AgWest Commodities LLC

Cash Flow Analysis Calculator
Click to Download: AgWest Cash Flow Analysis Calculator
AgWest Commodities’ “Cost Analysis Calculator” is a simple straight forward yet very effective tool to assist in base lining your operation’s financial exposure toward input and opportunity costs. As a producer you realize that every cost within your operation must yield an equal or greater return to remain financially sound. Here’s a tool designed to specifically help and monitor this daunting task.

AgWest’s approach to marketing centers on the core concept of profitability and capturing opportunity when presented. By using both option structures for downside risk and forward sales techniques for pricing opportunities, one thing remains the same, a core “Cost” must be known for each operation. Knowing an accurate cost will help you make sound business decisions on pricing opportunities. It all starts with a “Cost Analysis” of your operation which includes all aspects of your operation including living costs and opportunity costs.

In a nut shell, how does anyone know what pricing opportunities exist without knowing the total costs. Selling $4.00 corn might be profitable for some operations yet losing money for others. Profitable price levels for one operation could be significantly different for other operations. Knowing a true cost is again the beginning to successful and profitability based marketing.

Please use the attached “Cost Analysis Calculator” at will to begin your operations first step in recognizing both price risk and opportunity. Also included in the bottom portion of the calculator is a “Profitability Tool” to gauge your operations production and price variables. The “Profitability Tool” also determines a true Return on Investment (ROI) to help with difficult crop choice decisions.

Below is a link to our how-to video that will help you use the spreadsheet and how to input numbers.
https://vimeo.com/363345729
Password: agwest