Welcome to the Farm Business Analyser Menu Page
The OMAFRA Farm Business Analyzer is a farm analysis program designed calculate profitability, solvency (financial strength), financial efficiency and debt servicing capacity. The program allows you to enter financial information from your income tax statement and uses it to analyse your business performance. Your farm business can be compared with benchmark information from farms who have participated in the Ontario Farm Management Analysis Project. A “what if” analysis section allows you to see the results of changing revenue, variable expenses and family living costs. Developed by Rob Gamble **
Finance and Business Structures Program Lead OMAFRA, Guelph email: rob.gamble@omafra.gov.on.ca January 2001 ** This version was developed from an earlier version designed by Rob Gamble and John Anderson
STATEMENT OF FARMING ACTIVITIES
Name: Year For the period Farm Name Farm Address Municipality and Province Accounting Method Cash X Name and Address of Person or Firm Preparing this Form Business Number Month Day Social Insurance Number Was 1998 your final Year of Farming? Acres Owned Acres Farmed Postal Code Industry Code 150 200 Yes
Shaded Section Does Not Need to be Filled Out
Accrual
Main Product or Service Swine Partnership identification number Tax Shelter identification number Your percentage of the partnership
0111
100
Income
Wheat Oats Barley Mixed Grains Corn Canola Flaxseed Soyabeans Other Grains and Oilseeds Total grains and oilseeds Fruit Potatoes Vegetables (excluding potatoes) Tobacco Other crops Greenhouse and nursery products Forage Crops Livestock sold - Cattle - Swine - Poultry - Sheep and lambs - Other animal specialties Eggs Milk and Cream Other Commodities Custom or contract work, and machine rentals Insurance proceeds Patronage Dividends Program payments - Dairy subsidies - Crop Insurance - Other payments Rebates Other Income Total Other Income (See attached) Gross Income
40,000 40,000 40,000
150,000 30,000 35,000
5,000
10,000 270,000
Gross Income Expenses (enter business portion only) Building and fence repairs Clearing,leveling, and draining land Containers and twine Crop insurance, GRIP, and stabilization premiums Machinery expenses - Gasoline, diesel fuel, and oil - Repairs, licenses, insurance Other insurance Interest Motor vehicle expenses ( not including CCA ) Office Expenses Legal and accounting fees Property Taxes Rent ( land, buildings, pasture ) Salaries, wages, and benefits(including employer's contribution) Small tools Custom or contract work, and machinery rental Electricity Feed, supplements, straw, and bedding Fertilizers and lime Heating fuel Livestock purchased Pesticides(herbicides, insecticides, fungicides) Seeds and plants Insurance program overpayment recapture Veterinary fees, medicine, and breeding fees Optional inventory adjustment included in 1997 Mandatory inventory adjustment included in 1997 Other Expenses See attached Total Other Subtotal of all expenses Capital Cost Allowance ** see note on depreciation below Allowance on Eligible Capital Property Total Farm Expenses Net Income (loss) before adjustments Optional inventory adjustment included in 1998 Mandatory inventory adjustment included in 1998
270,000 4,000 500 200 80,000 10,000 2,000 35,000 800 300 1,000 3,000 2,000 10,000 2,000 6,000 6,000 53,000 8,000 2,000 3,000 4,000 3,200 These figures will not be used in the calculation of net income 236,000 20,000 256,000
These figures will not be used in the calculation of net income
256,000 14,000
Total of above three lines Your Share Minus - Other amounts deductible from your share of net partnership income (loss) Net Income (loss) after adjustments Minus - Business use of home adjustment Your net income ( loss )
14,000 14,000 14,000 14,000
ADDITIONAL INFORMATION REQUIRED Source
Change in value of inventory : (+/-) Value of Unpaid Labour Total Assets Operating Loan and Accounts Payable Change in Operating Loan - use minus if operating loan decreased Change in Accounts Payable Total Term Debt - including the current portion due this year Term Borrowings in year Bank Balance Beginning of year Bank Balance End of year Capital Sales Capital Purchases Living Expenses Principal Payments Owners' contribution ( Off Farm )
20,000 0 600,000 100,000 -25,000 3,000 161,000 15,000 5,000 4,500 13,500 28,000 35,000 10,000 5,000
Farm Records Estimate Farm Records Bank Bank Bank Bank Bank Bank Income Tax Income Tax Farm Records Bank Farm Records
No X
0111
used ncome
Farm Business Analyser
Analysis Profitability Net Income (Accural) Return On Assets Return On Equity Solvency (Financial Strength) Equity Financial Efficiency Cost of producing $1 dollar of product Variable Costs as a % of Revenue Benchmarks **
Your Business Dairy Swine FF Beef Feedlot Beef Cow Cash Crop
$34,000 11.5% 10.0% 56.5% $0.77 71.9% 1.97
$75,008 5.3% 5.0% 79.7% $0.60 55.5% 4.03
$70,267 6.6% 6.9% 63.6% $0.64 66.7% 2.96
$47,824 5.0% 4.3% 62.9% $0.77 88.5% 2.14
$25,426 6.1% 6.4% 88.0% $0.52 54.6% 12.81
$55,070 4.7% 4.3% 70.1% $0.70 50.2% 2.67
Interest Coverage Ratio
Debt Servicing Capacity Cash available to service additional debt: - before accounting for depreciation - after accounting for depreciation
-$6,000 -$26,000
-$3,735 -$35,676
-$9,040 -$45,231
-$39,743 -$70,993
$17,242 $5,447
-$35,485 -$75,260
** source of benchmarks - 1999 Ontario Farm Management Analysis Project
The "What If" Analysis - Use this section to evaluate the following changes
Increase or decrease Revenue by (+/-): Increase or decrease Variable Expenses by (+/-): Increase or decrease Family Living by (+/-): 10.00% -10.00% -5.00%
Change Revenue Change Variable Expenses Change Family Living Impact of Combined Changes
Current
Net farm Income Cost of producing $1 dollar of product Variable Costs as a % of Revenue Cash available to service additional debt: Before accounting for depreciation After accounting for depreciation
$34,000 $0.77 $0.72 ($6,000) ($26,000)
$63,000 $0.69 $0.65 $21,000 $1,000
$53,400 $0.67 $0.65 $13,400 ($6,600)
$34,000 $0.77 $0.72 ($4,250) ($24,250)
$82,400 $0.58 $0.59 $42,150 $22,150
DEBT SERVICING CAPACITY
PREVIOUS YEAR + Farm Cash Revenue - Farm Cash Expenses $270,000 $236,000
= Net Cash from Operation + Interest Payments + Owner's Contributions - Owner's Withdrawals Cash Available For Principal and Int. Principal and Interest Payments Cash Available After P & I Payments Depreciation or Reserve for Asset Acquisition Debt Servicing Capacity
$34,000 $35,000 $5,000 $35,000 $39,000 45,000 ($6,000) $20,000 ($26,000)
Input from Income Tax Page
Total Cash Revenue Total Variable or Operating Expenses Total Fixed Expenses (includes depreciation) Changes in the Past Year Value of Inventory change?(+or-) Value of Purchased Feed Value of Purchased Livestock Value of Unpaid Labour Total Assets Operating Loan and Accounts Payable Term Loans including the current portion Living Expenses (Including Income Tax) Current Principal Payments Current Total Interest payments Owners Contribution to the Business Depreciation $270,000 $194,000 $62,000 Fixed expenses are highlighted in blue on the input page $20,000 $53,000 $2,000 $0 $600,000 $100,000 $161,000 $35,000 $10,000 $35,000 $5,000 $20,000 See note on depreciation on the input page
DEBT SERVICING WORKSHEET
DEBT SERVICING REQUIREMENTS
For the Period:
(When using as a projection, include new loans) Name:
CURRENT LIABILITIES
Accounts Payable Desciption
Balance Start of Year $0 $0 $0 $0
Interest Rate 0% 0% 0% 0%
Total Accts. Payable Operating Loan Loan Description Total Operating Loan
Annual Payments Interest Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Balance End of Year $0 $0 $0 $0 $0
$0 $0 $0 Balance Start of Year $0 $0 $0 $0 $0 $0 $0 $0 $0 0
0% 0%
$0 $0 $0
$0 $0 $0
$0 $0 $0 Balance End of Year $0 $0 $0 $0 $0 $0 $0 $0 $0 0
TERM LIABILITIES
Loan Description
Interest Rate 0% 0% 0% 0% 0% 0% 0% 0% 0%
Sub Total
Annual Payments Interest Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 0
Grand Total
0
0
0 0
0
Total Interest and Principal Payments
DEBT SERVICING CAPACITY
PREVIOUS YEAR
+ Farm Cash Revenue - Farm Cash Expenses = Net Cash from Operation + Interest Payments + Owner's Contributions - Owner's Withdrawals Cash Available For Principal and Int. Principal and Interest Payments Cash Available After P & I Payments Reserve for Asset Acquisition $0 $0 $0 $0 $0 $0 $0 0 $0 $0
PROJECTED YEAR
+ Farm Cash Revenue - Farm Cash Expenses = Net Cash from Operation + Interest Payments + Owner's Contributions - Owner's Withdrawals Cash Available For Principal and Int. Principal and Interest Payments Cash Available After P & I Payments Reserve for Asset Acquisition $0 $0 $0 $0 $0 $0 $0 0 $0 $0
Debt Servicing Capacity
0
Debt Servicing Capacity
0
STATEMENT OF CHANGE IN FINANCIAL POSITION
OPERATIONS Cash Revenue Cash Expenses Net Contributions (Use) from Operating FINANCING Increase (Decrease) in Operating Loan Term Borrowings Term Payments Owner's Contributions Owner's Withdrawals Net Contributions (Use) from Financing INVESTING Sale of Capital Assets Purchase of Capital Assets Net Contributions (Use) from Investing NET CHANGE IN CASH PROOF Ending Cash Beginning Cash Net Changes in Cash CASH DISCREPANCY 270,000 236,000 34,000
($25,000) 15,000 10,000 5,000 35,000 ($50,000)
13,500 28,000 ($14,500) ($30,500)
4,500 5,000 ($500) (30,000)