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					Orchard/Vineyard Cash Flow Planner
Version: 2.0 April, 2002 Roland P. Freund Farm Management Agent Penn State Cooperative Extension rfreund @psu.edu Purpose To project the cash flow for an orchard/vineyard operation over a period of seven years . Functions The orchardist/vigneron can use this for: Strategic planning - Examining the impact of changing acres of enterprises and the ratios of bearing to new plantings and pre-production acres within those enterprises. - Investment planning - Predicting debt repayment ability and availability of cash for family living purposes Risk Management - Viewing the impact of changes in yields and prices. - Plotting a strategy to replace trees removed for age, productivity, disease (Plumpox) etc. Caution No attempt has been made to calculate or predict Income and associated taxes. After a preliminary viewing of the results, these should be estimated and inserted in line 32. on the "Cash Flow" sheet. The assistance of your tax accountant will be necessary for accuracy. Note: Estimated taxes should be inserted in the year in which they will be PAID. Approach The program is designed for simplicity around three separate components - Enterprises, Whole Farm, and Investments and Loan Service. Enterprises Three budgets are prepared for each enterprise. These are differentiated into "Bearing," "Pre-production", and "Establishment" to reflect the phases in the life of a stand of trees. In the "Bearing" budget for producing trees, income is calculated from Yield and Price. From income the direct or variable costs are deducted to give an Enterprise Gross Margin. While some fuel and repairs are "variable" costs, for simplicity they are not included here. Whole Farm All income and expense items which have not been included in the enterprise budgets are treated as "Whole Farm". Investment and Loan Service This is to keep track of planned changes in the Capital Accounts of the business. It also serves to track the cost of servicing the credit needs to put this plan into effect and still maintain liquididty. Results are summarized in terms of Cash-flow. It is anticipated that analysis may be added later. Suggestion: Print these instructions before you continue. This simplifies surfing the workbook. Alternative Plans First prepare a "Base Plan" and save it "AS" a workbook which you can easily identify. For an alternative plan, "SAVE AS" a new named workbook and make the change you wish to observe. Care should be exercised to at least observe the impact on cash-flow of one input change before making another change of input. Remember: when changing acres in the production plan by establishing new plantings the user must insert all the changes of acres in subsequent years as such new plantings change from preproduction to bearing status. Likewise if removing acres of peaches in year 2, user must remove them from years3 to 6.
Instructions Continue ->

Navigation Instructions Layout The program uses numerous sheets of this "Workbook". Each is identified by the "tab" at the bottom of your screen. Simply click on the tab to move to that worksheet. All sheets are linked so that a change of input in one sheet automatically changes all related portions of every other worksheet. Sheets Read me first Describes the program and provides instruction on how to use it. Enterprise Budgets User can prepare budgets for three stages of up to eight tree/vine or annual crop enterprises. Production Plan The user can elect the years (up to seven) to be examined, and then define for each chosen enterprise and each year, the acres which will be allocated to bearing, growing and newly established trees. Income is calculated and shown for the bearing acres of each enterprise. A calculation section shows the cost by stage of growth for each enterprise and deducts the total of these costs from the income to arrive at a Gross Margin for each enterprise. Whole Farm In this section we account for operating income and expenses which are not included in the Enterprise Budgets sheet. Interest is dealt with in "Investments, Loans." Investments, Loans Capital transactions and the cost of debt service and loan activities are accounted for here. Cash Flow The results are tabulated here and presented in the form of estimated annual cash-flow. Provision has been made for split or delayed payments which will delay income into the next calendar year. Input instructions Enterprise Budgets These budgets are to be used for planning purposes, so the figures used should reflect your best estimate of average yield, price, and costs for the next five years. It is better to be conservative. It is important to differentiate orchard input costs between enterprises and between production phases. Ideally spray records or typical application schedules should be the basis for budgeting input costs. If whole-orchard costs are averaged, then this average number must be carefully weighted to estimate the cost for each phase of each enterprise. That may not be much better than an educated guess. Note: Annual crops (sweet corn, pumpkins etc.) are budgeted as "bearing year" crops. For simplification combine all preparation, planting and those "Establishment" costs as one year costs. Until trees are close to "normal" yield we treat them as being in the pre-productive phase. Budget costs as for second and third year stands. To adjust for yield from such trees adjust the acres in the "Production Plan" sheet to reflect expected fruit yields. See line 8 of next page - Production Plan instructions Input data is to be entered only in cells which are bordered in blue. Inputs will appear blue on the screen. For each enterprise use units in which that commodity is normally priced. Yield / Price: Use a five year average to estimate future yields and prices. % Income delayed to next year: Estimate the % of the total payments which will not be received from the processor or packer until the year following harvest. Picking cost: Base this on piece-work rates but raise it to cover the other costs of hiring those workers. Labor to Establish/Prune: Do not include the value of the contribution of owner or full-time salaried employees here. Those will be accounted for in "Whole Farm" expenses. Instructions Continue ->

Input Instructions - Continued Production Plan This is where production for past year plus plans for the current year and the next 5 years can be entered. Alternatively, use "Past Year" for first planning year, but follow "Past Year" instructions for inputs. - For each year the acres of each enterprise must be carefully considered and classified as "Bearing", Pre-production or "New Established." If new plantings are changed one year, then the consequent changes in subsequent years must be entered accordingly. This is where manager's judgment must be used. - "Pre-production" stands do not have zero yield for 5 years then suddenly have full yield. If 10 acres of young trees are bearing at 30% of mature yield, then enter 7 acres as preprodutive and 3 as bearing in the "Production Plan' sheet. - Likewise if an old block will have declining yield, reduce the effective bearing acres accordingly. - For the "Past Year" (1st Column) only enter that year's yield and actual cash receipts for that year. Inc. received this year: Include both delayed payments from previous season and new harvest receipts Income next year: Calculates the $ income from "Past year" harvest which will be paid in the next year. - All planning years automatically carry forward the yield and price from the relavent "Enterprise Budget". The payment delay in subsequent years are computed from the "Enterprise Budget" inputs. - Check "Total Orchard Acres" (Row 71) to be sure that your planned acres are consistent and do not exceed available resources. Whole Farm In this section we account for all operating income and expenses which are not already included in the preceding enterprise budgets and production plan. Capital purchases/debt service are not included here. Suggestion: Record actual figures for "Past year" (Col.C), then adjust planning years from these. These numbers can then be copied (Ctrl.R) across subsequent planning years or adjusted to reflect future changes in production plans in different years. Line 5: Cooperative dividends and similar distributions Line 6: Gas tax refund and other rebates. Lines 8 - 11: Insert your own farm income categories here - custom work, rental income, etc. Line 14: All non-farm gross wages, salaries, or investment incomes which are pertinent to the cash-flow of the business and the budgeted support of the family(ies) involved. Line 33: Partnership draws or cash withdrawn for family living. Include all income counted in line 14 if this income is normally allocated to those family purposes. Investments, Loans Capital assets, those used in the business for two or more years, are planned for in this section. Intermediate assets are those used from two to 10 years - machinery breeding stock, fruit trees Long-term assets are those used more than 10 years - buildings, structures, land etc. Pre-existing Loan Payment Obligations: Enter payments already scheduled to cover the amortized and scheduled payments on Debt Service for obligations on notes, loans and long-term mortgages which existed before the plan. Include amounts to cover all other loan obligations with "interest only" or "as available" terms. If using "Past Year" as first planning year, include all loan obligations planned for that year in this "Pre-existing Loan Payment" section and extend payments out for the applicable years. Capital Sales: Enter $amount of each planned capital sale in the appropriate category line ( 22 thru 32) and year column. In lines 26 and 32 enter the cash available from these sales after bank leins have been met. New Investments - Planned Capital Purchases: Describe each item or group of items to be purchased (lines 36, 38,41, 43) in each year of the plan. Enter $amount of each planned capital purchase in cell below the described item. (lines 37, 39, 32, 44.). If any of this scheduled debt is for establishing new plantings associated with the enterprises and calculated in the "Production Plan" sheet, the amount must be entered in the appropriate year on line 39. Credit terms for New Investments and Loans - Line 49 - 91. Each scheduled new capital obligation scheduled above copies down to this section. For each planned capital purchase enter the financing terms in lines c through f of the appropriate year. Payment obligations for each loan for each year of the planning period will be automatically calculated. The results of all of these computations are summarized in the calculation section, Columns K. - S.

ns Continue ->

Input Instructions - Continued Cash Flow The inputs near the bottom of this section are to enable the planner to "fine-tune" the results of an acceptable production and capital investment plan. It is better to approximate the cash flow effects of income taxes than to ignore them.

rs can be entered.

ied as "Bearing", he consequent changes nt must be used. eld. If 10 acres of and 3 as bearing in

Before entering inputs on this sheet, change inputs on prior sheets to get a figure you can live with in line 39 Income taxes - line 34: Line 30 can serve as a guide to taxable income - but only a guide. Tax management strategies and how capital items are depreciated can have a big impact on taxes. Consult your tax accountant after you have looked at enough alternatives to choose your plan. Remember to include income taxes in the year in which they are PAID. This may or may not be in the same year in which the income is EARNED.

pts for that year. new harvest receipts aid in the next year. Enterprise Budget".

stent and do not exceed

dy included in the are not included here. s from these. justed to reflect future

Interpretation of Results

It is important to recognise that these results reflect only the Cash Flow impact of a chosen plan

ent to the cash-flow

Enterprise Gross Margins (Lines 6 through 15) The Gross Margin is the $Income received in the year minus the budgeted expenses for each enterprise. For the calculations behind these numbers see the Calculation Section of "Production Plan" sheet. To compare Gross Margins per Acre devoted to each enterprise see lines 134 through 142 of that shee The total Gross Margin represents the net contribution all enterprises make to the farm

ounted in line 14

Whole Farm Margin - (Line22) To line 15 is added Other Farm Income, and whole farm expenses are deducted - from "Whole Farm " sh Net Farm Revenue (Line 26) This gives us an indication of the cash-flow impact of the farm operation. From Whole Farm Margin is deducted Debt Service from "Investment,Loans" sheet. Apparent Surplus/Deficit (Line 36) This adjusts Farm Revenue for Non-farm Income and Family Living and Income Taxes. However, there is a cash-flow discrepancy whenever Term Loans are used to cover enterprise costs which had already been calculated in the Gross Margin computations of Establishment Year etc. Line 38 adds the proceeds of such loans back into cash flow which enables us to get a clearer picture of:

ock, fruit trees

ed before the plan.

for that year in this

hru 32) and year column.

h year of the plan. (lines 37, 39, 32, 44.). enterprises and ropriate year on line 39.

Cash Surplus/Deficit (Line 41) This represents the "Bottom Line"cash flow value of business and family for each year. If this shows numbers which will be difficult or impossible to handle then the plan needs to be changed Re-examine the Investments and loans and try a more conservative capital investment plan. Revise the Production Plan concentrating on long-term production potential, even if it may be necess to borrow money for a few years to cover establisment costs of new plantings.

f the appropriate year. utomatically calculated. ion, Columns K. - S.

o "fine-tune" the results of an

o ignore them.

et a figure you can live with in line 39.

ted can have a big impact on taxes. ernatives to choose your plan. PAID. This may or may not be

ash Flow impact of a chosen plan.

geted expenses for each enterprise. ction of "Production Plan" sheet. ee lines 134 through 142 of that sheet. make to the farm

e deducted - from "Whole Farm " sheet.

ent,Loans" sheet.

nd Income Taxes. are used to cover enterprise costs ons of Establishment Year etc. nables us to get a clearer picture of:

nd family for each year. e then the plan needs to be changed. ative capital investment plan. on potential, even if it may be necessary new plantings.

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls Fruit Production Budgets Version: 2.0 Enter data in blue cells Sample data for illustration only. Use your own facts Farm Name: Example Fruit Farm Note: In these budgets include only direct seasonal or piecework labor for picking, pruning planting etc. which can be easily allocated to each enterprise. Enter all other labor in "Whole Farm" section. Per Acre Variety Fresh Apples Variety Process. Apples Fresh Apples Bearing Pre-prodn Establish Bearing Pre-prodn Establish Current Next Income: Year Inc. Year Inc. Yield 500 650 $ 1,125 $ 1,125 Price per $ 4.50 $ 2.60 %Inc.delayed to next year 50 35 Picking Cost $/Unit $ 0.60 $ 0.56 Process. Apples Direct Expenses: Current Next Land Preparation 0 Year Inc. Year Inc. Fumigation etc. $ 1,099 $ 592 Trees/Vines/seed 10 1875 10 1875 Stakes/support Fertilizer 12 25 40 12 25 40 Chemicals 320 75 50 215 75 50 Supplies 0 20 20 0 20 20 Labor-Establish,Prune 250 125 0 0 Transport 0 0 Crop Insurance 28 28 Custom operations Note: Calculated Harvest Labor $ 300.00 $ 364.00 If payments are delayed Total Expense $ 910 $ 130 $ 1,985 $ 744 $ 130 $ 1,985 these Gross Margins may not agree with the Enterprise Gross Margin $ 1,340 $ (130) $ (1,985) $ 946 $ (130) $ (1,985) figures on next sheet. Per Acre Peaches Variety Pre-prodn Establish Bearing 7500 0.18 20 0.02 0 30 15 125 0 75 25 25 0 0 800 0 40 20 0 0

Variety Bearing Income: Yield Price per %Inc.delayed to next year Picking Cost $/Unit Direct Expenses: Land Preparation Fumigation etc. Trees/Vines/seed Stakes/support Fertilizer Chemicals Supplies Labor-Establish,Prune Transport Crop Insurance Custom operations Calculated Harvest Labor Total Expense Enterprise Gross Margin 100 15.00 0 0.50

Cheeries Tart Pre-prodn Establish

Peaches Current Year Inc. $ 1,500

Next Year Inc. $ -

$ $

$ $ 0 0 675 40 50 10 0

Cheeries Tart Current Next Year Inc. Year Inc. $ 1,080 $ 270

22 14 125 160 75 0 0 $ $ $ 50.00 424 1,076 25 50 10 0

$ $

107

$

775 (775)

$ $ $

150.00 365 985

$ $

80

$

860 (860)

(107) $

(80) $

Note: If payments are delayed these Gross Margins may not agree with the figures on next sheet.

Penn State Farm Management Extension

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls Variety Bearing Income: Yield Price per %Inc.delayed to next year Picking Cost $/Unit Direct Expenses: Land Preparation Fumigation etc. Trees/Vines/seed Stakes/support Fertilizer Chemicals Supplies Labor-Establish,Prune Transport Crop Insurance Custom operations Calculated Harvest Labor Total Expense Enterprise Gross Margin 3 $ 1,400.00 $ 300.00 100 25 60 300 30 350 40 200 30 50 2137.5 500 40 100 40 400 35 50 50 5 Per Acre Wine Grapes Variety Pre-prodn Establish Bearing 400 2.75 0.15 Sweet Corn Pre-prodn Establish Wine Grapes Current Next Year Inc. Year Inc. $ 4,200 $ -

$ $

Sweet Corn Current Next Year Inc. Year Inc. $ 1,100 $ -

$ $ $

900.00 1,640 2,560

$ $

345

$

3,318 (3,318)

$ $ $

60.00 200 900

$ $

-

$ $

-

(345) $

Note: If payments are delayed these Gross Margins may not agree with the figures on next sheet.

Income: Yield Price per %Inc.delayed to next year Picking Cost $/Unit Direct Expenses: Land Preparation Fumigation etc. Trees/Vines/seed Stakes/support Fertilizer Chemicals Supplies Labor-Establish,Prune Transport Crop Insurance Custom operations Calculated Harvest Labor Total Expense Enterprise Gross Margin

Variety Bearing (box) $ $ 400 8.50 1.00

Per Acre Tomato Variety Pre-prodn Establish Bearing (box) $ $ 500 12.00 3.00

Vegetable Misc. Pre-prodn Establish

Tomato Current Year Inc. $ 3,400

Next Year Inc. $ -

Vegetable Misc. Current Next Year Inc. Year Inc. $ 6,000 $ -

100 25 30 100 320

100 50 25 400

$ $ $

400.00 975 2,425

$ $

-

$ $

-

$ 1,500.00 $ 2,075 $ 3,925

$ $

-

$ $

-

Note: If payments are delayed these Gross Margins may not agree with the figures on next sheet.

Penn State Farm Management Extension

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls A B C 1 2 3 Farm Name: 4 Year 5 6 Fresh Apples 7 Acres Bearing 8 Acres Pre-Production 9 Acres New Establish 10 Yield/Bearing Acre 11 Price $/Unit 12 Inc. received this year 13 Income next year 14 Process. Apples 15 Acres Bearing 16 Acres Pre-Production 17 Acres New Establish 18 Yield/Bearing Acre 19 Price $/Unit 20 Inc. received this year 21 Income next year 22 Peaches 23 Acres Bearing 24 Acres Pre-Production 25 Acres New Establish 26 Yield/Bearing Acre 27 Price $/Unit 28 Inc. received this year 29 Income next year 30 Cheeries Tart 31 Acres Bearing 32 Acres Pre-Production 33 Acres New Establish 34 Yield/Bearing Acre 35 Price $/Unit 36 Inc. received this year 37 Income next year 38 Wine Grapes 39 Acres Bearing 40 Acres Pre-Production 41 Acres New Establish 42 Yield/Bearing Acre 43 Price $/Unit 44 Inc. received this year 45 Income next year 46 Sweet Corn 47 Acres Bearing 48 Acres Pre-Production 49 Acres New Establish 50 Yield/Bearing Acre 51 Price $/Unit 52 Inc. received this year 53 Income next year 54 Tomato 55 Acres Bearing 56 Acres Pre-Production 57 Acres New Establish 58 Yield/Bearing Acre 59 Price $/Unit 60 Inc. received this year 61 Income next year 62 Vegetable Misc. 63 Acres Bearing 64 Acres Pre-Production 65 Acres New Establish 66 Yield/Bearing Acre 67 Price $/Unit 68 Inc. received this year 69 Income next year 70 all enterprises 71 Total Orchard acres 72 73 Direct Expenses 74 Fresh Apples 75 Bearing 76 Pre-Production D E F Orchard/Vineyard Production Plan G H I

Example Fruit Farm Past Planning 2 3 4 5 6 2002 2003 2004 2005 2006 2007 2008 Actual 48 48 34 35 36 39 43 2 2 4 7 9 6 2 3 4 3 542 500 500 500 500 500 500 $ 3.25 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $68,000 $ 96,276 $ 92,250 $ 77,625 $ 79,875 $ 84,375 $ 92,250 $ 42,276 $ 54,000 $ 38,250 $ 39,375 $ 40,500 $ 43,875 $ 48,375 150 3 140 3 141 2 142 142 142 142

650 650 650 650 650 650 650 2.60 $ 2.60 $ 2.60 $ 2.60 $ 2.60 $ 2.60 $ 2.60 $297,775 $ 242,515 $ 237,699 $ 239,389 $ 239,980 $ 239,980 $ 239,980 $ 88,725 $ 82,810 $ 83,402 $ 83,993 $ 83,993 $ 83,993 $ 83,993 $ 8 8 0 0 0 4 100 100 15.00 $ 15.00 $12,000 $ 12,000 $ 2002 2003 25 25 4 4 0 7500 7500 0.18 $ 0.18 33,750 $ 33,750 6,750 $ 6,750 0 0 8 8 10 13 14 4 6 4 1 2 100 100 100 100 100 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 12,000 $ 12,000 $ 15,000 $ 19,500 $ 21,000 $ $ $ $ $ 2004 2005 2006 2007 2008 5 5 5 6 7 4 4 4 3 2 7500 0.18 $ 12,150 $ 1,350 $ 7500 0.18 $ 6,750 $ 1,350 $ 7500 0.18 $ 6,750 $ 1,350 $ 7500 0.18 $ 7,830 $ 1,620 $ 7500 0.18 9,180 1,890

$ $

$ $ $

$ $ $

$ $ $

0 1 3 5 6 2 3 3 1 2 2 2 0 3 3 3 3 3 3 2.75 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ $ $ 4,200 $ 12,600 $ 21,000 $ 25,200 $ $ $ $ $ $ 8 8 8 8 8 8 8

$ $ $

400 2.75 $ 8,800 $ $ 2

400 2.75 $ 8,800 $ $ 2

400 2.75 $ 8,800 $ $ 2

400 2.75 $ 8,800 $ $ 2

400 2.75 $ 8,800 $ $ 2

400 2.75 $ 8,800 $ $ 2

400 2.75 8,800 2

$ $ $

400 8.50 6,800 $ $ 1

400 8.5 $ 6,800 $ $ 1

400 8.50 $ 6,800 $ $ 1

400 8.50 $ 6,800 $ $ 1

400 8.50 $ 6,800 $ $ 1

400 8.50 $ 6,800 $ $ 1

400 8.50 6,800 1

$ $ $ $

500 500 500 500 12.00 12 $ 12.00 $ 12.00 6,000 $ 6,000 $ 6,000 $ 6,000 $ $ $ 433,125 $ 406,141 $ 375,699 $ 361,564 248.00 247.00 220.00 224.00 Calculation Section 2002 43,680 260 2003 43,680 260 2004 30,940 520 2005 31,850 910

500 $ 12.00 $ 6,000 $ $ 375,805 224.00

500 $ 12.00 $ 6,000 $ $ 394,285 224.00

500 $ 12.00 $ 6,000 $ $ 409,210 224.00

$ $

$ $

$ $

$ $

$ $

2006 32,760 1,170

$ $

2007 35,490 780

$ $

2008 39,130 260

Penn State Farm Management Extension

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls E 77 Establish $ $ $ 7,940 78 Total $ 43,940 $ $ 39,400 79 Process. Apples 80 Bearing $ 111,600 $ 104,160 $ 104,904 81 Pre-Production $ 390 $ 390 $ 260 82 Establish $ $ $ 83 Total $ 111,990 $ 104,550 $ 105,164 84 Peaches 85 Bearing $ 3,392 $ 3,392 $ 3,392 86 Pre-Production $ $ $ 428 87 Establish $ $ 3,100 $ 1,550 88 Total $ 3,392 $ 6,492 $ 5,370 89 Cheeries Tart 90 Bearing $ 9,125 $ 9,125 $ 1,825 91 Pre-Production $ $ 320 $ 320 92 Establish $ 3,440 $ $ 93 Total $ 12,565 $ 9,445 $ 2,145 94 Wine Grapes 95 Bearing $ $ $ 96 Pre-Production $ $ $ 690 97 Establish $ $ 6,635 $ 6,635 98 Total $ $ 6,635 $ 7,325 99 Sweet Corn 100 Bearing $ 1,600 $ 1,600 $ 1,600 101 Pre-Production $ $ $ 102 Establish $ $ $ 103 Total $ 1,600 $ 1,600 $ 1,600 104 Tomato 105 Bearing $ 1,950 $ 1,950 $ 1,950 106 Pre-Production $ $ $ 107 Establish $ $ $ 108 Total $ 1,950 $ 1,950 $ 1,950 109 Vegetable Misc. 110 Bearing $ 2,075 $ 2,075 $ 2,075 111 Pre-Production $ $ $ 112 Establish $ $ $ 113 Total $ 2,075 $ 2,075 $ 2,075 114 115 Gross Margins 2002 2003 2004 116 Fresh Apples 24,060 46,381 52,850 117 Process. Apples 185,785 137,965 132,535 118 Peaches 8,608 5,508 6,630 119 Cheeries Tart 21,185 24,305 10,005 120 Wine Grapes 0 (6,635) (7,325) 121 Sweet Corn 7,200 7,200 7,200 122 Tomato 4,850 4,850 4,850 123 Vegetable Misc. 3,925 3,925 3,925 124 Total G.M. 255,613 223,499 210,670 125 Acres 126 Fresh Apples 50 53 42 127 Process. Apples 153 143 143 128 Peaches 8 12 14 129 Cheeries Tart 29 29 9 130 Wine Grapes 0 2 4 131 Sweet Corn 8 8 8 132 Tomato 2 2 2 133 Vegetable Misc. 1 1 1 134 Gross Margin per Acre - Based upon cash flow for each year. 135 Fresh Apples $ 481 $ 875 $ 1,258 136 Process. Apples $ 1,214 $ 965 $ 927 137 Peaches $ 1,076 $ 459 $ 474 138 Cheeries Tart $ 731 $ 838 $ 1,112 139 Wine Grapes #DIV/0! $ (3,318) $ (1,831) 140 Sweet Corn $ 900 $ 900 $ 900 141 Tomato $ 2,425 $ 2,425 $ 2,425 142 Vegetable Misc. $ 3,925 $ 3,925 $ 3,925 A B C D 5,955 49,895 $ $ F 5,955 38,715 G $ $ 33,930 $ $ H 36,270 $ $ I 39,390

$ 105,648 $ $ $ 105,648 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,392 642 4,034 1,825 320 2,145 1,640 1,035 6,635 9,310 1,600 1,600 1,950 1,950 2,075 2,075 2005 38,910 133,741 7,966 4,605 (5,110) 7,200 4,850 3,925 196,087 45 142 14 9 6 8 2 1 $ $ $ $ $ $ $ $ 865 942 569 512 (852) 900 2,425 3,925

$ 105,648 $ $ $ 105,648 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,240 428 4,668 1,825 320 2,145 4,920 1,035 5,955 1,600 1,600 1,950 1,950 2,075 2,075 2006 45,945 134,332 10,332 4,605 6,645 7,200 4,850 3,925 217,834 45 142 14 9 6 8 2 1 $ $ $ $ $ $ $ $ 1,021 946 738 512 1,108 900 2,425 3,925

$ 105,648 $ $ $ 105,648 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5,512 107 5,619 2,190 240 2,430 8,200 345 8,545 1,600 1,600 1,950 1,950 2,075 2,075 2007 48,105 134,332 13,881 5,400 12,455 7,200 4,850 3,925 230,148 45 142 14 9 6 8 2 1 $ $ $ $ $ $ $ $ 1,069 946 992 600 2,076 900 2,425 3,925

$ 105,648 $ $ $ 105,648 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5,936 5,936 2,555 160 2,715 9,840 9,840 1,600 1,600 1,950 1,950 2,075 2,075 2008 52,860 134,332 15,064 6,465 15,360 7,200 4,850 3,925 240,056 45 142 14 9 6 8 2 1 $ $ $ $ $ $ $ $ 1,175 946 1,076 718 2,560 900 2,425 3,925

Penn State Farm Management Extension

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls

A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

B

D E F G H Whole Farm Income and Expenses All income and expenses which have NOT already been included in the Enterprise Budgets 2002 $ 7,752 $ 1,800 $ 22,000 $ $ $ $ $ 1,200 15,000 47,752 2002 $ 25,000 $ 3,400 $ 20,000 $ 25,000 $ $ 12,500 $ 4,200 $ 22,000 $ $ 14,000 $ 10,000 $ 5,000 $ 4,000 $ 145,100 Actual 54,600 2003 $ 7,752 $ 1,800 $ 22,000 $ $ $ $ $ 1,200 10,000 42,752 2003 $ 25,000 $ 3,400 $ 20,000 $ 25,000 $ $ 12,500 $ 4,200 $ 22,000 $ $ 14,000 $ 10,000 $ 5,000 $ 4,000 $ 145,100 2004 $ 7,752 $ 1,800 $ 22,000 $ $ $ $ $ 1,200 5,000 37,752 2004 $ 25,000 $ 3,400 $ 17,000 $ 20,000 $ $ 12,500 $ 3,400 $ 22,000 $ $ 12,000 $ 10,000 $ 5,000 $ 4,000 $ 134,300 2005 $ 7,752 $ 1,800 $ 22,000 $ $ $ $ $ 1,200 32,752 2005 $ 25,000 $ 3,400 $ 17,500 $ 20,000 $ $ 12,500 $ 3,400 $ 22,000 $ $ 12,000 $ 10,000 $ 5,000 $ 4,000 $ 134,800 2006 $ 7,752 $ 1,800 $ 22,000 $ $ 1,200 $ $ 32,752 $ 2006 $ 25,000 $ 3,400 $ 18,000 $ 21,000 $ $ 12,500 $ 3,400 $ 22,000 $ $ 12,000 $ 10,000 $ 5,000 $ 4,000 $ 136,300 2007 $ 7,752 $ 1,800 $ 22,000 $ $ $ $ $ 1,200 32,752 2007 $ 25,000 $ 3,400 $ 18,500 $ 21,500 $ $ 12,500 $ 3,400 $ 22,000 $ $ 12,000 $ 10,000 $ 5,000 $ 4,000 $ 137,300

C

Income - farm general Dividends Rebates Government payments Interest Rent Wood Sales Farm Market Total Income - non-farm Expenses Indirect/Fixed Costs Payroll(not in Ent.Budgets) Misc labor & assoc. costs Fuel/Oil Repairs Machine Repairs Building Utilities Property Taxes Insurance Farm Truck, Auto Dues/Accounting Land Rent Operating Interest Misc. Total

Family Living Required $

------------------------------------ Projected ------------------------------------------$ 54,600 $ 54,600 $ 54,600 $ 54,600 $ 54,600

Penn State Farm Management Extension

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls

I 1 2 3 4 2008 5 $ 7,752 6 $ 1,800 7 $ 22,000 8 9 $ 10 $ 1,200 11 $ 12 $ 32,752 13 14 $ 15 16 2008 17 18 $ 25,000 19 $ 3,400 20 $ 19,000 21 $ 22,000 22 $ 23 $ 12,500 24 $ 3,400 25 $ 22,000 26 $ 27 $ 12,000 28 $ 10,000 29 $ 5,000 30 $ 4,000 31 $ 138,300 32 -----------------------33 34 $ 54,600

Penn State Farm Management Extension

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 B C D E F Investment Plan and Loan Service G H I J K L M N O P Calculation Section SUMMARY 2004 2005
47450 24000 71450 20078 24000 44078

Q

R

Pre-existing Loan Payment Obligations 2002 Scheduled Debt Service 2002 2003 2004 2005 2006 2007 2008 Existing Intermediate Long-term $ 20,078 $ 20,078 $ 20,078 Tot.Payments Capital Sales Intermediate Long-term Total Sales
89450 47450 42000

2003

2006
20078 24000 44078

2007
20078 24000 44078

47450 33000 80450

Intermediate Principle and Interest - total annual payments F.S.A. $ 27,372 $ 27,372 $ 27,372 Citizen's Bank $ 20,078 $ 20,078 $ 20,078 $ 20,078 Machinery Dealer

Long term Principle and Interest - total annual payments Citizen's Bank $ 18,000 $ 9,000 $ $ FSA Mortgage $ 24,000 $ 24,000 $ 24,000 $ 24,000

0 0 0

0 15000 15000

0 0 0

0 0 0

0 0 0

0 0 0

$ $ 24,000

$ $ 24,000

$ $ 24,000

Total Debt Service: Capital Sales Intermediate Surplus equipment

89,450 2002

80,450 2003

71,450 2004

44,078 2005

44,078 2006

44,078 2007

44,078 2008

Capital Purchases Own Funds

Enter $ amount you plan to get from sales of machinery, equipment, vehicles etc..

Lenders may require this be used for debt reduction. If so adjust debt payments above. If Cash available Enter $ amt. here: Long-term Enter $ amount you plan to get from sales of land and fixed improvements etc.. Asset for sale: 60 ac.Orchard Land Land + Improvements 310,000 Lenders may require this be used for debt reduction. If so adjust debt payments above. If Cash available Enter $ amt. here: 15,000 New Investments - Planned Capital Purchases Intermediate 2002 2003 2004 2005 2006 2007 2008 1 Equipment Description Mower Purchase Price $ 12,000 $ 2 Loans for Planting(1.) Description Planting Planting Planting Planting Planting Planting Purchase Price $ Long-term 3 Buildings/ImprovementsDescription Purchase Price $ 4 Real Estate Description Purchase Price (1.) Note: This is to account for term loans used to cover establishment costs etc. of new plantings.

New Loan Payments Intermediate Long-term Total 0

1856 0 1856

2784 0 2784

2784 0 2784

2784 0 2784

2784 0 2784

Cash Required

89450

67306

74234

46862

46862

46862

Any funds injected into business to cover establishment and/or operating costs. Include bank finance, other notes and own savings or cash reserves.

Penn State Farm Management Extension

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls S 1 2 3 4 2008 5 6 20078 7 8 24000 9 10 44078 11 12 13 0 14 0 15 0 16 17 18 19 20 21 22 23 24 928 25 0 26 928 27 28 29 45006 30 31 32 33 34 35 36 37 operating costs. 38 39 40 41 42 43 44 45

Penn State Farm Management Extension

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls A 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 B C D E F G H I J K L M N O P Q R

Credit Terms for New Investments and Loans
1 a b c d e f g h 2 a b c d e f g h Equipment ( Intermediate) investment required for this proposal: Year 2002 2003 2004 2005 2006 Item name: Description Mower $ $ $ Initial cost: $ $ 12,000 $ $ $ Amount of loan: $ $ 12,000 $ $ Interest rate: % 6 8 2 Loan period: years 5 4 15 Payments this year months 8 6 Monthly payment $231.99 Own funds used

1
2007 $ $ 2008 $ $ -

# of Equipment Annual Payments Loan Paymts 2003 2004 2005 2006
2003 2004 2005 2006 2007 60 48 0 180 0 0 1856 2784 2784 2784 1856 2784 0 2784 0 0 2784 0 0 0

2007
2784 0 0 0 0 2784

0

2008

Loans for Planting (Intermediate) investment required for this proposal:
Year Item name: Initial cost: Amount of loan: Interest rate: Loan period: Payments this year Monthly payment Own funds used 2002 2003 Description Planting $ $ $ $ % 9 years 4 months 6 2004 Planting $ 2005 Planting $ 2006 Planting $ 2007 Planting $ 2008 Planting $ -

2

# of Loans for Planting Annual Payments Loan Paymts 2003 2004 2005 2006
2003 2004 2005 2006 2007 2008 48 48 36 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2007
0 0 0 0 0 0

$ 8 4 6

-

$ 8 3 9

-

$

-

3 Buildings/Improvements (Long Term) investment required for this proposal: Year 2002 2003 2004 2005 2006 a Item name: Description 0 0 0 0 b Initial cost: $ $ $ $ $ c Amount of loan: $ $ d Interest rate: % 8.00 e Loan period: years 10.00 f Payments this year months 6 g Monthly payment h Own funds used 4 a b c d e f g h

3
2007 0 $ 0 $ 2008 -

# of Loan Paymts
2003 2004 2005 2006 2007 2008 0 0 120 0 0 0

Buildings/Improvements Annual Payments 2003 2004 2005 2006 2007
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Real Estate (Long-term) investments required for this proposal:
Year Item name: Initial cost: Amount of loan: Interest rate: Loan period: Payments this year Monthly payment Own funds used 2002 2003 Description 0 $ $ $ % years months 2004 0 $ 0 $ 2005 0 $ 2006 0 $ 2007 0 $ 2008 -

4

# of Loan Paymts
2003 2004 2005 2006 2007 2008 0 0 0 0 0 0

Real Estate Annual Payments 2003 2004 2005 2006
0 0 0 0 0 0 0 0 0 0

2007
0 0 0 0 0

0

0

0

0

0

Penn State Farm Management Extension

cf9aa72d-033f-4e7c-af9e-ee35b91e13e6.xls S

46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Payments 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91

2008
928 0 0 0 0 0 928

2008
0 0 0 0 0 0 0

2008
0 0 0 0 0 0 0

2008
0 0 0 0 0 0 0

Penn State Farm Management Extension

Orchard Planner 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 E F Cash Flow Projection Results of plan outlined on prior sheets. Be sure that you can live with line 41 $$. Farm Name: Example Fruit Farm 2002 2003 2004 2005 EnterpriseGross Margins Fresh Apples 24,060 46,381 52,850 38,910 Process. Apples 185,785 137,965 132,535 133,741 Peaches 8,608 5,508 6,630 7,966 Cheeries Tart 21,185 24,305 10,005 4,605 Wine Grapes 0 (6,635) (7,325) (5,110) Sweet Corn 7,200 7,200 7,200 7,200 Tomato 4850 4850 4850 4850 Vegetable Misc. 3925 3925 3925 3925 Total Gross Margins 255,613 223,499 210,670 196,087 Other Farm Income Total $ 47,752 303,365 $ 42,752 266,251 $ 37,752 248,422 $ 32,752 228,839 $ A B C D G H I J K L M N

2006 45,945 134,332 10,332 4,605 6,645 7,200 4850 3925 217,834 32,752 250,586 $

2007 48,105 134,332 13,881 5,400 12,455 7,200 4850 3925 230,148 32,752 262,900 $

2008 52,860 134,332 15,064 6,465 15,360 7,200 4850 3925 240,056 32,752 272,808

less Whole Farm Expenses $145,100 $145,100 $134,300 $134,800 $136,300 $137,300 $138,300 = Whole Farm Margin $158,265 $121,151 $114,122 $94,039 $114,286 $125,600 $134,508 less Term Debt Service $89,450 $67,306 $74,234 $46,862 $46,862 $46,862 $45,006 = Net Farm Revenue $68,815 $53,845 $39,888 $47,177 $67,424 $78,738 $89,502 + Non Farm Income $0 $0 $0 $0 $0 $0 $0 = Net Cash available $68,815 $53,845 $39,888 $47,177 $67,424 $78,738 $89,502 less Family Living needs $54,600 $54,600 $54,600 $54,600 $54,600 $54,600 $54,600 less Anticipated Income Taxes $ $ $ $ $ $ $ = Apparent Surplus/Deficit $14,215 ($755) ($14,712) ($7,423) $12,824 $24,138 $34,902 + Term Loans to cover Enterprise Expenses 0 0 0 0 0 0 0

This figure should give a rough guide to taxable income if all non-farm income is included in the totals.

Enter in the year in which taxes will be paid.

Cash Surplus/Deficit

$14,215

($755)

($14,712)

($7,423)

$12,824

$24,138

Before entering inputs on this sheet, change inputs on $34,902 <- prior sheets to get a figure you can live with in line 41.

Penn State Extension Farm Management


				
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