Dairy Business Analysis Project: Financial Summary for 1995-20011
Introduction
The Dairy Business Analysis Project (DBAP) was initiated in 1996 by the University of Florida in an effort to measure and document the financial performance of Florida dairy businesses using standardized accounting measures. The University of Georgia has been a collaborator since 1998. The DBAP website is http://www.animal.ufl.edu/dbap.
Financial data for the years 1995 through 2001 were collected from participating dairies and screened for completeness and validity. Each dairy then received a report detailing its financial results compared to the average results for the other participants and the dairies with the highest net farm income from operations per cwt.
This publication is a summary of the data collected for the years 1995 through 2001. Some results may be slightly different from the annual DBAP summaries published in EDIS because minor changes in the calculations have been made over the years. This publication is intended for general use by dairy farmers, the allied industry, and government, and educational professionals.
Data Collection and Accounting Methods
Dairy businesses in Florida, Georgia, and Alabama were asked to participate in DBAP. Participants were therefore not a random sample of all dairies in the three states.
Most of the data were collected by extension agents when visiting farms using a standardized data collection spreadsheet. Occasionally, data were sent in by the dairy farms. The financial data were either entered into the spreadsheet on the farm or mailed in on paper copies of the spreadsheet.
The accounting methods follow the recommendations made by the Farm Financial Standards Council, 1997, Financial Guidelines for Agricultural Producers. All revenues and expenses were accrual adjusted. Cash receipts and expenses were therefore adjusted for changes in inventory, prepaid expenses, depreciation, accounts payable, and accounts receivable. Depreciation data were taken from tax records. Asset valuation was based on market values. Unpaid management was valued at $50,000 per farm. Gain or loss on sale of capital assets resulted when depreciation did not completely account for the gain or loss in the value of the asset during the year.
The bottom line of each dairy business is its net farm income. Net farm income is the return to the owner and unpaid family members for their labor, management, and equity in the business. It is the total income available for the owner's salary, new investments, taxes, and loan principal payments.
All submitted data were carefully scrutinized and checked for completeness. The cash flow statement reconciles the net cash flow resulting from the reported operating, investing, and financing activities with the reported available cash on the January 1 and December 31 balance sheets. The equity statement reconciles the changes in equity through reported retained capital and valuation with the calculated equity on the balance sheets. The reconciliation attempts typically result in unresolved imbalances. Both cash flow imbalance and equity imbalance had to be less than 10% for the business to be included in the summary results reported here.
Results
Financial data was collected from 263 dairy x year combinations between 1995 and 2001, but 234 of those were included in this summary. All dairies were located in Florida, Georgia, and Alabama. Data were collected from 20, 27, 44, 55, 26, 23, and 39 dairies in the seven years from 1995 through 2001, respectively. The average herd size was 1,527, 1,375, 1,280, 808, 1,063, 1,079, and 977 cows with 15,689, 15,774, 16,586, 16,963, 17,973, 17,778, and 17,170 pounds milk sold per cow for the years 1995 through 2001, respectively. Total revenue for the seven years were, in chronological order, $16.98, $20.24, $18.03, $19.40, $19.07, $18.16, and $20.00. Corresponding total expenses were $17.60, $18.51, $17.83, $17.42, $16.27, $17.08, and $17.75. Total revenue minus total expenses equals net farm income from operations, which averaged $(0.63), $1.73, $0.20, $1.98, $2.79, $ 1.07, and $2.25 per cwt. for 1995 though 2001, respectively. Net farm income for 1995 through 2001 averaged $0.26, $2.19, $1.27, $2.07, $2.91, $1.10, and $2.39, respectively.
Summary results are presented in Tables 1.1 through 5.5. Some definitions and calculation rules are as follows:
Asset turnover ratio = total revenues / average assets
Average assets = average of value of assets on January 1 and December 31
Average equity = average of value of equity on January 1 and December 31
Capital replacement and term debt repayment margin = NFIFO + depreciation + interest on term debt – net social security and income taxes – owner withdrawals – annual scheduled payments on term debt and capital leases
Cash flow coverage ratio = (cash revenues – cash expenses) / current liabilities
Current assets = assets that can be converted to cash within one year without interrupting the business
Current liabilities = liabilities due within one year
Current ratio = current assets / current liabilities
Debt to asset ratio = liabilities / assets
Debt to equity ratio = liabilities / equity
Depreciation expense ratio = depreciation / total revenue
Equity = assets - liabilities
Equity to asset ratio = equity / assets
FTE = full time equivalent worker, on average 54 hours per week
Interest expense ratio = interest paid / total revenue
Net farm income = NFIFO + gain or loss on sale of capital assets
NFIFO = net farm income from operations
NFIFO ratio = NFIFO / total revenue
Operating expense ratio = (total operating expenses – depreciation) / total revenue
Operating profit margin ratio = (NFIFO + interest paid – unpaid management) / total revenues
Rate of return on assets = (NFIFO + interest paid – unpaid management) / average assets
Rate of return on equity = (NFIFO – unpaid management) / average equity
Term debt and capital lease coverage ratio = (NFIFO + non dairy income + depreciation + interest paid on term debt – net social security and income taxes – owner withdrawals) / (annual scheduled payments on term debt and capital leases)
Working capital = current assets / current liabilities
The results in tables 2.1 through 5.5 are sorted in three groups with approximately the same number of farms per group based on the sorting criteria.
List of Tables
1.1. Average and standard deviation of business size and production efficiency by year.
1.2. Average and standard deviation of revenues by year.
1.3. Average and standard deviation of costs by year.
1.4. Average and standard deviation of financial performance by year.
1.5. Average and standard deviations of balance sheets by year.
2.1. Business size and production efficiency by average number of cows.
2.2. Revenues by average number of cows.
2.3. Costs by average number of cows.
2.4. Financial performance by average number of cows.
2.5. Balance sheet by average number of cows.
3.1. Business size and production efficiency by milk per cow.
3.2. Revenues by milk per cow.
3.3. Costs by milk per cow.
3.4. Financial performance by milk per cow.
3.5. Balance sheet by milk per cow.
4.1. Business size and production efficiency by net farm income from operations per cwt.
4.2. Revenues by net farm income from operations per cwt.
4.3. Costs by net farm income from operations per cwt.
4.4. Financial performance by net farm income from operations per cwt.
4.5. Balance sheet by net farm income from operations per cwt.
5.1. Business size and production efficiency by average dairy assets per cow.
5.2. Revenues by average dairy assets per cow.
5.3. Costs by average dairy assets per cow.
5.4. Financial performance by average dairy assets per cow.
5.5. Balance sheet by average dairy assets per cow.
Tables
DBAP 1995-2001 Summary – Average and standard deviation of business size and production efficiency by year.
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
|
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
|
| Business size | ||||||||
Number of cows |
mean std1 |
1,527 2,420 |
1,375 1,683 |
1,280 2,127 |
808 759 |
1,063 880 |
1,079 899 |
977 980 |
Number of heifers |
mean std1 |
822 1,667 |
734 1,120 |
724 1,317 |
424 596 |
589 792 |
615 747 |
477 693 |
Milk sold (million lbs) |
mean std1 |
24.22 36.14 |
21.75 25.22 |
21.31 32.14 |
14.26 14.76 |
19.85 18.44 |
20.59 19.40 |
17.55 19.45 |
FTE workers |
mean std1 |
29 40 |
26 33 |
23 34 |
16 19 |
21 23 |
20 17 |
19 19 |
Acres of pasture + cultivated land |
mean std1 |
1,245 2,509 |
859 1,399 |
817 1,874 |
388 455 |
515 512 |
463 539 |
437 474 |
Production efficiency Milk sold / cow (lbs) |
mean std1 |
15,689 3,420 |
15,774 2,973 |
16,586 3,228 |
16,963 3,489 |
17,973 3,101 |
17,778 3,702 |
17,170 2,837 |
Cows / FTE worker |
mean std1 |
57.95 29.65 |
54.39 25.92 |
54.07 18.83 |
55.79 21.14 |
59.00 23.54 |
53.81 19.03 |
51.53 18.84 |
| Milk sold / FTE worker (million lbs) | mean std1 |
0.88 0.41 |
0.82 0.29 |
0.88 0.28 |
0.92 0.31 |
1.03 0.35 |
0.96 0.37 |
0.88 0.35 |
| Cull rate | mean std1 |
0.35 0.16 |
0.34 0.12 |
0.35 0.15 |
0.38 0.12 |
0.34 0.09 |
0.38 0.11 |
0.36 0.13 |
1Standard deviation. |
||||||||
DBAP 1995-2001 Summary – Average and standard deviation of revenues by year.
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
|
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
|
Revenues (per cwt) |
||||||||
Milk sold ($)
|
mean std1 |
15.26 0.57 |
18.39 0.82 |
16.68 0.97 |
18.35 0.90 |
17.80 0.91 |
16.69 0.79 |
18.24 1.22 |
Raised, leased cow sales ($)
|
mean std1 |
0.89 0.93 |
1.09 1.31 |
0.66 0.74 |
0.47 0.70 |
0.53 0.59 |
0.61 0.79 |
0.56 0.78 |
Heifer sales ($) |
mean std1 |
0.16 0.50 |
0.26 0.40 |
0.19 0.57 |
0.14 0.53 |
0.20 0.63 |
0.40 1.08 |
0.29 0.53 |
| Gain on purchased livestock sales ($) | mean std1 |
0.00 0.00 |
(0.08) 0.51 |
0.10 0.96 |
(0.12) 0.77 |
(0.19) 0.54 |
(0.04) 0.63 |
(0.08) 0.99 |
| Other revenues ($) | mean std1 |
0.66 0.87 |
0.59 0.78 |
0.40 1.11 |
0.55 0.78 |
0.72 0.92 |
0.50 0.62 |
0.99 1.05 |
| Total revenues ($) | mean std1 |
16.98 1.27 |
20.24 1.73 |
18.03 1.81 |
19.40 1.35 |
19.07 1.53 |
18.16 1.76 |
20.00 2.26 |
1Standard deviation. |
||||||||
DBAP 1995-2001 Summary – Average and standard deviation of costs by year.
| Category | 1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
|
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
|
Costs (per cwt) |
||||||||
| Personnel ($) | mean std1 |
2.76 0.68 |
2.45 0.69 |
2.40 0.95 |
2.23 0.92 |
2.37 0.78 |
2.66 0.87 |
2.69 1.04 |
Purchased feed ($) |
mean std1 |
7.61 1.23 |
8.80 1.29 |
8.41 1.61 |
7.69 1.44 |
7.04 1.32 |
6.94 1.74 |
7.32 1.61 |
Crops ($) |
mean std1 |
0.24 0.40 |
0.31 0.39 |
0.28 0.39 |
0.32 0.42 |
0.31 0.38 |
0.27 0.42 |
0.48 0.89 |
Machinery ($) |
mean std1 |
0.77 0.31 |
0.89 0.58 |
0.82 0.52 |
0.83 0.45 |
0.88 0.53 |
0.86 0.53 |
1.01 0.52 |
| Livestock ($) | mean std1 |
2.00 1.00 |
2.25 1.26 |
2.31 1.49 |
1.56 0.66 |
1.53 0.77 |
1.69 0.92 |
1.64 0.88 |
| Milk marketing ($) | mean std1 |
1.21 0.33 |
0.98 0.26 |
1.06 0.31 |
1.09 0.38 |
1.04 0.40 |
1.10 0.36 |
1.05 0.37 |
| Buildings and land ($) | mean std1 |
0.45 0.39 |
0.50 0.30 |
0.53 0.28 |
0.65 0.42 |
0.61 0.47 |
0.63 0.64 |
0.64 0.49 |
| Interest ($) | mean std1 |
0.69 0.56 |
0.75 0.43 |
0.69 0.53 |
0.70 0.54 |
0.55 0.31 |
0.65 0.43 |
0.61 0.53 |
Depreciation: |
||||||||
|
mean std1 |
0.00 0.00 |
0.00 0.02 |
0.07 0.22 |
0.87 0.77 |
0.70 0.60 |
0.88 0.76 |
0.67 0.69 |
|
mean std1 |
0.48 0.70 |
0.50 0.53 |
0.35 0.36 |
0.44 0.41 |
0.37 0.23 |
0.44 0.41 |
0.50 0.42 |
|
mean std1 |
0.53 1.24 |
0.43 0.85 |
0.15 0.19 |
0.20 0.26 |
0.13 0.12 |
0.22 0.18 |
0.24 0.33 |
Other expenses ($) |
mean std1 |
0.85 0.47 |
0.65 0.39 |
0.76 0.38 |
0.84 0.45 |
0.74 0.37 |
0.74 0.32 |
0.90 0.47 |
Total expenses ($) |
mean std1 |
17.60 2.68 |
18.51 2.08 |
17.83 2.11 |
17.42 2.19 |
16.27 1.58 |
17.08 2.49 |
17.75 2.01 |
| Net farm income from operations ($) | mean std1 |
(0.63) 2.34 |
1.73 2.45 |
0.20 2.21 |
1.98 1.94 |
2.79 1.75 |
1.07 2.07 |
2.25 1.85 |
Gain on sale of capital assets ($) |
mean std1 |
0.89 1.74 |
0.46 1.47 |
1.07 5.16 |
0.09 0.43 |
0.11 0.46 |
(0.04) 0.49 |
0.15 0.43 |
Net farm income ($) |
mean std1 |
0.26 1.67 |
2.19 2.54 |
1.27 4.59 |
2.07 1.99 |
2.91 1.73 |
1.10 2.04 |
2.39 1.92 |
1Standard deviation.
|
||||||||
DBAP 1995-2001 Summary – Average and standard deviation of financial performance by year.
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
|
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
|
| Liquidity | ||||||||
| Current ratio | mean std1 |
2.08 2.36 |
2.34 3.01 |
8.20 40.82 |
159.12 919.97 |
12.97 25.64 |
2.02 2.29 |
2.34 3.43 |
Working capital |
mean std1 |
(258,913) 1,287,444 |
31,219 706,000 |
(91,439) 546,903 |
140,989 400,112 |
312,030 555,198 |
(8,319) 632,552 |
185,321 536,348 |
| Solvency | ||||||||
Debt to asset ratio |
mean std1 |
0.23 0.22 |
0.43 0.27 |
0.43 0.34 |
0.41 0.29 |
0.41 0.27 |
0.36 0.20 |
0.32 0.21 |
Equity to asset ratio |
mean std1 |
0.77 0.22 |
0.57 0.27 |
0.57 0.34 |
0.59 0.29 |
0.59 0.27 |
0.64 0.20 |
0.68 0.21 |
Debt to equity ratio |
mean std1 |
0.47 0.64 |
5.31 18.98 |
0.87 5.56 |
(9.46) 79.54 |
1.94 4.04 |
0.74 0.64 |
0.72 1.18 |
| Profitability | ||||||||
Rate of return on assets |
mean std1 |
(0.03) 0.25 |
0.12 0.23 |
0.03 0.13 |
0.12 0.24 |
0.15 0.15 |
0.07 0.08 |
0.09 0.09 |
Rate of return on equity |
mean std1 |
(0.08) 0.27 |
0.09 1.57 |
(0.10) 1.32 |
(1.76) 14.84 |
(1.24) 7.56 |
0.07 0.14 |
0.11 0.19 |
Operating profit margin ratio |
mean std1 |
(0.05) 0.18 |
0.09 0.11 |
(0.02) 0.18 |
0.10 0.11 |
0.15 0.09 |
0.06 0.13 |
0.09 0.10 |
| Financial efficiency | ||||||||
Asset turnover rate |
mean std1 |
1.09 0.61 |
1.00 0.59 |
0.99 0.61 |
1.14 1.35 |
1.03 0.44 |
0.89 0.46 |
0.90 0.42 |
Operating expense ratio |
mean std1 |
0.94 0.10 |
0.83 0.09 |
0.92 0.11 |
0.78 0.10 |
0.76 0.08 |
0.82 0.10 |
0.79 0.10 |
Depreciation expense ratio |
mean std1 |
0.06 0.10 |
0.05 0.06 |
0.03 0.03 |
0.08 0.04 |
0.06 0.03 |
0.08 0.04 |
0.07 0.04 |
Interest expense ratio |
mean std1 |
0.04 0.03 |
0.04 0.02 |
0.04 0.03 |
0.04 0.03 |
0.03 0.02 |
0.04 0.02 |
0.03 0.03 |
Net farm income ratio |
mean std1 |
(0.04) 0.13 |
0.08 0.11 |
0.01 0.12 |
0.10 0.10 |
0.14 0.09 |
0.06 0.12 |
0.11 0.09 |
| Repayment capacity | ||||||||
Cash flow coverage ratio |
mean std1 |
0.42 1.14 |
1.23 2.92 |
10.91 69.86 |
132.24 820.96 |
10.48 20.75 |
4.24 8.71 |
3.08 6.73 |
Term debt coverage ratio2 |
mean std1 |
0.00 0.00 |
0.00 0.00 |
18.41 68.81 |
19.88 64.46 |
32.36 41.70 |
9.93 38.44 |
10.66 33.57 |
Capital replacement margin3 |
mean std1 |
(153,399) 862,181 |
291,830 491,115 |
(121,642) 543,483 |
204,627 638,405 |
416,446 727,686 |
145,544 578,631 |
386,201 635,232 |
1Standard deviation. 2Term debt and capital lease coverage ratio. 3Capital replacement and term debt repayment margin.
|
||||||||
DBAP 1995-2001 Summary – Average and standard deviations of balance sheets by year.
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
|
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
|
Balance sheet (January 1) |
||||||||
Current assets / cow ($) |
mean std1 |
280 129 |
287 194 |
306 216 |
322 269 |
548 309 |
459 354 |
451 376 |
Total assets / cow ($) |
mean std1 |
3,352 2,090 |
3,902 1,743 |
3,788 2,125 |
3,914 2,374 |
3,910 1,921 |
4,555 2,637 |
4,535 2,267 |
Current liabilities/cow ($) |
mean std1 |
330 413 |
482 422 |
373 295 |
616 697 |
551 407 |
541 479 |
376 339 |
Total liabilities / cow |
mean std1 |
961 955 |
1,510 886 |
1,545 1,395 |
1,523 1,049 |
1,459 946 |
1,383 790 |
1,305 833 |
Equity / cow ($) |
mean std1 |
2,392 1,482 |
2,392 1,460 |
2,243 2,199 |
2,391 2,351 |
2,451 2,199 |
3,172 2,877 |
3,230 2,315 |
Balance sheet (December 31) |
||||||||
Current assets / cow ($) |
mean std1 |
261 129 |
388 219 |
278 219 |
464 304 |
633 341 |
418 252 |
541 421 |
Total assets / cow ($) |
mean std1 |
3,382 2,084 |
3,892 1,612 |
3,891 1,978 |
4,072 2,413 |
4,078 1,911 |
4,552 2,376 |
4,725 2,298 |
Current liabilities/cow ($) |
mean std1 |
282 398 |
304 393 |
313 318 |
353 310 |
291 335 |
419 317 |
394 285 |
Total liabilities / cow ($) |
mean std1 |
1,050 1,059 |
1,540 893 |
1,554 1,427 |
1,460 990 |
1,408 771 |
1,431 828 |
1,301 869 |
Equity / cow ($) |
mean std1 |
2,331 1,305 |
2,352 1,456 |
2,338 2,066 |
2,613 2,444 |
2,670 2,207 |
3,121 2,379 |
3,425 2,358 |
1Standard deviation.
|
||||||||
DBAP 1995-2001 Summary - Business size and production efficiency by average number of cows.
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
| Business size | |||||||
| Number of cows | |||||||
|
288 |
383 |
222 |
219 |
356 |
251 |
201 |
|
736 |
796 |
651 |
568 |
829 |
877 |
621 |
|
3,820 |
2,946 |
3,059 |
1,649 |
2,062 |
2,167 |
2,108 |
| Number of heifers | |||||||
|
126 |
170 |
107 |
109 |
238 |
149 |
118 |
|
355 |
505 |
358 |
320 |
443 |
432 |
309 |
|
2,141 |
1,526 |
1,758 |
850 |
1,123 |
1,316 |
1,002 |
| Milk sold (million lbs) | |||||||
|
3.67 |
6.33 |
3.41 |
3.28 |
6.31 |
3.51 |
3.26 |
|
12.42 |
13.00 |
11.33 |
10.27 |
15.33 |
17.21 |
11.04 |
|
60.51 |
45.90 |
50.62 |
29.46 |
39.04 |
42.02 |
38.35 |
| FTE workers | |||||||
|
5 |
8 |
6 |
5 |
7 |
5 |
5 |
|
16 |
15 |
13 |
11 |
18 |
18 |
13 |
|
71 |
56 |
52 |
32 |
40 |
38 |
37 |
| Acres of pasture + cultivated land | |||||||
|
206 |
179 |
233 |
197 |
345 |
196 |
180 |
|
581 |
559 |
426 |
316 |
482 |
305 |
304 |
|
3,169 |
1,838 |
1,849 |
654 |
728 |
933 |
827 |
| Production efficiency | |||||||
| Milk sold / cow (lbs) | |||||||
|
12,598 |
15,573 |
14,916 |
15,091 |
17,503 |
14,025 |
16,144 |
|
17,477 |
16,236 |
17,332 |
18,132 |
18,118 |
19,852 |
17,840 |
|
16,394 |
15,513 |
17,404 |
17,602 |
18,262 |
18,865 |
17,525 |
| Cows / FTE worker | |||||||
|
75.54 |
43.61 |
45.32 |
50.02 |
57.43 |
49.31 |
41.29 |
|
48.01 |
50.73 |
52.91 |
54.70 |
54.72 |
53.31 |
50.81 |
|
53.61 |
67.23 |
64.16 |
62.71 |
65.90 |
58.94 |
62.48 |
| Milk sold / FTE worker (million lbs) | |||||||
|
0.99 |
0.64 |
0.67 |
0.73 |
0.98 |
0.69 |
0.66 |
|
0.81 |
0.83 |
0.90 |
0.97 |
0.96 |
1.04 |
0.90 |
|
0.85 |
0.97 |
1.07 |
1.06 |
1.16 |
1.12 |
1.09 |
| Cull rate | |||||||
|
0.42 |
0.33 |
0.29 |
0.36 |
0.31 |
0.42 |
0.41 |
|
0.32 |
0.39 |
0.37 |
0.41 |
0.35 |
0.35 |
0.32 |
|
0.33 |
0.29 |
0.39 |
0.38 |
0.36 |
0.38 |
0.34 |
DBAP 1995-2001 Summary - Revenues by average number of cows.
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
| Revenues (per cwt) | |||||||
| Milk sold ($) | |||||||
|
15.52 |
18.16 |
16.07 |
18.16 |
17.29 |
16.78 |
17.71 |
|
14.90 |
18.14 |
16.76 |
17.97 |
17.79 |
16.32 |
18.15 |
|
15.49 |
18.86 |
17.21 |
18.94 |
18.31 |
17.07 |
18.87 |
| Raised, leased cow sales ($) | |||||||
|
1.10 |
1.03 |
0.78 |
0.43 |
0.69 |
1.16 |
0.50 |
|
0.86 |
1.25 |
0.48 |
0.42 |
0.53 |
0.36 |
0.83 |
|
0.73 |
0.98 |
0.75 |
0.57 |
0.36 |
0.39 |
0.36 |
| Heifer sales ($) | |||||||
|
0.15 |
0.31 |
0.25 |
0.26 |
0.11 |
0.66 |
0.24 |
|
0.17 |
0.20 |
0.28 |
0.09 |
0.06 |
0.16 |
0.22 |
|
0.17 |
0.27 |
0.04 |
0.09 |
0.47 |
0.45 |
0.41 |
| Gain on purchased livestock sales ($) | |||||||
|
0.00 |
(0.25) |
0.37 |
0.10 |
0.14 |
(0.04) |
0.23 |
|
0.00 |
0.00 |
(0.09) |
(0.15) |
(0.23) |
(0.04) |
(0.28) |
|
0.00 |
0.00 |
0.04 |
(0.29) |
(0.45) |
(0.06) |
(0.17) |
| Other revenues ($) | |||||||
|
0.84 |
0.74 |
0.76 |
0.74 |
0.94 |
0.94 |
1.66 |
|
0.87 |
0.77 |
0.09 |
0.57 |
0.52 |
0.26 |
0.74 |
|
0.19 |
0.27 |
0.39 |
0.32 |
0.76 |
0.38 |
0.54 |
| Total revenues ($) | |||||||
|
17.61 |
19.99 |
18.23 |
19.69 |
19.17 |
19.50 |
20.34 |
|
16.80 |
20.35 |
17.52 |
18.90 |
18.67 |
17.06 |
19.66 |
|
16.58 |
20.39 |
18.42 |
19.63 |
19.45 |
18.23 |
20.01 |
|
|||||||
DBAP 1995-2001 Summary - Costs by average number of cows.
Category |
1995 |
1996 |
1997 |
1998 |
1998 |
2000 |
2001 |
| Number of farms | 20 |
27 |
44 |
55 |
26 |
23 |
39 |
| Costs (per cwt) | |||||||
| Personnel ($) | |||||||
|
2.56 |
2.31 |
2.34 |
1.95 |
1.93 |
2.53 |
2.39 |
|
2.85 |
2.46 |
2.46 |
2.26 |
2.65 |
2.81 |
2.87 |
|
2.85 |
2.59 |
2.41 |
2.47 |
2.46 |
2.59 |
2.82 |
| Purchased feed ($) | |||||||
|
7.88 |
9.52 |
8.52 |
8.03 |
7.08 |
7.81 |
7.31 |
|
7.60 |
8.75 |
8.06 |
7.51 |
6.89 |
6.49 |
7.47 |
|
7.36 |
8.15 |
8.70 |
7.53 |
7.20 |
6.66 |
7.19 |
| Crops ($) | |||||||
|
0.16 |
0.25 |
0.30 |
0.32 |
0.35 |
0.42 |
0.90 |
|
0.33 |
0.36 |
0.28 |
0.27 |
0.39 |
0.20 |
0.32 |
|
0.19 |
0.34 |
0.26 |
0.37 |
0.16 |
0.22 |
0.21 |
| Machinery ($) | |||||||
|
0.73 |
0.83 |
0.94 |
0.85 |
0.93 |
1.07 |
1.27 |
|
0.84 |
1.19 |
0.82 |
0.82 |
0.95 |
0.74 |
0.80 |
|
0.73 |
0.63 |
0.70 |
0.84 |
0.74 |
0.81 |
0.94 |
| Livestock ($) | |||||||
|
1.83 |
2.11 |
2.35 |
1.39 |
1.23 |
1.67 |
1.48 |
|
1.82 |
2.08 |
2.00 |
1.59 |
1.98 |
1.75 |
1.69 |
|
2.39 |
2.56 |
2.62 |
1.69 |
1.27 |
1.64 |
1.75 |
| Milk marketing ($) | |||||||
|
1.35 |
0.99 |
1.14 |
1.24 |
0.97 |
1.31 |
1.06 |
|
1.15 |
0.95 |
1.06 |
0.93 |
1.06 |
0.96 |
1.07 |
|
1.15 |
1.00 |
1.00 |
1.11 |
1.10 |
1.07 |
1.01 |
| Buildings and land ($) | |||||||
|
0.49 |
0.40 |
0.62 |
0.66 |
0.93 |
0.98 |
0.59 |
|
0.50 |
0.51 |
0.49 |
0.61 |
0.41 |
0.44 |
0.71 |
|
0.36 |
0.59 |
0.49 |
0.69 |
0.56 |
0.53 |
0.60 |
| Interest ($) | |||||||
|
0.67 |
0.82 |
0.82 |
1.01 |
0.36 |
0.80 |
0.81 |
|
0.90 |
0.71 |
0.65 |
0.55 |
0.62 |
0.54 |
0.56 |
|
0.43 |
0.72 |
0.59 |
0.55 |
0.64 |
0.64 |
0.45 |
Depreciation: |
|||||||
| - Livestock ($) | |||||||
|
0.00 |
0.01 |
0.04 |
1.08 |
0.67 |
0.94 |
0.66 |
|
0.00 |
0.00 |
0.13 |
0.69 |
0.50 |
0.69 |
0.54 |
|
0.00 |
0.00 |
0.04 |
0.85 |
0.98 |
1.04 |
0.82 |
- Machinery ($) |
|||||||
|
0.78 |
0.54 |
0.39 |
0.64 |
0.37 |
0.60 |
0.64 |
|
0.43 |
0.58 |
0.36 |
0.35 |
0.38 |
0.46 |
0.45 |
|
0.25 |
0.39 |
0.31 |
0.35 |
0.35 |
0.27 |
0.41 |
- Buildings ($) |
|||||||
|
1.07 |
0.61 |
0.14 |
0.18 |
0.11 |
0.28 |
0.33 |
|
0.33 |
0.32 |
0.10 |
0.27 |
0.10 |
0.16 |
0.19 |
|
0.27 |
0.35 |
0.22 |
0.16 |
0.20 |
0.21 |
0.19 |
Other expenses ($) |
|||||||
|
1.02 |
0.58 |
0.98 |
1.10 |
0.97 |
0.69 |
1.03 |
|
0.83 |
0.72 |
0.72 |
0.74 |
0.56 |
0.69 |
0.87 |
|
0.71 |
0.64 |
0.58 |
0.69 |
0.72 |
0.86 |
0.86 |
Total expenses ($) |
|||||||
|
18.54 |
18.97 |
18.56 |
18.44 |
15.90 |
19.10 |
18.47 |
|
17.59 |
18.62 |
17.12 |
16.59 |
16.48 |
15.93 |
17.54 |
|
16.68 |
17.95 |
17.92 |
17.28 |
16.37 |
16.54 |
17.25 |
Net farm income from operations ($) |
|||||||
|
(0.94) |
1.02 |
(0.33) |
1.25 |
3.27 |
0.39 |
1.86 |
|
(0.79) |
1.73 |
0.39 |
2.31 |
2.19 |
1.12 |
2.11 |
|
(0.10) |
2.44 |
0.50 |
2.35 |
3.08 |
1.69 |
2.76 |
Gain on sale of capital assets ($) |
|||||||
|
1.36 |
0.48 |
2.73 |
0.09 |
0.04 |
0.23 |
0.02 |
|
0.63 |
0.29 |
0.32 |
0.08 |
0.10 |
(0.21) |
0.19 |
|
0.75 |
0.60 |
0.27 |
0.10 |
0.19 |
(0.09) |
0.23 |
Net farm income ($) |
|||||||
|
0.43 |
1.50 |
2.40 |
1.35 |
3.31 |
0.69 |
1.88 |
|
(0.16) |
2.02 |
0.71 |
2.39 |
2.29 |
0.99 |
2.31 |
|
0.66 |
3.04 |
0.77 |
2.45 |
3.27 |
1.64 |
2.99 |
|
|||||||
DBAP 1995-2001 Summary - Financial performance by average number of cows.
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
Liquidity |
|||||||
Current ratio |
|||||||
|
0.59 |
2.05 |
1.03 |
0.94 |
14.61 |
1.20 |
2.70 |
|
2.77 |
1.72 |
24.19 |
525.19 |
12.61 |
2.79 |
2.19 |
|
2.00 |
3.00 |
2.29 |
3.45 |
12.18 |
1.87 |
1.59 |
Working capital |
|||||||
|
(18,801) |
75,549 |
(14,434) |
(14,981) |
162,878 |
(42,456) |
31,707 |
|
94,364 |
51,275 |
(21,152) |
109,797 |
227,389 |
59,076 |
55,775 |
|
(970,060) |
(33,165) |
(248,772) |
329,884 |
566,984 |
(60,834) |
468,480 |
Solvency |
|||||||
Debt to asset ratio |
|||||||
|
0.33 |
0.38 |
0.49 |
0.49 |
0.30 |
0.36 |
0.32 |
|
0.16 |
0.46 |
0.36 |
0.37 |
0.41 |
0.33 |
0.34 |
|
0.23 |
0.45 |
0.46 |
0.36 |
0.52 |
0.40 |
0.29 |
Equity to asset ratio |
|||||||
|
0.67 |
0.62 |
0.51 |
0.51 |
0.70 |
0.64 |
0.68 |
|
0.84 |
0.54 |
0.64 |
0.63 |
0.59 |
0.67 |
0.66 |
|
0.77 |
0.55 |
0.54 |
0.64 |
0.48 |
0.60 |
0.71 |
Debt to equity ratio |
|||||||
|
0.89 |
0.67 |
0.75 |
1.41 |
1.64 |
0.72 |
0.67 |
|
0.24 |
(0.41) |
1.49 |
1.44 |
2.64 |
0.65 |
1.00 |
|
0.34 |
15.68 |
0.29 |
(31.84) |
1.37 |
0.89 |
0.49 |
Profitability |
|||||||
Rate of return on assets |
|||||||
|
(0.18) |
0.04 |
(0.03) |
0.02 |
0.11 |
0.03 |
0.03 |
|
0.03 |
0.17 |
0.08 |
0.12 |
0.12 |
0.06 |
0.10 |
|
0.02 |
0.15 |
0.05 |
0.22 |
0.24 |
0.11 |
0.15 |
Rate of return on equity |
|||||||
|
(0.22) |
0.01 |
(0.09) |
(6.10) |
(4.68) |
0.02 |
0.00 |
|
(0.03) |
0.72 |
(0.24) |
(0.09) |
0.06 |
0.06 |
0.10 |
|
(0.00) |
(0.45) |
0.07 |
0.81 |
0.56 |
0.12 |
0.22 |
Operating profit margin ratio |
|||||||
|
(0.15) |
0.03 |
(0.13) |
0.02 |
0.14 |
(0.04) |
0.02 |
|
(0.02) |
0.09 |
0.03 |
0.12 |
0.12 |
0.08 |
0.11 |
|
0.01 |
0.15 |
0.05 |
0.14 |
0.18 |
0.12 |
0.15 |
Financial efficiency |
|||||||
Asset turnover rate |
|||||||
|
0.99 |
0.94 |
0.87 |
0.87 |
0.81 |
0.86 |
0.67 |
|
1.16 |
1.00 |
1.14 |
1.03 |
1.05 |
0.90 |
0.95 |
|
1.11 |
1.06 |
0.96 |
1.51 |
1.22 |
0.92 |
1.06 |
Operating expense ratio |
|||||||
|
0.92 |
0.85 |
0.95 |
0.79 |
0.75 |
0.85 |
0.79 |
|
0.95 |
0.85 |
0.91 |
0.78 |
0.80 |
0.83 |
0.81 |
|
0.95 |
0.81 |
0.91 |
0.78 |
0.73 |
0.79 |
0.77
|
| Depreciation expense ratio | |||||||
|
0.10 |
0.06 |
0.03 |
0.10 |
0.06 |
0.10 |
0.08 |
|
0.04 |
0.04 |
0.03 |
0.07 |
0.05 |
0.08 |
0.06 |
|
0.03 |
0.04 |
0.03 |
0.07 |
0.08 |
0.08 |
0.07 |
Interest expense ratio |
|||||||
|
0.04 |
0.04 |
0.05 |
0.05 |
0.02 |
0.04 |
0.04 |
|
0.05 |
0.03 |
0.03 |
0.03 |
0.03 |
0.03 |
0.03 |
|
0.03 |
0.04 |
0.03 |
0.03 |
0.03 |
0.04 |
0.02 |
Net farm income ratio |
|||||||
|
(0.05) |
0.05 |
(0.03) |
0.06 |
0.17 |
0.01 |
0.09 |
|
(0.05) |
0.07 |
0.02 |
0.12 |
0.11 |
0.07 |
0.10 |
|
(0.01) |
0.12 |
0.02 |
0.12 |
0.16 |
0.09 |
0.13 |
Repayment capacity |
|||||||
Cash flow coverage ratio |
|||||||
|
0.22 |
1.37 |
(0.68) |
1.32 |
10.11 |
1.28 |
1.72 |
|
0.52 |
0.21 |
29.31 |
378.82 |
9.41 |
4.21 |
5.36 |
|
0.49 |
2.11 |
1.47 |
2.86 |
12.20 |
7.25 |
1.46 |
Term debt coverage ratio1 |
|||||||
|
0.00 |
0.00 |
0.46 |
32.32 |
2.87 |
0.85 |
2.46 |
|
0.00 |
0.00 |
1.76 |
3.41 |
61.85 |
2.48 |
5.19 |
|
0.00 |
0.00 |
93.18 |
17.58 |
0.00 |
28.59 |
18.60 |
Capital replacement margin2 |
|||||||
|
16,364 |
52,484 |
(61,337) |
(23,346) |
125,470 |
(19,886) |
20,007 |
|
13,162 |
130,659 |
(76,926) |
60,441 |
254,176 |
(9,977) |
216,808 |
|
(545,244) |
692,346 |
(233,052) |
584,796 |
910,258 |
485,276 |
921,788 |
1Term debt and capital lease coverage ratio. 2Capital replacement and term debt repayment margin.
|
|||||||
DBAP 1995-2001 Summary - Balance sheet by average number of cows.
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
| Balance sheet (January 1) | |||||||
Current assets / cow ($) |
|||||||
|
171 |
278 |
240 |
275 |
562 |
219 |
456 |
|
355 |
304 |
358 |
315 |
496 |
478 |
401 |
|
290 |
278 |
312 |
377 |
599 |
676 |
497 |
Total assets / cow ($) |
|||||||
|
2,970 |
4,072 |
4,077 |
4,477 |
4,792 |
5,414 |
5,904 |
|
3,706 |
4,447 |
3,808 |
3,701 |
3,923 |
4,312 |
4,152 |
|
3,263 |
3,187 |
3,475 |
3,576 |
3,013 |
4,009 |
3,548 |
Current liabilities / cow ($) |
|||||||
|
322 |
376 |
316 |
682 |
516 |
334 |
406 |
|
214 |
519 |
401 |
613 |
517 |
512 |
280 |
|
491 |
551 |
400 |
555 |
626 |
787 |
443 |
Total liabilities / cow ($) |
|||||||
|
1,290 |
1,598 |
1,946 |
1,759 |
1,372 |
1,384 |
1,552 |
|
773 |
1,584 |
1,236 |
1,471 |
1,325 |
1,184 |
1,170 |
|
881 |
1,349 |
1,496 |
1,341 |
1,714 |
1,639 |
1,193 |
Equity / cow ($) |
|||||||
|
1,680 |
2,474 |
2,131 |
2,718 |
3,419 |
4,030 |
4,351 |
|
2,932 |
2,863 |
2,571 |
2,230 |
2,598 |
3,129 |
2,983 |
|
2,383 |
1,838 |
1,979 |
2,234 |
1,299 |
2,370 |
2,356 |
Balance sheet (December 31) |
|||||||
| Current assets / cow ($) | |||||||
|
169 |
323 |
221 |
337 |
644 |
230 |
539 |
|
345 |
469 |
330 |
500 |
580 |
434 |
445 |
|
242 |
373 |
275 |
551 |
687 |
586 |
637 |
Total assets / cow ($) |
|||||||
|
3,035 |
3,879 |
4,191 |
4,612 |
4,866 |
5,560 |
6,198 |
|
3,677 |
4,508 |
3,947 |
3,902 |
4,031 |
4,256 |
4,264 |
|
3,335 |
3,289 |
3,528 |
3,713 |
3,348 |
3,925 |
3,715 |
Current liabilities / cow ($) |
|||||||
|
202 |
177 |
287 |
435 |
202 |
360 |
378 |
|
239 |
432 |
327 |
291 |
307 |
355 |
330 |
|
419 |
303 |
322 |
336 |
360 |
560 |
475 |
Total liabilities / cow ($) |
|||||||
|
1,326 |
1,515 |
1,995 |
1,775 |
1,079 |
1,623 |
1,570 |
|
906 |
1,764 |
1,188 |
1,319 |
1,444 |
1,250 |
1,216 |
|
967 |
1,342 |
1,530 |
1,293 |
1,692 |
1,472 |
1,117 |
Equity / cow ($) |
|||||||
|
1,708 |
2,364 |
2,196 |
2,837 |
3,787 |
3,937 |
4,628 |
|
2,771 |
2,744 |
2,759 |
2,582 |
2,588 |
3,006 |
3,048 |
|
2,368 |
1,947 |
1,998 |
2,420 |
1,656 |
2,452 |
2,598 |
DBAP 1995-2001 Summary - Business size and production efficiency by milk per cow (lbs/year).
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
| Business size | |||||||
Number of cows |
|||||||
|
673 |
1,817 |
1,887 |
585 |
912 |
444 |
625 |
|
2,413 |
870 |
838 |
871 |
659 |
1,273 |
920 |
|
1,199 |
1,438 |
1,179 |
964 |
1,718 |
1,465 |
1,385 |
Number of heifers |
|||||||
|
326 |
724 |
960 |
195 |
352 |
315 |
271 |
|
1,309 |
571 |
466 |
352 |
299 |
569 |
451 |
|
669 |
906 |
783 |
730 |
1,189 |
975 |
708 |
Milk sold (million lbs) |
|||||||
|
8.95 |
24.38 |
26.66 |
8.06 |
13.43 |
6.38 |
9.17 |
|
35.75 |
13.21 |
14.14 |
14.57 |
11.79 |
22.29 |
15.47 |
|
24.13 |
27.65 |
24.16 |
20.14 |
36.35 |
32.63 |
28.01 |
FTE workers |
|||||||
|
10 |
28 |
29 |
9 |
14 |
10 |
12 |
|
41 |
18 |
17 |
15 |
13 |
21 |
16 |
|
32 |
32 |
25 |
23 |
39 |
30 |
27 |
Acres of pasture + cultivated land |
|||||||
|
504 |
1,333 |
1,485 |
380 |
693 |
360 |
372 |
|
2,473 |
821 |
685 |
404 |
403 |
507 |
507 |
|
348 |
422 |
301 |
378 |
478 |
510 |
433 |
| Production efficiency | |||||||
Milk sold / cow (lbs) |
|||||||
|
12,291 |
12,864 |
13,112 |
13,225 |
14,522 |
13,778 |
14,358 |
|
15,288 |
15,318 |
16,679 |
16,712 |
17,826 |
17,554 |
16,897 |
|
19,620 |
19,141 |
19,954 |
20,968 |
21,608 |
22,068 |
20,254 |
Cows / FTE worker |
|||||||
|
66.38 |
72.08 |
62.76 |
63.16 |
71.39 |
48.70 |
46.13 |
|
63.78 |
47.66 |
51.33 |
59.40 |
58.64 |
63.24 |
54.67 |
|
41.74 |
44.28 |
48.52 |
44.61 |
47.04 |
46.79 |
53.79 |
Milk sold / FTE worker (million lbs) |
|||||||
|
0.84 |
0.91 |
0.84 |
0.83 |
1.03 |
0.67 |
0.65 |
|
0.97 |
0.73 |
0.85 |
0.99 |
1.04 |
1.11 |
0.92 |
|
0.80 |
0.84 |
0.96 |
0.93 |
1.02 |
1.05 |
1.07 |
Cull rate |
|||||||
|
0.42 |
0.32 |
0.35 |
0.36 |
0.31 |
0.39 |
0.34 |
|
0.29 |
0.38 |
0.39 |
0.40 |
0.37 |
0.40 |
0.41 |
|
0.37 |
0.31 |
0.31 |
0.38 |
0.33 |
0.34 |
0.33 |
DBAP 1995-2001 Summary - Revenues by milk per cow (lbs/year).
Category |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
Number of farms |
20 |
27 |
44 |
55 |
26 |
23 |
39 |
Revenues (per cwt) |
|||||||
Milk sold ($) |
|||||||
|
15.49 |
18.79 |
16.81 |
18.68 |
18.11 |
16.90 |
18.18 |
|
15.35 |
18.00 |
16.65 |
18.41 |
17.31 |
16.83 |
18.19 |
|
14.93 |
18.36 |
|||||