Farm and Ranch Business Success Factors Steven L. Klose Dean A. McCorkle Greg H. Kaase Joe L. Outlaw David P. Anderson George M. Knapek Texas Cooperative.

Slides:



Advertisements
Similar presentations
Business Plan Karisha Devlin Agricultural Business Specialist.
Advertisements

Your Net Income Statement Gerry Schwab, Barbara Dartt, Sherrill Nott, & Roger Betz FIRM AoE Team.
Castellanza, 20 th October and 3 rd November, 2010 FINANCIAL INVESTMENTS ANALYSIS AND EVALUATION. Corporate Finance.
Where are you headed? Will you be the first to know when you have “arrived?”
 Know the factors of production  Understand what budgeting is and why it is important  Demonstrate knowledge of budgeting principles, limitations of.
National Farm & Ranch Conference June 13-17, 2010 Characteristics of top producers Presented by: Al Brudelie.
Overview of Finance 520.
Company Enterprise Risk Management & Stress Testing Case Study.
Farm Management Chapter 15 Managing Risk and Uncertainty.
The Real World: Youth Focused Risk Management Education and Career Investigation National Extension Risk Management Education Conference Phoenix, AZ April.
Farm Business Planning Dr. Laurence M. Crane
Finance/Accounting Functional Review. The Finance/Accounting Functions Defined Investment Decision The Allocation and Reallocation of Capital and Resources.
Exam 1 Review Notes Chapter 1 I. Introduction Structure of Production Agriculture Trend toward fewer but larger farms Contributing Factors: 1. Labor-saving.
Steven L. Klose Associate Professor and Extension Economist Program Coordinator, FARM Assistance Department of Agricultural Economics Texas AgriLife Extension.
Financial Check Up Agribusiness Finance LESE 306 Fall 2009.
Final Exam Review Notes Chapter 1 I. Introduction Structure of Production Agriculture Trend toward fewer but larger farms Contributing Factors: 1. Labor-saving.
Steven L. Klose Financial And Risk Management Assistance Department of Agricultural Economics Texas Cooperative Extension The Texas A&M University System.
Chapter 5: Supply Chain Performance Measurement and Financial Analysis
AgVentures Building A Vision Financial Management and Analysis Workshop Series Developed by Financial Working Group UW-Extension F.A.R.M. Team (Farm and.
A Framework for Financial Statement Analysis Chapter 11.
THE MASTER'S RESEARCH PAPER : “BANK PROFITS MANAGEMENT” (BASED ON THE JOINT STOCK COMPANY “ОТP BANK”) Naumenko T. B-09 Scientific supervisor: S.A. Kuznetsova,
Highlights of the Ready Mixed Concrete Industry Data Report Presented to the 45 th Annual Business Administration Conference by William B. Allen Allen.
How To Value Your Business Presented to the 43rd Annual Business Administration Conference NRMCA October 24,2001 New Orleans.
Lecture 15-2 Building Financial Models Material for Lecture 15-2 –Read Chapters 13 and 14 –Lecture 15-2 Farm.xlsx.
Atrill, McLaney, Harvey, Jenner: Accounting 4e © 2008 Pearson Education Australia ACCOUNTING FOR MANAGEMENT DECISIONS WEEK 7 ANALYSIS AND INTERPRETATIION.
What does a cooperator receive? 1.A complete record of his farm business Each farmer maintains a complete production and financial record.
Financial Check Up John B. Penson, Jr. Regents Professor and Stiles Professor of Agriculture Texas A&M University.
Institut for Regnskab, Tom Hansen Corporate Valuation Current market value (slide 3, 1) Evaluating performance in the stock market. Cash flow of.
Accounting Principles, Ninth Edition
Lecture 5 - Financial Planning and Forecasting
2Q | 2011 Guide to the Markets As of March 31, 2011.
08 Dec Accountant Perspective On Appraisal Value Derivation Conference: Dynamic Solvency Testing & Appraisal Value Thursday, 8 December 2005 Ballroom.
© Mcgraw-Hill Companies, 2008 Farm Management Chapter 15 Managing Risk and Uncertainty.
University of Palestine Assistant Professor Dr. Gaber H. Abugamea 3rd semester Business Finance FINA201.
A Brief Introduction to Business Plans. Introduction Can be for new start up, business expansion, for external or internal use Looks at all aspects of.
Advanced Business Planning Jeffrey Hyde The Pennsylvania State University Penn State is committed to affirmative action and the diversity of its workforce.
Self-Assessment: Overview Decide that area of operation that need attention Develop a plan and a qualitative self- assessment of those areas.
Strategic Management: Value Creation, Sustainability, and Performance, 3e, 2014 Strategy and Performance Chapter 2.
You start this module by learning the use of financial statement ratios for long- and short-term trend identification. As long-term objectives involve.
Analyzing the Firm’s Cash Flow
Small Business Management BUS 402 Creating a Solid Financial Plan.
Financial Analysis Ag Management Chapter 3. Objectives Know the three kinds of financial analysis Be able to calculate liquidity, solvency, and equity.
11/1/20151 Key Concepts In Finance Dr. Richard Michelfelder Clinical Assoc. Professor of Finance September 12, 2015 PMBA Program Boot Camp.
ADVANCE AGRIBUSINESS FARM RANCH BUSINESS MANAGEMENT.
Warren Reeve Duchac Accounting 26e Capital Investment Analysis 26 C H A P T E R human/iStock/360/Getty Images.
Cash Flows and Financial Management. PREPARING A STATEMENT OF CASH FLOWS Summarizes all cash inflows and outflows affecting a business by Month Quarter.
Highlights of the Ready Mixed Concrete Industry Data Report Presented to the 46 th Annual Business Administration Conference by William B. Allen Allen.
Economic Analysis of Alternative Lignocelluloses Sources for Ethanol Production Agriculture as a Producer and Consumer of Energy Conference Washington,
$ Taking Charge of Managing Risk on Your Farm March 12, 2002 Moonraker Restaurant Marshall.
FINANCE MODULE. The various subsystems Financial Accounting Investment management Controlling Treasury Enterprise controlling.
The Business Plan: Creating and Starting the Venture
J0704-Business Plan Financial Pro Forma Session
RATING OF BANKS. Business Risk of Banks Business risk –Operating risk –Regulatory risk –Environmental risk –Ownership structure –Government support –Governance.
Planning for Organic Transition Rory Beyer, Organic Dairy Farmer, Saint Charles MN Gigi DiGiacomo, Department of Applied Economics, University of Minnesota.
Key Questions about Managing Risk on the Farm--Chap. 15 What are the sources of risk that farmers face? What strategies do farmers use to control risks?
Lecture 21-2 Building Financial Models Material for Lecture 21-2 –Read Chapters 13 and 14 –Lecture 21 Pro Forma.xlsx –Lecture 21 Fin Risk Manager.xlsx.
Chapter Chapter 18-2 Chapter 18 Financial Statement Analysis Accounting Principles, Ninth Edition.
June 14, 2016 Alejandro Plastina Assistant Professor, Extension Economist & Steven D. Johnson Farm & Ag Business Management Specialist Using Farm Financial.
Chapter 13 Financial performance measures for investment centres and reward systems.
Financial Statement Analysis
Principles of Investing FIN 330
Farm Business Management
Financial Statement Analysis
Financial Statement Analysis
Financial Statement Analysis
Enterprise Budgets A Decision Tool That Works in Farm Management
Ag & Resource Economics
Cash Flow and Financial Planning
Project Management: A Managerial Approach 4/e
Cash Flow and Financial Planning
Presentation transcript:

Farm and Ranch Business Success Factors Steven L. Klose Dean A. McCorkle Greg H. Kaase Joe L. Outlaw David P. Anderson George M. Knapek Texas Cooperative Extension Texas A&M University System National Extension Risk Management Education Conference March 26 – 27, 2003

Texas Risk Management Education Program Risk Management Education Master Marketer, Marketing clubs Curriculum Guide FARM Assistance Decision Support System Financial analysis of alternative operating strategies Database of Base Farm Analyses

What is FARM Assistance? A strategic planning tool designed to provide farmers and ranchers the flexibility to pro forma analyze their operation under risk for the purpose of choosing among risk management tools and/or business strategies.

What is FARM Assistance? Information All Enterprises Non-farm Activities Projection Ten year pro-forma Incorporating risk in production and prices Reports distribution of key financial performance measures Comparative Analysis

Logistical & Personnel Aspect of FARM Assistance Directly with individual producers 7 district-based extension specialists 4 campus-based extension specialists Steps in FARM Assistance process: Initial visit (data gathering/setup) Base verification (prelim. results) Report visit (deliver analysis report)

Report Contents Graphical, Tabular, Written Summaries Profitability,Liquidity, Equity Growth Cash flow risk With risk, and deterministic (no risk) Supporting information

Base vs. Alternative Base ScenarioAlternativ e 1

Cash Flow Risk Probability of Cash Deficit Cash Reserves

FARM Assistance Data Base Data Base of Farms 400+ Completed Reports Actual Individual Operations The FARM Assistance Subscriber Full time farm or ranch Mix of Successful and Financially Stressed

FARM Assistance Data Base Data Base of Financial Information Actual and Near Term Projections Where is the operation today What is the structure of the operation Projected Data 10-year Projection Including Risk

Identifying Success Objective: Defining Future Success Classifications of Operations Correlation of Current Measures to Future Success Subjective: Empirical Experience of Extension Specialists

Definition of Success Success Index is Function of: 10-year average Return on Assets 10-year average Annual Percentage Change in Real Net Worth Average Probability of Cash Shortage (Refinancing Operating Note) SI = ROA + %∆RNW *P(C<0)

Classification of Farms

Composition of Performance Groups

Financial Indicators by Group

Indicator Rankings for all Farms and Ranches

Indicator Rankings for all Crop Farms

Indicator Rankings for Livestock Operations

Indicator Rankings for Diversified Operations

Subjective Indicators of Success Specialists/Producer Contact Interviewing and Collecting Data Conducting Analysis of Alternatives Two Key Characteristics Imply Success In-Depth Knowledge of Operation Details Forward Thinking Approach

Conclusions Quantitative Results Follow Expectations, Critical Factors Suggesting Future Success Expense/Receipts Ratio NCFI/acre Debt/Asset Ratio Management Style Influences Success

Farm and Ranch Business Success Factors Greg H. Kaase Dean A. McCorkle Steven L. Klose Joe L. Outlaw David P. Anderson George M. Knapek Texas A&M University National Extension Risk Management Education Conference March 25-26, 2003

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.