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)[email protected] 716-652-5400 ext 150
Sandy Buxton Eastern/Northern NY (Washington County)
[email protected] 518-746-2560
Ginny Carlberg Western NY (Chautauqua County)
[email protected] 716-664-9502 ext 202
Alison De Marree Lake Ontario Region (Wayne County)
[email protected] 315-573-8881
Stephanie Mehlenbacher
Finger Lakes Region (Steuben County)
[email protected] 607-664-2300
Dan Welch Central NY (Onondaga County)
[email protected] 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? [email protected] (Dan Welch)
[email protected] (Brad Rickard)
Recommended
