Making Decisions Based on Your Records Bill Burton Area Agricultural Economics Specialist
Family Business Production Bills Paid Crops and Soils Employment, Earnings Accounts Income, Receipts Livestock Accounts Credit Machinery & Equipment Computers, Office Insurance Farm Insurance Buildings Inventory & Assets Business Management Important Papers Other Inventory
Where Do You Keep Your Records?
Wallet File cabinet Safe deposit box Driver’s license Lots of stuff… List of records in the home file Credit/debit cards List of insurance policies Card with medical info- Certificates: birth, death, etc. Health insurance Contracts, notes, deeds, etc. Memberships Copy of bank account info-, list of financial advisors Mini-version of living will Copy of will Organ donor card Stock certificates, bonds, etc. Personal ID Household inventory & photos
Using records • Historical analysis • Current assessment • Forward planning • Financial performance • Financial position • Whole farm • Enterprise
Questions that records can answer • • • Am I making more on crops or livestock? Should I buy or raise hay? Are my costs of production too high? What is my break-even calf price? What can I do if I want to be more profitable? What can I do to provide incentives for hired help to do a better job? • What kind of risk management strategies should I be using?
What do good records offer? • Cold, hard facts • Ability to compare to benchmarks • Insights into strengths/weaknesses, problem identification • Identification of profit and loss centers • Direction for maximizing the returns to owned resources • Documentation to obtain/maintain credit
Can You Answer Correctly? • What is your calving percent? • How many calves died? • How much cost do you have in a bale of hay? • How much does it take to run a cow for one year? • Can I afford to buy that new pickup?
Can You Answer Correctly? • Is it cheaper to bale my own hay, or buy it? • Which of my cows need to be culled? • How much fertilizer can I afford to put on my pastures?
Standardized Performance Analyses Financial Records Cash records: tax reports, financial statements, Quicken Production Records Accrual Adjustments Cow-calf SPA
Percent Production Performance NM-TX-OK, 1991 -
Pounds Production Performance NM-TX-OK, 1991 -
Percent Weaning Percent Income Quartile NM-TX-OK, 1991 -
Pounds Weaned Per Exposed Cow Income Quartile NM-TX-OK, 1991 -
Capital Investment Per Cow Dollars (Market Value) Income Quartile NM-TX-OK, 1991 -
Dollars Cost of Production ($/Cow) Income Quartile NM-TX-OK, 1991 -2002
Dollars Production Cost Income Quartile NM-TX-OK, 1991 -2002
Percent Return on Assets (%), Market Value Income Quartile NM-TX-OK, 1991 -2002
Dollars Production Cost NM-TX-OK, 1991 -2002 Number of Head
Dollars Net Income ($/Cow) NM-TX-OK, 19912002 Number of Head
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