Improving Lives. Improving Texas.

1. 2008 Oilseeds Workshop • Enterprise Budgets • FARM Assistance Jay Yates Extension Program Specialist - Risk Management Texas AgriLife Extension Service Improving Lives. Improving Texas.

7. Break-even Price to Cover Costs

8. Break-even Price to Cover Costs

9. Break-even Price to Cover Costs

10. Break-even Price to Cover Costs

11. Break-even Price to Cover Costs

12. Break-even Price to Cover Costs

13. Break-even Price to Cover Costs

14. Break-even Price to Cover Costs

15. Break-even Price to Cover Costs

16. Break-even Price to Cover Costs

17. Break-even Price to Cover Costs

18. Returns Above Total Specified Expenses

19. Total Direct Expenses

20. What Is FARM Assistance?Financial And Risk Management Assistance • Cutting edge technology that incorporates risky returns of agriculture • Long term planning tool designed to project the financial condition under risk • Goal is to evaluate the future impacts of management decisions before a commitment is made

21. FARM Assistance Benefits • Evaluate production, borrowing, & marketing alternatives • Estimate costs & returns using forward price information • Designed to provide a comparison of proposed changes to continuing the business “as is” • One-on-one approach allows for in-depth assessment of financial future

22. The Real Power of FARM Assist… Examining Alternatives • Take on more land • Grow different crops • Restructure debt • Increase livestock inventories • Sell calves at weaning, sell them as feeders or carry them through the feedlot

24. FARM Assistance Benefits “In the last few years, with all the restructuring and extending we’ve done, FARM Assistance has been essential in helping us sort out the long term solutions from the short term patches that simply delay the inevitable.” Brennan Vaverek, First United Bank, Seminole

25. FARM Assistance Benefits • Examine Proposed Plans • Reduced number of non-viable alternatives • Greater planning of new business ventures

26. FARM Assistance Benefits • Better Informed Decisions • Helps define and project the producer’s risk, both for the short and long term • Provides an informative, unbiased look at a farm’s long term financial future

27. FARM Assistance Benefits • Educational Outreach • Through the use of this innovative service producers become better: • Decision makers • Managers • Customers • Certified FSA Financial Management Training

28. FARM Assistance Benefits • Packaging • All production and financial information for a producer can be summarized in one report

29. FARM Assistance Costs • Base fee of $250 for analysis of: • Current situation • Multiple alternatives • Commitment • Several hours of face-to-face time • Gathering accurate, honest information

30. Ralph Waldo Emerson "I see young men, my townsmen, whose misfortune it is to have inherited farms, houses, barns, cattle, and farming tools; for these are more easily acquired than got rid of."

31. Funded in part by Texas State Support Committee of Cotton Incorporated • South Plains Profitability Workshops • Jackie Smith • Jay Yates • Jeff Pate • John Robinson 806-746-6101 February 17th March 5th 9:00 a.m. – 3:00 p.m. Texas AgriLife Research and Extension Center Classroom Registration Fee $20 Improving Lives. Improving Texas.

32. Jay Yates Extension Program Specialist Risk Management FARM Assistance Analyst • Contact Information: • Texas AgriLife Research and Extension Center • 1102 East FM 1294 • Lubbock, TX 79403 • (806) 746-6101 • jayates@ag.tamu.edu • http://lubbock.tamu.edu South Plains Cotton Update every Thursday at 1:30 p.m. during Ag Talk on Also available as blog online at http://agrilifeblogs.tamu.edu/mt/spcu or via email. Improving Lives. Improving Texas.

33. 2008 Oilseeds Workshop • Enterprise Budgets • FARM Assistance Jay Yates Extension Program Specialist - Risk Management 806-746-6101 jayates@ag.tamu.edu SouthPlainsProfit.tamu.edu FARMAssistance.tamu.edu Texas AgriLife Extension Service Improving Lives. Improving Texas.