Appraisers handbook

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Purpose of Ap~raiser~s Handbook

The Appraiser's Manual sets forth the policies of the Farm Credit Administration and procedures to be followed by appraisers throughout the United States.

The Appraiser 9_{s Handbook is in tended as a guide to ass is. t}

appraisers in the Ninth Farm Credit District in estimating normal building costs and values and in determining normal gross income, normal operating costs, and normal net re4

turns.

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THE FEDERAL LAND BANK OF WICHITA

900 FARM CREDIT BANKS BUILDING

__..--· 1!51 NORTH MAIN, WICHITA. KANSAS 67202

i

TELEPHONE: AREA CODE 316-264-5371

KANSAS-OKLAHOMA-COLORADO-NEW MEXICO February 5, 1975

TO: ALL USERS OF APPRAISER'S HANDBOOKS SUBJECT: APPRAISER' S HANDBOOK REVIS ION

l. /) ) ' .// I ) ,

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Attached is new material for the Commodity Prices, Operating Costs and Machinery Data sections of the Appraisal Handbook. All material presently under these sections should be destroyed and the new materials inserted in

the proper sections. This memorandum should be inserted in front of the handbook to serve as a foreword.

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These prices and costs are one of the "tools" for net income projections when adapted to the level of management and type of operation of the particular applicant. Accordingly, as the loan size, complexity and level of risk exposure increases, a greater degree of documentation should be developed supporting the level of management and repayment ability of the individual applicant.

The base information for these prices was developed in conjunction with six other Land Banks and then specifically adapted by our Bank for this district. In setting the "base" price for each commodity, it was felt the actual cash price should not fall substantially below the "base" price for any extended period during the next three to five years. Thus, the prices included in this revision should exhibit more stability than current cash

prices. In most instances, grain prices have been increased while the

out-look for the livestock industry has necessitated a downward adjustment. The new prices and costs have been applied to sample benchmarks representing typical types of farms and ranches to give an indication of the affect the

new prices and costs will have on net income. The results of these sample

benchmarks are summarized in the following paragraphs. Net income has been projected for most benchmarks in the district and lists of these new net incomes are attached. Please make pen and ink change.s to the benchmarks

you use to reflect these new net incomes. Since the benchmark net income

already deducts a certain amotm.t of repair and replacement of equipment and interest on short term credit expense, care should be taken not to

double charge the applicant for these expenses. In the use of these net

incomes in projections of income for credit purposes, the repair and replace-ment of equipreplace-ment and interest on short term credit figures can be added back to the net income and deductions for depreciation and interest then made as an adjustment against total income.

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4.

5. Page Two

Appraiser's Handbook Revision

Adjustments of +30% were made to the amounts in the repair and

replace-ment of equipreplace-ment column and +10% in the interest on short term capital

column to arrive at the new projected net incomes. Therefore, you could

make similar such adjustments to the repair and replacement of equipment figure and the interest on short term capital figure before adding back these items to the net incomes.

DIVERSIFIED FARMS (DRYLAND)

Expected

Type Change In Owner Operator Range of Owner Operator

Operation Net Income Since 1973 Capitalization Rates

Grain-hog-cow herd- No Change 8% to 13%

soybeans

Grain-cow herds, cotton - Si'o to -25i'o 5'7o to 7%

Dairy farms - no feed No Change to -5% 30% to 50%

raised

Dairy farms - farm type No Change 12% to 20%

Grain-stocker cattle +15% to 25% 7% to 12%

On diversified farms, the decrease in feeder cattle prices and increased costs has generally offset or more than offset the increase in grain and soybean prices. Farms where beef cow herds are of major importance have shown the greatest decline in net income. Farms with cotton as the major enterprise have also generally shown a decline in net income.

Type Operation

CASH GRAIN FARMS (DRYLAND)

Change In Owner Operator

Net Income Since 1973

Expected

Range of Owner Operator Capitalization Rates 1. Eastern

&

Central Kansas,

Oklahoma gratn and soybean farms

+25% to +30%

2. Fallow wheat farms +30i'o to +35% 6% to 9%

3. Western Colorado pinto

bean and wheat farms

Page Three

Appraiser's Handbook Revision

CASH GRAIN FARMS (IRRIGATED)

Type Operation 1. Sprinkler grain 2. Gravity grainMbeets-beans 3. Gravity grain-cotton 4, Gravity-potatoes-malt barley

Change In Owner Operator

Net Income Since 1973

+407o to +60%

+30% to +50%

No Change to -157o

+25% to +35%

Expected

Range of Owner Operator Capitalization Rates

12% to 15%

10% to 13%

8% to 12% 15% to 30%

Farms where cotton is a major enterprise will show a decline in net income

due to the current cotton price outlook and rising costs.

Capitalization rates tend to be higher on farms, producing specialized crops such as potatoes, malt barley, pinto beans, etc. due to their history of fluctuating prices and the hazards of growing these crops. Sprinkler irri-gated farms have a higher capitalization rate due to the extra expense and depreciation of the irrigation system on these farms.

Area

1. Beef Cow Ranches

Expected Net Income Per Animal Unit*

*

$35 to $55

2. Sheep Ranches * $60 to $70

3. Stocker

graz-ing ranches

&

pastures ($12 to $14 per ewe fall count)

*

$70 to $80 ($42 to $48 per yearling) RANCHES Change In Owner Operator

Net Income Since 1973

-35% to -60% +5% to +107o +5% to +25% Expected Range Of Owner Operator Capitalization Rates 2% to 6% 5% to 7%

Page Four

Appraiser's Handbook Revision

As can be seen in the charts, cash grain units, sheep ranches and grass fattening operations appear to have an improved profit picture; cotton and hog farms slightly less profitable and farms and ranches with beef cow herds much less profitable. Due to the changed profit relationship substituting of enterprises may be expected in areas where it is possible to do so.

It should be pointed out that most of our appraised values are the actual market values of the properties. Market value is the price that a property will sell for at the time of the appraisal and does not in any way guarantee

that values at some later date will not decline. The volatile nature of commodity prices and their possible affect on farm and ranch prices and loan repayment ability should serve as a reminder to be prudent in extending credit based on today's appraised values. The current farm economy emphasizes the importance of borrowers having sufficient financial resources to withstand a period of fluctuating income years.

Your Assistant Vice President-Field will be glad to counsel with you on the application of the new prices, costs and net incomes.

THE FEDERAL LAND BANK OF WICHITA

~f~

Max H. Fossey

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KANSAS ... OFF.ICIAL BENCHMARKS D. KIHN REGION

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NET RETURN

Benchmark Owner Operator Tenant Lard lord

210 - Jost $ 4,190 $ 1,900 $ 2,290 236 - Longnecker 6,436 2,114 4,322 721 - Shoneman 8,890 4,690 4,200 702 - Berry 6,484 2,494 3,990 201 - Bowlus 7,345 2,795 4,550 209 - Graves 4,800 1,175 3,625 715 - Krone Bros. 3,315 940 2,375 219 - Staley Santag 4,275 375 3,900 728 - Warrick 4,500 70 4,430 290 - Hainline 11,410 213 - Martin 7,415 2,140 5,275 720 - Schemn 5,825 2,500 3,325 768 - Wamser 1,050 -130 1,180 701 - Bechtold 11,409 6,817 4,592 220 - Staudenmaier 19,187 11,465 7,722 737 - Burdett 8,137 4,225 3,912 320 - Shuff 12,320 4,780 7,540 704 - Bonar 5,029 2,019 3,010 202 - Breithaupt 11,350 4,388 6,962 714 - Kirby 10,095 3,990 6,105 237 - McLeod-Meyer 2,332 -148 2,480

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~··. 723 - Elkins _{233 - Innes} 5,314 _{257 -453} 886 4,428 ₇₁₀ 234 - Kahrs 6,229 995 5,234 710 .. Floyd 6,781 3,092 3,689 228 - Evans 9,812 3,697 6,115

711 - Harris No change in net returns

271 - Hrenchir -465 -765 1,230

717 - Mosher No change in net returns

232 - Hamilton 5,195 2,098 3,097 215 - Reamer 5,320 1,573 3,.747 216 - Smith 5,140 640 4,500 231 - Hall 7,934 5,059 2,875 772 - Robbin 9,112 4,524 4,588 February 1975

KANSAS .. OFFICIAL BENCHMARKS D. FILBERT REGION

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NET RETURN

Benchmark Owner Operator Tenant Landlord

305 - Dillinger $ 3,510 $ 1,867 $ 1,675 774 .. Finley 10,052 4,462 5,590 319 - Reichert 8,750 3,830 4,920 331 - Weins 11,800 4,340 7,460 203 - Brooks 7,566 3,887 3,679 311 - James 8,596 3,274 5,322 313 - Lutgen 8,890 5,100 3,790 732 .. Baird 2,130 630 1,500 308 - Helfrich 3,426 1,415 1,961 310 - Hubbell 11,900 3,744 8,156 004 - Jungerferman 29,020 10,672 18,348 749 - Koehn 2,630 898 1,732 314 - McCowan 6,575 3,225 3,350 764 - Tuggle 2,795 620 2,175 303 - Chesney 5,090 1,190 3,900 751 - Lehmann 5,625 2,420 3,205 315 - Mason 4,440 2,065 2,375 741 - Hagerman 6,590 3,275 3,315 747 - Kirby 8,280 3,450 6,725 734 - Barnett 2,280 690 1,590 750 - Kuhl 11,660 6,580 5,080 ( ~~· 757 - Saindon 6,675 2,510 4,165 773 - Allen 8,135 2,450 5,685 301 - Buckner 4,770 2,536 2,234 330 - Shima 10,075 1,895 8,180 February 1975

OKLAHOMA - OFFICIAL BENCHMARKS E, HOWELL REGION

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NET RETURN

Benchmark Owner Operator Tenant Landlord

807 - Boggs $ 5,057 $ 2,290 $ 2,767 442 - Fox 7,003 2,436 4,567 424 - Pennington 1,600 190 1,410 891 - Prichard 5,200 695 4,505 428 - Schneberger 6,715 3,085 3~630 418 - McCabe 6,915 3,415 3,500 845 - Patton 7,569 3,765 3,804 855 - Strecker 3,360 910 2,450 817 - Evans 4,600 1,248 3,352 480 - Mayo 3,250 1,000 2,250 847 - Phillipi 26,000 11 '843 14,157 852 - Shilling 5,087 2,026 3,061 862 - Wilson 6,785 3,118 3,667 810 - Caughlin 12,760 5,829 6,931 414 - House 8,963 4,677 4~286 458 - Oliphant 31,000 401 - Armstrong 3,300 430 2,870 872 - Bese 410 413 - Hixon 6,450 2,860 3,590 415 - Hudson 5,655 160 5,495 ( 466 Sttnnp 3,250 -800 4,050 400 (without dwlg) 467 - Bay 6,056 2,786 3,270 808 - Bohner 4,680 360 4,320 816 - Eggleston 3,300 1,329 1,971 416 - Jackson 11,690 4,990 6,700 842 - Nelson 9,745 5,388 4,357

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February 1975

OKLAHOMA OFFICIAL BENCHMARKS L. McCLELLAN REGION

NET RETURN

Benchmark Owner Operator Tenant Landlord

407 - Chaney $ 8,195 $ 2,998 $ 5,197

893 - McGavock 1,290 -80 1,370

421 - McLaughlin 7,082 3,197 3,885

800 - Ratliff 4,262 1,624 2,638

819 - Ferguson No change in net returns

476 - Knight 350

885 - Wegener No change in net returns

874 - Carlile 650

809 - Carson Not reworked at this time

434 - DeNoyer 6,573 1,445 5,078 822 - Franklin 10,175 1,775 8,400 857 - Taylor 3,315 634 2,681 430 - Unrau 5,951 2,674 3, 277 470 - Bums 650 422 - Mapp 7,850 3,755 4,095 841 - Meinecke 6,000 -180 6,180 423 - Pardue 2,880 320 2,560 851 - Self 12,685 5,562 7,123

040 - Pate No change in net returns

405 - Busha 8,877 3, 727 5,150 ,.-873 Butler 500 491 - Coop 7,595 431 - Wagnon 3,100 320 2,780 861 - Wilmoth 540 -60 600 472 - Dyer 820 802 - Gibson 1,200 -90 1,290 456 - Long 14,820 420 - McGinnis 5,178 1,107 4,071 432 - Ward 6,630 3,050 3,580 February 1975

COLORADO - OFFICIAL BENCHMARKS D. ASPER REGION

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NET RETURN

Benchmark Owner Operator Tenant Landlord

501 - Campbell $16,320 $ 9,474 $ 6,846

908 - Carlson 4,107 1,413 2,694

965 - Scott 7,650 3,400 4,250

523 - Sutherland 6,950 2,000 4,950

529 .. Butler Not reworked at this time

516 - Porterfield Not reworked at this time

533 - Snodgrass 18,775 11,875 6,900 527 - Bitner 23,300 12,800 10,500 537 - Blooding 11,360 3,865 7,495 915 - Dieterle 17,700 5,525 12,175 590 - Fox-Mock 15,150 538 - Hageman 6,800 2,300 4,500 524 - Swanson 2,900 800 2,100 918 - Frye 2,213 728 1,485 540 - Haws 14,500 512 - Klecker 54,789 17,456 37,333 994 .. Short 5,250 902 - Ayers 7,225 3,175 4,050 500 ... Blackstone 11,350 6,125 5,225 992 - Gunn No change

551 .. Horn Not reworked at this time

(-~ .. _{591 - Pfeiffer 5,066} 574

-

Rowser 433 (with dwlg) 272 (without dwlg) 542 - Boitz 15,725 7,725 8,000 571 .. Colletti 185 (with dwlg) 750 (without dw1g) 502 - DeLong 12,225 4,625 7,600 942 - Hart No change February 1975

COLORADO - OFFICIAL BENCHMARKS J. HARRIS REGION

(-NET RETURN

Benchmark Owner Operator Tenant Landlord

990 - cargill $12,800 $

-

$

-991 - Connelley 7,500 923 - Hanavan 5,500 1,850 3,650 924 - Harris No change 522 - Smith 18,200 8,400 9,800 979 - Verberg 510 (with dw1g) 310 (without dw1g)

550 - Hatch Not reworked

554 - Lippincott 8,000 3,280 4, 720

573 - Rogers 340

937 - Sauter 13,250 6,800 6,450

513 .. Linden 25,050 13,650 11,400

970 .. Adsit Not reworked

978 - Vair -464 900 - Counts 17,500 7,935 9,565 507 - Gil1and-Johnson 16,870 9,060 7,810 921 - Gray 4,800 593 - Livingston 43,000 913 - Demmil 8,900 4,275 4,625 ..- 510 - Johnson 24,446 12,527 11,939 / _{515 - Moore 38,500 19,300 19,200}

546-

Pabst 6,400 2,525 3,875 020 - Brownlee 19,000 912 - Crossland 15,462 7,853 7,609 928 - Kejr 4,985 2,085 2,900 945 - Zuege 14,799 7,375 7,424 February 1975

NEW MEXICO ~ OFFICIAL BENCHMARKS L, LUBERS REGION

NET RETURN

Benclunark Owner Operator Tenant Landlord

998 .. Bounds $ 11,400 $

..

$

-950 - Bamert 13,625 8,525 5,100

953 - Evans 12,550 5,425 7,125

609 - Spangler 11,225 5,335 5,890

622 - Visser 72,152

614 - Clayshulte Not reworked at this time

690 - Ellinwood 37,284 "?.. ., . .: 1 :' (', ~

604 - Herrera 4,016 . 2,201 1,815

605 - Janecka 26,000 15,700 10,300

033 - Randle No change in net returns

623 - Albright No change in net returns

600 - Blackburn 13,175 5,950 7,225

032 - Eakens 28,589 13,175 14,157

999 - Hall 46,725

606 ... Kleeman 55,000 34,000 21,000

691 - Shanks 15,800

985 - Smith No change in net returns

610 ... Stokes 6,200 2,315 3,885 952 - Dougherty 8,600 2,350 6,250 602 - Gill 7,700 3,650 4,050 619 - Pair 12,750 (

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February 1975

COMM:>DITY PRICES

The following prices represent the major commodities produced in our district. These prices are to be used to project gross income under the

income approach. If prices arP. needed for commodities not listed

here they can be estimated by obtaining a 5 year average of the prices

received for that commodity during its major marketing month. This 5

year average should include the price for 1974. If the major market

month for 1974 has not yet arrived then the 1974 price for that month should be projected. Any price arrived at by this method should be submitted to the bank for approval before it is used.

Conunodity Crops

Barley-field

Beans, dry pinto

Com Cotton, upland bu .. cwt. bu. lb. Cotton, Egyptian lb.

Ensilage, Corn ton

Ensilage, Sorghum ton

Hay, Alfalfa ton

Hay, Native ton

Hay, Tame ton

Oats bu.

Grain Sorghum cwt.

Soybeans bu.

Sugar Beets ton

Wheat (see attached

map) bu.

Potatoes cwt.

Malt Barley bu.

Peanuts lb. Kansas $ 1.65 14.00 1".90 14.00 12.00 38.00 30.00 32.00 1.00 3.10 4.90 27

.oo

2.95-3.10 Okla. Colo. $ 1.65 $ 1.70 14.00 15.00 2.00 2.00 .42 14.00 14.00 12.00 12.00 46.00 41.00 30.00 37.00 32.00 36.00 1.00 1.10 3.15 3.10 4.90 25.00 27.00 3. 00-3.05 2.90-2.95 2.75 ~.so .147

N.M.

$ 1.75 15.00 2.10 .45-.50 .65 .... 70 14.00 12.00 4 7.00 39.00 36.00 1.10 3.25 25.00 2.95-3.00 .155

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Slaughter Cattle Unit Steers-choice 950-1200/1 cwt. Steers-good 950-120011 cwt. Steers-standard 1000-140011 cwt. Heifers-choice 800-1000// cwt. Heifers-good 800-1000/1 cwt. Heifers-standard 850-110011 cwt. Cows, Utility cwt.

Cows , Canners &

Cutters cwt. Bulls-Utility cwt. I { _{Bulls-Cutters cwt.} Feeder Cattle Steer Calves-good to choice 300-400/F cwt.

Steer, Yrl, good to

choice 450-650/! cwt.

Steer, yr1, standard

450-650

4!

cwt.

Steers, Feeder , good

to choice 700-900# cwt. Steers, Feeders, standard 700-900 # cwt.

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February 1975 Kansas Okla. :? 38-40 $38-40 36-38 36-38 32-36 32-36 35-38 35-38 33-35 33-35 30-33 30-33 20-24 20-24 17-20 17-20 32 32 28 28 37-39 37-39 36-37 36-37 34-36 34-36 34-36 34-36 30-33 30-33 3 Colo. N.M. $38-40 $ 38-40 36-38 36-38 32-36 32-36 35-38 35-38 33-35 33-35 30-33 30-33 20-24 20-24 17-20 17-20 32 32 28 28 37-39 37-39 36-37 36-37 34-36 34-36 34-36 34-36 30-33 30-33 Appraiser's Handbook Commodity Prices

Feeder

(..-··· Cattle Unit

Heifer calves, good

to choice 300-400 IF cwt. $

Heifer Yrl, good to

choice 450-550 IF cwt.

Heifer, yr1, standard

450-550 fF cwt.

Heifer, Feeder , good

to choice 550-700 cwt. Heifer, Feeder , standard 550-700 IF cwt. February 1975 Kansas Okla. 34-36 $ 34-36 33-35 33-35 31-33 31-33 32-34 32-34 28-31 28-31 4 Colo. N.M. $ 34-36

_($

_34-~?.--. 33-35 33-35 31-33 31-33 32-34 32-34 28-31 28-31 Appraiser's Handbook Commodity Prices \ )

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co p. (l)

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-'< (I) t-d _::I! 11 _~ ...,. () p. (1) _0' (I) ₀ 0 ~ BEEF.CATTLE

Good Quality (age 2-6 years)

·eommon QUality (age 2-6 years)

Heifers· . · .·

.. Good Quality yrls.

bred heifers Bulls Good Quality Registered DAIRY CATTLE Inventory

Cows, Good Quality {up to 5 years)

Bred Heifers

Yearling Heifer·s

Heifer Calves Sales

Cull Cows

Heifers (variable age) lleifcr Cnlvcs

null calves (1 week old)

BREEDING HERD INVENTORY"

Normal Price Per Head .at the. Ranch or Farm $235 285 210 - 235 190 - 215 215 - 260 500 - 600 600

&

up 500 - 700 450 - 600 250 300 175 - 250 250 - 275 180 200 150 175 50 - 60

"%J ~ a" 1'1 ~ ~ ... \0 -..J VI Class Unit Sheep Lambs, Feeders 60-80# Good - Choice cwt. Lambs, Slaughter 95-110# Choice - Prime cwt. Good cwt.

Old Ewes & Bucks cwt.

Slaughter

u.s.

No. 1-2 200-220# cwt. 1-3 220-260# cwt. 2-4 260-300# cwt. Sows U.S. No. 1-3 300-6001 cwt.

Boars - all weights cwt.

>

Feeder Pigs

*

30/l - 40#

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COMMODITY PRICE PROJECTIONS

Sheep and Hogs

Kansas Oklahoma $ 32-34 $ 30-32 33-35 32-34 31-33 29-31 12-15 12-15 28-30 26-29 27-29 25-28 25-27 . 23-26 18-20 16-19 13 13 20-25 20-24 ~~

&;

*Higher price relates to lighter weights t4t1 n ... '<(I) ~~ t4::S n~ CD a" m o 0 ?\"

Colorado New Mexico

$ 33-35 (mtn.) $ 32-34 (mtn.) 32-34 (plains) 31-33 (plains) 34-36 (mtn.) 33-35 (mtn.) 33-35 {plains) 32-34 {plains) 32-34 (mtn.) 31-33 (mtn.) 30-32 (plains) 30-32 (plains) 12-15 12-15 29-31 28-30 28-30 27-29 26-28 25-27 19-21 18-20 13 13 20-25 20-24

."

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~ COMMODITY PRICE PROJECTIONS

fD _{Livestock Products}

cT

~

...

'< Class Unit Kansas Oklahoma Colorado New Mexico

t-" \0

.40

... _{~ doz • .25 .35 .40}

U1

Custom Contracts doz. .045 .050

Milk1 Gr. A- 3.5% BF*

**Class I, (Fluid)Blend cwt. 6.75 7

.oo

7.25 7.50

Class II, (Manufacturing) cwt. 5.50 5.15 6.00 6.25

Poultry

Broilers lb.

Custom Contract ea. .070 .075

Chickens (Other) lb. .085 .100

... _{Wool lb. .70 .60 .75} .15

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_o

a

_en

~ ~

*

Add 8.5 for each one-tenth% B.F. (Ex. - Sell 3.7% B.F. milk in Okla. Formula is $7.00

+

.17 = $7.17 cwt.)

rt

-'< en

t'd :X:

**

Blend of Base and 11_{0ver-Base" on the average of 85% Base Milk. Base milk is usually $1.00 cwt above}

!1! .-- tJ "Over-Base" milk. 0 Po (i) cT m o 0 ~

NORMAL ACREAGE

Foreword

Normal acreages prescribed by the Economic Research Division take into

account the long range outlook for crop produ.ction. Government programs

are designed to stabilize production and to assist in keeping an

econom-ically reasonable relationship between supply and demand. Included in

the considerations are such factors as domestic and world requirements1

markets, anticipated yields and production, encroachment of competitive commodities, trends in population and many others.

Except in unusual situations, the normal acreages prescribed are to be

used in appraisals. Obviously, normal acreages have a tightly

inter-woven relationship with normal prices and costs. Normal commodity prices

are predicated upon forecasts which anticipate government acreage reduc-tion and control programs.

Crops common to this District that are affected by acreage allotments are

wheat, cotton, peanuts, feed grains, and sugar beets. Feed grains are

defined as corn, grain sorghums, grain type silage and field barley.

Sub-stitution of one allotted crop for another is not allowed. Cross

compli-ance is not required.

Provisions are also made for diverted or set-aside acreage on farms pro-ducing allotte.d crops and in addition most of these farms have conserving

base acreages established. Both of these are to be recognized in appraisals.

Diverted acres must be idle and produce no income since normal prices take

this factor into account. Soil building crops) as defined by the

govern-ment programs, may be grown on the conserving base acreage and fed or sold. When making appraisals of part of a larger operating unit which has a

combined allotment and the allotted acres are not available for only that part being appraised, use a pro-rata share on the basis of cropland acres in the combination.

The unusual situations under which allotments may not be considered in

appraisals are 1) no allotments, 2) very nominal acreage in the allotment

that is uneconomical to operate under local practices, 3) where the type

of farming has changed in such a way that it is no longer feasible or typical to follow allotments.

As indicated above, in most appraisals normal acreages and 11_allotted"

normal prices will be used. When and if allotment and nonmal acreage

programs are not followed, the 11_{not allotted" price is to be applied.}

It will never be necessary to use both the allotted and not allotted price for one crop in the same appraisal report unless the appraisal covers two or more farms under different government contracts.

August 1971

Appraiser's Handbook Acreage

Cotton. Feed Grain Peanuts Sugar Beets • Wheat • August 1971 NORMAL ACREAGES Contents . 3 • 2 • 4 . 4 . 1 Appraiser's Handbook Acreages

f ' ,

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WHEAT

The wheat allotment program has been changed from total acreage needed to meet exports, domestic consumption and feed and seed use to a domestic

allotment. The domestic allotment is the acreage needed to produce only

enough wheat for domestic food use. The domestic allotment is used to

determine the acreage to be set aside on each farm and is the basis for determining the amount of marketing certificates a wheat produce.r may receive under the program.

The prescribed normal acreage of wheat to use in making appraisals is any

~ of the formulae given below.

a) 100% of the 1969 allotment

b) 115% of the 1970 allotment

c) 260% of the 1971 Domestic allotment

Adjustments in the program since 1969 are such that the use of any one of these formulae will result in virtually the same planted acres on a given farm.

Set .... aside {diverted) acreage is computed at 15% of the number of acres actually seeded to wheat.

Examples:

Year Allotment Factor Plant Divert Total

(acres) _e~> (acres) (%) (acres)

1969 100 X 100

=

100

+

15

-

115

1970 87 X 115

=

100

+

1.5

=

115

1971 38 X 260

=

100

+

15 = 115

These examples demonstrate that if the wheat allotment is known for any one of the past three years, the correct normal acreage to use in

appraisals can be determined by using the formulae for that year.

August 1971

-1-Appraiser's Handbook Acreage

, /

I

FEED GRAIN

The allotted acreage for feed grain is prescribed at 80% of the base acreage with 20% being set-aside {diverted) acres.

Example: Base (acres) 150 X Factor

(%)

80 Plant (acres)

=

120 + Divert (acres) 30 = Total (acres) 150

Feed grain is defined as corn, grain sorghum, barley and grain type silage. The normal acreage for feed grain on a farm is made up of any one or a combination of these crops.

Whole or partial substitution between these feed grain crops is allowed, but the combined total must not exceed 80% of the base allotment and the crops used must be feed grain crops typically grown in the area.

Sorghum type hays and ihaylage ~ !12! feed grains.

August 1971

-2-Appraiser's Handbook Acreage

,.

COTTON

Upland

The cotton allotment program is based on the total acreage needed to

meet both the domestic consumption and export n.eeds. However, the

new act requires that there be a set-aside or diverted acreage in addition to and above the planted acres.

The prescribed normal acreage of cotton to use in making appraisals

is 110% of the 1971 allotment. Either of the formulae below may be

used to determine not~l acreages.

a) 110% of the 1971 allotment

b) 78% of the 1967-70 allotment (old base allotment)

Set-aside (diverted) acreage is computed at 23% of the number of acres actually seeded to cotton.

Examples: 1971 1967-70(Base) Allotment (acres) 100 141 X X Factor

(%)

110 78 Plant (acres) = 110

+

=

110 + Divert (%) 23 23 Total (acres) = 136 = 136

These examples demonstrate that if the cotton allotment is known for any year since 1967, the correct normal acreage to use in appraisals can be determined.

Egyptian

The prescribed normal acreage for long staple cotton is 75% of the 1971

allotment. Any ~ of the formulae below may be used to determine

nor-mal acreages.

a) 75% of the 1971 allotment

b) 115% of the 1970 allotment

c) 115% of the 1969 allotment

There is no set-aside (diverted) acreage.

August 1971

-3-Appraiser's Handbook Acreage

PEANUTS

Although production of peanuts has exceeded needs the last few years, the allotted acreage has not been reduced because it is already at the legal minimum permitted by law.

'!'herefore, the prescribed normal acreage remains the same, that is, 100% of the 1970 and 1971 allotments.

There is no set-aside (diverted) acreage.

SUGAR BEETS

Normal acreages for sugar crops have been estimated on the basis of trends in per capita consumption of sugar and U. S. population,

recognizing the quotas allotted to .each sugar crop under legislation. The prescribed normal acreages to use in appraisals are:

a) 100% 1970 allotment

b) 90% 1969 allotment

c) 100% 1968 allotment

There is ~ set-aside (diverted) acreage.

August 1971 -4 ..

Appraiser's Handbook .Acreage

OPERATING COSTS

Operating cost items are used to determine many of the expense items in the income approach. A list of the more common cost items are listed

below, These prices may be modified some to fit the local area. Items

not listed below can be determined by using current costs on most purchased items. Purchased items that are basically made up of farm commodities should be valued at the price given for that farm commodity in the commodity price section plus the cost of acquiring and transporting the commodity.

ITEM

Cottonseed cake & meal 41% Soybean cake & meal 44% Cattle supplement 20% Cattle supplement 32% Creep feed 15%

Dairy ration 14-16% Dehydrated alfalfa meal

Dairy calf & starter supplement 16% Milk replacer Hog supplement 40% Hog feed 14-18% Pig starter. 20% Chick starter 20% Broiler feed 16-18% Layer pellets 16% Oyster shell Stock salt Seeds Alfalfa Barley

Beet - monogerm seed Corn

Cotton - delinted (upland) Cotton - delinted (long staple) Oats Peanuts Potatoes Sorghmn, grain Sorghum, forage Soybeans Wheat February 1975 ton ton ton ton ton ton ton ton lb. cwt. cwt. cwt. cwt. cwt. cwt. cwt. cwt. cwt. bu. lb. bu. lb. lb. bu. lb. cwt. cwt. cwt. lb. bu. 1 COST RANGE $165.00 - 185.00 170.00 - 190.00 100.00 - 110.00 125.00 - 135.00 100.00 - 110.00 100.00 - 110.00 100.00 .. 120.00 150.00 - 170.00 .45 - .55 9.00 - 11.00 7.00 8.00 8.00 - 9.00 7.00 -

s.oo

7.50 -

a.oo

6.50 - 7.50 3.00 - 3.50 1.75 ... 2.00 130.00 - 160.00 3.00 - 4.00 2.20 - 2.50 24.00 - 26.00 .24 - .30 .30 - .42 2.00 - 3.00 .40 -

.so

5.50 - 6.50 28.00 - 30.00 20.00 - 22.00 0.08 - 0.12 5.00 - 7.00 Appraiser's Handbook Operating Costs

l:mJ

.:mm

COST RANGE Fertilizer .

Lime ton

s.oo ...

7.00

Rock phosphate ton 35.00 ... 55.00

Anhydrous ammonia 821.. ton 160.00 - 200.00

Mixed Fertilizers

.B

.l

..K..

0 20 20 ton 115.00 - 120.00 0 0 60 ton 75.00 - 105.00 0 46 0 ton 140.00 - 170.00 10 20 10 ton 110.00 - 120.00 8 32 16 ton 125.00 - 140.00 16 20 6 ton 125.00 - 140.00 16 48 0 ton 150.00 - 170.00 33 0 0 ton 120.00 - 150.00 18 46 0 ton 160.00 ... 180.00 Fuel

Gasoline (less tax) gal. .33 - .35

L.P. Gas gal. .28 - .32 Diesel gal. .35 - .37 Herbicides Atrazine lb. 2.20 2-4D 4 lb. gal. 7.65 2-45T 4 lb. gal. 13.00 Treflan gal. 13.00 Milo guard lb. 2.20 Insecticides Dasinet lb. 4.00 Aldrin lb. .27 Malathion gal. 11.00

Alfa Tox 5 gal. 35.00

Labor

Supervisor (with bouse) yr. 7,500.00- 10,000.00

Common II II· _{yr. 4,800.00 - 6,500.00}

Dairy Hand

_"

It _{yr. 6,000.00 ... 7,500.00}

Common Day Labor hr. 2.00 - 3.00

,.-" ...

I

Aeeraiser's Handbook

(

\

SCHEDULE OF FARM OPERATING COSTS (cont.)

MATERIALS Fencing Posts Steel, 6' Wood, 411 _dia. Wood, 611 _dia.

Wood, (large corner) Wire Barbed 4 pt. 3211 hog 4811 _hog Staples Building Common brick Concrete blocks, 811 x811 xl6" Haydite blocks

Concrete ready mixed Cement

Roofing

#1 wood shingles

Composition (thick butt)

( ·· Asbestos (siding) 28 gauge metal

c··

Paint Outside house Inside house Barn Miscellaneous Baling wire Baling twine

Vaccines (material only) Abortion Blackleg Cholera Shipping fever August 1971 each each each each 80 rod 20 rod ·20 rod lb. M each each cu yd 90 lb. square square square square gallon gallon gallon box (2 box (2 shot shot shot shot -8-$ bag 24011 spoo 1s) spools) Normal Cost

Median District Range

$ 1. 25 1. 20-1.45 1. 25 1. 15-1.35 1.85 1. 75-2.00 3.25 3.00-3.75 15.00 14-20 32.00 30-40 40.00 40-44 .21 .18-.30 75.00 70-100 .30 .30-.50 .30 .30-.45 15.00 15-19 2.00 1.90-2.50 28.00 26.00-30.00 12.00 11.00-16.00 28.00 28.00-35.00 15.00 14.50-17.50 8.00 7.00-9.00 6.00 5.50-7.00 5.00 5.00-6.00 12.00 11.50-12.75 7.50 7.00-8 00 .45 .18 .18 . 15 Appraiser's Handbook Costs

SCHEDULE OF FARM OPERATING COSTS (cont.)

ITEM

Insurance

Use current rates and charges made by established, recognized insurance companies and agencies.

Insurance items which are included in operating costs are fire, tornado, windstorm and hail on buildings, liability insurance, crop insurance, machinery insurance, cars and trucks and

insurance against the loss of livestock.

Do not charge for life insurance or any other type insurance that is carried by the operator on himself and his family.

Irrigation

Use operating costs found in the engineering section of this hand-book and in the engineering reports relating to the various water districts and projects.

Short Term Interest

Use approximately 4% of the owner operator's total costs.

Taxes

Use present taxes.

Tax items included in operating costs are those for real estate, personal property, social security taxes paid on hired labor and taxes levied against the land as a result of special assessments. Drainage districts, rural water districts, fire protection and sanitary districts are examples of special assessments.

Do not charge for income and social security taxes paid by the operator on his own income.

August 1971

-9-Appraiser's Handbook Costs

Work Sheet CORN PER ACRE COSTS

(80 bu. yield) Eastern Kansas

Operation Times Over Hrs./Acre

Seedbed preparation Plant

Cultivate Combine

Misc., moving, replant, etc. 4 1 2 1 1.50 .35 .40 .60

...:12.

3.00 Fuel: Tractor 2.4 hrs. at 4 gal/hr=9.6

Oil

&

grease at 7%% of fuel

gal diesel @14¢=1.34 Combine .6 hr at 5% gal=3.3 gal gasoline @22¢=

Oil

&

grease at 10% of fuel

Seed: 1 bu/Sac @$27.00/bu (single cross)

Fert.: 250# (82% anh. am.)@$3.75/cwt. 100# 8-32-16 @$4.50/cwt.

Herb.: Atrazine (banded) 1~#/acre

Pest.: Dasinet 4%#/acre

Shelling @3¢/bu (la~dlord's share)

Misc.: (reseed, etc.)

Custom: Anh. Am. applied

Total cost/acre own harvest (rounded) Custom Combine

&

Haul

Fuel: Seed: Fert.: Herb.: Pest.: Mise.: Custom: II It

tractor (from above)

II II

11 II

II 1t

11 II

"

"

Apply 82% anh. am. (from above)

Pick

&

shell @$5.50/ac + 5¢/bu over 40 bu. Haul @5¢/bu

+

%¢/bu/mi over 5 mi.

.10 .73 _&I 9.38 4.50 (Sample) Cost/Acre Owner Landlord Operator

1Ll

~ $ $ 2.24 5.40 13.88 3.25 3.00 1.23 1. 50 $30.50 1.44 5.40 13.88 3.25 3.00 1. 23 1. 50 7.50 4.00 2.70 6.94 1. 63 1.

so

1.20 .53 . 75 15.25 5.55 l. 30 1. 20 .45 8.50

Total cost/acre custom combine

&

haul (rounded) $41.25 15.25 8.50

August 1971

-10-Appraiser's Handbook Costs

c·

Work Sheet

COTTON PER ACRE COSTS (Irr. 750# yield)

Operation

Seedbed Preparation Apply herb

&

fert. Plant

Cultivate & harrow Dust

Pick

New Mexico

Times Over Hrs./Acre

8 2 1 ·3 2 3 3.85 .40 .25 . 90 .20 3.00 8.60

Fuel: Tractor 5.6 hr. at 4 gal=22.4 gal diesel @14¢=3.14

Grease

&

oil at 10% of fuel .31

Picker 3 hrs. at 3~ gal=l0.5 gal gas @22¢= 2.31

Grease & oil @15¢/hr. ....:,&

Seed: 30# @17¢/lb.

Fert.: 100# Anh. Am. @$4.50/cwt. 4.50

175# 0-46-0 @$4.10/cwt. 7.17

Pest.: 2 tractor sprays @$1. 75; 1 plane spray @$3. 25

Labor: Irr. 7 hr. @$1.60

Machine operator 8.6 hr. @$1.75/hr.

Herb: Treflan (applied)

Custom: Hoe 2 times @$2.50/time Apply Anh. Am.

Ginning, bagging

&

ties @$18.00/bale Misc., occasional reseed, extra spray, etc.

TO~L Cost/acre own picker (rounded)

Custom Picked

Fuel: Tractor (from above)

Seed:

_"

II

Fert.:

_"

II

Pest. : It II

Labor: Tractor Operator 5.6 hr. @$1. 75/hr.

Irr. 7 hrs. @$1.60

Herb. : (from above)

Custom hoe

Custom anh. am. applied Custom pick @$25.00/bale

Ginning, bagging, ties @$18.00/bale Misc.

TOTAL Cost/acre custom picked (rounded)

August 1971 -11-9.80 11.20 (Sample) Cost/Acre Owner Operator $ 6.21 5.10 11.67 6.75 11.20 15'. 05 7.00 5.00 1.

so

27.00 3.52 $100.00 3.45 5.10 11.67 6.75 21.00 7.00 5.00 1.

so

37.50 27.00 3. 73 $130.00 $ Rental 1/3 3.89 2.25 9.00 __&§_ $16.00 3.89 2.25 9.00 .86 $16.00 Appraiser's Handbook Costs

r

Work Sheet

GRAIN SORGHUM PER ACRE COSTS

Operation Seedbed Preparation Plant Cultivate Combine Misc. Eastern Oklahoma (22 cwt. yield)

Times Over Hrs./Acre

4 1 3 1 1. 20 .35 .60 .45 ...:.lQ. 2. 70

Fuel: Tractor 2.25 hr. at 4 gal/hr=9 gal

Grease

&

oil at 8% of fuel=

diesel @14¢:1.26 Combine .45 hr at 5\ gal=2\ gal gas @22¢

Grease

&

oil at 10% of fuel

Seed: 5# @22¢/lb.

Fert.: 80# 16-20-6 @$4.00/cwt.

100# 82% anh. am. @$3.50/cwt. Custom drying 1-3 years @10¢/bu. Hauling 1/2 7\¢/bu. (aver. 10 mi.)

Misc., reseed, fert. applicator rental, etc. TOTAL Cost own harvest (rounded)

Custom Combine

&

Haul Fuel tractor (from above)

Seed 11 11

Fert. II II

Custom drying 1-3 years (from above)

Mise. 11

"

Custom combine @$4.00/ac

=

5¢/bu over 30 bu.

Custom haul @7~¢/bu. (10 mi. aver.)

TOTAL Cost custom combine

&

haul (rounded)

August 1971 -12-...:.lQ. . 55

....&2.

3.20 3.50 (Sample)

Cost Per Acre Owner Operator Landlord 1/3 $ $ $ 1. 36 .60 1. 10 6. 70 1. 30 1. 50 ~ 13.50 1. 36 1. 10 6. 70 1. 30 1.04 4.50 3.00 19.00 $ 2.23 $ 2.25 2.23 $ 2.25

SJ

Appraiser's Handbook Costs

r.

Work Sheet

MACHINERY INVENTORY

Western Kansas-Eastern Colorado-Oklahoma Panhandle (Wheat 100% fallow-1600 acres crop1and-gr sorgh secondary)

CUSTOM COMBINE

&

HAUL Tractor Tractor Drill (2) Pickup Oneway (2) Plow Rotary hoe Chisel Springtooth Cultivator Grain auger Fuel tank Misc.

diesel, 95 HP, 5-6 plow, hydraulic, cab

II 70 It 3-4 Jl II

deep furrow, 16 hole, press wheels 1/2 T, 8 cyl, radio heater

15 ft. (or substitute disc. type implement) 5-6 bot (or 18 ft. sweep plow)

24 ft. (or rod weeder) 16 ft. w/extensions 40 ft. portable type 4-row 27ft., motor 500 gal diesel 300 " gasoline

shop equip, hand tools, welder, etc.

Sub-Total $

$

9,000 7,600 3,300 3,000 2,800 1,500 1,500 900 1,500 1,000 450 150 100 1,600 $34,400 at 12\% (8% depr.-4\% maint.) = Per acre (rounded)=

$4,300 2.70

OWN COMBINE & TRUCK

Combine Truck

19-20 ft., self-propelled, cab 2 T, 8 cyl, gr bed, hydra lift

Sub-Total

TOTAL $54,500 at 13% (8% depr.-5% maint.) =

Per acre (rounded) =

$7,085 4.45 $14,500 5,600 $ $ (Sample) 34,400 20,100 54,500 August 1971 -13-Appraiser's Handbook Costs

( ,

' .

Work Sheet

SUGAR BEET PER ACRE COSTS (23 T per Acre Yield)

Western Colorado ,Operation Seedbed Preparation Herb. Application Spread fert. Plant Cultivate Mechanical thinning Crease

&

lay-by Harvest Misc. Times Over 6 1 1 1 4 1 1 1 Hrs./Acre ·2.45 .30 .25

.so

3.00 .30

.so

2.00 _dQ_ 9.50

Fuel: Tractor 9.5 hrs. at 5 gal/hr=47.5 gal diesel @0.118¢

Oil

&

grease at 12~% fuel

Seed: 10# @50¢ (MOnogerm)

Labor: Hoeing, thinning ($16.50

&

$10.50) Irr. 4 hrs. @$1.60/hr.

Fert.: 22511 Anh. Am. @$7.00/cwt.= 15.75

380# 0-46-0 @$4.10/cwt. 15.58

Herb.: material

Insects: curly top spray, custom, including material

Hauling: 1/2 of beets @$1.25/T Misc. TOTAL (rounded) August 1971 -14-$ (Sample) Cost/Acre Owner Operator 8.55 1.05

s.oo

27.00 6.40 31.33 5.00 5.00 14.30 3.00 Rental $ 6.27 1.00 1.00 $107.00 8.25 Appraiser's Handboo~ Costs

(Sample)

Work Sheet

WHEAT PER HARVESTED ACRE COSTS (25 bu yld-100% fallow)

Western Kansas

OWN COMBINE & TRUCK Operation Seedbed Preparation and Fallow Drill Combine Times Over 7 1 1 Misc., moving, reseeding, etc.

Fuel:

Seed: Misc.:

Tractor 1. 5 hr. at 5 gal/hr. =7. 5

Oil

&

grease - 7~% fuel

Combine .20 hr. at 8 gal/hr.=l.6

Oil

&

grease at 10% fuel

404F @$3. 00 bu.

Spot spraying, reseeding, etc.

Hrs. /Acre 1.20 . 15 .20

-!..l1

1. 70 gal diesel @14c=l.05 .08 gal gas @22c= .35

...:..9.!

$ Cost/Acre Owner Operator 1.52 2.14 ~ $

TOTAL Cost/Harvested Acre (own harvest) $ 4. 00 (rounded)

CUSTOM COMBINE

&

HAUL

Fuel: Tractor (from above) 1.13

Seed: 40# @$3.00/bu. (from above) 2.14

Custom: Combine @$3.50/ac plus 5c/bu over 20 3.75

Haul @5¢/bu

+

~¢/mi over 5 mi. (average 10 mi.) 1.87

Misc., spot spray, reseeding, etc. ~

TOTAL Cost/Harvested Acre (custom harvest)

$

9. 25 (rounded)

= =

Rental

August 1971

-15-A~praiser's Handbook Costs

r···

MACHINERY COSTS

Current costs of machinery are to be used to determine repair and replacement of equipment cost in the income approach. Investigation indicates that machinery costs have increased 25 to 32% during the

last year. The appraiser sh~uld assemble current machinery cost

information in his local area for use in the income approach. A

range of costs for some of the more cOtmnon pieces of equipment in our district are listed as follows:

Bailer (Hay) PTO wire tie

Bailer (Big Bale) 1200-1500 lb/bale Chisel - 18 ft.

Combine Combine

20-22 ft. large capacity 14-18 ft. medium capacity Corn head for combine - 2 row Corn head fot combine - 4 row Cotton Picker - 2 row

Culivator mounted -

4

row

Culivator mounted - 6 row

Disc (Tandem) Disc (Tandem) Disc (offset) 16 ft. 18 ft. 15 ft.

Drill (with fertilizer attachment) 16~8

Drill (with fertilizer attachment) 20-8

Forage Harvester-PTO - 2 row-with pickup attach. Hay stacker wagon - 3 ton

Hay stacker wagon - 1% ton

Harrow - spike tooth per section Harrow - spring tooth per section Mower (Rotary)

Planter - with fertilizer attach. - 4 row Planter - with fertilizer attach. - 6 row

February 1975 1 COST RANGE $ 3,800 - 4,400 4,500 - 6,500 1,900 - 2,300 28,000 - 36,000 22,000 - 24,500 2,800 - 3,000 5,500 - 6,000 30,000 - 32,000 1,200 - 1,400 1,500 - 1,700 2,400 - 2,600 2,800 - 3,000 4,200 - 4,400 2,600 ... 2,900 3,200 - 3,800 5,000 - 6,000 8,000 - 10,000 5,000 - 6,000 70 - 80 200 - 250 1,100 - 1,300 2,200 ... 2,600 2,800 - 3,200 Appraiser's Handbook Machinery Data

ITEM Plows - moldboard - 3 btm. Plows - moldboard - 4 btm. Plows - moldboard - 5 btm. Plows - Irrigation - 3 btm. Plows - Irrigation - 4 btm. Plows - Oneway - 18 ft. Plows - Oneway - 20 ft. Rake - Side Delivery Rotary Hoe - 15 ft.

Swathers - Self Propelled - 14 ft.

Swathers - PTO - 9 ft.

Tractors - Diesel 120 hp. Tractors - Diesel 100 hp. Tractors - Diesel 75 hp. Truck - Pickup 1/2 ton

Truck - Pickup 3/4 ton 4 WD

Truck - Grain Bed - 2 ton

Sprayer - trailer type - power boom Wagon - without box

Wagon - Forage Wagon - Cotton Mise:

Manure spreader 140-190 bu.

Manure spreader 90-140 bu.

Fertilizer

&

Lime spreader 10 ft.

February 1975 2 COST RANGE $ 1,200 1,600 1,900 2,100 2,300 -3,000 .. 3,500 900 1,100 -1,400 1,800 2,500 2,300 2,500 3,500 4,000 1,000 1,800 10,000 - 12,000 4,000 - 4,500 17,000- 20,000 14,000- 17,000 11,000 - 14,000 4,000 - 4,700 5,800 - 6,000 8,000 - 11,000 1,000 700 ... 3,000 2,500 -1,900 ... 1,600 500 -1,200 800 4,000 3,000 2,200 1,900 600 Appraiser's Handbook Machinery Data

·LIVESTOCK DATA Contents·

Range Cattle

Carrying Capacity Animal Unit Data Conve~sion Charts

AUM's per Acre, etc. Forage to AUMS

Grain to AUMS Dairy Cattle

General Herd Data Feeding Requirements ..

Range

&

Beef Cattle Lambs

Hogs

Dairy Cows

Dairy Replacements

Poultry (with other data)

Page. 1 1 2 2 2 3 4 4 4 5 5 6

r.

( '

Federal ·Land Bank of Wichita 1

RANGE·CA'ITLE:DATA: Carrying.Capacity

Each appraiser should develop his own detailed information relative to carrying capacity and common operational practices in his appraisal districto This can best be accomplished by obtaining factual information from the ranchers them~ selves. The information given below is general in scope, hut will be a useful guide.

KANSAS AND OKLAHOMA RANOiES

Cow.and Calf Basis Open Bluestem Range Open·Short Grass Areas Crosstimber Areas

Eastern Timbered Hill Areas Bermuda

Acres per Head per Year 5 - 10: 5 - 10 10: - 15 12 - 25 2 n 4

MOUNTAIN·AREA OF COLORADO

&

NEW MEXICO

Irrigated meadow pasture Natural meadow pasture

Grass hay aftermath (irrigated) Alfalfa hay aftermath (irrigated) ·Grass or alfalfa hay aftermath (dry)

Grain stubble (irrigated) Grain stubble (dry)

Native range (summer) browse, grass, aspen Native range (spring-fall) browse, grass Native range (winter) browse, grass

Native range (spring-fall-winter) pinon-juniper Reseeded range (wheat grasses, etc.)

Acres per AUM 1/4 to l ,«'c re 1 to 2 acres 1 to· 2. acres 2 to 3, acres 4 to acres 4 to acres 5 to acres 2 to 6· acres 4 to 8 acres 5 to 12 acres 10 to acres 3 to acres ·COMPUTING ANIMAL UNITS

Cows

Heifers, 18-2 1/2 year

Calves (Weaning time to 18 mo.) Bulls 1.0 Animal Units .8 Animal Units .6 Animal Units 1. 25 Animal Units AUMs per·Acre L. 0 to 4 .. 0 1/2 ·to

r

1/2 to 1 1/3 to 1/2 · up to 1/4 up to 1/4 up to 1/5 1/6. to 1/2 1/8 to 1/4 1/2 to 1/5 . up to 1/10: up to 1/3

On a cow-calf basis the number of head will be 107% to 110% of Animal·Unit capacity. On a cow-calf-yearling basis the number of head will be approxi" mately 122%.to 125% of Animal Unit capacity. Normally on the cowncalf basis 15% to 20% of the herd will not be eligible to calf.

$

r4r4 z:. •. '

,.,J

5'"!)c/a1~ /~L /~

/,.:>-!:"

#-/d'.,.t .

j""

1/1

J.7!i#/~j

5

...

·n ..._

.•-1A

•

Federal Land Bank of Wichita

CARRYING·CAPACITYiCONVERSION:CHART:

Acres.per·cow AUM's Acres Number of head

'for~12•months. per:Acre. per .. AUM. per,;Section:

1 12~oo: 0. 083 640:~

a·:

3 4.0 o:. 25 213.0 6· 2.0 o·:.-5. 101.0. .9 1.33 0:.75 71.0 12 1.0 1.0 53.0

IS

0.8 1.25 43.0 18' 0.66 I; 5. 35.0 21 0 .·57 1.75 ·3o:.o 24

o::s

2. 0. 27.0 ·27 0 .·44 2.25 24.0. '30: 0.4. 2.5 21.0 33 0!. 36 2.75 19.0 36.

o:.

33 3. o: 18.0 39 o:. 31 3.25 16.0 42 o. 2 8 3.5 15.0 45 o:. 26. 3.75 14..0 48 0. 25 4.0 13.0 '51 o:.23 4. 25 12:5 54

o:.

22 4.5 12.0 '57

o:.

21 4. 7 5 11.5. 60

o:.

2

s.o

11.0 63 o:.19 5.·25 10!.'5 . 66 0.18 5.5 ro:.o 69 0.17 5.7 5 9.

s:

72 o:.16. 6.0 9. 0·

INFORMATION · FOR CONVERTING CRCPS. & ·.FORAGE· INTO: AUMS:

Hay & Forage

Native Prairie Hay

Native Mountain meadow hay

Hay, (Al(alfa, ·clover, grain hay, Kaffir

and milo and other sorghums)--·---Chaff, alfalfa and clover'(other than sweet)

C~rn fod~er, bean straw ·

Corn stover, grain straw and sweet clover chaff Silage (corn) Silage (Atlas·sorghum) ·Beet tops Grain· Wheat Corn (shelled) Corn (on cob) Rye Oats 'Barl.ey Millet Buckwheat Kaffir corn Milo ··Beans Potatoes

AUMs per· Ton 3 3.5 ----+4- /~/ t1,u.QJ. 2 2 1 2 1. 6. 2

AUMs per Bushel

. 30 • 28 .20 .28 .16 .24 .25 I 2 5 .28 .28/ .12 • 0~ 2

,,-

..

Federal :Land Bank of Wichita

DAIRY·CATTLE·DATA

·General Information on 24 Cow Dairy

Small commercial herds of 24 cows will have milk sales from about 22 head. The family and replacement calves will use the production from the other two head.

-~

Cows (2nd calf

&

older) Heifer (Freshening) 'Heifer (18 months)

Heifer Calves (6. months Bull Calves Bull No~· 20: 4 '5 5 1· 35 AU 20:.0 4.0 4.0 2.5 1 ~ 0. 31.5 Sales 4.0

o:.

2 5

o:.

5 4·.0 9.0 .0.25 18.

o:

Over 30% of the normal inventory of dairy herds is replacement stock and the production life of the average dairy cow is about 4~ years.

Death loss for herd as a whole is usually ·about 4%, being highest among the calves.

Federal Land Bank of Wichita

FEEDING REQUIREMENTS:

Range ; Ca t t 1 e:

Length of time and feed requirements vary greatly over the district depending upon climate, elevation, feed available and will need to be determined by typical practices within a specific area.

After·length of time and feeding requirements have been determined, the table for converting crops and forage into AUM' s can be used. If.no feed is produced the common practice is to feed protein supple~ ment at a rate ranging from lOP#· to '350#· per season per animal unit depending upon pas.ture conditions.

Bee f · Ca t t 1 e : Plan:.·

Deferred·

-·Be gin with 450#-calves

Dry lot - irrig. area ·Begin 30: day

warm-up period on beet tops Feed Consumed 40: bu. grain 3 T. Silage 350#· protein sup pl •. Grass

1/3 acre beet tops

1 1/4 tons ensilage 23 bu. _grain

60 0

#·

a 1 fa 1 £a

200#· mineral

&

cone.

Days Fed Gain

340: 600/f

1so:

300#

4

Creep Feeding

Calves··on range cows

8 bu. of grain fattening ration

(1/2 corn equivalent

variable SO#· addi.tional w t • to non - fed calf. .Lamb Feeding.' 65# initial·weight ·Hogs 1/3 oats

Bal. protein suppl.)

100#· grain

1/4 T. wet pulp. 1/4 T. beet tops 100'#· alfalfa

25#·

To produce a 200#· hog (including pro rata share used by sow and suckling pigs on pasture) Good Feeders Average Feeders 'Fattening Grain (Corn Equivalent) 13 ·bu. 15 bu. Supplement· 60#· 70/f

Requirements for lOOf gain on pasture beginning with 100# feeder. Fattening Grain

(Corn; Equivalent) Tankage Supplement:

Average Feeder 400#: 25/f

Average Feeder 350# SO#

/

I

Federal Land Bank of Wichita

Dairy Cows 16% Grain Ration Class of Dairy

_#

Mixed Farm·Cows

FEEDING REQUIREMENTS (con't) Feed Per.Full.Year. (20 to 25 Cow Dairies)

Feed

Mixed Pasture Costs

Tame Fair to (Grain

Hays Silage Good and

Ton Ton Month ·roughage)

·5

Net Value Above:

of Feed

.Milk Costs

l/

ISO#· B. F. 4000#(Gr. ·

c>

aoo: 2~ 6 to 7

s

73.oo: SllO.OP S37.·oo:.g;·nistrict

Fair Dairy Cows

250# ·B. F. 6500'#

Good Dairy Cows

350#· B. F. 9000# 1650: 2000' 1~ 2 6 110.00 11o:.oo 140. 00' 14o.oo: 325.00 215.00 Colo.& N.M. 260.00: 15o:.oo Kans.& Okla.

450:. 00 . 310:.

oo:

Colo. & N. M. 360:.00: 220.00: Kans.& Okla. !/Not to be confused with NetiFarm Income.

?J

Normally a fair quality and weight calf sold from this class of cow. Most of milk produced during pasture season.

Regardless of the amount of feed used, a dairy cow cannot be made to produce above her inherent capacity.

I

General rules for daily feeding of cows producing 3~% milk and weighing

approxi-mately 1100 lbs.

Roughage Grain Ration .. Milk

II:

Silage Alfalfa Hay Ratio .

25-30 1 to 3

20' ₃₀ 1 to 3~

10 30 12 1 to '3~ or '4

30 20 1 to'4

Good pasture as available may be substituted for hay, silage, and part of grain

ration. Hay and silage may be substituted for each other within reasonable limits

on a dry matter or "hay equivalent" basis. Good legume hay and silage will also

substitute to some extent for the grain ration. If prairie hay and lower quality

roughage is fed instead of hay, the grain ration must be increased to get the same production.· .Dairy Replacements Bull, mature Heifers (1 to 2)

·11

Calves to l's Mixed Grain

#

1000.-1200: 700-800 Joo:-4so:

Mixed Tame Hay Ton

2~

2

1

.y

Calf also requires BOO# whole milk or substitute.·

Pasture Months

6 6 :4

....

r .'

THE FEDERAL LAND BANK OF WICHITA AGENT 01" THE FEDERAL FARM MOATOAOE COR,.ORATION

NINTH FARM CRfDIT DISTRICT

JCANSAS -OKLAHOMA • COLORADO • NEW MEXICO WICHITA 1. KANSAS

September 19, 1962

MEMORANDUM TO: Holders of Appraiser's Handbooks

FROM Department of New Loans and Appraisals

SUBJECT: Livestock Data -- Guides for Inventory and Production

1. The attached five pages bearing numbers 5.50, 5.51, 5.52, 5.53 and 5.54 should be studied thoroughly and inserted in your Appraiser's Handbook immediately following page 5 under the "Livestock Data" tab. They are numbered to facilitate revision and expansion of the

Appraiser's Handbook now in process. The principle differences

in these guide sheets are in the calving percentage and death loss. Note that one is on ·a cow-calf-yearling basis, appropriate for

some areas in Colorado and New Mexico.

2. These worksheets were used to estimate inventory and production on

benchmarks which, as you kn,ow,_are to be followed in making appraisals. Care should be exercised.

to ..

av·oid using 85 or 90% calf crops where

historical averages prove otherwise. Only·outstanding properties

attracting excellent management will maintain such percentages. Follow the benchmarks in this respect.

3. The sheets are set up on the basis of 100 head fall count which for practical purposes conforms to the Jan. 1 inventory. The 100 head permits easy calculations and transpositions on a percentage basis. Please note that for every 100 head fall count there will be 145

to 170 head on the pasture during the spring and summer months. 4. Estimated gross income can be obtained merely by applying the proper

normal prices to the livestock to be sold as shown in the lower half of the sheets. "Thumb rules" can be developed to coincide with corresponding figures in benclunark farms and ranches.

5. Remember that these are only hypothetical operations which serve

Att.

as GUIDES for estimating a 10 to 15-year average. It is not likely

that a rancher will follow this exact procedure every year, but over a period of years his average may approach these.

f·~ ,., ,.,

"'

_Co.l:' ,.) ro- ·~ • t::- ;; _\..)

.

I~,.~. ... .,.~ ..;'..J .... ..:. ~C"''~ -/( ,., ~ ... I~ 1 V'l _(Steer~ v > ₍ ... I'J (HciferD 1'( u l3W..:..c L.

--lCO 1 sc·~, Calf Cl:'.S;:; ~~0. LOS!J Covs ·'·

_Cl

₁ ~...-. ( s--.:.•..!t2r.:l <:.I ;. I

T

- • r ...

·~e.:·"··-co

t.: ....

₁₅

B~:..: l; ~, ..., r .... ~...:u ₁ )0.::~

c;.U:·

Clr::.~::; ~!o. Lo~!:i Cov::; ,.,. _{83 1} (Steers V'l C) > (

-

,;, _(Heifers

₁₃

u Bul.ls l~. ~00 1

"'lnclude:ti bred hl'ifers

,.-. t';··i

: .. ··.,/P

FIRST OF YE.: .. ·~ _I!NE!·:TOHY

Breeds Yenrl:.r.g::>

-

Sells Calves

1%

Deo.th Lens

Crop

Rep'l Su.les Cluss

1G Cows ~·<

28

..., C) (Steers > ₍

-1'( 10 u ro (Heifers 1 1 Bulls

--18 55 Crcp Rt:;~) ' l Su.les Cln;.~~ 11~ Cow~ ·Jr 33 ..., C) (Steer~ > ₍ 15

17

u ro (Heifers 1 1 Bulle 16

65

Cro!)

ReJ2'1 Sules Class

12 Cows

*

38 Ill f'J (Steers > ( I'll

13

24 u _(Heifers 1 l BullG

-14

₇₅

-1-,..,:_, _·' Cnlf C:::·op : , {;

r···

·

.

..)

.

Lc:":-; :~·:·p '1 Sales 8o 1

₁₅

,30 16 ., ... < ....

14

4 1 1

--100 1 ... I ' .,

60

85/?

Ct.:.2.:· ..; .... - 1...· : ; No. Lc.~::· !'~t·~ ~~J ' l S~Lc:;

-82

1 13 35 lJt ' . ... , ₂₁ l t

...

₁

--lCO 1

,

.J. / ' I ₇₀

2c:r!

/j'J cr~l._::' c~· ····:-~·

!\or LoL :~ 1~<~P I l Sa:!.c !1

Bi+ 1 11

40

12 12

28

4 ..l. 1

-··· '"'-~~~ _~

•.

lit-~~.~

.

FIRST OF YEAR INVENTORY

/ ' ' . Breeds Yearlings - Sells Calves

6.

_{2'f, Death Loss}

707~ Calf Crop 75~ Calf Crop

Class No. Loss Rep'l Sa.les Class No. Loss ReE'l S~l·-·

Covrs

*

79

2

15

Cows* 80 2 14

V\

(Steers 28 Ill (Steers

30

Q) Q) > ₍ > ₍ ttl IV u (Heifers

17

17

10 u {Heifers 16 16

14

Bulls l+ l 1 B~s 4 1 1

-

-100 2

18

54

100 2 17

59

8o~ Calf Crop 85~ Calf Crop

Class No.

_-

Loss Rep'l Sales Class No. Loss Rep'l. Sales

Cows*

81

2 13 COWS* 82 2 12 Ill .II\ (Steers "I\, (Steers

33

Q)

35

~')( _> <#II.' 1\1 ( fV

~Heif'ers

14

14

u (Heifers

15

15

17 u _2l Bulls

4

1 1 Bulls 4 1 l

-

-

-100 2

16

64

100 2

15

69

90i

C a.lf Crop

95!

Calf Crop

Class

_-

No.

-

Loss Rep'l Sales Class No. Loss Rep'l Sales

Cows* 83 2 11 Cows*

84

2

10

~ (Steers

38

i

_~Steers

40

~

(

~

{Heifers

13

l3

24

.j

(Heifers

12 12

28

Bulls 4 1 l Bulls

4

1 '1

-

-·

-

I 100 2

14

74

100 2

13

79

j .,. r

*Includes bred heifers

f '

#•~·

'.3)'·

-2-·' ..

:<I.:~··::~·

...

FIRST OF YEAR D'NENTORY

.-I Breeds Yearlings - Sells Calves

.tl·

·6;.·

_3;,

_{Death Loss}

10cp Calf Crop

75%

Calf Crop

Class No. Loss Rep'l Sales Class No. Loss Rep'l Sales

Cows*

78

3

15

Cows*

₇₉

₃

14 ~ (Steers

28

~ (Steers

30

! (

~( ~(Heifers 18 18 ₉

_J

(Heifers

17

17

12 Bulls 4 1

1

'Bulls 4 1 ~ .!.. 100

₃

19

53

100

₃

18

₅₇

80~ Calf Crop 85~ Calf Crop

Class No. Loss Re~'l Sales Class No. Loss ReE'l SaJ.es

Covs*

80

₃

13

Cows*

81

₃

12

.~·-r

· (

~teers

32

~(Steers

₃₅

·~:7_;: (

_-(

~(Heifers

16

16

16

~(Heifers

15

15

19

Bulls 4 1

1

Bulls 4 1 1

-

-100

₃

17

62

lOO

3

16

67

90~ Cal.f Crop 95~ Calf Crop

Class No. Loss Re;2'l Sales Class No. Loss ReE'l Sales

Cows*

82

₃ 11 Cows* 83 3

10

""

~ (Steers

37

E

(Steers

40

-;;(

-(

u (Heifers

14

14

23

J

(Heifers

₁₃

13

26

Bulls 4 1 1

Bulls

4

1 1

-100

₃

15

72

100

3

14

77

*Includes bred heifers

-3-l ~ I ' ... F msT OF YEAR INVE!r!'ORY

Breeds Yearlings - Sells Calves ·

.··r·

_{.r.._ ·.}

4~ Death Loss

70'fo CoJ.f Crop 75~ Calf Crop

Class No.

-

Loss Rep'l Sales Class No. Loss Rep'l Sa.les

Cows*

77

3

15

Cows*

78

3

14

~

(Steers

27

. ~ (Steers 29

-

_I'D (

-

(

1

18

1'0 u (Heifers

19

8

u (Heifers 18 1

17

l l

Bulls

4

1 1 .Bulls 4. 1

-

,

100 4

19

51

100 4

18

₅₅

80~ Calf' Crop · 85~· Calf Crop

Class

_-

No. Loss Rep'l Sales Class No. Loss Rep'l Sales

Covs*

79

3

13

Cows* . 80 3 12 ~ (Steers

32

i

_~Steers

34

"""(

. I ·~· u (Heifers

17

1

16

14

~(Heifers 16 1 15 18 Bulls

4

1 l Bulls 4 1 j_

-100

4

17

6o 100 4

16

65

' ~·· I I

20~ Ca.l.f Crop

95cJ

Ca.l.f Crop

Class No.

_-

Los·s Rep'l Sales Class No.

_-

Loss Rep'l Sales

Cows*

81

₃

11 Cows* 82

₃

10

""

_~

_(Steers

~ ~Steers

37

39

14

~ ~Heifers

14

13

u (Heifers

15

1 21 l 25 Bulls

4

1 1 · Bulla 4 1 1

-100

4

15

70 100 4 14

75

*Includes bred heifers