BERRY FARM BUSINESS SUMMARY 2014 REGIONAL WORKSHOP DAN WELCH BRAD RICKARD PERCY FANG CHARLES H. DYSON SCHOOL OF APPLIED ECONOMICS AND MANAGEMENT JANUARY 31, 2014

OTHER STATES UC Davis and University of California Cooperative of Extension: Sample Costs to Establish and Produce Berries Penn State: Enterprise Budgets in Mid-Atlantic Berry Guide North Carolina State: Blackberry Budget Program 2011

OVERVIEW OF BFBS PROCESS CCE educators and regional specialists worked with 8 farms to collect the data 6 of the farms were smaller-scale, 2 farms grew berries in addition to tree fruit Using the Fruit Farm Business Summary as a guide, created data tables of summary information, and specific areas BFBS gives a whole-farm picture, next step is to develop enterprise budgets for each crop

T1 to T4 Balance Sheet Information T5 to T12 Income Statement Information T13 to T19 Cash Flow Information T20 to 23 Efficiency Analysis T24 to T27 Farm Descriptive Statistics Next I will show some of the preliminary summarized information from the current farms in the BFBS Four considerations: 1.There are only data from 8 farms so far 2.Two of the 8 farms are much larger than the other 6 3.Where possible, we make comparisons to FFBS 4.Enterprise budgets will tell us more about specific berries THE 27 TABLES IN THE FFBS/BFBS

FARM BALANCE SHEET (TABLE 1) Year Farm AssetsEnd Current Assets Farm cash, checking & savings1,161 Accounts receivable 963 Prdtn, pckng supplies & prepaid exp 2,917 Fruit & other crops in inventory 0 Cash Value Life Insurance on Corp Officrs 7,143 Total current assets$12,184 Intermediate assets Equipment owned50,042 Other Stock & Investments175 Total intermediate assets$50,217 Year Farm LiabilitiesEnd Current Liabilities Accounts Payable0 Operating Line 12,333 Current Portion: Int & Long Term Debt0 Total Current Liabilities$2,333 Intermediate Liabilities Restructured Operating Debt0 Equip Loan #1 (JD,CNH, Kubota)0 Equip Loan #20 Capital Line #25,333 Total Intermediate Liabilities$5,333

FARM BALANCE SHEET (TABLE 1) Year Long term assetsEnd Land & buildings:51,333 Owned0 Structures leased0 Leasehold Improvements0 Other: 0 Total long term assets $51,333 Total farm assets$113,734 Year Long Term LiabilitiesEnd Mortgage #1: Mortgage #2 :0 Long Term Loan #1 -0 Total Long Term Liabilities 0 Total Liabilities $7,667 Net Worth$106,067

FARM BALANCE SHEET COMPARISON Berry Farm Business Summary Fruit Farm Business Summary Financial Ratios-end of year Percent Equity87% 73.7% Debt Levels Per bearing fruit acre Total farm debt$ $3066 Long term Current and intermediate

INCOME STATEMENT- EXPENSES(TABLE 5) Expenses 8 Farm Average 6 Farm Average Equipment Fuel, Oil & Gas Repair & Maintenance: Equipment Trucking Expenses Machine Hire, Rent & Lease

LAND RESOURCES (TABLE 24) Land Class 8 Farm Average 6 Farm Average FFBS (25 Farms) Bearing fruit acres Non-bearing fruits acres Total fruit acres Other annual crops Other perennial crops Open land Non-tillable acres Total acres cropped Total land operated Rented land included above

BERRY CROP PRODUCTION (TABLE 24) No. of farms Average Acres Average Production (lbs) Percent of Total Berries 8 Farms Strawberries , % Blueberries , % Brambles , % Ribes % Other berries11.753, % 6 Farms Strawberries , % Blueberries64.479, % Brambles11.255, % Ribes % Other berries11.753, %

SIZE OF BUSINESS AND YIELDS (TABLE 27) Size of Business8 Farms6 Farms FFBS (25 farms) All fruit acres (including non-bearing) Bearing Fruit acres Average berry production (lbs)41, , ,130 bu Worker equivalent Rates of Production (lbs/acre) Strawberries, pounds per bearing acre7, , Blueberries, pounds per bearing acre4, , Brambles, pounds per bearing acre6, , Ribes, pounds per bearing acre785.00

LABOR EFFICIENCY AND COSTS (TABLE 27) Labor Efficiency 8 Farms6 Farms FFBS (25 farms) Bearing fruit acres per worker All fruits acres per worker Accural Receipts per worker$34,825.58$17,842.80$96, Cost Control-Accrual Costs per bearing fruit acre All labor including operator$2,895.16$2,136.24$1, Harvest labor$1,375.03$ All equipment$1,158.02$1,081.12$ Spray$363.64$204.26$508.00

CAPITAL EFFICIENCY AND PROFITS (TABLE 27) Capital Efficiency 8 Farms6 Farms FFBS (25 farms) Total farm capital per bearing acre$23,149.74$32,615.17$10, Total farm capital per fruit acre$22,159.07$32,615.17$9, Capital Turnover Ratio (sales/equity) Profitability Net farm income w/o appreciation$210,302.70$11,677.10$436, Labor and mgmt income/operator$68,965.54$2,466.48$212, Rate of return on: Equity capital with appreciation12%-15%23% All capital with appreciation7%-15%18% Farm net worth$936,829 $318,200$1,721,188 Debt to asset ratio

FOR MORE INFORMATION, AND TO JOIN THE BFBS, CONTACT EducatorRegion (home base)Contact Sharon Bachman Western NY (Erie County) ext 150 Sandy Buxton Eastern/Northern NY (Washington County) Ginny Carlberg Western NY (Chautauqua County) ext 202 Alison De Marree Lake Ontario Region (Wayne County) Stephanie Mehlenbacher Finger Lakes Region (Steuben County) Dan WelchCentral NY (Onondaga County)

RESEARCH FUNDED BY THE NYFVI PROJECT #AIC “BUILDING A BETTER BOTTOM LINE FOR NYS BERRY GROWERS” Thanks for Listening! Questions? Suggestions? (Dan Welch) (Brad Rickard)