This web page contains a live and functional spreadsheet created with
Spreadsheet for calculating the maximum investment amount
The simulated difference in annual Gross Margin between the scenario and the standard (simulation years 6-10). This value can be found in your SimHerd report.
Difference in Gross Margin between scenario and standard (GM)
The difference in number of cow-years in the scenario compared to the standard.
With extra cows come extra costs (in addition to feeding costs which have been included in Gross Margin) like labor and energy costs. See below.
cows in the scenario compared to the standard
Extra costs per cow-year for labor (€500), energy (€140) and maintenance (€130) and other costs (€130). Source: Business Check Cattle 2012 (Danish Cattle Federation).
Extra marginal capital costs per cow-year *
Other costs that increase (enter a positive figure) or decrease (negative figure). Other costs are e.g. service costs of an automatic milking system or costs of having heifers in a pension.
Change in other annual costs
Change in annual costs, total (C)
Increase in annual Gross Margin minus the change in annual costs. This amount is available for financing the investment.
Disposable amount for depreciation and payment of interest (GM-C)
This is the number of years used to calculate the annual depreciation of the investment.
Productive life of the investment
Interest rate used to calculate the annual payment of interest.
Percentage of the investment amount that is used to insure and maintain the investment. Typically between 0 and 5%; depends on the type of investment.
Insurance and maintenance of the investment
The amount (or the price) of the investment must not exceed the amount shown in this cell.
This is the maximum amount that can be invested, given the productive life, interest, insurance and maintenance rate of the investment and the disposable amount for depreciation and payment of interest.
Study the sensitivity of this amount for different assumptions on productive life and interest rate.
Maximum investment amount
* Approximate amount which is not representative for all herds and for all situations of herd expansions.
** The sheet uses €, but you can use it for any currency. When entering US$-values in the sheet, the unit of the result is also $
Interpretation of this sheet
: with an increase in annual Gross Margin of
an investment can be financed and depreciated, if the investment amount is below
SimHerd A/S can't be held accountable for the way the SimHerd model and this spreadsheet is used.