BERRY FARM BUSINESS SUMMARY2014 REGIONAL WORKSHOP

DAN WELCHBRAD RICKARDPERCY FANGCHARLES H. DYSON SCHOOL OF APPLIED ECONOMICS AND MANAGEMENTJANUARY 31, 2014

OTHER STATESUC Davis and University of California Cooperative of Extension: Sample Costs to Establish and Produce BerriesPenn State: Enterprise Budgets in Mid-Atlantic Berry GuideNorth Carolina State: Blackberry Budget Program 2011

OVERVIEW OF BFBS PROCESSCCE educators and regional specialists worked with 8 farms to collect the data6 of the farms were smaller-scale, 2 farms grew berries in addition to tree fruitUsing the Fruit Farm Business Summary as a guide, created data tables of summary information, and specific areasBFBS gives a whole-farm picture, next step is to develop enterprise budgets for each crop

• T1 to T4 Balance Sheet Information• T5 to T12 Income Statement Information• T13 to T19 Cash Flow Information• T20 to 23 Efficiency Analysis• T24 to T27 Farm Descriptive Statistics• Next I will show some of the preliminary summarized

information from the current farms in the BFBS• Four considerations:1. There are only data from 8 farms so far2. Two of the 8 farms are much larger than the other 63. Where possible, we make comparisons to FFBS4. Enterprise budgets will tell us more about specific berries

THE 27 TABLES IN THE FFBS/BFBS

FARM BALANCE SHEET (TABLE 1)Year

Farm Assets End

Current Assets

Farm cash, checking & savings 1,161

Accounts receivable 963

Prdtn, pckng supplies & prepaid exp 2,917

Fruit & other crops in inventory 0

Cash Value Life Insurance on Corp Officrs 7,143

Total current assets $12,184

Intermediate assets

Equipment owned 50,042

Other Stock & Investments 175

Total intermediate assets $50,217

Year

Farm Liabilities End

Current Liabilities

Accounts Payable 0

Operating Line 1 2,333

Current Portion: Int & Long Term Debt 0

Total Current Liabilities $2,333

Intermediate Liabilities  

Restructured Operating Debt 0

Equip Loan #1 (JD,CNH, Kubota) 0

Equip Loan #2 0

Capital Line #2 5,333

Total Intermediate Liabilities $5,333

FARM BALANCE SHEET (TABLE 1)Year

Long term assets End

Land & buildings: 51,333

Owned 0

Structures leased 0

Leasehold Improvements 0

Other: 0

Total long term assets $51,333

Total farm assets

Intermediate assets

Equipment owned 50,042

Other Stock & Investments 175

Total intermediate assets $50,217

Year

Farm Liabilities End

Current Liabilities

Accounts Payable 0

Operating Line 1 2,333

Current Portion: Int & Long Term Debt 0

Total Current Liabilities $2,333

Intermediate Liabilities  

Restructured Operating Debt 0

Equip Loan #1 (JD,CNH, Kubota) 0

Equip Loan #2 0

Capital Line #2 5,333

Total Intermediate Liabilities $5,333

LAND RESOURCES (TABLE 24)

Land Class8 Farm

Average 6 Farm

AverageFFBS

(25 Farms)Bearing fruit acres 45.60 5.93 200.00Non-bearing fruits acres 7.80 0.00 30.50Total fruit acres 53.40 5.93 230.50Other annual crops 7.76 10.35 0.00Other perennial crops 1.25 1.67 17.50Open land 25.19 19.08 10.00Non-tillable acres 7.25 1.17 88.90Total acres cropped 62.41 17.95 248.00Total land operated 94.85 38.20 347.40Rented land included above 0.00 0.00 72.50

BERRY CROP PRODUCTION (TABLE 24)No. of farms

Average Acres

Average Production (lbs)

Percent of Total Berries

8 FarmsStrawberries 3 5.57 51,194.00 60.96%Blueberries 8 3.93 17,991.75 21.43%Brambles 3 1.68 11,438.67 13.62%Ribes 2 0.45 235.50 0.28%Other berries 1 1.75 3,114.00 3.71%6 FarmsStrawberries 1 5.50 23,472.00 56.12%Blueberries 6 4.47 9,955.17 23.80%Brambles 1 1.25 5,280.00 12.63%Ribes 1 0.30 0.00 0.00%Other berries 1 1.75 3,114.00 7.45%

SIZE OF BUSINESS AND YIELDS (TABLE 27)

Size of Business 8 Farms 6 FarmsFFBS

(25 farms)

All fruit acres (including non-bearing) 53.40 5.93 231.00

Bearing Fruit acres 45.60 5.93 200.00

Average berry production (lbs) 41,927.13 15,266.17 144,130 bu

Worker equivalent 8.02 2.12 13.63

Rates of Production (lbs/acre)Strawberries, pounds per bearing acre 7,441.02 4,267.64

Blueberries, pounds per bearing acre 4,297.21 1,985.05

Brambles, pounds per bearing acre 6,159.56 4,224.00

Ribes, pounds per bearing acre 785.00

LABOR EFFICIENCY AND COSTS (TABLE 27)

Labor Efficiency 8 Farms 6 FarmsFFBS

(25 farms)

Bearing fruit acres per worker 4.48 3.44 14.71

All fruits acres per worker 4.69 3.44 16.95

Accural Receipts per worker $34,825.58 $17,842.80 $96,969.00

Cost Control-Accrual

Costs per bearing fruit acre

All labor including operator $2,895.16 $2,136.24 $1,812.00

Harvest labor $1,375.03 $740.00

All equipment $1,158.02 $1,081.12 $871.00

Spray $363.64 $204.26 $508.00

CAPITAL EFFICIENCY AND PROFITS (TABLE 27)

Capital Efficiency 8 Farms 6 FarmsFFBS

(25 farms)Total farm capital per bearing acre $23,149.74 $32,615.17 $10,814.00Total farm capital per fruit acre $22,159.07 $32,615.17 $9,404.00Capital Turnover Ratio (sales/equity) 2.37 3.43 0.61ProfitabilityNet farm income w/o appreciation $210,302.70 $11,677.10 $436,213.00Labor and mgmt income/operator $68,965.54 $2,466.48 $212,333.00Rate of return on: Equity capital with appreciation 12% -15% 23%

All capital with appreciation 7% -15% 18%

Farm net worth $936,829 $318,200 $1,721,188Debt to asset ratio 0.11 0.08 0.26

FOR MORE INFORMATION, AND TO JOIN THE BFBS, CONTACTEducator Region (home base) ContactSharon Bachman Western NY (Erie

County)sin2@cornell.edu 716-652-5400 ext 150

Sandy Buxton Eastern/Northern NY (Washington County)

sab22@cornell.edu 518-746-2560

Ginny Carlberg Western NY (Chautauqua County)

vec22@cornell.edu 716-664-9502 ext 202

Alison De Marree Lake Ontario Region (Wayne County)

amd15@cornell.edu 315-573-8881

Stephanie Mehlenbacher

Finger Lakes Region (Steuben County)

sms64@cornell.edu 607-664-2300

Dan Welch Central NY (Onondaga County)

dlw56@cornell.edu 607-255-7103

RESEARCH FUNDED BY THE NYFVI PROJECT #AIC 12-001“BUILDING A BETTER BOTTOM LINE FOR

NYS BERRY GROWERS”

Thanks for Listening!

Questions? Suggestions?dlw56@cornell.edu (Dan Welch)

bjr83@cornell.edu (Brad Rickard)