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Whole Farm Budget Construct a Whole Farm Budget for Milky Way farm. Note: All com silage and hay are fed to the dairy cows rather than sold. Enterprise Unit Production per year Selling price Other income Variable costs per year Number of units Corn Silage 1 acre 20 tons/a. None None $200/a. 40 Hay 1 acre 5 tons/a. None None $150/a 120 Dairy 1 cow 20,000 lbs. $15 per cwt. $300/cow $1.500/cow 100 Whole Farm Revenue from USDA payments, doing custom work Property taxes and insurance Depreciation Interest on long-term loans Hired labor wages Value of operator unpaid labor (12 mo. @ $2,500) Value of equity capital ($300,000 @ 5%) $15.000 5.000 12,000 18,000 60,000 30.000 15.000 Gross Revenue Milk sales: Other revenue: USDA, custom work Subtotal Variable Costs Silage: Hay: Dairy: Subtotal
Fixed Costs Property taxes and insurance Depreciation Interest Wages Subtotal Net farm income Operator labor Return on equity Profit and return to management
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