|
southern MN | I’m like your husband.
He knows where he is at pretty much but it’s hard for those of us doing it this way to put a good set of numbers on a piece of paper for others.
Taxes are done with 3 years of buying and selling baked into the equations so as you say they don’t really tell someone not familiar with it anything.
You would have to sit down with those numbers, and assign a value to the corn that isn’t sold or fed. Assign a number to the hay in storage. Figure the amounts of those that were produced this calendar year.
And so on.
Thrn you have to work out the long term assets, tractor, baler, feed wagon, buildings, etc. figure out their lifespan and assign a yearly cost, not the full purchase cost for those items.
You can come up with a current number for this year.
It takes more paper and more time with the calculator.
It is accurate for today, but understand the corn, the hay, the beef, that is carried into next year can end up worth more or less into next year, and that can change where you are at.
Then on top of that the beef industry is very cyclical, can lose a little bit for 5 years straight, and make it all up and more in a single year. That’s a hard thing to get through when you aren’t used to it; you just need to survive a decade and then boom you are good again…..
Did I make money this hour? This day? This week? This month? This decade? This lifetime?
Folks with a paycheck can measure things every week. Raising grain you might need two years to really measure. Cattle guys, might need a decade as a measuring stick? That does make it tough. Critters take a couple years to go from birth to table, it’s really difficult to say what I made this hour or this week or this year on that critter. It’s a longer time frame….
Paul | |
|
Farm wife talking. Please help me understand
