The Food and Agricultural Policy Research Institute (FAPRI) at the
University of Missouri has developed an online tool to help farmers build
projected budgets for their operations. The Farm Cost and Return Tool, or Farm CART, is at www.fapri.missouri.edu/projects.
“The tool allows beginning farmers and ranchers, not only in
Missouri but all over the country, to play a what-if game on the Web,” said
FAPRI economist Peter Zimmel. “They can develop a farm with how many acres they
want, how many animals they want, and they can see what it will look like
financially over the next five years.”
Farm CART was funded by a Beginning Farmer and Rancher Development
Grant from USDA’s National Institute of Food and Agriculture. The USDA
Beginning Farmer and Rancher project was started because the age of the average
farmer is increasing and the number of farmers is decreasing. USDA is looking
for ways to educate people who may want to start farming in the future, Zimmel
said.
FAPRI developed Farm CART to help producers who are either
thinking about farming or are looking to grow their operation, but Zimmel says
the tool can benefit anyone who wants help making better-informed agricultural
finance decisions.
“With the risk that is involved in agriculture, you really need to
plan for the future,” Zimmel said. “What’s the future look like for your
farming operation? Is it feasible to continue to farm the way you’re farming?”
Farm CART uses the baseline projections that FAPRI produces every
year. The tool can provide budgets based on a selected location but can also be
customized to a specific operation.
“One of the strengths of this tool is that producers can say they
want to make a farm that looks like X, Y and Z, and see how that looks
financially,” Zimmel said. “But then they can go back and add soybeans and see
what the difference is financially. Is it a positive or a negative? Then they
can go back and make a better-informed decision if they should grow their farm
that way.”
Zimmel says a lot of effort went into making Farm CART easy to
use. He says there is very little information that producers have to enter
before they can play those what-if games. Information from the FAPRI baseline
as well as the USDA is programmed in, so all that is needed is the number of
acres or animals.
“All the information we start them with, all the costs for seed,
fertilizer or chemicals, is there,” Zimmel said. “But if they want to they can
customize that to their specific operation and change every number in there.”
The Farm CART is free to use and there is no sign-up or
registration required. Zimmel says all you have to do is select the state and
county and you are ready to go.
“There aren’t many tools with the ability to project out five
years, especially in a Web-based tool with all the information from FAPRI and
USDA,” Zimmel said. “One of the big benefits of Farm CART for a producer who is
either getting ready to start farming or wants to make a change to their operation,
they can look at it before actually going out there and spending the money to
try and do it.”
Peter can be reached at zimmelp@missouri.edu.
(by Jason Vance, MU Senior Information Specialist)