash Change in Inv Change In Accrual Amount Paid cr Prepd exp Accts Pay Expenses CROPS Fertilizer Lime 5700 2000 2200 9900 Seeds amp Plants 2000 500 800 3300 Spray Other Exp 2640 250 600 2990 REAL ESTATE Land Bldg Repair 3000 s 100 0 2900 Taxes 3600 800 0 2800 1 Rent Lease 1200 0 0 1200 j OTHER Insurance 2730 0 0 2730 Telephone 700 0 0 700 Electricity 4200 0 0 4200 Interest Paid 17000 0 s 2100 19100 Miscellaneous 1330 0 0 1330 TOTAL 109730 1756 13100 124568 Expansion Lvstk 9000 0 0 9000 i Purchase of Other Stock amp Cert ficates exclude FLB amp PCA 1200 i NONFARM CASH EXPENSES Personal Withdrawals amp Family Expenditures 55270 26 The final screen Screen l contains the breakdown of crop expenses by crop The total crop expense row at the bottom of the screen is displayed These values were calculated from the crop expense data entered in Screen 13 The rows for hay crop and corn require data entered in them The all other crops row is calculated as the residual so the column totals equal the crop expenses in Screen 13 SCREEN 14 Accrual Accrual Accrual Fertilizer Seeds amp Spray Other Cro amp Lime ants ro xpe Hay crop
71. ly paid 6 Family unpaid 3 Hired 0 Total 33 12 2 75 Worker Equivalent 2 00 Operator Manager Equivalent Labor Efficiency Total Pe ker Cows average no 77 28 Milk sold lbs 1116500 406000 Tillable acres 260 95 Work units 808 294 Labor Cost Total Per Cow Per Till Acre Value of Operator s Labor 1050 month 25200 327 96 92 Family unpaid 750 month 2250 29 8 65 Hired 3000 39 11 54 Total Labor 30450 395 117 12 Machinery Cost 32923 428 126 63 Total Labor amp Machinery Costs 63373 823 243 74 39 FARM NO 38006 11 JANUARY 5 1990 ANNUAL CASH FLOW WORKSHEET Receipt o ens Expected 1990 tem T l Cow jection Average Number of Cows 77 TING C TS Milk 146970 1908 70 a ey Dairy cattle 27300 354 55 Dairy calves 1330 17 27 Other livestock 1600 20 78 Crops 12885 167 34 Miscellaneous receipts 840 10 91 T Total 190925 2479 55 ACCRUAL OPERATING EXPENSES Hired labor 3000 38 96 MERECE Dairy grain amp concentrate 36250 470 78 Dairy roughage 0 0 00 Nondairy feed 0 0 00 Machine hire rent lease 2240 29 09 Mach repair parts amp auto 7775 100 97 Fuel oil amp grease 4028 52 31 Replacement livestock 1800 23 38 Breeding 2300 29 87 Veterinary amp medicine 1980 25 71 Milk marketing 8500 110 39 Cattle lease 0 0 00 Other livestock expense 5565 72 27 Fertilizer amp lime 9900 128 57 Seeds amp plants 3300 42 86 Spray other crop expense 2990 38 83 Land bldg fence repair 2900 37 66 Taxe
72. mes that the summary is for the previous year For example if you enter 1 1 90 the printout will show 1989 Dairy Farm Business Summary If you don t enter the date and instead leave it as the default of 1 01 1980 the printout will show 1979 Dairy Farm Business Summary which is probably not what you wanted 1 Follow A or B depending on the hardware system you are using A Two floppy disk drives IBM PC Compaq Insert your DOS diskette in drive A the left hand drive and turn on the computer and printer Wait until DOS is loaded Type the date and time if asked You should see a prompt A This means that drive A is the default drive If you were not prompted for the date as the computer was booting at the A prompt type date 1 1 90 1If you have not already done so be sure to make a backup copy of your program diskette Take out the DOS diskette Insert the Micro DFBS program diskette in drive A and a blank formatted data diskette in drive B right hand drive Copy the sample data files from the program diskette in drive A to the blank formatted disk in drive B copy a 38006 b Skip to C on page 5 B One floppy and one hard drive IBM XT If you have previously loaded DOS onto the hard disk turn on the computer and printer with the floppy drive empty Wait until DOS is loaded from the hard disk Type the date and time if asked If you were not prompted for the date as the computer was booting and
73. n will be displayed If revisions need to be made in this data simply type over the existing values The all acres column and the total row will be recalculated SCREEN 7 OR Q Full Time Months Age duc Value a nt amp o Operator l 42 5i n 20000 2 NEN ae Lie 20000 3 4 et DER AER 5 na EE NUS 6 REN E m Family paid employees 6 Family unpaid ow Hired regular amp seasonal Total 23 12 2 75 Worker Equivalent LAND INVENTORY Acres Owned Acres Rented All Acres Tillable land A60 __ amp O 80 Pasture nontillable _ 3Q _ 289 40 Woods amp other nontillable dbo 85 _ Je9 Total 39406 18 A 65 Farm No 38006 Screen 7 LABOR and LAND INVENTORY LABOR INVENTORY Full Time Months Age Years Educ Value of Mgmt amp labor Operator 1 12 51 14 20000 2 12 28 16 20009 0 0 0 0 amp 0 i 0 s 0 t 2 8 0 0 0 0 6 0 J 6 0 Family paid emp 6 Family unpaid emp 3 Hired reg amp seasonal 0 Total 33 12 2 75 Worker Equivalent LAND INVENTORY Acres Owned Acres Rented All Acres Tillable land 200 60 260 Pasture nontillable 30 10 40 Woods amp other nontillable 160 5 165 Total 390 75 465 18 Screen 8 is Tillable Land Use When entering the data in the dry matter coefficient column the decimal must be typed The entry for total production of Other Crops is in number of work units see Table 1 on page 16 The order of data entry is ac
74. nce between prepaid exp totals in Screen 9 page 6 beg year end year Use Worksheet 7 on page 10 to calculate Must calculate for completion of Screen 14 Include all cash withdrawals plus all additional nonfarm expenses paid with farm cash or from farm accounts e g income tax self employment tax life insurance Include withdrawals used for nonfarm loan payments savings and investments as well as family living expenses Include borrowed capital used for nonfarm purchases providing it has been entered as a new nonfarm liability in Screen 10 page 7 If any or all Nonfarm Cash Income has been excluded from the value entered n Screen 12 pg 9 you must also exclude any family expenses paid from that income 25 Farm No 38006 Screen 22 SUMMARY OF YEARS EXPENSES amp CHANGES IN INVENTORY amp ACCOUNTS PAYABLE Cash Change in Inv Change In Accrual i Expenses Amount Paid or Prepd exp Accts Payable Expenses 4 Hired Labor i FEED i Dairy Grain Conc 30000 250 6000 36250 Dairy Roughage 0 0 0 S Nondairy Feed 0 0 0 9 MACHINERY Mach Hire Rert Ls 2040 200 Q 2240 Mach repair parts 5800 25 g 15 0 s 7275 Auto Expense 500 0 0 500 Fuel Oil amp Grease 4000 z8 o 4028 LIVESTOCK Replacement Lvstk 1800 6 1820 Breeding 2300 0 6 4300 Vet amp Medicine 2500 20 500 19 9 i Milk Marketing 8500 0 0 86500 t Catt
75. nconsistent with respect to other livestock Check data collected and entered for accuracy Milk per cow n pounds When n 8 000 or n gt 18 000 Pounds milk sold per cow s outside the normal range Check to see if average cow numbers and pounds of milk sold Screen 6 are entered correctly Check butterfat content to see if a non Holstein herd is being analyzed Milk per worker n pounds When n lt 200 000 or n gt 700 000 Milk sold per worker is outside the normal range Check to see if months of labor Screen 7 and milk sold Screen 6 are entered correctly Average number of dairy cows at least 25 more than total at end owned and leased Implies a significant reduction in herd size from beginning to end of year which occurred close to year end Screens 4 and 6 Check to see if this is correct Average number of dairy cows at least 258 less than total at end owned and leased Implies a significant increase in herd size from beginning to end of year which occurred close to year end Screens 4 and 6 Check to see if this is correct Invalid business description One or more of the coded business descriptions Screen 6 are out of acceptable range Check data entry LABOR Single proprietorship but operators labor n months When n 12 Single proprietorship category was checked on Screen 6 but more than one operator was recorded on Screen 7 A single proprietor in the majority of in
76. ncrease in accounts receivable Worksheet 6 is designed to produce the right calculation when used correctly The total of the column Balance December 31 1989 in Worksheet 6 must equal the value in Screen 9 page 6 for Accounts Receivable December 31 1989 The total of the column Balance January 1 1989 in the worksheet must equal Accounts Receivable January l 1989 in Screen 9 The totals of the Change in Account and Receipt Category Amount columns in Worksheet 6 must be equal They must also equal the total of the column Change in Accounts Receivable in Screen 12 page 9 See the bottom of page 8 of the check in form for further guidelines to recording changes in accounts receivable Screen 12 Summary of 1989 Receipts and Changes in Inventory and Accounts Receivable page 9 Record the 1989 cash receipts and changes in accounts receivable in Screen 12 The Change in Inventory column is calculated by the computer program from entries previously made in Screen 3 grown feeds inventory and Screen 4 livestock inventory and Screen 10 advanced government receipts Use Worksheet 6 on page 8 to assist in the calculation of changes in accounts receivable The Accrual Receipts column is the total of the first three columns Enter the amount received for sale of stock and certificates other than FLB and PCA stock This value will be used in the calculation of appreciation of Stock and certificates to be included as ownership
77. nd you will get an error message if you try to specify a path or create a subdirectory To properly install the program for this version enter the desired disk drive and then select option 3 from the menu and when prompted for a path press return There should be either a X or nothing displayed at the top of the screen where the path is normally displayed Once this is done type 0 to continue installation FAILURE TO PROPERLY SET THE PATH WILL RESULT IN THE DATA BEING DIRECTED TO THE WRONG SUBDIRECTORY OR IN THE PROGRAM ABORTING WITH AN I O ERROR Q1 ERROR MESSAGE DISPLAYED The following message will appear on the screen PRINT PRELIMINARY SUMMARIES Y N Typing Y for yes will print the word Preliminary on page 1 of the Dairy Farm Business Summary printout Typing N for no does not print Preliminary and the printout is then considered in final form This setting will remain until this part of the install program is accessed again County Extension offices are encouraged to leave the setting at Preliminary The final versions of the summary are printed at Cornell IV Enter the input data The Create Update Display Record option on the main menu is used to enter input data for a new farm or to change or display a previously entered farm record Use the cursor keys t or 1 to select this option Type E to select the Create Update Display Record option You will see a prompt to enter a farm number The farm n
78. ning year liability principal paid If the two values do not agree a diagnostic will be printed 67 The calculated value for money borrowed will be used in the Annual Cash Flow Statement For FLB and PCA liabilities be sure the proceeds amount is entered as the liability i e exclude FLB and PCA stock The amount of FLB and PCA stock will be displayed under Intermediate Term Debt These values are automatically carried over from FLB and PCA stock assets entered in Screen 9 page 6 If refinancing occurred during 1989 use of the Amount of Debt Refinanced column will help you arrive at more accurate values for Amount of New Borrowings and Actual 1989 Principal Payments The amount of the old loan refinanced should be entered as a negative number in the Amount of Debt Refinanced column The new loan or refinanced amount added to existing loans is entered as a positive number These entries offset each other therefore the total of the Amount of Debt Refinanced column would always be zero The amount of debt refinanced would not be included in the Amount of New Borrovings or the Actual 1989 Principal Payments columns Include debt payments for all liabilities listed If no payments are made please enter zero In the event of a deferred loan except FmHA add the interest to the end year liability enter the interest as paid under debt payments Screen 10 and interest expense Screen 13 and enter the interest amount
79. ok balance it should be considered money borrowed and included in operating debt and a zero entered for farm cash checking and savings Nonfarm assets for partnerships and corporations should include nonfarm assets of all families in the business or none at all Mortgages or notes held from the sale of farm real estate should be included as Other Nonfarm Assets See the footnotes at the bottom of page 6 of the check in form for further guidelines to completing the assets section Screen 10 Farm Family Financial Situation Liabilities page 7 The liabilities and debt payments sections of the Farm Family Financial Situation require entry of all liabilities for beginning and end of year the principal and interest actually paid in 1989 and the planned payments for 1990 If a cooperator had a business summary the previous year the end year liabilities are the beginning year liabilities for this year The primary objective in classifying liabilities is to identify the correct term of the loan Long term and intermediate term loans will be analyzed separately in the summary If more liabilities exist than there are lines for liabilities for the same term may be combined Do not include leased items they are entered in Screen 11 The Amount of New Borrowings column is optional input If the amount of money borrowed in 1989 is entered this value will be compared to the calculated value for money borrowed End year liability begin
80. om changes in the price level of farm machinery and equipment The fixed cost of mainta ning the equipment inventory is charged as a business expense while machinery appreciation is credited toward the ownership income of the farm business Probably the most difficult information to obtain in this section is the beginning and end of year inventory If this cooperator had a business summary the previous year the end of the year inventory is the beginning of year inventory for this year The cooperator then must inventory and determine the market value of his machinery and equipment as of December 31 of the year for which you are summarizing Do not include any leased items Machinery and equipment purchased and machinery and equipment sold are the totals from Worksheets 1 and 2 discussed above If an alternative source of complete information for purchases and sales is available it is not necessary to complete Worksheets 1 and 2 Machinery and equipment received from Noncash Transfer to Farm is entered in Screen 2 Include machinery and equipment received as a gift inheritance or converted from nonfarm to a farm asset The next item is machinery and equipment depreciation as calculated for tax purposes This value is used as the charge against the farm business for the use of the machinery and equipment complement It is obtained by taking 1989 regular tax depreciation excluding buildings and cattle from ACRS and MACRS depreciation End of y
81. or crop in which case the acres are entered with the major crop Acres used to grow winter wheat should be entered with the crop grown during the regular growing season After the acreages and production of the harvested crop enterprises have been reported the acres of tillable cropland included in pasture and the acres of idle tillable cropland should be recorded The total of all of the acres in each of these enterprises should be the total tillable acres This total should then be compared to the total tillable acres recorded above in the land inventory Furthermore if this cooperator was in the summary the previous year and has not had a change in owned or rented acres the tillable acres should be exactly the same as they were in the previous year Screen 9 Farm Family Financial Situation Assets page 6 The assets section of the Farm Family Financial Situation requires entry of all farm and nonfarm assets for beginning and end of year Total farm inventory is calculated from the previously entered inventory sections If a cooperator had a business summary the previous year the end year assets are the beginning year assets for this year The x X spaces for prepaid expenses indicates optional input i e the entire concept of prepaid expenses may be ignored if you feel it has no significant affect on the profitability of the business Do not enter negative numbers for Farm cash checking amp savings If there is a negative checkbo
82. otal farm inventory less real estate Intermediate term debt is high and in fact greater than intermediate term assets Screens 9 and 10 Check to see if this is correct 52 Principal payment exceeds liability If no new money was borrowed the amount of principal paid should not be greater than the beginning year liability amount Check to make certain the data is accurate Long term planned payments long term debt Long term planned payments being greater than long term debt would be expected to occur only in the last year of the payment schedule Check all entries for accuracy Screen 10 Intermediate term planned payments intermediate term debt Intermediate term planned payments greater than intermediate term debt would be expected to occur only in the last year of the payment schedule Check all entries for accuracy Screen 10 Short term planned payments gt 120 of short term debt Short term planned payments are higher than expected Check for accuracy of entries Screen 10 Planned reduction of operating debt operating debt This is a definite inconsistency The reduction in operating debt cannot be greater than the end of year balance Screen 10 Check to see if interest is included Planned reduction of accounts payable gt accounts payable This is a definite inconsistency The reduction in accounts payable cannot be greater than the end of year balance Screen 10 Check to mak
83. ounts payable Screen 13 Summa of 1989 enses and Changes in Inventory and Accounts Payable page 11 Record the 1989 cash expenses and changes in accounts payable in Screen 13 Be sure to include as cash expenses any items paid directly by a bank through use of a line of credit Payment on the line of credit is a reduction in the account payable to the bank Use Worksheet 7 on page 10 to assist in the calculation of changes in accounts payable The Accrual Expenses column is the total of the first three columns The change in inventory or prepaid expenses column contains both calculated values and optional input values The change in inventory items Spaces are calculated by the computer program from entries previously made in Screen 3 purchased feed and supplies inventory The change in prepaid expense items x X spaces are optional input i e the entire concept of prepaid expenses may be ignored if you feel it has no significant affect on the profitability of the business The total change in prepaid expenses must equal the difference between prepaid expense totals in Screen 9 page 6 beginning year end year Enter the amount spent for purchase of stock and certificates other than FLB and PCA stock This value will be used in the calculation of appreciation of stock and certificates to be included as ownership income Enter all personal withdrawals and family expenditures in the space provided at the bottom of Sc
84. p management income per op mgr 1206 4754 8485 Rate return on equity capital w apprec 2 6 1 0 3 5 Rate return on all capital w apprec 5 4 3 6 6 1 Financial Summary Farm net worth end year 224575 229865 347017 Debt to asset ratio 0 44 0 44 0 35 Farm debt per cow 2729 2707 2379 Ww yv i PARTNERSHIP ACCT BOOK OWNER FULL TIME DAIRY 30 2 FARM NO 38006 JANUARY 5 1990 Sa m armer INCOME STATEMENT Change in Change in Cash Inventory Accounts Accrual EXPENSES Amount paid or Prepaid Payable Expenses Expense Hired Labor 3000 0 0 3000 Feed Dairy grain amp conc 30000 250 6000 36250 Dairy roughage 0 0 0 0 Nondairy 0 0 0 0 Machinery Mach hire rent lease 2040 200 Q 2240 Machinery repairs parts 5800 25 1500 7275 Auto expense f s 500 0 0 500 Fuel oil amp grease 4000 28 0 4028 Livestock Replacement livestock 1800 0 0 1800 Breeding 2300 0 0 2300 Veterinary amp medicine 2500 20 500 1980 Milk marketing 8500 0 0 8500 Cattle lease rent 0 0 0 0 Other livestock expense 5190 25 400 5565 Crops Fertilizer amp lime 5700 2000 2200 9900 Seeds amp plants 2000 500 800 3300 Spray other crop exp 2640 250 600 2990 Real Estate Land bldg fence repair 3000 100 0 2900 Taxes 3600 800 0 2800 Rent amp lease 1200 0 0 1200 Other Insurance 2730 0 0 2730 Telephone farm share 700 0 0 700 Electricity farm share 4200 0 0 4200 Interest paid 17000 0 2100 19100 Miscellaneous 1330 0 0 1330
85. reen 13 Do not skip this entry It is necessary for the Annual Cash Flow Statement to balance and also for an accurate Cash Flov Coverage Ratio to be calculated Include all cash withdrawals plus all additional nonfarm expenses paid with farm cash or from farm accounts e g income tax self employment tax and life insurance Include withdrawals used for nonfarm loan payments savings and investments as well as family living expenses Include borrowed capital used for nonfarm purchases providing it has been entered as a nonfarm liability in Screen 10 page 7 E g if a pleasure boat was purchased using debt capital in the year of purchase the amount borrowed and any payments made during the year must be included as a family expenditure If any or all Nonfarm Cash Income has been excluded from the value entered in Screen 12 page 9 you must also exclude any family expenses paid from that income See page 12 of the check in form for further guidelines to recording farm expenses reakdown of 1989 Crop Expense Crop page 13 Record the breakdown of crop expenses for hay crop corn and other crops in Screen 14 The Total line at the bottom of the screen must equal the accrual expenses on Screen 13 page ll for fertilizer and lime seeds and 70 plants and spray and other Calculate the accrual expense for these three crop expense categories on Screen 13 by totaling Cash Amount Paid Change in Inventory Change in Accounts Payabl
86. ross the rows Total Tillable Acres and the Total Tons Dry Matter column are the calculated values SCREEN 8 Dry Matter Acres Total Production Coeffi Total Tons LLABLE LAND US ist cut on all cuttings cient Dry matte Hay Crop Ist cut acres only _ 20 XXXX X X ETSEGHEHI S Hay RARE LSO tons 8S 2 Hay crop silage AXXXEAXAAAAREAK EO tons SGA Corn silage o 48o on 3 A43 Other forage harvested Y tons 2 46 Corn for grain 2300 dry sh bu Tot tn D 674 Oats Q SEO dry bu Wheat dry bu Other pg EM A wul Tillable pasture 4S Idle tillable acres Total tillable acres 60 iWork units All cows were milked 2x for entire year 3All cows were milked 3x for entire year A portion of herd vas milked 3x or total herd vas milked 3x for part of year 5Convert to dry shelled equivalent see tables opposite page Enter as decimal e g 4 is entered as 4 Farm No 38006 Screen 8 TILLABLE LAND USE Acres Total Production Dry Matter Total Tons ist cut all cuttings Coefficient Dry Matter Hay Crop 120 Hay 150 tons 0 85 128 Hay Crop Silage 480 tons 0 40 192 Corn Silage 70 980 tons 0 35 343 Other Forage 10 40 tons 0 40 16 Corn for Grain 35 3300 bu Total Tons D M 679 Oats 10 560 bu Wheat 5 0 bu Other 0 O w u Tillable Pasture 15 Idle Till Acres 0 Total Till Acres 19 Screen 9 is the Asset portion
87. s 2800 36 36 Real estate rent lease 1200 15 58 Insurance 2730 35 45 Utilities 4900 63 64 Miscellaneous 1330 17 27 Total Less Interest Paid 105488 1369 97 NET ACCRUAL OPERATING INCOME w o interest paid 85437 1109 57 Change in lvstk crop inv 23485 305 00 Change in accounts rec 525 6 82 Change in feed supply inv 1758 22 83 Change in accts payable 11000 142 86 NET CASH FLOW 74185 963 44 Net personal withdrawals amp family expenditures 32835 426 43 Available for Farm Debt Payments amp Investments 41350 537 01 Farm debt payments 17500 227 27 Avail for Farm Investment 23850 309 74 Capital purchases cattle machinery improvements 31300 406 49 Less change in account payable for interest See page 7 40 FARM NO 38006 JANUARY 5 1990 MACHINERY amp EQUIPMENT INVENTORY FEED AND SUPPLY INVENTORY LIVESTOCK INVENTORY REAL ESTATE INVENTORY LIVESTOCK amp BUSINESS DESCRIPTION LABOR LAND INVENTORY AND CROPS ASSETS AND LIABILITIES FINANCIAL LEASES RECEIPTS EXPENSES 11 Hired labor expense lt 600 or gt 1700 per month 500 CROP EXPENSE BREAKDOWN MANAGEMENT PERFORMANCE MEASURES Net farm income w appreciation 53187 Rate return on equity capital w o appreciation Zoey Cash flow coverage ratio lt 8 or gt 1 2 1 39 OTHER Farm coded irregular Dairy Farm Full Time Farm OWNER VII VIII IX XI XII 41 Check the diagnostics page The
88. s no taxes Farm real estate is owned Screen 5 but taxes are not reported Screen 13 Check to see if taxes were paid but not reported paid by a third party or not paid during the year Farm liabilities 0 but no interest expense liabilities HE Farm liabilities exist Screen 10 but no interest expense reported Screen 13 Check to see if special circumstances exist or if interest was in fact not paid during the year Interest expense on page 11 does not equal interest payments on page 7 The total farm liability interest Screen 10 does not equal total interest expense Screen 13 Check to see if data was collected and entered correctly These two totals must be identical 11 11 11 6 amp 11 7 amp 11 11 11 12 amp 13 55 Cattle lease expense gt 0 but no lease information Cattle lease expense is reported Screen 13 but lease informa tion is missing Screen 11 Record the information on Screen 13 once the existence of an actual lease has been verified Owns farm real estate but pays no insurance Farm real estate is owned Screen 5 but no insurance expense is reported Screen 13 Check to see if insurance expense was omitted or is included in other categories Make certain real estate is owned Personal withdrawals and family expenditures lt nonfarm income This indicates that the nonfarm income could be subsidizing the farm business and therefore the
89. select Create Update Display Record on the main menu Move to any screen by entering the screen number as described in the previous section Delete a record To delete a farm record select Delete Record on the main menu You will be prompted for a farm number Enter the number of the farm you want deleted The current year s data file farm no gt 89 will be erased Help Select the Help option on the main menu A brief description of each option on the main menu will be displayed Quit To leave the Micro DFBS program select Quit on the main menu You will then be at the DOS prompt C gt For a two floppy disk system you will be prompted to insert the DOS diskette in drive A You can restart Micro DFBS by typing dfbs XIII 42 ake two back copies of the data diskette Remove the DFBS program diskette from drive A and insert a blank formatted diskette To review the data files on your data diskette type DIR B Or DIR C if the data is on the hard disk and you are still in the dfbs directory You should see a list of data files as shown below A gt dir b Volume in drive B has no label Directory of B 38006 870 260 11 01 88 10 27a 38006 880 321 11 01 88 10 25a 38006 89 8809 1 05 90 1 55p 3 File s 718848 bytes free The 1989 farm record files entered in 1990 will have file extensions of 89 The sample farm is file 38006 89 To make backup copies of the farm record files from drive
90. silage amp dry 3137 117 s 629 Corn silage amp grain 6172 alist 292 All other crops 84 844 VERDE 70 Total 9 200 3300 4 30 libr c Totals above must equal accrual expenses in Screen 13 Farm No 38006 Screen 14 BREAKDOWN OF 1989 ACCRUAL CROP EXPENSES BY CROP Accrual Fertilizer Accrual Seeds Accrual Spray Other Crop amp Lime amp Plants Crop Expenses i Hay Crop silage amp dry 3137 917 628 Corn silage amp grain 6172 2136 2292 All Other Crops 591 249 70 TOTAL 9900 3300 2990 Totals above must equal accrual expenses in right column of screen 13A At the command line type return enter or Esc to go back to the main menu 27 Verify the data We all make typing mistakes occasionally The Verify Record option is an important step that will reduce the embarrassment of having a farmer tell you that you typed one of his figures incorrectly and printed out a nonsense summary for him It is tempting to skip this step The best advice is don t skip this step Use the cursor key to move down to Verify Record in the main menu and type You will be asked for the farm number Type 38006 return enter The program will go on to Screen l As you see the information that was entered under the Create Update Display Record option is displayed Re enter the data for Screen 1 If you were to incorrectly enter the Operator s name as
91. sset in Screen 9 page 6 If the seller is not the mortgage holder there would be no entry in the note mortgage held by seller space and the Net cash amount received in 1989 would then equal 24 000 The calculated value net cash amount received in 1989 is a cash inflow to the farm If part or all of this was converted to nonfarm include that amount as a personal withdrawal and family expenditure in Screen 13 e Beginning market value plus value added from real estate purchased minus depreciation and the value of sales equals total beginning value after changes f End of year market value less the total beginning value after changes is equal to real estate appreciation on the assets owned at end of year Real estate appreciation also needs to be calculated for the assets sold during the year by subtracting the beginning year value of real estate sold from the sale price These values are then used as the contribution toward ownership income from real estate Screen 6 Livestock and Business Description page 5 The average number of cows for the year is a key factor It can be taken from the DHIA or other herd testing records It is the average number of cows in the herd each month totaled and divided by 12 It includes dry cows as well as cows in milk It includes leased cows It is not an average of beginning and ending inventory numbers Also report the average number for year of dairy heifers and bulls If the data is bein
92. stances would have only one operator the other should be reported as family unpaid An exception to this would be when a second person is significantly involved in the day to day management of the business then this person would be entered as Operator 2 Hired labor expense but no hired labor Hired labor expense was recorded on Screen 13 but no months of hired labor were recorded on Screen 7 Check to be certain these 50 two entries are consistent Example labor hired off farm to repair a roof should be reported as land building and fence repair not as hired labor If the farm is a partnership or corporation check the labor inventory against business organi zation for consistency Hired labor but no hired labor expense Hired labor months were recorded on Screen 7 but no expense on Screen 13 These two entries should be consistent Example Hired labor was paid with milk beef or other farm products Add the value of the products to receipts Screen 12 and then count it as an expense Screen 13 If the farm is a partnership or corporation check the labor inventory against business organization for consistency Partnership or corporation but operator labor is lt 12 months Partnership or corporation operator labor input is normally expected to be greater than 12 months Check to see if labor input Screen 7 is correct LAND AND CROPS Land is rented but rental expense 0 Land is rented Screen 7 but
93. tal debt 51 Debt Levels Per Tillable Per Cow Ac Total farm debt 2379 952 Long term debt 1163 465 Intermediate current 1217 487 rm vent Real Machinery Feed amp Beginning of Year 190000 290000 93500 41165 Purchases 10300 10800 Noncash Transfer to Farm 60000 5000 Lost Capital 3300 Sales 17000 1250 Depreciation 6615 14280 Net Investment 43385 270 14600 Appreciation 6615 3730 5000 End of Year 240000 94000 113100 51292 O Land 10300 Building See page 9 Dairy Inventory Analysis for dairy cow and heifer inventory detail Excludes 3000 of appreciation on assets sold during the year 34 6 FARM NO 38006 JANUARY 5 1990 ANNUAL CASH FLOW STATEMENT Cash Inflows Beginning farm cash checking amp savings 13000 Cash farm receipts 165315 Sale of assets Machinery 1250 Real estate 3500 Other stock amp certificates 1000 Money borrowed intermediate amp long term 5000 Money borrowed short term 0 Increase in operating debt 0 Nonfarm income 10435 Cash from nonfarm capital used in business 2000 Money borrowed nonfarm l 12000 TOTAL 213500 s ws Cash farm expenses 109730 Capital purchases Expansion livestock 9000 Machinery 10800 Real estate 10300 Other stock amp certificates 1200 Principal payments intermediate amp long term 5000 Principal payments short term 0 Decrease in operating debt 1000 Personal withdrawals amp family expenditures including non
94. the computer does not have an internal calendar at the C prompt type date 1 1 90 If you will be storing data on the hard disk and or operating the program from the hard disk it is advisable to set up a separate directory on the hard disk for this purpose We ll call the directory DFBS First let s check if the directory DFBS already exists To check type CD XDFBS If it does exist you will see the prompt C reappear If it does not exist you will see invalid directory so set it up To set up a directory named DFBS from the prompt C type MD DFBS Each time Micro DFBS is rerun on a one floppy one hard disk sys tem the Micro DFBS directory must be accessed using the command CD DFBS J The program diskette contains sample data files which must be If you have not previously loaded DOS onto the hard disk follow the procedure in A and when you see the prompt A type Cc The symbol stands for a carriage return Upper or lower case letters will do This makes drive C the default drive SIf you are unfamiliar with the concept of a directory refer to your DOS manual Typing the command prompt p g or inserting this command in your autoexec bat file will change your C prompt to show which directory you are in such as C DFBS gt copied to your new Micro DFBS directory if you select to store data on the hard disk Insert the program disk into drive A and copy the sample data files by typing C
95. to the farm If part or all of this was converted to nonfarm include that amount in personal withdrawals amp family expenditures Screen 13 page 11 Farm No 38006 Ecreen 5 REAL ESTATE INVENTORY End 240000 PM M M t o i e Land and Building Market Value Beginning 190000 New Real Estate Purchased Oo 10300 3300 7000 land bldgs land imp lost cap value added Noncash Real Estate Transfer to Farm 60000 Depreciation From 1989 Income Tax 6615 Real estate sold Beginning of Year Inv Value 17000 Total sale price 20000 Sale expenses 1500 Note mort held by seller 15000 Net cash amt rec d 3500 Total Beginning Value After Changes 233385 Real Estate Appreciation Assets owned at end of year end beginning after changes 8 6615 Assets sold during the year sale price beg of year value 3000 15 The order of data entry in Screen 6 is as follows numbers of livestock milk sold butterfat test production record DHI milking system business type milking frequency dairy housing and financial recordkeeping system The value entered for other livestock is the number of total work units for the total number of other livestock Table 1 on the next page shows estimated work units for various livestock and crops When entering the Average Milk Plant Test the decimal must be typed Business description items in Screen 6
96. to the market value of the property and therefore lost capital could be equal to the total cost Land and building inventory 30 000 but no land is owned Implies ownership of buildings but no land Screens 5 and 7 Check to see if this is accurate The operator could rent or lease a farm but own improvements or real estate consistent with the terms of the contract If the farm is a partnership or corporation check to determine if assets are recorded consistent with expenses Land is owned but no land and building inventory value If land is owned a market value was not entered Screen 4 Land owned may have incorrectly been entered The above stated possibilities should also be explored Building depreciation gt 4 of beginning real estate Building depreciation is greater than normally expected Screen 4 Check to see if machinery and equipment or livestock depre ciation was incorrectly included Large investments in new buildings may justify depreciation in excess of four percent Real estate inventory value added 0 Lost capital exceeds the value added from new real estate purchases Screen 5 At worst this should be 0 Check to be certain data entry s correct 49 LIVESTOCK AND BUSINESS DESCRIPTION Number of bulls and other livestock inconsistent with livestock inventory When number 0 and inventory gt 0 or number gt O and inventory 0 Data entered on Screens 4 and 6 are i
97. umber assigned will be made up of your 2 digit county number followed by a 3 digit number identifying the individual farm MAIN MENU WITH FARM NUMBER PROMPT DATE 1 5 1990 CORNELL COOPERATIVE EXTENSION Prepared by DEPARTMENT OF EN NEW YORK AGRICULTURAL ECONOMICS CORNELL UNIVERSITY N N Dairy Farm Business Summary Version 2 4 C 1989 mLM FH M M H M M M MM M M Create Update Display Record I Calculate and Print Farm Summary Verify Record Run Install Program I Delete Record l Help Quit ENTER FARM NO OR PRESS ENTER TO RETURN TO MENU Important select farm numbers carefully folloving the recommended procedure You must assign the same number to the same farm each year and assign a new number to a new farm This is essential for the first page of the summary Progress of The Farm Business and page 7 Repayment Analysis to work properly If you make an error entering data and you notice it before typing the return enter key you can correct the error by using the backspace key delete key or the key to erase the error and type the correct entry If you type return enter before noticing the error you can move back to the incorrect entry by using the f key and then retype the number See Appendix A for guidelines to completing
98. will now be displayed l FILES 10 2 BUFFERS 10 What is displayed on your screen will be similar to the above example You will need to edit the line that contains the FILES statement In the example above line l contains the statement To edit the line type l and press return The following will then display 1 l FILES 10 1 Enter new information on the blank line directly below the statement You will now type FILES 16 and press return The prompt will reappear Type E and press return You will then return to the operating system prompt If the file does not exist on your disk one has been supplied for you on the program diskette Simply copy the file onto your boot diskette or into the root directory of the hard disk Once you have completed either of the steps outlined above you will need to reboot the computer No No No No No No No No 89 27 89 28 89 29 89 30 89 31 89 32 89 33 89 34 89 35 89 36 89 37 89 38 Budgeting Data for Limited Resource Dairy Farms New York Milk Quality A Pro Dairy Management Focus Workshop for Farm Managers A Facilitator s Manual Milk Quality A Pro Dairy Management Focus Workshop for Farm Managers A Participant s Guide The Economics of Yard Waste Composting in Westchester County New York Feeding Management A Pro Dairy Management Focus Workshop for Dairy Farm Managers Teacher s
99. y is correct Screen 12 and that other categories are not more appropriate 6 amp 9 11 11 11 11 11 56 Gas tax refund in excess of 500 Gas tax refund is greater than normally expected Verify that the entry is correct Screen 12 and that other receipts have not been included here Total change in accounts receivable entered as a receipt does not equal change in accounts receivable entered as an asset This indicates a problem in calculation or data entry as these two totals should be equal EXPENSES Hired labor expense 400 or 1 200 per month per month Expenses per month for family paid and hired labor are outside the normal range Determine if months of labor recorded Screen 7 and labor expense Screen 13 are accurate Total accrual item expenses are negative An accrual expense Screen 13 would not likely be a negative value Check the data for accuracy Values in the column Cash amount paid cannot be negative It is possible to have negative values in the Change in Acct Payable column however an offsetting value in Cash Amt Paid calculates to a positive accrual expense It is possible to have negative values in the Change in Inventory column calculated from entries made on page 2 Screen 3 However this indicates an increase in that inventory item and therefore should be offset by Cash Amt Paid or Change in Acct Payable Owns farm real estate but pay
100. y roughage C Tt ptt E eA CAM Nondairy feed Bares aed Sars deli e beu Machinery Machine hire rent amp lease AYO x 400 x o X 240 Machinery repairs amp parts 5 00 Tas 4800 _ es R Auto expense farm share oo INNER LL 500 Fuel oil amp grease 4000 __ a 0p0 Livestock Replacement livestock 800 x x 4 8090 Breeding A300 30o Veterinary amp medicine ASO TA9D 500 L980 Milk markecing 500 x x 5oo Cattle lease rent x x HRS AN RE Other livestock expense 5 130 4 700 565 4 Crops Fertilizer amp lime 5700 s660 2200 _ oo Seeds amp plants 2 000 9Q90 8oe6 6 Spray other crop expense at 40 zesb hoo a o Real Estate Land building fence repair 3 000 00 a a R900 x Taxes 2 600 x 800x A 00 Rent amp lease 42900 x x 2900 Other Insurance 2230 x x Meer edet z 2730 Telephone farm share 200 x x 4 90 Electricity farm share 200 x x 4 Interest 422000 x x 2 00 S900 Miscellaneous 330 1i S NUT 4330 TOTAL OPERATING 0973O 5 4758 5s43 00 s 245 amp Expansion livestock 9000 x x 97p000 Purchase of other stock amp certificates exclude FLB amp PCA stock 200 _ Nonfarm Cash Expenses Personal withdrawals amp family expenditures 5 52470 Changes in prepaid exp can be entered in x x spaces Total change in prepaid exp must equal the differe

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