Dairy Business Analysis Project: Financial Summary for 1995-2001

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Title:
Dairy Business Analysis Project: Financial Summary for 1995-2001
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Fact Sheet
Creator:
de Vries, A.
Publisher:
University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication:
Gainesville, Fla.
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Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
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Published
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"Original publication date June 16, 2003. Reviewed January 2008, and March 2011."
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"AN144"

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University of Florida Institutional Repository
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University of Florida
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All rights reserved by the submitter.
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IR00003744:00001


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A. de Vries, R. Giesy, L. Ely, A. de Araujo, A. Andreasen, B. Broaddus, S. Eubanks, D. Mayo, P. Miller, T. Seawright, C. Vann2

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Dairy Business Analysis Project: Financial Summary for 1995-2001 2

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Dairy Business Analysis Project: Financial Summary for 1995-2001 3

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Dairy Business Analysis Project: Financial Summary for 1995-2001 4 DBAP 1995-2001 Summary Average and standard deviation of business size and production efficiency by year. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Business size Number of cows mean std1 1,527 2,420 1,375 1,683 1,280 2,127 808 759 1,063 880 1,079 899 977 980 Number of heifers mean std1 822 1,667 734 1,120 724 1,317 424 596 589 792 615 747 477 693 Milk sold (million lbs) mean std1 24.22 36.14 21.75 25.22 21.31 32.14 14.26 14.76 19.85 18.44 20.59 19.40 17.55 19.45 FTE workers mean std1 29 40 26 33 23 34 16 19 21 23 20 17 19 19 Acres of pasture + cultivated land mean std1 1,245 2,509 859 1,399 817 1,874 388 455 515 512 463 539 437 474 Production efficiency Milk sold / cow (lbs) mean std1 15,689 3,420 15,774 2,973 16,586 3,228 16,963 3,489 17,973 3,101 17,778 3,702 17,170 2,837 Cows / FTE worker mean std1 57.95 29.65 54.39 25.92 54.07 18.83 55.79 21.14 59.00 23.54 53.81 19.03 51.53 18.84 Milk sold / FTE worker (million lbs) mean std1 0.88 0.41 0.82 0.29 0.88 0.28 0.92 0.31 1.03 0.35 0.96 0.37 0.88 0.35 Cull rate mean std1 0.35 0.16 0.34 0.12 0.35 0.15 0.38 0.12 0.34 0.09 0.38 0.11 0.36 0.13 1Standard deviation. DBAP 1995-2001 Summary Average and standard deviation of revenues by year. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Revenues (per cwt) Milk sold ($) mean std1 15.26 0.57 18.39 0.82 16.68 0.97 18.35 0.90 17.80 0.91 16.69 0.79 18.24 1.22 Raised, leased cow sales ($) mean std1 0.89 0.93 1.09 1.31 0.66 0.74 0.47 0.70 0.53 0.59 0.61 0.79 0.56 0.78 Heifer sales ($) mean std1 0.16 0.50 0.26 0.40 0.19 0.57 0.14 0.53 0.20 0.63 0.40 1.08 0.29 0.53 Gain on purchased livestock sales ($) mean std1 0.00 0.00 (0.08) 0.51 0.10 0.96 (0.12) 0.77 (0.19) 0.54 (0.04) 0.63 (0.08) 0.99 Other revenues ($) mean std1 0.66 0.87 0.59 0.78 0.40 1.11 0.55 0.78 0.72 0.92 0.50 0.62 0.99 1.05 Total revenues ($) mean std1 16.98 1.27 20.24 1.73 18.03 1.81 19.40 1.35 19.07 1.53 18.16 1.76 20.00 2.26 1Standard deviation.

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Dairy Business Analysis Project: Financial Summary for 1995-2001 5 DBAP 1995-2001 Summary Average and standard deviation of costs by year. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Costs (per cwt) Personnel ($) mean std1 2.76 0.68 2.45 0.69 2.40 0.95 2.23 0.92 2.37 0.78 2.66 0.87 2.69 1.04 Purchased feed ($) mean std1 7.61 1.23 8.80 1.29 8.41 1.61 7.69 1.44 7.04 1.32 6.94 1.74 7.32 1.61 Crops ($) mean std1 0.24 0.40 0.31 0.39 0.28 0.39 0.32 0.42 0.31 0.38 0.27 0.42 0.48 0.89 Machinery ($) mean std1 0.77 0.31 0.89 0.58 0.82 0.52 0.83 0.45 0.88 0.53 0.86 0.53 1.01 0.52 Livestock ($) mean std1 2.00 1.00 2.25 1.26 2.31 1.49 1.56 0.66 1.53 0.77 1.69 0.92 1.64 0.88 Milk marketing ($) mean std1 1.21 0.33 0.98 0.26 1.06 0.31 1.09 0.38 1.04 0.40 1.10 0.36 1.05 0.37 Buildings and land ($) mean std1 0.45 0.39 0.50 0.30 0.53 0.28 0.65 0.42 0.61 0.47 0.63 0.64 0.64 0.49 Interest ($) mean std1 0.69 0.56 0.75 0.43 0.69 0.53 0.70 0.54 0.55 0.31 0.65 0.43 0.61 0.53 Depreciation: Livestock ($) mean std1 0.00 0.00 0.00 0.02 0.07 0.22 0.87 0.77 0.70 0.60 0.88 0.76 0.67 0.69 Machinery ($) mean std1 0.48 0.70 0.50 0.53 0.35 0.36 0.44 0.41 0.37 0.23 0.44 0.41 0.50 0.42 Buildings ($) mean std1 0.53 1.24 0.43 0.85 0.15 0.19 0.20 0.26 0.13 0.12 0.22 0.18 0.24 0.33 Other expenses ($) mean std1 0.85 0.47 0.65 0.39 0.76 0.38 0.84 0.45 0.74 0.37 0.74 0.32 0.90 0.47 Total expenses ($) mean std1 17.60 2.68 18.51 2.08 17.83 2.11 17.42 2.19 16.27 1.58 17.08 2.49 17.75 2.01 Net farm income from operations ($) mean std1 (0.63) 2.34 1.73 2.45 0.20 2.21 1.98 1.94 2.79 1.75 1.07 2.07 2.25 1.85 Gain on sale of capital assets ($) mean std1 0.89 1.74 0.46 1.47 1.07 5.16 0.09 0.43 0.11 0.46 (0.04) 0.49 0.15 0.43 Net farm income ($) mean std1 0.26 1.67 2.19 2.54 1.27 4.59 2.07 1.99 2.91 1.73 1.10 2.04 2.39 1.92 1Standard deviation.

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Dairy Business Analysis Project: Financial Summary for 1995-2001 6 DBAP 1995-2001 Summary Average and standard deviation of financial performance by year. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Liquidity Current ratio mean std1 2.08 2.36 2.34 3.01 8.20 40.82 159.12 919.97 12.97 25.64 2.02 2.29 2.34 3.43 Working capital mean std1 (258,913) 1,287,444 31,219 706,000 (91,439) 546,903 140,989 400,112 312,030 555,198 (8,319) 632,552 185,321 536,348 Solvency Debt to asset ratio mean std1 0.23 0.22 0.43 0.27 0.43 0.34 0.41 0.29 0.41 0.27 0.36 0.20 0.32 0.21 Equity to asset ratio mean std1 0.77 0.22 0.57 0.27 0.57 0.34 0.59 0.29 0.59 0.27 0.64 0.20 0.68 0.21 Debt to equity ratio mean std1 0.47 0.64 5.31 18.98 0.87 5.56 (9.46) 79.54 1.94 4.04 0.74 0.64 0.72 1.18 Profitability Rate of return on assets mean std1 (0.03) 0.25 0.12 0.23 0.03 0.13 0.12 0.24 0.15 0.15 0.07 0.08 0.09 0.09 Rate of return on equity mean std1 (0.08) 0.27 0.09 1.57 (0.10) 1.32 (1.76) 14.84 (1.24) 7.56 0.07 0.14 0.11 0.19 Operating profit margin ratio mean std1 (0.05) 0.18 0.09 0.11 (0.02) 0.18 0.10 0.11 0.15 0.09 0.06 0.13 0.09 0.10 Financial efficiency Asset turnover rate mean std1 1.09 0.61 1.00 0.59 0.99 0.61 1.14 1.35 1.03 0.44 0.89 0.46 0.90 0.42 Operating expense ratio mean std1 0.94 0.10 0.83 0.09 0.92 0.11 0.78 0.10 0.76 0.08 0.82 0.10 0.79 0.10 Depreciation expense ratio mean std1 0.06 0.10 0.05 0.06 0.03 0.03 0.08 0.04 0.06 0.03 0.08 0.04 0.07 0.04 Interest expense ratio mean std1 0.04 0.03 0.04 0.02 0.04 0.03 0.04 0.03 0.03 0.02 0.04 0.02 0.03 0.03 Net farm income ratio mean std1 (0.04) 0.13 0.08 0.11 0.01 0.12 0.10 0.10 0.14 0.09 0.06 0.12 0.11 0.09 Repayment capacity Cash flow coverage ratio mean std1 0.42 1.14 1.23 2.92 10.91 69.86 132.24 820.96 10.48 20.75 4.24 8.71 3.08 6.73 Term debt coverage ratio2 mean std1 0.00 0.00 0.00 0.00 18.41 68.81 19.88 64.46 32.36 41.70 9.93 38.44 10.66 33.57 Capital replacement margin3 mean std1 (153,399) 862,181 291,830 491,115 (121,642) 543,483 204,627 638,405 416,446 727,686 145,544 578,631 386,201 635,232 1Standard deviation. 2Term debt and capital lease coverage ratio. 3Capital replacement and term debt repayment margin.

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Dairy Business Analysis Project: Financial Summary for 1995-2001 7 DBAP 1995-2001 Summary Average and standard deviations of balance sheets by year. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Balance sheet (January 1) Current assets / cow ($) mean std1 280 129 287 194 306 216 322 269 548 309 459 354 451 376 Total assets / cow ($) mean std1 3,352 2,090 3,902 1,743 3,788 2,125 3,914 2,374 3,910 1,921 4,555 2,637 4,535 2,267 Current liabilities/cow ($) mean std1 330 413 482 422 373 295 616 697 551 407 541 479 376 339 Total liabilities / cow mean std1 961 955 1,510 886 1,545 1,395 1,523 1,049 1,459 946 1,383 790 1,305 833 Equity / cow ($) mean std1 2,392 1,482 2,392 1,460 2,243 2,199 2,391 2,351 2,451 2,199 3,172 2,877 3,230 2,315 Balance sheet (December 31) Current assets / cow ($) mean std1 261 129 388 219 278 219 464 304 633 341 418 252 541 421 Total assets / cow ($) mean std1 3,382 2,084 3,892 1,612 3,891 1,978 4,072 2,413 4,078 1,911 4,552 2,376 4,725 2,298 Current liabilities/cow ($) mean std1 282 398 304 393 313 318 353 310 291 335 419 317 394 285 Total liabilities / cow ($) mean std1 1,050 1,059 1,540 893 1,554 1,427 1,460 990 1,408 771 1,431 828 1,301 869 Equity / cow ($) mean std1 2,331 1,305 2,352 1,456 2,338 2,066 2,613 2,444 2,670 2,207 3,121 2,379 3,425 2,358 1Standard deviation.

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Dairy Business Analysis Project: Financial Summary for 1995-2001 8 DBAP 1995-2001 Summary Business size and production efficiency by average number of cows. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Business size Number of cows Lowest third 288383222219356251201 Middle third 736796651568829877621 Highest third 3,8202,9463,0591,6492,0622,1672,108 Number of heifers Lowest third 126170107109238149118 Middle third 355505358320443432309 Highest third 2,1411,5261,7588501,1231,3161,002 Milk sold (million lbs) Lowest third 3.676.333.413.286.313.513.26 Middle third 12.4213.0011.3310.2715.3317.2111.04 Highest third 60.5145.9050.6229.4639.0442.0238.35 FTE workers Lowest third 5 8 6 5 7 5 5 Middle third 16151311181813 Highest third 71565232403837 Acres of pasture + cultivated land Lowest third 206179233197345196180 Middle third 581559426316482305304 Highest third 3,1691,8381,849654728933827 Production efficiency Milk sold / cow (lbs) Lowest third 12,59815,57314,91615,09117,50314,02516,144 Middle third 17,47716,23617,33218,13218,11819,85217,840 Highest third 16,39415,51317,40417,60218,26218,86517,525 Cows / FTE worker Lowest third 75.5443.6145.3250.0257.4349.3141.29 Middle third 48.0150.7352.9154.7054.7253.3150.81 Highest third 53.6167.2364.1662.7165.9058.9462.48 Milk sold / FTE worker (million lbs) Lowest third 0.990.640.670.730.980.690.66 Middle third 0.810.830.900.970.961.040.90 Highest third 0.850.971.071.061.161.121.09 Cull rate Lowest third 0.420.330.290.360.310.420.41 Middle third 0.320.390.370.410.350.350.32 Highest third 0.33 0.29 0.39 0.38 0.36 0.38 0.34

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Dairy Business Analysis Project: Financial Summary for 1995-2001 9 DBAP 1995-2001 Summary Revenues by average number of cows. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Revenues (per cwt) Milk sold ($) Lowest third 15.5218.1616.0718.1617.2916.7817.71 Middle third 14.9018.1416.7617.9717.7916.3218.15 Highest third 15.4918.8617.2118.9418.3117.0718.87 Raised, leased cow sales ($) Lowest third 1.101.030.780.430.691.160.50 Middle third 0.861.250.480.420.530.360.83 Highest third 0.730.980.750.570.360.390.36 Heifer sales ($) Lowest third 0.150.310.250.260.110.660.24 Middle third 0.170.200.280.090.060.160.22 Highest third 0.170.270.040.090.470.450.41 Gain on purchased livestock sales ($) Lowest third 0.00(0.25)0.370.100.14(0.04)0.23 Middle third 0.000.00(0.09)(0.15)(0.23)(0.04) (0.28) Highest third 0.000.000.04(0.29)(0.45)(0.06)(0.17) Other revenues ($) Lowest third 0.840.740.760.740.940.941.66 Middle third 0.870.770.090.570.520.260.74 Highest third 0.190.270.390.320.760.380.54 Total revenues ($) Lowest third 17.6119.9918.2319.6919.1719.5020.34 Middle third 16.8020.3517.5218.9018.6717.0619.66 Highest third 16.58 20.39 18.42 19.63 19.45 18.23 20.01

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Dairy Business Analysis Project: Financial Summary for 1995-2001 10 DBAP 1995-2001 Summary Costs by average number of cows. Category 1995 1996 1997 1998 1998 2000 2001 Number of farms 20 27 44 55 26 23 39 Costs (per cwt) Personnel ($) Lowest third 2.562.312.341.951.932.532.39 Middle third 2.852.462.462.262.652.812.87 Highest third 2.852.592.412.472.462.592.82 Purchased feed ($) Lowest third 7.889.528.528.037.087.817.31 Middle third 7.608.758.067.516.896.497.47 Highest third 7.368.158.707.537.206.667.19 Crops ($) Lowest third 0.160.250.300.320.350.420.90 Middle third 0.330.360.280.270.390.200.32 Highest third 0.190.340.260.370.160.220.21 Machinery ($) Lowest third 0.730.830.940.850.931.071.27 Middle third 0.841.190.820.820.950.740.80 Highest third 0.730.630.700.840.740.810.94 Livestock ($) Lowest third 1.832.112.351.391.231.671.48 Middle third 1.822.082.001.591.981.751.69 Highest third 2.392.562.621.691.271.641.75 Milk marketing ($) Lowest third 1.350.991.141.240.971.311.06 Middle third 1.150.951.060.931.060.961.07 Highest third 1.151.001.001.111.101.071.01 Buildings and land ($) Lowest third 0.490.400.620.660.930.980.59 Middle third 0.500.510.490.610.410.440.71 Highest third 0.360.590.490.690.560.530.60 Interest ($) Lowest third 0.670.820.821.010.360.800.81 Middle third 0.900.710.650.550.620.540.56 Highest third 0.430.720.590.550.640.640.45 Depreciation: Livestock ($) Lowest third 0.000.010.041.080.670.940.66 Middle third 0.000.000.130.690.500.690.54 Highest third 0.000.000.040.850.981.040.82 Machinery ($) Lowest third 0.780.540.390.640.370.600.64 Middle third 0.430.580.360.350.380.460.45 Highest third 0.250.390.310.350.350.270.41

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Dairy Business Analysis Project: Financial Summary for 1995-2001 11 DBAP 1995-2001 Summary Costs by average number of cows. Category 1995 1996 1997 1998 1998 2000 2001 Number of farms 20 27 44 55 26 23 39 Buildings ($) Lowest third 1.070.610.140.180.110.280.33 Middle third 0.330.320.100.270.100.160.19 Highest third 0.270.350.220.160.200.210.19 Other expenses ($) Lowest third 1.020.580.981.100.970.691.03 Middle third 0.830.720.720.740.560.690.87 Highest third 0.710.640.580.690.720.860.86 Total expenses ($) Lowest third 18.5418.9718.5618.4415.9019.1018.47 Middle third 17.5918.6217.1216.5916.4815.9317.54 Highest third 16.6817.9517.9217.2816.3716.5417.25 Net farm income from operations ($) Lowest third (0.94)1.02(0.33)1.253.270.391.86 Middle third (0.79)1.730.392.312.191.122.11 Highest third (0.10)2.440.502.353.081.692.76 Gain on sale of capital assets ($) Lowest third 1.360.482.730.090.040.230.02 Middle third 0.630.290.320.080.10(0.21)0.19 Highest third 0.750.600.270.100.19(0.09)0.23 Net farm income ($) Lowest third 0.431.502.401.353.310.691.88 Middle third (0.16)2.020.712.392.290.992.31 Highest third 0.66 3.04 0.77 2.45 3.27 1.64 2.99

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Dairy Business Analysis Project: Financial Summary for 1995-2001 12 DBAP 1995-2001 Summary Financial performance by average number of cows. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Liquidity Current ratio Lowest third 0.592.051.030.9414.611.202.70 Middle third 2.771.7224.19525.1912.612.792.19 Highest third 2.003.002.293.4512.181.871.59 Working capital Lowest third (18,801)75,549(14,434)(14,981)162,878(42,456)31,707 Middle third 94,36451,275(21,152)109,797227,38959,07655,775 Highest third (970,060)(33,165)(248,772)329,884566,984(60,834)468,480 Solvency Debt to asset ratio Lowest third 0.330.380.490.490.300.360.32 Middle third 0.160.460.360.370.410.330.34 Highest third 0.230.450.460.360.520.400.29 Equity to asset ratio Lowest third 0.670.620.510.510.700.640.68 Middle third 0.840.540.640.630.590.670.66 Highest third 0.770.550.540.640.480.600.71 Debt to equity ratio Lowest third 0.890.670.751.411.640.720.67 Middle third 0.24(0.41)1.491.442.640.651.00 Highest third 0.3415.680.29(31.84)1.370.890.49 Profitability Rate of return on assets Lowest third (0.18)0.04(0.03)0.020.110.030.03 Middle third 0.030.170.080.120.120.060.10 Highest third 0.020.150.050.220.240.110.15 Rate of return on equity Lowest third (0.22)0.01(0.09)(6.10)(4.68)0.020.00 Middle third (0.03)0.72(0.24)(0.09)0.060.060.10 Highest third (0.00)(0.45)0.070.810.560.120.22 Operating profit margin ratio Lowest third (0.15)0.03(0.13)0.020.14(0.04)0.02 Middle third (0.02)0.090.030.120.120.080.11 Highest third 0.010.150.050.140.180.120.15 Financial efficiency Asset turnover rate Lowest third 0.990.940.870.870.810.860.67 Middle third 1.161.001.141.031.050.900.95 Highest third 1.111.060.961.511.220.921.06 Operating expense ratio Lowest third 0.920.850.950.790.750.850.79 Middle third 0.950.850.910.780.800.830.81 Highest third 0.950.810.910.780.730.790.77

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Dairy Business Analysis Project: Financial Summary for 1995-2001 13 DBAP 1995-2001 Summary Financial performance by average number of cows. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Depreciation expense ratio Lowest third 0.100.060.030.100.060.100.08 Middle third 0.040.040.030.070.050.080.06 Highest third 0.030.040.030.070.080.080.07 Interest expense ratio Lowest third 0.040.040.050.050.020.040.04 Middle third 0.050.030.030.030.030.030.03 Highest third 0.030.040.030.030.030.040.02 Net farm income ratio Lowest third (0.05)0.05(0.03)0.060.170.010.09 Middle third (0.05)0.070.020.120.110.070.10 Highest third (0.01)0.120.020.120.160.090.13 Repayment capacity Cash flow coverage ratio Lowest third 0.221.37(0.68)1.3210.111.281.72 Middle third 0.520.2129.31378.829.414.215.36 Highest third 0.492.111.472.8612.207.251.46 Term debt coverage ratio1 Lowest third 0.000.000.4632.322.870.852.46 Middle third 0.000.001.763.4161.852.485.19 Highest third 0.000.0093.1817.580.0028.5918.60 Capital replacement margin2 Lowest third 16,36452,484(61,337)(23,346)125,470(19,886)20,007 Middle third 13,162130,659(76,926)60,441254,176(9,977)216,808 Highest third (545,244) 692,346 (233,052) 584,796 910,258 485,276 921,788 1Term debt and capital lease coverage ratio. 2Capital replacement and term debt repayment margin.

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Dairy Business Analysis Project: Financial Summary for 1995-2001 14 DBAP 1995-2001 Summary Balance sheet by average number of cows. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Balance sheet (January 1) Current assets / cow ($) Lowest third 171 278 240 275 562 219 456 Middle third 355 304 358 315 496 478 401 Highest third 290 278 312 377 599 676 497 Total assets / cow ($) Lowest third 2,970 4,072 4,077 4,477 4,792 5,414 5,904 Middle third 3,706 4,447 3,808 3,701 3,923 4,312 4,152 Highest third 3,263 3,187 3,475 3,576 3,013 4,009 3,548 Current liabilities / cow ($) Lowest third 322 376 316 682 516 334 406 Middle third 214 519 401 613 517 512 280 Highest third 491 551 400 555 626 787 443 Total liabilities / cow ($) Lowest third 1,290 1,598 1,946 1,759 1,372 1,384 1,552 Middle third 773 1,584 1,236 1,471 1,325 1,184 1,170 Highest third 881 1,349 1,496 1,341 1,714 1,639 1,193 Equity / cow ($) Lowest third 1,680 2,474 2,131 2,718 3,419 4,030 4,351 Middle third 2,932 2,863 2,571 2,230 2,598 3,129 2,983 Highest third 2,383 1,838 1,979 2,234 1,299 2,370 2,356 Balance sheet (December 31) Current assets / cow ($) Lowest third 169 323 221 337 644 230 539 Middle third 345 469 330 500 580 434 445 Highest third 242 373 275 551 687 586 637 Total assets / cow ($) Lowest third 3,035 3,879 4,191 4,612 4,866 5,560 6,198 Middle third 3,677 4,508 3,947 3,902 4,031 4,256 4,264 Highest third 3,335 3,289 3,528 3,713 3,348 3,925 3,715 Current liabilities / cow ($) Lowest third 202 177 287 435 202 360 378 Middle third 239 432 327 291 307 355 330 Highest third 419 303 322 336 360 560 475 Total liabilities / cow ($) Lowest third 1,326 1,515 1,995 1,775 1,079 1,623 1,570 Middle third 906 1,764 1,188 1,319 1,444 1,250 1,216 Highest third 967 1,342 1,530 1,293 1,692 1,472 1,117 Equity / cow ($) Lowest third 1,708 2,364 2,196 2,837 3,787 3,937 4,628 Middle third 2,771 2,744 2,759 2,582 2,588 3,006 3,048 Highest third 2,368 1,947 1,998 2,420 1,656 2,452 2,598

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Dairy Business Analysis Project: Financial Summary for 1995-2001 15 DBAP 1995-2001 Summary Business size and production efficiency by milk per cow (lbs/year). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Business size Number of cows Lowest third 6731,8171,887585912444625 Middle third 2,4138708388716591,273920 Highest third 1,1991,4381,1799641,7181,4651,385 Number of heifers Lowest third 326724960195352315271 Middle third 1,309571466352299569451 Highest third 6699067837301,189975708 Milk sold (million lbs) Lowest third 8.9524.3826.668.0613.436.389.17 Middle third 35.7513.2114.1414.5711.7922.2915.47 Highest third 24.1327.6524.1620.1436.3532.6328.01 FTE workers Lowest third 10 2829 9 14 1012 Middle third 41 18171513 2116 Highest third 32 32252339 3027 Acres of pasture + cultivated land Lowest third 5041,3331,485380693360372 Middle third 2,473821685404403507507 Highest third 348422301378478510433 Production efficiency Milk sold / cow (lbs) Lowest third 12,291 12,864 13,112 13,225 14,522 13,77814,358 Middle third 15,288 15,318 16,679 16,712 17,826 17,55416,897 Highest third 19,620 19,141 19,954 20,968 21,608 22,06820,254 Cows / FTE worker Lowest third 66.3872.0862.7663.1671.3948.7046.13 Middle third 63.7847.6651.3359.4058.6463.2454.67 Highest third 41.7444.2848.5244.6147.0446.7953.79 Milk sold / FTE worker (million lbs) Lowest third 0.840.910.840.831.030.670.65 Middle third 0.970.730.850.991.041.110.92 Highest third 0.800.840.960.931.021.051.07 Cull rate Lowest third 0.420.320.350.360.310.390.34 Middle third 0.290.380.390.400.370.400.41 Highest third 0.37 0.31 0.31 0.38 0.33 0.34 0.33

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Dairy Business Analysis Project: Financial Summary for 1995-2001 16 DBAP 1995-2001 Summary Revenues by milk per cow (lbs/year). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Revenues (per cwt) Milk sold ($) Lowest third 15.49 18.79 16.81 18.68 18.11 16.90 18.18 Middle third 15.35 18.00 16.65 18.41 17.31 16.83 18.19 Highest third 14.93 18.36 16.60 17.96 18.09 16.30 18.35 Raised, leased cow sales ($) Lowest third 0.86 1.53 0.40 0.54 0.43 1.15 0.38 Middle third 1.03 0.69 0.92 0.36 0.41 0.34 0.78 Highest third 0.74 1.04 0.62 0.53 0.77 0.43 0.53 Heifer sales ($) Lowest third 0.54 0.26 0.33 0.20 0.19 0.32 0.48 Middle third (0.15)0.37 0.18 0.13 0.24 0.85 0.18 Highest third 0.20 0.14 0.07 0.10 0.17 (0.11) 0.21 Gain on purchased livestock sales ($) Lowest third 0.00 (0.29) 0.41 (0.01) (0.27) (0.28) (0.09) Middle third 0.00 0.04 (0.10) (0.28) (0.12) 0.21 (0.10) Highest third 0.00 0.00 0.00 (0.04) (0.18) (0.14) (0.04) Other revenues ($) Lowest third 0.33 0.63 0.22 0.54 0.37 0.73 1.59 Middle third 1.05 0.84 0.77 0.66 1.09 0.35 0.64 Highest third 0.47 0.31 0.15 0.43 0.61 0.47 0.71 Total revenues ($) Lowest third 17.22 20.93 18.18 19.95 18.83 18.8220.54 Middle third 17.28 19.94 18.42 19.27 18.93 18.58 19.69 Highest third 16.34 19.86 17.44 18.97 19.47 16.95 19.76

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Dairy Business Analysis Project: Financial Summary for 1995-2001 17 DBAP 1995-2001 Summary Costs by milk per cow (lbs/year). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Costs (per cwt) Personnel ($) Lowest third 2.162.182.022.012.202.492.63 Middle third 3.042.622.662.192.362.832.81 Highest third 2.992.572.502.482.542.602.64 Purchased feed ($) Lowest third 7.889.008.788.017.498.047.58 Middle third 7.288.547.987.526.566.797.22 Highest third 7.798.878.527.557.206.047.17 Crops ($) Lowest third 0.190.300.150.190.330.420.86 Middle third 0.420.480.480.390.350.160.25 Highest third 0.030.160.180.360.240.270.32 Machinery ($) Lowest third 0.640.710.580.740.841.081.22 Middle third 0.830.981.070.870.960.660.97 Highest third 0.830.980.760.900.810.910.83 Livestock ($) Lowest third 2.162.512.431.241.131.391.53 Middle third 1.912.182.481.671.791.941.80 Highest third 1.942.071.981.761.611.671.59 Milk marketing ($) Lowest third 1.330.961.091.141.101.270.92 Middle third 1.251.071.031.071.051.041.15 Highest third 1.040.921.071.060.971.011.07 Buildings and land ($) Lowest third 0.560.660.570.670.770.930.62 Middle third 0.420.370.550.710.730.600.72 Highest third 0.390.470.470.560.310.380.56 Interest ($) Lowest third 0.500.850.920.930.770.860.81 Middle third 0.810.870.670.530.420.550.54 Highest third 0.730.520.470.640.480.550.47 Depreciation: Livestock ($) Lowest third 0.000.000.131.440.990.660.68 Middle third 0.000.010.090.720.621.420.73 Highest third 0.000.000.000.450.500.390.61 Machinery ($) Lowest third 0.700.460.390.530.300.610.58 Middle third 0.430.650.380.330.370.250.39 Highest third 0.320.390.280.480.420.520.54

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Dairy Business Analysis Project: Financial Summary for 1995-2001 18 DBAP 1995-2001 Summary Costs by milk per cow (lbs/year). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Buildings ($) Lowest third 1.090.630.190.230.110.320.29 Middle third 0.170.280.130.170.110.130.13 Highest third 0.460.380.140.220.190.210.30 Other expenses ($) Lowest third 0.880.580.870.890.830.711.08 Middle third 0.970.770.710.800.660.690.79 Highest third 0.670.580.700.830.740.860.86 Total expenses ($) Lowest third 18.0918.8318.1318.0316.8618.7818.80 Middle third 17.5418.8218.2316.9816.0017.0617.50 Highest third 17.2017.9017.0817.2816.0215.4116.96 Net farm income from operations ($) Lowest third (0.88)2.100.041.921.980.041.74 Middle third (0.26)1.120.192.292.931.522.20 Highest third (0.86)1.960.361.693.451.532.80 Gain on sale of capital assets ($) Lowest third 1.410.730.320.12(0.02)0.270.25 Middle third 0.540.302.530.030.11(0.04)0.05 Highest third 0.830.340.160.120.24(0.35)0.14 Net farm income ($) Lowest third 0.532.840.362.051.950.321.98 Middle third 0.281.432.722.323.041.632.25 Highest third (0.03) 2.29 0.51 1.82 3.69 1.20 2.94

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Dairy Business Analysis Project: Financial Summary for 1995-2001 19 DBAP 1995-2001 Summary Financial performance by milk per cow (lbs/year). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Liquidity Current ratio Lowest third 0.494.2222.803.0613.351.292.33 Middle third 3.261.151.541.9413.782.191.65 Highest third 2.101.391.37524.5111.502.552.50 Working capital Lowest third (79,022)(90,301)(239,496)123,509128,229(27,969)(99,858) Middle third (495,024)83,1795,479123,215299,144(23,594)204,959 Highest third (123,989)100,780(54,146)177,230511,93930,969450,862 Solvency Debt to asset ratio Lowest third 0.370.570.630.500.600.350.32 Middle third 0.150.420.330.360.300.360.28 Highest third 0.210.300.340.370.360.370.34 Equity to asset ratio Lowest third 0.630.430.370.500.400.650.68 Middle third 0.850.580.670.640.700.640.72 Highest third 0.790.700.660.630.640.630.66 Debt to equity ratio Lowest third 0.9713.38(0.77)2.752.650.670.63 Middle third 0.212.090.60(31.03)2.240.790.90 Highest third 0.300.472.831.090.860.740.64 Profitability Rate of return on assets Lowest third (0.17)0.210.020.080.110.010.04 Middle third 0.050.060.040.190.160.090.09 Highest third 0.000.100.040.090.190.100.14 Rate of return on equity Lowest third (0.20)0.180.25(5.42)(4.67)(0.03)0.01 Middle third (0.02)(0.01)0.030.200.120.100.11 Highest third (0.04)0.11(0.59)(0.18)0.470.130.20 Operating profit margin ratio Lowest third (0.14)0.09(0.07)0.080.11(0.04)0.05 Middle third 0.000.070.010.120.140.090.09 Highest third (0.03)0.110.010.090.190.110.14 Financial efficiency Asset turnover rate Lowest third 0.931.441.010.960.940.610.68 Middle third 1.290.710.821.401.121.110.97 Highest third 1.000.861.171.031.000.891.05 Operating expense ratio Lowest third 0.930.810.920.750.780.870.80 Middle third 0.930.850.930.790.770.790.80 Highest third 0.960.840.930.820.740.810.77

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Dairy Business Analysis Project: Financial Summary for 1995-2001 20 DBAP 1995-2001 Summary Financial performance by milk per cow (lbs/year). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Depreciation expense ratio Lowest third 0.090.050.040.110.080.090.07 Middle third 0.030.050.030.060.060.100.06 Highest third 0.050.040.020.060.060.070.07 Interest expense ratio Lowest third 0.030.040.050.050.040.050.04 Middle third 0.050.040.040.030.020.030.03 Highest third 0.050.030.030.030.020.030.02 Net farm income ratio Lowest third (0.05)0.09(0.00)0.100.10(0.00)0.08 Middle third (0.01)0.060.000.120.150.080.11 Highest third (0.05)0.100.020.090.180.090.14 Repayment capacity Cash flow coverage ratio Lowest third 0.242.9933.043.929.621.601.77 Middle third 0.060.470.131.258.536.971.50 Highest third 1.090.231.09398.8113.793.385.27 Term debt coverage ratio1 Lowest third 0.000.000.852.430.000.4916.97 Middle third 0.000.0056.2048.4532.3623.811.96 Highest third 0.000.001.561.520.001.527.31 Capital replacement margin2 Lowest third 9,485130,365(374,947)105,011140,928(52,825)172,893 Middle third (445,920)214,42145,869320,857312,810357,616449,668 Highest third 73,743 530,704 (59,779) 181,555 821,508 (71,250) 536,042 1Term debt and capital lease coverage ratio. 2Capital replacement and term debt repayment margin.

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Dairy Business Analysis Project: Financial Summary for 1995-2001 21 DBAP 1995-2001 Summary Balance sheet by milk per cow (lbs/year). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Balance sheet (January 1) Current assets / cow ($) Lowest third 206 170 202 247 448 257 291 Middle third 260 338 389 303 559 411 382 Highest third 382 352 315 418 634 724 681 Total assets / cow ($) Lowest third 3,014 2,440 3,517 3,313 3,197 5,797 5,113 Middle third 2,863 4,566 4,325 4,180 3,955 3,384 4,178 Highest third 4,342 4,701 3,444 4,234 4,568 4,820 4,313 Current liabilities / cow ($) Lowest third 474 346 386 496 489 341 337 Middle third 168 518 403 623 532 585 247 Highest third 402 582 327 730 636 685 545 Total liabilities / cow ($) Lowest third 1,458 1,224 2,104 1,566 2,035 1,518 1,400 Middle third 555 1,889 1,464 1,366 832 1,061 1,130 Highest third 1,004 1,418 1,079 1,646 1,667 1,663 1,384 Equity / cow ($) Lowest third 1,557 1,216 1,413 1,747 1,162 4,279 3,713 Middle third 2,308 2,676 2,861 2,815 3,122 2,323 3,048 Highest third 3,338 3,283 2,365 2,588 2,901 3,157 2,929 Balance sheet (December 31) Current assets / cow ($) Lowest third 197 262 167 366 457 227 368 Middle third 237 430 390 468 693 419 460 Highest third 358 472 260 556 734 607 794 Total assets / cow ($) Lowest third 3,127 2,497 3,311 3,467 3,052 5,860 5,169 Middle third 2,834 4,631 4,793 4,367 4,296 3,524 4,527 Highest third 4,366 4,549 3,441 4,367 4,832 4,567 4,480 Current liabilities / cow ($) Lowest third 296 119 248 349 303 319 403 Middle third 143 383 341 374 289 408 308 Highest third 452 410 346 333 282 532 472 Total liabilities / cow ($) Lowest third 1,508 1,386 2,144 1,603 1,802 1,779 1,347 Middle third 602 1,860 1,463 1,272 1,083 1,159 1,220 Highest third 1,191 1,375 1,068 1,514 1,421 1,434 1,336 Equity / cow ($) Lowest third 1,619 1,111 1,167 1,863 1,250 4,081 3,822 Middle third 2,233 2,771 3,330 3,095 3,213 2,365 3,307 Highest third 3,175 3,173 2,374 2,853 3,411 3,133 3,144

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Dairy Business Analysis Project: Financial Summary for 1995-2001 22 DBAP 1995-2001 Summary Business size and production efficiency by net farm income from operations per cwt. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Business size Number of cows Lowest third 4561,5361,8987451,167878731 Middle third 2,8401,2341,0319351,1349751,135 Highest third 8471,3559487368701,4141,064 Number of heifers Lowest third 2709081,074372674589306 Middle third 1,518685541624661538497 Highest third 446608583266415741626 Milk sold (million lbs) Lowest third 6.7621.6628.0613.3020.4014.6311.82 Middle third 44.5920.7319.3117.0921.1518.2121.39 Highest third 14.5422.8516.8512.2417.6829.6119.45 FTE workers Lowest third 11303217261915 Middle third 52252118211823 Highest third 18241712172418 Acres of pasture + cultivated land Lowest third 5511,2371,633374677504440 Middle third 2,296848317430537250341 Highest third 538491574356328696531 Production efficiency Milk sold / cow (lbs) Lowest third 13,63614,49315,24116,67216,35115,43816,118 Middle third 15,72915,96617,94317,80017,97218,94117,731 Highest third 17,68716,86216,38116,37219,59718,62417,660 Cows / FTE worker Lowest third 46.6847.6448.3649.8360.8542.6051.09 Middle third 67.5252.4853.3054.9260.1755.6751.48 Highest third 56.4563.9060.6762.6755.6862.6252.02 Milk sold / FTE worker (million lbs) Lowest third 0.620.670.720.830.980.660.82 Middle third 1.020.800.940.951.041.010.92 Highest third 0.941.010.980.981.061.180.91 Cull rate Lowest third 0.440.400.320.390.390.420.39 Middle third 0.370.330.360.390.330.330.37 Highest third 0.24 0.27 0.37 0.37 0.31 0.39 0.31

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Dairy Business Analysis Project: Financial Summary for 1995-2001 23 DBAP 1995-2001 Summary Revenues by net farm income from operations per cwt. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Revenues (per cwt) Milk sold ($) Lowest third 15.35 18.35 16.21 18.28 17.42 16.84 18.17 Middle third 15.38 18.26 16.75 18.25 18.20 16.34 18.50 Highest third 15.03 18.54 17.08 18.52 17.67 16.99 18.05 Raised, leased cow sales ($) Lowest third 0.47 0.41 0.69 0.41 0.19 0.91 0.12 Middle third 1.02 1.08 0.55 0.62 0.62 0.33 0.68 Highest third 1.14 1.77 0.76 0.38 0.75 0.68 0.89 Heifer sales ($) Lowest third 0.32 0.13 0.15 0.14 0.02 0.58 0.12 Middle third (0.07) 0.38 0.16 0.04 0.13 0.24 0.35 Highest third 0.31 0.27 0.28 0.26 0.47 0.42 0.41 Gain on purchased livestock sales ($) Lowest third 0.00 (0.29) (0.05) (0.29) (0.17) (0.28) (0.79) Middle third 0.00 0.04 (0.01) (0.07) (0.24) (0.05) 0.03 Highest third 0.00 0.00 0.36 0.00 (0.13) 0.21 0.53 Other revenues ($) Lowest third 0.72 0.77 0.41 0.67 0.64 0.43 0.53 Middle third 0.39 0.67 0.02 0.45 0.86 0.31 1.07 Highest third 0.96 0.34 0.82 0.52 0.63 0.791.33 Total revenues ($) Lowest third 16.85 19.38 17.41 19.21 18.11 18.48 18.15 Middle third 16.72 20.42 17.47 19.30 19.56 17.17 20.63 Highest third 17.45 20.93 19.30 19.69 19.40 19.09 21.21

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Dairy Business Analysis Project: Financial Summary for 1995-2001 24 DBAP 1995-2001 Summary Costs by net farm income from operations per cwt. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Costs (per cwt) Personnel ($) Lowest third 2.622.603.012.582.443.453.12 Middle third 3.082.342.202.242.602.462.65 Highest third 2.492.422.021.862.012.132.31 Purchased feed ($) Lowest third 8.099.158.888.377.748.117.50 Middle third 7.218.968.327.826.906.688.27 Highest third 7.688.308.046.876.536.116.20 Crops ($) Lowest third 0.380.430.390.330.310.280.13 Middle third 0.210.310.140.310.290.180.65 Highest third 0.130.190.330.310.330.400.64 Machinery ($) Lowest third 0.891.330.960.981.010.920.86 Middle third 0.750.760.770.850.880.841.02 Highest third 0.690.570.730.670.740.841.14 Livestock ($) Lowest third 2.081.822.231.781.482.071.54 Middle third 2.042.822.161.531.791.491.77 Highest third 1.852.112.551.371.261.571.61 Milk marketing ($) Lowest third 1.291.081.021.211.051.031.05 Middle third 1.191.011.080.970.981.080.91 Highest third 1.160.871.091.101.111.201.17 Buildings and land ($) Lowest third 0.710.500.550.710.450.480.40 Middle third 0.460.450.510.600.760.640.85 Highest third 0.190.540.540.640.590.770.65 Interest ($) Lowest third 0.761.010.970.860.700.970.79 Middle third 0.670.690.530.710.500.500.39 Highest third 0.650.550.580.530.450.520.65 Depreciation: Livestock ($) Lowest third 0.000.000.040.770.830.810.65 Middle third 0.000.010.090.790.610.870.68 Highest third 0.000.000.091.050.680.950.69 Machinery ($) Lowest third 0.950.720.570.630.320.580.42 Middle third 0.290.500.280.290.400.460.55 Highest third 0.270.290.220.420.360.290.52

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Dairy Business Analysis Project: Financial Summary for 1995-2001 25 DBAP 1995-2001 Summary Costs by net farm income from operations per cwt. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Buildings ($) Lowest third 1.380.750.210.290.160.300.20 Middle third 0.250.220.140.210.100.100.17 Highest third 0.070.310.100.120.150.280.35 Other expenses ($) Lowest third 1.060.671.021.040.820.651.11 Middle third 0.810.730.690.760.820.670.76 Highest third 0.710.540.580.720.550.880.87 Total expenses ($) Lowest third 20.2020.0719.8519.5417.3219.6517.78 Middle third 16.9518.7816.9117.0816.6415.9718.68 Highest third 15.8816.6916.8715.6614.7615.9416.81 Net farm income from operations ($) Lowest third (3.34)(0.69)(2.44)(0.33)0.791.170.38 Middle third (0.23)1.640.552.222.921.201.96 Highest third 1.574.242.434.034.643.154.40 Gain on sale of capital assets ($) Lowest third 2.040.493.040.220.160.100.06 Middle third 0.630.480.150.010.20(0.15)0.28 Highest third 0.070.410.160.05(0.05)(0.05)0.10 Net farm income ($) Lowest third (1.30)(0.21)0.60(0.11)0.95(1.06)0.43 Middle third 0.402.120.702.233.121.172.24 Highest third 1.64 4.65 2.58 4.07 4.60 3.17 4.50

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Dairy Business Analysis Project: Financial Summary for 1995-2001 26 DBAP 1995-2001 Summary Financial performance by net farm income from operations per cwt. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Liquidity Current ratio Lowest third 1.591.331.7682.8214.840.601.22 Middle third 0.561.5519.135.581.912.373.16 Highest third 3.614.331.91429.8326.903.013.42 Working capital Lowest third (16,483)(299,407)(315,734)154,514311,875(190,075)16,716 Middle third (719,352)197,882(104,991)29,33441,420(185,020)216,967 Highest third 112,576195,183148,344245,322650,449400,622322,280 Solvency Debt to asset ratio Lowest third 0.290.510.620.460.550.440.35 Middle third 0.190.370.330.410.360.320.29 Highest third 0.240.410.360.370.330.320.30 Equity to asset ratio Lowest third 0.710.490.380.540.450.560.65 Middle third 0.810.630.670.590.640.680.71 Highest third 0.760.590.640.630.670.680.70 Debt to equity ratio Lowest third 0.599.84(1.00)(31.95)3.640.921.10 Middle third 0.280.732.521.881.590.730.52 Highest third 0.595.370.871.050.700.570.54 Profitability Rate of return on assets Lowest third (0.26)(0.01)(0.10)(0.02)0.03(0.01)0.02 Middle third 0.010.060.050.110.160.060.09 Highest third 0.130.310.140.280.260.160.16 Rate of return on equity Lowest third (0.34)(0.23)0.06(6.21)(0.07)(0.07)(0.01) Middle third (0.04)0.07(0.50)(0.16)(3.63)0.060.11 Highest third 0.140.440.210.990.570.210.22 Operating profit margin ratio Lowest third (0.26)(0.01)(0.20)(0.02)0.05(0.07)0.01 Middle third (0.00)0.070.030.120.160.070.08 Highest third 0.100.210.110.190.240.160.18 Financial efficiency Asset turnover rate Lowest third 0.820.720.640.950.950.630.83 Middle third 1.041.001.050.911.050.931.02 Highest third 1.451.301.281.571.061.110.83 Operating expense ratio Lowest third 1.020.911.040.890.850.920.87 Middle third 0.940.850.910.780.770.820.82 Highest third 0.860.750.820.690.680.730.69

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Dairy Business Analysis Project: Financial Summary for 1995-2001 27 DBAP 1995-2001 Summary Financial performance by net farm income from operations per cwt. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Depreciation expense ratio Lowest third 0.130.070.050.090.070.090.07 Middle third 0.030.040.030.070.060.080.07 Highest third 0.020.030.020.080.060.080.07 Interest expense ratio Lowest third 0.040.050.050.040.040.050.04 Middle third 0.040.030.030.040.030.030.02 Highest third 0.040.030.030.030.020.030.03 Net farm income ratio Lowest third (0.19)(0.03)(0.14)(0.02)0.04(0.07)0.02 Middle third (0.01)0.080.030.110.150.070.09 Highest third 0.090.200.130.210.240.170.21 Repayment capacity Cash flow coverage ratio Lowest third (0.24)0.40(0.92)58.248.810.733.82 Middle third 0.150.4129.836.963.163.321.84 Highest third 1.442.881.11338.4721.318.943.96 Term debt coverage ratio1 Lowest third 0.000.00(0.51)38.650.000.463.18 Middle third 0.000.002.0910.172.871.6421.66 Highest third 0.000.0069.977.1861.8530.065.04 Capital replacement margin2 Lowest third (71,823)(60,690)(525,297)(155,656)(38,516)(279,085)75,054 Middle third (442,265)275,004(90,780)423,258614,297167,497376,834 Highest third 150,179 661,175 246,741 334,131 624,094 541,949 706,714 1Term debt and capital lease coverage ration. 2Capital replacement and term debt repayment margin.

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Dairy Business Analysis Project: Financial Summary for 1995-2001 28 DBAP 1995-2001 Summary Balance sheet by net farm income from operations per cwt. Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Balance sheet (January 1) Current assets / cow ($) Lowest third 304 295 252 295 451 377 241 Middle third 249 313 336 374 490 414 462 Highest third 298 252 326 295 717 600 651 Total assets / cow ($) Lowest third 4,348 4,584 4,833 4,625 3,182 5,983 4,795 Middle third 3,182 3,782 3,725 4,124 4,364 4,126 4,007 Highest third 2,584 3,340 2,814 2,982 4,072 3,680 4,803 Current liabilities / cow ($) Lowest third 258 533 344 673 528 581 299 Middle third 373 538 417 642 690 441 350 Highest third 344 375 354 532 399 630 481 Total liabilities / cow ($) Lowest third 1,371 2,049 2,529 1,678 1,609 1,755 1,463 Middle third 753 1,483 1,087 1,579 1,571 1,121 966 Highest third 828 999 1,084 1,308 1,170 1,348 1,486 Equity / cow ($) Lowest third 2,977 2,535 2,305 2,947 1,573 4,228 3,332 Middle third 2,430 2,298 2,638 2,545 2,792 3,005 3,041 Highest third 1,756 2,342 1,729 1,674 2,903 2,332 3,317 Balance sheet (December 31) Current assets / cow ($) Lowest third 301 356 212 333 513 280 252 Middle third 225 388 291 529 529 372 630 Highest third 271 419 329 525 883 614 740 Total assets / cow ($) Lowest third 4,511 4,587 5,092 4,710 3,266 5,970 4,984 Middle third 3,182 3,702 3,722 4,221 4,371 4,026 4,303 Highest third 2,519 3,386 2,884 3,277 4,524 3,812 4,889 Current liabilities / cow ($) Lowest third 287 373 385 323 288 512 371 Middle third 311 325 352 517 397 379 404 Highest third 237 214 195 209 162 376 408 Total liabilities / cow ($) Lowest third 1,635 2,122 2,673 1,789 1,733 2,229 1,532 Middle third 806 1,374 1,078 1,477 1,299 1,080 1,033 Highest third 793 1,125 978 1,113 1,219 1,085 1,338 Equity / cow ($) Lowest third 2,876 2,466 2,419 2,922 1,533 3,740 3,452 Middle third 2,377 2,329 2,644 2,745 3,071 2,945 3,270 Highest third 1,726 2,261 1,906 2,164 3,305 2,727 3,551

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Dairy Business Analysis Project: Financial Summary for 1995-2001 29 DBAP 1995-2001 Summary Business size and production efficiency by average dairy assets per cow ($). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Business size Number of cows Lowest third 1,3272,0581,2216968728181,138 Middle third 2,1479371,6799131,3391,4731,220 Highest third 8991,130883809908833571 Number of heifers Lowest third 31982848293109292471 Middle third 1,4456221,018599836806548 Highest third 494752630571760693412 Milk sold (million lbs) Lowest third 19.7328.3918.2611.0713.8616.2321.25 Middle third 34.6116.9828.7216.4325.9325.9920.17 Highest third 14.8719.8715.9115.1618.2518.0111.22 FTE workers Lowest third 2433199111321 Middle third 40223221322822 Highest third 20241717191712 Acres of pasture + cultivated land Lowest third 1,2041,532699184253179312 Middle third 1,6863091,105465668649606 Highest third 698735607509587508393 Production efficiency Milk sold / cow (lbs) Lowest third 14,17813,66815,49315,04015,77317,78017,632 Middle third 16,09416,57417,99717,38418,21617,51316,426 Highest third 16,65917,08016,06718,44319,87018,11917,451 Cows / FTE worker Lowest third 49.6076.1871.3071.8384.8358.1959.78 Middle third 72.6543.0145.9350.8748.1756.3954.15 Highest third 46.6945.1446.1644.9346.6946.1140.66 Milk sold / FTE worker (million lbs) Lowest third 0.711.01 1.09 1.06 1.32 1.03 1.06 Middle third 1.110.68 0.82 0.88 0.88 0.98 0.89 Highest third 0.750.78 0.75 0.82 0.92 0.85 0.71 Cull rate Lowest third 0.240.340.370.33 0.360.390.35 Middle third 0.380.350.310.410.330.370.36 Highest third 0.43 0.33 0.38 0.40 0.34 0.38 0.36

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Dairy Business Analysis Project: Financial Summary for 1995-2001 30 DBAP 1995-2001 Summary Revenues by average dairy assets per cow ($). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Revenues (per cwt) Milk sold ($) Lowest third 15.21 18.65 17.03 18.47 17.79 16.75 18.63 Middle third 15.25 18.20 16.65 18.33 17.89 16.86 18.25 Highest third 15.33 18.30 16.38 18.25 17.70 16.41 17.85 Raised, leased cow sales ($) Lowest third 0.91 1.78 0.53 0.33 0.47 0.18 0.53 Middle third 1.05 0.57 1.01 0.33 0.53 0.85 0.71 Highest third 0.66 0.91 0.38 0.76 0.59 0.74 0.45 Heifer sales ($) Lowest third 0.06 0.33 0.25 0.09 0.35 0.66 0.37 Middle third 0.26 0.33 0.03 0.21 0.19 0.62 0.36 Highest third 0.15 0.12 0.32 0.13 0.07 (0.14) 0.14 Gain on purchased livestock sales ($) Lowest third 0.00 0.00 0.30 (0.08) (0.46) 0.30 (0.03) Middle third 0.00 (0.29) (0.11) (0.00) (0.13) (0.09) (0.18) Highest third 0.00 0.04 0.12 (0.27) 0.03 (0.33) (0.01) Other revenues ($) Lowest third 0.68 0.41 0.17 0.37 0.38 0.71 0.59 Middle third 0.56 0.40 0.33 0.63 0.72 0.36 0.71 Highest third 0.77 0.97 0.70 0.64 1.07 0.46 1.63 Total revenues ($) Lowest third 16.86 21.18 18.28 19.18 18.53 18.60 20.09 Middle third 17.12 19.21 17.92 19.49 19.19 18.6019.85 Highest third 16.90 20.34 17.90 19.51 19.45 17.14 20.06

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Dairy Business Analysis Project: Financial Summary for 1995-2001 31 DBAP 1995-2001 Summary Costs by average dairy assets per cow ($). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Costs (per cwt) Personnel ($) Lowest third 2.832.261.741.772.002.022.56 Middle third 2.612.242.582.232.653.102.75 Highest third 2.902.872.862.682.382.722.76 Purchased feed ($) Lowest third 7.698.667.847.496.996.498.09 Middle third 7.749.489.227.747.567.587.53 Highest third 7.378.288.057.836.466.576.36 Crops ($) Lowest third 0.170.340.120.090.110.280.12 Middle third 0.180.130.220.430.320.240.29 Highest third 0.380.480.500.420.490.311.02 Machinery ($) Lowest third 0.790.530.560.550.490.770.83 Middle third 0.590.990.851.031.020.740.91 Highest third 1.001.141.040.921.091.131.28 Livestock ($) Lowest third 2.053.072.971.601.631.981.80 Middle third 1.541.942.051.611.531.671.68 Highest third 2.551.741.941.451.431.431.44 Milk marketing ($) Lowest third 1.020.881.181.201.201.401.15 Middle third 1.281.071.011.031.070.930.94 Highest third 1.311.001.011.050.851.011.05 Buildings and land ($) Lowest third 0.570.650.600.801.011.180.78 Middle third 0.380.350.470.630.370.390.61 Highest third 0.440.490.540.520.530.400.51 Interest ($) Lowest third 0.730.670.590.640.540.560.47 Middle third 0.590.760.750.740.730.710.60 Highest third 0.800.810.710.710.330.650.76 Depreciation: Livestock ($) Lowest third 0.000.000.121.371.161.281.03 Middle third 0.000.000.030.600.530.890.60 Highest third 0.000.010.080.660.440.460.39 Machinery ($) Lowest third 0.000.290.190.380.300.350.40 Middle third 0.720.530.310.460.300.260.34 Highest third 0.640.680.570.490.510.760.76

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Dairy Business Analysis Project: Financial Summary for 1995-2001 32 DBAP 1995-2001 Summary Costs by average dairy assets per cow ($). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Buildings ($) Lowest third 0.000.150.060.060.040.110.14 Middle third 0.840.680.140.260.170.190.20 Highest third 0.660.460.260.290.190.360.37 Other expenses ($) Lowest third 0.970.600.600.700.630.610.86 Middle third 0.760.650.830.820.750.760.89 Highest third 0.850.690.841.000.830.850.99 Total expenses ($) Lowest third 16.8218.0916.5816.6516.1117.0318.23 Middle third 17.2218.8318.4417.5717.0017.4617.34 Highest third 18.8918.6218.4018.0315.5216.6517.69 Net farm income from operations ($) Lowest third 0.043.091.712.532.411.581.86 Middle third (0.10)0.38(0.52)1.922.191.142.51 Highest third (1.99)1.72(0.50)1.483.930.482.37 Gain on sale of capital assets ($) Lowest third 0.000.370.230.130.060.140.05 Middle third 1.260.582.380.130.32(0.06)0.37 Highest third 1.270.420.420.01(0.10)(0.20)0.02 Net farm income ($) Lowest third 0.043.461.942.662.481.831.91 Middle third 1.160.961.862.052.511.092.88 Highest third (0.72) 2.14 (0.08) 1.49 3.83 0.38 2.39

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Dairy Business Analysis Project: Financial Summary for 1995-2001 33 DBAP 1995-2001 Summary Financial performance by average dairy assets per cow ($). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Liquidity Current ratio Lowest third 7.784.032.143.859.451.911.37 Middle third 1.451.7219.0282.548.531.941.73 Highest third 1.710.861.68426.9722.702.263.39 Working capital Lowest third 256,742(108,887)(230,838)210,578235,591157,940120,419 Middle third (624,866)212,704(124,210)174,144509,954(125,613)165,594 Highest third (286,630)(10,159)85,41336,402141,065(22,773)269,949 Solvency Debt to asset ratio Lowest third 0.000.550.500.540.540.430.43 Middle third 0.300.420.420.430.500.430.30 Highest third 0.370.320.380.260.170.200.22 Equity to asset ratio Lowest third 1.000.450.500.460.460.570.57 Middle third 0.700.580.580.570.500.570.70 Highest third 0.630.680.620.740.830.800.78 Debt to equity ratio Lowest third 0.0013.412.69(30.02)4.500.941.28 Middle third 0.642.01(0.14)0.591.250.950.50 Highest third 0.690.520.210.490.250.280.39 Profitability Rate of return on assets Lowest third (0.08)0.250.130.220.200.090.12 Middle third 0.010.03(0.02)0.090.140.080.10 Highest third (0.04)0.08(0.02)0.060.130.030.05 Rate of return on equity Lowest third (0.15)0.26(0.39)(5.53)(4.63)0.120.18 Middle third (0.00)(0.06)0.090.090.350.060.12 Highest third (0.10)0.08(0.02)0.050.150.030.03 Operating profit margin ratio Lowest third (0.05)0.140.080.100.120.070.09 Middle third (0.01)0.03(0.03)0.110.130.090.13 Highest third (0.10)0.10(0.09)0.070.200.000.06 Financial efficiency Asset turnover rate Lowest third 1.811.531.591.871.441.351.36 Middle third 0.970.820.880.931.020.840.79 Highest third 0.550.660.530.610.630.500.54 Operating expense ratio Lowest third 0.960.810.850.750.770.800.81 Middle third 0.890.880.970.790.800.830.79 Highest third 0.990.820.940.810.720.840.77

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Dairy Business Analysis Project: Financial Summary for 1995-2001 34 DBAP 1995-2001 Summary Financial performance by average dairy assets per cow ($). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Depreciation expense ratio Lowest third 0.000.020.020.090.080.090.08 Middle third 0.080.060.030.070.050.070.06 Highest third 0.080.060.050.070.060.090.07 Interest expense ratio Lowest third 0.040.030.030.030.030.030.02 Middle third 0.030.040.040.040.040.040.03 Highest third 0.050.040.040.040.020.040.04 Net farm income ratio Lowest third 0.000.140.090.130.120.080.09 Middle third (0.00)0.02(0.03)0.100.110.060.12 Highest third (0.12)0.09(0.03)0.080.200.030.11 Repayment capacity Cash flow coverage ratio Lowest third 0.292.880.893.9410.602.443.50 Middle third 0.680.4829.3561.164.676.221.59 Highest third 0.210.33(0.15)335.5517.633.513.44 Term debt coverage ratio1 Lowest third 0.000.001.976.060.000.876.85 Middle third 0.000.00(0.19)7.510.0023.6315.93 Highest third 0.000.0070.4275.7232.361.373.48 Capital replacement margin2 Lowest third 39,459303,036(112,054)359,248481,25386,519462,079 Middle third (341,031)159,099(283,182)36,044196,405246,677507,835 Highest third (96,082) 413,354 53,386 227,953 626,689 74,542 188,688 1Term debt and capital lease coverage ratio. 2Capital replacement and term debt repayment margin.

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Dairy Business Analysis Project: Financial Summary for 1995-2001 35 DBAP 1995-2001 Summary Balance sheet by average dairy assets per cow ($). Category 1995 1996 1997 1998 1999 2000 2001 Number of farms 20 27 44 55 26 23 39 Balance sheet (January 1) Current assets / cow ($) Lowest third 183 150 215 189 424 441 297 Middle third 273 379 305 277 462 430 479 Highest third 387 331 397 502 779 516 578 Total assets / cow ($) Lowest third 1,346 2,133 1,942 1,899 2,170 2,558 2,536 Middle third 3,128 4,027 3,532 3,591 3,382 3,919 4,154 Highest third 5,658 5,546 5,926 6,270 6,312 7,370 6,914 Current liabilities / cow ($) Lowest third 7 433 328 339 502 541 365 Middle third 416 410 372 743 596 627 337 Highest third 538 603 420 761 542 432 427 Total liabilities / cow ($) Lowest third 7 1,047 949 1,202 1,337 1,258 1,118 Middle third 1,101 1,719 1,557 1,697 1,876 1,580 1,357 Highest third 1,728 1,765 2,126 1,660 1,060 1,257 1,440 Equity / cow ($) Lowest third 1,339 1,086 993 698 833 1,301 1,419 Middle third 2,027 2,308 1,974 1,894 1,505 2,340 2,797 Highest third 3,930 3,781 3,800 4,610 5,252 6,114 5,474 Balance sheet (December 31) Current assets / cow ($) Lowest third 178 250 226 367 464 425 426 Middle third 266 471 247 436 545 403 505 Highest third 337 443 365 590 912 429 691 Total assets / cow ($) Lowest third 1,330 2,227 1,979 2,144 2,278 2,633 2,859 Middle third 3,100 4,091 3,829 3,716 3,552 4,008 4,248 Highest third 5,810 5,358 5,875 6,377 6,535 7,171 7,069 Current liabilities / cow ($) Lowest third 5 201 284 274 269 362 455 Middle third 324 260 382 377 216 444 360 Highest third 503 451 262 405 408 442 368 Total liabilities / cow ($) Lowest third 5 1,166 951 1,220 1,307 1,131 1,251 Middle third 1,034 1,761 1,656 1,613 1,778 1,716 1,267 Highest third 2,118 1,694 2,039 1,538 1,046 1,365 1,384 Equity / cow ($) Lowest third 1,325 1,061 1,027 924 971 1,502 1,607 Middle third 2,065 2,330 2,173 2,103 1,774 2,292 2,981 Highest third 3,692 3,664 3,836 4,838 5,489 5,806 5,685