1. Session 5 – Making it Happen

2. Session 5: Part I – Financial Analysis III (Scorecard)

3. Program-at-a-glance Advanced Farm Management Program Schedule 2014/15 - An Overview DAY 1DAY 2DAY 3DAY 4DAY 5 9:00am to 9:30am Course Introduction Risk Management Review & MAP Update Review & MAP UpdateReview & MAP update Financial Analysis III (Scorecard) 9:30am to 10:00am Business Planning and MAP Introduction Financial Analysis I (Business Structure, Financial Statements, Taxation) Financial Analysis II (Ratios & Operating Efficiency) 10:00am to 10:30am 10:30am to 11:00am Case Study SWOT Personal Leadership (Kolbe A) 11:00am to 11:30am Branding & Marketing Your Farm 11:30am to 12:00pm 12:00pm to 12:30pm Lunch Break 12:30pm to 1:00pm 1:00pm to 1:30pm Risk ManagementMobile Technology Human Resources Commodity Marketing MAP Continued 1:30pm to 2:00pm 2:00pm to 2:30pm Farm Business Vision & Strategic Direction Core Values & Beliefs 2:30pm to 3:00pm Case Study & Wrap-up 3:00pm to 3:30pm Building Your Management Team 3:30pm to 4:00pm Kolbe A PreparationManagement Action PlanCompletion

4. Course Flow

5. Remember the Rules of Engagement Class participation Work assignments Build your Management Action Plan (MAP) Instructor feedback/coaching

6. Session 4 Review Two components of any business:  Operations?  Capital? Funding of business growth  Debt  Equity  Profits Operating Efficiency: How much does it cost to produce $1.00 of revenue?

7. Session 4 Review Liquidity  Working capital  Working capital ratio  Debt structure ratio Solvency  Debt to equity (leverage)  Equity ratio  Debt servicing ratio

8. Session 4 Review EBITDA Update your MAP

9. Session 4 Review Commodity Marketing –Planning Your Marketing –Technical Analysis –Hedging Future, Options

10. Session 5 Agenda 9:00amReview 9:30amFinancial Analysis III – Keeping Your Financial Score Expansion and Lending Requirements Review of Your Own MAP (Session 4) Collateral and Condition Letters 11:00 Branding & Marketing your Farm 12:00pmLUNCH 1:00pmUpdate Your MAP 3:45pmSession 5 Evaluation Form 4:00pmADJOURN

11. "To create wealth for our clients by building better businesses"

12. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

13. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

14. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

15. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

16. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

17. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

18. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

19. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

20. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

21. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

22. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

23. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

24. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

25. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

26. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

27. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

28. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

29. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

30. Operating Efficiency Exercise 1.6 Adjusted revenue: Revenue$ 2,174,561 Add: Closing inventory 882,419 Less: Opening inventory (1,333,607) Adjusted revenue (A)$ 1,723,373 Operating expenses: Cost of production$ 2,245,492 Less:Opening inventory (1,333,607) Short-term interest (11,881) Rent (149,300) Leases (8,000) Other – to normalize( ) Plus:Administrative expenses 574,985 Less:Amortization (368,625) Long-term interest (119,000) Management wages (7,000) Other – to normalize( ) Other – to normalize( ) Adjusted expenses (B)$ 823,064 Operating efficiency(B)(A) x 100 47.75% Use appendix E

31. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

32. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

33. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

34. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

35. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

36. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

37. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

38. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

39. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

40. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

41. Calculating Pellegrino EBITDA Income before taxes$236,503 Add: Amortization368,625 Interest – long-term119,000 – short-term11,881 Rents149,300 Leases8,000 Family wages7,000 EBITDA900,309 Less family living (123,293) Available for debt servicing$777,016 Use appendices C and E

42. Calculating Pellegrino Debt Servicing Ratio Available for debt servicing$ 770,016 (A) Less: Principal (current portion)$264,396 Interest – Short-term11,881 – Long-term 119,000 Rent – arms length149,300 Lease8,000552,577 Surplus$ 224,439(B) Debt servicing ratio1.39 How many dollars of surplus are available to service commitments? Appendices C and E

43. Calculating Pellegrino Debt Servicing Ratio Available for debt servicing$ 777,016 (A) Less: Principal (current portion)$264,396 Interest – Short-term11,881 – Long-term 119,000 Rent – arms length149,300 Lease8,000552,577 Surplus$ 224,439(B) Debt servicing ratio1.39 How many dollars of surplus are available to service commitments? Appendices C and E

44. Calculating Pellegrino Debt Servicing Ratio Available for debt servicing$ 777,016 (A) Less: Principal (current portion)$264,396 Interest – Short-term11,881 – Long-term 119,000 Rent – arms length149,300 Lease8,000552,577 Surplus$ 224,439(B) Debt servicing ratio1.39 How many dollars of surplus are available to service commitments? Appendices C and E

45. Calculating Pellegrino Debt Servicing Ratio Available for debt servicing$ 777,016 (A) Less: Principal (current portion)$264,396 Interest – Short-term11,881 – Long-term 119,000 Rent – arms length149,300 Lease8,000552,577 Surplus$ 224,439(B) Debt servicing ratio1.39 How many dollars of surplus are available to service commitments? Appendices C and E

46. Calculating Pellegrino Debt Servicing Ratio Available for debt servicing$ 777,016 (A) Less: Principal (current portion)$264,396 Interest – Short-term11,881 – Long-term 119,000 Rent – arms length149,300 Lease8,000552,577 Surplus$ 224,439(B) Debt servicing ratio1.39 How many dollars of surplus are available to service commitments? Appendices C and E

47. Calculating Pellegrino Debt Servicing Ratio Available for debt servicing$ 777,016 (A) Less: Principal (current portion)$264,396 Interest – Short-term11,881 – Long-term 119,000 Rent – arms length149,300 Lease8,000552,577 Surplus$ 224,439(B) Debt servicing ratio1.39 How many dollars of surplus are available to service commitments? Appendices C and E

48. Calculating Pellegrino Debt Servicing Ratio Available for debt servicing$ 777,016 (A) Less: Principal (current portion)$264,396 Interest – Short-term11,881 – Long-term 119,000 Rent – arms length149,300 Lease8,000552,577 Surplus$ 224,439(B) Debt servicing ratio1.39 How many dollars of surplus are available to service commitments? Appendices C and E

49. Calculating Pellegrino Debt Servicing Ratio Available for debt servicing$ 777,016 (A) Less: Principal (current portion)$264,396 Interest – Short-term11,881 – Long-term 119,000 Rent – arms length149,300 Lease8,000552,577 Surplus$ 224,439(B) Debt servicing ratio1.39 How many dollars of surplus are available to service commitments? Appendices C and E

50. Calculating Pellegrino Debt Servicing Ratio Available for debt servicing$ 777,016 (A) Less: Principal (current portion)$264,396 Interest – Short-term11,881 – Long-term 119,000 Rent – arms length149,300 Lease8,000552,577 Surplus$ 224,439(B) Debt servicing ratio1.39 How many dollars of surplus are available to service commitments? Appendices C and E

51. Financial Performance Analysis Surplus - $900,309

52. Exercise 5.1 Determine how an expansion might affect the viability of Pellegrino Farms Inc.

53. Pellegrino Farms Inc. Brennan’s will invest $4,700,000 million in a broiler operation 100% financed Cash flow will increase $205,530 per year Refer to the case study Refer to the amortization tables

54. Pellegrino Farms Inc. Exercise 5.1 What impact will there be on the debt structure ratio? ExistingAdjustmentRevised Current liabilities$$$ Total liabilities$$$ Ratio % % Use exercise 4.4 answers from session #4.

55. Pellegrino Farms Inc. Exercise 5.1 – Answer Key What impact will there be on the debt structure ratio? ExistingAdjustmentRevised Current liabilities$ 383,806$ 212,277$ 596,083 Total liabilities$ 2,696,009$ 4,700,000$ 7,396,009 Ratio 14.2% 8.06% Exclude due to shareholder

56. Pellegrino Farms Inc. Exercise 5.2 What impact will it have on the company’s working capital and working capital ratio? ExistingAdjustmentRevised Current assets$$$ Current liabilities Working capital$ $ Working capital ratio$$ Use exercise 4.2 from session #4.

57. Pellegrino Farms Inc. Exercise 5.2 – Answer Key What impact will it have on the company’s working capital and working capital ratio? ExistingAdjustmentRevised Current assets$ 1,168,269$ -$ 1,168,269 Current liabilities 383,806 212,277 596,083 Working capital$ 784,463$ 572,186 Working capital ratio$ 3.04$ 1.96

58. Pellegrino Farms Inc. Exercise 5.3 What effect will there be on the debt servicing ratio? CurrentAdjustmentRevised Debt servicing capacity$$$ Principal, interest, rent, lease Surplus$$$ Ratio % % Use exercise 4.7 from session #4

59. Pellegrino Farms Inc. Exercise 5.3 – Answer Key What effect will there be on the debt servicing ratio? CurrentAdjustmentRevised Debt servicing capacity$ 777,016$ 208,644$ 978,660 Principal, interest, rent, lease (552,577) (395,134) (947,711) Surplus$ 224,439$ (194,572)$ 30,949 Ratio 1.39% 1.03%

60. Pellegrino Farms Inc. Expansion What other set of factors should be considered by Richard and Jane? How does it tie back to Pellegrino’s vision and mission? Does it fit their SWOT?

61. The Six C’s of Credit What are they?

62. Lenders’ Criteria Character Capacity Collateral Capital Conditions Compliance Review bank covenants and collateral

63. Bank Covenants Refer to sample condition letters.

64. Collateral Refer to handout.

65. Work on Your MAP Description –Day 1 Vision / Direction –Vision statement –Day 1-2

66. MAP Scorecard –Financials –Day 3-5 Action Plan –Goals –Actions –Who / When –Day 5

67. Questions and Answers

69. Session 5: Part II – Management Action Plan (MAP)

70. Why is business planning important An updated plan helps you in many ways: Address problems Stay on track

71. Why is business planning important An updated plan helps you communicate to others: Business partners Family members Team members

72. Why is business planning important An updated plan helps you communicate to others: Lender can make timely, accurate decisions Advisor can provide a fresh perspective

73. What does a good business plan look like? A good business plan is one that gets used… –Simple and clear –Specific to the individual situation –It is regular part of managing and tracking a farm business –Not an “extra step”

74. Management Action Plan Goal: Complete a MAP for your farm It will involve work in between each day: –Thinking about your farm business –Communicating with family/business partners –Communicating with your accountant / advisor Help available in between each session.

75. Create a vision for your farm Desired future state of your farm business in 5-10 years. Roadmap of what the organization wants to become in the future Source of inspiration for the owners and employees

76. Which best describes your operation?  GROW – We plan to increase the size of our operation  DIVERSIFY – We plan to diversify our operation into different commodities/sector to spread our risk and workload.  SPECIALIZE – We plan to focus and specialize in one area or product to simplify and streamline.  STAY SAME SIZE – We plan to be the same size and produce the same crops/livestock but we will reduce our costs.  OTHER – We plan to:_________________________________

77. MAP Description –Day 1 Vision / Direction –Vision statement –Day 1-2 Core Values –Day 2

78. MAP Risks –Risk Assessment –Day 2 Management –Owner –Management –Advisors –Day 3

79. MAP Scorecard –Financials –Day 3-5 Action Plan –Goals –Actions –Who / When –Day 5

80. Your MAP Take the next 20 minutes to think about your farm business –Complete the action plan on your MAP Goal, Action, Who, When –OR –Write down 3-5 strategies and actions you will take to help achieve your vision

81. Small Group Discussion Divide into small groups Share a few ideas from your action plan –Ask for feedback from your group –Help improve each others plans 6 minutes per person

82. Free-for-All What are your unanswered farm business management questions? Let’s talk.

83. Final Evaluation Your feedback is appreciated Please take the next 5 minutes to complete the 2-page evaluation form