2021 Crop Budgets and the new Agricultural Budget Calculator Program (Dec. 3, 2020 webinar)
With Glennis McClure, extension educator, farm and ranch management analyst, University of Nebraska-Lincoln Department of Agricultural Economics.
Glennis McClure will present on updates to this year’s crop budgets, how the projections were developed and how the information can be used by farm managers in their operations. The 2021 budgets are available in PDF format, as well as Excel, which can be updated by the user to match crop production operations and expenses. They are now available atcropwatch.unl.edu/budgets and include 83 production budgets for 15 crops, as well as information on budgeting procedures, standard costs used and a production cost summary.
McClure will also demonstrate the new Agricultural Budget Calculator (ABC) — a new web-based enterprise budgeting program developed by the university’s Department of Agricultural Economics. Currently in the testing phase, the ABC program allows managers and producers to enter their own prices and expenses, plus projected revenue, to calculate returns above cash and all costs. The program allows for ease of use in customizing crop enterprise budgets.
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[00:00:38.070]Larry Van Tassell: Good afternoon, and thanks for joining our webinar today. I'm Larry Van Tassel. Head of the Department of Agricultural Economics at the University of Nebraska week and
[00:00:48.540]Larry Van Tassell: This series of webinars is produced by our by our extension farm and ranch management team and typically runs every Thursday at noon.
[00:00:57.990]Larry Van Tassell: You can find recordings of the sessions a schedule of upcoming webinars and other resources at farm. Got you. And aol.edu
[00:01:08.310]Larry Van Tassell: We'd like to quickly highlight the investor rural response hotline in times of stress, knowing when to reach out is essential.
[00:01:17.040]Larry Van Tassell: The Nebraska rural response hotline can provide mental health counseling information regarding legal assistance financial clinics mediation and more the hotlines toll free number is 1-800-464-0258 more resources related to stress and wellness can be found at rural wellness.us al.edu
[00:01:43.560]Larry Van Tassell: Will be happy to answer as many questions as we can, at the end of today's presentation, please enter any question you have in the Q AMP a box at the bottom of your screen at any time throughout the webinar.
[00:01:56.610]Larry Van Tassell: For many years, the University of Nebraska, Lincoln has produced annual crop production budgets to aid Nebraska producers in managing their costs and developing marketing plans, the
[00:02:09.300]Larry Van Tassell: Budgets are now available in PDF format as well as an extension, as well as in Excel workbook work books which can be updated by the user to match their personal situation.
[00:02:23.430]Larry Van Tassell: They include at three production budgets for 15 crops as well as details on budgeting procedures standard cost used and a production costs summary.
[00:02:35.730]Larry Van Tassell: We're also excited today to present the next phase of how this valuable information can be applied.
[00:02:43.170]Larry Van Tassell: ABC the agricultural budget calculator is a new web based enterprise budgeting program developed by our department.
[00:02:52.590]Larry Van Tassell: This program allows users to develop their own cost and return estimates by modifying a UL budget or starting from scratch with their own production operations prices and expenses.
[00:03:07.050]Larry Van Tassell: ABC is currently in its testing phase, but we're looking forward to sharing details with you today as we prepare for its full launch
[00:03:17.340]Larry Van Tassell: To present, we are joined by Glynis mclemore an extension educator and farm and ranch management analyst who is one of the co authors of the annual crop budgets and a leader in the development team behind the agricultural budget calculator program, Gladys, I'll turn it over to you.
[00:03:39.870]Glennis McClure: Thank you, Larry.
[00:03:44.100]Glennis McClure: Okay, hopefully you can see my screen. Alright, we'll go ahead and get started. So I want again. Thanks, Larry. I appreciate the interest and expertise you bring to our work.
[00:03:54.480]Glennis McClure: In working with enterprise budgets and your vision as we continue to develop the new egg budget calculator program. And we'll talk more about that as Larry said in the program later also join joining us today is Robert Klein.
[00:04:10.350]Glennis McClure: Bob Klein is an emeritus professor and extension cropping system specialist based out of our University of Nebraska North Platte center.
[00:04:19.710]Glennis McClure: And Bob goes back many, many years with the with the crop budgets and he says he thinks maybe 40 years or so.
[00:04:27.030]Glennis McClure: And and he's worked with other crops specialist and egg. Egg economist on the UFO crop. I just for all those years. And since I've been at the university, we've worked together on the crop budgets. I appreciate his help.
[00:04:40.890]Glennis McClure: And it. This is a good day to do this because crop watch just launched our 2021 or just published online. Our 2021 budget. So we're going to talk about what is contained in those budgets today and
[00:04:59.220]Glennis McClure: And you will learn more. And then also, like, say, Larry said the we'll take questions. And so, Bob's on and I'm on and I'm glad to have the expertise of Larry on as well. In case though we all get stumped. So anyway,
[00:05:12.150]Glennis McClure: Alright, so with today's presentation just the general outline is we're going to talk about briefly what's. Why is it important to know your cost of production.
[00:05:23.910]Glennis McClure: We're going to talk about the University of Nebraska crop budgets are updates and the components of those crop budgets and then visit a little bit about key data that goes into enterprise budgeting and then, like I said, We'll work we'll talk about the new egg budget calculator.
[00:05:45.000]Glennis McClure: Most of our information we have Ryan Evans is our communication specialist and ag economics and he's developed a farm W and l.edu website where we have a lot of our resources.
[00:05:57.390]Glennis McClure: There and like said our crop budgets for our published first on crop watch with university and Ryan has already linked
[00:06:05.310]Glennis McClure: Those to our farm W and l.edu page. So I have the opportunity to work on crop budgets and also life suck budgets and the custom rates report, and we just put out a 2020 customers report, we do that every other year so that those resources, along with just
[00:06:22.770]Glennis McClure: A bunch of other resources where I work with my colleagues in extension and ag economics are on that site.
[00:06:32.610]Glennis McClure: So why, why should you know and care what your cost to production is
[00:06:40.380]Glennis McClure: So knowing our costs to production and breakeven levels provides a guide or an anchor so we can make information based pricing and marketing decisions.
[00:06:52.110]Glennis McClure: The information provided in enterprise budgeting can help us compare profitability of our various enterprises.
[00:06:59.910]Glennis McClure: For those enterprises that provide the most promising returns. This might be where we want to focus more of our time and our resources, of course.
[00:07:08.850]Glennis McClure: Understanding production costs can help us compare from here to here and benchmark our enterprise information against other producers. This can guide us and making decisions on cost controls what to produce our machinery investments and inputs to us just as some examples.
[00:07:30.330]Glennis McClure: So with the
[00:07:32.820]Glennis McClure: Budgets, we are now at three University budgets and that represents approximately 15 crops. We even have
[00:07:40.080]Glennis McClure: Alfalfa establishment in there. We have some couple, couple cover crops included under the miscellaneous category. So there's about 15 crops amongst those 83. And so obviously there's quite a few different corn budgets.
[00:07:54.390]Glennis McClure: We've got about 10 soybean budgets, we added a few of those last year. And so in I think Bob again for
[00:08:03.540]Glennis McClure: You know, sort of understanding what different cropping systems are out there, and what kind of budgets, we ought to be doing and showing folks in Christ, Nebraska.
[00:08:12.540]Glennis McClure: So the university by just says Larry said are. We've got them so that you can print them off easily in PDF format.
[00:08:20.400]Glennis McClure: That you an many producers have used the Excel format in non into modify the university budgets as their own. So we have them both in Excel and in PDF
[00:08:31.080]Glennis McClure: And then, of course, this year we're adding on the new egg budget calculator. So it's still important that the university produces our own
[00:08:40.050]Glennis McClure: Crop budgets, so that those crop budgets are also entered into the new new egg budget calculator so producers can go in and pull down those budgets.
[00:08:50.010]Glennis McClure: And then go in and modify those we think it's going to be. We definitely believe it's it's going to be easier and easier to customize the
[00:08:58.890]Glennis McClure: Budgets using the new egg budget calculator, but our information is there as a guide and then you can go in and make adjustments on your own or as Larry said to
[00:09:08.130]Glennis McClure: We can you can you can start from scratch and just build your own using the new system. So just to take a look at
[00:09:16.590]Glennis McClure: Here's a list of this is kind of what that page looks like when you look at the crop watch or the farm W and l site where we have our budgets.
[00:09:24.570]Glennis McClure: And you'll see the list of the different cropping systems there. And I'm just going to see get my pointer here. All right, so hopefully you can see that
[00:09:37.020]Glennis McClure: Where we have the different crops, we have the PDF format or you could just click on an Excel file and pull that down. Basically it downloads.
[00:09:45.510]Glennis McClure: Then you can go in and work with that file and make some changes and utilize what we've again this is what we've done in the past. What's nice also with the crop watch page is that they've got
[00:09:57.840]Glennis McClure: prior years of budget. So if you want to look back at what we did with those budgets in the past, you can make some comparisons on those. So again, there's the website. But again, it's just easy to Google University Nebraska crop budgets and you'll find it on the crop watch page from there.
[00:10:17.400]Glennis McClure: So I just made a few notes about some every year there's things that change and course that that
[00:10:25.350]Glennis McClure: Factors into what our bottom line costs are cash costs and our total costs are for each of the crop budgets.
[00:10:33.000]Glennis McClure: But I want to make note of some of those things that maybe were a little more significant. This year, things that we did with those budgets that would change them from the 2020 budgets, at least.
[00:10:44.370]Glennis McClure: Last year we used about $2 and 27 cents was the fuel price and obviously fuel has oil prices have changed throughout this year.
[00:10:55.290]Glennis McClure: And so we put in a lower fuel price. We've got about $1 50 and for diesel prices. And so what that does.
[00:11:02.310]Glennis McClure: Is it lowers our machinery operation costs and also of course when oil prices are are lower. Sometimes that affects our herbicide costs and our fertilizer costs as you look at those. You'll see some differences in prices with those
[00:11:16.350]Glennis McClure: Also every year, there's some new products that come on board or products that are used a little bit more readily
[00:11:24.270]Glennis McClure: And Bob and the crop specialist. Look at that information and we might add in some materials and products or make some changes. So some of those changes. Some of those costs of change. And so in the data we've got those those changes included
[00:11:39.570]Glennis McClure: land prices land prices were just adjusted slightly upward and we based that information on the Nebraska real estate report that's that comes out every year.
[00:11:50.010]Glennis McClure: My our colleagues here at University Extension in ag economics. And so I Annette, you know, as I look at those.
[00:11:58.140]Glennis McClure: I think every one of those land values across the state did increase a bit and we're probably in that 3% range or so as as what those
[00:12:06.300]Glennis McClure: Those, those went up slightly. So that's going to make some difference in opportunity costs of land.
[00:12:12.660]Glennis McClure: And then real estate tax increase or decrease, actually. So we do the, the legislature enacted.
[00:12:20.400]Glennis McClure: More of a real estate tax credit. So we figured about a point 1% decrease. And so if you add take that land value times real estate tax rate.
[00:12:32.640]Glennis McClure: You'll see a slight decrease in that based on those tax credits. And again, we don't know for certain what those how that's all going to work out.
[00:12:41.040]Glennis McClure: But we did add that factor in this year. And then also, most of other costs, you know, increase. So we would have had an increased our overhead costs this year from $20 to $25 an acre. So that was an increase of $5 per acre. So that affects the bottom line costs, of course, to
[00:13:04.200]Glennis McClure: We did add one budget for 2021 and that is a spring wheat budget, we did not have spring we didn't before. And Bob's heard from
[00:13:14.430]Glennis McClure: Other producers and some of our crops specialist that we should be. We should have added that in. So that's at budget number 74
[00:13:22.140]Glennis McClure: And it's a Southwest Nebraska know till we'd after row crop budget with 40 bushel yield and it's a dry land. And so those the cash costs for that is projected at $4 and 25 cents a bushel and total cost of $6 for that particular budget that was added this for this new year.
[00:13:44.400]Glennis McClure: So we have, I kind of went through some of our main or primary crops corn is all across the state. And of course, we have obviously Varian
[00:13:57.390]Glennis McClure: land values and different cropping practices with dryland corny or gated corn so on. So I've got here direct corn here soybeans here and then we so I just kind of show you if I was to average out all of the dry land corn budgets which is about
[00:14:13.860]Glennis McClure: 10 to 12 of those we'd be looking at about 150 Boys, show $2 and 35 cents for cash costs and $3 and 49 cents for economic costs. So we'll talk a little bit about
[00:14:26.430]Glennis McClure: You know opportunity costs are added into the economic side of things, and that is ownership costs and machinery and land.
[00:14:35.970]Glennis McClure: And in the long run, you know, from the economic standpoint, you want to be covering your economic costs or your total cost per bushel. And so, so you can see what those are here, as reflected
[00:14:48.390]Glennis McClure: Irrigated corn. Corn dealers and 26 cents 316 and obviously the per bushel, you know, if we can keep other costs in line on our irrigation expenses and so on. We're going to see where
[00:15:02.970]Glennis McClure: In this case, the cash cost per bushel is a little less than the economic costs, that's one of the questions. A lot of people sometimes have is, you know, yeah, cost me to irrigate but if I'm producing more. And again, some of this land is going to be some of your, you know, higher valued land.
[00:15:20.670]Glennis McClure: You know, an irrigation. And so that's going to make some difference in all the costs can contain there and then you'll see the dry land soy.
[00:15:27.750]Glennis McClure: soy bean and irrigated soybean mount a dollars and 17 cents total costs and dry land and 775 on the irrigated we're looking at 45 bushel versus 73 bushel. And, you know, think back about where prices were just a few months ago, it was, it was kind of tough to even cover.
[00:15:49.050]Glennis McClure: You know, our costs with some of the prices. Now we've seen an uptick and prices. So that's a good thing. So that's going to help with some should help with some profitability.
[00:15:57.180]Glennis McClure: If you can do some good good things with your pricing and marketing and then also then with WHEAT WHEAT, of course, is a, you know, still very prevalent.
[00:16:07.320]Glennis McClure: Particularly in the southwest and western part of the state. And we have those budgets here as well show and I just did. Again, just kind of did some quick calculations to show you
[00:16:17.880]Glennis McClure: What some of those averages would be if we put those all of those week budgets together and so on. Okay, so I picked
[00:16:28.080]Glennis McClure: Just a few of these budgets wheat soybeans and corn again and I'm showing you the numbers here. So I'm actually picking out some individual budgets that we did.
[00:16:36.390]Glennis McClure: And just showing you sort of how look how the changes are from the 2020 to 2021. So we've got cash costs here total cost on this side and so
[00:16:49.110]Glennis McClure: In all of these cash cost per bushel dropped as I look through these particular budgets, I see where fuel costs in field operations dropped in some input costs dropped, especially in fertilizer and in some chemical costs.
[00:17:03.990]Glennis McClure: On the total cost side of things, per bushel.
[00:17:08.490]Glennis McClure: With with exception of just one soybean budget again those total costs drop to total cost changes were a little less dramatic in these budgets his land values were increased around 3%
[00:17:21.480]Glennis McClure: And equipment gets more expensive to replace. And so, though, that factors into ownership costs is which is part of your total cost.
[00:17:29.190]Glennis McClure: And then as machinery and equipment list prices are updated this drives that machinery ownership or depreciation calculations, a bit. So that's kind of why we see a difference in we see less of a change
[00:17:40.440]Glennis McClure: From the total cost from 2221. All right. And so, but again, as I, as I mentioned, it's a good time to remind you that in the long run. We really want to look at covering all costs, you know, economically, and that would be so that we can replace our equipment and
[00:18:00.750]Glennis McClure: You know, and continue to do business in the long run.
[00:18:06.630]Okay, let's see.
[00:18:15.030]Glennis McClure: Alright, so my
[00:18:17.820]Glennis McClure: PowerPoint looks like. Are you still with me. Okay.
[00:18:23.880]Glennis McClure: Alright, so I wanted to share with you do. Are you looking at the the right screen. Now I had, I had a little blip, for whatever reason, my PowerPoint kind of looked down on me. But anyway, good. You can see it. So I wanted to show you
[00:18:40.080]Glennis McClure: We have for each of the crop budgets, we have one page. So it's kind of nice in that if you're going to print them off. You can print off one page. And I kind of split it out here, though.
[00:18:49.020]Glennis McClure: The top part of each of the budgets of course we do identify what the crop budget is and then and in the yield and so on. And then we have
[00:18:58.680]Glennis McClure: A section on field operations. And you can see what's included if you can see all of these figures.
[00:19:05.670]Glennis McClure: This is for this. We've been budget number 63 so we have labor in our operations fuel repairs and ownership costs for under the operations field operations section and then we have materials and services. So
[00:19:21.750]Glennis McClure: What's applied what's used in production of that crop. And so there's these matchup
[00:19:29.250]Glennis McClure: In that like this spray burn, burn down herbicide field operation one basically utilizes these three products here.
[00:19:38.640]Glennis McClure: You know, in that, in that operation and then we go on to enter in interest and operations capital we figured in five and a half percent for six months. So if you're carrying costs.
[00:19:52.500]Glennis McClure: You know, at the bank or whatever paying interest that figure is included there. Then I mentioned that we have an overhead costs. There's that $25 per acre.
[00:20:02.010]Glennis McClure: And then we have real estate opportunity and real estate taxes. So if you're an owner, the value of your property of your land times in 3% opportunity cost. You know calculates in this case out to be about $184 per acre. And then we figured, our
[00:20:20.220]Glennis McClure: Real estate taxes on top of that, for your land for your land costs and then those total cost divided by the per bushel, or the bushels healed. We've got a cash cost of 49 and $8 35 cents in this case was soybean budget number 63
[00:20:41.970]Glennis McClure: So you might ask what you know you. We understand cash cost me understand that we have to pay for fuel we understand we have to pay for, you know, we do have labor costs. We do have
[00:20:53.910]Glennis McClure: Either our value of time or we're paying someone to do the work and those kinds of things didn't all the input costs are generally
[00:21:05.010]Glennis McClure: And I just want to share with you very quickly that machinery and equipment ownership costs include depreciation and opportunity interest costs. So you can see that, you know, our annual depreciation. You know, it's figured on you know purchase price and salvage value versus the use
[00:21:25.950]Glennis McClure: After we figure a power unit an implement is added. And so then you've got your, your depreciation for both the pair unit and the implement and then we we figured out what that what that is pretty
[00:21:42.030]Glennis McClure: Well as an annual opportunity cost of interest. So we do figure in purchase price of the equipment.
[00:21:50.190]Glennis McClure: Plus the salvage value divided by two times opportunity cost percentage to come up with that. So that's what's included in when you see the ownership costs in our budgets. That's what we are figuring
[00:22:03.330]Glennis McClure: And then we do utilize I want to mention that we do utilize formulas, based on the American Society of Ag and biological engineers, so
[00:22:12.300]Glennis McClure: There are formulas in the background doing that those kind of those calculations and then we have
[00:22:18.870]Glennis McClure: Land opportunity cost, which I've already mentioned, but it can be the value of land per acre times that opportunity cost percentage and then for the 2021 budgets, we use that 3% opportunity costs or in
[00:22:35.970]Glennis McClure: That rental value per acre.
[00:22:38.910]Glennis McClure: As an opportunity cost.
[00:22:43.110]Glennis McClure: So again, I took that that soybean budget number 63 and just to kind of show you again. This isn't irrigated budget and so
[00:22:54.210]Glennis McClure: Real Estate costs land the opportunity cost. In this case, amount to 49% again, you're probably using higher value land for the irrigation, in this case.
[00:23:04.080]Glennis McClure: And you can see the breakdown seed and pesticides field operations and so on. We got $313 on cash side and $534 on the total cost side to 64 bushel.
[00:23:17.760]Glennis McClure: Yield. In this case, and so we get that we get that the cash cost per bushel and economic cost per bushel as has set, but you can kind of take a look at the breakdown
[00:23:27.510]Glennis McClure: Of costs. And so there's a big chunk of it right here. That is real estate opportunity and real estate taxes, about half of that budget is there. And then we've got, you know, the seed herbicide and other other items that go into that into that those costs.
[00:23:45.540]Glennis McClure: Then I also took a look here, added corn budget. This is a dryland budget. So we're looking at land of probably a little less value in this case. And so together. The real estate. I've got them here, real estate an opportunity costs together amounted to 29% and this budget.
[00:24:04.860]Glennis McClure: And so you can see seed and pesticide. Again, we're talking about corn versus soybeans. So we might have some different costs.
[00:24:12.300]Glennis McClure: Obviously, different costs there and herbicide and also fertilizer included
[00:24:16.860]Glennis McClure: And so we with this particular budget, which is a dry land budget hundred and 45 bushel yield. We had cash cost of $2 and 28 cents and economic costs $3 and 19 cents. Just to give you a view of
[00:24:30.780]Glennis McClure: You know all the budgets again there's 83 budgets they're all they all represent some different inputs different land values in that type of thing. So you're going to see different different figures across the board. So
[00:24:45.330]Glennis McClure: I really just wanted to spend a moment and talk about again just kind of summarize what goes into the Enterprise budgeting and as you think about doing your own what kinds of information do you have to have available.
[00:24:59.310]Glennis McClure: So obviously, you're going to have your cropping system information or in the case of livestock again. How many had, what is your, what is your system. I guess with your livestock.
[00:25:10.440]Glennis McClure: And what are the annual rates and prices. Again, we put in a diesel price for the year we put in an interest price for the year. And so what are those. What are those
[00:25:20.940]Glennis McClure: prices that are those rates that are going to affect some of your costs throughout the year.
[00:25:26.220]Glennis McClure: And then the way we look at our budgets, as you can see is field operations and then input costs the field operations include the machinery and implement costs and we get to that.
[00:25:37.170]Glennis McClure: Depreciation and ownership costs repairs fuel and even the labor that goes into our field operations is pretty key obviously for our for our budgets.
[00:25:48.840]Glennis McClure: And then if it's irrigated, we've got the irrigation system expenses as well. There's fuel. There's depreciation. There's ownership costs, those
[00:25:57.780]Glennis McClure: The irrigation system as well.
[00:26:01.350]Glennis McClure: Material inputs and service costs of course we've got all the different fertilizers, pesticides seed, all of those kinds of things. Obviously for our crop enterprises.
[00:26:12.060]Glennis McClure: And service costs, you may have hire some custom work done to get that production in place. And also, of course, with livestock.
[00:26:21.930]Glennis McClure: One of the largest inputs into livestock, of course, is the feed. So then we have
[00:26:28.560]Glennis McClure: The general farm overhead expenses and again we chose the $25 per acre. Now, in your case, it could be less than that.
[00:26:35.820]Glennis McClure: You may have more enterprises, you may have more to spread over your, your overhead costs or you may be a lot more and you might include even you might think in terms of what
[00:26:47.190]Glennis McClure: You know your, you know, what is your accounting. What is your overhead in your life here liability insurance, you know, those kinds of expenses are overhead. But you might even consider like what do I have to have preach enterprise.
[00:27:01.020]Glennis McClure: Sort of an overhead. Just, just for for living you know that might be another way of looking at that.
[00:27:07.590]Glennis McClure: And then yield and revenue projections of course go into our, our enterprise budgeting now in with our own with our 2021 budgets and it all those
[00:27:19.200]Glennis McClure: Before that, we have not been including revenue. And so with our new budgeting system, we will have a revenue section. So you could go in and put your
[00:27:29.760]Glennis McClure: Your expected price for the year and look at the revenue minus expenses to get some net revenue and some breakeven levels and so well that's that's that's going to be a key part of our new budget.
[00:27:42.270]Glennis McClure: Alright, so just kind of turning our attention a little bit now to what we've got planned for the egg budget calculator and kind of where we are with that right now.
[00:27:53.280]Glennis McClure: Then we were referring you might hear a say ABC, so Ag budget calculator short ABC for for short there and so
[00:28:05.490]Glennis McClure: With this, you can go in and create a new enterprise budget just simply on your own and and
[00:28:13.530]Glennis McClure: Just from scratch. And one of the things you would do, of course, is you would put in those annual rates and and prices.
[00:28:20.790]Glennis McClure: You would enter in your material costs you would enter in all the information about your machinery compliment your power units, your, your implements
[00:28:30.690]Glennis McClure: And what what the way we started is we feel like that with the crop enterprise. If you can start going through, like, how do I raise this crop.
[00:28:39.990]Glennis McClure: What is my field operations. What's the first thing I do, you know, as I am preparing to produce this crop and you know like in a case of no tail. Again, you might go in and might do some
[00:28:53.910]Glennis McClure: Burn down you in the case of core. Now a lot of people are putting on fertilizer. Now for next year. So that might be one of the first things you do in preparation for for the coming year. So that, of course, is a cost that should pertain to your
[00:29:11.010]Glennis McClure: Budget, so you can do this just from scratch. Now we're going to make it so that you'll have your own. You have your own account.
[00:29:20.400]Glennis McClure: You'll enter your email and you'll create a password and that password will be yours and yours alone, you'll need to remember it or you know how that works. If we forget we get those reminders, but
[00:29:33.510]Glennis McClure: Once you enter a budget or let's say you enter all of your crop budgets for the coming year.
[00:29:40.260]Glennis McClure: You want to go back and look at and you want to go back in and make adjustments you know basically you'll just go back into your account and you'll go back into
[00:29:48.030]Glennis McClure: To make those changes. Now, we have no plans. The university has no plans of using anybody's data basically again your information is yours alone.
[00:29:56.970]Glennis McClure: Because again, what we base our budgets off of is some research information so we can go in and look at somebody else's budgets and say, and think that
[00:30:06.900]Glennis McClure: Those are something that we can use because we don't know what's gone into them. Okay. Again, the university's cautious about that and so
[00:30:15.030]Glennis McClure: Again, these, these using the new adventure calculator will be will be something that you can you can enter your information in and go back later and
[00:30:25.320]Glennis McClure: And modify or update and the other nice thing about this is that once you've entered, let's say corn budget or soybean budget or whatever and for 2021
[00:30:35.220]Glennis McClure: You know, you'll be able to duplicate that budget. So you might. Let's say you have, you know, five different fields of corn where you do pretty much the same.
[00:30:43.980]Glennis McClure: Production, you do the same field operations, you'll be able to go back in
[00:30:48.540]Glennis McClure: And duplicate one that you've already entered, which will save time, but also next year. And when you look at your 2021 budgets, you'll be able to duplicate what you've done.
[00:30:58.200]Glennis McClure: And go in and modify prices and that type of thing. So that's how we're building that system. And then also, we do have, we will have, as I mentioned earlier, we will have our university budgets.
[00:31:10.320]Glennis McClure: You know it entered into the system. And so you can call on one of our budgets and then go in and view view, just for information, or you could go in and
[00:31:19.350]Glennis McClure: Download it into your system and then go in and modify it so we're trying to make it very, very user friendly.
[00:31:26.130]Glennis McClure: And so if there is a website here farm W and l.edu
[00:31:31.530]Glennis McClure: Backs or forward slash ABC. So right now, there's a web page where you can go in and take a look at and find there's an overview of the program.
[00:31:40.290]Glennis McClure: And also I've started to put in some tutorials, but also there's a button there where you can click to say, hey, I'd like to look at this, I'd like to go ahead and
[00:31:48.270]Glennis McClure: And test it. So if you registered to test the program will send you the link so that you can start using it start creating your own account and then just follow up with us on some questions that we may have as a tester.
[00:32:02.460]Glennis McClure: We want to know. We want to get feedback as we're continuing to develop the program, but for now. What's really exciting about the ag budget calculators. We've got it.
[00:32:11.190]Glennis McClure: We've got it developed to the point where it will do everything that our current budgets do plus some because again, we've got the revenue section in there now too, so
[00:32:22.380]Glennis McClure: We're excited about that progress at this point in time, I just took a couple of screenshots.
[00:32:28.740]Glennis McClure: This is again that core in 23 budget. So this happens to be when the university budgets that I downloaded and then this just shows the operations.
[00:32:39.570]Glennis McClure: You can kind of see how that flows and there's more to it. But again, we started with this spray spring burned down
[00:32:48.000]Glennis McClure: When when back in with fertilizer planted went back in with some her side, and so on, all the way down to combining trucking, those kinds of things would be in this list.
[00:32:56.730]Glennis McClure: And he says, the details are okay so as long as I know I put everything in that the system needs us to to add in
[00:33:04.920]Glennis McClure: That's a good sign to say okay and so that that allows me to move on and to make sure that I've got what it needs in the program to be able to make the calculations.
[00:33:16.260]Glennis McClure: We can we can edit the details of a budget other expenses would be like our scouting
[00:33:23.580]Glennis McClure: Some of our driving our crop insurance. We've got a section there where you would add in those expenses and then of course the revenue section will be there and then we'll have reports of course that will be generated from this system.
[00:33:39.000]Glennis McClure: I just thought I took a quick picture of, you know, when we talk about entering our own power unit information, our own implement information.
[00:33:46.560]Glennis McClure: I just took a quick picture of that. So you would say what this is. I don't think you can see that right here. Now, but above you would name what what tractor, or what combine or whatever you're using and then again the size I think it asked for.
[00:34:00.090]Glennis McClure: It the PTO because again we're using engineering formulas in the background. And so the size of some of the power units in particular matter on that and we say, whether it's a you know what what fuel is used for that particular pair unit. Again, how many hours is it used for year
[00:34:22.170]Glennis McClure: You're kind of telling us what the task is how how old it is how long it's been in operation.
[00:34:28.320]Glennis McClure: What you purchased it for what the list prices of a comparable unit would be. And then what age you purchase it for, and then you would say, of course, what is your expected
[00:34:39.120]Glennis McClure: Years of ownership is and then from there, it calculates
[00:34:44.310]Glennis McClure: Based on that information fuel usage, which you could enter in your own fuel you say all i know that tractor when I'm doing this particular operation. This is what it uses
[00:34:54.300]Glennis McClure: salvage value is calculated and also repairs and you can't see that part on on this particular screenshot, but that's what it looks like. And same similar thing with the implements you would be entering that information very similarly.
[00:35:07.110]Glennis McClure: And then also with the materials material inputs and application rates so
[00:35:13.680]Glennis McClure: Here we I just show, particularly with this operation. The there's three different materials that were added in. We can go in and edit the information and then here's
[00:35:22.950]Glennis McClure: We have, you know, all of the materials that you entered, you can call back up by a drop down box you can say how much you applied per acre.
[00:35:32.190]Glennis McClure: 32 ounces in this case 100% of it of acres. And so that's kind of how that will work. And so there'll be a list.
[00:35:40.320]Glennis McClure: Where you can go in and update what those prices are and then again like this drop down you know will bring that information into the system. So it's pretty handy. Once again, you have, once you have your materials in update should be relatively easy to do.
[00:35:57.870]Glennis McClure: So again, just to summarize a little bit about the egg budget calculator.
[00:36:03.510]Glennis McClure: Is that, again, you can create or customize your own budgets, you can pull down with the university budgets work with those. We have a revenue section all ready to go.
[00:36:13.110]Glennis McClure: We're planning to add within that revenue section A risk module and we'll be talking about and sharing information about that hopefully in the coming months and then
[00:36:23.730]Glennis McClure: One of the nice things too is, you know, we have that we have that set $25 per acre overhead costs in our current budgets and with the system using more of a whole farm approach.
[00:36:36.000]Glennis McClure: You'll be able to go in and say, okay, so now that I've got.
[00:36:40.200]Glennis McClure: All of my let's say my crop enterprises included. What does that total fuel look like what does that, what are my repairs. What's the total repairs. Does that make sense is that about what I anticipate for the whole year of my operations.
[00:36:54.300]Glennis McClure: And so we can go in and we can make some reconciliations of those expenses and also the overhead expenses those additional expenses, making sure that
[00:37:04.980]Glennis McClure: Our overhead expenses are allocated appropriately to the to the various enterprises that we have. So that feature will be available. It's one of those, that's one of those things that's in progress. Right now, the next one, the next steps is will be working on livestock enterprise budgets.
[00:37:22.470]Glennis McClure: Whole farm reports again that relates back to, you know, what are all of our expenses look like, what is our overhead look like, how are we allocating those things up to the different enterprises.
[00:37:33.000]Glennis McClure: And then one of the neat features at the end would be
[00:37:36.540]Glennis McClure: Being able to call it the cash flow report because I really like to think in terms of if I've got in my this system at some point in time, all of my enterprises entered and I, and I've got all of my
[00:37:49.140]Glennis McClure: Proposed cash expenses in the system, it'll be really a nice thing to be able to pull up eventually a cash flow where then i can i can utilize that again in my own budgeting take to the bank, that kind of thing.
[00:38:05.310]Glennis McClure: You know, those are some of the features that we're planning to add to the egg budget calculator, which I'm really excited about and looking forward to
[00:38:12.450]Glennis McClure: I do have here a website again go W and l.edu December 14 budgets, if you go in, we are doing, you know, a lot of different workshops here coming up through the winter months and on December 14 I'm going to spend about an hour and a half online. I'm actually working with folks.
[00:38:33.990]Glennis McClure: In in utilizing the new AG budget calculator. So we're going to have workshops, like that. And so if you're interested in testing getting into the system. We can send you a link
[00:38:44.670]Glennis McClure: You could come on to a workshop and we can go into more detail.
[00:38:49.440]Glennis McClure: And make sure that folks are understanding kind of how to use the new system. So will that that's one of the dates. We've got more dates. After that, through the January, February timeframe. So just, again, that farm W and l.edu watch for information.
[00:39:05.100]Glennis McClure: If you can't make one of these. Hopefully there's other opportunities where you can get into a workshop. If you're interested in an annuity utilizing our new ad budget calculator.
[00:39:16.140]Glennis McClure: So just some quick points here at the hand is that enterprise budgets help to project costs to production.
[00:39:24.540]Glennis McClure: And really it's a critical part of effective management, you can make decisions use compare as we talked about in one of our earlier slides.
[00:39:32.370]Glennis McClure: There's just a lot of a lot of good information that can come from doing some enterprise budgeting knowing your costs and you're breaking
[00:39:40.470]Glennis McClure: breakeven levels is really a foundation in managing your costs and developing marketing plan. So if you know your costs, hopefully you can feel
[00:39:49.260]Glennis McClure: more at ease and making some decisions and pricing as some good opportunities come along. Of course you know plans or plans and plans can change. But, you know, doing some I always think that budgeting just provide some really good basic information that we should all be utilizing
[00:40:08.400]Glennis McClure: And then again, we've talked about the new egg budget calculator, just wondering, mind you, that
[00:40:13.890]Glennis McClure: Farm W and l.edu forward slash ABC. You can go in and find more information about the new budget calculator to this point and sign on to be to test the program.
[00:40:25.590]Glennis McClure: So with that, I think I've got Bob's information here and mine and I don't know if there's any questions anyone has I remind you here again that we do have that virtual workshop on December 14 as well so
[00:40:43.320]Robert Klein: Just a couple comments Glenys
[00:40:47.070]Robert Klein: One thing, it may be important. The Enterprise budgets just had a call about incorporating sunflowers in the
[00:40:57.690]Robert Klein: Rotation and by using the budgets, we can pretty good to get a pretty good idea that is compared to corn or grains, Oregon, and so forth. And I look back when we introduce the equal Fowler program.
[00:41:15.510]Robert Klein: Back in the 70s. One of the things that was really interesting. And that was with going in and and spraying after winter wheat harvest
[00:41:24.030]Robert Klein: And spending quite a little money basically 18 months, or excuse me 15 months before we would get a return on it.
[00:41:33.330]Robert Klein: Seem to be very, very important as we worked with our bankers and other credit agencies to use the budgets and show them the better returns
[00:41:44.100]Robert Klein: From incorporating in that week vallow system. We had getting corn and grain sorghum in there, even though the return took like 15 months to come into place.
[00:41:58.440]Robert Klein: And we really important to use those budgets and really gave the clientele a good chance to see how we could really increase the return to the land by changing the cropping systems. So you can really use those budgets to really advantage. Good.
[00:42:18.270]Glennis McClure: Yes, thank you. He worked at that a long time and addressed a lot of questions. I'm sure and all of that. So, all right.
[00:42:26.460]Larry Van Tassell: So let us the first
[00:42:29.700]Larry Van Tassell: comment or question was, is, is it possible to share your PowerPoint presentation and I guess we will have it out there on farm.edu
[00:42:44.310]Glennis McClure: Yeah.
[00:42:44.790]Larry Van Tassell: Armed at you and l daddy. Thank you.
[00:42:47.520]Larry Van Tassell: Or if they want to email you directly you can email it to them. Correct, yeah. Of course. Of course. Yes. Okay.
[00:42:54.960]Glennis McClure: I think all of our webinars are posted as well online. So that's good. We can go in with the power, the slides up to, I think,
[00:43:05.280]Larry Van Tassell: So we have a question here for you. What is the best method of allocating individual enterprise costs for equipment that is used in multiple enterprises.
[00:43:18.660]Glennis McClure: What's the best way of doing that well.
[00:43:22.230]Glennis McClure: The way we're building the system for the new ABC, ABC program is you'll put in your machinery compliment and then you'll go in and say, well, yeah, I use that tractor for for
[00:43:33.780]Glennis McClure: For multiple enterprises. So when you're doing your additional budgeting, you know, so that will be built into the system, I guess, you know, and using the new in the new program. Same way with any very implements so
[00:43:48.090]Larry Van Tassell: Yeah, it's a bonus on the one
[00:43:51.960]Larry Van Tassell: On the one overhead that Glenn has had there, you put in the total amount of hours that tractor is used over all of your enterprises.
[00:44:03.630]Larry Van Tassell: And then it calculates how much it's used in corn and just allocates that percentage of the total hours to corn. So it's all based on a on a total hours.
[00:44:16.470]Larry Van Tassell: Of usage in this example here. There's 500 there for the whole for the whole operation and it just goes in and that calculates how much you will be used for just one enterprise itself and allocates that much of the cost that correct. Yep.
[00:44:34.320]Glennis McClure: That's a great, great question. So in and we and that's that's the kind of thing we need to watch for. We do have these
[00:44:40.620]Glennis McClure: In the program will have these information items these health messages and that it should say that just with Larry said was that we want to know the total hours at this power units used, and then it would be divided over over usage with your enterprises.
[00:44:58.080]Glennis McClure: Good question.
[00:44:59.160]Larry Van Tassell: So our next question. I don't know if Glenys or Bob can have a list, but it says how much spring wheat is being considered as a spring crop in Nebraska.
[00:45:11.340]Glennis McClure: I'll leave that up to Bob.
[00:45:13.230]Robert Klein: Yeah, it's very, very little. And people are trying to bring that to get away from the fallow period. And in general, it hasn't been real real profitable.
[00:45:27.060]Robert Klein: Maybe we can make some more modifications to make the system work better. But right now, without the markets to we have a market problem.
[00:45:37.740]Robert Klein: And you have to ship a quite a ways and they don't want to combined with the winter wheat. So we've got a few problems.
[00:45:46.230]Robert Klein: And not only in the production part but the marketing part which we need to work out but we wanted to get something in there and basically
[00:45:55.770]Robert Klein: The biggest challenge is putting the yields in there and Kansas State have done some work recently comparing those yields.
[00:46:05.130]Robert Klein: We have some old data in Nebraska, but we kind of update that by using the Kansas that out of Northwest Kansas. And so, it applies pretty good to southwest Nebraska. But we got to work on that, more especially the marketing part to make us a little bit more competitive.
[00:46:26.640]Larry Van Tassell: Alright, that looks like all the questions today. Glenn if any parting words.
[00:46:33.060]Glennis McClure: No, but please again like say stay in touch with us on follow up questions that you have, again, my email is there and phone number.
[00:46:41.790]Glennis McClure: And I'll be glad to get you set up. If you want to take a look at the new, new, new system, but also keep in mind that all the budgets that Bob and I worked on and all the crop specialist work done.
[00:46:52.080]Glennis McClure: For 2021 or on online at under crop watch now. So, all right. I think that's my. How about you, Bob. Anything you'd like to add
[00:47:00.840]Robert Klein: Is I think that pretty well covers it. Okay.
[00:47:04.290]Glennis McClure: Thanks everyone for joining us today. Yes.
[00:47:07.590]Larry Van Tassell: Well, thank you everyone for joining us today. A recording of the webinar will be email@example.com and l.edu
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