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Ontario Dairy Summary 2005

Author: John Molenhuis - Business Analysis and Cost of Production Program Lead/OMAFRA
Creation Date: 28 March 2007
Last Reviewed: 28 March 2007

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 75 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 2005

Crop

Beginning

Transfer
(*See Note Below)

Ending

$ per tonne

$ per bushel

$ per tonne

$ per bushel

$ per tonne $ per bushel

Oats

140
2.16
130
2.00
120
1.85

Barley

110
2.39
115
2.50
120
2.61

Soybeans

229
6.24
235
6.40
240
6.53

Shelled Corn

92
2.33
101
2.57
110
2.79

Mixed Grains

110
2.00
110
2.00
110
2.00

Feed Wheat

140
3.81
142
3.86
144
3.92

Hay

100

 

105

Dairy Hay Transfer Value

110

 

(Depending on Quality)

70

 

73

Beef and Other Livestock Transfer Value

75

 

Straw

80

 
85
 
90
 

Corn Silage

25
  
28
 
30
 

Haylage

50
  
53
 
55
 

Grainlage

25
 
28
 
30
 

Pasture

 

 
60
 
 
 

Rough Pasture

 

 
25
 
 
 

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Summary of Ontario Dairy Farms - 5 Year Summary

Farm Income Statement
  2001 2002 2003 2004 2005
Total Cash Revenue $324,366 $326,509 $367,149 $367,301 $431,713
Total Farm Revenue 334,669 342,501 375,683 373,184 438,700
Total Cash Expenses $224,495 $236,647 $262,655 $271,253 $283,938
Change in Current Payables -382 1,704 -60 -7,546 1,461
Depreciation 34,325 35,449 38,634 38,804 45,897
Total Farm Expenses 258,013 273,423 300,212 302,781 331,367
Net Farm Income $76,656 $69,078 $75,471 $70,403 $107,333

Farm Balance Sheet (Year End)
  2001 2002 2003 2004 2005
Total Assets $1,933,641 $2,178,378 $2,583,313 $2,659,794 $2,924,218
Total Liabilities 371,366 380,165 522,722 437,419 589,349
Equity in Farm Business $1,562,275 $1,798,213 $2,060,591 $2,222,375 $2,334,869
Percent Equity 80.8% 82.6% 79.8% 83.6% 79.9%
Net Capital Purchases (-Sales) 90,362 80,426 104,704 93,177 103,973
Net Withdrawals (-Contributions) 42,130 43,179 38,529 41,566 42,381

Farm Business Analysis Section
  2001 2002 2003 2004 2005
Return on Investment 2.7% 2.1% 2.2% 1.8% 3.2%
Capital Turnover VFP (years) 6.8 7.5 8.1 8.3 7.7
Cost Control Index 22.9% 20.2% 20.1% 18.9% 24.5%
Current Ration :1 0.7 0.6 1.0 1.1 1.2
Working Capital -$27,720 -$63,588 -$1,801 $7,041 $14,618
Debt Servicing Capacity $50,016 $36,963 $58,887 $48,543 $76,496
Term & Operating Interest Paid $26,673 $25,687 $31,556 $28,798 $36,209

Value of Farm Production Analysis
  2001 2002 2003 2004 2005
Cost per Dollar of VFP $0.61 $0.64 $0.64 $0.66 $0.60
Value of Farm Production $285,608 $292,121 $319,284 $320,524 $380,360
(Adj Op. Cost - Int.) / VFP 51.8% 55.4% 54.4% 56.9% 50.2%
Depreciation / VFP 12.0% 12.1% 12.1% 12.1% 12.1%
Interest / VFP 9.3% 8.8% 9.9% 9.0% 9.5%
Net Farm Income / VFP 26.8% 23.6% 23.6% 22.0% 28.2%

Crop Enterprise Report
  2001 2002 2003 2004 2005
Tillable Acres
316
316
341
 348 394
Debt per Tillable Acre
$1,176
$1,199
$1,532
 $1,258 $1,497
Machinery & Equip Repair / Acre
$33.93
$34.02
$34.66
 $35.05 $33.92
Val of Enterprise Production / Acre
$240.66
$271.72
$269.48
 $253.65 $264.38
Variable Expenses / Acre
178.10
190.31
200.82
 209.82 204.24
Depreciation / Acre
66.87
68.36
68.73
 68.57 71.92
Fixed Expenses / Acre
113.63
117.02
124.64
 119.51 128.53
Net Enterprise Income / Acre
-51.07
-35.62
-55.97
 -74.94 -68.39
Total Crop Enterprise Income
-$16,138
-$11,267
 -$19,114
-$26,064
 -$26,925

Livestock Enterprise Report
  2001 2002 2003 2004 2005
Value of Enterprise Prod'n / hL $68.21 $66.02 $67.16 $66.74 $70.52
Feed Cost / hL 22.10 23.69 23.35 23.22 23.46
Variable Expenses / hL 40.83 43.44 42.00 42.04 43.36
Depreciation / hL 2.99 3.06 3.02 2.94 3.13
Fixed Expenses 7.55 7.55 7.57 7.37 8.05
Net Enterprise Income / hL 19.84 15.03 17.58 17.33 19.10
Total Livestock Enterprise Income $87,108 $67,734 $87,936 88,059 $107,260
Average Number of Cows 58.5 59.7 65.3 66.1 72.0
Litres of Milk Sold 439,050 450,780 500,390 508,130 561,570
Milk Sold per Cow 7,505 7,551 7,663 7,687 7,800
Avg Cows per Person (Farm) 26.6 27.1 28.4 27.5 30.0
Value of Ent. Prod'n / Cow $5,120 $4,985 $5,146 $5,130 $5,500
Net Enterprise Income / Cow $1,489 $1,135 $1,347 $1,332 $1,490

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Summary of Ontario Dairy Farms - Farm Income Statement

 
 
Low 50 Farms Avg 149 Farms High 50 Farms
Revenue
Product sales-milk, subsidy
292,564
385,195
553,688
Market & Feeder Livestock
3,146
3,027
2,319
Breeding stock
3,389
5,160
6,854
Cull stock
4,099
6,412
10,387
Other livestock
882
3,719
9,366
Crop sales
14,535
18,090
29,519
Custom work
1,147
2,381
4,783
Other Farm Revenue
4,820
7,765
13,197
Total Cash Revenue
$324,582
$431,713
$630,113
Change in Accounts Receivable
194
1,909
3,067
Changes in Inventory
-7,810
5,078
18,453
Total Farm Revenue
$316,966
$438,700
$651,633
Expenses - Variable Expenses
Livestock - Purchased Livestock
3,686
4,980
5,397
Pur. Feed - Conc., Grain & Forage
38,988
53,360
78,625
Animal Health & Breeding
11,500
14,844
20,701
Other (lvsk Stabztn, Barn Sppls)
10,470
12,822
18,909
Crop Inputs - Seeds & Plants
7,867
7,675
9,869
Fertilizer & Lime
7,524
8,814
11,194
Pesticides & Other Chemicals
3,216
3,767
5,119
Containers and Twine
1,862
1,815
2,013
Other (Stabztn, Insurance Etc.)
757
1,249
2,172
Marketing & Tansportation Costs
18,540
25,156
37,237
Custom Work, Equipment Rent
7,268
10,726
17,086
Hired Labour
36,062
36,341
50,018
Machinery & Equipment - Fuel & Oil
14,437
14,637
18,591
Machinery & Equipment - Repairs
15,807
17,862
23,131
Motor Vehicle Expenses
2,800
3,432
3,694
Building, Fence Repairs
7,754
8,850
12,549
Heating Fuel
676
1,368
2,008
Electricity & Telephone
11,174
12,053
14,508
Accounting, Office Expenses
3,705
4,706
7,297
Interest (Operating)
2,303
2,751
3,137
Other Cash Operating Expenses
4,828
5,788
8,322
Change in Payables
2,979
1,461
1,078
Total Variable Expenses
$214,203
$254,457
$352,655
Contribution Margin
$102,763
$184,243
$298,978
Expenses - Fixed Expenses
Property Taxes, Fire & Liab. Ins.
10,599
12,015
15,868
Lease & Rent Payments
5,991
4,576
4,766
Interest (Term)
26,742
33,458
45,255
Change in Interest Arrears
364
71
-152
Depreciation
44,530
45,897
55,262
Total Fixed Expenses
88,226
96,017
120,999
Total Expenses
302,427
350,474
473,654
-Less Personal Share of Expenses
-5,100
-19,107
-39,525
Total Farm Expenses
$297,329
$331,367
$434,129
Net Farm Income
$19,637
$107,333
$217,504

* 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 50 Farms Avg 149 Farms High 50 Farms
Current Assets
Cash (On hand and in bank)
11,844
1,516
-13,416
Accounts Receivable
22,489
29,161
43,943
Market & Feeder Livestock
3,628
3,654
1,549
Home-Grown Crops
46,195
61,007
92,187
Purchased Feed & Supplies
3,022
4,344
6,348
Other Current Assets
0
0
0
Total Current Assets
$87,178
$99,682
$130,614
Long Term Assets
Breeding Livestock
109,667
118,658
152,463
Market Quota
1,222,697
1,605,752
2,277,459
Field Machinery
282,364
260,705
286,048
Barn Equipment
65,726
84,710
129,160
Farm Buildings
187,045
224,419
274,817
Land
385,749
497,755
802,309
Other Long Term Assets
12,876
32,537
49,044
Total Long Term Assets
$2,266,124
$2,824,536
$3,971,300
Total Farm Assets
$2,353,302
$2,924,218
$4,101,914
Liabilities
Accounts Payable
19,705
18,526
26,653
Interest Arrears
364
156
100
Operating Credit
22,236
24,611
26,131
Current Portion of Term Debt
35,200
41,771
39,247
Total Current Liabilities
77,505
85,064
92,131
Term Debt
370,203
504,285
679,608
Total Farm Liablilities
$447,708
$589,349
$771,739
Equity in Farm Business
$1,905,594
$2,334,869
$3,330,175
Measures of Financial Strength
(from the balance sheet at year end)
Percent equity
80.98%
79.85%
81.19%
Working Capital
$9,673
$14,618
$38,483
Current Ratio xx:1
1.12
1.17
1.42
Debt Structure
17.31%
14.43%
11.94%
Debt to Asset Ratio xx:1
01.19
0.20
0.19
Debt to Equity Ratio xx:1
0.23
0.25
0.23

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Summary of Ontario Dairy Farms - Farm Business Analysis Section

 
  Low 50 Farms Avg 149 Farms High 50 Farms
Measures of Performance Efficiency
Capital Turnover (years)
8.58
7.69
7.23
Value of Farm Production
$274,292
$380,360
$567,611
Cost per dollar of VFP
$0.77
$0.60
$0.52
Cost Control Index
6.2%
24.5%
33.4%
Expenses & NFI Relative to VFP
(Adj. Prod. Cst. - Int) / VFP
66.0%
50.2%
43.4%
Depreciation / VFP
16.2%
12.1%
9.7%
Interest / VFP
10.6%
9.5%
8.5%
Net Income / VFP
7.2%
28.2%
38.3%
Interest & Principal / VFP
26.0%
25.7%
24.9%
Measures of Profitability
Net Farm Income
$19,637
$107,333
$217,504
Return on Total Assets
2.07%
4.91
6.48%
Return to Equity
1.03%
4.60%
6.53%
Return on Investment (at $36,000 per person)
-0.07%
3.20%
5.16%
Return to Owners Labour
(at 5.0% investment rate)
-$68,983
-$2,669
$60,800
Person Equivalents for the Farm
2.4
2.4
2.9
Debt Servicing Capacity Analysis
Cash Revenue minus Cash Expenses
$70,026
$128,565
$212,647
plus Interest Payment
29,045
36,209
48,392
plus Non-Farm Revenue
5,511
9,800
15,811
minus Owners Withdrawals & Income Tax
-27,047
-52,181
-84,056
Cash Avail. for Debt. Serv. and Cap. Purch.
$77,535
$122,393
$192,794
minus committed Interest & Principal *
-71,212
-97,740
-141,244
minus Reserve for Capital Purchases (Depreciation)
-44,530
-45,897
-55,262
Available After Reserve to Service Additional Debt
-$38,207
-$21,244
-$3,712

 

Physical Summary for the Dairy Enterprise
  Low 50 Farms Avg 149 Farms High 50 Farms
Average Number of Cows
61.3
72.0
95.6
Total hectolitre Milk Sold
4,243
5,616
8,105
Milk Sold Per Cow (litres)
6,921
7,800
8,478
Milk Sold Per Person (Enterprise)
265,175
330,335
405,270
Milk Sold Per Person (Whole Farm)
176,783
224,628
279,497
Avg Cows/Person (Dairy Enterprise)
38.3
42.4
47.8
Average Somatic Cell Count
217,378
216,595
198,913
Calving Interval
13.64
13.62
13.62
Herd Turnover
28.2
31.9
34.1
Heifer Age at First Calving (Months)
26.34
25.92
26.05
Total Butterfat Sold (Kg)
16,790
22,080
31,611
Butterfat Sold per Cow (Kg)
282.5
303.4
325.7
Total Protein Sold (Kg)
13,853
18,460
26,501
Protein Sold per Cow (Kg)
232.8
253.2
272.4

 

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

 
  Low 50 Farms Avg 149 Farms High 50 Farms
Revenue
Product sales
$4,772.58
$5,349.43
$5,791.72
Market Livestock
24.83
12.71
5.87
Feeder Livestock
18.48
14.81
8.09
Breeding Livestock
54.31
71.28
71.43
Cull Stock
66.69
89.01
108.65
Other Livestock Enterprise Sales
0.00
0.28
0.04
- Livestock Purchased
-60.13
-65.40
-53.71
+ Inventory Change
-24.26
1.76
5.02
+ Change in Receivables
3.16
26.17
32.08
Value of Enterprise Production
$4,855.66
$5,500.04
$5,969.18
Variable Expenses - Livestock Expenses
Purchased feed & grain
598.09
694.44
762.28
Purchased forages
20.78
9.40
5.63
Home-grown grains transferred
244.31
212.50
199.28
Home-grown forages transferred
994.46
913.40
859.86
Total Feed Cost
$1,857.65
$1,829.75
1827.04
Animal Health & Breeding
187.60
206.15
216.52
Other (Stabilization, Supplies)
155.82
167.10
187.63
Marketing, Transportation
296.41
341.89
380.69
Custom Work, Equipment Rent
32.23
39.81
46.29
Hired Labour
387.44
323.53
324.99
Machinery & Equip - Fuel & Oil
43.18
39.04
40.39
Machinery & Equipment - Repair
65.79
62.18
62.07
Motor Vehicle Expenses
18.91
18.82
14.52
Building, Fence Repairs
107.57
103.83
111.27
Heating Fuel
2.74
5.01
6.41
Electricity & Telephone
138.84
128.81
115.64
Accounting, Office Expenses
38.17
42.31
49.45
Interest - Operating
11.53
15.35
13.37
Other Cash Variable Expenses
49.09
38.00
23.79
Change in Payables
48.60
20.29
11.28
Total Variable Expenses
$3,441.58
$3,381.86
$3,431.32
Contribution Margin
$1,414.08
$2,118.18
$2,537.87
Fixed Expenses

Property Taxes, Fire & Liab. Ins.
114.58
112.50
111.76
Lease & Rent Payments
14.50
11.57
7.70
Interest - Term
228.22
259.99
265.38
Depreciation
235.29
244.19
250.09
Total Fixed Expenses
592.59
628.25
634.93
Total Enterprise Expenses
$4,034.17
$4,010.11
$4,066.24
Net Enterprise Income
$821.49
$1,489.93
$1,902.94

 

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

 
  Low 50 Farms Avg 149 Farms High 50 Farms
Revenue
Product sales
$68.95
$68.59
$68.31
Market Livestock
0.36
0.16
0.07
Feeder Livestock
0.27
0.19
0.10
Breeding Livestock
0.78
0.91
0.84
Cull Stock
0.96
1.14
1.28
Other Livestock Enterprise Sales
0.00
0.00
0.00
- Livestock Purchased
-0.87
-0.84
-0.63
+ Inventory Change
-0.35
0.02
0.06
+ Change in Receivables
0.05
0.34
0.38
Value of Enterprise Production
$70.15
$70.52
$70.40
Variable Expenses - Livestock Expenses:
Purchased feed & grain
8.64
8.90
8.99
Purchased forages
0.30
0.12
0.07
Home-grown grains transferred
3.53
2.72
2.35
Home-grown forages transferred
14.37
11.71
10.14
Total Feed Cost
$26.84
$23.46
$21.55
Animal Health & Breeding
2.71
2.64
2.55
Other (Stabilization, Supplies)
2.25
2.14
2.21
Marketing, Transportation
4.28
4.38
4.49
Custom Work, Equipment Rent
0.47
0.51
0.55
Hired Labour
5.60
4.15
3.83
Machinery & Equip - Fuel & Oil
0.62
0.50
0.48
Machinery & Equipment - Repair
0.95
0.80
0.73
Motor Vehicle Expenses
0.27
0.24
0.17
Building, Fence Repairs
1.55
1.33
1.31
Heating Fuel
0.04
0.06
0.08
Electricity & Telephone
2.01
1.65
1.36
Accounting, Office Expenses
0.55
0.54
0.58
Interest - Operating
0.17
0.20
0.16
Other Cash Variable Expenses
0.71
0.49
0.28
Change in Payables
0.70
0.26
0.13
Total Variable Expenses
$49.72
$43.36
$40.47
Contribution Margin
$20.43
$27.16
$29.93
Fixed Expenses

Property Taxes, Fire & Liab. Ins.
1.66
1.44
1.32
Lease & Rent Payments
0.21
0.15
0.09
Interest - Term
3.30
3.33
3.13
Depreciation
3.40
3.13
2.95
Total Fixed Expenses
8.56
8.05
7.49
Total Enterprise Expenses
$58.29
$51.41
$47.96
Net Enterprise Income
$11.87
$19.10
$22.44

 

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

  Low 50 Farms Avg 149 Farms High 50 Farms
Revenue
Product sales
$17.78
$17.56
$17.52
Market Livestock
0.09
0.04
0.02
Feeder Livestock
0.07
0.05
0.02
Breeding Livestock
0.20
0.23
0.22
Cull Stock
0.25
0.29
0.33
Other Livestock Enterprise Sales
0.00
0.00
0.00
- Livestock Purchased
-0.22
-0.21
-0.16
+ Inventory Change
-0.19
0.01
0.02
+ Change in Receivables
0.01
0.09
0.10
Value of Enterprise Production
$18.09
$18.06
$18.05
Variable Expenses
Livestock Expenses:
Purchased feed & grain
2.23
2.28
2.31
Purchased forages
0.08
0.03
0.02
Home-grown grains transferred
0.91
0.70
0.60
Home-grown forages transferred
3.70
3.00
2.60
Total Feed Cost
$6.92
$6.01
$5.53
Animal Health & Breeding
0.70
0.68
0.65
Other (Stabilization, Supplies)
0.58
0.55
0.57
Marketing, Transportation
1.10
1.12
1.15
Custom Work, Equipment Rent
0.12
0.13
0.14
Hired Labour
1.44
1.06
0.98
Machinery & Equip - Fuel & Oil
0.16
0.13
0.12
Machinery & Equipment - Repair
0.25
0.20
0.19
Motor Vehicle Expenses
0.07
0.06
0.04
Building, Fence Repairs
0.40
0.34
0.34
Heating Fuel
0.01
0.02
0.02
Electricity & Telephone
0.52
0.42
0.35
Accounting, Office Expenses
0.14
0.14
0.15
Interest - Operating
0.04
0.05
0.04
Other Cash Variable Expenses
0.18
0.12
0.07
Change in Payables
0.18
0.07
0.03
Total Variable Expenses
$12.82
$11.10
$10.38
Contribution Margin
$5.27
$6.95
$7.68
Fixed Expenses

Property Taxes, Fire & Liab. Ins.
0.43
0.37
0.34
Lease & Rent Payments
0.05
0.04
0.02
Interest - Term
0.85
0.85
0.80
Depreciation
0.88
0.80
0.76
Total Fixed Expenses
2.21
2.06
1.92
Total Enterprise Expenses
$15.03
$13.16
$12.30
Net Enterprise Income
$3.06
$4.89
$5.75

 

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

  Low 50 Farms Avg 149 Farms High 50 Farms
Revenue
Wheat
$10.16
$8.38
$11.33
Spring Grains
4.13
5.38
7.56
Grain Corn
2.97
4.29
6.41
Soybeans
3.91
8.08
14.24
Forage
3.89
6.25
8.53
Fruits
0.00
0.08
0.20
Vegetables
0.00
1.11
2.60
Homegrown Seed
0.00
0.00
0.00
Other Crop Sales & Custom Work
4.02
6.67
8.71
Crop Insurance
4.59
3.68
2.84
Crop Stabilization
3.57
2.57
2.66
Value grains fed to livestock
38.70
39.06
41.86
Value forages fed to livestock
160.43
168.96
181.46
+ Inventory change
-15.70
9.87
33.76
+ Change in receivables
0.00
0.00
0.00
Value of Enterprise Production
$220.67
$264.38
$322.16
Expenses
Variable Expenses
Seed & Plants
20.07
19.49
21.69
Fertilizer & Lime
19.20
22.39
24.60
Pesticides & Other Chemicals
8.21
9.57
11.25
Containers and Twine
4.75
4.61
4.42
Other (Stabztn, Insurance, Etc.)
1.93
3.17
4.77
Marketing & Transportation
0.94
1.22
1.46
Custom Work, Equipment Rent
13.50
19.94
27.82
Hired Labour
31.42
31.05
36.24
Machinery & Equip - Fuel & Oil
30.00
29.91
32.19
Machinery & Equip - Repair
29.93
33.92
37.72
Motor Vehicle Expenses
4.09
4.88
4.84
Building, Fence Repairs
2.96
3.32
4.16
Heating Fuel
1.29
1.99
2.52
Electricity & Telephone
6.77
6.76
7.08
Accounting, Office Expenses
3.46
4.15
5.50
Interest (Operating)
4.07
4.11
3.90
Other Variable Cash Expenses
4.64
3.74
2.96
Change in Payables
0.00
0.00
0.00
Total Variable Expenses
$187.23
$204.24
$233.11
Contribution Margin
$33.44
$60.14
$89.05
Fixed Expenses
Property Taxes, Fire & Liab. Ins
9.12
9.83
11.22
Lease & Rent Payments
13.02
9.48
8.86
Interest (Term)
32.54
37.30
43.33
Depreciation
76.82
71.92
68.89
Total Fixed Expenses
$131.50
$128.53
$132.29
Total Expenses
$318.73
$332.77
$365.40
Net Enterprise Income
-$98.07
-$68.39
-$43.24

 

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Summary of Ontario Dairy Farms - Crops Grown and Fed Report

Crop Acres and Yields
Crop Low 50 Farms Avg 149 Farms High 50 Farms
Acres Grown Total Yield Yield per Acre Acres Grown Total Yield Yield per Acre Acres Grown Total Yield Yield per Acre
Wheat 20.1 21.4 1.1 13.0 15.2 1.2 11.1 14.8 1.3
Spring Grains

89.2

 105.6 1.2 81.9 104.8 1.3 82.8 116.0 1.4
Grain Corn 11.8 37.4 3.2 15.6 56.8 3.6 25.3 100.2 4.0
Soybeans 7.2 7.3 1.0 15.0 15.0 1.0 30.3 34.5 1.1
Straw xxx.x 45.0   xxx.x 36.0   xxx.x 38.4  
Other Crop 9.7 10.5 1.1 7.6 7.4 1.0 5.7 6.3 1.1
Other Crop 7.8 11.5 1.5 5.7 14.7 2.6 5.4 20.1 3.7
Corn Silage 16.2 201.3 12.4 23.0 343.1 14.9 36.6 605.1 16.5
Hay 202.5 151.6 2.2 209.1 179.4 2.4 242.0 218.9 2.7
Haylage xxx.x 570.0   xxx.x 645.9   xxx.x 853.3  
Tillable pasture 27.4     22.8     15.9    
Rough pasture 24.0     23.8     26.0    
Non Crop Land 121.0     100.5     80.6    
Total Acres 536.9     518.0     561.7    
Tillable Acres reported 391.9     393.7     455.1          
Calculated Tillable Acres 391.9     393.7     455.1          
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
3
398
6
1
185
3
0
43
0
Spring grains
90
9,933
162
86
9,416
131
89
9,823
103
Grain corn
38
3,838
63
45
4,565
63
77
7,737
81
Soybeans
3
682
11
4
893
12
5
1081
11
Straw
53
4,522
74
41
3,511
49
43
3,616
38
Other Crop
1
126
2
2
242
3
4
368
4
Other Crop
8
486
8
22
1,332
19
47
2,838
30
Corn silage
208
5,740
94
315
8,820
123
525
14,700
154
Hay
144
15,120
247
151
15,876
221
167
17,535
183
Haylage
632
33,480
546
653
34,614
481
792
41,971
439
Tillable pasture
20
1,200
20
18
1,092
15
15
906
9
Rough pasture
17
413
7
521
520
7
26
640
7
Total
 
75,937
1,239
 
81,065
1,126
  
101,253
1,059
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 118 2 155 2 203 2
Feeder & Market Livestock   59   51   16
Breeding Stock   1,789   1,648   1,595
Market Quota 0 19,946 0 22,302 0 23,823
Machinery & Equipment 721 1,072 662 1,177 629 1,351
Land & Farm Buildings 1,080 2,441 1,378 2,494 1,884 2,300
Enterprise Assets/Unit 1,918 25,676 2,196 28,078 2,715 29,546
Total Enterprise Assets/Unit 751,717 1,573,947 864,380 2,021,614 1,235,507 2,824,634
Debt per Acre & per Cow 1,142 7,304 1,497 8,185 1,696 8,073

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E-mail: ag.info.omafra@ontario.ca