Lec 3 - Total Costs - Sum of 6 Costs 1. Feed Costs - all...

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Total Costs - Sum of 6 Costs 1. Feed Costs - all farm raised and purchased grain, supplements, premixes, additives and complete feeds 2. Other operating costs: - utilities, fuel, electricity, telephone, vet services, medicine, hired machinery, trucking, supplies, repairs and marketing expenses. 3. Depreciation, taxes and insurance: - straight line depreciation on equipment and facilities, taxes and insurance 4. Interest on Fixed Capital - undepreciated value of equipment, facilities, and land used for the hog operation multiplied by the average real estate interest rate. 5. Interest on Operating Capital - breeding stock inventory + total feed costs + total other operation costs + taxes and insurance, .50 average short term loan rate 6. Labor - cost of hired labor and producer/family labor including management time Ways in which swine producers utilize enterprise records. 1. Pin point strengths and/or weaknesses in productivity and in costs. 2. Establish goals in productivity and efficiency using group averages or ranges while settling realistic levels. 3. For budgeting and forward planning for projecting cash flow needs. 4. To justify changes in operations. (ideas) 5. For Internal Revenue or tax responsibilities. Table 5. Productivity values for the top 10% profit group compared to the top 10% for various production measures.
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This note was uploaded on 03/01/2012 for the course ANSC 443 taught by Professor Staff during the Fall '08 term at Purdue University-West Lafayette.

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Lec 3 - Total Costs - Sum of 6 Costs 1. Feed Costs - all...

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