47090486-4Evaluating your Farm Business: Farm Business Analysis & Decision Making
Course Information
Description
This course builds on course 47090481-1, 47090481-2, and 47090481-3 by looking at using year-to-year financial records for analysis of your farm business and to assist in decision making.  This course requires at least one year of operation under a complete business plan.  Students will look at their previous year plan and prepare for the next year.  They will update their plan and financial ratios and investigate how having maintaining year-to-year record keeping systems improves the decision making process and financial viability of your farm.  
Total Credits
Course Competencies
  1. Complete annual business year narrative
    Criteria
    Narrative includes summary of business year regarding production, cost of goods and services, and debt and investment structure

  2. Evaluate goal progress
    Criteria
    Analysis identifies personal goals achieved
    Analysis identifies business goals achieved
    Study defines foal revision if necessary

  3. Evaluate farm business accounting/record system
    Criteria
    Report details ease/difficulty of data entry
    Study identifies accuracy of reports, etc
    Study identifies ease and accuracy of tax reporting
    Evaluate reports available for management of the farm business

  4. Complete current year farm business analysis
    Criteria
    Analysis includes calculating of farm business performance ratios and standard measures
    Own farm business performance measures are compared to accepted norms
    Own farm business performance measures are compared to like operations (benchmark report produced)

  5. Adjust next years business plan to improve success of the farm business
    Criteria
    Plan includes revised projected ending net worth statement
    Plan includes revised income statement
    Plan includes revised statement of cash flows
    Plan includes revised monthly whole farm cash flow budget
    Plan put forth that utilizes conducted business analysis to improve business liquidity, solvency, profitability, and financial efficiency

This Outline is under development.