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Investigate special characteristics of farm businesses
Criteria
Learner identifies farm business unique impacters
Weather
Supply/demand
Commodity or value added markets
Owner management and labor
Capital substitution for labor
“Time” for financial management
Owner=manager=laborer
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Evaluate “Holism Theory”
Criteria
Component of self
Component of family
Component of community
Component of business performance
Component of environment
Strategy for inclusion of all components in farm business plan
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Investigate local agencies that assist farm businesses
Criteria
Learner assesses the use of local government agencies that assist farm business development
Learner assesses the use of private consultants that assist farm business development
Learner assesses the use of federal government agencies that assist farm business development
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Determine Farm Business Plan Components
Criteria
Learner identifies basic parts of a farm business plan
Learner recognizes importance of farm business plan to success of business
Learner appreciated value of planning before business start-up
Learner values updating a farm business plan over time
Learner values outside input in planning process
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Determine personal and family goals
Criteria
Learner identifies a minimum of eight personal/family goals
Goals are realistic
Goals are measurable and observable
Goals are compatible and complimentary
Goals are accepted by all family members
Goals are prioritized
Strategies are identified for review and revision of goals
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Investigate for business opportunities
Criteria
Learner identifies business opportunity options
Investigation includes:
Technological needs
Implementation costs
Market trends
Potential profitability
Option selected matches goals and status of the learner
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Overview and writing a farm business mission statement
Criteria
Mission statement is simple and clear
Mission statement is short enough to be remembered
Mission statement is related to the vision of the organization
Mission statement identifies the expectations of the customers
Mission statement is developed using input from management, employees, and customers
Mission statement reflects goals and objectives
Strategies are identified for review and revision of mission statement
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Select farm business organizational structure
Criteria
Learner investigates the advantages and disadvantages among sole proprietorships, partnership, corporations, cooperatives
Selection considers the tax implication of the different organizational structures
Selection considers the state and federal regulations that govern the various organizational structures
Selection considers the accounting requirements of the organizational structures
Selection considers liability
Selection considers management compensation
Selection is approved by all family members
Selection is approved by financial advisors
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Set farm business goals
Criteria
Goals are compatible with personal and family goals
Goals align with farm business mission and objectives
Goals are measureable and observable
Goals are realistic
Goals are compatible and complimentary
Goals include timeline
Strategies are in place to review and revise goals
Goals satisfy holistic approach
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Evaluate farm business financial record systems
Criteria
Learner identifies current income/expense record keeping systems
Learner compares strengths and weaknesses of various systems and software
Learner selects record system that best meets tax, creditor and business management needs
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Identify critical farm business financial reports
Criteria
Learner identifies Net Worth Statement and its importance in the business
Learner identifies Income Statement and its importance to the business
Learner identifies Statement of Cash Flows and its importance in the business
Learner identifies Statement of Owner Equity and its importance to the business
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Organization of the Farm Business Plan
Criteria
Leaner assesses plan components
Learner creates introductory plan information on AG PLAN website for farm business plan
Learner identifies order and example farm business plan components on AG PLAN website