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Goat Budgets. A decision tool you can use. Roger Sahs Extension Specialist, Ag Economics Oklahoma State University. Meat Goat Investment Costs. Farm and Ranch Realities. Annual per acre payments: 30 year loan*. * Land loan is based on 90% of land price.

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Goat Budgets

A decision tool you can use.

Roger Sahs

Extension Specialist, Ag Economics

Oklahoma State University

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Farm and Ranch Realities

Annual per acre payments: 30 year loan*

*Land loan is based on 90% of land price.

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Uses of production and financial information

  • Historical analysis

  • Monitor current performance

  • Forward planning

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Enterprise Budget

  • An Enterprise Budget estimates the full economic costs and returns expected to accrue to a production activity – raising goats, producing grain or forage – for one year.

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Enterprise Budget

  • Allows for consistent evaluation of alternative enterprises

  • What’s included --

    • Production

      • Goal, technique, resources required, returns

    • Costs

      • Variable and fixed

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Why Budget?

  • 1st step in developing marketing/business plan

  • Evaluate options before you commit resources

  • Estimate potential income

  • Estimate the size of operation needed to earn a specified return

  • Compare the profitability of two or more systems of production

  • Identify production and financial risks and whether they may be managed

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Food for thought…..

  • You don’t know if you are making a profit unless you know your costs of production.

  • If you can’t pencil in a profit, you aren’t likely to plow (or raise) one!

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OSU Enterprise Budget Software

  • Excel spreadsheet-based software -

    24 Crop/livestock commodities

    • $20 each, 5 for $75, $250 entire set

    • Free data updates available

  • Available via CD or onlinehttp://www.agecon.okstate.edu/budgets

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    Other Sources of Budget Information

    • Books on goat production and industry

    • Goat producer organizations

    • Other goat operations

    • University specialists, educational materials, and meetings

    • Websites – Langston Univ.

    • Web-based training and certification

      • http://www2.luresext.edu/goats/training/qa.html

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    Ten Commandments for Farmers/Ranchers

    • Focus on financial management as much as production performance.

    • Count your goats (and other assets) at least annually.

    • Keep your lender happy.

    • Code your checks and sort your expenses for enterprise accounting.

    • Develop a record-keeping and information system that works for you.

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    Ten Commandments for Farmers/Ranchers

    • Don’t just minimize taxes, maximize after tax income.

    • Don’t expect too much from your does.

    • Never stop learning.

    • Go slowly when attempting new things.

    • Match the livestock and crop enterprises to the land resource.

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    The Bottom Line -

    • Make sure your operation is as cost-effective as possible.

    • Identify production practices that will lower costs.

    • Find leverage points that will generate the most bang for the buck.

    • Benchmark the competition.