Dairy Budget 2019-2020

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DAIRY BUDGET 1STAPRIL 2019 – 31STMARCH2020 BROWNS FARM

DAIRY BUDGET 1ST APRIL 2019 – 31ST MARCH 2020

This 2019 budget is based on a fictional 150-cow plus young stock dairy farm, using figures based on national averages. The farm is run by the proprietor who is in his 30’s and has 200 acres of permanent pasture with a range of dairy buildings and a farmhouse. The farm is on a 20-year Farm Business Tenancy at £140/acre. The business employs one full-time assistant herdsperson and a relief weekend milker. A 20 year loan of £200,000 was taken out when the tenancy started in 2014 for the purchase of cattle, reducing at £8,000 per year. There is also a tractor on Hire Purchase. The total capital expenditure is £43,900. The farm uses grass silage, receives average rainfall and is in a NVZ. It is budgeted that the all-year-round calving herd will average 8,000 litres per cow at 28ppl. 30 heifer calves are retained annually as replacements, with all other young calves sold. Contractors are used for slurry and forage management.

BROWN&CO | DAIRY BUDGET

NET FARM INCOME FOR THE 2019 YEAR

Livestock

Head Acres

£ / Hd

Budget Total

Dairy Herd

150 173.60 30 12.20 30 14.20

922.97 538.94 436.28

138,445 16,168 13,088

Heifer Rearing Yr 1 Heifer Rearing Yr 2

Livestock Margins

200.00

167,702

Enterprise Gross Margin

167,702

Basic Payment Scheme

18,000

Total Farm Gross Margin

185,702

Less Fixed Costs : Property Costs

£\Acre 60.00 140.00 240.45 86.75

12,000 28,000 48,090 17,350

Labour Machinery

General Overheads

105,440

Sub Total

527.20

Pre Rent & Finance Surplus

80,262

Rent

140.00 34.08

28,000 6,816

Finance

34,816

Sub Total

174.08

Total Net Farm Income

45,446

Before : Drawings, Pensions, PAYE.etc..

-28,100

Taxation Machinery Lease/HP

-7800 -8,000

Capital Expenses ( Mach purchase/Loan rpmt)

Less Capital Receipts

-43,900

BROWN&CO | DAIRY BUDGET

FIXED COST BUDGET (SUMMARY SCHEDULE) 200 ACRES

Budget £/Total

£ / Per Acre

% Turnover

Property Costs Water & Drainage General Repairs

8,000 4,000

40.00 20.00

12,000

60.00

3.28%

Labour Regular Labour

28,000

140.00

28,000

140.00

7.66%

Machinery Machinery Costs Depreciation

10,150 7,640 5,500 8,000

50.75 38.20 27.50 40.00

Fuel & Oil

Contract & Hire

Electricity

16,800

84.00

48,090

240.45

13.15%

General Overheads Office General Insurance Professional Fees Miscellaneous

1,910 8,000 4,800 2,640

9.55 40.00 24.00 13.20

17,350

86.75

4.74%

Rent & Financing Costs Rent

28,000

140.00

Bank Charges

75 301

0.38 1.51

Current Account Interest

Other Loan Interest

6,440

32.20

34,816

174.08

9.52%

TOTAL FIXED COSTS

140,256

701.28

38.35%

BROWN&CO | DAIRY BUDGET

PROFIT & LOSS ACCOUNT FOR THE FINANCIAL YEAR 1ST APRIL 2019 TO 31ST MARCH 2020

Closing Valuation at 31st March 2020

312,500

Of gross Turnover

Dairy Herd Cull Sales

326,012 13,750

339,762

Less: Opening Valuation at 1st April 2019

(304,500) 347,762

Add: Other Operating Income Basic Payment Scheme

18,000

Gross Output

365,762

Less Variable Costs Fertilisers

16,500

Contract & Haulage

17,100

Feeds

117,090 7,470 21,900 180,060

Vet & Medical

Sundry

49%

Farm Gross Margin

185,702

51%

Less: Fixed Costs Property Costs

12,000 28,000 48,090 17,350 34,816

3% 8%

Labour Machinery

13% 5% 10% 38%

General Overheads Rent & Financing Costs

140,256

PROFIT/(LOSS) FOR THE YEAR BEFORE DRAWINGS 45,446 12%

BROWN&CO | DAIRY BUDGET

SOURCE & APPLICATION OF FUNDS 1ST APRIL 2019 TO 31ST MARCH 2020

Source

Budget

Application

Budget

Trading

Profit

45,446

Loss

Decrease in Valuation Decrease in Debtors Increase in Creditors Depr of Machinery Depr of Improvements

Increase in Valuation Increase in Debtors Decrease in Creditors

8,000

7,640

Capital

Machinery Lease/HP Machinery Purchases

7,800

Machinery Sales Improvement Grants Disposal of Land & Buildings

Improvements

Land & Buildings Mortgage & Loan repayments

New Loans

8,000

New HP Introductions

Private

Private Receipts

Partners Drawings Life Assurance

27,800

300

Pensions Taxation

Sub - Total

51,900

Balance

Cash\Bank Decrease Cash\Bank Increase

1,186

Total

53,086

Total

53,086

BROWN&CO | DAIRY BUDGET

FORECAST CASHFLOW 1ST APRIL 2019 – 31ST MARCH 2020

Adj

12Mth

Opening Debtors

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Closing 12Mth Debtors Total

INCOME

Total

Livestock

DairyHerd CullSales

326,012 13,750

27,168 1,146

326,012 13,750

OtherIncome

BasicPaymentScheme 18,000

18,000

TOTALFARMINGINCOME

357,762

28,314

46,314

28,314

357,762

EXPENDITURE

Opening Creditors

Closing Creditors

VariableCosts

Fertilisers

16,500 79,590 7,470 11,850 33,750 3,750 6,300 3,750 8,000 4,000 28,000 10,150 5,500 25,100 16,800 1,910 8,000 4,800 2,640 28,000

16,500 6,633

16,500 79,590 7,470 11,850 33,750 3,750 6,300 3,750 8,000 4,000 28,000 10,150 5,500 25,100 16,800 1,910 8,000 4,800 2,640 28,000

Feeds

6,633

Vet&Medical

623 988 313 525 313

Sundry Straights Minerals A.I.Fees

2,813

N.M.RRecording

FixedCosts

Water&Drainage GeneralRepairs RegularLabour

667 333

2,333

MachineryCosts

1,817

417 458 667

417 458

1,667

417 458

1,667

417 458

417 458 667

1,667

417 458 667

Fuel&Oil

458 667

458

458 667

Contract&Hire

5,267

3,167

TotalElectricity

1,400

Office

847 667 900 220

General Insurance ProfessionalFees Miscellaneous

667 900 220

667 150 220

667 900 220

667 150 220

667 900 220

667 150 220

Rent

2,333

BankCharges Bank Interest

19 17

19 21

19 55

19 22

301

Loan&HP Interest

6,440

537

6,440

TOTALOPERATINGCOSTS

312,676

24,650

22,519

27,096

27,000

25,023

25,005

44,256

25,057

22,539

24,505

22,524

22,502

312,676

Cap&PrivExpenditure

MachineryLease/HP 7,800

650 667

7,800 8,000

LoansRepaid LifeAssurance CouncilTax CashDrawn

8,000

300

1,800 26,000

150

1,800 26,000

2,167

NetCapital&PrivateMovements

-43,900

-3,658

MONTHLYCASHFLOW OpeningBalances

1,186

2,136

-2,441

-2,345

-368

-350

-19,600 -402

20,116

150

2,131

2,154

CurrentAccBalance DepositAccBalance

-10,000

BankBalance

-10,000

-9,995

-7,858

-10,300 -12,645 -13,013 -13,363 -32,963 -33,365 -13,249 -13,099 -10,968 -8,814

BalanceAtYearEnd

-8,814

YOUR REGIONAL CONTACT

James Brown Agricultural Business Consultant 01295 220222 james.brown@brown-co.com West Midlands, The South West, Wales & NI

Northern England Phil Dunn

Agricultural Business Consultant 01652 654833 philip.dunn@brown-co.com Rob Meadley Agricultural Business Consultant 01652 654833 rob.meadley@brown-co.com

Richard Levin Agricultural Business Consultant 01284 725715 richard.levin@brown-co.com

East of England & South East

East Midlands

Charles Whitaker Agricultural Business Consultant 01603 629871 caw@brown-co.com Rob Hughes Agricultural Business Consultant 01553 770771 rob.hughes@brown-co.com Andrew Fundell Agricultural Business Consultant 01603 629871 andrew.fundell@brown-co.com Peter Cox Agricultural Business Consultant 01284 725715 peter.cox@brown-co.com

Paul Waberski Agricultural Business Consultant 01664 502120 paul.waberski@brown-co.com Paul White Agricultural Business Consultant 01476 591991 paul.white@brown-co.com

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