berry farm business summary 2014 regional workshop dan welch brad rickard percy fang charles h....
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BERRY FARM BUSINESS SUMMARY
2014 REGIONAL WORKSHOP
DAN WELCH
BRAD RICKARD
PERCY FANG
CHARLES H. DYSON SCHOOL OF APPLIED ECONOMICS AND MANAGEMENT
JANUARY 31, 2014
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OTHER STATES
UC Davis and University of California Cooperative of Extension: Sample Costs to Establish and Produce Berries
Penn State: Enterprise Budgets in Mid-Atlantic Berry Guide
North Carolina State: Blackberry Budget Program 2011
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OVERVIEW OF BFBS PROCESS
CCE educators and regional specialists worked with 8 farms to collect the data
6 of the farms were smaller-scale, 2 farms grew berries in addition to tree fruit
Using the Fruit Farm Business Summary as a guide, created data tables of summary information, and specific areas
BFBS gives a whole-farm picture, next step is to develop enterprise budgets for each crop
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• T1 to T4 Balance Sheet Information• T5 to T12 Income Statement Information• T13 to T19 Cash Flow Information• T20 to 23 Efficiency Analysis• T24 to T27 Farm Descriptive Statistics• Next I will show some of the preliminary summarized
information from the current farms in the BFBS• Four considerations:1. There are only data from 8 farms so far2. Two of the 8 farms are much larger than the other 63. Where possible, we make comparisons to FFBS4. Enterprise budgets will tell us more about specific berries
THE 27 TABLES IN THE FFBS/BFBS
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FARM BALANCE SHEET (TABLE 1)Year
Farm Assets End
Current Assets
Farm cash, checking & savings 1,161
Accounts receivable 963
Prdtn, pckng supplies & prepaid exp 2,917
Fruit & other crops in inventory 0
Cash Value Life Insurance on Corp Officrs 7,143
Total current assets $12,184
Intermediate assets
Equipment owned 50,042
Other Stock & Investments 175
Total intermediate assets $50,217
Year
Farm Liabilities End
Current Liabilities
Accounts Payable 0
Operating Line 1 2,333
Current Portion: Int & Long Term Debt 0
Total Current Liabilities $2,333
Intermediate Liabilities
Restructured Operating Debt 0
Equip Loan #1 (JD,CNH, Kubota) 0
Equip Loan #2 0
Capital Line #2 5,333
Total Intermediate Liabilities $5,333
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FARM BALANCE SHEET (TABLE 1)Year
Long term assets End
Land & buildings: 51,333
Owned 0
Structures leased 0
Leasehold Improvements 0
Other: 0
Total long term assets $51,333
Total farm assets
Intermediate assets
Equipment owned 50,042
Other Stock & Investments 175
Total intermediate assets $50,217
Year
Farm Liabilities End
Current Liabilities
Accounts Payable 0
Operating Line 1 2,333
Current Portion: Int & Long Term Debt 0
Total Current Liabilities $2,333
Intermediate Liabilities
Restructured Operating Debt 0
Equip Loan #1 (JD,CNH, Kubota) 0
Equip Loan #2 0
Capital Line #2 5,333
Total Intermediate Liabilities $5,333
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LAND RESOURCES (TABLE 24)
Land Class8 Farm
Average 6 Farm
AverageFFBS
(25 Farms)
Bearing fruit acres 45.60 5.93 200.00
Non-bearing fruits acres 7.80 0.00 30.50
Total fruit acres 53.40 5.93 230.50
Other annual crops 7.76 10.35 0.00
Other perennial crops 1.25 1.67 17.50
Open land 25.19 19.08 10.00
Non-tillable acres 7.25 1.17 88.90
Total acres cropped 62.41 17.95 248.00
Total land operated 94.85 38.20 347.40
Rented land included above 0.00 0.00 72.50
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BERRY CROP PRODUCTION (TABLE 24)No. of farms
Average Acres
Average Production (lbs)
Percent of Total Berries
8 FarmsStrawberries 3 5.57 51,194.00 60.96%Blueberries 8 3.93 17,991.75 21.43%Brambles 3 1.68 11,438.67 13.62%Ribes 2 0.45 235.50 0.28%Other berries 1 1.75 3,114.00 3.71%6 FarmsStrawberries 1 5.50 23,472.00 56.12%Blueberries 6 4.47 9,955.17 23.80%Brambles 1 1.25 5,280.00 12.63%Ribes 1 0.30 0.00 0.00%Other berries 1 1.75 3,114.00 7.45%
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SIZE OF BUSINESS AND YIELDS (TABLE 27)
Size of Business 8 Farms 6 FarmsFFBS
(25 farms)
All fruit acres (including non-bearing) 53.40 5.93 231.00
Bearing Fruit acres 45.60 5.93 200.00
Average berry production (lbs) 41,927.13 15,266.17 144,130 bu
Worker equivalent 8.02 2.12 13.63
Rates of Production (lbs/acre)
Strawberries, pounds per bearing acre 7,441.02 4,267.64
Blueberries, pounds per bearing acre 4,297.21 1,985.05
Brambles, pounds per bearing acre 6,159.56 4,224.00
Ribes, pounds per bearing acre 785.00
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LABOR EFFICIENCY AND COSTS (TABLE 27)
Labor Efficiency 8 Farms 6 FarmsFFBS
(25 farms)
Bearing fruit acres per worker 4.48 3.44 14.71
All fruits acres per worker 4.69 3.44 16.95
Accural Receipts per worker $34,825.58 $17,842.80 $96,969.00
Cost Control-Accrual
Costs per bearing fruit acre
All labor including operator $2,895.16 $2,136.24 $1,812.00
Harvest labor $1,375.03 $740.00
All equipment $1,158.02 $1,081.12 $871.00
Spray $363.64 $204.26 $508.00
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CAPITAL EFFICIENCY AND PROFITS (TABLE 27)
Capital Efficiency 8 Farms 6 FarmsFFBS
(25 farms)Total farm capital per bearing acre $23,149.74 $32,615.17 $10,814.00Total farm capital per fruit acre $22,159.07 $32,615.17 $9,404.00Capital Turnover Ratio (sales/equity) 2.37 3.43 0.61ProfitabilityNet farm income w/o appreciation $210,302.70 $11,677.10 $436,213.00Labor and mgmt income/operator $68,965.54 $2,466.48 $212,333.00Rate of return on: Equity capital with appreciation 12% -15% 23%
All capital with appreciation 7% -15% 18%
Farm net worth $936,829 $318,200 $1,721,188Debt to asset ratio 0.11 0.08 0.26
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FOR MORE INFORMATION, AND TO JOIN THE BFBS, CONTACTEducator Region (home base) ContactSharon Bachman Western NY (Erie
County)[email protected] 716-652-5400 ext 150
Sandy Buxton Eastern/Northern NY (Washington County)
[email protected] 518-746-2560
Ginny Carlberg Western NY (Chautauqua County)
[email protected] 716-664-9502 ext 202
Alison De Marree Lake Ontario Region (Wayne County)
[email protected] 315-573-8881
Stephanie Mehlenbacher
Finger Lakes Region (Steuben County)
[email protected] 607-664-2300
Dan Welch Central NY (Onondaga County)
[email protected] 607-255-7103
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RESEARCH FUNDED BY THE NYFVI PROJECT #AIC 12-001“BUILDING A BETTER BOTTOM LINE FOR
NYS BERRY GROWERS”
Thanks for Listening!
Questions? [email protected] (Dan Welch)
[email protected] (Brad Rickard)