Agricultural Budget Calculator - Overview

Department of Agricultural Economics Author

08/25/2020 Added

222 Plays

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Glennis McClure provides a general overview of the new web-based Agricultural Budget Calculator.

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[00:00:04.110]Glennis McClure: Hi I'm Glynis moncler extension educator and farm and ranch management analyst and the Department of Agricultural Economics at the University of Nebraska, Lincoln.
[00:00:14.519]Glennis McClure: Today, I'm going to provide a brief overview of our new AG budget calculator program. It's a program that you can use to
[00:00:23.010]Glennis McClure: Identify your different enterprises crop enterprises eventually we'll be adding on livestock enterprises.
[00:00:29.250]Glennis McClure: And so that you can customize and project ahead and do some budgeting for enterprise, the university Nebraska extension and Department of Agriculture economics have prepared.
[00:00:39.930]Glennis McClure: Crop budgets, dating back to at least the 1970s when spreadsheet software was developed the crop budgets were prepared using Excel.
[00:00:49.470]Glennis McClure: These budgets have always been meant to be guides for producers to follow along with and to understand the cost factors that make a cash and economic cost of production.
[00:01:00.510]Glennis McClure: Now that we have technology that will allow us to enter own data online and produce financial reports online enterprise budgeting is possible to
[00:01:11.160]Glennis McClure: Learning to use a system like the new AG budget calculator, otherwise known as the ABC program to us will assist you and customizing your farm and ranch enterprise budgets.
[00:01:22.770]Glennis McClure: We sincerely appreciate the initial funding received from the Nebraska. Soybean Board to launch the development of the new program by the Department of Economics, that you are now.
[00:01:34.440]Glennis McClure: At this point in the program's development all information that can currently be entered into the at some budgets that we have now.
[00:01:44.280]Glennis McClure: Those can that information. Now, can be entered into the ABC program plus more
[00:01:50.010]Glennis McClure: In addition to field operation expenses material inputs in service costs land costs and overhead charges. We can now project revenue for the enterprise.
[00:02:01.860]Glennis McClure: Enterprises include that in our enterprise reports. So you can see now projected net returns above cash costs and net return of total costs as seen in the example on the screen.
[00:02:16.140]Glennis McClure: This is happens to be a soybean budget I've called it's an irrigated budget no tail with the self quarter hundred 55 acres 78 bushels. And so we have here.
[00:02:29.850]Glennis McClure: An example of this enterprise report. So we'll go back and we'll show what went into this report, but you can see that we have our operating costs spelled out
[00:02:42.360]Glennis McClure: The net return above operating costs. I've got the gross revenue up here. So there is a place to edit revenue and add that information in. So once we have that, we can see this report doing
[00:02:54.450]Glennis McClure: Showing us the net returns and also cash overhead costs are included, so that we get total cash costs $4 and 57 cents in this case per bushel.
[00:03:05.100]Glennis McClure: Go on down to add in non cash overhead costs just appreciation for our equipment opportunity costs land opportunity costs.
[00:03:14.400]Glennis McClure: And we get to a total of $7 and 42 cents per bushel. And you can see the net returns
[00:03:20.940]Glennis McClure: So this is sort of the end product of what we're doing with a new ABC. So let's take a look very briefly at what goes into into this. Now, I've already logged into the system.
[00:03:31.890]Glennis McClure: All of our users will have a use their own user ID, which is your email, and then you build a create a password. And so all information that you enter
[00:03:41.850]Glennis McClure: Is yours and yours alone. The university does not plan to use any one individual's information that is put into the system simply because we can't verify
[00:03:51.960]Glennis McClure: What information is gone into each of these budgets and use those will plan to use producer groups and and develop some representative budget. So our
[00:04:01.530]Glennis McClure: Budgets we plan to populate into this system. So they're there that you can call up and you might be able to just duplicate or you might identify some of our budgets duplicate and put into your own system.
[00:04:14.640]Glennis McClure: But so I've logged in, and I want to go into manage the enterprise's I could create a new brand new or it could duplicate one that I've already entered. So if I've got, let's say,
[00:04:26.040]Glennis McClure: A couple fields of corn that are very, very similar. I could duplicate the first one that I've entered into the second and go in and make a few changes. So that saves time
[00:04:35.280]Glennis McClure: In the long run, but let's take a look at what we have in this, but I have so far into this program.
[00:04:42.930]Glennis McClure: For the budgets that I've entered I've entered seven budgets so far. So we've got three corn budgets and force way being budgets, I've got him identified
[00:04:51.990]Glennis McClure: With different cropping practices. I've got, you know, in different farms and fields to if I want to break it down to that extent, or I could just say all my dry land corn.
[00:05:01.860]Glennis McClure: Is one enterprise my irrigated corn is another same way of soybeans dry land your gated so on. But if you really wanted to look more precisely at what goes on with different farms and fields as far as enterprise budgeting goes, that's really very, very easy to do with this system.
[00:05:21.060]Glennis McClure: I'm going to focus on this last soybean irrigated budget, which is a no tail on the south quarter, and I'm going to show you some information that I've managed to that just in brief, so you can see sort of how this thing works.
[00:05:34.980]Glennis McClure: So I click on Edit, edit enterprise. And so I'm in this situation now where I go ahead and and if I wanted to change the name as more details or call it something else I could
[00:05:46.740]Glennis McClure: I'm projecting the head for 2021 here's the crop information. It's an irrigated field. It's an on owned ground. I could have could have been on cash lease.
[00:05:58.080]Glennis McClure: Or Shirley's I've entered an opportunity cost and equivalent cash rent.
[00:06:04.020]Glennis McClure: Since this is owned ground and also the real estate taxes that I expect to pay and some other expenses my crop insurance, my, my crock scouting and so on can be entered into this area.
[00:06:15.750]Glennis McClure: And so that's generally information about the budget, but the way we've organized this budget system is that we really feel like producers know
[00:06:26.490]Glennis McClure: What they do it field operations to get to the ultimate goal of producing the crop. So here's where we enter a lot of details.
[00:06:35.550]Glennis McClure: And we start by thinking through whatever. What are the field operations that I'm planning to do or that I normally do, starting with sort of US spring burn down spray since is a no to know till field.
[00:06:48.330]Glennis McClure: We plant or drill. In this case, we come back with some herbicide and come back with some aerial spraying for some insecticides, herbicides, and we combine and then we we track the crop, you know, in
[00:07:01.650]Glennis McClure: So I'm just going to have to take a look at this spray herbicide that we do in may soon after planting or, or, you know, right along with planting.
[00:07:11.130]Glennis McClure: I'm going to show you what we've got into that field field operation details.
[00:07:16.920]Glennis McClure: So again, it's spray herbicide recovering hundred percent of our field. If this was a custom service. I would check here and then I would add information about the cost of that custom service and what materials and inputs were provided
[00:07:30.540]Glennis McClure: With this operation. But in this case, I'm doing it myself. So I've had identified me as the owner, operator, I've gotten the background under Labor information details about
[00:07:42.540]Glennis McClure: What, how I value my labor my input into the farm. How many hours and so generates back a value for the labor that's provided into this field operation.
[00:07:55.830]Glennis McClure: I've identified my big green tractor that are used for most all of my operations. I've got that information in and I'll show you in a little bit where that goes, but
[00:08:05.610]Glennis McClure: We've got that identifies the per unit, the boom sprayer and this happens to be University, one that was in the system that you could add your own or take this particular boom sprayer and change it.
[00:08:16.890]Glennis McClure: For your details so then we go down and then we add in our materials and inputs for this particular operation. So these are the products that were entered
[00:08:26.610]Glennis McClure: And again, if I use liberty several times over several different fields that information is in my inputs, my materials and inputs. I can call it back up and use it.
[00:08:37.350]Glennis McClure: And not have to re enter the details of what it cost per unit. All I would need to do you say this is how much I apply when it comes to this particular field operation. So that's
[00:08:49.530]Glennis McClure: Looking at one of the operation details.
[00:08:53.280]Glennis McClure: So I've talked a little bit about managing the inputs and these are, this is the drop down where they're different inputs and
[00:09:01.440]Glennis McClure: With this means is the annual rate. So if I as I look to 2021 I can say, well, I believe my gasoline costs are going to be
[00:09:11.370]Glennis McClure: Approximately this I can estimate what my diesel cost is and put that in and then every time I use diesel that price will be utilized in the calculations in the background as well as
[00:09:25.500]Glennis McClure: I could put in my operating interest expense and even my ownership expense can be added and my interest rate on ownership could be added in. So
[00:09:37.980]Glennis McClure: So that's what we talked about with annual rate power units is another area where we can put in our various are basically the the list of tractors or combines
[00:09:49.830]Glennis McClure: Would be there so that that they're in the list and I can call them up as needed. I'll go ahead and click on that and I'll show you.
[00:09:56.880]Glennis McClure: Here in this particular with the system that I've been using in my account. I've got again that big green tractor. So, the details are here. I could go in and switch those details.
[00:10:07.470]Glennis McClure: I've got a case KH case ah tractor. I have a diesel combine and some other
[00:10:14.160]Glennis McClure: Items that actually are utilized and our university budgets. So a little to take a quick look here at this power unit. The big green tractor.
[00:10:24.150]Glennis McClure: We identify it by its size. It's a diesel. You know how many hours do I use that particular track to PR here with the tack on it, basically, to tell us how old it is the age, how long we plan to keep it because, from this we want to figure out what the fuel usage is for different operations.
[00:10:46.890]Glennis McClure: And also our repairs our fuel our depreciation costs, you know, are generated from this information behind the scenes are formulas with from the association of agricultural engineers.
[00:10:59.550]Glennis McClure: And so we utilize those formulas, you know, in the program. But let's say this just comes up with
[00:11:05.640]Glennis McClure: A repair costs, click off this so this repair cost was a lot more in this case, say, No, no, no. I spend more like 70 $500
[00:11:14.310]Glennis McClure: For this particular power unit. And so you can put your own information if some of the calculations don't come out.
[00:11:20.610]Glennis McClure: The way you anticipate or you think that they should be. So again, I'm going to go ahead and save that pair unit information.
[00:11:28.140]Glennis McClure: And, you know, there's that list of power units. Same thing I'd have a list of implements that it could call from for different operations close that up.
[00:11:39.570]Glennis McClure: Materials and inputs. I've got a quite a list that I started with materials and input. So each time I use particular for laser or chemical I can go ahead, go back and find that information and just put the amount pipeline and pre to the different operations that I do my list of labor.
[00:11:58.230]Glennis McClure: The different irrigation systems that I have. So once that information is there again, you can utilize it for different operations.
[00:12:06.180]Glennis McClure: Or enterprises as needed. Alright, so we've looked at the Manage enterprise. We've looked at the Manage inputs.
[00:12:14.070]Glennis McClure: We do have a whole farm feature that we're working on. And what that will do is will bring all of the enterprise's together. So you'll have a report.
[00:12:21.600]Glennis McClure: That shows like all your seat costs, all your fuel costs, all those types of things, you'll be able to reconcile back so that some of the
[00:12:29.700]Glennis McClure: You know your grand total of fuel with all the different enterprises added in is that
[00:12:35.070]Glennis McClure: Realistic is your repair costs. Right. And that's with your crop enterprises and eventually your livestock enterprises. Another really nice feature that will have
[00:12:45.180]Glennis McClure: If we know if you mark when you are paying for expenses or you're receiving revenue will be able to generate a cash flow.
[00:12:52.860]Glennis McClure: And so again, that would be a cumulative of all the different enterprises that you have
[00:12:58.320]Glennis McClure: Now we've just got the other feature here right now of the university budgets, so we'll repopulating the system with our current budgets. So you call up one of our budgets and use one of our budgets, make some tweaks and changes.
[00:13:10.650]Glennis McClure: And take a look at how that enterprise budget might be for your system.

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Agricultural Budget Calculator - Overview

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