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Ontario Beef Cow Summary 2002

Author: John Molenhuis - Business Analysis and Cost of Production Program Lead/OMAFRA
Creation Date: 25 February 2004
Last Reviewed: 25 February 2004

Table of Contents

  1. 5 year Summary
  2. Farm Income Statement
  3. Farm Balance Sheet
  4. Beef Cow Enterprise Report (per cow basis)
  5. Beef Cow Enterprise Report (per hectolitre basis)
  6. Beef Cow Enterprise Report (per kilogram butterfat basis)
  7. Crop Enterprise Report (per tillable acre basis)
Summary of Ontario Beef Cow Farms
5 Year Summary
 
 1998 1999 2000 2001 2002
Farm Income Statement
Total Cash Revenue
$65,825
$61,330
$85,369
$94,486
$83,123
Total Farm Revenue
68,762
82,066
109,748
108,082
96,679
Total Cash Expenses
$52,920
$58,773
$72,048
$80,276
$69,668
Change in Current Payables
-211
1,240
353
-979
78
Depreciation
10,684
13,652
15,459
14,850
17,348
Total Farm Expenses
63,393
73,665
87,860
96,105
87,009
Net Farm Income
$5,369
$8,401
$21,888
$11,977
$9,670
Farm Balance Sheet (Year End)
Total Assets
$460,146
$471,541
$549,968
$563,318
$524,995
Total Liabilities
45,621
49,977
74,039
78,266
83,388
Equity in Farm Business
$414,525
$421,564
$475,929
$487,052
$491,607
Percent Equity
90.1%
89.4%
86.5%
86.2%
85.5%
Net Capital Purchases (-Sales)
9,522
15,676
22,353
15,672
19,582
Net Withdrawals (-Contributions)
5,403
-13,028
-6,851
-7,118
3,810
Farm Business Analysis Section
Return on Investment
-5.0%
-5.3%
-2.9%
-4.1%
-3.9%
Capital Turnover VFP (years)
7.8
7.1
6.1
7.3
7.3
Cost Control Index
7.8%
10.2%
19.9%
11.1%
10.0%
Current Ratio :1
6.0
5.8
3.7
3.1
3.0
Working Capital
$64,376
$65,803
$75,732
$62,502
$60,217
Debt Servicing Capacity
-$273
$4,382
$9,047
$9,087
$4,300
Term & Operating Interest Paid
$3,079
$2,713
$4,811
$4,733
$4,383
Value of Farm Production Analysis
Cost per Dollar of VFP
$0.73
$0.67
$0.58
$0.66
$0.66
Value of Farm Production
$59,093
$65,992
$89,642
$77,802
$79,176
(Adj Op. Cost - Int.) / VFP
67.6%
62.5%
53.0%
59.4%
60.3%
Depreciation / VFP
18.1%
20.7%
17.2%
19.1%
21.9%
Interest / VFP
5.2%
4.1%
5.4%
6.1%
5.5%
Net Farm Income / VFP
9.1%
12.7%
24.4%
15.4%
12.2%
Crop Enterprise Report
Tillable Acres
355
367
483
446
480
Debt per Tillable Acre
$129
$136
$153
$176
$174
Machinery & Equip Repair / Acre
$5.41
$8.10
$6.84
$8.14
$7.93
Val of Enterprise Production / Acre
$120.70
$119.60
$120.40
$123.23
$117.30
Variable Expenses / Acre
56.40
51.20
43.30
46.97
44.57
Depreciation / Acre
23.60
26.60
24.10
25.75
27.47
Fixed Expenses / Acre
31.00
34.60
33.10
33.69
34.37
Net Enterprise Income / Acre
33.30
33.80
44.00
42.56
38.36
Total Crop Enterprise Income
$11,822
$12,418
$21,234
$18,965
$18,394
Livestock Enterprise Report
Value of Enterprise Prod'n / Cow
$760.19
$862.13
$946.74
$876.25
$799.11
Feed Cost / Cow
589.70
607.45
626.13
677.42
666.53
Variable Expenses / Cow
758.58
882.87
861.44
919.75
905.90
Depreciation / Cow
29.29
44.08
35.62
49.96
50.46
Fixed Expenses / Cow
77.07
97.71
85.54
119.34
111.34
Net Enterprise Income / Cow
-75.46
-118.45
-0.24
-162.84
-218.13
Total Livestock Enterprise Income
-$5,229
-$7,865
-$21
-$12,539
$18,061
Average Number of Cows
69.3
66.4
87.5
77.0
82.8
Total Calves Born
61
64
82
69
78
Calves Born per Cow
0.9
1.0
0.9
0.9
0.9
Avg Cows per Person (Enterprise)
115.5
110.7
125.0
110.0
138.0
Avg Cows Per Person (Farm)
69.3
60.4
67.3
64.2
75.3

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Summary of Ontario Beef Cow Farms
Farm Income Statement
 
Low 27 Farms Avg 81 Farms High 27 Farms
Revenue
Market Livestock
1,952
7,716
18,474
Feeder Livestock
28,301
45,589
76,110
Breeding stock
3,696
5,869
13,295
Cull stock
4,742
6,236
9,094
Other livestock
1,076
3,038
246
Crop sales
6,990
5,618
2,320
Custom work
984
2,780
6,855
Other Sales
3,488
6,277
11,639
Total Cash Revenue
$51,229
$83,123
$138,033
Change in Accounts Receivable
-509
-539
-980
Changes in Inventory
4,292
14,095
24,288
Total Farm Revenue
$55,012
$96,679
$161,341
Expenses    
 Low 27 Farms Avg 81 Farms High 27 Farms
Variable Expenses
Livestock - Purchased Livestock
9,648
11,065
18,570
Pur. Feed - Conc., Grain & Forage
5,309
6,438
8,859
Animal Health & Breeding
2,182
2,475
3,747
Other (lvsk Stabztn, Barn Sppls)
315
2,538
600
Crop Inputs - Seeds & Plants
1,630
1,286
1,160
Fertilizer & Lime
3,293
3,722
5,272
Pesticides & Other Chemicals
239
309
265
Containers and Twine
1,140
980
1,103
Other (Stabztn, Insurance Etc.)
360
340
433
Marketing & Tansportation Costs
1,656
2,304
3,532
Custom Work, Equipment Rent
3,684
3,473
4,410
Hired Labour
3,099
3,235
5,250
Machinery & Equipment - Fuel & Oil
5,228
4,990
5,432
Machinery & Equipment - Repairs
6,975
6,201
5,806
Motor Vehicle Expenses
2,123
1,837
2,001
Building, Fence Repairs
2,705
2,595
1,909
Heating Fuel
188
316
220
Electricity & Telephone
3,014
2,554
2,370
Accounting, Office Expenses
1,476
1,442
1,611
Interest (Operating)
1,103
1,301
1,942
Other Cash Operating Expenses
1,819
1,853
2,743
Change in Payables
511
78
29
Total Variable Expenses
$57,697
$61,332
$77,264
Contribution Margin
-$2,685
$35,347
$84,077
Fixed Expenses
Property Taxes, Fire & Liab. Ins.
4,142
3,771
4,187
Lease & Rent Payments
404
1,561
3,350
Interest (Term)
4,575
3,082
2,575
Change in Interest Arrears
0
0
0
Depreciation
19,288
17,348
18,719
Total Fixed Expenses
28,409
25,762
28,831
Total Expenses
86,106
87,094
106,095
-Less Personal Share of Expenses
0
-85
0
Total Farm Expenses
$86,106
$87,009
$106,095
Net Farm Income
-$31,094
$9,670
$55,246

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Summary of Ontario Beef Cow Farms
Farm Balance Sheet
(Assets at Estimated Value)
Farm Assets Low 27 Farms Avg 81 Farms High 27 Farms
Current Assets:
Cash (On hand and in bank)
2,802
10,515
18,592
Accounts Receivable
858
1,797
2,891
Market & Feeder Livestock
31,050
47,752
77,116
Home-Grown Crops
19,600
27,957
40,384
Purchased Feed & Supplies
858
1,652
2,974
Other Current Assets
0
0
0
Total Current Assets
$55,168
$89,673
$141,957
Long Term Assets
Breeding Livestock
79,733
105,422
156,143
Market Quota
0
0
0
Field Machinery
143,258
123,798
141,754
Barn Equipment
8,371
10,023
11,335
Farm Buildings
82,506
79,307
68,208
Land
127,464
137,364
160,237
Other Long Term Assets
32,455
29,408
25,209
Total Long Term Assets
$473,787
$485,322
$562,886
Total Farm Assets
$528,955
$574,995
$704,843
Liabilities
Accounts Payable
1,440
1,231
878
Interest Arrears
0
0
0
Operating Credit
25,270
18,803
20,587
Current Portion of Term Debt
10,057
9,422
10,756
Total Current Liabilities
$36,767
$29,456
$32,221
Term Debt
65,753
53,932
66,598
Total Farm Liablilities
$102,520
$83,388
$98,819
Equity in Farm Business
$426,435
$491,607
$606,024
Measures of Financial Strength
(from the balance sheet at year end)
Percent equity
80.62%
85.50%
85.98%
Working Capital
$18,401
$60,217
$109,736
Current Ratio xx:1
1.50
3.04
4.41
Debt Structure
35.86%
35.32%
32.61%
Debt to Asset Ratio
0.19
0.15
0.14
Debt to Equity Ratio
0.24
0.17
0.16
 

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Summary of Ontario Beef Cow Farms
Farm Business Analysis Section
  Low 27 Farms Avg 81 Farms High 27 Farms
Measures of Performance Efficiency
Capital Turnover (years)
13.21
7.26
5.26
Value of Farm Production
$40,055
$79,176
$133,912
Cost per dollar of VFP
$1.29
$0.66
$0.45
Cost Control Index
-56.5%
10.0%
34.2%
Expenses & NFI Relative to VFP
(Adj. Prod. Cst. - Int) / VFP
115.3%
60.3%
41.4%
Depreciation / VFP
48.2%
21.9%
14.0%
Interest / VFP
14.2%
5.5%
3.4%
Net Income / VFP
-77.6%
12.2%
41.3%
Interest & Principal / VFP
46.5%
19.7%
13.1%
Measures of Profitability
Net Farm Income
-$31,094
$9,670
$55,246
Return on Total Assets
-4.80%
2.44%
8.48%
Return to Equity
-7.29%
1.97%
9.12%
Return on Investment (at $36,000 per person)
-11.71%
-3.88%
2.58%
Return to Owners Labour
(at 5.0% investment rate)
-$51,864
-$14,697
$24,521
Farm Labour (Person Eq.)
1.1
1.1
1.3
Debt Servicing Capacity Analysis
Cash Revenue minus Cash Expenses
-$15,078
$13,455
$50,686
plus Interest Payment
5,678
4,383
4,517
plus Non-Farm Revenue
34,823
17,347
4,724
minus Owners Withdrawals & Income Tax
-2,234
-13,537
-32,216
Cash Avail. for Debt. Serv. and Cap. Purch.
$23,189
$21,648
$27,711
minus committed Interest & Principal *
-15,087
-13,532
-14,681
minus Reserve for Capital Purchases (Depreciation)
-19,288
-17,348
-18,719
Available After Reserve to Service Additional Debt
-$11,186
-$9,232
-$5,689
 
Physical Summary for the Beef Cow Enterprise
  Low 27 Farms Avg 81 Farms High 27 Farms
Average Number of Cows
61.5
82.8
125.0
Calves Born
58.0
78.0
116.0
Calves Died
2.0
4.0
5.0
Calves Weaned
55.5
74.6
113.3
Calves Born per Cow
0.9
0.9
0.9
Calves Weaned per Cow
0.9
0.9
0.9
Average Cows Per Person (Enterprise)
102.5
138.0
178.6
Average Cows Per Person (Whole Farm)
55.9
75.3
96.2

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Summary of Ontario Beef Cow Farms
Beef Enterprise Report
(per cow basis)
Revenue Low 27 Farms Avg 81 Farms High 27 Farms
Market Livestock
$31.74
$88.79
$147.79
Feeder Livestock
460.18
550.59
608.88
Breeding Livestock
60.10
70.88
106.36
Cull Stock
77.11
75.31
72.75
Livestock Stabilization
0.00
0.00
0.00
Other Livestock Enterprise Sales
2.57
3.12
0.32
- Livestock Purchased
-156.88
-133.04
-148.56
+ Inventory Change
124.96
149.96
135.10
+ Change in Receivables
-8.28
-6.51
-7.84
Enterprise Production
$591.50
$799.11
$914.81
Variable Expenses

Livestock Expenses:

Purchased feed & grain
64.02
55.27
49.10
Purchased forages
22.31
19.57
21.77
Home-grown grains transferred
24.31
17.74
18.29
Home-grown forages transferred
608.27
573.96
568.21
Total Feed Cost
$718.90
$666.53
$657.38
Animal Health & Breeding
35.48
29.89
29.98
Other (Stabilization, Supplies)
5.12
4.98
4.80
Marketing, Transportation
23.32
21.22
23.24
Custom Work, Equipment Rent
21.27
14.40
12.65
Hired Labour
20.39
16.57
19.05
Machinery & Equip - Fuel & Oil
29.77
20.63
15.26
Machinery & Equipment - Repair
44.98
28.97
18.29
Motor Vehicle Expenses
25.19
15.23
11.44
Building, Fence Repairs
37.35
26.59
13.10
Heating Fuel
2.36
1.63
1.32
Electricity & Telephone
37.50
21.99
13.98
Accounting, Office Expenses
15.64
11.07
8.18
Interest - Operating
10.44
9.19
9.14
Other Cash Variable Expenses
21.58
16.06
16.22
Change in Payables
8.31
0.94
0.23
Total Variable Expenses
$1,057.59
$905.90
$854.26
Contribution Margin
-$466.09
-$106.79
$60.54
Fixed Expenses

Property Taxes, Fire & Liab. Ins.
37.01
24.78
18.33
Lease & Rent Payments
4.00
9.47
13.35
Interest - Term
55.32
26.63
14.32
Depreciation
67.27
50.46
30.90
Total Fixed Expenses
163.59
111.34
76.90
Total Enterprise Expenses
$1,221.18
$1,017.24
$931.16
Net Enterprise Income
-$629.68
-$218.13
-$16.35

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Summary of Ontario Beef Cow Farms
Crop Enterprise Report
(per tillable acre basis)
Revenue Low 27 Farms Avg 81 Farms High 27 Farms
Wheat
$0.44
$0.49
$0.11
Spring Grains
5.95
3.97
0.41
Grain Corn
0.01
0.15
0.00
Soybeans
0.00
0.07
0.00
Forage
6.15
2.93
1.27
Fruits
0.00
0.00
0.00
Vegetables
0.00
0.77
0.00
Homegrown Seed
0.03
0.02
0.00
Other Crop Sales & Custom Work
1.31
1.39
0.39
Crop Insurance
2.29
1.44
1.57
Crop Stabilization
0.20
0.48
0.08
Value grains fed to livestock
3.50
3.19
3.76
Value forages fed to livestock
88.45
99.90
117.09
+ Inventory change
-7.83
2.49
9.73
+ Change in receivables
0.00
0.00
0.00
Value of Enterprise Production
$100.51
$117.30
$134.41
Expenses
Variable Expenses
Seed & Plants
3.82
2.68
1.91
Fertilizer & Lime
7.72
7.76
8.68
Pesticides & Other Chemicals
0.56
0.64
0.44
Containers and Twine
2.67
2.04
1.82
Other (Stabztn, Insurance, Etc.)
0.84
0.71
0.71
Marketing & Transportation
0.52
0.75
1.03
Custom Work, Equipment Rent
5.57
4.68
4.66
Hired Labour
4.32
3.89
4.72
Machinery & Equip - Fuel & Oil
7.96
6.84
5.80
Machinery & Equip - Repair
9.86
7.93
5.79
Motor Vehicle Expenses
1.11
0.95
0.94
Building, Fence Repairs
0.96
0.80
0.45
Heating Fuel
0.10
0.36
0.09
Electricity & Telephone
1.58
1.36
1.03
Accounting, Office Expenses
1.19
1.07
0.97
Interest (Operating)
1.08
1.12
1.32
Other Variable Cash Expenses
0.95
0.99
1.18
Change in Payables
0.00
0.00
0.00
Total Variable Expenses
$50.80
$44.57
$41.52
Contribution Margin
$49.71
$72.73
$92.89
Fixed Expenses
Property Taxes, Fire & Liab. Ins
4.21
3.50
3.12
Lease & Rent Payments
0.37
1.62
2.77
Interest (Term)
2.62
1.78
1.29
Depreciation
35.50
27.47
24.45
Total Fixed Expenses
$42.70
$34.37
$31.63
Total Expenses
$93.50
$78.94
$73.14
Net Enterprise Income
$7.01
$38.36
$61.27

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Summary of Ontario Beef Cow Farms
Crops Grown and Fed Report
(crop acres and yields)
Crop Low 27 Farms Avg 81 Farms High 27 Farms
Acres Grown Total Yield Yield per Acre Acres Grown Total Yield Yield per Acre Acres Grown Total Yield Yield per Acre
Wheat
0.9
1.0
1.1
1.2
1.3
1.1
0.0
0.0
0.0
Spring Grains
23.3
13.6
0.9
22.7
14.7
0.9
21.6
13.1
0.9
Grain Corn
0.2
0.5
2.7
0.7
0.2
2.7
0.0
0.0
2.7
Soybeans
1.3
0.0
0.0
0.8
0.1
0.1
0.0
0.0
0.0
Straw
xxx.x
9.8
 
xxx.x
8.1
 
xxx.x
5.2
 
Other Crop
8.0
5.8
0.7
3.6
2.3
0.6
0.0
0.0
0.0
Other Crop
8.8
14.7
1.7
7.0
11.8
1.7
2.2
16.3
7.4
Corn Silage
0.9
16.0
5.4
0.8
16.0
5.4
1.5
33.0
5.4
Hay
256.7
358.1
1.4
261.2
452.4
1.4
297.6
631.0
1.4
Haylage
xxx.x
111.5
  
xxx.x
108.1
  
xxx.x
121.9
 
Tillable pasture
126.6
 
 
181.5
 
  
284.8
     
     
Rough pasture
123.0
 
 
205.7
 
 
363.3
   
   
Non Crop Land
146.1
 
 
251.2
 
 
323.0
 
  
Total Acres
695.8
 
 
936.4
 
 
1,294.0
 
  
Tillable Acres reported
426.8
  
 
479.5
 
  
607.7
  
  
Calculated Tillable Acres
426.7
 
 
479.5
 
 
607.7
  
  
Total Feed Fed and Feed Allocated to the Livestock Enterprise
 
Total Fed
Feed Cost
Feed Cost Per Cow
Total Fed
Feed Cost
Feed Cost Per Cow
Total Fed
Feed Cost
Feed Cost Per Cow
Wheat
0
0
0
0
16
0
0
0
0
Spring grains
11
1,338
22
11
1,338
16
17
2,150
17
Grain corn
0
0
0
0
0
0
0
0
0
Soybeans
0
0
0
0
0
0
0
0
0
Straw
5
364
6
5
378
5
6
399
3
Other Crop
2
158
3
1
116
1
1
137
1
Other Crop
12
714
12
8
474
6
8
504
4
Corn silage
9
297
5
8
264
3
14
462
4
Hay
352
21,144
344
428
25,692
310
602
36,096
289
Haylage
114
5,108
83
112
5,054
61
166
7,461
60
Tillable pasture
119
7,152
116
179
10,722
129
284
17,022
136
Rough pasture
105
2,630
43
198
4,940
60
363
9,083
73
Total
 
38,904
633
 
48,993
592
 
73,313
587
 
Crop and Livestock Enterprise Investment
Crop Low 27 Farms Avg 81 Farms High 27 Farms
Crops per Acre Lvsk per Cow Crops per Acre Lvsk per Cow Crops per Acre Lvsk per Cow
Home Grown Crops & Supplies
46
0
58
0
66
0
Feeder & Market Livestock
 
505
 
577
 
617
Breeding Stock
 
1,296
 
1,273
 
1,249
Market Quota
0
0
0
0
0
0
Machinery & Equipment
336
136
258
121
233
91
Land & Farm Buildings
337
1,073
320
766
286
437
Enterprise Assets/Unit
719
3,025
636
2,761
587
2,420
Total Enterprise Assets
306,823
186,016
305,135
228,595
356,481
302,515
Debt per Acre & per Cow
240
1,667
174
1,007
163
791

 

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