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Valuing livestock assets

FRP
By
Diane Steyn
on 6/29/17, 11:40 AM 163 views
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Diane Steyn

--Diane Steyn--
Agrista (Pty) Ltd
http://www.agrista.com
2117
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--Diane Steyn--
Diane Steyn
On 6/29/17, 11:43 AM

Livestock can influence a financial plan in 3 ways

  • income earned from livestock sales

  • breeding stock valued as a movable asset

  • marketable stock valued as a current asset

Income from livestock sales

Refer to the Cash Flow Model sheet rows 7-37, columns A-P. The income from livestock sales is specified in terms of animal category, e.g. selling cattle weaners in July and August.

Livestock sales are specified in a livestock budget and are added to the FRP when a livestock budget is applied to a pasture asset.

Breeding stock

Refer to the Cash Flow Model sheet, the breeding herd composition is specified on rows 354-375, columns AI - AL.

Breeding stock can be added to the FRP in 2 different ways. We’ll use the Cattle and Sheep in the above example to demonstrate the different techniques.

Valuing the breeding stock from the herd budget

Breeding stock can be defined at the same time that the livestock budget is applied to the pasture asset. In this example a cattle budget for a herd size of 220 cows is applied to the natural grazing asset in the Define Enterprises tool.


After applying the livestock budget to the pasture asset:

  1. Use the Commodity drop down list to add Bulls and Cows to the display

  2. Enter the Stock units and value

  3. Set the Sales to 0

  4. Click Save

Go to the Asset & Liabilities tab and select Breeding Stock from the Assets table. You should be able to see the Bulls and Cows you have just added:

The moveable assets that are generated by this method remain unchanged for the duration of the FRP, i.e. the breeding stock assets are not removed when the budget reaches it’s end point. Thus, if another livestock budget is applied at a later point in the FRP, the breeding stock does not need to be defined again. The Stock values in the second budget should be set to 0 so that the breeding assets are not duplicated:


Adding breeding stock with the Add Asset tool

Another way to capture the value of breeding stock is to use the Add Asset tool to create a new moveable asset.


  1. Select Add Asset from the Toolbox

  2. Select the Type as Movable

  3. Select the Category as Breeding Stock

  4. As you type in the Classification field a list of matching livestock types will appear

  5. Select a classification from the list and the model will update to reflect a livestock asset form. If your livestock type is missing from the list, continue to manually type the classification and proceed as normal.

  6. Add a value

  7. Click Save

Go to the Asset & Liabilities tab and select Breeding Stock from the Assets table. You should be able to see the Rams and Ewes you have just added:

The breeding stock captured by this method can be edited to indicate herd changes through buying and selling animals. For more information see the help section on buying and selling assets.

Marketable stock

Refer to the Cash Flow Model sheet, the marketable livestock is specified on rows 377-412, columns AI - AL.


To capture the value of marketable stock use the Add Asset tool to create a new current asset.


  1. Select Add Asset from the Toolbox

  2. Select the Type as Current

  3. Select the Category as Marketable Stock

  4. You can add a description to differentiate between different types of marketable stock

  5. Add a value

  6. Click Save


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Asked: 6/29/17, 11:40 AM
Seen: 163 times
Last updated: 7/7/17, 10:04 AM