2007 Analysis Presentation 2007 Analysis Presentation
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Transcript of 2007 Analysis Presentation 2007 Analysis Presentation
2007 Analysis Presentation2007 Analysis Presentation
This presentation is designed to show the average financial and production trends for Iowa farms. All of the farmand production trends for Iowa farms. All of the farm operators that contributed data for this presentation are members of the Iowa Farm Business Association and received the benefit of an individual report showing howreceived the benefit of an individual report showing how their farm data compared to these averages. If you feel that you could benefit from knowing these numbers for your operation or if you know someone else who could benefit,operation or if you know someone else who could benefit, please contact one of the consultants listed at www.iowafarmbusiness.org or call the IFBA State Office at 515-233-5802 for more information.at 515 233 5802 for more information.
Presentation SummaryPresentation Summary
General InformationCorn Enterprise DatapSoybean Enterprise DataPork Production Data
Farrow to Finish & Feeder Pig Beef Production DataBeef Production Data
Cow/Calf & Feeder Cattle Financial DataFinancial Data
Accrued Net Farm IncomeAccrued Net Farm Income
140000
160000
180000
80000
100000
120000
20000
40000
60000
01997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Accrued Net Farm Income includes the value of home used products, change in inventory (both value and volume on hand will affect this), and a depreciation charge based on 10% straight line rate with a 10% salvage value on all depreciable items.
Gross Profit Per $1 of ExpenseGross Profit Per $1 of Expense
1 4
1.6
1.8
1
1.2
1.4
0.6
0.8
0.2
0.4
01997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Gross Profits/$ Expense
Power Mach Cost vs Invest. CostPower Mach Cost vs Invest. Cost(Per Acre)
350
250
300
350
150
200
250
50
100
150
0
50
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Mach & Power Cost Mach & Power Investment
Gross Profit Per ManGross Profit Per Man
350000
400000
450000
250000
300000
100000
150000
200000
0
50000
100000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Gross Profits/Man Year Equivalent
IFBA Statewide DataIFBA Statewide Data
Corn Enterprisep
Corn YieldsCorn Yields200
140
160
180
200
80
100
120
140
20
40
60
01997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Corn Yield/Acre
Avg Corn Selling PriceAvg. Corn Selling Price
3
3.5
2
2.5
1
1.5
0
0.5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Avg Selling Corn Price
Corn Production Value vs Expenses
3
3.5
4
2
2.5
3
1
1.5
2
0
0.5
1998 1999 2000 2001 2002 2003 2004 2005 2006 20071998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Production Value ($/bu.) Total Cash Expense ($/bu.) Depr Cost ($/bu.)
Direct Corn ExpensesDirect Corn Expenses
80
100
40
60
0
20
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Seed Insecticide HerbicideFertilizer & Lime Drying & Storage
IFBA Statewide DataIFBA Statewide Data
Bean EnterpriseBean Enterprise
Bean YieldsBean Yields
50
60
30
40
20
30
0
10
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Bean Yield
Avg Bean Selling PriceAvg. Bean Selling Price
7
8
4
5
6
2
3
4
0
1
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20071997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Avg Selling Bean Price
Bean Production Value vs Expenses
10
12
6
8
2
4
0
2
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Prod ction Val e ($/b ) Total Cash E pense ($/b ) Depr Cost ($/b )Production Value ($/bu.) Total Cash Expense ($/bu.) Depr Cost ($/bu.)
Direct Bean ExpensesDirect Bean Expenses
30
35
15
20
25
5
10
15
01997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Seed Insecticide HerbicideFertilizer & Lime Drying & Storage
IFBA Statewide DataIFBA Statewide Data
Hog EnterprisesHog Enterprises
Farrow/Finish Feed ConvFarrow/Finish Feed Conv.
3.85
3.9
3.95
3.7
3.75
3.8
3.6
3.65
3.45
3.5
3.55
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20071997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Feed Lbs/Gain
Farrow/Finish ReturnsFarrow/Finish Returns
200
250
150
100
0
50
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20071997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Feed Return $100/fed
Feeder Pig ReturnsFeeder Pig Returns
160
180
100
120
140
40
60
80
0
20
40
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Feed Return $100/fed
Farrow/Finish ProfitabilityFarrow/Finish Profitability
50
60
30
40
20
0
10
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Value Cwt Feed Cost/Cwt Produced Cash Cost $/Cwt Depr Cost $/Cwt.
Feeder Pig Feed ConvFeeder Pig Feed Conv.
3.5
3.6
3.3
3.4
3.1
3.2
2.9
3
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Feed Lbs/Gain
Feeder Pig ProfitabilityFeeder Pig Profitability
30
35
40
20
25
30
10
15
0
5
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Value Cwt Feed Cost/Cwt Produced Cash Cost $/Cwt Depr Cost $/Cwt.
IFBA Statewide DataIFBA Statewide Data
Cattle EnterprisesCattle Enterprises
Cow/Calf Feed ReturnsCow/Calf Feed Returns
200
250
150
200
100
0
50
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Feed Return $100/fed
Cow/Calf ProfitabilityCow/Calf Profitability
80
90
100
60
70
30
40
50
10
20
01998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Value Cwt Feed Cost/Cwt Produced Cash Cost $/Cwt Depr cost $/Cwt.
Feeder Cattle ReturnsFeeder Cattle Returns
180
200
120
140
160
60
80
100
0
20
40
01997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Feed Return $100/fed
Feeder Cattle Feed ConvFeeder Cattle Feed Conv.
12
14
8
10
4
6
0
2
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Feed Lbs/Gain
Feeder Cattle ProfitabilityFeeder Cattle Profitability
60
70
80
40
50
60
20
30
0
10
1998 1999 2000 2001 2002 2003 2004 2005 2006 20071998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Value Cwt. Feed Cost/Cwt Produced Cash Cost $/Cwt Depr Cost $/Cwt.
IFBA Statewide DataIFBA Statewide Data
Financial DataFinancial Data
Income vs Net Worth
1400000
1200000
1400000
800000
1000000
400000
600000
0
200000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Total Net Worth Accrued Net Farm Income Nonfarm Income
Management ReturnManagement Return
80000100000120000140000
200000
200004000060000
-60000-40000-20000
997
998
999
000
001
002
003
004
005
006
007
199
199
199
200
200
200
200
200
200
200
200
Management Return takes Net Farm Income and subtracts out the following opportunity costs:4% charge on operator’s equity invested in the operation$2000/ th l f th t ’ l b$2000/month salary for the operator’s labor$1300/month salary for operator’s family labor
Management Return vs Accrued Net F I f 2006 b Si GFarm Income for 2006; by Size Group
300000400000 500000
0100000 200000 300000
1 2 3 4 5MR Avg 27506 61524 93106 164829 291298 NFI Avg 57127 107097 154846 243220 399722
0
Size groups 1 to 5 are based on Acres:
Group 1: 0 to 320; Group 2: 321 to 479, Group 3: 480 to719, Group 4: 720 to 1299: Group 5 1299 and up
Current Ratio (CA/CL)Current Ratio (CA/CL)
3
4
2
3
0
1
0Current Ratio 2.742 2.101 2.189 2.535 2.37 2.288 2.43 2.55 2.45 2.79 3.405
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
This ratio looks at the net payment obligation in the next 12 month from cash or assets quickly converted to cash.
Analysis: 2.0 Excellent, 1.5 Fair, 1.0 Weak
Net Farm Income, Income before Depreciation, and I P idInterest Paid
200000250000
50000100000150000
050000
97 99 01 03 05 07
1997
1999
2001
2003
2005
2007
Accrued Net Farm IncomeInterestAccrued Income Before Economic Depr.
Debt to Asset Ratio (TL/TA)Debt to Asset Ratio (TL/TA)
0 3
0.4
0.2
0.3
0.1
0.2
0Debt to Asset Ratio 0.23 0.31 0.31 0.29 0.29 0.3 0.29 0.28 0.28 0.27 0.24
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Debt to Asset RatioTL/TA
0.23 0.31 0.31 0.29 0.29 0.3 0.29 0.28 0.28 0.27 0.24
This represents the proportion of total farm assets owed to creditors, a higher ratio would be an indication of greater risk.
Analysis: <30% Excellent, 30% to 60% Fair, >60% Weak
Rate of Return on EquityRate of Return on Equity
Return on Equity (NFI-UL)/NWReturn on Equity (NFI-UL)/NW
0.15
0 05
0.1
0
0.05
-0.05Return on Equity (NFI-UL)/NW 0.083 -0.03 0.031 0.08 0.029 0.048 0.065 0.091 0.083 0.123 0.135
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Represents rate of return on your equity, ((Net Farm Income - unpaid family labor) / Total Farm Net Worth)
Analysis: >7% Excellent, 7% to 2% Fair, < 2% Weak
Rate of Return on InvestmentRate of Return on Investment
0.10.120.14
0.060.08
0.1
00.020.04
0Return on Investment(NFI+IN-UL)/TA
0.083 0.002 0.045 0.08 0.043 0.053 0.064 0.082 0.076 0.106 0.119
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Represents rate of return on all assets, ((Net Farm Income + interest pd - unpaid family labor) / Total Assets)
Analysis: >7% Excellent, 7% to 2% Fair, < 2% Weak