GROSS OUTPUT, VARIABLE COSTS AND FARM GROSS MARGIN, 2003/2004 Output Milk 0 0 Milk quota leasing, milk levy and compensation 0 0 Cattle 280 415 Herd depreciation -1 8 Cattle subsidies 135 211 Sheep 127 129 Flock depreciation -23-22 Sheep subsidies 30 19 Wool and cattle & sheep quota leasing 4 4 Pigs, poultry and other livestock 17 0 Cereals 28 46 Cereal subsidies 13 16 Other cash crops 1 0 Other cash crop subsidies 1 0 Straw 6 10 Set aside 0 0 Forage 13-5 Management agreements and agri-environment schemes 35 53 Miscellaneous output 111 95 TOTAL FARM OUTPUT ** 778 978 Variable costs Concentrates 107 136 Fodder & keep 15 12 Vet & Med 28 28 Other livestock costs 45 59 Seeds 5 7 Fertilisers 32 41 Crop protection 5 5 Other crop costs 4 6 Casual labour 13 26 Contract 28 28 TOTAL VARIABLE COSTS 281 349 TOTAL GROSS MARGIN ** 498 629
FIXED COSTS, FARM PROFIT AND MANAGEMENT & INVESTMENT INCOME, 2003/20 TOTAL GROSS MARGIN ** 498 629 Fixed costs Paid labour 31 11 Unpaid family labour 70 62 Machinery repairs 37 36 Machinery fuel 30 31 Machinery depreciation 60 72 Other depreciation 0 0 Property maintenance 37 33 Electricity 8 6 Other fuel 2 2 Water 11 9 Insurance 30 30 Professional fees 16 12 Other general costs 22 24 TOTAL FIXED COSTS EXCLUDE RENT AND INTEREST 352 326 PROFIT BEFORE RENT AND INTEREST ** 146 302 Rents 45 22 Rates 1 0 Long-term interest 6 15 Short-term interest 11 22 Interest received (-) -3-1 NET PROFIT ** 86 244 Reconciliation of Profit to NFI and M&II Interest charges (net) + 14 + 36 Landlord type repairs (included in property maintenance) + 3 + 2 Rental value (of owner occupied land and buildings) - 106-122 NET FARM INCOME (NFI) ** -3 160 Less farmer and spouse labour 250 248 MANAGEMENT AND INVESTMENT INCOME (M&II) ** -253-88
FINANCIAL COMPARISIONS per 100 OUTPUT, 2003/2004 per 100 output Output Milk 0 0 Cattle 53 65 Sheep 17 13 Pigs, poultry and other livestock 2 0 Cereals 5 6 Other cash crops 0 0 Straw, set aside and forage 3 0 Management agreements and agri-environment schemes 5 5 Miscellaneous output 14 10 TOTAL OUTPUT ** 100 100 Variable costs Concentrates, fodder and keep 16 15 Veterinary, medicines and other livestock costs 9 9 Seeds 1 1 Fertilisers 4 4 Crop protection and other crop costs 1 1 Casual labour 2 3 Contract 4 3 TOTAL VARIABLE COSTS 36 36 TOTAL GROSS MARGIN ** 64 64 Fixed costs Paid and unpaid labour (excluding farmer and spouse) 13 7 Machinery repairs and fuel 9 7 Machinery and other depreciation 8 7 Property maintenance 5 3 Electricity, other fuel and water 3 2 Other general costs 9 7 TOTAL FIXED COSTS EXCLUDE RENT AND INTEREST 45 33 PROFIT BEFORE RENT AND INTEREST ** 19 31 Rent and rates 6 2 Long-term interest paid 1 2 Short-term interest paid 1 2 Interest received (-) 0 0 PROFIT ** 11 25
LAND USE AND INDICATORS OF TECHNICAL EFFICIENCY, 2003/2004 Land use Percentage cropped 6 9 Percentage forage 94 91 Grazing livestock units Dairy cattle GLUs per farm 0 0 Other cattle 56 86 Sheep 25 22 Other livestock 2 0 Total 83 108 GLUs per ha 1.33 1.46 GLUs per adjusted ha 1.31 1.42 Technical efficiency Lowland cattle and sheep farms, under 100 hectares Dairy Milk yield per cow n/a n/a Pence per litre n/a n/a Output per cow n/a n/a Dairy calf output, per calf n/a n/a Finished cattle and lambs per finished animal 492 489 per finished lamb 51 57 Cereals ** Winter wheat Yield - tonnes per hectare n/a n/a Price per tonne n/a n/a Winter barley Yield - tonnes per hectare n/a n/a Price per tonne n/a n/a Spring barley Yield - tonnes per hectare 5.8 n/a Price per tonne 86 n/a Winter oats Yield - tonnes per hectare n/a n/a Price per tonne n/a n/a All cereals Yield - tonnes per hectare 5.4 5.7 Price per tonne 84 84 ** Cereal yields for groups growing less than 40ha excluded
TENANTS CAPITAL, OUTPUT RATIOS AND INDICATORS OF FINANCIAL EFFICIENCY, 2003/200 Tenant's capital formation Livestock 600 738 Crops, forage and cultivations 46 51 Stores 20 27 Machinery 310 365 Cattle and sheep quotas 64 58 Miscellaneous business assets & other assets 7 4 Total physical assets 1047 1243 Liquid assets 329 238 Tenant's capital (TC) 1376 1482 Management & investment income (M&II) ** -253-88 Return on tenant's capital (M&II as % of average TC) -18.4% -5.9% Ratios per 100 of output (%) Variable costs 36 36 Gross margin 64 64 Fixed costs (excluding rent and interest) 45 33 Net profit 11 25 Net farm income 0 16 Farmer and spouse 32 25 Management & Investment Income -33-9 Tenant's capital 177 152 Total assets 685 507 Total external liabilities 50 72 Net worth 635 435 Efficiency of labour use Costs ( per hectare) 364 347 Costs ( per 100 output) 47 36 Costs ( per 100 gross margin) 73 55 Efficiency of machinery use Costs ( per hectare) 155 166 Costs ( per 100 output) 20 17 Costs ( per 100 gross margin) 31 26 Efficiency of labour and machinery use Costs ( per hectare) 519 514 Costs ( per 100 output) 67 53 Costs ( per 100 gross margin) 104 82
END-OF-YEAR BALANCE SHEETS, 2003/2004 End of year assets & liabilities Land & buildings 3949 3420 Milk quota 0 0 Machinery 308 357 Tenant's other assets 0 0 Breeding livestock 237 164 Total fixed assets 4494 3941 Suckler cow and ewe premium quota 55 50 Trading livestock 388 611 Crops 8 8 Forage 37 40 Stores 25 38 Debtors and loans 204 186 Bank credit and cash 115 81 Other current assets 7 4 Total current assets 839 1018 Total assets 5333 4958 Financed by AMC 0 0 Bank loans 92 246 Other long term 39 16 Total long term 131 261 HP and lease 31 40 Creditors 57 53 Bank overdraft 170 352 Other short term 0 0 Total current liabilities 258 445 Total Liabilities 390 707 Net worth 4944 4252 Balance sheet ratios % Owner equity (net worth vs. total assets) 93% 86% % Fixed assets vs. total assets 84% 79% Gearing (long-term loans vs. total assets) 2% 5% Total debt (external liabilities vs. net worth) 8% 17% Ratio of current (assets vs. current liabilities) 325% 229% Liquidity Ratio (liquid assets vs. current liabilities) 123% 60%