High feed costs and low profit margins are challenging dairy farmers to do more with less, says Roger Betz, Michigan State University district extension farm management agent. A tool create by Michigan State University Extension can help you evaluate and manage cash flow. And it’s in an easy-to-use Microsoft Excel format.
To use, simply input your specific financial and milk-production information monthly. You use your monthly projected milking cow numbers, projected milk prices and projected cash expenses and loan payments along with other incomes. The program will then give you future cash flow needs and potential shortfalls. This can be very useful in making adjustments, planning for capital improvements or discussions with lenders. As time goes forward you can input your actual monthly numbers to monitor and adjust your projections.
To download the tool:
- Go to: Roger Betz’s Farm Financial Management web page
- Scroll down to 2009 Dairy Cash Flow Excel Spread Sheet on the left.
- Click on “Right Click Here” to download the Excel spreadsheet, and
- Save the spreadsheet on your own computer.
After you’ve downloaded your personal copy, enter in the pertinent information for your farm. If you have questions, or would like further information, contact Roger Betz .
Source: Michigan State University