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2003 Michigan Dairy Farm Business Analysis Summary Eric Wittenberg And Christopher Wolf Staff Paper 04-19

November, 2004

Department of Agricultural Economics MICHIGAN STATE UNIVERSITY East Lansing, Michigan 48824 MSU is an Affirmative Action/Equal Opportunity Institution

2003 Michigan Dairy Farm Business Analysis Summary

Staff Paper No. 04-19 November 2004 by Eric Wittenberg and Christopher Wolf

Copyright (c) 2004 by Eric Wittenberg and Christopher Wolf. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.

2003 Michigan Dairy Farm Business Analysis Summary by Eric Wittenberg and Christopher Wolf1 Table of Contents

Page

Executive Summary…………………………………………………

2

List of Tables Summary Tables 1. Average 2003 Farm Characteristics……………….… 2. Average Income Statement…………………………… 3. Average Profitability Indicators……………………… 4. Average Income and Expenses--all herds……………… 5. Average Income and Expenses--herds with that item… 6. Characteristics by Herd Size……………………… 7. Income Statement by Herd Size……………………… 8. Profitability Indicators by Herd Size………………

2 2 3 4 5 6 6 7

A) Averages of 141 Dairy farms, All Sizes 9. Livestock and Crop Production Summary………. 10. Farm Income Statement…………………………. 11. Inventory Changes………………………….… 12. Depreciation and Other Capital Adjustment……. 13. Profitability Measures…………………………… 14. Liquidity Measures……………………………… 15. Balance Sheet at Cost Values…………………… 16. Balance sheet at Market Values………………… 17. Statement of Cash Flows……………………… 18. Financial Standards Measures………………… 19. Operator Information and Nonfarm Summary... 20. Financial Summary……………………………

8 9 11 12 13 14 15 16 17 18 19 20

B) Average of 40 Dairy Farms, 22 to 99 Cows…………… Similar tables as previous summary, Tables 21 to 32

21

C) Average of 66 Dairy Farms, 100 to 249 Cows………… Similar tables as previous summary, Tables 33 to 44

34

D) Average of 35 Dairy Farms, 250 to 2200 Cows………. Similar tables as previous summary, Tables 45 to 56

47

1

Co-workers in the TelFarm project were: R. Betz, L. Borton, B. Battel, W. Schauer, D. Stein, and V. Varner with the assistance of Michigan State University Extension Agents. AgriSolutions co-workers were Kelly Tobin, Steve Eshelman, Janice Raymond, Tiffany Aldrich, Anne Gerke, Kathleen Spranger, Sonya Pentecost, and Lynette Wood. Farm Credit Services of Wisconsin co-worker was Steve Zimmerman.

1

Executive Summary This report summarizes the financial and production records of 141 dairy farms from throughout Michigan. To be included, the farms must have produced at least 50 percent of gross cash farm income from milk and dairy animal sales. The farms in this report were located throughout Michigan. The records came from Michigan State University’s Telfarm/MicroTel project, the Farm Credit Service system, or by AgriSolutions in Michigan. The values were pooled into averages for reporting purposes. The farms are larger than would be the average of all dairy farms in Michigan. Farm records checked for accuracy. While considerable variation in the data exist, average values are reported in the summary tables and discussion that follows. In 2003, the average dairy farm in the business analysis had 196 cows producing an average of 20,638 pounds of milk per cow (Table 1). Milk price, based on gross income, averaged $12.59/cwt. Table 1. Average 2003 Michigan Dairy Farm Characteristics Average number of cows Milk sold per cow (pounds) Average price of milk sold ($/cwt) Total acres owned Total crop acres

196 20,638 12.59 452 761

Net farm income is the return to operator unpaid management, labor and capital invested. Net farm income in 2003 averaged $57,519. This average somewhat obscures a very large range of net farm income values. For example, the farms in the top 25 percent of the net farm income distribution averaged $119,553 while those in the bottom 25 percent had -$18,545. The 2003 average is more in line with the 2000 and 2001 values. Gross cash farm income averaged $695,048 in 2003. The largest component of these revenues were milk sales which averaged $543,847. Average total cash expenses and average cash farm income were essentially the same as 2002. One improvement over 2002 was the positive inventory changed which was over $20,000 higher in 2003. Table 2. Average 2003 Michigan Dairy Farm Income Statement 2003 ($) Gross cash farm income 695,048 Total cash expense 584,107 Net cash farm income 110,941 Inventory change* 2,197 Depreciation and capital adjustments* -55,619 Net farm income 57,519 *Changes calculated as ending value minus beginning value.

2

To put the profit values in perspective, we calculate profitability ratios. Rate of return on assets (ROA) is the farm operating profit (equal to net farm income plus interest expense less value of operator labor and management) divided by average total farm asset value (valued at current market value). Rate of return on assets is a measure of how much profit the farm business assets generated. The average 2003 dairy farm ROA (Market) was 4.3 percent which was improved over 2002 but still far below 2000 and 2001. Return on equity tells a similar story. Operating profit margin is the operating profit (as defined in ROA above) divided by gross revenues. Operating profit margin measures the dollars of profit generated per dollar of revenue. In 2003, Michigan dairy farms generated 14.9 cents of profit per dollar of revenue. Asset turnover is the gross farm revenues divided by average asset value. Asset turnover measures the efficiency with which farm assets generate revenue. This value declined slightly in 2003 to an average of 29 percent.

Table 3. Average Michigan Dairy Farm Profitability Indicators, 2000-2003 2000 2001 2002 2003 (percent) Rate of return on assets* 7.1 7.6 3.2 4.3 Rate of return on equity 7.1 8.1 2.1 4.1 Operating profit margin 21.4 22.3 11.0 14.9 Asset turnover rate* 33.3 33.9 29.3 29.0 * Assets valued at market value (rather than cost). Tables 4 and 5 display average income and expenses per hundredweight (cwt.) of milk and per cow. Income and expenses were adjusted to an accrual basis where detailed financial information was provided. Average, accrual adjusted income and expenses per cropped acre are also included. Income items related to the dairy herd are included in the first section. Government payments includes all farm government payments—not just those related to the dairy herd. It was not possible to separate crop payments from dairy payments. Given the low milk prices in 2003, a large portion of government payments were likely in the form of the Milk Income Loss Contract (MILC). Table 4 contains the average income and expense items across all 141 dairy farms in the 2003 summary while Table 5 displays the average income and expense items for farms that reported that item. For example, all farms had milk income so that income is identical in the tables. In contrast, only some farms reported BST expense so that item is larger when averaged only across those farms with that expense. By reporting the income and expense items averaged two ways in the tables, it allows for comparison of individual items with farms that had that item. These tables should not be interpreted as an estimate of the true cost of producing milk. All farm sales are not included in the income items—only those that are related to the milking herd. Also, unpaid factors, including labor, management and capital, are not accounted for in the expense items. In addition, the allocation of resources amongst farm enterprises is not accurately reflected leaving the milking herd as the residual claimant on all expenses (especially labor costs). The bottom of Tables 4 and 5 presents crop related expenses divided by the total cropped acres. To accurately calculate a crop cost of production requires labor and management (among other) expenses that were not separated out in the financial records.

3

Table 4. Average income and expenses across all farms*, 2003 Income Items: Per cwt. Milk $12.59 Cull Cows and Calves $0.88 Dairy Steers $0.42 Dairy Heifers $0.13 Government Payments $1.51 Patronage Dividends, cash $0.16 Crop Sales $1.64 Other Cash Income $0.55 Expense Items: Purchased Feeds Breeding Fees Veterinary BST Livestock Supplies DHIA Milk & Livestock Mkt. & Trucking Interest Fuel and Oil Repairs Custom Hire Hired Labor Leases Real Estate Taxes Farm Insurance Utilities Dues, Professional Fees Miscellaneous Machinery Depreciation Building Depreciation

Per cwt. $3.54 $ 0.11 $0.41 $0.03 $0.89 $0.02 $0.74 $0.88 $0.54 $1.06 $0.41 $2.14 $0.21 $0.29 $0.35 $0.44 $0.16 $0.31 $1.29 $0.47

Per Cow $2,591.48 $167.27 $76.21 $24.06 $281.48 $31.14 $284.25 $97.23 Per Cow $724.75 $24.95 $88.39 $6.30 $171.85 $3.92 $148.05 $160.15 $101.11 $202.00 $88.21 $450.17 $41.57 $52.28 $66.20 $83.62 $29.23 $61.99 $243.92 $95.60

Expense Items per Cropped Acre: Per Acre Seed $18.86 Fertilizer $23.37 Crop Chemicals $16.17 Crop Insurance $0.63 Crop Miscellaneous $2.35 Land Rent $29.81 * All income and expense items averaged across all 141 farms whether they had this income or expense item or not. Other cash income includes custom work, insurance claims, and miscellaneous income.

4

Table 5. Average income and expenses across farms with that item*, 2003 Income Items: Per cwt. Per Cow Milk $12.59 $2,591.48 Cull Cows and Calves $0.89 $170.78 Dairy Steers $0.85 $152.41 Dairy Heifers $0.51 $94.93 Government Payments $1.53 $283.42 Patronage Dividends, cash $0.22 $43.72 Crop Sales $3.29 $574.89 Other Cash Income $1.25 $214.84 Expense Items: Purchased Feeds Breeding Fees Veterinary BST Livestock Supplies DHIA Milk & Livestock Mkt. & Trucking Interest Fuel and Oil Repairs Custom Hire Hired Labor Leases Real Estate Taxes Farm Insurance Utilities Dues, Professional Fees Miscellaneous Machinery Depreciation Building Depreciation

Per cwt. $3.56 $0.14 $0.42 $0.32 $0.89 $0.11 $0.75 $0.92 $0.54 $1.06 $0.46 $2.33 $0.39 $0.34 $0.35 $0.44 $0.16 $0.65 $1.29 $0.50

Per Cow $729.75 $31.41 $90.89 $70.76 $170.25 $21.18 $149.02 $167.01 $101.11 $202.00 $97.57 $490.48 $77.81 $61.06 $66.20 $83.62 $29.64 $127.39 $243.92 $101.14

Expense Items per Cropped Acre: Per Acre Seed $20.18 Fertilizer $25.08 Crop Chemicals $18.16 Crop Insurance $1.99 Crop Miscellaneous $4.90 Land Rent $33.48 * Income and expense items averaged only across farms with that item. For example, all dairy farms had milk income but only some reported BST expense. Thus, milk income is the same as in Table 4 while BST is $0.32/cwt across farms with that expense compared to $0.03/cwt across all farms.

5

Results by Herd Size To further facilitate financial comparisons and benchmarking, the financial summaries were divided into herd size categories. The smallest size category, 22 to 99 cows, includes 40 herds. The medium size category, 100 to 249 cows, includes 66 herds. The largest size category, 250 or more cows, contains the remaining 35 herds. Table 6 displays some average characteristics by herd size category. As expected, average milk production per cow is correlated with herd size across the size categories. Milk price is slightly higher for the medium and large herds. The smallest herds operated 6.7 crop acres per cow; the medium herds about 4.3 acres/cow; and the largest category about 3.2 acres/cow. Table 6. Average 2003 Michigan Dairy Farm Characteristics by Herd Size Category 22-99 100-249 250+ cows cows cows Average number of cows 69 158 423 Milk sold per cow (pounds) 18,145 20,774 23,444 Average price of milk sold ($/cwt) 12.49 12.63 12.67 Total acres owned 322 389 731 Total crop acres 461 675 1,335 Number of farms 40 66 35

Table 7 is the average farm income statement by herd size. Net farm income represents the returns to unpaid factors (e.g., labor). The smallest farms returned $17,185; the medium farms $56,947; and the largest farms $104,692.

Table 7. Average 2003 Michigan Dairy Farm Income Statement by Herd Size 22-99 100-249 250+ cows cows cows ($) ($) ($) Gross cash farm income 251,260 545,723 1,483,818 Total cash expense 207,341 447,231 1,272,805 Net cash farm income 43,918 98,492 211,013 Inventory change * -6,206 -1,841 12,473 Depreciation and capital adjustments* -20,527 -43,386 -118,793 Net farm income 17,185 56,947 104,692 *Changes calculated as ending value minus beginning value.

6

Table 8 compares profitability measures across herd size with assets valued at market value. ROA was highest on the largest farms in 2003. The largest farms realized the largest average operating profit margin and also the largest average asset turnover rate.

Table 8. Average Michigan Dairy Farm Profitability Indicators by Herd Size 22-99 100-249 250+ cows cows cows (percent) Rate of return on assets* 1.4 4.0 5.6 Rate of return on equity 0.1 3.8 5.8 Operating profit margin 7.9 13.9 16.9 Asset turnover rate* 17.8 28.9 32.8 * Assets valued at market value (rather than cost).

7

A. Financial Summary Information, All 141 Farms

Table 9

Crop Production and Marketing Summary Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141 196 20638 $12.59

36 151 18596 $12.54

31 213 20923 $12.89

452 771 403 391 3 4

350 647 246 364 4

427 949 535 570 3 4

5.85 3.24 2.17 46.72 14.70 22.73 30.29

5.72 3.30 -

5.64 3.59 2.30 -

Dairy Number of farms Average number of Cows Milk Production per Cow, lbs. Average milk price per cwt., Acreage Summary Total acres owned Total crop acres Crop acres owned Crop acres cash rented Crop acres share rented Total pasture acres Average Price Received (Cash Sales Only) Soybeans per bushel Wheat, Winter per bushel Corn per bushel Hay, Alfalfa per ton Hay, Mixed per ton Straw per ton Haylage, Mixed per ton

8

Table 10

Farm Income Statement Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141

36

31

227 42 8,273 1,020 331 988 119 728 159 18,609 870 101 2,926 5,449 101 496 543,847 4,957 1,938 376 6,496 27,885 3,652 1,552 39,328 3,255 7,081 4,932 477 979 7,852 695,048

4,425 110 654 885 9,885 116 4,189 103 362,439 3,088 752 393 5,198 16,761 1,451 642 34,607 259 5,136 1,017 5,704 457,813

1,031 189 17,529 3,392 583 2,083 332 1,993 35,808 3,958 289 12,674 10,261 22 614,945 5,577 4,651 779 9,545 28,865 4,309 1,195 45,802 5,231 9,835 16,499 2,170 9,354 848,899

Number of farms Cash Farm Income Beans, Navy Celery Corn Corn Silage Hay, Alfalfa Hay, Mixed Haylage, Alfalfa Haylage, Mixed Oats Soybeans Speltz Straw Sugar Beets Wheat, Winter Miscellaneous crop income Beef, Finish Beef Calves Dairy, Milk Dairy, Dairy Calves Dairy Heifers (for sale) Dairy Replacement Heifers Dairy Steers Cull breeding livestock Misc. livestock income Direct & CC govt payments Other government payments Custom work income Patronage dividends, cash Insurance income Cash from hedging accts Contract livestock income Other farm income Gross Cash Farm Income

9

Table 10,(continued)

Farm Income Statement Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141

36

31

Cash Farm Expense Seed Fertilizer Crop chemicals Crop insurance Drying fuel Irrigation energy Crop custom hire Crop miscellaneous Feeder livestock purchase Purchased feed Breeding fees Veterinary BST Livestock supplies DHIA Livestock leases Livestock utilities Livestock hauling and trucking Marketing Bedding Livestock miscellaneous Interest Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Machinery & bldg leases Real estate taxes Personal property taxes Farm insurance Utilities Hauling and trucking Dues & professional fees Hedging account deposits Miscellaneous Total cash expense Net cash farm income

14,731 17,722 11,446 727 308 108 1,710 1,351 2,497 151,643 5,470 20,095 1,382 28,227 517 511 107 6,688 20,063 593 77 30,011 878 17,697 36,463 20,934 106,357 24,607 7,314 7,849 331 11,021 15,180 550 4,599 378 13,968 584,107 110,941

7,555 11,470 8,073 472 350 262 1,931 795 17 121,148 3,348 13,814 1,362 19,388 596 1,178 168 5,144 15,302 125 23,649 58 12,774 25,537 13,464 66,745 15,414 5,324 6,226 118 7,992 10,812 3,845 9,358 413,813 44,000

20,994 22,226 15,567 1,722 367 5 2,187 1,051 1,358 170,909 5,830 22,285 1,041 31,397 662 616 9,263 18,590 597 159 31,854 2,261 21,615 46,058 22,801 119,303 39,149 13,086 8,545 458 10,514 16,886 1,986 4,519 1,746 8,624 676,229 172,669

Inventory Changes Crops and feed Market livestock Accounts receivable Prepaid expenses and supplies Accounts payable Total inventory change Net operating profit

2,687 118 2,123 -607 -2,125 2,197 113,138

-11,906 -421 1,161 976 -8,907 -19,097 24,903

7,639 665 -4,672 3,611 -1,559 5,684 178,354

Depreciation and Other Capital Adjustments Breeding livestock 8,586 Machinery and equipment -43,385 Buildings and improvements -22,358 Other farm capital 1,537 Total depr. and other capital adj -55,619

-6,183 -28,280 -9,810 825 -43,448

19,384 -48,400 -30,851 1,066 -58,801

Net farm income

-18,545

119,553

Number of farms

57,519

10

Table 11

Inventory Changes Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141

35

36

Net cash farm income

110,941

43,305

167,329

Crops and Feed Ending inventory Beginning inventory Inventory change

138,926 136,239 2,687

82,197 94,643 -12,446

169,485 160,786 8,699

Market Livestock Ending inventory Beginning inventory Inventory change

11,713 11,594 118

7,463 8,016 -554

19,156 18,304 852

Accts Receivable & Other Current Assets Ending inventory Beginning inventory Inventory change

36,946 34,823 2,123

24,939 23,617 1,322

49,826 54,331 -4,505

Prepaid Expenses and Supplies Ending inventory Beginning inventory Inventory change

20,696 21,303 -607

4,451 3,447 1,004

23,539 21,245 2,294

Accounts Payable & Accrued Expenses Beginning inventory Ending inventory Inventory change

17,977 20,101 -2,125

15,259 23,457 -8,198

11,090 11,517 -428

2,197

-18,873

6,913

113,138

24,432

174,242

Number of farms

Total inventory change Net operating profit

11

Table 12

Depreciation and Other Capital Adjustments Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141

35

36

Net operating profit

113,138

24,432

174,242

Breeding Livestock Ending inventory Capital sales Beginning inventory Capital purchases Depreciation, capital adjust.

416,914 7,263 395,635 19,955 8,586

285,559 7,439 289,392 9,026 -5,421

440,555 4,045 412,659 14,614 17,328

Machinery and Equipment Ending inventory Capital sales Beginning inventory Capital purchases Depreciation, capital adjust.

147,789 2,098 153,470 39,802 -43,385

105,754 257 106,766 26,797 -27,552

196,052 2,547 199,312 48,197 -48,910

Buildings and Improvements Ending inventory Capital sales Beginning inventory Capital purchases Depreciation, capital adjust.

157,351 1,333 159,614 21,427 -22,358

100,823 92,920 17,878 -9,975

199,748 204,273 25,365 -29,890

Other Capital Assets Ending inventory Capital sales Beginning inventory Capital purchases Depreciation, capital adjust.

43,422 8,324 40,756 9,453 1,537

21,354 5,427 23,192 2,840 748

37,402 3,553 34,024 5,510 1,421

Total depreciation, capital adj.

-55,619

-42,200

-60,050

57,519

-17,768

114,192

Number of farms

Net farm income

12

Table 13

Profitability Measures Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141

35

36

57,519 21,455 2.6 % 0.2 % 5.6 % 46.1 %

-17,768 -37,786 -6.0 % -21.8 % -15.0 % 39.9 %

114,192 71,925 7.1 % 9.3 % 14.2 % 49.7 %

36,064 30,074 56,362 31,230 1,202,537 1,156 592,966 554,424

20,018 23,715 53,425 -47,477 795,064 -71,192 326,181 317,300

42,267 31,434 49,071 96,555 1,368,445 65,120 703,476 680,439

Avg. Of All Farms

Low 25%

High 25%

141

35

36

Profitability (assets valued at market) Net farm income 108,945 Labor and management earnings 31,123 Rate of return on assets 4.3 % Rate of return on equity 4.1 % Operating profit margin 14.9 % Asset turnover rate 29.0 %

-14,823 -66,024 -3.3 % -8.0 % -14.0 % 23.9 %

221,461 144,098 10.4 % 13.4 % 30.0 % 34.8 %

51,201 23,715 53,425 -44,533 1,329,502 -68,248 853,343 317,300

77,363 31,434 49,071 203,824 1,954,355 172,390 1,289,386 680,439

Number of farms Profitability (assets valued at cost) Net farm income Labor and management earnings Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate Interest on farm net worth Farm interest expense Value of operator lbr and mgmt. Return on farm assets Average farm assets Return on farm equity Average farm equity Value of farm production

Number of farms

Interest on farm net worth Farm interest expense Value of operator lbr and mgmt. Return on farm assets Average farm assets Return on farm equity Average farm equity Value of farm production

77,822 30,074 56,362 82,656 1,915,091 52,582 1,297,036 554,424

13

Table 14

Liquidity Measures Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141

35

36

110,941 9,808 56,120 16,004 48,625 194,543

43,305 7,947 33,363 13,819 4,070 126,131

167,329 8,654 59,909 11,644 104,430 250,528

4.0 84 % 4 %

31.0 90 % 5 %

2.4 80 % 4 %

699,976 586,838 113,138 9,808 56,120 16,004 50,822 194,543

443,842 419,410 24,432 7,947 33,363 13,819 -14,803 126,131

834,546 660,305 174,242 8,654 59,909 11,644 111,343 250,528

3.8 84 % 4 %

** 94 % 5 %

2.3 79 % 4 %

Number of farms Liquidity (cash) Net cash farm income Net nonfarm income Family living and taxes Real estate principal payments Cash available for interm. debt Average intermediate debt Years to turnover interm. debt Expense as a % of income Interest as a % of income Liquidity (accrual) Total accrual farm income Total accrual operating expense Net accrual operating income Net nonfarm income Family living and taxes Real estate principal payments Available for intermediate debt Average intermediate debt Years to turnover interm. debt Expense as a % of income Interest as a % of income

** Income insufficient to meet debt servicing requirements

14

Table 15

Balance Sheet at Cost Values Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Number of farms

Low 25%

141 Beginning

High 25%

35 Ending Beginning

36 Ending Beginning

Ending

Assets Current Farm Assets Cash and checking balance Prepaid expenses & supplies Growing crops Accounts receivable Hedging accounts Crops held for sale or feed Crops under government loan Market livestock held for sale Other current assets Total current farm assets

19,989 21,303 8,112 24,267 449 136,239 0 11,594 1,995 223,949

20,535 20,696 8,947 27,151 473 138,715 212 11,713 375 228,817

19,831 3,447 9,806 13,562 0 94,643 0 8,016 249 149,554

16,282 4,451 9,411 15,392 0 82,197 0 7,463 135 135,331

21,652 21,245 8,658 37,549 1,529 160,786 0 18,304 6,595 276,317

29,510 23,539 8,668 39,322 1,836 168,655 830 19,156 0 291,516

Intermediate Farm Assets Breeding livestock Machinery and equipment Titled vehicles Other intermediate assets Total intermediate farm assets

395,635 153,227 244 31,058 580,163

416,914 147,338 452 30,177 594,879

289,392 106,603 163 17,379 413,537

285,559 105,458 296 14,940 406,253

412,659 198,769 543 29,505 641,476

440,555 194,857 1,195 32,074 668,681

Long Term Farm Assets Farm land Buildings and improvements Other long-term assets Total long-term farm assets Total Farm Assets

212,390 224,968 159,614 157,351 9,698 13,246 381,702 395,564 1,185,814 1,219,260

134,364 92,920 5,813 233,097 796,189

145,119 212,370 232,662 100,823 204,273 199,748 6,414 4,519 5,328 252,356 421,161 437,739 793,940 1,338,955 1,397,936

Total Nonfarm Assets Total Assets

72,879 80,871 1,258,693 1,300,131

36,038 832,227

39,419 95,567 106,678 833,358 1,434,521 1,504,614

Liabilities Current Farm Liabilities Accrued interest Accounts payable Current notes Government crop loans Principal due on term debt Total current farm liabilities

719 17,257 70,368 0 51,859 140,204

782 19,319 71,780 212 61,857 153,950

730 14,529 60,063 0 39,761 115,083

1,156 22,302 56,497 0 40,511 120,465

434 10,656 68,160 0 49,814 129,064

833 10,685 77,037 830 76,589 165,973

Total intermediate farm liabs Total long term farm liabilities Total farm liabilities

160,943 297,013 598,160

148,661 318,372 620,982

110,854 223,150 449,087

90,120 278,095 488,679

217,207 320,240 666,511

185,898 311,555 663,427

Total nonfarm liabilities Total liabilities

6,368 604,528

6,873 627,855

6,229 455,317

8,769 497,449

15,439 681,950

15,011 678,437

Net worth (farm and nonfarm) Net worth change

654,165

672,276 18,111

376,910

335,910 -41,001

752,572

826,177 73,605

Ratio Analysis Current farm liabilities / assets Curr. & interm farm liab. / assets Long term farm liab. / assets Total debt to asset ratio

63 37 78 48

% % % %

67 37 80 48

15

% % % %

77 40 96 55

% % % %

89 39 110 60

% % % %

47 38 76 48

% % % %

57 37 71 45

% % % %

Table 16

Balance Sheet at Market Values Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Number of farms

141 Beginning

Low 25%

High 25%

35 Ending Beginning

36 Ending Beginning

Ending


19,989 21,303 8,112 24,267 449 136,239 0 11,594 1,995 223,949

20,535 20,696 8,947 27,151 473 138,715 212 11,713 375 228,817

19,831 3,447 9,806 13,562 0 94,643 0 8,016 249 149,554

16,282 4,451 9,411 15,392 0 82,197 0 7,463 135 135,331

21,652 21,245 8,658 37,549 1,529 160,786 0 18,304 6,595 276,317

29,510 23,539 8,668 39,322 1,836 168,655 830 19,156 0 291,516


399,782 322,085 880 33,150 755,897

422,770 332,912 1,703 32,527 789,912

289,864 253,808 457 17,690 561,819

288,469 251,138 623 15,251 555,481

422,050 397,543 1,226 29,533 850,353

452,067 415,023 2,025 32,895 902,010


643,895 675,650 463,646 477,758 518,148 589,690 235,355 245,993 148,465 154,706 221,753 248,926 13,553 17,160 5,860 6,386 4,658 5,338 892,803 938,803 617,971 638,849 744,559 843,954 1,872,650 1,957,532 1,329,344 1,329,661 1,871,229 2,037,480


138,370 157,436 112,722 123,599 149,376 158,490 2,011,020 2,114,968 1,442,066 1,453,259 2,020,606 2,195,970


719 17,257 70,368 0 51,859 140,204

782 19,319 71,780 212 61,857 153,950

730 14,529 60,063 0 39,761 115,083

1,156 22,302 56,497 0 40,511 120,465

434 10,656 68,160 0 49,814 129,064

833 10,685 77,037 830 76,589 165,973


160,943 297,013 598,160

148,661 318,372 620,982

110,854 223,150 449,087

90,120 278,095 488,679

217,207 320,240 666,511

185,898 311,555 663,427

Total Total Total Total

6,368 604,528 8,802 613,330

6,873 627,855 8,744 636,599

6,229 455,317 8,865 464,182

8,769 497,449 8,207 505,655

15,439 681,950 0 681,950

15,011 678,437 0 678,437

654,165 672,276 743,525 806,094 1,397,689 1,478,370 1,406,491 1,487,113 80,680

376,910 600,974 977,885 986,750

335,910 752,572 826,177 611,694 586,084 691,356 947,604 1,338,656 1,517,532 955,811 1,338,656 1,517,532 -30,280 178,876

nonfarm liabilities liabs excluding deferreds deferred liabilities liabilities

Retained earnings Market valuation equity Net worth (farm and nonfarm) Net worth excluding deferreds Net worth change Ratio Analysis Current farm liabilities / assets Curr. & interm farm liab. / assets Long term farm liab. / assets Total debt to asset ratio Debt to assets excl deferreds

63 31 33 30 30

% % % % %

67 30 34 30 30

16

% % % % %

77 32 36 32 32

% % % % %

89 30 44 35 34

% % % % %

47 31 43 34 34

% % % % %

57 29 37 31 31

% % % % %

Table 17

Statement Of Cash Flows Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141

35

36

20,195

19,831

22,430

Cash From Operating Activities Gross cash farm income Net nonfarm income Total cash farm expense Apparent family living expense Income and social security tax Cash from operations

695,048 9,808 -584,107 -52,519 -3,602 64,629

455,521 7,947 -412,216 -31,000 -2,363 17,889

829,500 8,654 -662,171 -56,220 -3,690 116,074

Cash From Investing Activities Sale of breeding livestock Sale of machinery & equipment Sale of titled vehicles Sale of farm land Sale of farm buildings Sale of other farm assets Sale of nonfarm assets Purchase of breeding livestock Purchase of machinery & equip. Purchase of titled vehicles Purchase of farm land Purchase of farm buildings Purchase of other farm assets Purchase of nonfarm assets Cash from investing activities

7,263 2,098 298 1,333 8,324 1,378 -19,955 -39,701 -101 -11,957 -21,427 -9,453 -4,023 -85,925

7,439 257 5,427 -9,026 -26,797 -10,945 -17,878 -2,840 -3,223 -57,587

4,045 2,547 1,111 3,553 10 -14,614 -48,197 -16,907 -25,365 -5,510 -3,218 -102,545

161,151 3,240 -139,569 -2,714 22,109

164,483 2,631 -130,526 -439 36,150

143,854 2,020 -146,334 -4,168 -4,628

812

-3,549

8,901

21,007

16,282

31,331

Number of farms Beginning cash (farm & nonfarm)

Cash From Financing Activities Money borrowed Cash gifts and inheritances Principal payments Dividends paid Gifts given Cash from financing activities Net change in cash balance Ending cash (farm & nonfarm)

17

Table 18

Financial Standards Measures Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141

35

36

1.49 74,867

1.12 14,866

1.76 125,542

32 % 68 % 47 %

37 % 63 % 59 %

33 % 67 % 48 %

2.6 % 0.2 % 5.6 % 57,519

-6.0 % -21.8 % -15.0 % -17,768

7.1 % 9.3 % 14.2 % 114,192

112 % 9,983

36 % -40,735

172 % 62,329

Number of farms Liquidity Current ratio Working capital Solvency (market) Farm debt to asset ratio Farm equity to asset ratio Farm debt to equity ratio Profitability (cost) Rate of return on farm assets Rate of return on farm equity Operating profit margin Net farm income Repayment Capacity Term debt coverage ratio Capital replacement margin Efficiency Asset turnover rate (cost) Operating expense ratio Depreciation expense ratio Interest expense ratio Net farm income ratio

46.1 79.5 7.9 4.3 8.2

18

% % % % %

39.9 89.2 9.5 5.3 -4.0

% % % % %

49.7 75.4 7.2 3.8 13.7

% % % % %

Table 19

Operator and Labor Information Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

141

35

36

1.6 50.8 27.0

1.5 54.5 30.8

1.5 46.8 23.3

47,658 1,346,323 405,239 941,084 946,650

10,006 978,155 340,345 637,811 643,334

83,695 1,463,980 452,292 1,011,688 1,011,688

445,583 408,969 36,615

298,740 310,699 -11,959

556,364 480,237 76,128

6,244 35,724

5,349 22,456

5,769 39,940

275.1 470.3 256.3 212.3 1.8 2.8

222.4 361.1 165.6 195.4 2.9

263.7 605.7 325.3 278.9 1.5 2.2

138 4,757 8,059 12,816 3,046 42.72 11.88

35 4,527 5,147 9,674 3,047 32.80 -3.92

36 4,449 10,115 14,564 2,966 46.72 25.67

44 2.2 -

9 2.3 -

12 2.2 -

Number of farms Operator Information Average number of operators Average age of operators Average number of years farming Results Per Operator Working capital Total assets (market) Total liabilities Net worth (market) Net worth excl deferred liabs Gross farm income Total farm expense Net farm income Net nonfarm income Family living & tax withdrawals Total acres owned Total crop acres Crop acres owned Crop acres cash rented Crop acres share rented Total pasture acres Labor Analysis Number of farms Total unpaid labor hours Total hired labor hours Total labor hours per farm Unpaid hours per operator Value of farm production / hour Net farm income / unpaid hour Partnerships Number of farms Number of operators Owner withdrawals per farm Withdrawals per operator

19

Table 20

Financial Summary Michigan Dairy, All Sizes, 2003 (Farms Sorted By Rate of Return on Assets - Mkt)

Number of farms Income Statement Gross cash farm income Total cash farm expense Net cash farm income Inventory change Depreciation and capital adjust Net farm income Profitability (cost) Labor and management earnings Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate Profitability (market) Labor and management earnings Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate Liquidity Ending current ratio Ending working capital End working capital to gross inc Term debt coverage ratio Expense as a percent of income Interest as a percent of income Solvency (cost) Number of farms Ending farm assets Ending farm liabilities Ending total assets Ending total liabilities Ending net worth Net worth change Ending farm debt to asset ratio Beg total debt to asset ratio End total debt to asset ratio Solvency (market) Number of farms Ending farm assets Ending farm liabilities Ending total assets Ending total liabilities Ending net worth Net worth change Ending farm debt to asset ratio Beg total debt to asset ratio End total debt to asset ratio Nonfarm Information Net nonfarm income Farms reporting living expenses Total family living expense Total living, invest, & capital Crop Acres Total acres owned Total crop acres Total crop acres owned Total crop acres cash rented Total crop acres share rented

Avg. Of All Farms

Low 25%

High 25%

141

35

36

695,048 584,107 110,941 2,197 -55,619 57,519

455,521 412,216 43,305 -18,873 -42,200 -17,768

829,500 662,171 167,329 6,913 -60,050 114,192

21,455 2.6 % 0.2 % 5.6 % 46.1 %

-37,786 -6.0 % -21.8 % -15.0 % 39.9 %

71,925 7.1 % 9.3 % 14.2 % 49.7 %

31,123 4.3 % 4.1 % 14.9 % 29.0 %

-66,024 -3.3 % -8.0 % -14.0 % 23.9 %

144,098 10.4 % 13.4 % 30.0 % 34.8 %

1.49 74,867 10.8 % 112.0 % 83.8 % 4.3 %

1.12 14,866 3.3 % 36.0 % 94.5 % 5.3 %

1.76 125,542 15.1 % 172.1 % 79.1 % 3.8 %

141 1,219,260 620,982 1,300,131 627,855 672,276 18,111 51 % 48 % 48 %

35 793,940 488,679 833,358 497,449 335,910 -41,001 62 % 55 % 60 %

36 1,397,936 663,427 1,504,614 678,437 826,177 73,605 47 % 48 % 45 %

141 1,957,532 629,471 2,114,968 636,599 1,478,370 80,680 32 % 30 % 30 %

35 1,329,661 495,766 1,453,259 505,655 947,604 -30,280 37 % 32 % 35 %

36 2,037,480 663,427 2,195,970 678,437 1,517,532 178,876 33 % 34 % 31 %

9,808 7 53,722 67,457

7,947 1 -

8,654 1 -

452 771 403 391 3

350 647 246 364 -

427 949 535 570 2

20

B. Financial Summary Information, Herds with 22-99 Cows

Table 21

Crop Production and Marketing Summary Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

40 69 18145 $12.49

9 73 18371 $12.59

9 66 17192 $12.65

322 461 276 194 0 -

298 530 242 288 -

347 559 256 281 -

-

5.80 -

Dairy Number of farms Average number of Cows Milk production per Cow, lbs. Average milk price per cwt., Acreage Summary Total acres owned Total crop acres Crop acres owned Crop acres cash rented Crop acres share rented Total pasture acres Average Price Received (Cash Sales Only) Soybeans per bushel Corn per bushel Wheat, Winter per bushel Hay, Alfalfa per ton

21

5.89 2.32 3.04 58.31

Table 22

Farm Income Statement Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

40

9

9

10,346 149 256 657 119 15,704 2,754 3,516 11 159,279 1,324 886 3,627 10,590 4,004 1,710 23,444 2,272 1,575 1,111 3,450 4,475 251,260

7,172 439 848 2,817 7,268 2,426 170,755 467 533 4,983 11,053 4,904 1,096 25,321 388 1,062 11,836 253,369

14,975 10 31,390 12,238 2,314 133,551 1,597 989 1,764 13,839 3,923 23,067 304 1,135 9 1,757 242,859

Number of farms Cash Farm Income Corn Corn Silage Hay, Alfalfa Hay, Mixed Haylage, Alfalfa Soybeans Sugar Beets Wheat, Winter Miscellaneous crop income Dairy, Milk Dairy, Dairy Calves Dairy Heifers (for sale) Dairy Steers Cull breeding livestock Misc. livestock income Direct & CC govt payments Other government payments Custom work income Patronage dividends, cash Insurance income Contract livestock income Other farm income Gross Cash Farm Income

22

Table 22, continued


Low 25%

High 25%

40

9

9

8,907 10,149 7,631 145 40 331 859 462 225 45,818 1,518 5,016 8,828 389 377 3,686 5,879 132 148 15,269 911 7,939 16,478 4,641 21,469 11,088 2,016 5,010 6,204 6,385 450 2,543 64 6,337 207,341 43,918

5,578 9,484 9,038 11 2,175 193 14 56,406 2,746 6,736 10,860 532 5,698 5,588 473 14,383 10,426 20,643 5,233 25,289 10,225 1,730 6,118 6,404 6,709 3,126 6,335 232,151 21,218

11,945 14,894 10,106 307 178 172 985 39,605 694 2,724 8,612 480 431 3,871 3,147 7,298 1,433 7,743 12,348 1,292 25,303 20,796 286 4,026 4,455 5,393 1,008 2,796 285 2,418 195,030 47,829

-5,100 -738 -395 -106 133 -6,206 37,712

-7,941 -3,166 -1,474 278 751 -11,552 9,667

6,545 -9 -54 2,268 22 8,772 56,601

Depreciation and Other Capital Adjustments Breeding livestock -6,448 Machinery and equipment -18,473 Buildings and improvements -5,044 Other farm capital 9,437 Total depr. and other capital adj -20,527

-3,700 -18,834 -4,490 733 -26,291

-3,838 -14,262 -3,006 166 -20,940

Net farm income

-16,625

35,661

Number of farms Cash Farm Expense Seed Fertilizer Crop chemicals Crop insurance Drying fuel Crop packaging and supplies Crop custom hire Crop miscellaneous Feeder livestock purchase Purchased feed Breeding fees Veterinary Livestock supplies DHIA Livestock utilities Livestock hauling and trucking Marketing Bedding Livestock miscellaneous Interest Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Machinery & bldg leases Real estate taxes Farm insurance Utilities Hauling and trucking Dues & professional fees Hedging account deposits Miscellaneous Total cash expense Net cash farm income Inventory Changes Crops and feed Market livestock Accounts receivable Prepaid expenses and supplies Accounts payable Total inventory change Net operating profit

17,185

23

Table 23

Inventory Changes Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

40

9

11


43,918

21,218

56,455


60,661 65,762 -5,100

62,207 70,148 -7,941

83,363 76,434 6,929


6,519 7,257 -738

6,607 9,772 -3,166

12,674 11,150 1,525

10,795 11,190 -395

14,256 15,730 -1,474

9,134 8,559 575


6,408 6,514 -106

756 478 278

13,236 11,941 1,296


4,542 4,409 133

1,726 975 751

450 432 18

Total inventory change

-6,206

-11,552

10,343


37,712

9,667

66,798

Number of farms


24

Table 24

Depreciation and Other Capital Adjustments Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

40

9

11

37,712

9,667

66,798


146,652 11,021 154,258 9,863 -6,448

141,999 13,418 156,820 2,296 -3,700

134,407 3,250 136,323 4,635 -3,302


55,766 784 55,232 19,791 -18,473

85,711 77,382 27,163 -18,834

45,751 694 52,598 11,144 -17,298


55,751 55,823 4,972 -5,044

44,841 32,086 17,245 -4,490

52,141 54,009 2,457 -4,324


22,368 1,183 10,647 3,466 9,437

10,795 78 9,833 308 733

14,224 2,147 15,394 841 136


-20,527

-26,291

-24,788

17,185

-16,625

42,009

Number of farms Net operating profit

Net farm income

25

Table 25

Profitability Measures Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

40

9

11

17,185 3,921 -1.3 % -10.3 % -3.6 % 37.7 %

-16,625 -26,914 -9.6 % -35.3 % -24.9 % 38.5 %

42,009 23,313 3.1 % 2.4 % 6.4 % 48.4 %

13,264 14,406 38,456 -6,865 511,284 -21,271 206,418 192,536

10,290 14,189 42,496 -44,932 469,158 -59,120 167,587 180,669

18,697 7,917 34,475 15,452 500,455 7,535 311,613 242,347

Avg. Of All Farms

Low 25%

High 25%

40

9

11

39,181 -7,422 1.4 % 0.1 % 7.9 % 17.8 %

-35,625 -82,233 -5.9 % -10.1 % -35.4 % 16.8 %

107,080 59,621 8.2 % 9.2 % 33.2 % 24.7 %

46,603 14,406 38,456 15,131 1,081,579 725 776,712 192,536

46,608 14,189 42,496 -63,932 1,078,366 -78,121 776,796 180,669

47,459 7,917 34,475 80,523 979,830 72,605 790,988 242,347


Number of farms Profitability (assets valued at market) Net farm income Labor and management earnings Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate Interest on farm net worth Farm interest expense Value of operator lbr and mgmt. Return on farm assets Average farm assets Return on farm equity Average farm equity Value of farm production

26

Table 26

Liquidity Measures Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

40

9

11

43,918 10,526 41,519 8,610 4,315 86,861

21,218 17,243 37,713 11,211 -10,462 60,021

56,455 6,661 37,297 5,591 20,228 62,909

20.1 83 % 6 %

** 92 % 6 %

3.1 80 % 3 %

245,026 207,314 37,712 10,526 41,519 8,610 -1,891 86,861

240,789 231,122 9,667 17,243 37,713 11,211 -22,014 60,021

290,182 223,384 66,798 6,661 37,297 5,591 30,571 62,909

** 85 % 6 %

** 96 % 6 %

2.1 77 % 3 %



27

Table 27

Balance Sheet at Cost Values Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Number of farms

Low 25%

40 Beginning

High 25%

9

11

Ending Beginning

Ending Beginning

12,197 6,514 5,014 5,522 0 65,762 0 7,257 654 102,919

11,323 6,408 5,532 4,954 0 60,661 0 6,519 308 95,706

19,735 478 7,480 8,059 0 70,148 0 9,772 191 115,863

12,926 756 7,557 6,508 0 62,207 0 6,607 191 96,752

12,979 11,941 2,997 5,562 0 76,434 0 11,150 0 121,062

21,097 13,236 3,433 5,701 0 83,363 0 12,674 0 139,505


154,258 55,112 120 6,579 216,070

146,652 55,261 505 6,854 209,273

156,820 77,382 0 4,117 238,319

141,999 85,711 0 4,375 232,084

136,323 52,598 0 9,851 198,772

134,407 44,205 1,545 9,364 189,521


132,872 55,823 4,068 192,762 511,751

134,575 55,751 15,514 205,839 510,818

79,553 32,086 5,716 117,355 471,538

86,679 44,841 6,421 137,940 466,777

117,749 54,009 5,543 177,301 497,134

117,749 52,141 4,860 174,750 503,776


43,159 554,909

50,049 560,867

33,172 504,710

44,897 511,674

63,556 560,690

69,669 573,445

1,205 3,337 29,528 0 22,241 56,311

343 4,067 27,375 0 25,322 57,107

197 1,529 50,230 0 24,634 76,590

3 972 51,437 0 21,235 73,648

57 392 22,407 0 20,188 43,045

99 333 17,868 0 18,558 36,858


72,078 168,635 297,025

72,129 183,473 312,709

43,638 163,776 284,003

48,123 197,367 319,138

44,593 101,239 188,877

53,561 98,388 188,807


1,381 298,406

1,392 314,100

3,246 287,250

2,288 321,425

1,450 190,327

1,295 190,102


256,504

246,766 -9,737

217,460

190,248 -27,212

370,363

383,343 12,980

66 34 140 57

76 37 143 63




55 40 87 54

% % % %

60 42 89 56

28

% % % %

% % % %

% % % %

36 27 57 34

% % % %

Ending

26 27 56 33

% % % %

Table 28

Balance Sheet at Market Values Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Number of farms

40 Beginning

Low 25%

High 25%

9 Ending Beginning

11 Ending Beginning

Ending


12,197 6,514 5,014 5,522 0 65,762 0 7,257 654 102,919

11,323 6,408 5,532 4,954 0 60,661 0 6,519 308 95,706

19,735 478 7,480 8,059 0 70,148 0 9,772 191 115,863

12,926 756 7,557 6,508 0 62,207 0 6,607 191 96,752

12,979 11,941 2,997 5,562 0 76,434 0 11,150 0 121,062

21,097 13,236 3,433 5,701 0 83,363 0 12,674 0 139,505


155,361 198,009 150 7,043 360,562

148,346 205,132 960 7,487 361,925

156,820 213,415 0 4,117 374,353

141,999 220,430 0 4,375 366,804

136,350 228,265 0 9,588 374,203

135,414 227,166 3,036 9,660 375,277


490,664 506,354 510,256 521,065 112,645 112,464 84,060 75,444 4,257 15,662 5,716 6,421 607,566 634,479 600,031 602,930 1,071,047 1,092,110 1,090,247 1,066,486


103,687 116,928 81,570 97,005 104,664 103,113 1,174,734 1,209,038 1,171,817 1,163,490 1,048,638 1,118,799


328,361 373,661 114,805 122,384 5,543 4,860 448,709 500,905 943,974 1,015,686

1,205 3,337 29,528 0 22,241 56,311

343 4,067 27,375 0 25,322 57,107

197 1,529 50,230 0 24,634 76,590

3 972 51,437 0 21,235 73,648

57 392 22,407 0 20,188 43,045

99 333 17,868 0 18,558 36,858


72,078 168,635 297,025

72,129 183,473 312,709

43,638 163,776 284,003

48,123 197,367 319,138

44,593 101,239 188,877

53,561 98,388 188,807


1,381 298,406 0 298,406

1,392 314,100 0 314,100

3,246 287,250 0 287,250

2,288 321,425 0 321,425

1,450 190,327 0 190,327

1,295 190,102 0 190,102

256,504 619,824 876,328 876,328

246,766 648,172 894,938 894,938 18,610

217,460 667,107 884,567 884,567

190,248 651,817 842,065 842,065 -42,503

370,363 487,948 858,310 858,310

383,343 545,354 928,697 928,697 70,387



55 28 28 25 25

% % % % %

60 28 29 26 26

29

% % % % %

66 25 27 25 25

% % % % %

76 26 33 28 28

% % % % %

36 18 23 18 18

% % % % %

26 18 20 17 17

% % % % %

Table 29

Statement Of Cash Flows Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

40

9

11

12,875

19,735

15,444


251,260 10,526 -207,341 -38,301 -3,217 12,925

253,369 17,243 -232,151 -35,766 -1,947 749

281,152 6,661 -224,698 -31,581 -5,716 25,819


11,021 784 1,183 -9,863 -19,791 -2,218 -4,972 -3,466 -4,101 -31,423

13,418 78 -2,296 -27,163 -6,887 -17,245 -308 -11,133 -51,536

3,250 694 2,147 -4,635 -11,144 -2,457 -841 -1,053 -14,040

Cash From Financing Activities Money borrowed Cash gifts and inheritances Principal payments Dividends paid Gifts given Cash from financing activities

74,636 4,385 -58,802 -1,657 18,562

134,983 9,052 -100,057 43,978

37,682 3,122 -37,889 -3,168 -252

64

-6,809

11,527

12,939

12,926

26,972


Net change in cash balance Ending cash (farm & nonfarm)

30

Table 30

Financial Standards Measures Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

40

9

11

1.68 38,599

1.31 23,105

3.78 102,647

29 % 71 % 40 %

30 % 70 % 43 %

19 % 81 % 23 %

Profitability (cost) Rate of return on farm assets Rate of return on farm equity Operating profit margin Net farm income

-1.3 % -10.3 % -3.6 % 17,185

-9.6 % -35.3 % -24.9 % -16,625

3.1 % 2.4 % 6.4 % 42,009

Repayment Capacity Term debt coverage ratio Capital replacement margin

65 % -14,579

9 % -33,768

152 % 15,560

Efficiency Asset turnover rate (cost) Operating expense ratio Depreciation expense ratio Interest expense ratio Net farm income ratio

37.7 78.7 8.4 5.9 7.0

38.5 90.1 10.9 5.9 -6.9

Number of farms Liquidity Current ratio Working capital Solvency (market) Farm debt to asset ratio Farm equity to asset ratio Farm debt to equity ratio

31

% % % % %

% % % % %

48.4 74.3 8.5 2.7 14.5

% % % % %

Table 31

Operator and Labor Information Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

40

9

11

1.5 50.7 26.5

1.4 55.0 31.1

1.5 46.8 22.0

26,620 833,820 216,621 617,199 617,199

15,995 805,493 222,525 582,968 582,968

70,570 769,174 130,695 638,479 638,479

168,984 157,132 11,851

166,700 178,209 -11,509

199,500 170,618 28,881

7,259 28,634

11,937 26,109

4,580 25,642

222.1 317.6 190.6 126.8 0.2 -

206.4 367.1 167.5 199.6 -

238.4 384.3 209.5 174.0 0.8 -

40 4,074 2,047 6,121 2,810 31.45 4.22

9 4,649 2,295 6,944 3,219 26.02 -3.58

11 3,749 2,962 6,711 2,577 36.11 11.21

10 2.1 -

2 -

3 -


32

Table 32

Financial Summary Michigan Dairy, 22-99 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt)

Number of farms Income Statement Gross cash farm income Total cash farm expense Net cash farm income Inventory change Depreciation and capital adjust Net farm income Profitability (cost) Labor and management earnings Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate Profitability (market) Labor and management earnings Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate Liquidity Ending current ratio Ending working capital End working capital to gross inc Term debt coverage ratio Expense as a percent of income Interest as a percent of income Solvency (cost) Number of farms Ending farm assets Ending farm liabilities Ending total assets Ending total liabilities Ending net worth Net worth change Ending farm debt to asset ratio Beg total debt to asset ratio End total debt to asset ratio Solvency (market) Number of farms Ending farm assets Ending farm liabilities Ending total assets Ending total liabilities Ending net worth Net worth change Ending farm debt to asset ratio Beg total debt to asset ratio End total debt to asset ratio Nonfarm Information Net nonfarm income Crop Acres Total acres owned Total crop acres Total crop acres owned Total crop acres cash rented Total crop acres share rented

Avg. Of All Farms

Low 25%

High 25%

40

9

11

251,260 207,341 43,918 -6,206 -20,527 17,185

253,369 232,151 21,218 -11,552 -26,291 -16,625

281,152 224,698 56,455 10,343 -24,788 42,009

3,921 -1.3 % -10.3 % -3.6 % 37.7 %

-26,914 -9.6 % -35.3 % -24.9 % 38.5 %

23,313 3.1 % 2.4 % 6.4 % 48.4 %

-7,422 1.4 % 0.1 % 7.9 % 17.8 %

-82,233 -5.9 % -10.1 % -35.4 % 16.8 %

59,621 8.2 % 9.2 % 33.2 % 24.7 %

1.68 38,599 15.4 % 65.2 % 84.6 % 5.9 %

1.31 23,105 9.1 % 9.4 % 96.0 % 5.9 %

3.78 102,647 36.5 % 151.7 % 77.0 % 2.7 %

40 510,818 312,709 560,867 314,100 246,766 -9,737 61 % 54 % 56 %

9 466,777 319,138 511,674 321,425 190,248 -27,212 68 % 57 % 63 %

11 503,776 188,807 573,445 190,102 383,343 12,980 37 % 34 % 33 %

40 1,092,110 312,709 1,209,038 314,100 894,938 18,610 29 % 25 % 26 %

9 1,066,486 319,138 1,163,490 321,425 842,065 -42,503 30 % 25 % 28 %

11 1,015,686 188,807 1,118,799 190,102 928,697 70,387 19 % 18 % 17 %

10,526

17,243

6,661

322 461 276 194 0

298 530 242 288 -

347 559 305 281 1

33

C. Financial Summary Information, Herds with 100-249 Cows

Table 33

Crop Production and Marketing Summary Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

66 158 20774 $12.63

16 156 18601 $12.53

16 157 21606 $12.87

389 675 314 347 6 3

318 609 206 353 5

351 657 311 328 5 6

-

3.09 -

Dairy Number of farms Average number of Cows Milk production per Cows, lbs. Average milk price per cwt., Acreage Summary Total acres owned Total crop acres Crop acres owned Crop acres cash rented Crop acres share rented Total pasture acres Average Price Received (Cash Sales Only) Corn per bushel Wheat, Winter per bushel Soybeans per bushel Hay, Alfalfa per ton Hay, Mixed per ton

34

2.19 3.27 5.80 43.09 9.64

Table 34


Low 25%

High 25%

66

16

16

149 484 89 4,057 328 280 855 12,045 103 4,046 114 168 1,043 421,838 4,077 823 298 5,959 23,214 4,399 1,555 42,030 2,440 4,615 2,260 883 7,570 545,723

5,922 848 370 14,960 235 5,103 22 367,627 3,458 1,161 884 5,263 19,407 468 40,041 165 8,126 1,635 3,027 478,723

1,998 367 5,201 784 10,118 165 4,565 450,956 2,233 509 106 9,216 22,335 6,143 2,315 43,962 5,651 3,787 5,762 3,643 5,274 585,089

Number of farms Cash Farm Income Asparagus Beans, Navy Celery Corn Corn Silage Hay, Alfalfa Hay, Mixed Soybeans Straw Wheat, Winter Miscellaneous crop income Beef Cow-Calf, Beef Calves Beef, Finish Beef Calves Dairy, Milk Dairy, Dairy Calves Dairy Heifers (for sale) Dairy Replacement Heifers Dairy Steers Cull breeding livestock Misc. livestock income Direct & CC govt payments Other government payments Custom work income Patronage dividends, cash Insurance income Cash from hedging accts Other farm income Gross Cash Farm Income

35

Table 34, continued


Low 25%

High 25%

66

16

16

Cash Farm Expense Seed Fertilizer Crop chemicals Crop insurance Drying fuel Irrigation energy Crop custom hire Crop hauling and trucking Crop marketing Crop miscellaneous Feeder livestock purchase Purchased feed Breeding fees Veterinary BST Livestock supplies DHIA Livestock leases Livestock hauling and trucking Livestock marketing Bedding Livestock miscellaneous Interest Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Machinery & bldg leases Real estate taxes Personal property taxes Farm insurance Utilities Hauling and trucking Dues & professional fees Miscellaneous Total cash expense Net cash farm income

10,975 15,173 8,385 325 406 145 2,809 36 44 1,386 213 119,058 4,292 13,985 909 22,116 678 642 7,261 15,165 490 75 20,772 689 15,735 28,187 12,497 74,617 21,379 6,660 6,927 387 9,112 11,544 107 4,083 9,967 447,231 98,492

9,118 14,225 9,617 628 788 588 2,272 1,384 31 121,075 3,008 14,384 515 19,587 836 2,650 5,170 15,130 19,615 130 13,407 25,598 11,835 71,803 15,259 9,386 5,447 7,616 10,165 4,061 12,051 427,377 51,346

13,462 14,968 11,448 238 215 10 2,825 148 179 618 26 123,749 4,503 12,025 2,017 21,162 737 9,076 15,173 1,156 308 18,228 1,908 15,074 29,193 17,912 67,955 22,288 5,994 7,548 22 7,376 12,776 3,869 5,919 450,105 134,984

Inventory Changes Crops and feed Market livestock Accounts receivable Prepaid expenses and supplies Accounts payable Total inventory change Net operating profit

4,585 -299 1,640 515 -4,600 1,841 100,333

-14,834 891 -700 172 -17,019 -31,490 19,856

9,976 -1,127 3,093 361 1,415 13,717 148,701

Depreciation and Other Capital Adjustments Breeding livestock 10,185 Machinery and equipment -37,501 Buildings and improvements -15,855 Other farm capital -215 Total depr. and other capital adj -43,386

-3,097 -23,959 -7,515 721 -33,850

18,631 -43,144 -14,790 1,971 -37,332

Net farm income

-13,994

111,369

Number of farms

56,947

36

Table 35

Inventory Changes Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

66

16

17


98,492

51,346

136,509


113,335 108,750 4,585

84,637 99,470 -14,834

125,196 115,807 9,389


11,180 11,479 -299

10,669 9,778 891

14,242 15,303 -1,061


26,999 25,359 1,640

29,300 30,000 -700

22,692 19,781 2,911


11,168 10,653 515

4,143 3,971 172

10,458 10,118 340


12,856 17,456 -4,600

20,021 37,040 -17,019

8,533 7,191 1,343

1,841

-31,490

12,921

100,333

19,856

149,430

Number of farms

Total inventory change Net operating profit

37

Table 36

Depreciation and Other Capital Adjustments Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

66

16

17


100,333

19,856

149,430


358,189 3,936 340,827 11,112 10,185

316,003 4,093 307,153 16,039 -3,097

351,405 1,384 331,095 4,159 17,535


120,807 2,103 129,007 31,403 -37,501

79,617 563 78,435 25,703 -23,959

141,026 1,661 154,310 31,765 -43,389


121,027 2,716 116,296 23,302 -15,855

91,969 80,283 19,201 -7,515

125,668 120,923 19,506 -14,761


38,221 6,055 40,238 4,253 -215

27,681 11,339 33,856 4,444 721

13,390 508 9,269 2,605 2,025


-43,386

-33,850

-38,590

56,947

-13,994

110,840

Number of farms

Net farm income

38

Table 37

Profitability Measures Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

66

16

17

56,947 24,519 2.5 % 0.7 % 5.6 % 44.8 %

-13,994 -36,529 -5.8 % -18.0 % -13.8 % 41.8 %

110,840 75,564 8.5 % 10.8 % 16.7 % 50.6 %

32,428 21,185 53,195 24,937 987,492 3,753 538,147 442,563

22,535 20,741 53,738 -46,991 813,514 -67,732 375,587 339,878

35,276 19,471 47,678 82,633 976,387 63,162 585,889 493,714

Avg. Of All Farms

Low 25%

High 25%

66

16

17

93,476 29,049 4.0 % 3.8 % 13.9 % 28.9 %

-4,200 -46,883 -3.2 % -8.1 % -10.9 % 29.2 %

156,038 98,072 9.4 % 11.2 % 25.9 % 36.4 %

64,427 21,185 53,195 61,466 1,529,751 40,282 1,073,777 442,563

42,683 20,741 53,738 -37,197 1,165,227 -57,938 711,384 339,878

57,966 19,471 47,678 127,831 1,356,597 108,360 966,100 493,714


Number of farms Profitability (assets valued at market) Net farm income Labor and management earnings Rate of return on assets Rate of return on equity Operating profit margin Asset turnover rate Interest on farm net worth Farm interest expense Value of operator lbr and mgmt. Return on farm assets Average farm assets Return on farm equity Average farm equity Value of farm production

39

Table 38

Liquidity Measures Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

66

16

17

98,492 8,312 44,691 11,274 50,839 155,945

51,346 4,805 22,741 7,570 25,839 185,005

136,509 8,462 60,464 4,763 79,743 163,236

3.1 82 % 4 %

7.2 89 % 4 %

2.0 77 % 3 %

551,649 451,316 100,333 8,312 44,691 11,274 52,680 155,945

464,081 444,224 19,856 4,805 22,741 7,570 -5,650 185,005

600,518 451,088 149,430 8,462 60,464 4,763 92,665 163,236

3.0 82 % 4 %

** 96 % 4 %

1.8 75 % 3 %



40

Table 39

Balance Sheet at Cost Values Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Number of farms

Low 25%

66 Beginning

High 25%

16 Ending Beginning

17 Ending Beginning

Ending


18,326 10,653 7,586 17,766 0 108,750 0 11,479 7 174,567

16,160 11,168 7,568 19,375 0 113,335 0 11,180 55 178,842

20,537 3,971 11,512 18,487 0 99,470 0 9,778 0 163,757

16,997 4,143 11,243 18,057 0 84,637 0 10,669 0 145,746

17,036 10,118 5,846 13,935 0 115,807 0 15,303 0 178,045

17,860 10,458 6,054 16,638 0 125,196 0 14,242 0 190,447


340,827 128,571 437 24,076 493,911

358,189 120,262 545 21,691 500,687

307,153 78,379 56 26,315 411,903

316,003 79,169 448 19,563 415,182

331,095 153,160 1,150 4,592 489,998

351,405 139,495 1,532 7,432 499,864


171,162 185,800 116,296 121,027 16,162 16,530 303,620 323,357 972,097 1,002,886

144,977 80,283 7,541 232,800 808,460

157,552 91,969 8,118 257,639 818,567

165,582 120,923 4,677 291,182 959,225

171,612 125,668 5,958 303,237 993,548

62,138 69,469 1,034,235 1,072,355

35,799 844,259

36,503 55,485 64,172 855,071 1,014,710 1,057,720

Total Nonfarm Assets Total Assets Liabilities Current Farm Liabilities Accrued interest Accounts payable Current notes Government crop loans Principal due on term debt Total current farm liabilities

644 12,213 63,543 0 39,018 115,417

1,056 16,400 62,547 0 46,643 126,646

1,093 18,928 78,448 0 39,123 137,593

2,220 34,820 70,431 0 44,925 152,395

530 8,003 46,173 0 25,698 80,404

830 6,361 51,637 0 48,301 107,128


132,993 194,874 443,285

115,429 213,330 455,405

156,024 122,588 416,205

144,219 163,034 459,648

148,960 169,795 399,159

116,215 158,493 381,836


6,909 450,193

6,577 461,982

5,905 422,109

5,353 465,002

14,683 413,842

14,186 396,022


584,042

610,373 26,331

422,149

390,069 -32,080

600,868

661,698 60,830


66 37 64 44

% % % %

71 36 66 43

41

% % % %

84 51 53 50

% % % %

105 53 63 54

% % % %

45 34 58 41

% % % %

56 32 52 37

% % % %

Table 40

Balance Sheet at Market Values Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Number of farms

66 Beginning

Low 25% 16 Ending Beginning

High 25% 17 Ending Beginning

Ending


18,326 10,653 7,586 17,766 0 108,750 0 11,479 7 174,567

16,160 11,168 7,568 19,375 0 113,335 0 11,180 55 178,842

20,537 3,971 11,512 18,487 0 99,470 0 9,778 0 163,757

16,997 4,143 11,243 18,057 0 84,637 0 10,669 0 145,746

17,036 10,118 5,846 13,935 0 115,807 0 15,303 0 178,045

17,860 10,458 6,054 16,638 0 125,196 0 14,242 0 190,447


342,983 278,820 1,139 28,235 651,176

361,266 288,597 1,359 25,865 677,088

307,340 198,445 625 26,994 533,404

316,190 204,048 1,050 20,242 541,531

334,389 328,748 1,715 4,592 669,444

355,491 339,886 2,407 7,432 705,216


477,566 501,041 340,250 354,658 302,381 317,145 168,943 182,528 110,738 124,770 162,290 177,865 23,749 24,002 7,541 8,057 4,677 5,684 670,257 707,571 458,529 487,486 469,347 500,695 1,496,000 1,563,501 1,155,690 1,174,763 1,316,836 1,396,358


114,859 140,809 98,825 98,466 117,997 124,246 1,610,860 1,704,310 1,254,515 1,273,229 1,434,833 1,520,604


644 12,213 63,543 0 39,018 115,417

1,056 16,400 62,547 0 46,643 126,646

1,093 18,928 78,448 0 39,123 137,593

2,220 34,820 70,431 0 44,925 152,395

530 8,003 46,173 0 25,698 80,404

830 6,361 51,637 0 48,301 107,128


132,993 194,874 443,285

115,429 213,330 455,405

156,024 122,588 416,205

144,219 163,034 459,648

148,960 169,795 399,159

116,215 158,493 381,836


6,909 450,193 7,230 457,424

6,577 461,982 7,265 469,247

5,905 422,109 19,392 441,502

5,353 465,002 17,952 482,954

14,683 413,842 0 413,842

14,186 396,022 0 396,022

584,042 610,373 569,394 624,690 1,153,436 1,235,063 1,160,666 1,242,328 81,627

422,149 390,864 813,013 832,406

390,069 600,868 661,698 400,206 420,123 462,884 790,275 1,020,991 1,124,582 808,227 1,020,991 1,124,582 -22,738 103,591



66 30 29 28 28

% % % % %

71 28 30 28 27

42

% % % % %

84 42 27 35 34

% % % % %

105 43 33 38 37

% % % % %

45 27 36 29 29

% % % % %

56 25 32 26 26

% % % % %

Table 41

Statement Of Cash Flows Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

66

16

17

18,355

20,537

17,150


545,723 8,312 -447,231 -41,375 -3,316 62,113

478,723 4,805 -427,377 -19,302 -3,439 33,410

589,279 8,462 -452,771 -58,328 -2,135 84,507


3,936 2,103 636 2,716 6,055 2,480 -11,112 -31,403 -16,483 -23,302 -4,253 -2,861 -71,487

4,093 563 11,339 -16,039 -25,703 -13,125 -19,201 -4,444 -662 -63,180

1,384 1,661 2,353 508 -4,159 -31,765 -12,412 -19,506 -2,605 -4,199 -68,740


104,568 1,761 -97,541 -1,579 7,209

143,909 665 -117,962 -381 26,230

95,591 2,121 -112,059 -594 -14,940

Net change in cash balance

-2,165

-3,540

826

Ending cash (farm & nonfarm)

16,190

16,997

17,976


43

Table 42

Financial Standards Measures Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

66

16

17

1.41 52,196

0.96 -6,649

1.78 83,319

30 % 70 % 42 %

40 % 60 % 68 %

27 % 73 % 38 %

Profitability (cost) Rate of return on farm assets Rate of return on farm equity Operating profit margin Net farm income

2.5 % 0.7 % 5.6 % 56,947

-5.8 % -18.0 % -13.8 % -13,994

8.5 % 10.8 % 16.7 % 110,840


130 % 20,209

41 % -37,695

187 % 55,908


44.8 78.0 7.9 3.8 10.3

Number of farms Liquidity Current ratio Working capital Solvency (market) Farm debt to asset ratio Farm equity to asset ratio Farm debt to equity ratio

44

% % % % %

41.8 91.3 7.3 4.5 -3.0

% % % % %

50.6 71.9 6.4 3.2 18.5

% % % % %

Table 43

Operator and Labor Information Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

66

16

17

1.5 50.7 26.4

1.4 55.2 31.3

1.4 45.6 21.8

34,622 1,130,497 311,259 819,238 824,057

-4,836 925,985 351,239 574,746 587,802

59,018 1,077,094 280,515 796,579 796,579

365,918 328,144 37,774

337,513 347,690 -10,177

425,367 346,855 78,512

5,514 29,645

3,494 16,539

5,994 42,828

244.4 437.1 208.5 224.8 3.8 2.0

220.5 394.8 149.8 245.0 3.5

221.2 467.4 212.1 251.9 3.4 3.8

64 4,744 5,815 10,559 3,213 41.81 11.90

16 4,421 5,725 10,147 3,215 33.50 -3.17

17 4,585 5,396 9,981 3,248 49.46 24.17

17 2.1 -

3 -

6 2.0 -


45

Table 44

Financial Summary Michigan Dairy, 100-249 Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt)


Avg. Of All Farms

Low 25%

High 25%

66

16

17

545,723 447,231 98,492 1,841 -43,386 56,947

478,723 427,377 51,346 -31,490 -33,850 -13,994

589,279 452,771 136,509 12,921 -38,590 110,840

24,519 2.5 % 0.7 % 5.6 % 44.8 %

-36,529 -5.8 % -18.0 % -13.8 % 41.8 %

75,564 8.5 % 10.8 % 16.7 % 50.6 %

29,049 4.0 % 3.8 % 13.9 % 28.9 %

-46,883 -3.2 % -8.1 % -10.9 % 29.2 %

98,072 9.4 % 11.2 % 25.9 % 36.4 %

1.41 52,196 9.6 % 130.3 % 81.8 % 3.8 %

0.96 -6,649 -1.4 % 40.6 % 95.7 % 4.5 %

1.78 83,319 14.1 % 187.3 % 75.1 % 3.2 %

66 1,002,886 455,405 1,072,355 461,982 610,373 26,331 45 % 44 % 43 %

16 818,567 459,648 855,071 465,002 390,069 -32,080 56 % 50 % 54 %

17 993,548 381,836 1,057,720 396,022 661,698 60,830 38 % 41 % 37 %

66 1,563,501 462,125 1,704,310 469,247 1,235,063 81,627 30 % 28 % 28 %

16 1,174,763 475,150 1,273,229 482,954 790,275 -22,738 40 % 35 % 38 %

17 1,396,358 381,836 1,520,604 396,022 1,124,582 103,591 27 % 29 % 26 %

8,312

4,805

8,462

389 675 314 347 6

318 609 206 353 -

351 657 300 328 5

46

D. Financial Summary Information, Herds with 250+ Cows

Table 45

Crop Production and Marketing Summary Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35 423 23444 $12.67

10 376 24060 $11.96

9 410 22073 $13.38

Acreage Summary Total acres owned Total crop acres Crop acres owned Crop acres cash rented Crop acres share rented Total pasture acres

731 1,335 716 595 12

791 1340 601 655 8

619 1,654 1,072 1137 3

Average Price Received (Cash Sales Only) Wheat, Winter per bushel Soybeans per bushel Corn per bushel Haylage, Mixed per ton

3.28 5.86 2.08 30.07

-

3.86 -

Dairy Number of farms Average number of Cows Milk production per Cow, lbs. Average milk price per cwt.,

47

Table 46

Farm Income Statement Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35

10

9

13,853 3,320 514 1,618 344 2,858 557 46 34,307 3,506 201 8,641 10,305 19 34 1,213,429 10,770 5,246 915 10,788 56,460 1,559 1,367 52,384 5,916 18,022 14,338 257 12,244 1,483,818

3,321 137 176 3,416 282 162 30,323 50 1,622 120 1,045,641 9,580 720 9,610 39,179 7 52,752 4,880 10,069 3,432 9,762 1,225,240

36,157 11,684 1,997 5,781 1,142 6,866 75,029 13,633 701 33,604 25,559 75 1,219,203 13,806 14,125 2,494 14,967 48,074 61,146 7,666 26,535 46,586 1,000 21,506 1,689,336

Number of farms Cash Farm Income Corn Corn Silage Hay, Alfalfa Hay, Mixed Haylage, Alfalfa Haylage, Mixed Oats Rye Soybeans Speltz Straw Sugar Beets Wheat, Winter Miscellaneous crop income Beef, Finish Beef Calves Dairy, Milk Dairy, Dairy Calves Dairy Heifers (for sale) Dairy Replacement Heifers Dairy Steers Cull breeding livestock Misc. livestock income Direct & CC govt payments Other government payments Custom work income Patronage dividends, cash Insurance income Cash from hedging accts Other farm income Gross Cash Farm Income

48

Table 46, continued

Farm Income Statement Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35

10

9

28,468 31,185 21,577 2,151 431 163 611 59 2,299 9,399 334,030 12,206 48,850 3,773 61,922 358 847 9,037 45,511 1,312 64,281 1,197 32,548 74,908 55,464 263,222 46,145 14,600 12,831 549 20,125 32,088 1,503 7,923 1,450 29,783 1,272,805 211,013

26,181 24,406 22,691 1,666 665 205 605 342,973 10,451 41,394 6,682 44,999 4,641 49,316 73,384 27,710 51,647 53,940 201,713 39,291 7,738 10,570 412 19,851 31,063 9,785 36,382 1,140,364 84,876

37,287 35,941 23,891 5,204 706 2,376 2,522 3,646 341,149 11,380 53,312 63,093 489 2,122 12,822 34,921 72,076 4,395 41,086 97,513 45,601 269,979 75,536 34,416 13,184 1,538 19,595 30,682 5,832 6,324 6,012 16,580 1,371,209 318,126

8,009 1,884 5,911 -3,295 -36 12,473 223,485

-8,495 14 11,427 865 6,217 10,028 94,904

2,499 4,197 -21,516 10,045 -7,970 -12,745 305,382

Depreciation and Other Capital Adjustments Breeding livestock 22,754 Machinery and equipment -82,953 Buildings and improvements -54,407 Other farm capital -4,188 Total depr. and other capital adj -118,793

-2,317 -56,765 -41,170 -584 -100,835

38,090 -80,575 -77,936 72 -120,350

-5,932

185,032

Number of farms Cash Farm Expense Seed Fertilizer Crop chemicals Crop insurance Drying fuel Irrigation energy Crop custom hire Crop marketing Crop miscellaneous Feeder livestock purchase Purchased feed Breeding fees Veterinary BST Livestock supplies DHIA Livestock leases Livestock hauling and trucking Livestock marketing Bedding Interest Packaging and supplies Fuel & oil Repairs Custom hire Hired labor Land rent Machinery & bldg leases Real estate taxes Personal property taxes Farm insurance Utilities Hauling and trucking Dues & professional fees Hedging account deposits Miscellaneous Total cash expense Net cash farm income Inventory Changes Crops and feed Market livestock Accounts receivable Prepaid expenses and supplies Accounts payable Total inventory change Net operating profit

Net farm income

104,692

_______________________________________________________________________________

49

Table 47

Inventory Changes Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35

8

9


211,013

88,972

318,126


276,631 268,622 8,009

217,710 236,098 -18,388

302,790 300,290 2,499


18,652 16,768 1,884

8,283 8,265 18

43,586 39,389 4,197


85,593 79,681 5,911

61,783 46,090 15,693

133,054 154,570 -21,516


54,993 58,288 -3,295

10,166 8,960 1,206

58,854 48,809 10,045


42,986 43,022 -36

44,028 49,849 -5,821

19,745 27,715 -7,970

Total inventory change

12,473

-7,293

-12,745

223,485

81,680

305,382

Number of farms


50

Table 48

Depreciation and Other Capital Adjustments Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35

8

9


223,485

81,680

305,382


836,523 9,241 774,846 48,165 22,754

749,581 19,438 732,108 26,644 10,268

850,506 9,596 772,167 49,845 38,090


303,839 3,589 311,873 78,508 -82,953

286,203 1,402 301,874 48,784 -63,053

426,930 5,467 396,538 116,435 -80,575


341,960 247 359,916 36,698 -54,407

369,281 368,048 38,184 -36,951

444,751 468,833 53,854 -77,936


77,293 20,763 76,143 26,100 -4,188

55,783 58,782 64,609 51,552 -1,595

84,719 7,621 75,689 16,579 72

-118,793

-91,331

-120,350

104,692

-9,652

185,032

Number of farms

Total depreciation, capital adj. Net farm income

51

Table 49

Profitability Measures Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35

8

9

104,692 35,717 3.6 % 1.9 % 7.3 % 49.2 %

-9,652 -60,220 -1.6 % -13.5 % -3.9 % 41.8 %

185,032 108,284 7.1 % 9.8 % 14.5 % 49.0 %

68,975 64,742 82,801 86,634 2,398,055 21,891 1,138,109 1,178,946

50,569 74,226 100,302 -35,727 2,188,177 -109,953 814,597 914,131

76,748 72,719 59,952 197,800 2,792,970 125,080 1,279,132 1,367,811

Avg. Of All Farms

Low 25%

High 25%

35

8

9

Profitability (assets valued at market) Net farm income 217,845 Labor and management earnings 79,083 Rate of return on assets 5.6 % Rate of return on equity 5.8 % Operating profit margin 16.9 % Asset turnover rate 32.8 %

2,551 -102,783 -0.8 % -5.6 % -2.6 % 29.2 %

426,799 288,537 11.5 % 15.9 % 32.1 % 35.8 %

105,334 74,226 100,302 -23,524 3,129,151 -97,750 1,755,571 914,131

138,263 72,719 59,952 439,567 3,818,218 366,847 2,304,379 1,367,811


Number of farms

Interest on farm net worth Farm interest expense Value of operator lbr and mgmt. Return on farm assets Average farm assets Return on farm equity Average farm equity Value of farm production

138,762 64,742 82,801 199,786 3,594,318 135,044 2,312,694 1,178,946

52

Table 50

Liquidity Measures Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35

8

9

211,013 11,810 94,359 33,373 95,090 390,394

88,972 14,246 81,124 38,752 -16,658 319,900

318,126 9,587 79,702 32,234 215,778 469,896

4.1 86 % 4 %

** 93 % 6 %

2.2 81 % 4 %

1,499,622 1,276,136 223,485 11,810 94,359 33,373 107,563 390,394

1,239,236 1,157,557 81,680 14,246 81,124 38,752 -23,951 319,900

1,674,516 1,369,135 305,382 9,587 79,702 32,234 203,034 469,896

3.6 85 % 4 %

** 93 % 6 %

2.3 82 % 4 %



53

Table 51

Balance Sheet at Cost Values Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Number of farms

High 25%

8

9

35 Beginning


Low 25%

32,031 58,288 12,645 57,949 1,809 268,622 0 16,768 7,278 455,391

Ending Beginning

39,313 54,993 15,450 67,183 1,905 275,778 854 18,652 1,055 475,182

30,589 8,960 14,481 31,609 0 236,098 0 8,265 0 330,002

Ending Beginning

30,675 10,166 18,847 42,561 0 217,710 0 8,283 375 328,616

34,312 48,809 17,811 104,264 6,117 300,290 0 39,389 26,378 577,370

Ending

46,214 58,854 18,606 107,104 7,344 299,470 3,320 43,586 0 584,498


774,846 836,523 732,108 749,581 772,167 850,506 311,853 303,625 301,874 286,203 396,538 426,930 20 213 0 0 0 0 72,199 72,832 60,686 51,386 73,156 82,113 1,158,918 1,213,194 1,094,668 1,087,171 1,241,861 1,359,549


381,014 402,132 388,181 402,068 417,079 486,861 359,916 341,960 368,048 369,281 468,833 444,751 3,944 4,461 3,922 4,397 2,533 2,607 744,873 748,553 760,152 775,746 888,445 934,218 2,359,182 2,436,929 2,184,821 2,191,533 2,707,676 2,878,265


127,099 137,597 44,071 44,160 36,340 41,684 2,486,281 2,574,526 2,228,892 2,235,692 2,744,016 2,919,949


306 42,679 129,912 0 109,925 282,823

768 42,254 139,938 854 132,300 316,114

603 43,424 101,400 0 121,612 267,039

822 49,027 111,950 0 103,626 265,425

337 19,408 140,174 0 115,797 275,716

980 26,735 153,301 3,320 165,318 349,654


315,210 298,791 291,650 212,403 382,621 356,194 636,333 670,623 780,434 930,209 835,030 828,463 1,234,366 1,285,528 1,339,123 1,408,037 1,493,367 1,534,311


11,049 13,694 11,791 25,086 300 300 1,245,415 1,299,222 1,350,913 1,433,123 1,493,667 1,534,611


1,240,866 1,275,304 34,438


62 37 85 50

% % % %

67 36 90 50

54

% % % %

877,978

81 39 103 61

% % % %

802,569 1,250,350 1,385,339 -75,409 134,989

81 34 120 64

% % % %

48 36 94 54

% % % %

60 36 89 53

% % % %

Table 52

Balance Sheet at Market Values Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Number of farms Assets Current Farm Assets Cash and checking balance Prepaid expenses & supplies Growing crops Accounts receivable Hedging accounts Crops held for sale or feed Crops under government loan Market livestock held for sale Other current assets Total current farm assets

35 Beginning

32,031 58,288 12,645 57,949 1,809 268,622 0 16,768 7,278 455,391

Low 25%

High 25%

8 Ending Beginning

39,313 54,993 15,450 67,183 1,905 275,778 854 18,652 1,055 475,182

30,589 8,960 14,481 31,609 0 236,098 0 8,265 0 330,002

9 Ending Beginning

30,675 10,166 18,847 42,561 0 217,710 0 8,283 375 328,616

34,312 48,809 17,811 104,264 6,117 300,290 0 39,389 26,378 577,370

Ending

46,214 58,854 18,606 107,104 7,344 299,470 3,320 43,586 0 584,498


786,226 852,378 732,108 762,181 803,478 888,194 545,473 562,513 563,642 538,472 647,529 693,026 1,229 3,200 0 0 1,667 1,667 72,256 73,705 60,686 51,386 73,267 85,397 1,405,183 1,491,796 1,356,436 1,352,039 1,525,941 1,668,284


1,132,667 1,198,393 918,350 932,237 1,077,973 1,269,632 500,829 518,275 510,983 521,318 427,667 498,819 4,950 5,971 3,922 4,397 3,089 3,162 1,638,446 1,722,639 1,433,255 1,457,952 1,508,730 1,771,613 3,499,020 3,689,616 3,119,693 3,138,608 3,612,040 4,024,396


222,342 235,085 56,333 56,422 95,370 104,767 3,721,362 3,924,701 3,176,026 3,195,030 3,707,410 4,129,163


306 42,679 129,912 0 109,925 282,823

768 42,254 139,938 854 132,300 316,114

603 43,424 101,400 0 121,612 267,039

822 49,027 111,950 0 103,626 265,425

337 19,408 140,174 0 115,797 275,716

980 26,735 153,301 3,320 165,318 349,654


315,210 298,791 291,650 212,403 382,621 356,194 636,333 670,623 780,434 930,209 835,030 828,463 1,234,366 1,285,528 1,339,123 1,408,037 1,493,367 1,534,311


11,049 13,694 11,791 25,086 300 300 1,245,415 1,299,222 1,350,913 1,433,123 1,493,667 1,534,611 21,824 21,524 0 0 0 0 1,267,239 1,320,745 1,350,913 1,433,123 1,493,667 1,534,611



1,240,866 1,213,257 2,454,123 2,475,947

62 32 39 34 33

% % % % %

1,275,304 877,978 802,569 1,250,350 1,385,339 1,328,651 947,134 959,338 963,394 1,209,214 2,603,956 1,825,113 1,761,907 2,213,743 2,594,553 2,625,479 1,825,113 1,761,907 2,213,743 2,594,553 149,833 -63,206 380,809

67 31 39 34 33

55

% % % % %

81 33 54 43 43

% % % % %

81 28 64 45 45

% % % % %

48 31 55 40 40

% % % % %

60 31 47 37 37

% % % % %

Table 53

Statement Of Cash Flows Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35

8

9

32,031

30,589

34,312


1,483,818 11,810 -1,272,805 -89,779 -4,580 128,463

1,241,914 14,246 -1,152,942 -80,236 -888 22,094

1,689,336 9,587 -1,371,209 -75,485 -4,217 248,012


9,241 3,589 247 20,763 872 -48,165 -78,102 -406 -14,555 -36,698 -26,100 -6,127 -175,440

19,438 1,402 58,782 3,773 -26,644 -48,784 -13,969 -38,184 -51,552 -3,773 -99,510

9,596 5,467 7,621 38 -49,845 -116,435 -44,184 -53,854 -16,579 -3,062 -261,237


366,725 4,721 -311,126 -6,063 54,259

615,259 1,160 -538,917 77,502

370,031 -554 -330,470 -13,878 25,128

7,282

86

11,903

39,313

30,675

46,214


Net change in cash balance Ending cash (farm & nonfarm)

56

Table 54

Financial Standards Measures Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35

8

9

1.50 159,068

1.24 63,192

1.67 234,844

35 % 65 % 55 %

45 % 55 % 81 %

38 % 62 % 62 %

3.6 % 1.9 % 7.3 % 104,692

-1.6 % -13.5 % -3.9 % -9,652

7.1 % 9.8 % 14.5 % 185,032


112 % 18,769

41 % -107,658

168 % 119,470


49.2 80.8 7.9 4.3 7.0

41.8 87.4 7.4 6.0 -0.8

49.0 77.4 7.2 4.3 11.0

Number of farms Liquidity Current ratio Working capital Solvency (market) Farm debt to asset ratio Farm equity to asset ratio Farm debt to equity ratio Profitability (cost) Rate of return on farm assets Rate of return on farm equity Operating profit margin Net farm income

57

% % % % %

% % % % %

% % % % %

Table 55

Operator and Labor Information Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt) Avg. Of All Farms

Low 25%

High 25%

35

8

9

1.8 50.9 28.6

2.1 48.9 28.8

1.6 49.3 26.6

86,991 2,146,321 722,283 1,424,038 1,435,809

29,737 1,503,543 674,411 829,133 829,133

150,971 2,654,462 986,535 1,667,927 1,667,927

820,106 762,852 57,254

583,170 587,712 -4,542

1,076,475 957,525 118,949

6,458 51,603

6,704 38,176

6,163 51,237

370.9 660.5 390.1 270.4 6.6

359.8 475.8 315.6 160.2 4.4

369.5 1,063.0 689.0 374.0 2.1

34 5,583 19,356 24,940 3,013 46.70 18.42

8 5,631 15,400 21,031 2,650 43.47 -1.71

9 4,879 23,041 27,920 3,136 48.99 37.93

17 2.3 -

6 2.3 -

3 -


58

Table 56

Financial Summary Michigan Dairy, 250 Plus Cows, 2003 (Farms Sorted By Rate of Return on Assets - Mkt)


Avg. Of All Farms

Low 25%

High 25%

35

8

9

1,483,818 1,272,805 211,013 12,473 -118,793 104,692

1,241,914 1,152,942 88,972 -7,293 -91,331 -9,652

1,689,336 1,371,209 318,126 -12,745 -120,350 185,032

35,717 3.6 % 1.9 % 7.3 % 49.2 %

-60,220 -1.6 % -13.5 % -3.9 % 41.8 %

108,284 7.1 % 9.8 % 14.5 % 49.0 %

79,083 5.6 % 5.8 % 16.9 % 32.8 %

-102,783 -0.8 % -5.6 % -2.6 % 29.2 %

288,537 11.5 % 15.9 % 32.1 % 35.8 %

1.50 159,068 10.7 % 111.6 % 85.1 % 4.3 %

1.24 63,192 5.1 % 40.6 % 93.4 % 6.0 %

1.67 234,844 13.9 % 167.5 % 81.8 % 4.3 %

35 2,436,929 1,285,528 2,574,526 1,299,222 1,275,304 34,438 53 % 50 % 50 %

8 2,191,533 1,408,037 2,235,692 1,433,123 802,569 -75,409 64 % 61 % 64 %

9 2,878,265 1,534,311 2,919,949 1,534,611 1,385,339 134,989 53 % 54 % 53 %

35 3,689,616 1,307,053 3,924,701 1,320,745 2,603,956 149,833 35 % 34 % 34 %

8 3,138,608 1,408,037 3,195,030 1,433,123 1,761,907 -63,206 45 % 43 % 45 %

9 4,024,396 1,534,311 4,129,163 1,534,611 2,594,553 380,809 38 % 40 % 37 %

11,810

14,246

9,587

731 1,335 713 716 -

791 1,340 671 655 -

619 1,665 1,072 1137 -

59