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Whole Farm Budget Construct a Whole Farm Budget for Milky Way farm. Note: All com silage and hay are fed to the dairy cows raFixed Costs Property taxes and insurance Depreciation Interest Wages Subtotal Net farm income Operator labor Return on equity

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Answer #1
Gross Revenue
Milk Sales:          267,857 =15*20000*100/112 1cwt=112 lbs
Other revenue            30,000 =300*100
USDA, Custom Work            15,000
         312,857
Variable Cost  
Silage              8,000 =40*200
Hay              18,000 =150*120
Dairy            150,000 =1500*100
         176,000
Fixed Cost  
Property Tax & Insurance              5,000
Depreciation              12,000
Interest              18,000
Wages            60,000
           95,000
Net Farm income            41,857
Operator Labour              30,000
Return on Equity            15,000
Profit and return to management              (3,143)
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