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ABOUT THE DAIRY CASH FLOW BUDGET SPREADSHEET HTTP://WWW.DAIRYTEAM.MSU.EDU/DOLLARSANDSENSE I NTRODUCTION sheets to cover cash flow of monthly principal and interest payments. The Dairy Cash Flow Budget is a tool to help project farm income and expenses. By The worksheets have color-coded cells to using expected milking cow numbers, aide in data entry, and some contain projected milk production and prices plus formulas that may be protected. Green- planned farm expenses, you can utilize the shaded cells require input on cows milking, power of an electronic spreadsheet to milk per day and milk price to generate milk develop a budget quickly. It was originally a income. Note that each month’s milk paper spreadsheet cash flow projection and income is delayed one month. For instance, part of the Coordinated Financial you enter December cow and milk Statements, North Central Regional production numbers and milk price in the Extension publication NCR-34 worksheet V. green cells in the upper left for January milk Roger Betz, Michigan State University income. Other income and expenses are also Extension district farm management agent, entered in the green cells. Black text cells and Bill Robb, Extension dairy agent, are protected, and blue text cells can receive converted it to this Excel electronic input but also have formulas. We suggest spreadsheet, which allows for easy input and you make a backup copy of the worksheets multiple projections. Using your prior year’s before you start entering data in case you expense records and price projections, you remove any formulas. can shortly identify business cash flow peaks and valleys. You can find the F EATURES spreadsheet at The program allows the posting of annual http://dairyteam.msu.edu/dollarsandsense. income and expenses totals allocated evenly to 12 months. Enter lump sum payments, E LEMENTS such as rents, in the months that they occur. The Dairy Cash Flow Budget is composed This is a quick way to estimate a cash flow of three worksheets plus an introduction. projection, which can be fine-tuned later or The two main worksheets use either updated as monthly records are completed. Schedule F expense categories or MSU Use the "Existing Loans" worksheet to Telfarm record keeping expense codes. Use input your existing operating, intermediate whichever sheet better matches your farm and long-term principal. A weighted average records. The third worksheet involves the interest percentage is calculated and entered calculation of existing loans as a liabilities on the farm worksheet. Interest rate on "new summary, which is linked to the prior two borrowed money" is based on the weighted interest rate calculated from the existing available from the milk market administrator loans. This interest is automatically office at www.fmmaclev.com. The most calculated and paid monthly in the interest accurate budgets will be developed with line. your farm actual data adjusted from the prior year. If your records lack an expense If the month ends in a negative cash position category, you can obtain Michigan averages then "ending cash balance" will be zero to use as benchmark figures from the because operating money will automatically Michigan Dairy Farm Business Analysis at be borrowed. The "new operating loan" http://dairyteam.msu.edu/ under monthly balance or accumulated cash deficit “economics.” will be shown in red. A DDITIONAL R ESOURCES C ONTACT The Dairy Cash Flow Budget can help Estimates from DHIA PCDART or other predict potential cash shortages and allow records can assist you in estimating number producers to plan. Using the Dairy Cash of milking cows per month. Milk price Flow Budget requires Excel software on forecasts can be estimated with help from your personal computer. For more futures prices adjusted for your farm basis at information on this Dollars and Sense tool, www.cme.com or from milk outlook contact Bill Robb by calling (616) 846-8250 projections at http://dairyteam.msu.edu/ or e-mailing firstname.lastname@example.org. under “marketing.” Historical data are also Growing a healthy Michigan dairy industry MSU is an affirmative-action, equal opportunity institution.
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