The Management Calendar

Farm Business Management Update, April/May 2006

By Gordon Groover, (xgrover@vt.edu), Extension Economist, Farm Management, Department of Agricultural and Applied Economics, Virginia Tech

The price of energy has a tremendous impact on the overall profitability of farm business, e.g., price of diesel fuel, fertilizers, pesticides, transportation, and so on. Kevin Dhuyvetter (Professor and Extension Specialist, Farm Management, Kansas State University) has followed the trends in energy and their effects on agriculture and has regular post and articles on "Energy Prices" a web site found at http://www.agmanager.info/energy/. To get monthly updates on projection for anhydrous ammonia and diesel fuel prices take a look at his article Futures-Based Price Forecasts for Anhydrous Ammonia and Diesel Fuel found at http://www.agmanager.info/energy/PriceForecasts.pdf .

Once again talk has turned to drought. National Oceanic & Atmospheric Administration (NOAA) in Blacksburg reports that March 2006 was the driest on record. To view details about current conditions and short and long term forecast in the U.S. visit the Drought Monitor at http://drought.unl.edu/dm/.

Farm financial records continue to play an important role in day-to-day management of a farm business. Farmers just getting started with computer applications should consider starting with a software package that will allow them to begin to see results for their efforts quickly and reduce the frustration of first having to learn the details of accounting. Consider Quicken® as an inexpensive product that has many instructional packages available on the web. Damona Doye

Extension Economist and Professor at Oklahoman State has an excellent web site devoted to Quicken® for farm and ranch applications. It can be found at http://agecon.okstate.edu/quicken/Instructions.htm

Farm Record Book: Expenses and Receipts, Virginia Cooperative Extension Publication 446-017, will go to the print shop for printing sometime the first week on April. The order form Publication 446-016 will be sent to all extension offices and individuals on our waiting list as soon as the details are known about the pricing. Thanks for your patience.

Want to know the long-term outlook for the U.S. dairy industry and the forces that will shape its competitiveness in the world market place? Then take a look at U.S. Dairy at a New Crossroads in a Global Setting, by Don P. Blayney and Mark J. Gehlhar, Economists at USDA-ERS. The article can be found in the November 2005 issue of AmberWaves at http://www.ers.usda.gov/AmberWaves/November05/Features/USDairy.htm

Listed below are the items that need to be included on the farm business managers' calendar for spring of 2006.

• Make sure your Virginia state income taxes are post marked by May 1.
• Review first quarter livestock records and compare them to last year's; look for problems and successes.
• Follow-up with your lender to review and update your line-of-credit needs.
• Prepare crop record keeping system for a new year. If you do not have a crop record keeping system, consider purchasing the Doane's hand-kept crop and machinery notebook, "Field and Equipment Record Book." This notebook provides an inexpensive way of getting started. It can be ordered via the Internet at http://www.doanebookstore.com/shop.php?category=9 or by (800) 535-2342, Extension 220. The price is less than $20.00. For a selection of computerized crop record keeping software, take a look at the Agricultural Software Directory from Alberta Agricultural Food and Rural Development site: http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/econ4118?opendocument.
• Update your marketing plan by collecting information on prices and world market situations. Be sure to check with your local Farm Service Agency for changes in government programs and signup deadlines. Review USDA and other crop and price forecasts. All USDA reports are listed on the internet and can be viewed by going to Agency Reports on the USDA newsroom page.
• Value-added business managers who must promote their products and/or services and who require skills in developing written materials, ads, web pages and so on should check out Christa Hartsook, communication specialist, Agricultural Marketing Resource Center, Iowa State. Her website has an article that discusses many of these. See Writing Materials for Promotion at http://www.extension.iastate.edu/agdm/wholefarm/html/c5-131.html

Visit Virginia Cooperative Extension