47090481-2Operating the Farm Business: Developing a Farm Business Plan
Course Information
Description
This course will teach students how to develop business plan for their farming operation.  Students will be introduced to the components of good business plan including a narrative of their operation, the Balance Sheet, Accrual Income Statement, and the Statement of Cash Flow.  Students will see how these tools are used to understand a farm businesses financial position through understanding the financial measures of Liquidity, Solvency, and Profitability.  Finally, students will develop each of these records for their farm and have an introduction to using financial ratios to evaluate their financial position.  
Total Credits
Course Competencies
  1. Outline Net Worth Statement based on case example
    Criteria
    Learner identifies current assets
    Learner identifies intermediate assets
    Learner identifies long term assets
    Learner identifies current liabilities
    Learner identifies intermediate liabilities
    Learner identifies long term liabilities
    Leaner distinguishes cost vs market value Net Worth Statements

  2. Create New Worth Statements (Current and for Business Plan)
    Criteria
    Learner calculates personal Net Worth
    Learner calculates business plan net worth statement
    Learner calculates liquidity position
    Learner calculates solvency position

  3. Outline Business Income Statement based on case example
    Criteria
    Learner identifies statement format including:
    Cash income
    Non-cash income
    Cash expense
    Non-cash expense
    Learner describes contents of each income or expense category
    Learner identifies accrual adjustments to income and expense
    Learner calculates profit

  4. Create Income Statement Farm Business Plan
    Criteria
    Leaner creates pro forma income statement for farm business plan

  5. Outline Statement of Cash Flows based on Case for Example
    Criteria
    Learner identifies statement format based on:
    Beginning cash balance
    Cash inflows
    Cash outflows
    Cash from capital sales or purchases
    Operating loan payments
    Intermediate loan payments
    Long term loan payments
    Off farm income
    Family living draw
    Leaner calculates ending annual cash balance

  6. Create Statement of Cash Flows for Farm Business Financial Plan
    Criteria
    Learner calculates pro forma statement of cash flows for farm business financial plan

  7. Outline Quarterly/Monthly Cash Flow Projections based on Case Farm Example
    Criteria
    Learner identifies format of monthly cash flow projection budgets
    Learner determines advantages and pitfalls of monthly cash flow projections

This Outline is under development.