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ADC/input costs
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<blockquote data-quote="greybeard" data-source="post: 1253384" data-attributes="member: 18945"><p>I didn't sell out--just downsized the total amt of property. If as CB says, the initial cost of the acreage has to debited against the ag operation (and it was) then the income derived from the sale also has to be calculated into the equation.</p><p></p><p>I understand fully the importance of being able to see how efficient any operation is, but most (I suspect a very high percentage) have no need for a PER DAY cost analysis--on any given day--or even month. Your cow/calf weaning period/weight gain/market weights/market revenue example is a very good one for that time period, but again, you <em>started</em> the equation with a figure ($1.60) that you don't even know until later--at earliest, after that 165-180 day weaning window and final sale, but more likely, at the end of the year when all the calculations for the entire operation are done and divided by 365.</p><p>You didn't add and subtract at the end of each day to arrive at that figure. You </p><p>you don't know that per day cost until after a much longer time period, and ever expenditure and every receipt (revenue) has to be figured in to arrive at that $1.60 that began the equation. Buy a new trailer or sell an old one, both go into the equation. </p><p></p><p>There has to be some way to figure in unrealized or 'yet to be realized' profits in your infrastructure, buildings, and equipment side.</p></blockquote><p></p>
[QUOTE="greybeard, post: 1253384, member: 18945"] I didn't sell out--just downsized the total amt of property. If as CB says, the initial cost of the acreage has to debited against the ag operation (and it was) then the income derived from the sale also has to be calculated into the equation. I understand fully the importance of being able to see how efficient any operation is, but most (I suspect a very high percentage) have no need for a PER DAY cost analysis--on any given day--or even month. Your cow/calf weaning period/weight gain/market weights/market revenue example is a very good one for that time period, but again, you [i]started[/i] the equation with a figure ($1.60) that you don't even know until later--at earliest, after that 165-180 day weaning window and final sale, but more likely, at the end of the year when all the calculations for the entire operation are done and divided by 365. You didn't add and subtract at the end of each day to arrive at that figure. You you don't know that per day cost until after a much longer time period, and ever expenditure and every receipt (revenue) has to be figured in to arrive at that $1.60 that began the equation. Buy a new trailer or sell an old one, both go into the equation. There has to be some way to figure in unrealized or 'yet to be realized' profits in your infrastructure, buildings, and equipment side. [/QUOTE]
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