Great Lakes Dairy Sheep Symposium - the Department of Animal ...

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Several items were particularly striking. Accounts receivable ranged as high as $45,756. One farm, the yogurt producer, did not have any milk at the end of the year and thus did not have any inventory or accounts receivable. Processing supplies ranged from $0 to $77,000. Processing land and buildings averaged only $25,000 as compared to farm assets of $162,000, indicating the lower investment in fixed structures needed for processing. Processing equipment ran from $3500 to $38,000. Debt was more variable than assets for this study. Three farms did not have any debt, making financial decisions a bit less risky than for the farm with debt. Farms averaged a total of $108,000 debt that was split closely in relation to the investment in processing and farm assets. More striking was the range of debt, with 2 farms with more than $300,000 in debt. The debt/asset ratio provided a size neutral assessment of debt for the farms in the study. Generally lenders consider a D/A ratio greater than 0.5 as high and 0.7 as dangerous. The farms averaged a 30% D/A ratio, ranging from 0 to 0.67. What is more striking is the D/A ratio of the processing sector. This ranged from 0 to 3.43, meaning a debt at 3.43 times the value of the assets. How does this happen? You have to consider the type of asset. For the farm assets, land does not depreciate and usually escalates in value, providing equity and collateral for the owner. Also, farm equipment and animals usually maintain reasonable market value. Processing assets, however, are expensive, new, and drop in value quickly. Depreciation is especially high for installation costs, which cannot be sold. Thus, for some farms, the value of equipment and accessories can be discounted significantly while any debt related to the items only goes down as fast as the payment schedule. On the other extreme, some farmers who are small operators have done an excellent job finding low value and used equipment that limits their depreciation and also their debt levels. Income Statement The accrual adjusted income from the 10 farms would not induce one to head out right away and jump into the processing business. Four of the 10 farms ended with negative net business income (Table 5). How does this happen? A lot of farms do not calculate income according to accounting standards. For this study, we first examined farm and processing income separately, then together, and then charging for depreciation. In addition, milk was sold at a going wholesale price from the farm to the processing sector. On average, farming operations broke even, with expenses equaling costs. On the processing side, the average farm made just under $20,000 after paying for expenses. It shows that the demands of the processing sector required much more time and emphasis that generally did not permit operating the farm to maximum production. In most cases, farming was done as a method to supply their own milk. What may be interesting is that a number of the farms would be better off buying their milk from a farm that concentrated on producing milk and did not concentrate on processing. But then, a sales point for most farms is that they produce and process their own milk. 34
Table 5. Income Statement Income Average Minimum Maximum Raw milk sales 4,732 0 40,811 Transfer Value to Processing 27,126 1,281 116,738 Livestock Sales 3,468 0 16,257 Crop Sales 591 0 5,831 Government and Other Farm Receipts 2,371 0 8,534 Total Farm Receipts $38,288 $10,502 $176,675 Dairy Product Sales 82,260 4,497 244,483 Other Processing Receipts 1,494 0 13,944 Total Processing Receipts $83,755 $4,497 $258,427 Total Farm and Processing Receipts $122,043 $17,327 $409,627 Expenses Farm Hired Labor 8,583 0 40,012 Purchased Feed 11,243 2,854 33,467 Farm Machinery & Equipment 2,963 0 13,871 Livestock Supplies 6,305 916 38,471 Crop Supplies 998 0 6,964 Farm Real Estate and Building Repairs 2,477 870 4,862 Farm Utilities 1,596 214 5,973 Farm Interest 2,625 0 9,208 Farm Miscellaneous 2,173 0 8,978 Total Farm Operating Expenses $38,963 $12,988 $161,806 Processing Hired Labor 9,064 0 62,082 Processing Materials and Supplies 15,592 1,344 77,641 Processing Machinery and Equipment Repairs 1,039 0 7,006 Processing Real Estate and Building Repairs 418 0 1,000 Processing Utilities 2,789 250 6,224 Processing Interest 862 0 3,029 Marketing Expenses 4,899 0 18,501 Processing Miscellaneous Expenses 2,350 283 7,765 Transfer Value to Processing 27,126 1,281 116,738 Total Processing Operating Expenses $64,137 $9,471 $228,873 Total Farm & Processing Operating Expenses $103,100 $22,459 $349,197 Farm Depreciation Expense 12,280 464 57,029 Processing Depreciation Expense 4,650 867 14,257 Total Depreciation Expense $16,930 $1,921 $71,286 Farm Net Income -13,109 -42,160 -2,116 Processing Net Income 14,968 -5,841 35,689 Net Accrual Farm and Processing Income $1,860 -$23,448 $31,850 35
Page 1 and 2: Proceedings of the 11 th Annual GRE
Page 3 and 4: Table of Contents Program of Events
Page 5 and 6: Program of Events Thursday, Novembe
Page 7 and 8: Speakers at the symposium site in B
Page 9 and 10: Gold: Sponsors Babcock Institute fo
Page 11 and 12: “YOU WANT TO MILK WHAT?” IMPORT
Page 13 and 14: already have their milking faciliti
Page 15 and 16: efficient or just selling milk (or
Page 17 and 18: production doubles. However, there
Page 19 and 20: Total production (pounds) Percentag
Page 21 and 22: Milk production (pounds) Average mi
Page 23 and 24: Percentage of ewes in each system 1
Page 25 and 26: 5. Ice Cream and Butter: • raw mi
Page 27 and 28: 3. Fresh Cheeses made from pasteuri
Page 29 and 30: The Vermont Cheese Council (www.vtc
Page 31 and 32: 1 x Brine Tank (10’ long x 3 ft.
Page 33 and 34: LAMB REARING STRATEGIES: FARMER PAN
Page 35 and 36: BONNIEVIEW FARM’S LAMB REARING ST
Page 37 and 38: REARING LAMBS AT 3-CORNER FIELD FAR
Page 39 and 40: PROFITABILITY OF SMALL RUMINANT FAR
Page 41 and 42: Table I. General Farm Description L
Page 43: Table 4. Business Balance Sheet Ass
Page 47 and 48: Lifestyle is a definite reason for
Page 49 and 50: Grossman et al., 1999). Animals wit
Page 51 and 52: Physiological Factors Affecting Lac
Page 53 and 54: Recently, it has been hypothesized
Page 55 and 56: (co)variate in the genetic model us
Page 57 and 58: show that milk production increases
Page 59 and 60: Figure 6 - Lactation curves of ewes
Page 61 and 62: milk yield (g/d) 3000 2500 2000 150
Page 63 and 64: a genetic potential to produce more
Page 65 and 66: when compared with the control grou
Page 67 and 68: probability (%) 70 60 50 40 30 20 1
Page 69 and 70: considered “healthy” if every S
Page 71 and 72: Finally, udder health has to be con
Page 73 and 74: De Maria Ghionna C., Dell’Aquila.
Page 75 and 76: Manalu, W., Sumaryadi, M.Y., Sudjat
Page 77 and 78: Rupp R., Boichard D., Barbat A., As
Page 79 and 80: Introduction MILK FAT SYNTHESIS AND
Page 81 and 82: The variety of fatty acids allows t
Page 83 and 84: Germany); we have shown previously
Page 85 and 86: Manipulating Milk Fatty Acid Compos
Page 87 and 88: increase in rumen output of vacceni
Page 89 and 90: Luna et al., 2005; Nudda et al., 20
Page 91 and 92: Cabiddu, A., M. Decandia, M. Addis,
Page 93 and 94: MANAGING YOUR OWN RETAIL SHOP: MARK
Page 95 and 96:
The Reality our feta demonstrates t
Page 97 and 98:
Meat and meat dishes: 1. Legs: whol
Page 99 and 100:
5. We have daily visits from chefs
Page 101 and 102:
HOW TO GRAZE DAIRY SHEEP AND SUPPLE
Page 103 and 104:
significantly increase milk product
Page 105 and 106:
All parameters are significantly di
Page 107 and 108:
Table 6 - Dry matter intake and mil
Page 109 and 110:
animals can reduce intake, as they
Page 111 and 112:
Milk fat and protein concentrations
Page 113 and 114:
fat concentration can be used as a
Page 115 and 116:
(1998), working with adult Sarda ew
Page 117 and 118:
equirements. The relationship found
Page 119 and 120:
that there have not been enough stu
Page 121 and 122:
Grazing methods Grazing methods are
Page 123 and 124:
How should the number of paddocks b
Page 125 and 126:
Table 16 - Description of four past
Page 127 and 128:
a) concentrates supplied during mil
Page 129 and 130:
References Arnold G.W., and Dudzins
Page 131 and 132:
supplemented with corn grain. Optio
Page 133 and 134:
succeeding add on pastures smaller
Page 135 and 136:
diverse forage have much to do with
Page 137 and 138:
dairy farming. In fact, Vermont agr
Page 139 and 140:
thermized (holding at a temperature
Page 141 and 142:
speaking, the risks associated with
Page 143 and 144:
FARMER PANEL ON LABOR HOW TO ATTRAC
Page 145 and 146:
• Animal Health Products • Spec
Page 147 and 148:
Cultivating Healthy Communities UVM
Page 149 and 150:
139
Page 151 and 152:
Hudson Valley Camemberts Pure Sheep
Page 153 and 154:
Premier Dairy Service, LLC Argyle,
Page 155 and 156:
www.vermontagriculture.com 145
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