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Scary numbers

August 5th, 2008 at 02:29 am

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.

8 Responses to “Scary numbers”

  1. Broken Arrow Says:

    Ok! So I guess I'm not going to be running a farm anytime soon.

    As a farmer, do you have any insights or thoughts on corn as a commodity?

  2. scfr Says:

    Repairs = Ouch!

    What are the Supplies?

  3. cptacek Says:

    My take is that corn right now all depends on ethanol. It is artificially high because of the tax incentives to make it into ethanol, and commodities also follow oil. You can almost count on it...when oil goes up, stocks go down and other commodities go up. When oil goes down, crops go down. At least in the past 6 months. But there is sooo much more than are other countries crops coming? Did our crop get in the ground in time? Has it been too dry? Too wet?

    Short story is, I need to learn about "marketing" the crop and not just growing it.

    But, look here:
    and click on FC Stone Morning Comments on the left. That would be a good place to start learning about the "technicals".

  4. cptacek Says:

    Gosh, I'll just name a few supplies. Fence stretcher. Metal for building a grapple fork for the tractor and for building a feed bunk. Acetylene bottle for the torch. Socket set. Air Compressor. Insulators and gate handles, posts, electric fencers (3 of them). Shop towels. Impact wrench. Feed bunks. Diesel fuel barrel. Floor jack. Twine (a BIG expense. This was $959, and we are going to have to get more). Portable radio for the shed. R134A Refrigerant (to charge up the air conditioners). Tire sealant. Baler operating manual (it didn't come with one). Leather gloves. Oil filters. Misc office supplies (3 ring binders for maps, etc). Wrenches. Bearing puller.

    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.

  5. Broken Arrow Says:

    Terrific! Thank you for your thoughts.

  6. scfr Says:

    Ah - That makes sense. Sounds like you got hit with a lot of "start up" type expenses right off the bat.

    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).

  7. luxlivingfrugalis Says:

    So, these numbers are YTD?

  8. cptacek Says:

    YTD, but some things are missing. Mileage, cell phones, big ticket items we are depreciating, interest, real estate taxes, etc. These are basically out of pocket expenses, but yes, YTD out of pocket expenses.

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