1. Transferring Existing Projects to FFA AKA: Picking up the blue and gold and losing the green hat…JK

2. Let’s pretend…its Jan of 2012 and this is your 4H project you want to transfer into FFA You own three ewes you purchased from a sale in 2009 for $500 each You bred those ewes to lamb in 2010, 2011, and they are due to lamb in March of 2012. You have kept three ewe lambs you raised, one in 2010 (#03), and two in 2011(#12 & 14), value $400 and $300 each for 12 & 14. You have 3 hay feeders (value $200 ea) and 2 grain troughs (value $150 ea) given to you in 2009. You have three ton of hay in the barn, value of $600.

3. What the poop do you do now? Let us take one item at a time… You own three ewes you purchased from a sale in 2009 for $500 each –All purchased breeding animals are listed in the depreciable property inventory as a beginning balance. –The purchase date would be the original date the item was purchased by you, not the date you transferred into FFA. –Page 10, Non-Current/Capital depreciable inventory (Depreciable property inventory)

4. Notice the description is listed, the date of the original purchase is too, along with the cost. However, in column 5 the book value beginning of year is the value of the animal as of January 2012. Not the value when the animal was purchased. For example a $500 ewe that is to be depreciated for five years, would be depreciated $50 the first year (half 10%) and $100 the years after (full 20%) so the ewe has a beginning book value of $250. The same applies to the feeders and troughs.

5. Next up…breeding livestock YOU raised from your ewes. Raised breeding livestock (animals born and raised from your own breeding livestock) are entered in the Non-current, capital non-depreciable inventory, page 9. You establish the value of raised livestock based on what it would cost to replace those ewes, realistically. Be honest.

6. This is how ya do it! Enter them at the beginning of 2012

7. One more part to get recorded You have 3 ton of hay valued at $200 per ton (remember that is 2000 pounds each) Normally this would be recorded in the journal, right? Right! Not this time, because you bought this originally in your 4H project. Never list market animals, feed, or other consumable items in the journal as an expense when transferred. These would be listed under current operating inventory, beginning of year, page 8. This entry will account for the expenses of these items.

8. Remember, page 8, beginning of the year for consumables

9. Now what about those gifts… Gifts or inheritances that are related to your project, received prior to joining FFA, should be treated as expenses. A gift of a ewe or sow or cow would be entered just like you entered the ewes purchased in 2009. Remember, don’t look a gift horse in the mouth, just record the cost of the critter in your record book.

10. Gifts…are recorded because nothing is life is free A gift that is received is listed as an expense, while a gift that a student gives to someone else is listed as income. For example, a gift of a feeder pig for a market swine enterprise from the grandparents is recorded as an expense. A value must be determined, typically whatever the market price would have been. A gift from the student to his brother, of bedding plants, is recorded as income. The value should be what the student would have charged their customers or what a local nursery would have charged the brother. Another example would be the vegetables given to the parents from a student’s vegetable garden. These should be listed as income to the vegetable enterprise. If the gift is a depreciable asset, be sure to include it in the Non- Current/Capital Depreciable Inventory and do not include it in the journal. On the Inventory page indicate that it was a gift when you record it at the year’s end.

11. Practice I bought a heifer in 2010 for $1000, she has a depreciation life of 5 years, and I am now entering her in my FFA record book on January 1, 2012. First, 1000/5 = 200 Then the first year depreciation is only 50% which equals $100, so the first year her depreciation is 100 and her value is $900. Second year, 200, so now her value is $700. What value do I use to start my record book? –$700 with an expected depreciation of $200 for 2012

12. Let’s review Repeat after me… What page does purchased breeding livestock or equipment get recorded? What value do you give a purchased ewe in 2010 that you bought for $100? What page does raised livestock get recorded? What section is this called? And finally where does the value of property for resale get recorded?

13. Click it or ticket… Prepare your exit ticket and answer the following by indicating which part of the record book the following items would be recorded. –1. Breeding sheep that are purchased –2. Hay and grain –3. Raised livestock –4. Trimming stand and ally panals