10090381Agriculture Business Management
Course Information
Description
Develop a business plan, set short and long term goals, identify alternatives for reaching goals, and determine strategies and tools to monitor success. Organize and maintain farm business records and interpret and analyze the records to make sound farm management decisions.
Total Credits
3
Course Competencies
  1. Define your land ethic
    Assessment Strategies
    Written Product
    Criteria
    Use Aldo Leopold’s vision for land ethic
    Demonstrate the connection to your business plan
    Develop your land ethic in connection with the principles of sustainable agriculture
    Explain how you demonstrate your land ethic in your farm management

  2. Differentiate the farm business from other businesses.
    Assessment Strategies
    Written product
    Criteria
    Relate impact of weather to the farm business
    Describe how the supply and demand process impacts a farm business
    Determine correct market or markets for a farm product
    Identify the value of owner time and labor in farm business
    Evaluate factors impacting capital expenses (such as land, buildings)
    Prioritize time around duties of a farm including financial management
    Determine business responsibilities and assistance available from federal, state and local agencies (licensing, tax implications, zoning)

  3. Create a vision for a farm business.
    Assessment Strategies
    Written product- Mission statement and goals
    Criteria
    Explain the purpose and characteristics of an executive summary in business planning
    Identify personal/individual family farm goals
    Mission statement defines your business
    Mission statement is short enough to be remembered
    Farm goals are realized and measurable
    Goals are prioritized and complimentary to the mission statement

  4. Analyze components of a farm business.
    Assessment Strategies
    Written product- Farm business description
    Criteria
    Identify the location of a farm business; include map
    Describe the ownership and legal structure
    Describe the history, highlighting important events and changes in size, sales and profitability
    Describe the top challenges of a farm business in the last five years
    Describe the size, type and condition of farm facilities and equipment
    Identify the crops, livestock, or other products of a farm business
    Identify the number of acres owned and/or rented and size of facilities
    Specify the number of head of livestock, if applicable
    Describe the workers: you, family members, or hired labor
    You fulfill minimum requirements in AgPlan-Business Description

  5. Evaluate farm operations.
    Assessment Strategies
    Written product or graphic illustration
    Criteria
    Identify primary products of a farm
    Identify primary services of a farm, if applicable
    Specify how products of a farm business are produced and how much is produced
    Identify the farm's inventory management process
    Describe the farm's quality control process
    Summarize the customer service chain of command
    Describe how the farm complies with regulations and obtains permits
    You fulfill minimum requirements of AgPlan-Operations

  6. Apply marketing principles to a farm business.
    Assessment Strategies
    Written product- Farm Business Plan
    Criteria
    Identify current and projected consumer demand for a farm product or service
    Describe how trends in demographics, technology, labor, food consumption, and safety contribute to the growth or shrinkage of demand for a farm product
    Examine global influences on the demand for farm product
    Describe where farm products are sold
    Identify important potential markets for a farm product
    Describe how contracts with processors, other producers, value-added ventures, or retail markets affect production
    Calculate gross revenue derived from contract production
    Calculate amount of pre-harvest product and post-harvest store
    Identify key strategic partners or alliances
    You fulfill minimum requirements in AgPlan-Marketing Plan

  7. Conduct a farm business competition analysis.
    Assessment Strategies
    Written product- Farm Business Plan
    Criteria
    Identify business competitors
    Describe how a product compares to competitor's product
    Compare production costs for a product and a competitor's product
    Compare level of market access for a product and a competitor's product
    Identify market strengths for a farm product
    You fulfill minimum requirements in AgPlan-Marketing Plan

  8. Build a personnel plan for a farm business.
    Assessment Strategies
    Written product and/or chart- Farm Business Plan and Personnel Plan
    Criteria
    List the members of a farm management team with their qualifications and roles
    Identify major management functions needed for farm business success
    Identify any management gaps
    Describe how a board of directors functions and oversees the management, if applicable
    Describe how an advisory board functions and oversees the management, if applicable
    Chart the major tasks (operations, marketing, financial) and identify who is responsible for each task and how many employees work in each area
    Identify any new positions or functions and hiring strategies to fill the positions
    Describe the process used to create and manage job descriptions, compensation plans, incentive plans, employee handbooks, and training procedures
    Assess the need for hired services or consultants; make recommendations
    You fulfill minimum requirements in AgPlan-Marketing Plan and Organization

  9. Evaluate the solvency and liquidity of a farm business.
    Assessment Strategies
    Written product- Farm Business Plan and balance sheet
    Criteria
    Balance sheet documents how funds are invested in the business
    Balance sheet document financing methods (liabilities and owner equality)
    Balance sheet documents the net worth to debt to asset ratio
    Balance sheet documents liquid assets, cash reserves and operating loans (including pay off)
    Describe the change in net worth in the past 3-5 years, if applicable
    You fulfill minimum requirements in AgPlan- Financial Plan
    You use FINPACK agricultural financial software or a balance sheet template

  10. Predict the financial position of a farm business.
    Assessment Strategies
    Written product- Farm Business Plan
    Criteria
    Document key financial production measures from the past 3 to 5 years
    Show trends for yields, production levels, net farm income, and other measures from the past 3 to 5 years
    Summarize an income statement and net farm income
    Describe the rate of return on assets
    Explain reasons for financial changes over time
    Predict adjustments to make in the future to prevent negative consequences
    Develop a projected cash flow
    Develop a projected income statement
    Develop a projected balance sheet
    Create monthly cash flow budget
    Create enterprise budgets for each farm enterprise (crops, animals, feed, services)
    Describe how capital assets are acquired and managed (purchase, lease, hire, rent)
    Match machinery line to size of the farm business
    Address the impact of off-farm assets, such as retirement and other investments, if applicable
    Compare a farm business performance to a similar business (benchmarking)
    You access agricultural benchmarking data such as the FINBIN database www.finbin.umn.edu.
    You fulfill minimum requirements in AgPlan-Financial Plan
    You use FINPACK agricultural financial software or a balance sheet template