Farm Sim Getting Started

Crop Ground:

You will have a total of about $1500$ acres of farmland. You own about $750$ acres and will be

renting about $750$ acres. $($This was completed in SMS Advanced already$)$ The $750$ owned acres

are bought with a few acres still being paid for but each year you will have to pay rent on the

other $750$ acres. You will have to figure rent off of the Land Value Spread Sheet $($Avg$)$ and$/$or

county information the first year as well as the value of the $750$ you own for a net worth

statement.

As for your remaining land payment on the ground you own. Everyone will use the same

payments to keep things somewhat even$/$similar$.$ These two fields are included in your $750$

owned acres.

$*$You owe money towards the $235$ total acres below and own about $515$ outright.

Field $1$: You bought $80$ acres for $$2,000$ an acre $28$ years ago. This involved borrowing $$160,000$

from the bank at $4\mathrm{.}5\%$ interest. You have two payments left on this land worth $$19,440$ or $$9,720$

a year for Years $1$ and $2.$ After this, you own the land and only pay insurance and taxes.

Field $2$: You purchased $155$ acres for $$9,50010$ years ago when land was increasing. After a

down payment this involved borrowing $$1,178,000$ from the bank at $4\%$ interest. You are $10$

years into a $30$ year loan and still owe $$925,544\mathrm{.}67$ or $$67,487$ a year.

You will be growing corn and soybeans. The easiest method for the scenario is put all of your

Soybeans on rented ground the first year and Corn on the ground you own. Then just flip to

Soybeans on the owned ground in year $2$ and Corn on the rented fields for year $2.$

Machinery:

You will begin your operating year with $$1,500,000$ cash on hand. This will be used to purchase

all expenses your first year and buy an equipment lineup. You will need to purchase or lease the

following equipment for your crop operation:

$$ Combine minimum $6$ row$/25$ ft headers

$$ Corn Head $($Min $6$ Row$)$

$$ Bean Head$/$Platform $($Min $25$ ft$)$

$$ Grain cart

$$ Planter $($Min $12$ row$)$

$2$ Tractors minimum $240$ Hp Each

$$ Tillage equipment of your choice. You may choose to practice no till and have no tillage

equipment.

$$ Grain Hauling Equipment $($Min $4500$ bu wagons or $2$ Semi Trailers$)$

$$ Sprayer $($Self Propelled or Pull Behind, min $60$ft boom$)$

Use current prices when purchasing. You may also purchase other pieces of equipment if

you so desire.

Livestock:

You will have to decide whether to feed cattle or hogs. All will be bought as feeder animals and

feed out to market weights and sold. If you are feeding cattle you have facilities to feed out $500$

beef animals at a time or $2000$ hogs at a time. You will have to take all costs into consideration

for feeding.

Building expenses will be $$15$ per hd per year. This will cover any existing building payments

existing or depreciated out. These are set and will not be paid off like the land.

Here's what I need submitted to canvas by next class:

$$ Report$/$list with Farm Name, County, and livestock plan.

o Zuck Farm, Black Hawk County, Raising Cattle

$$ Beginning inventories with Machinery.

o List the specific make and model, year, price paid, and an image for each.

o Combine: John Deere $9650,2005,$ $$65,000($image$)$

o Include images. Hours are optional. You may have more than what$$s required but

remember you still need to cover your Year $1$ inputs and expenses: seed, fertilizer,

rent payments, land payments, etc. $($Probably cannot afford to buy all NEW

equipment$)$

o You will be able to set up an operating loan or you can set up a payment plan for

the equipment.

$$ Operating Loan will be for $8$ months at $10\%$ interest

$$ Equipment Loan will be for $3$ years at $7\mathrm{.}5\%$ interest

$$ Leasing is an option but must be figured each year