Prepared by Gary Frank UWEX - Madison, WI

Cost of Producing Milk 15,465 $51,205 per

Hundredweight Equivalent (CWT EQ)Name: Smith Farm

Average Number of Cows in Herd 85 BASIC COST per CWT EQ $ per CWT EQ available

Total Schedule F Income $201,993 $7.30 (4) for all other costs $6.45 Form 4797 Income $5,587 (1) Average Basic Cost in 1997 was $7.85.

Change in Feed Inventory $1,760 (2)Change in Livestock Inv. $3,300 (2) Total $'s available per cowChg in Other Current Assets $11,000 (2) for non-basic costs $104,924 $ 1,234 (5)Total Farm Income $223,640 Total Allocated Costs Goal=$1,200

per CWT EQ $10.45 Average Milk Price $13.75 (3) Total $'s available Total Schedule F Expenses $159,921 for all unallocated costs $53,719 (6)Change in Accouts Payable $0 (2)Change in Prepaid Expenses ($10,000) (2) Opportunity Cost of operator and operator family'sTotal Allocated Costs $169,921 labor and management $39,200

Dolars of Wages and Benefits shown on Schedule FTotal Interest Paid $12,255 that were paid to family members $17,955 Wages & Benefits Paid $17,955 Total Allocated plus unpaid labor and

Depreciation Claimed $20,995 (7) management costs per CWT EQ $11.75 Schedule F input form and footnotes are below.

Income (From Schedule F)1 Sales of livestock and other items you bought for resale . . . . . . . . . . . . . . . . . . $0

2 Cost or other basis of livestock and other items reported on line 1. . . . . . . . . . . $0

3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

4 Sales of livestock, produce, grains, and other products you raised. . . . . . . . . . . . . . . . . . .$187,505

5a Total cooperative distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,961

6a Agricultural program payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,688 7 Commodity Credit Corporation (CCC) Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

8 Crop insurance proceeds and certain disaster payments. . . . . . . . . . . . . . . . . . . . . . . . . . $4,088 9 Custom hire (machine work) income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,042

10 Other income, including Federal and state gasoline or fule tax credit or refund. . . . . . . . . . $709

11 Gross Income. Add amounts in the right column for lines 3 through 10. . . . . . . . . . . . . . . .$201,993

Your cost *** Not correct if all income has not been entered. *** Your costExpense (From Schedule F) Per Cwt Eq Per Cwt Eq

12 Car and truck expenses. . . . . . . . . . . . . . $458 $0.03 24 Labor hired. . . . . . . . . . . . . $14,369 $0.88 13 Chemicals. . . . . . . . . . . . . . . . . . . . . . . . . $17,678 $1.09 25 Pension and profit sharing pl $0 $0.00 14 Conservation expenses. . . . . . . . . . . . . . . . . . $0 $0.00 26a Rent or lease (equipment). . . . $0 $0.00 15 Custom hire (machine work). . . . . . . . . . . . $1,070 $0.07 26b Rent or lease (other). . . . . . . $6,350 $0.39 16 Total Depreciation. . . . . . . . . . . . . . . . . . . $20,995 $1.29 27 Repairs and maintenance. . . . $17,878 $1.10

16A Lstock Depreciation $0 $0.00 28 Seeds and plants purchased. . .$2,451 $0.15 17 Employee benefit programs. . . . . . . . . . . . . . . . . $3,586 $0.22 29 Storage and warehousing. . . . $0 $0.00 18 Feed purchased. . . . . . . . . . . . . . . . . . . . . . . . . . . $26,293 $1.62 30 Supplies purchased. . . . . . . .$10,566 $0.65 19 Fertilizers and lime. . . . . . . . . . . . . . . . . . . . $311 $0.02 31 Taxes. . . . . . . . . . . . . . . . . $6,268 $0.39 20 Freight and trucking. . . . . . . . . . . . . . $1,382 $0.08 32 Utilities. . . . . . . . . . . . . . . $3,186 $0.20 21 Gasoline, fuel, and oil. . . . . . . . . . . . . . . . $0 $0.00 33 Veterinary, breeding, and me $6,043 $0.37 22 Insurance (other than health). . . . . . . $2,545 $0.16 34 Other expenses. . . . . . . . . . . $6,237 $0.38

23a Mortgage interest. . . . . . . . . . . . . . . . . . . . . . $11,228 $0.69 Non-cash adjustments23b Other interest. . . . . . . . . . . . . . . . . . . . . . . . . . $1,027 $0.06

35 Total expenses. Add lines 12 through 34. . . . . . . . . . . . . . . . . . .$159,921 36 Net farm profit or (loss). Subtract line 35 from line 11. . . . . . . . . .$42,072