lpexample2005 - Farm Management The LP Tableau The...

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Farm Management The LP Tableau
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farm management chapter 12 2 The Objective Function The objective function values are returns above variable costs from the modified enterprise budgets.
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farm management chapter 12 3 Table 9 ENTERPRISE LEVEL ACES VC IMPLIED VC ACTUAL VC Ratio Soybeans 200 $133 $26,584 Corn 100 $157 $15,714 Wheat 200 $92 $18,355 Hay 75 $296 $22,227 Cow-Calf 0.54 $42,460 $23,088 Stockers 0.29 $37,413 $10,690 Total $116,656 101,119 0.87 TABLE 9. IMPLIED VERSUS ACTUAK VARIABLE COSTS
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farm management chapter 12 4 Use This Ratio Use this ratio to modify the variable costs on the enterprise budgets. See the hand-out, farm plan guide, part 2.
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farm management chapter 12 5 Constructing the LP, OBJ Hay Corn SB Wheat STK CC OBJ 163.11 55.04 59.88 91.73 6,264.86 1458.16
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farm management chapter 12 6 Find Available Resources You will need to look at table 4 to find the land available. You will need to construct table 10 to find labor availability by period of the year.
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farm management chapter 12 7 Our Farm Plan Guide Example ITEM UNITS Quantity Quantity Sales Produced Sold Revenue (per Acre) ($/Unit) Soybeans Bu. 200 30 6,000 6,000 $6.00 $36,000 Corn Bu. 100 110 11,000 11,000 2.8 30,800 Wheat (doubled cropped) Bu. 200 40 8,000 8,000 3.5 28,000 Hay Tons 75 7 525 475 75 35,625 Pasture 120 Less Dbl Cropped -200 Total 495 $130,425 TABLE 4. LAND USE, CROP PRODUCTION, AND SALES, 2004 PRODUCED SOLD ACRE YIELD Price Farm has 300 acres cropland, 75 acres hay land, 120 acres of pasture.
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farm management chapter 12 8 Constructing Table 10 First thing to do is find the number of full-time equivalents in year-round labor.
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farm management chapter 12 9 My Example Labor full time year round Operator 1.00 family labor two weeks worth hired help half time may 86 june 87 july 86 august 87
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farm management chapter 12 10 Find Full-Time Equivalents TABLE 10. LABOR FORCE 2004 WORKER No. PERIOD Months Equivalent Operator 1 All year 12.0 Family labor two weeks worth All year 0.5 Hired Labor 1 All year 6.0 TOTAL FULL-TIME =18.5/12=1.54 18.5 Seasonal Labor 20 hours per week May – Aug
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This note was uploaded on 11/15/2011 for the course AGEC 7100 taught by Professor Duffy,p during the Fall '08 term at Auburn University.

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lpexample2005 - Farm Management The LP Tableau The...

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