can you help me answer the two questions based on my findings in the excel sheet? i dont quite follow the question

Ch. 10 Assignment Enterprise Budgeting C D E F G H M N Southwest Mn Crop Analysis Corn on Cash Rent 2020 Out of 10 2020 Base 200 $ 4,25 $850.00 $ 7.00 $ 50.00 $907.00 15 point Scenario 1 190 $ 4.25 $ 807.50 $ 8.75 $ 57.50 $ 873.75 Scenario 2 160 $ 4.00 $ 608.00 $ 70.00 $ $ 578.00 Scenario 160 $ 550 $ 836.00 $ 100.00 5 $.936.00 Scenario 4 155 5.75/5.25 5 941.25 $ 100.00 $ - $ 1.04125 Scenarios 140 5 5.75 $ 805.00 $ 100.00 $ $905.00 5 Free Yield per acre (bu.) Value per bu Total product return per acre Crop Insurance per acre Other crop Income per acre Gross return per acre Direct Expenses Seed Fertilizer Crop chemicals Crop Insurance Drying expense Storage Fuel & oil Repairs Custom hire Hired labor Land rent Machinery leases Marketing Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre Overhead Expenses 1 $ 104.00 $ 104.00 $ 32.00 $ 18.00 $7.00 $ 100 $ 21.00 $ 44,00 $ 9.00 $ 3.00 $ 203.00 $ 3.00 $ 200 $ 13.00 $ 4.00 S 568.00 $ 339.00 $ 109.20 $ 109,20 $ 33.60 $ 18.90 $ 7.35 $ 1.05 $ 14.70 $ 4620 $ 9.45 $ 3.15 $ 203.00 $ 3.15 S 2.10 $ 10.40 $ 4.20 $575,65 $ 298 10 $ 11440 $ 208.00 $ 4160 $18.90 $ 735 $ 1.05 $ 22.05 $39.60 $ 8.10 $ $ 213.15 $ 3.15 $ 2.10 $ 1365 $ 420 $ 700.00 $22.00) $ 114.40 $ 200.00 $ 41.60 $ 19,80 $ 7.70 $ 110 $ 23.10 5 39.60 $ 8.10 $ 2.70 $ 22330 $ 315 $ 220 $ 14.30 5 4.40 971345 $ 222 55 $ 7500 $ 3400 5 4160 $ 18.30 $ 735 5 1.05 $ 22.05 $ 52.30 $ 19.00 $ 2.70 $ 21:15 5 $ 2.10 $ 1365 $ 420 $ 55755 $ 483.10 $ 10400 $ 304.00 $ 32.00 $ 1890 $ 7.35 5 105 $ 22.05 5 52.80 S 49.00 $ 6.00 $213.15 $ 5 2.10 $ 1690 5 30 $ 3.50 S27150 2.70 vis $ 12.60 3 12.60 $ $ 1135 S 525 $ 115 5 525 $ 690 525 3 4 15 16 27 08 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 $ 12.00 $ 12.00 $ 1.00 $ 1100 $ 5.00 $ 3.00 $ 5.00 $ 5800 $ 700 $ 114.00 568200 $225.00 $50.00 $ 27500 Hired labor Machinery leases Building leases Farm Insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre Government payments Net return with govt pts Labor & management charge Net return over Ibr&mit Cost of Production (Breakevens) Total direct expense per bu Total dir & ovhd exp per bu Less govt & other income with labor & management $ 12.00 $ 12.00 $ 100 $ 1100 $ 500 $ 3.00 $ 5.00 $ 58.00 $ 700 $ 114.00 $689.65 $ 18410 $ 3750 $ 221 60 $ $ 162.50 $ 9.60 $ 9.60 $ 2.05 $ 1155 $ 525 $ 315 $ 525 $60 90 $ 2335 $112.70 $81370 $(13045) $ 2500 $55.45) $ 59.00 $1214.45) $ 9.60 $ 9.60 $ 110 $ 12.10 $ $50 $ 130 $ 550 $380 $ 7.70 $180 S 2016 $ 1005 $ 100.00 $ 2005 $59.00 $ 145 15 $ 9.50 $ $ 105 $ 11.55 5 5.35 3 3.15 5 $ 10.00 25 $ 73.30 61095 5 41050 100.00 $ $10.50 $ 45150 119 20 5 75320 1510 $ 100.00 $ 25130 $ 00 $10 5800 59.00 14 $ 59.00 $ 21600 650 30 5 5 $ 5 250 $ $ $ $ 30 35 308 3.19 $ 284 $ 141 $288 $ $ $ $ S 446 5.20 1.47 15 $ 5 $ $ 500 3.28 165 BON On the attached Excel spread sheet is data taken from the University of Minnesota's tenter for Farm Financial Management (CFFM) EinBin database. (https://finbin umn.edu/CpSummOpts/CpSummIndex) The data is an Enterprise Analysis for 2020 Cash Rent Com in Southwest Minnesota. Your assignment is to use the 2020 data as a base to determine a budget for each of the following situations. The first column is the 2020 data. All cells are formulated to do all the calculations. Use this column as a template and adjust as needed. READ EACH SCENARIO CAREFULLY. Remember to also use the 2020 base data for each one, not the adjacent cells (unless specified). This is a new assignment I developed, so please ask questions so I can improve the clarity of the assignment. Each scenario is worth 15 points. a Scenario 1 2020 was a good year. Yields were up from 2019, as were prices. Going into 2021, conditions are dry. You hope to have a yield at 95% of last year, which would be at your 10-year average, and a price the same as last year. You increased your crop insurance levels, which cost 25% more than last year but could increase crop insurance revenue by 15%. Your landlord held cash rent at last year's price. Because of COVID-19, the cost of fuel has increased by 40%, however you had half your fuel use contracted at the same price as last year. Interest rates remain low, and your operating loan balance is lower than previous years, which should result in your operating interest costs to decrease by 20%. All other variable Direct costs have increased by 5% due to inflationary pressures. Your overhead costs and labor & management charges are the same. You anticipate a that government payment and other income will both decrease by 25%. Scenario 2 The dry conditions have you concerned. Without any rain, you fear that your yields will only be about 80% of last year. However, the drought is localized to the upper northern plains, so your local corn bid is $4.00 for new crop com, and you don't anticipate a higher price. Inflation is causing prices to really increase, with a 10% increase on seed, 30% on chemicals, and a doubling of the cost of fertilizer. Because of the decrease in bushels, your repair, custom hire, and both (direct and overhead) hired labor and machine lease costs all decrease by 10%. All other expenses increased by 5%. Because of the low yields, you anticipate a government payment of about 50% more PER BUSHEL than last year and crop insurance revenue 1,000% higher than last year. No other income" is anticipated this year. Scenario 3 Same as Scenario 2 except the following changes. Com prices rally to $5.50 by fall, but all other expenses not listed separately above change from a increase of 5% to an increase of 10%. Government payments increase by 200% PER BUSHEL from 2020. Crop insurance revenue increased to $100 per acre 1 I Scenario 4 Same as Scenario 2, except the following changes. You've been operating lean the last few years, cutting expenses where you can. You have older equipment, that cost 20% more to repair, but have reduced your Machinery leases to SO and machinery and building depreciation to $30 per acre. You've dropped seed costs down by using a combination of double-stack varieties and conventional com, which has reduced you seed cost down to $75 per acre, with only a five- bushel per acre loss (155 bu/acre). You also use VRT fertilizer grids, applied by a custom operator, that increased your custom rate per acre costs by $10, but decreased fertilizer cost by $20 per acre from 2020. You also marketed part your production ahead of time at $6.25 on 100 bushels per acre, with the rest at $5.75. Crop insurance payments are anticipated to be at $100 Scenario 5 Everything is the same as Scenario 4 except the following changes. Because of your good business sense and aggressiveness, you were able to double your acres in 20201. The new additional land is not as productive, with an anticipated yield of 140 bushels per acre with the drought. Because you have the capacity to do this, your total overhead expenses are the same, but now they are spread out over TWICE as many acres (still use a 5% increase). You do need to hire a custom harvester on the extra acres, which will cost $30 per EXTRA acre, plus the extra $10 for the fertilizer spreading, Repairs increase by 50%. Because it was late in the season, your seed, fertilizer, and chemical costs are the same as 2020 on the ADDITIONAL ACRES. You also need to hire another employee, which doubles your cost of hired labor from 2020. You also must carry a little more debt, so your operational interest increased by 30%. Unfortunately, you didn't cover these additional acres with early selling and anticipate selling the additional corn bushels at $5.75 Answer the following questions 1. In 2020, the Corona Food Assistance Program (CFAP) was given to farmers and was not considered a Goverment payment, but rather "other income". In the 2020 base case, it was $50 per acre. Other government payments totaled $50 dollars per acre, for a total of S100 between the two. The average crop insurance payment for this group was small at S7 per acre. What would the four Cost of Production Break even have been if none of those payments were received? How would this affect a farmer's profitability? Use Scenario 1 (10 pts) 2. In Scenario 5, say when we doubled in acres, it was from 500 acres to 1,000 acres. Was it worth it? Why or why not? Explain (15pts) (Hint: Think in terms of profit using the different total revenues and expenses.) Ch. 10 Assignment Enterprise Budgeting C D E F G H M N Southwest Mn Crop Analysis Corn on Cash Rent 2020 Out of 10 2020 Base 200 $ 4,25 $850.00 $ 7.00 $ 50.00 $907.00 15 point Scenario 1 190 $ 4.25 $ 807.50 $ 8.75 $ 57.50 $ 873.75 Scenario 2 160 $ 4.00 $ 608.00 $ 70.00 $ $ 578.00 Scenario 160 $ 550 $ 836.00 $ 100.00 5 $.936.00 Scenario 4 155 5.75/5.25 5 941.25 $ 100.00 $ - $ 1.04125 Scenarios 140 5 5.75 $ 805.00 $ 100.00 $ $905.00 5 Free Yield per acre (bu.) Value per bu Total product return per acre Crop Insurance per acre Other crop Income per acre Gross return per acre Direct Expenses Seed Fertilizer Crop chemicals Crop Insurance Drying expense Storage Fuel & oil Repairs Custom hire Hired labor Land rent Machinery leases Marketing Operating interest Miscellaneous Total direct expenses per acre Return over direct exp per acre Overhead Expenses 1 $ 104.00 $ 104.00 $ 32.00 $ 18.00 $7.00 $ 100 $ 21.00 $ 44,00 $ 9.00 $ 3.00 $ 203.00 $ 3.00 $ 200 $ 13.00 $ 4.00 S 568.00 $ 339.00 $ 109.20 $ 109,20 $ 33.60 $ 18.90 $ 7.35 $ 1.05 $ 14.70 $ 4620 $ 9.45 $ 3.15 $ 203.00 $ 3.15 S 2.10 $ 10.40 $ 4.20 $575,65 $ 298 10 $ 11440 $ 208.00 $ 4160 $18.90 $ 735 $ 1.05 $ 22.05 $39.60 $ 8.10 $ $ 213.15 $ 3.15 $ 2.10 $ 1365 $ 420 $ 700.00 $22.00) $ 114.40 $ 200.00 $ 41.60 $ 19,80 $ 7.70 $ 110 $ 23.10 5 39.60 $ 8.10 $ 2.70 $ 22330 $ 315 $ 220 $ 14.30 5 4.40 971345 $ 222 55 $ 7500 $ 3400 5 4160 $ 18.30 $ 735 5 1.05 $ 22.05 $ 52.30 $ 19.00 $ 2.70 $ 21:15 5 $ 2.10 $ 1365 $ 420 $ 55755 $ 483.10 $ 10400 $ 304.00 $ 32.00 $ 1890 $ 7.35 5 105 $ 22.05 5 52.80 S 49.00 $ 6.00 $213.15 $ 5 2.10 $ 1690 5 30 $ 3.50 S27150 2.70 vis $ 12.60 3 12.60 $ $ 1135 S 525 $ 115 5 525 $ 690 525 3 4 15 16 27 08 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 $ 12.00 $ 12.00 $ 1.00 $ 1100 $ 5.00 $ 3.00 $ 5.00 $ 5800 $ 700 $ 114.00 568200 $225.00 $50.00 $ 27500 Hired labor Machinery leases Building leases Farm Insurance Utilities Dues & professional fees Interest Mach & bldg depreciation Miscellaneous Total overhead expenses per acre Total dir & ovhd expenses per acre Net return per acre Government payments Net return with govt pts Labor & management charge Net return over Ibr&mit Cost of Production (Breakevens) Total direct expense per bu Total dir & ovhd exp per bu Less govt & other income with labor & management $ 12.00 $ 12.00 $ 100 $ 1100 $ 500 $ 3.00 $ 5.00 $ 58.00 $ 700 $ 114.00 $689.65 $ 18410 $ 3750 $ 221 60 $ $ 162.50 $ 9.60 $ 9.60 $ 2.05 $ 1155 $ 525 $ 315 $ 525 $60 90 $ 2335 $112.70 $81370 $(13045) $ 2500 $55.45) $ 59.00 $1214.45) $ 9.60 $ 9.60 $ 110 $ 12.10 $ $50 $ 130 $ 550 $380 $ 7.70 $180 S 2016 $ 1005 $ 100.00 $ 2005 $59.00 $ 145 15 $ 9.50 $ $ 105 $ 11.55 5 5.35 3 3.15 5 $ 10.00 25 $ 73.30 61095 5 41050 100.00 $ $10.50 $ 45150 119 20 5 75320 1510 $ 100.00 $ 25130 $ 00 $10 5800 59.00 14 $ 59.00 $ 21600 650 30 5 5 $ 5 250 $ $ $ $ 30 35 308 3.19 $ 284 $ 141 $288 $ $ $ $ S 446 5.20 1.47 15 $ 5 $ $ 500 3.28 165 BON On the attached Excel spread sheet is data taken from the University of Minnesota's tenter for Farm Financial Management (CFFM) EinBin database. (https://finbin umn.edu/CpSummOpts/CpSummIndex) The data is an Enterprise Analysis for 2020 Cash Rent Com in Southwest Minnesota. Your assignment is to use the 2020 data as a base to determine a budget for each of the following situations. The first column is the 2020 data. All cells are formulated to do all the calculations. Use this column as a template and adjust as needed. READ EACH SCENARIO CAREFULLY. Remember to also use the 2020 base data for each one, not the adjacent cells (unless specified). This is a new assignment I developed, so please ask questions so I can improve the clarity of the assignment. Each scenario is worth 15 points. a Scenario 1 2020 was a good year. Yields were up from 2019, as were prices. Going into 2021, conditions are dry. You hope to have a yield at 95% of last year, which would be at your 10-year average, and a price the same as last year. You increased your crop insurance levels, which cost 25% more than last year but could increase crop insurance revenue by 15%. Your landlord held cash rent at last year's price. Because of COVID-19, the cost of fuel has increased by 40%, however you had half your fuel use contracted at the same price as last year. Interest rates remain low, and your operating loan balance is lower than previous years, which should result in your operating interest costs to decrease by 20%. All other variable Direct costs have increased by 5% due to inflationary pressures. Your overhead costs and labor & management charges are the same. You anticipate a that government payment and other income will both decrease by 25%. Scenario 2 The dry conditions have you concerned. Without any rain, you fear that your yields will only be about 80% of last year. However, the drought is localized to the upper northern plains, so your local corn bid is $4.00 for new crop com, and you don't anticipate a higher price. Inflation is causing prices to really increase, with a 10% increase on seed, 30% on chemicals, and a doubling of the cost of fertilizer. Because of the decrease in bushels, your repair, custom hire, and both (direct and overhead) hired labor and machine lease costs all decrease by 10%. All other expenses increased by 5%. Because of the low yields, you anticipate a government payment of about 50% more PER BUSHEL than last year and crop insurance revenue 1,000% higher than last year. No other income" is anticipated this year. Scenario 3 Same as Scenario 2 except the following changes. Com prices rally to $5.50 by fall, but all other expenses not listed separately above change from a increase of 5% to an increase of 10%. Government payments increase by 200% PER BUSHEL from 2020. Crop insurance revenue increased to $100 per acre 1 I Scenario 4 Same as Scenario 2, except the following changes. You've been operating lean the last few years, cutting expenses where you can. You have older equipment, that cost 20% more to repair, but have reduced your Machinery leases to SO and machinery and building depreciation to $30 per acre. You've dropped seed costs down by using a combination of double-stack varieties and conventional com, which has reduced you seed cost down to $75 per acre, with only a five- bushel per acre loss (155 bu/acre). You also use VRT fertilizer grids, applied by a custom operator, that increased your custom rate per acre costs by $10, but decreased fertilizer cost by $20 per acre from 2020. You also marketed part your production ahead of time at $6.25 on 100 bushels per acre, with the rest at $5.75. Crop insurance payments are anticipated to be at $100 Scenario 5 Everything is the same as Scenario 4 except the following changes. Because of your good business sense and aggressiveness, you were able to double your acres in 20201. The new additional land is not as productive, with an anticipated yield of 140 bushels per acre with the drought. Because you have the capacity to do this, your total overhead expenses are the same, but now they are spread out over TWICE as many acres (still use a 5% increase). You do need to hire a custom harvester on the extra acres, which will cost $30 per EXTRA acre, plus the extra $10 for the fertilizer spreading, Repairs increase by 50%. Because it was late in the season, your seed, fertilizer, and chemical costs are the same as 2020 on the ADDITIONAL ACRES. You also need to hire another employee, which doubles your cost of hired labor from 2020. You also must carry a little more debt, so your operational interest increased by 30%. Unfortunately, you didn't cover these additional acres with early selling and anticipate selling the additional corn bushels at $5.75 Answer the following questions 1. In 2020, the Corona Food Assistance Program (CFAP) was given to farmers and was not considered a Goverment payment, but rather "other income". In the 2020 base case, it was $50 per acre. Other government payments totaled $50 dollars per acre, for a total of S100 between the two. The average crop insurance payment for this group was small at S7 per acre. What would the four Cost of Production Break even have been if none of those payments were received? How would this affect a farmer's profitability? Use Scenario 1 (10 pts) 2. In Scenario 5, say when we doubled in acres, it was from 500 acres to 1,000 acres. Was it worth it? Why or why not? Explain (15pts) (Hint: Think in terms of profit using the different total revenues and expenses.)