Download - Goat Budgets
Goat Budgets
A decision tool you can use.
Roger SahsExtension Specialist, Ag Economics
Oklahoma State University
Meat Goat Investment CostsNo. Units $/Unit % to
Herd$/Doe
Does 50 Head $125 100 125
Bucks 2 Head $300 100 12
Vehicle 1 Pickup $17,500 25 88
Tractor 1 $25,000 25 125
Baler 1 $12,500 50 125
Swather 1 $7,500 50 75
Equipment $1,500 100 30
Native pasture 20 Acres $1,500 100 600
Barn $25,000 50 250
Total $1,430
Farm and Ranch RealitiesAnnual per acre payments: 30 year loan*
Interest rate
Land price per acre
6% 8% 10%
$ 500 36 44 53
$ 1000 72 89 106
$ 1500 109 133 159
$ 2000 145 177 212
*Land loan is based on 90% of land price.
Uses of production and financial information
Historical analysis Monitor current performance Forward planning
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.
Enterprise Budget Allows for consistent evaluation of
alternative enterprises What’s included --
Production Goal, technique, resources required, returns
Costs Variable and fixed
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
Budgets can help with “what-ifs”
Management change Impact
5% in weaning % ? lbs per doe, $? per doe
5% in feed costs $? per doe
5% in grazing costs $? per doe
5% in other costs $? per doe
market price by $5/cwt $? per doe
Total $? per doe
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!
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 online http://www.agecon.okstate.edu/budgets
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
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.
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.
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.
Questions??