per Unit Step 4: Sum all enterprises Indicate below how many units of each enterprise you want to produce, then multiply by the gross margin per unit to get the total gross margin for each enterprise. Include at least three crops and one livestock enterprise. Remember, you have only 2,400 acres of cropland, 800 acres of pasture, and 8,100 hours of labor. 800 + 800 800 2,400 Gross Operating Labor Total Total Number Revenue Costs Hours Total Gross Operating Hours Enterprise of Units per unit per unit Revenue Costs of Labor Corn 800 acres $715 $445 4.0 Sorghum acres $464 $284 2.2 Wheat 800 acres $338 $160 1.6 Hay 800 acres $476 $280 3.1 Sunflowers acres $400 $200 2.0 COWS $725 Beef cow/calf $490 8 ewes Ewe flock $264 $140 5 $4280 cows Dairy $2,800 80 Stocker steers head $880 $540 2.1 Whole Farm Totals acres (crops only) (2,400 maximum hr. (8,100 max.) The purpose of this assignment is to (a) learn how to prepare a whole farm budget for a hypothetical farming situation, (b) use the whole farm budget to project profits and net farm income, and (e) estimate requirements and availability of key resources such as land, labor and feed. Step 1: Select Possible Enterprises Your farm is located in the Midwest. The following enterprises are available: Crops: Com, grain sorghum, wheat, alfalfa hay and sunflowers Livestock: Beef cow/calf, ewe flock, dairy herd, stocker steers Step 2: Resources and Constraints You have the following resources available: Land 2,400 acres that can be used for any of the crops listed in Step 1, and 800 ac acres that can be used for pasture, only. Buildings and Machinery You have machinery and buildings for any of the enterprises listed in Step 1. Labor You have a maximum of 8,100 hours of labor available, as a fixed resource (3 full-time people). Feed All com and hay fed to livestock must be produced on the farm. Step 3: Enterprise Budgets Your enterprise budgets show that the estimated gross margins and labor requirements are as follows: Crops (per acre) Corn Sorghum Wheat Alfalfa Hay Sunflowers Yield 130 bu. 80 bu. 50 bu. 3.4 tons 1600 pounds $6.75 $5.50 $715 $5.80 $464 $140 $476 S.25 $400 $338 Price Gross revenue Operating costs (excluding labor) Gross margin per acre Labor required (hours / acre) 160 445 $270 284 $180 280 $196 $178 200 $200 4.0 2.2 1.6 3.1 2.0 per Unit Step 4: Sum all enterprises Indicate below how many units of each enterprise you want to produce, then multiply by the gross margin per unit to get the total gross margin for each enterprise. Include at least three crops and one livestock enterprise. Remember, you have only 2,400 acres of cropland, 800 acres of pasture, and 8,100 hours of labor. 800 + 800 800 2,400 Gross Operating Labor Total Total Number Revenue Costs Hours Total Gross Operating Hours Enterprise of Units per unit per unit Revenue Costs of Labor Corn 800 acres $715 $445 4.0 Sorghum acres $464 $284 2.2 Wheat 800 acres $338 $160 1.6 Hay 800 acres $476 $280 3.1 Sunflowers acres $400 $200 2.0 COWS $725 Beef cow/calf $490 8 ewes Ewe flock $264 $140 5 $4280 cows Dairy $2,800 80 Stocker steers head $880 $540 2.1 Whole Farm Totals acres (crops only) (2,400 maximum hr. (8,100 max.) The purpose of this assignment is to (a) learn how to prepare a whole farm budget for a hypothetical farming situation, (b) use the whole farm budget to project profits and net farm income, and (e) estimate requirements and availability of key resources such as land, labor and feed. Step 1: Select Possible Enterprises Your farm is located in the Midwest. The following enterprises are available: Crops: Com, grain sorghum, wheat, alfalfa hay and sunflowers Livestock: Beef cow/calf, ewe flock, dairy herd, stocker steers Step 2: Resources and Constraints You have the following resources available: Land 2,400 acres that can be used for any of the crops listed in Step 1, and 800 ac acres that can be used for pasture, only. Buildings and Machinery You have machinery and buildings for any of the enterprises listed in Step 1. Labor You have a maximum of 8,100 hours of labor available, as a fixed resource (3 full-time people). Feed All com and hay fed to livestock must be produced on the farm. Step 3: Enterprise Budgets Your enterprise budgets show that the estimated gross margins and labor requirements are as follows: Crops (per acre) Corn Sorghum Wheat Alfalfa Hay Sunflowers Yield 130 bu. 80 bu. 50 bu. 3.4 tons 1600 pounds $6.75 $5.50 $715 $5.80 $464 $140 $476 S.25 $400 $338 Price Gross revenue Operating costs (excluding labor) Gross margin per acre Labor required (hours / acre) 160 445 $270 284 $180 280 $196 $178 200 $200 4.0 2.2 1.6 3.1 2.0