1. Divide and Conquer Allocations
Farm Ranch Business Management

2. Introduction

3. Tractor Example

4. Different Approaches
Hours used.
Acres used.

5. Time Approach What is your allocation period?
List expenses related to input (tractor).
Determine the amount of time the input will be use per enterprise.
Calculate the costs of running the equipment for an hour and then for the enterprise.

6. Acreage Approach
Calculate the cost of running the tractor across one acre.
Multiple the number of acres x the expense of running the tractor per enterprise.

7. Output of One Enterprise Input for Another Enterprise
Use current market value of output for input.

8. Difficult Allocation
Called “Unallocated” and added to the whole-farm analysis.

9. e-Moment Almanac/Encyclopedia Moment