improving lives. improving texas. jay yates extension program specialist - risk management texas...

Improving Lives. Improving Texas.

Jay YatesJay Yates Extension Program Specialist - Risk ManagementExtension Program Specialist - Risk Management

Texas AgriLife Extension ServiceTexas AgriLife Extension Service

2008 Oilseeds Workshop2008 Oilseeds Workshop•Enterprise BudgetsEnterprise Budgets•FARM AssistanceFARM Assistance

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Break-even Price to Cover Costs

Returns Above Total Specified Expenses

Total Direct Expenses

What Is FARM Assistance?Financial And Risk Management Assistance• Cutting edge technology that

incorporates risky returns of agriculture

• Long term planning tool designed to project the financial condition under risk

• Goal is to evaluate the future impacts of management decisions before a commitment is made

FARM Assistance Benefits

• Evaluate production, borrowing, & marketing alternatives

• Estimate costs & returns using forward price information

• Designed to provide a comparison of proposed changes to continuing the business “as is”

• One-on-one approach allows for in-depth assessment of financial future

The Real Power of FARM Assist… Examining Alternatives

• Take on more land• Grow different crops• Restructure debt• Increase livestock inventories• Sell calves at weaning, sell them as

feeders or carry them through the feedlot

FARM Assistance Benefits

“In the last few years, with all the restructuring and extending we’ve done, FARM Assistance has been essential in helping us sort out the long term solutions from the short term patches that simply delay the inevitable.”

Brennan Vaverek, First United Bank, Seminole

FARM Assistance Benefits

• Examine Proposed Plans– Reduced number of non-viable

alternatives– Greater planning of new business

ventures

FARM Assistance Benefits

• Better Informed Decisions– Helps define and project the

producer’s risk, both for the short and long term

– Provides an informative, unbiased look at a farm’s long term financial future

FARM Assistance Benefits

• Educational Outreach– Through the use of this innovative

service producers become better:• Decision makers• Managers• Customers

– Certified FSA Financial Management Training

FARM Assistance Benefits

• Packaging– All production and financial

information for a producer can be summarized in one report

FARM Assistance Costs

• Base fee of $250 for analysis of:– Current situation– Multiple alternatives

• Commitment– Several hours of face-to-face time– Gathering accurate, honest

information

Ralph Waldo Emerson

"I see young men, my townsmen, whose misfortune it is to have inherited farms, houses, barns, cattle, and

farming tools; for these are more easily acquired than got

rid of."

Improving Lives. Improving Texas.

February 17February 17thth

March 5March 5thth

9:00 a.m. – 3:00 p.m.9:00 a.m. – 3:00 p.m.

Texas AgriLife Research andTexas AgriLife Research andExtension CenterExtension Center

ClassroomClassroom

Registration Fee $20Registration Fee $20

South Plains South Plains Profitability WorkshopsProfitability Workshops

•Jackie SmithJackie Smith•Jay YatesJay Yates•Jeff PateJeff Pate•John RobinsonJohn Robinson

Funded in part by Texas State

Support Committee of

Cotton Incorporated

806-746-6101

Improving Lives. Improving Texas.

Contact Information:Contact Information:Texas AgriLife Research Texas AgriLife Research

and Extension Centerand Extension Center1102 East FM 12941102 East FM 1294Lubbock, TX 79403Lubbock, TX 79403

(806) 746-6101(806) 746-6101

jayates@ag.tamu.edujayates@ag.tamu.edu

http://lubbock.tamu.eduhttp://lubbock.tamu.edu

Jay YatesJay YatesExtension Program SpecialistExtension Program SpecialistRisk ManagementRisk Management

FARM Assistance AnalystFARM Assistance Analyst

South Plains Cotton Update every Thursday at 1:30 p.m. during Ag Talk on

Also available as blog online athttp://agrilifeblogs.tamu.edu/mt/spcuor via email.

Improving Lives. Improving Texas.

Jay YatesJay Yates Extension Program Specialist - Risk ManagementExtension Program Specialist - Risk Management

806-746-6101806-746-6101

jayates@ag.tamu.edujayates@ag.tamu.edu

SouthPlainsProfit.tamu.eduSouthPlainsProfit.tamu.edu

FARMAssistance.tamu.eduFARMAssistance.tamu.edu

Texas AgriLife Extension ServiceTexas AgriLife Extension Service

2008 Oilseeds Workshop2008 Oilseeds Workshop•Enterprise BudgetsEnterprise Budgets•FARM AssistanceFARM Assistance