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Goat Budgets

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

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  1. Goat Budgets A decision tool you can use. Roger Sahs Extension Specialist, Ag Economics Oklahoma State University

  2. Meat Goat Investment Costs

  3. Farm and Ranch Realities Annual per acre payments: 30 year loan* *Land loan is based on 90% of land price.

  4. Uses of production and financial information • Historical analysis • Monitor current performance • Forward planning

  5. 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.

  6. Enterprise Budget • Allows for consistent evaluation of alternative enterprises • What’s included -- • Production • Goal, technique, resources required, returns • Costs • Variable and fixed

  7. 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

  8. Budgets can help with “what-ifs”

  9. 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!

  10. 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

  11. 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

  12. 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.

  13. 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.

  14. 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.

  15. Questions??

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