2014 Regional Workshop Dan Welch Brad Rickard Percy Fang Charles H Dyson School of Applied Economics and Management January 31 2014 Other States UC Davis and University of California Cooperative ID: 572083
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Slide1
Berry Farm Business Summary2014 Regional Workshop
Dan WelchBrad RickardPercy FangCharles H. Dyson School of Applied Economics and ManagementJanuary 31, 2014Slide2
Other StatesUC Davis and University of California Cooperative of Extension:
Sample Costs to Establish and Produce BerriesPenn State: Enterprise Budgets in Mid-Atlantic Berry GuideNorth Carolina State: Blackberry Budget Program 2011 Slide3
Overview of BFBS processCCE educators and regional specialists worked with 8 farms to collect the data
6 of the farms were smaller-scale, 2 farms grew berries in addition to tree fruitUsing the Fruit Farm Business Summary as a guide, created data tables of summary information, and specific areasBFBS gives a whole-farm picture, next step is to develop enterprise budgets for each cropSlide4
T1 to T4 Balance Sheet Information
T5 to T12 Income Statement Information
T13 to T19 Cash Flow Information
T20 to 23 Efficiency Analysis
T24 to T27 Farm Descriptive Statistics
Next I will show some of the preliminary summarized information from the current farms in the BFBS
Four considerations:
There are only data from 8 farms so far
Two of the 8 farms are much larger than the other 6
Where possible, we make comparisons to FFBS
Enterprise budgets will tell us more about specific berries
The 27 Tables in the FFBS/BFBSSlide5
Farm Balance Sheet (Table 1)
Year
Farm Assets
End
Current Assets
Farm cash, checking & savings
1,161
Accounts receivable
963
Prdtn, pckng supplies & prepaid exp
2,917
Fruit & other crops in inventory0Cash Value Life Insurance on Corp Officrs7,143
Total current assets$12,184
Intermediate assets
Equipment owned
50,042
Other Stock & Investments
175 Total intermediate assets$50,217
Year
Farm Liabilities
End
Current Liabilities
Accounts Payable
0
Operating Line 1
2,333
Current Portion:
Int
& Long Term Debt
0
Total Current Liabilities
$2,333
Intermediate Liabilities
Restructured Operating Debt
0
Equip Loan #1 (JD,CNH, Kubota)
0
Equip Loan #2
0
Capital Line #2
5,333
Total Intermediate Liabilities
$5,333Slide6
Farm Balance Sheet (Table 1)
Year
Long term assets
End
Land & buildings:
51,333
Owned
0
Structures leased
0
Leasehold Improvements
0Other:0 Total long term assets
$51,333
Total farm assets
$113,734
Year
Long Term Liabilities
EndMortgage #1:
Mortgage #2 :
0
Long Term Loan #1 -
0
Total Long Term Liabilities
0
Total Liabilities
$7,667
Net Worth
$106,067Slide7
Farm Balance
Sheet Comparison
Berry
Farm Business Summary
Fruit
Farm Business Summary
Financial Ratios-end of year
Percent Equity
87%
73.7%Debt Levels
Per bearing fruit acre
Total farm debt
$2889.69
$3066
Long term
645.41
944 Current and intermediate2244.272122Slide8
Income Statement- Expenses(table 5)
Expenses
8 Farm Average
6 Farm Average
Equipment
Fuel, Oil & Gas
20008.58
1993.27
Repair &
Maintenance
: Equipment
12432.202131.94Trucking Expenses955.75
1054.50Machine Hire, Rent & Lease
9980.00
482.50Slide9
Land
Resources (table 24)
Land Class
8 Farm Average
6 Farm Average
FFBS
(
25 Farms)
Bearing fruit acres
45.60
5.93
200.00Non-bearing fruits acres7.800.0030.50Total fruit acres
53.40
5.93
230.50
Other annual crops
7.76
10.35
0.00Other perennial crops1.251.6717.50
Open land
25.19
19.08
10.00
Non-tillable acres
7.25
1.17
88.90
Total acres cropped
62.41
17.95
248.00
Total land operated
94.85
38.20
347.40
Rented land included above
0.00
0.00
72.50Slide10
Berry Crop Production (table 24)
No. of farms
Average Acres
Average Production
(lbs)
Percent of Total Berries
8 Farms
Strawberries
3
5.57
51,194.00
60.96%
Blueberries
8
3.93
17,991.75
21.43%
Brambles
31.6811,438.6713.62%Ribes
2
0.45
235.50
0.28%
Other berries
1
1.75
3,114.00
3.71%
6 Farms
Strawberries
1
5.50
23,472.00
56.12%
Blueberries
6
4.47
9,955.17
23.80%
Brambles
1
1.25
5,280.00
12.63%
Ribes
1
0.30
0.00
0.00%
Other berries
1
1.75
3,114.00
7.45%Slide11
Size of Business and Yields (Table 27)
Size of Business
8 Farms
6 Farms
FFBS
(
25 farms)
All fruit acres (including non-bearing)
53.40
5.93
231.00
Bearing Fruit acres45.605.93200.00Average berry production (lbs)
41,927.13
15,266.17
144,130 bu
Worker equivalent
8.02
2.12
13.63Rates of Production (lbs/acre)
Strawberries, pounds per bearing acre
7,441.02
4,267.64
Blueberries, pounds per bearing acre
4,297.21
1,985.05
Brambles,
pounds per bearing acre
6,159.56
4,224.00
Ribes, pounds per bearing acre
785.00Slide12
Labor efficiency and COSTS (table 27)
Labor Efficiency
8 Farms
6 Farms
FFBS
(
25 farms)
Bearing fruit acres per worker
4.48
3.44
14.71
All fruits acres per worker4.693.4416.95Accural Receipts per worker
$34,825.58$17,842.80
$96,969.00
Cost Control-Accrual
Costs per bearing fruit acre
All
labor including operator
$2,895.16
$2,136.24
$1,812.00
Harvest
labor
$1,375.03
$740.00
All equipment
$1,158.02
$1,081.12
$871.00
Spray
$363.64
$204.26
$508.00Slide13
Capital efficiency and profits (table 27)
Capital Efficiency
8 Farms
6 Farms
FFBS
(
25 farms)
Total farm capital per bearing
acre
$23,149.74
$32,615.17
$10,814.00Total farm capital per fruit acre$22,159.07$32,615.17$9,404.00
Capital Turnover Ratio (sales/equity)2.37
3.43
0.61
Profitability
Net farm income
w/o
appreciation$210,302.70$11,677.10
$436,213.00
Labor and
mgmt
income/operator
$68,965.54
$2,466.48
$212,333.00
Rate of return on:
Equity
capital with appreciation
12%
-15%
23%
All capital with appreciation
7%
-15%
18%
Farm net worth
$
936,829
$318,200
$
1,721,188
Debt to asset ratio
0.11
0.08
0.26Slide14
For More information, and to join the BFBS, contact
Educator
Region (home base)
Contact
Sharon Bachman
Western NY (Erie County)
sin2@cornell.edu
716-652-5400
ext
150
Sandy BuxtonEastern/Northern NY (Washington County)sab22@cornell.edu 518-746-2560Ginny CarlbergWestern NY (Chautauqua County)vec22@cornell.edu 716-664-9502 ext 202Alison De Marree
Lake Ontario Region (Wayne County)amd15@cornell.edu
315-573-8881
Stephanie Mehlenbacher
Finger Lakes Region (Steuben County)
sms64@cornell.edu
607-664-2300
Dan WelchCentral NY (Onondaga County)dlw56@cornell.edu 607-255-7103Slide15
Research Funded by THE NYFVI Project #
AIC 12-001
“
Building
a Better Bottom Line for
NYS
Berry
Growers
”
Thanks for Listening!
Questions? Suggestions?
dlw56@cornell.edu (Dan Welch)bjr83@cornell.edu (Brad Rickard)