47090481Operating the Farm Business: Understanding the Farm Business
Course Information
Description
This set of courses will lead students down the path of developing a business plan for their farm business. Students then learn methods for using the plan to evaluate their farms financial viability and assist in decision making.
Total Credits
1
Course Competencies
  1. 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

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

This Outline is under development.