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Ontario Dairy Summary 2004

Author: John Molenhuis - Business Analysis and Cost of Production Program Lead/OMAFRA
Creation Date: 31 January 2006
Last Reviewed: 31 January 2006

Table of Contents

  1. Introduction
  2. General Layout of the Dairy Report
  3. Formulas Used to Calculate Resource Performance
  4. Assumptions and Definitions
  5. Summary of Ontario Dairy Farms - 5 Year Summary
  6. Summary of Ontario Dairy Farms - Farm Income Statement
  7. Summary of Ontario Dairy Farms - Farm Balance Sheet
  8. Summary of Ontario Dairy Farms - Farm Business Analysis Section
  9. Summary of Ontario Dairy Farms - Dairy Enterprise Report (per cow basis)
  10. Summary of Ontario Dairy Farms - Dairy Enterprise Report (per hectolitre basis)
  11. Summary of Ontario Dairy Farms - Dairy Enterprise Report (per kilogram butterfat basis)
  12. Summary of Ontario Dairy Farms - Crop Enterprise Report (per tillage acre basis)

Introduction

Purpose of the Program

The Ontario Farm Management Analysis Program (OFMAP) is a co-operative effort of farmers and staff of the Ontario Ministry of Agriculture and Food. Also the Ontario Dairy Farm Accounting Project administered by Dairy Farmers of Ontario contributed 84 dairy farms to the Provincial Dairy average.

The primary purpose of the Project is to provide management information to farmers. With financial and production reports, the farmer is better able to:

  • identify profitability, strengths and weaknesses, and efficiency of the farm business.
  • compare with budgeted plans for this year and with previous years results.
  • analyze trends over a period of years.
  • compare the farm business to group averages of similar farms.

The secondary purpose of the Program is to obtain, store and utilize data for the preparation of group reports on a county, regional or provincial basis.

Purpose of this Report

The purpose of this report is to present financial and physical information for dairy farms in Ontario. Farmers can compare the results of their business records with group averages. It should be noted, however, that averages presented in this report do not necessarily represent ideal levels of performance. They should be used to provide an indication of the performance of similar business operations. This comparison by operators of individual farm performance to group performance may suggest ways of increasing the profitability of their farms. Farmers who have participated in OFMAP will most easily be able to compare their costs and returns on a unit basis eg. hectolitre of milk, per cow.

The information is also used by many to budget changes in size of an enterprise or to add a new enterprise. This will help with the preparation of a business plan and a credit application.

Anyone wishing to participate in OFMAP is encouraged to contact the Ontario Ministry of Agriculture Food and Rural Affairs at 1-877-424-1300 or ag.info.omafra@ontario.ca

Basis of Clarification

Farms were selected based on the size of the enterprise and the detail of information recorded in their records. The minimum size to be included in this report for each enterprise is shown below:

Dairy - Farms with more than 25 cows

* Note Regarding the Summaries
Data from individual farms are checked for accuracy. Farms are included in the averages if they meet the selection criteria. Because the records are provided by interested producers, a random sampling procedure has not been used.

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General Layout of the Dairy Report

  1. The section cover with graphical highlights of the trend reports.
  2. The inside cover with the five-year trend report in a graphical and a tabular format.
  3. The Farm Income Statement.
  4. The Farm Balance Sheet and Measurements of Financial Strength.
  5. The Farm Business Analysis Section including measure of performance, efficiency, cost control, profitability, debt servicing capacity and the main enterprise summary.
  6. The Livestock Enterprise Reports with unit and general analysis.
  7. Crop Enterprise Reports.
  8. Crop Average and Yields, Feed Costs, Investment Summary.

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Formulas Used to Calculate Resource Performance

  1. Net Farm Income = Total Farm Revenue-Total Farm Expenses. It is the Return to Unpaid Family Labour, Operators Labour and Management, and Equity Capital Invested.

  2. Owner's Equity = Total Farm Assets - Total Liabilities

  3. % equity = (Equity ÷ Total Farm Assets) x 100

  4. Return on Owner's Equity and Unpaid Labour = (Net Farm Income ÷ Owner's Equity) x 100

  5. Return on Owner's Assets and Unpaid Labour = ((Net Farm Income + Interest Paid) ÷ Total Farm Assets) x 100

  6. Return on Investment ($36,000/Person) = ((Net Farm Income + Int Pd + Wages & Salaries - ($36,000 x Person Equiv)) ÷ Total Farm Assets) x 100

  7. Return to Owner's Labour (5% Investment Rate) = Net Farm Income + Interest Paid - (.05 x Total Farm Assets)

  8. Value of Farm Production = Total Farm Revenue - (Lvstk + Feed Purchased)

  9. Cost/$1.00 (VFP) = (Total Expenses - Depreciation - Feed Purchased - Livestock Purchased) ÷ Value of Farm Production

  10. Capital Turnover (VFP) = (Total Farm Assets ÷ Value of Farm Production) = Years

  11. Cost Control = (Net Farm Income ÷ Total Farm Revenue) x 100

  12. Working Capital = Current Assets - Current Liabilities

  13. Current Ratio = (Current Assets ÷ Currernt Liabilities) : 1

  14. Debt Structure = (Current Liabilities ÷ Total Liabilities) x 100

  15. Debt to Asset Ratio = (Total Liabilities ÷ Total Farm Assets) : 1

  16. Debt to Equity Ration = (Total Liabilities ÷ Owners Equity) : 1

Notes:

  1. Additional information on the various performance criteria present may be found in the OMAFRA publication #379 - "Money Matters".

  2. Re Formula 4 and 5:
    Imputed value for operator person equivalents was not deducted. Hence, these formulas reflect a return to labour and/or investment, whereas in formula 6 an allowance for labour was made.

  3. Re Formula 6: Return on Investment
    The portion of this formula that reads "Wages and Salaries minus ($36,000 x Person Equivalents)" is used to allow both sole proprietorships (where usually no operator wages are paid) and corporations (where operator labour may be included as wages paid) to be included. The $36,000 is simply a standard figure. Other amounts could be substituted by the reader as desired.

  4. Re Formula 7: Labour Income
    In calculating labour income, a figure of 5% return on total assets was used which permits year-to-year comparisons of management information.

  5. Debt Servicing Capacity
    The calculation of the average amount available for debt servicing is provided for each commodity group. (Debt Servicing Capacity is more fully explained in "Money Matters".) In this calculation depreciation was used as a proxy for "Reserve for Asset Acquisition".

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Assumptions and Definitions

Farm Selection

The low one third and the average and the high one-third of farms were selected on the basis of net farm income.

Calculation of Management Factors

Person Equivalents = an approximation of the number of full-time people actively participating in the operation of the farm.

Inventory Valuation and Transfer Value of Home-Grown Feed

The unit values shown below are suggested values for calculating beginning and ending inventories. Transfer values were used for estimating costs for home-grown feed.

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Suggested Feed Inventory and Transfer Values 2004

Crop Beginning $ per tonne $ per bushel Transfer $ per tonne $ per bushel Ending $ per tonne $ per bushel
Oats
140
2.16
140
2.16
140
2.16
Barley
140
3.05
125
2.72
110
2.39
Soybeans
365
9.94
297
8.08
229
6.24
Shelled Corn
130
3.30
111
2.82
92
2.33
Mixed Grains
115
2.09
113
2.05
110
2.00
Feed Wheat
155
4.23
148
4.03
140
3.81
Hay
95
 
98
 
100
 
Straw
70
  
75
  
80
 
Corn Silage
30
  
28
  
25
 
Haylage
45
 
48
 
50
 
Grainlage
30
 
28
 
25
 
Pasture
 
  
60
 
 
 
Rough Pasture
 
 

25
 
 
 

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Summary of Ontario Dairy Farms - 5 Year Summary

Farm Income Statement
  2000 2001 2002 2003 2004
Total Cash Revenue $312,653 $324,366 $326,509 $367,149 $367,301
Total Farm Revenue 324,346 334,669 342,501 375,683 373,184
Total Cash Expenses $214,879 $224,495 $236,647 $262,655 $271,253
Change in Current Payables 513 -382 1,704 -60 -7,546
Depreciation 30,969 34,325 35,449 38,634 38,804
Total Farm Expenses 246,354 258,013 273,423 300,212 302,781
Net Farm Income $77,992 $76,656 $69,078 $75,471 $70,403

Farm Balance Sheet (Year End)
  2000 2001 2002 2003 2004
Total Assets $2,031,925 $1,933,641 $2,178,378 $2,583,313 $2,659,794
Total Liabilities 389,181 371,366 380,165 522,722 437,419
Equity in Farm Business $1,642,744 $1,562,275 $1,798,213 $2,060,591 $2,222,375
Percent Equity 80.8% 80.8% 82.6% 79.8% 83.6%
Net Capital Purchases (-Sales) 88,710 90,362 80,426 104,704 93,177
Net Withdrawals (-Contributions) 38,329 42,130 43,179 38,529 41,566

Farm Business Analysis Section
  2000 2001 2002 2003 2004
Return on Investment 2.4% 2.7% 2.1% 2.2% 1.8%
Capital Turnover VFP (years) 7.3 6.8 7.5 8.1 8.3
Cost Control Index 24.0% 22.9% 20.2% 20.1% 18.9%
Current Ration :1 0.7 0.7 0.6 1.0 1.1
Working Capital -$34,645 -$27,720 -$63,588 -$1,801 $7,041
Debt Servicing Capacity $53,491 $50,016 $36,963 $58,887 $48,543
Term & Operating Interest Paid $25,804 $26,673 $25,687 $31,556 $28,798

Value of Farm Production Analysis
  2000 2001 2002 2003 2004
Cost per Dollar of VFP $0.61 $0.61 $0.64 $0.64 $0.66
Value of Farm Production $278,690 $285,608 $292,121 $319,284 $320,524
(Adj Op. Cost - Int.) / VFP 51.6% 51.8% 55.4% 54.4% 56.9%
Depreciation / VFP 11.1% 12.0% 12.1% 12.1% 12.1%
Interest / VFP 9.3% 9.3% 8.8% 9.9% 9.0%
Net Farm Income / VFP 28.0% 26.8% 23.6% 23.6% 22.0%

Crop Enterprise Report
  2000 2001 2002 2003 2004
Tillable Acres
280
316
316
341
 348
Debt per Tillable Acre
$1,390
$1,176
$1,199
$1,532
 $1,258
Machinery & Equip Repair / Acre
$38.53
$33.93
$34.02
$34.66
 $35.05
Val of Enterprise Production / Acre
$265.60
$240.66
$271.72
$269.48
 $253.65
Variable Expenses / Acre
174.50
178.10
190.31
200.82
 209.82
Depreciation / Acre
65.70
66.87
68.36
68.73
 68.57
Fixed Expenses / Acre
100.00
113.63
117.02
124.64
 119.51
Net Enterprise Income / Acre
-8.90
-51.07
-35.62
-55.97
 -74.94
Total Crop Enterprise Income
-$2,491
-$16,138
-$11,267
 -$19,114
-$26,064

Livestock Enterprise Report
  2000 2001 2002 2003 2004
Value of Enterprise Prod'n / hL $65.04 $68.21 $66.02 $67.16 $66.74
Feed Cost / hL 20.94 22.10 23.69 23.35 23.22
Variable Expenses / hL 38.96 40.83 43.44 42.00 42.04
Depreciation / hL 2.76 2.99 3.06 3.02 2.94
Fixed Expenses 8.05 7.55 7.55 7.57 7.37
Net Enterprise Income / hL 18.03 19.84 15.03 17.58 17.33
Total Livestock Enterprise Income $82,211 $87,108 $67,734 $87,936 88,059
Average Number of Cows 59.4 58.5 59.7 65.3 66.1
Litres of Milk Sold 456,050 439,050 450,780 500,390 508,130
Milk Sold per Cow 7,678 7,505 7,551 7,663 7,687
Avg Cows per Person (Farm) 25.8 26.6 27.1 28.4 27.5
Value of Ent. Prod'n / Cow $4,993 $5,120 $4,985 $5,146 $5,130
Net Enterprise Income / Cow $1,384 $1,489 $1,135 $1,347 $1,332

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Summary of Ontario Dairy Farms - Farm Income Statement

 
 
Low 59 Farms Avg 177 Farms High 59 Farms
Revenue
Product sales-milk, subsidy
242,366
324,921
480,970
Market & Feeder Livestock
2,151
3,597
2,690
Breeding stock
4,607
5,610
6,751
Cull stock
4,101
5,149
7,467
Other livestock
3,116
5,532
11,477
Crop sales
15,991
14,982
20,150
Custom work
1,416
1,407
1,219
Other Farm Revenue
4,471
6,103
8,443
Total Cash Revenue
$278,219
$367,301
$539,167
Change in Accounts Receivable
436
2,276
5,177
Changes in Inventory
-4,411
3,607
12,533
Total Farm Revenue
$274,244
$373,184
$556,877
Expenses - Variable Expenses
Livestock - Purchased Livestock
3,207
3,108
3,848
Pur. Feed - Conc., Grain & Forage
35,298
49,552
76,670
Animal Health & Breeding
11,268
12,888
17,430
Other (lvsk Stabztn, Barn Sppls)
10,646
10,642
12,082
Crop Inputs - Seeds & Plants
5,707
6,594
8,306
Fertilizer & Lime
7,373
9,323
10,815
Pesticides & Other Chemicals
2,820
3,353
4,521
Containers and Twine
1,343
1,656
2,271
Other (Stabztn, Insurance Etc.)
562
943
1,211
Marketing & Tansportation Costs
15,511
21,098
31,374
Custom Work, Equipment Rent
9,745
10,552
13,027
Hired Labour
37,136
35,448
55,914
Machinery & Equipment - Fuel & Oil
9,044
11,136
15,167
Machinery & Equipment - Repairs
15,639
16,207
19,967
Motor Vehicle Expenses
2,198
3,134
3,459
Building, Fence Repairs
8,636
8,333
9,603
Heating Fuel
1,095
990
879
Electricity & Telephone
8,914
10,118
13,183
Accounting, Office Expenses
5,387
4,457
4,905
Interest (Operating)
3,629
3,607
3,328
Other Cash Operating Expenses
3,709
4,831
7,466
Change in Payables
1,749
-2,569
-7,546
Total Variable Expenses
$200,616
$224,401
$307,880
Contribution Margin
$73,628
$148,783
$248,997
Expenses - Fixed Expenses
Property Taxes, Fire & Liab. Ins.
9,644
10,959
13,734
Lease & Rent Payments

5,097
4,066
4,447
Interest (Term)
17,424
25,191
39,346
Change in Interest Arrears
0
10
29
Depreciation
34,274
38,804
47,138
Total Fixed Expenses
66,439
79,030
104,694
Total Expenses
267,055
303,431
412,574
-Less Personal Share of Expenses
-403
-650
-752
Total Farm Expenses
$266,652
$302,781
$411,822
Net Farm Income
$7,592
$70,403
$145,055

* See "Notes Regarding the Summaries" in the Introduction of this summary report.

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Summary of Ontario Dairy Farms - Farm Balance Sheet (assets at Estimated Value)

 
Farm Assets Low 59 Farms Avg 177 Farms High 59Farms
Current Assets
Cash (On hand and in bank)
-6,325
-1,548
4,538
Accounts Receivable
17,858
24,897
38,437
Market & Feeder Livestock
2,139
2,453
2,120
Home-Grown Crops
43,231
51,216
69,797
Purchased Feed & Supplies
2,272
2,764
3,631
Other Current Assets
0
0
0
Total Current Assets
$59,175
$79,782
$118,523
Long Term Assets
Breeding Livestock
113,868
138,195
192,972
Market Quota
1,023,450
1,386,291
2,068,412
Field Machinery
209,665
219,300
250,191
Barn Equipment
58,784
72,581
90,899
Farm Buildings
145,162
191,358
257,242
Land
436,161
542,882
671,383
Other Long Term Assets
19,632
29,405
29,221
Total Long Term Assets
$2,006,722
$2,580,012
$3,560,320
Total Farm Assets
$2,065,897
$2,659,794
$3,678,843
Liabilities
Accounts Payable
14,973
10,625
7,919
Interest Arrears
0
71
213
Operating Credit
14,477
19,234
29,648
Current Portion of Term Debt
32,342
42,811
59,245
Total Current Liabilities
$61,792
$72,741
$97,025
Term Debt
305,223
364,678
469,953
Total Farm Liablilities
$367,015
$437,419
$566,978
Equity in Farm Business
$1,698,882
$2,222,375
$3,111,865
Measures of Financial Strength
(from the balance sheet at year end)
Percent equity
82.23%
83.55%
$84.59%
Working Capital
-$2,617
$7,041
$21,498
Current Ratio xx:1
0.96
1.10
1.22
Debt Structure
16.84%
16.63%
17.11%
Debt to Asset Ratio xx:1
0.18
0.16
0.15
Debt to Equity Ratio xx:1
0.22
0.20
0.18

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Summary of Ontario Dairy Farms - Farm Business Analysis Section

 
  Low 59 Farms Avg 177 Farms High 59 Farms
Measures of Performance Efficiency
Capital Turnover (years)
8.76
8.30
7.72
Value of Farm Production
$235,739
$320,524
$476,359
Cost per dollar of VFP
$0.82
$0.66
$0.60
Cost Control Index
2.8%
18.9%
26.0%
Expenses & NFI Relative to VFP
(Adj. Prod. Cst. - Int) / VFP
73.3%
56.9%
50.7%
Depreciation / VFP
14.5%
12.1%
9.9%
Interest / VFP
8.9%
9.0%
9.0%
Net Income / VFP
3.2%
22.0%
30.5%
Interest & Principal / VFP
49.4%
55.5%
63.8%
Measures of Profitability
Net Farm Income
$7,592
$70,403
$145,055
Return on Total Assets
1.39%
3.73%
5.10%
Return to Equity
0.45%
3.17%
4.66%
Return on Investment (at $36,000 per person)
-0.82%
1.81%
3.88%
Return to Owners Labour
(at 5.0% investment rate)
-$74,650
-$33,789
$3,787
Person Equivalents for the Farm
2.3
2.4
2.8
Debt Servicing Capacity Analysis
Cash Revenue minus Cash Expenses
$47,187
$100,115
$166,214
plus Interest Payment
21,053
28,798
42,674
plus Non-Farm Revenue
24,732
16,269
17,891
minus Owners Withdrawals & Income Tax
-34,184
-57,835
-92,894
Cash Avail. for Debt. Serv. and Cap. Purch.
$58,788
$87,347
$133,885
minus committed Interest & Principal *
-56,956
-79,084
-114,485
minus Reserve for Capital Purchases (Depreciation)
-34,274
-38,804
-47,138
Available After Reserve to Service Additional Debt
-$32,442
-$30,541
-$27,738

 

Physical Summary for the Dairy Enterprise
  Low 59 Farms Avg 177 Farms High 59 Farms
Average Number of Cows
54.5
66.1
90.6
Total hectolitre Milk Sold
3,834
5,081
7,487
Milk Sold Per Cow (litres)
7,035
7,687
8,264
Milk Sold Per Person (Enterprise)
225,529
298,900
374,360
Milk Sold Per Person (Whole Farm)
166,696
211,721
267,400
Avg Cows/Person (Dairy Enterprise)
32.1
38.9
45.3
Average Somatic Cell Count
229,365
210,972
200,727
Calving Interval
13.70
13.62
13.54
Herd Turnover
28.8
31.0
32.9
Heifer Age at First Calving (Months)
25.28
25.81
25.54
Total Butterfat Sold (Kg)
15,348
20,070
29,367
Butterfat Sold per Cow (Kg)
279.7
298.9
324.5
Total Protein Sold (Kg)
12,814
16,893
24,830
Protein Sold per Cow (Kg)
233.6
251.1
274.3

 

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Summary of Ontario Dairy Farms - Dairy Enterprise Report (per cow basis)

 
  Low 59 Farms Avg 177 Farms High 59 Farms
Revenue
Product sales
$4,447.71
$4,916.10
$5,309.44
Market Livestock
6.15
7.97
10.10
Feeder Livestock
12.09
18.38
17.99
Breeding Livestock
82.22
81.86
74.51
Cull Stock
75.03
77.84
82.42
Other Livestock Enterprise Sales
8.97
7.99
7.91
- Livestock Purchased
-55.93
-44.64
-40.61
+ Inventory Change
-10.06
31.09
63.72
+ Change in Receivables
8.00
33.80
55.74
Value of Enterprise Production
$4,574.18
$5,130.38
$5,581.23
Variable Expenses - Livestock Expenses
Purchased feed & grain
607.12
703.16
816.90
Purchased forages
8.33
6.72
6.34
Home-grown grains transferred
255.36
254.47
226.19
Home-grown forages transferred
881.36
820.60
787.08
Total Feed Cost
$1,752.17
$1,784.95
$1,836.51
Animal Health & Breeding
205.89
194.72
192.38
Other (Stabilization, Supplies)
180.75
149.49
126.87
Marketing, Transportation
279.38
312.13
338.25
Custom Work, Equipment Rent
42.75
42.42
37.79
Hired Labour
450.46
350.65
398.30
Machinery & Equip - Fuel & Oil
23.76
29.94
39.09
Machinery & Equipment - Repair
71.63
60.65
56.23
Motor Vehicle Expenses
16.29
18.43
15.00
Building, Fence Repairs
135.03
107.29
90.98
Heating Fuel
4.40
3.95
3.26
Electricity & Telephone
126.79
118.49
113.52
Accounting, Office Expenses
62.92
43.45
35.00
Interest - Operating
22.86
19.64
15.62
Other Cash Variable Expenses
42.28
34.72
26.79
Change in Payables
32.09
-38.85
-83.25
Total Variable Expenses
$3,449.45
$3,232.06
$3,242.34
Contribution Margin
$1,124.73
$1,898.32
$2,338.89
Fixed Expenses

Property Taxes, Fire & Liab. Ins.
119.47
111.30
101.74
Lease & Rent Payments
20.26
11.63
7.88
Interest - Term
177.58
217.20
250.73
Depreciation
217.54
226.31
215.67
Total Fixed Expenses
534.84
566.44
576.03
Total Enterprise Expenses
$3,984.30
$3,798.50
$3,818.36
Net Enterprise Income
$589.89
$1,331.87
$1,762.86

 

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Summary of Ontario Dairy Farms - Dairy Enterprise Report (per hectolitre basis)

 
  Low 59 Farms Avg 177 Farms High 59 Farms
Revenue
Product sales
$63.22
$63.95
$64.25
Market Livestock
0.09
0.10
0.12
Feeder Livestock
0.17
0.24
0.22
Breeding Livestock
1.17
1.06
0.90
Cull Stock
1.07
1.01
1.00
Other Livestock Enterprise Sales
0.13
0.10
0.10
- Livestock Purchased
-0.79
-0.58
-0.49
+ Inventory Change
-0.14
0.40
0.77
+ Change in Receivables
0.11
0.44
0.67
Value of Enterprise Production
$65.02
$66.74
$67.54
Variable Expenses - Livestock Expenses:
Purchased feed & grain
8.63
9.15
9.89
Purchased forages
0.12
0.09
0.08
Home-grown grains transferred
3.63
3.31
2.74
Home-grown forages transferred
12.53
10.67
9.52
Total Feed Cost
$24.91
$23.22
$22.22
Animal Health & Breeding
2.93
2.53
2.33
Other (Stabilization, Supplies)
2.57
1.94
1.54
Marketing, Transportation
3.97
4.06
4.09
Custom Work, Equipment Rent
0.61
0.55
0.46
Hired Labour
6.40
4.56
4.82
Machinery & Equip - Fuel & Oil
0.34
0.39
0.47
Machinery & Equipment - Repair
1.02
0.79
0.68
Motor Vehicle Expenses
0.23
0.24
0.18
Building, Fence Repairs
1.92
1.40
1.10
Heating Fuel
0.06
0.05
0.04
Electricity & Telephone
1.80
1.54
1.37
Accounting, Office Expenses
0.89
0.57
0.42
Interest - Operating
0.32
0.26
0.19
Other Cash Variable Expenses
0.60
0.45
0.32
Change in Payables
0.46
-0.51
-1.01
Total Variable Expenses
$49.03
$42.04
$39.23
Contribution Margin
$15.09
$24.69
$28.30
Fixed Expenses

Property Taxes, Fire & Liab. Ins.
1.70
1.45
1.23
Lease & Rent Payments
0.29
0.15
0.10
Interest - Term
2.52
2.83
3.03
Depreciation
3.09
2.94
2.61
Total Fixed Expenses
7.60
7.37
6.97
total Enterprise Expenses
$56.64
$49.41
$46.20
Net Enterprise Income
$8.39
$17.33
$21.33

 

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Summary of Ontario Dairy Farms - Dairy Enterprise Report (per kilogram butterfat basis)

  Low 59 Farms Avg 177 Farms High 59 Farms
Revenue
Product sales
$15.79
$16.19
$16.38
Market Livestock
0.02
0.03
0.03
Feeder Livestock
0.04
0.06
0.06
Breeding Livestock
0.29
0.27
0.23
Cull Stock
0.27
0.26
0.25
Other Livestock Enterprise Sales
0.03
0.03
0.02
- Livestock Purchased
-0.20
-0.15
-0.13
+ Inventory Change
-0.04
0.10
0.20
+ Change in Receivables
0.03
0.11
0.17
Value of Enterprise Production
$16.24
$16.90
$17.22
Variable Expenses
Livestock Expenses:
Purchased feed & grain
2.16
2.32
2.52
Purchased forages
0.03
0.02
0.02
Home-grown grains transferred
0.91
0.84
0.70
Home-grown forages transferred
3.13
2.70
2.43
Total Feed Cost
$6.22
$5.88
$5.67
Animal Health & Breeding
0.73
0.64
0.59
Other (Stabilization, Supplies)
0.64
0.49
0.39
Marketing, Transportation
0.99
1.03
1.04
Custom Work, Equipment Rent
0.15
0.14
0.12
Hired Labour
1.60
1.15
1.23
Machinery & Equip - Fuel & Oil
0.08
0.10
0.12
Machinery & Equipment - Repair
0.25
0.20
0.17
Motor Vehicle Expenses
0.06
0.06
0.05
Building, Fence Repairs
0.48
0.35
0.28
Heating Fuel
0.02
0.01
0.01
Electricity & Telephone
0.45
0.39
0.35
Accounting, Office Expenses
0.22
0.14
0.11
Interest - Operating
0.08
0.06
0.05
Other Cash Variable Expenses
0.15
0.11
0.08
Change in Payables
0.11
-0.13
-0.26
Total Variable Expenses
$12.25
$10.64
$10.00
Contribution Margin
$3.99
$6.25
$7.22
Fixed Expenses

Property Taxes, Fire & Liab. Ins.
0.42
0.37
0.31
Lease & Rent Payments
0.07
0.04
0.02
Interest - Term
0.63
0.72
0.77
Depreciation
0.77
0.75
0.67
Total Fixed Expenses
1.90
1.87
1.78
Total Enterprise Expenses
$14.15
$12.51
$11.78
Net Enterprise Income
$2.09
$4.39
$5.44

 

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Summary of Ontario Dairy Farms - Crop Enterprise Report (per tillage acre basis)

  Low 59 Farms Avg 177 Farms High 59 Farms
Revenue
Wheat
$5.09
$5.65
$7.34
Spring Grains
2.59
4.99
7.04
Grain Corn
26.21
11.04
2.40
Soybeans
8.24
5.89
5.86
Forage
4.79
7.75
9.60
Fruits
0.00
0.00
0.00
Vegetables
0.00
1.29
2.75
Homegrown Seed
0.06
0.02
0.00
Other Crop Sales & Custom Work
2.17
5.77
9.92
Crop Insurance
0.13
0.46
0.40
Crop Stabilization
0.18
0.49
0.64
Value grains fed to livestock
44.02
48.77
46.41
Value forages fed to livestock
155.79
157.23
159.54
+ Inventory change
-11.95
4.30
15.12
+ Change in receivables
0.00
0.00
0.00
Value of Enterprise Production
$237.33
$253.65
$267.02
Expenses
Variable Expenses
Seed & Plants
17.65
18.87
18.81
Fertilizer & Lime
22.81
23.94
24.49
Pesticides & Other Chemicals
8.72
9.65
10.24
Containers and Twine
4.15
4.76
5.14
Other (Stabztn, Insurance, Etc.)
1.74
2.71
2.74
Marketing & Transportation
0.88
1.10
1.36
Custom Work, Equipment Rent
22.94
22.26
21.71
Hired Labour
38.93
33.46
40.71
Machinery & Equip - Fuel & Oil
23.97
25.84
25.47
Machinery & Equip - Repair
36.30
35.05
33.62
Motor Vehicle Expenses
4.05
5.10
4.46
Building, Fence Repairs
3.95
3.48
3.08
Heating Fuel
2.11
1.75
1.17
Electricity & Telephone
6.20
6.37
6.24
Accounting, Office Expenses
6.06
4.50
3.78
Interest (Operating)
7.37
6.64
4.33
Other Variable Cash Expenses
3.82
3.50
2.84
Change in Payables
0.00
0.00
0.00
Total Variable Expenses
$211.65
$209.08
$210.19
Contribution Margin
$25.67
$44.57
$56.83
Fixed Expenses
Property Taxes, Fire & Liab. Ins
9.69
10.30
10.23
Lease & Rent Payments
12.35
9.48
8.45
Interest (Term)
23.96
31.16
37.63
Depreciation
69.34
68.57
62.43
Total Fixed Expenses
$115.34
$119.51
$118.74
Total Expenses
$326.99
$328.59
$328.93
Net Enterprise Income
$-89.67
-$74.94
-$61.91

 

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Summary of Ontario Dairy Farms - Crops Grown and Fed Report

Crop Acres and Yields
Crop Low 59 Farms Avg 177 Farms High 59 Farms
Acres Grown Total Yield Yield per Acre Acres Grown Total Yield Yield per Acre Acres Grown Total Yield Yield per Acre
Wheat 10.1 11.2 1.1 10.9 16.6 1.5 15.7 28.5 1.8
Spring Grains

50.9

 66.9 1.3 64.7 92.6 1.4 83.0 131.5 1.6
Grain Corn 34.4 116.8 3.4 24.9 85.1 3.4 19.4 71.0 3.7
Soybeans 20.1 20.7 1.0 15.5 14.2 0.9 16.3 11.4 0.7
Straw xxx.x 28.1   xxx.x 36.8   xxx.x 45.0  
Other Crop 1.6 1.3 0.8 6.2 7.2 1.2 10.1 11.1 1.1
Other Crop 1.7 6.7 3.9 3.4 16.5 4.9 7.9 41.4 5.2
Corn Silage 16.8 216.6 12.9 21.3 277.7 13.0 29.5 389.4 13.2
Hay 164.1 174.0 2.3 182.6 163.1 2.6 246.2 188.5 2.6
Haylage xxx.x 423.1   xxx.x 608.3   xxx.x 904.1  
Tillable pasture 23.6     18.1     13.5    
Rough pasture 46.2     30.7     29.6    
Non Crop Land 74.8     84.1     95.6    
Total Acres 444.3     462.4     566.8    
Tillable Acres reported 323.3     347.6     441.6          
Calculated Tillable Acres 323.3     347.6     441.6          
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 1 133 2 1 148 2 1 192 2
Spring grains 55 6,204 114 74 8,339 126 97 11,006 121
Grain corn 55 6,105 112 64 7,082 107 72 8,003 88
Soybeans 5 1,396 26 3 980 15 4 1,099 12
Straw 32 2,393 44 35 2,655 40 41 3,083 34
Other Crop 1 79 1 2 271 4 2 192 2
Other Crop 15 888 16 19 1,146 17 37 2,214 24
Corn silage 194 5,432 100 257 7,196 109 360 10,080 111
Hay 164 16,072 295 139 13,651 207 147 14,435 159
Haylage 457 21,941 403 588 28,243 427 836 40,104 443
Tillable pasture 12 744 14 15 870 13 13 774 9
Rough pasture 23 565 10 19 480 7 25 620 7
Total   61,951 1,137   71,062 1,075 1,013 91,803 1,013
Crop and Livestock Enterprise Investment
Allocated Investment From the Balance Sheet (Year End Values) Crops per Acre Lvsk per Cow Crops per Acre Lvsk per Cow Crops per Acre Lvsk per Cow
Home Grown Crops & Supplies 134 1 147 4 158 5
Feeder & Market Livestock   39   37   23
Breeding Stock   2,089   2,091   2,130
Market Quota 0 18,779 0 20,973 0 22,830
Machinery & Equipment 649 1,079 631 1,098 567 1,003
Land & Farm Buildings 1,439 2,131 1,671 2,315 1,636 2,270
Enterprise Assets/Unit 2,221 24,446 2,451 26,893 2,360 28,684
Total Enterprise Assets/Unit 718,089 1,332,286 852,026 1,777,657 1,042,362 2,598,784
Debt per Acre & per Cow 1,134 6,734 1,258 6,618 1,284 6,258

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For more information:
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Local: (519) 826-4047
E-mail: ag.info.omafra@ontario.ca