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Free Lease Agreement Template - Excel

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Free Lease Agreement Template - Excel Powered By Docstoc
					Introduction to CowCalfFeederStockerBudget spreadsheet:
This spreadsheet is for use in estimating the income and expenses for the beef cow enterprise.
This spreadsheet uses a economic approach rather than an financial approach to estimate income
and costs incurred by the enterprise. The financial approach uses actual income and expenses
incurred, even though they are estimated. An example of this approach is using actual interest expense
and the actual principal payments made. An alternative approach, economic, is to use opportunity cost to
estimate the costs of using assets in the beef cow enterprise. To clarify these two approaches an
example is presented below that describes the basics of each approach.

Assume:
          1- You have a land worth $5,000,000 used for the beef enterprise (range, hay base, etc.)
                     This is what it is worth, not what you paid for it.
          2- You have a loan on this land ($400,000) with an annual payment of approximately $26,000.
          3- You are 22 years in to a thirty year loan schedule.
                     See the LoanCalc1 tab in this spreadsheet to see what the principle and interest
                     would be on a loan for this property. This is just an example
          4- Principle is about $16,775 and interest is about $9,250.
          5- Long term real interest rates are estimated to about 4%
                     Real interest rate is the "Nominal" or quoted rate minus the expected inflation rate
                     For example 7% nominal minus 3% expected inflation rate is a 4% real interest rate
Financial Approach:
          1- You would enter the principle and interest rates shown in number 4 above in this spreadsheet
                     These are the financial cost (the cost you would enter in your record keeping system)
Economic Approach.
          1- The economic approach ignores information about loan principal and interest amounts and uses
          an opportunity costs approach. The opportunity cost approach uses the real rate of interest, assumed
          above at 4%, to estimate the cost of using the resources in the beef cow enterprise. Using the
          assumption of a 4% real rate of interest and a "market value" of $5,000,000, the opportunity cost
          of using this land to produce beef cows is $5 million times 4% = $200,000. The opportunity cost
          estimate of $200,000 is used instead of the principal and interest payments estimated in # 4 above.

Other differences between the two approaches exist but this example serves to illustrate a major difference.
Most income and expense that are cash (income actually received in cash or an expense actually paid in cash)
are the same in both approaches. Examples are fuel, repairs, fertilizer, chemical, hired labor costs paid in cash
or cash received for calf sales.

Both of these estimation methods can be useful, even for the same operation. An example would be using the
financial approach on an operation that is complete debt free. Using the financial approach does provide useful
results, but it may not represent the true economic costs of using such valuable resources to produce
beef. These approaches are presented with judgments left to the user on which may best fit their particular needs.

For a spreadsheet that uses the Financial Approach, download the spreadsheet titled
          BeefFinancial-and-PartialBudget.xls          from this web address:
          http://www.montana.edu/extensionecon/softwaredownloads.html
                       Cost of Production Estimates for Commercial Cow Calf Enterprise
                Blue text and double lined boxes indicate numbers/text/labels that should be changed to match



                Production Information
                Breeding Herd Size Beginning of Breeding Season - Include cows and 1st calf heifers
                Pregnancy percentage
                Number Pregnant After Breeding Season in                   2007
                Number Open, culled and sold before winter feeding period
                Calving Percentage based January 1 cow numbers
                Number cows that calved based on January 1 cows in
                Cull cows sold after calving & before next breeding cycle in
                Total Cull Cows available for sale after breeding and/or calving
                Percent calf loss at calving time
                Number of live calves born in         2008
                Weaning Percentage based on live calves born
                Number of Calves Weaned in            2008
                                                                        Rep. Heifers Needed
                Replacements Needed (from culled animals plus death loss of 1% beginning herd size)
                Average Cull Rate based on beginning breeding inventory
                Replacements are Purchased or Raised (P or R)
                Replacements Heifers kept from calf crop                Rep. Heifers Kept
                Replacement Breeding Cows or Heifers Purchased and added to breeding herd
                Average No. Cows per Bull, Adjust for No. animals A.I.
                Number bulls at beginning of Breeding Season
                Average Purchase Price of Bulls
                Value of Avg Cow in Breeding Herd

                                                                   Net Market
                Livestock Sales                     Head/Quantity    Weight
                 Strs to sell @ weaning                  126            600
                 Hfrs to sell @ weaning                   76            575
                Other Animals                             0              0
                Other Animals                             0              0
                 Cull Cows (1% death loss)                40           1250
                 Cull Rep. Heifers                        6             900
                 Cull Bulls                               4            1800
                 Other Income (semen, Etc.)               0              0
                                  Total Calves Sold      202
                               Totals Animals Sold      252
                                      Livestock Cash Sales per Head of Breeding Cows at the Start of the Breed




Replacement Heifers                                     Quantity    Weight
Purchased Replacement Heifers                              0            0
Raised Replacements                                   Non-Cash Adjustments to the "Cash" Value of Production
Transfer of Raised Rep. Hefr. To Breeding                    44            530
Death Loss of Replacement Heifers                            0               0
                                                                        Total Revenue (Calf & Non-Calf, Cash and

Since this is a "budget" for a typical years operation, herd size should not vary significantly from the beginning to the
If the numbers entered show significant variation from the beginning to the end of the year in the numbers check bel
adjust the cull cow numbers, death loss, or replacement heifer numbers until that variation is eliminated.
       Retained Ownership Profitability Analysis - Cost of Production (Breakeven) Calculator

              This worksheet can be used to analyze retained ownership for feeding at home, or feeding away
              from home. If feeding away from home, the expenses you incur may come in different forms ($
              per pound of feed plus lot charges, or dollars per pound of gain). This spreadsheet will handle all
              these situations. Simply enter the information relavent to the situation you want to anlayze. Make
              sure all other numbers not relating to a particular situatioin are set to zero so expenses are not
              overstated.




       Enter text in blue below                                                 Shading = number is calculated/protected.
       Enter a Description of the retained ownership option being analyzed:
                                Double lined boxes and blue text indicate numbers that are entered.

       1.) Weighted Average Purchase Price of Cattle ($/CWT): $             110.00                       Cost/Value/Head
       2.) Weighted Average Purchase Weight of Cattle (LBS):                   628                           $690.80
       3.) Number of Head You Intend to Feed:                                  200

      4.) Feed Information:                       Feed Name         LBS/Head/Day           $/LB             Cost
        For Each Feed Item, Enter The          1)                             0      $             -               0
      Pounds Fed Per Head Per Day and          2) Alfalfa Hay                15      $            0.03          0.45
    The Cost in Dollars Per Pound of Feed      3) Supplement               0.06      $            0.08       0.0048
                                               4)                             0      $             -               0
                                               5)                             0      $             -               0
                                               6)                             0      $             -               0
                                               7)                             0      $             -               0
                                               8)                             0      $             -               0
                                               9)                             0      $             -               0
                                             10)                              0      $             -               0
                                          Totals:                         15.06                   0.11       0.4548

       5.) Number of Days on Feed:                                                          180
       6.) Expected Average Daily Gain (LBS/Head):                                         1.25
       7.) Interest Rate on Borrowed Money (%): (OR Opportunity Cost of Own Money) 8.00
       8.) Tax on Livestock ($/Head):                                             $         -
       9.) Veterinary and Medical Expense ($/Head):                               $        7.50
       10.) Transportation Cost to the Feedlot ($/Head):                          $         -
       11.) Transportation Cost to Market ($/Head):                               $         -
       12.) Facility Repair Costs for the Enterprise (Total $):                   $      400.00
                                                                                  $
       13.) Total Fuel Costs for the Enterprise ($): (Excluding Cattle Transporation) 1,350.00            Straight
       14.) Capital Purchases and Improvements:   Item Name             Cost          Life                Line Dep.
                                              1)                   $         -                0                 0.00
For Each Capital Purchase or Improvement 2)                        $         -                0                 0.00
   For This Enterprise, Enter the Cost and 3)                      $         -                0                 0.00
        Expected Years of Life.               4)                   $         -                0                 0.00
                                              5)                   $         -                0                 0.00
                                              6)                   $         -                0                 0.00
                                              7)                   $         -                0                 0.00
                                              8)                   $         -                0                 0.00
                                              9)                   $         -                0                 0.00
                                             10)                   $         -                0                 0.00
                            Total Capital Costs:                            0.00                                0.00

       15.) Custom Charges ($/Head/Day):                                        $          -
                                                                                $
       16.) Enter a custom charge that is based on pounds of gain (enter $$/pound charged) -
       17.) Death Loss (%):                                                               1.00
       18.) Shrink at Time of Purchase (%):                                               1.00
       19.) Shrink at Time of Sale (%):                                                   3.00
       20.) Sale Commission and Yardage ($/Head):                               $          -
       21.) Miscellaneous Costs ($/Head):                                       $         1.00
       22.) Cash Costs of Hired Labor for This Enterprise ($):                  $          -
       23.) Expected Selling Price ($/CWT):                                     $       100.00
                                             RESULTS
       Computed sale weight (including shrink)                                          821.32
       Interest charge or opportunity cost per head                                      $29.25
       Total cost of gain/head (excl. purchase cost)                                   $136.58
       Total Cost/Head (Including Purchase Cost)                                       $827.38
       Total cost per head per day of wintering                                          $0.76
       Cost per pound of gain (including interest)                                       $0.71

       Breakeven selling price at given purchase price                                       $100.74
       Breakeven purchase price at given selling price                                       $109.04

       Revenue Per Head                                                                      $821.32
       Net return per head using Expected Selling Price                                       ($6.06)
       Total net return                                                                      ($1,211)
             CALF PASTURING COST ANALYSIS
                         Double lined boxes and blue text indicate numbers that are entered.
INPUT DATA (1 throught 22):
1.) Purchase price of stocker cattle ($/cwt):                             $        100.00
2.) Average purchase weight per head (lbs):                                        825.00
3.) Number of head you intend to pasture:                                              200
4.) Monthly pasture charge/head ($):                                                15.00
5.) Number of days on pasture:                                                         150
6.) Expected average daily gain (lbs/head):                                           1.50
7.) Interest rate on borrowed money (%):                                              8.00
    (or opportunity cost of own money)
8.) Tax on livestock ($/head):                                                        3.50
9.) Veterinary and medical expenses ($/head):                                         4.00
10.) Cost of salt and mineral supplements ($/head):                                   2.00
11.) Transportation costs to pasture ($/head):                                        0.00
12.) Transportation costs to market ($/head):                                         4.00
13.) Fencing repair costs for enterprise ($):                                         0.00
14.) Total fuel costs for enterprise ($):                                          400.00                 Straight
      (excluding cattle transportation)                                                                     Line
15.) Capital purchases and improvements:                   Item Name            Cost           Life        Costs
                                                       1) Oilers                   800.00             7    114.29
        For each capital purchase or improvement 2) Water Tank                     600.00             7      85.71
              for this enterprise, enter the cost and 3)                              0.00            0       0.00
                   expected life in years.             4)                             0.00            0       0.00
                                                       5)                             0.00            0       0.00
                                                       6)                             0.00            0       0.00
                                                       7)                             0.00            0       0.00
                                                       8)                             0.00            0       0.00
                                                       9)                             0.00            0       0.00
                                                      10)                             0.00            0       0.00
                                      Total capital costs:                        1400.00                  200.00

16.) Expected death loss (%):                                                        1.00
17.) Expected shrink at time of purchase (%):                                        0.00
18.) Expected shrink at time of sale (%):                                            3.00
19.) Sale commission and yardage ($/head):                                          12.00
20.) Miscellaneous costs ($/head):                                                   0.50
21.) Cash cost of hired labor for enterprise ($):                                    0.00                            PIPH:    825.00
22.) Expected selling price ($/cwt):                                                95.00                            RINTP:     0.08
                                                                                                                     POPH:    967.58   0.28   27.12329   1.430137
              RESULTS
Computed sale weight (including shrink):                                         1018.50
Interest charge or opportunity cost per head:                                     $28.83
Total cost of gain/head (excl. purchase cost):                                   $142.51
Total Cost/Head (Including Purchase Cost):                                       $967.51
Total cost per head per day of pasturing:                                          $0.95
Cost per pound of gain (including interest):                                       $0.74

Breakeven selling price at given purchase price:                                  $94.99
Breakeven purchase price at given selling price:                                 $100.01

Net return per head:                                                                $0.07
Total net return:                                                                  $13.17
If these macros do not work properly the first
time, go to File, then Page Setup and make
sure that you check the Fit to 1 pages wide
and 1 pages tall option.

To test the macro with minimal paper use
select the print stockers only button. It shoul
print only one sheet of paper.
                                  Cost of Production Estimates for Commercial Cow Calf Enterprise
                           Blue text and double lined boxes indicate numbers/text/labels that should be changed to match your situation.

                                                                                                                Calendar Year
                           Production Information
                           Breeding Herd Size Beginning of Breeding Season - Include cows and 1st calf heifers
                           Pregnancy percentage
                           Number Pregnant After Breeding Season in                               = January 1 on hand
                           Number Open, culled and sold before winter feeding period
                           Calving Percentage based January 1 cow numbers
                           Number cows that calved based on January 1 cows in
                           Cull cows sold after calving & before next breeding cycle in
                           Total Cull Cows available for sale after breeding and/or calving
                           Percent calf loss at calving time
                           Number of live calves born in
                           Weaning Percentage based on live calves born
                           Number of Calves Weaned in
                                                                                   Rep. Heifers Needed
                           Replacements Needed (from culled animals plus death loss of 1% beginning herd size)
                           Average Cull Rate based on beginning breeding inventory                               Cull Rate
                           Replacements are Purchased or Raised (P or R)
                           Replacements Heifers kept from calf crop                Rep. Heifers Kept
                           Replacement Breeding Cows or Heifers Purchased and added to breeding herd
                           Average No. Cows per Bull, Adjust for No. animals A.I.
                           Number bulls at beginning of Breeding Season
                           Average Purchase Price of Bulls
                           Value of Avg Cow in Breeding Herd

                                                                                       Net Market        Price
                           Livestock Sales                         Head/Quantity         Weight          $$/Lb
                            Strs to sell @ weaning                      0
                            Hfrs to sell @ weaning                      0



                            Cull Cows (1% death loss)                      0
                            Cull Rep. Heifers                              0
                            Cull Bulls                                     0
                            Other Income (semen, Etc.)


                           Replacement Heifers                                           Quantity   Weight          Per Pound
                           Purchased Replacement Heifers
                           Raised Replacements                                      Non-Cash Adjustments to the "Cash" Value of Production
                           Transferred of Raised Rep. Hef. To Breeding
                           Death Loss of Replacement Heifers




                           Operating Costs for a Cow-calf Enterprise
                                                                                                                                   Value     Cow Owner
Feed Costs (Raised and Purchased)                                        Units           Quantity        Price        Value       Per Head    Share (%)
IF you include a rental
rate for pasture on
owned land here, you
should not include the
value of the land in the
fixed cost section. The
return to land is built in
to the pasture rental
rate ($$ per AUM).
Property Taxes and other
costs associated owning
land should not be listed
below IF a cost is
included here.             Subtotal of Feed Costs
                                                                                                                                             Cow Owner
Operating Costs Directly Associated With Livestock Care and Handling                                                                          Share (%)
                           Vet and Medicine
                           Livestock Hauling (Not Related to Marketing)
                           Professional Fees (Dues, Subscriptions, Legal, etc.)
                           Hired Labor
                           Marketing Costs                                          Price/Unit      No. of Units
                            Sales Commission
                            Hauling to Market
                            Yardage
                           Custom Hire
                           Rent or Lease (Vehicle, Machinery, Equipment)
                           Utilities
                           Supplies



Operating Costs of Facilities and Equip. Used in Lvstk Production.
Note: the costs of        Operating Costs of Equipment (Fuel, Oil, Repairs)
machinery and equipment Operating Costs on Machinery (Fuel, Oil, Repairs)
used to put up hay        Operating Costs of Vehicles (Fuel, Oil, Repairs)
should not be included in Facility Repairs and Maintenance
this section IF there was  Fences
a charge made for raised   Corrals
hay under feed costs       Buildings
above. The charge for      Water Facilities
raised hay in the feed    Hired Labor
costs section includes    Rent or Lease
the cost of machinery and Supplies
equipment to put up       Utilities
the hay.




                    SUBTOTAL OTHER VARIABLE COSTS

Interest on Operating Costs
                           Sum of Operating Costs x Months Borrowed
                           x Interest Rate Per Month
                           Annual Interest Rate (11% = .11) = Nominal Rate
                           Avg. Number of Months Money Borrowed                                                                              Cow Owner
                           Annual Inflation Rate ( 9% = .09)                                                                                  Share (%)
                                Total Interest Cost (Using Nominal Interest Rate)



                           Ownership Costs for a Cow-calf Enterprise
Machinery and Equipment used for Livestock
                                                                        Dollars           Useful        Salvage     Calculated     Value     Cow Owner
             Depreciation Item Name                                    Invested          Life Yrs        Value     Depreciation   Per Head    Share (%)
Include equip. used
exclusively on OR
percent of Equip.
value that is used
partially on livestock

Do not include
hay handling and
harvesting equip.
here. The cost
of hay is
included in feed
costs.                                                  Totals

                           Interest (Opportunity Cost Using Real Rate of Int.)
                           Personal Prop. Taxes on Mach & Equip Used for Lvstk
                           Insurance

Buildings and Improvements Used for Livestock
                                                                        Dollars           Useful        Salvage     Calculated     Value     Cow Owner
                           Item Name                                   Invested          Life Yrs        Value     Depreciation   Per Head    Share (%)
            Depreciation




                                                        Totals

                           Interest (Opportunity Cost Using Real Rate of Int.)
                           Personal Property Taxes and Buildings & Imprv.
                           Insurance

Owned Land Used for Livestock Operations                                                                                                     Cow Owner
                         Parcel Description                   No. Acres              Value/Acre     Total Value                               Share (%)
The land charged to the
cows that are on shares
should include only the
those acres that are
actually utilized by the
share animals.
Acres used by other
animals (the tenant's)
livestock) should not be
included here. Some
type of proration may be                                                             Total
needed in this section.  Interest (Opportunity Cost Using Real Rate of Int.)
                         Real Estate Taxes
                         Insurance -- Include in insurance cost under buildings and improvments

Livestock Breeding Herd
                                                                    Dollars               Useful         Cull       Calculated     Value     Cow Owner
Depreciation--Replacement Allowance                                Invested              Life Yrs        Value     Depreciation   Per Head    Share (%)
                          Bulls
                          Breeding cows
Note: If the cow herd
size remains constant                               Totals
through raising
replacements and normal Interest (Opportunity Cost Using Real Rate of Int.)
culling, then do not      Personal Property Taxes
charge a depreciation
expense for the cow herd.

				
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Description: Free Lease Agreement Template document sample