Ok, for the past few weeks I've been gathering all the farm receipts, sorting them, categorizing them, taping them to paper and scanning them in. I am current up to last weekend. The numbers are truly frightening:
Accounting (if we didn't have the farm, we would do our own taxes): $290
Business meetings (ok, suppers out. But we did talk about plans for the farm at every one of them): $272.79
Chemicals (herbicide, fungicide, etc for crops): $367.09
Custom Hire: $660.41
Feed (for cattle, including grain for cull cows/calves, mineral, salt blocks, etc): $3429.37
Fertilizer: $1447.84
Fuel: $5947.79
Insurance: $940.52
Pasture Rent: $1050.42
Repairs: $8950.10
Supplies: $4017.03
Taxes (land): $243.47
Travel Expenses: $230.54
Utilities: $161.88
Vet: $420.08
Total: $28,429.34.
This doesn't include cell phone bills, mileage on my vehicle, some of the insurance that isn't included yet, interest on loans, 3 bulls and a cow, and depreciation on equipment. We bought a $57,000 swather this year that we are going to depreciate over a few years,a $3000 4 wheeler this year, along with the cows, tractor and baler that we have gotten in years past.
I'll be able to write off my house mortgage interest, maybe his house interest, and maybe student loan interest, and probably half the internet because it is required for my job. Other than that, no other personal deductions.
There will be farm income to offset those expenses, but I haven't figured that up yet.
I can't believe Repairs are so much. The next step is to go through all the repairs and see if they are general maintenance type repairs or if they are a sign of equipment that needs to be someone else's headache.
I did expect Fuel to be that high. That is all farm fuel, for pickups, tractors, swathers, 4 wheeler, combine, etc.
Scary numbers
August 5th, 2008 at 02:29 am
August 5th, 2008 at 02:49 am 1217904578
As a farmer, do you have any insights or thoughts on corn as a commodity?
August 5th, 2008 at 02:58 am 1217905114
What are the Supplies?
August 5th, 2008 at 03:01 am 1217905261
Short story is, I need to learn about "marketing" the crop and not just growing it.
But, look here:
http://unitedag.coop/
and click on FC Stone Morning Comments on the left. That would be a good place to start learning about the "technicals".
August 5th, 2008 at 03:13 am 1217906010
Looks like most of those things are a one time expense (or a once in 10 years kind of expense), like the fencing equipment, the various tools, diesel fuel barrel, etc.
August 5th, 2008 at 03:34 am 1217907297
August 5th, 2008 at 04:41 am 1217911306
On the bright side, the vet bill seems much lower than what I would have expected ... not that I know anything about animal husbandry (I don't).
August 6th, 2008 at 02:22 pm 1218032537
August 7th, 2008 at 01:46 am 1218073592