CROP PRODUCERS "DRILL INTO THE DIFFERENCE" IN OPERATIONS CASE STUDIES
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| Kentucky grower
Bernard Peterson describes how he allocates operations costs. |
The first
crop operations benchmarks produced through activity-based costing were
presented at the CROPSHOP.2006 seminar in Louisville, Kentucky. Five
on-farm case studies from four states compared planting, spraying and
harvesting costs per acre and "drilled down" to the allocations and methodologies
behind the numbers. These operations were chosen as a starting point in
what will be a long-term project to discover opportunities for crop producers
to optimize the most controllable segments of their businesses.
The initial goals of the benchmarking session were to:
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Explore variability between operations |
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Learn how others are tracking and allocating costs |
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Draw out the "story" behind the numbers
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Begin the standardization processes |
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Establish reporting formats and attributes |
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Predict the ultimate value of operations benchmarks |
The resulting numbers
varied significantly from state record association on-farm and "custom"
average operation costs. The consensus of the presenters is
that they are confident in their allocation methodologies and see value
in expanding the study to other farms and operations.
A hearty "thank you" goes out to the Peterson Farms, Worth & Dee Ellis
Farms, Lepley Farms and Jorgensen Land & Cattle for their work and willingness
to share this critical strategic information with their peers. Please
e-mail norm@fbssystems.com if
you'd like to participate in future crop cost benchmarking.
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| Howard
Doster studies the first stage of FBS's "Life Cycle" budget. |
CROPSHOP.2006
participants also reviewed FBS's new integrated "Life Cycle" budget module,
honed their data entry and reporting skills and learned how the Farm Financial
Standards Council is addressing complicating factors like land costs,
government payments and crop year reporting.
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PORKSHOP.2006:
MANAGE YOUR MARGINS THROUGH THE WINDSHIELD, NOT THE REAR-VIEW MIRROR
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| Lean how
to incorporate real-time economic analysis to find your marketing
"sweet spot" at PORKSHOP.2006. |
Unlike growers of annual
crops, pork producers are faced with daily strategic production and marketing
decisions. When margins are wide (as they have been the past
two years) they can get by through simply emulating general industry practices. However,
with expectations for more "normal" markets as well as recent negative
margins, this may be the year to consider management approaches that combine
"site-specific," real-time production and financial data with sound economic
principles.
The PORKSHOP.2006 seminar, sponsored by CPA firm Latta,
Harris, Hanon & Penningroth, LLC and FBS Systems, Inc. will help you sift
though your mountains of data to rapidly identify trends and opportunities
that are unique to your mix of genetics, health, facilities, markets and
management. You'll discover how to supplement traditional "rear-view mirror"
tools (closeouts and financial statements) with interactive production
cost modeling and executive "dashboards." In addition you'll have the
opportunity to benchmark production and financial performance with your
peers.
Mark your calendar now for June 7th, 2006, (one day prior to
the World Pork Expo) at the Savery Renaissance Hotel, Des Moines, Iowa. To
request a brochure, call 800-437-7638 or complete
the form on this link.
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COMING TO COMMODITY CLASSIC IN ANAHEIM THIS WEEK?
Drop by booth #711, say
"hi" and see what's new and exciting at FBS. We're looking forward
to seeing you.
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PREPARE FOR THE
BIG SEASON WITH "SPRING TRAINING"
Make the most of the
upcoming farming season with "Spring Training" with FBS. Unlike
major league baseball you don't have to travel to "grapefruit country"
to get in shape; our trainers will come right to your farm. March
is our busiest training month so contact us right now at 800-437-76 38
or e-mail sales@fbssystems.com
to schedule your appointment or to visit about how we can help.
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25 YEARS AGO
/ $2,500 CONTEST ENDS MARCH 15th
Only two
weeks remain for our quest to find the longest continuous user
of FBS software. So far we've heard from users who go back
to the very early 80s. Do you, or someone you know go back
even further? Then you can win $2,500 credit on any
FBS-authored modules. We'll judge entries on three criteria:
| 1.
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The
number of years in your data set. |
| 2.
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The
documented month and year you purchased your first
FBS module. |
| 3.
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A
brief testimonial on why you're still using FBS after all
these years. |
We'll announce the
winner (who may also be the longest continuous user of any ag software)
in our March, 2006 issue. So send your applications to norm@fbssystems.com.
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SOFTWARE Q&A
– WITH Q'S FROM YOU, OUR CLIENTS!
Send
us your questions/problems–be they short, long, simple or downright
frustratin'!–about SeRVware
and we'll handle them right "on the air" for the benefit of all.
|
Q.
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How does TransAction Plus handle fiscal years? |
| a.
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Entries
are always recorded and stored in a common data file by company/calendar
year. (For example, file TADxxx06.mdb contains all the accounting
data for company "xxx" in calendar year 2006.) When you start
a new calendar year or select Create Beginning Balances
under Utilities, prior year asset, liability and equity ledger
balances are "rolled" into the new accounting data file as
"Beginning Balance" adjustment entries.
Fiscal years are set at the Division level (Setup |
Accounting | Divisions). You are allowed up to
250 divisions with any combination of fiscal year settings. (The
Fiscal Month in TransAction Plus refers to the beginning
month of the fiscal year.)
When you complete a fiscal year, make sure you are "logged
into" the calendar year in which the fiscal year ends and
select Input | General | Accounting | Calculate Retained
Earnings. (If you have just one Division/Fiscal
Year combination, this routine will automatically default
to the beginning fiscal month.) Press the Calculate
key, and TransAction Plus will automatically compute
net income for the prior fiscal year and post adjustment entries
to your retained earnings account on the beginning
day of the new fiscal year.
Ledger Account, Trial Balance, Balance Sheet, Income Statement
and Ratio Reports will prompt you for the Start of
the Fiscal Year as well as the date range of the report. We
recommend you save your fiscal period settings as a Report
Macro to avoid confusion when running reports. |
|
Call in your questions (800.437.7638) or e-mail them
to support@fbssystems.com.
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