PLANNING PROCESS 1.GOALS 2.PREPARE PAST FINANCIAL STATEMENTS 3.PRICE PROJECTIONS 4.MARKETING PLAN 5.OPTIMAL COMBINATION OF INPUTS 6.OPTIMAL WHOLE-FARM PLAN

7.PROJECTED WHOLE-FARM BUDGET 8.PROJECTED CASH FLOW BUDGET 9.ASSESS BORROWING REQUIREMENTS 10. PROJECT FINANCIAL STATEMENTS 11. ANALYZE PROJECTED FINANCIAL STATEMENTS 12. REVISE MARKETING PLAN AND OTHER PROJECTIONS

GOAL SETTING OR STRATEGIC PLANNING  STUDY  THINK  PLAN  ORGANIZE  A GOAL IS WHAT YOU WANT TO DO  A PROCEDURE IS HOW YOU ARE GOING TO ACHIEVE THE GOAL  THE TIME FRAME IS WHEN THE GOAL WILL BE ACHIEVED

PRICE PROJECTIONS AND MARKETING PLAN MARKETING PLAN  SITUATION ANALYSIS WHAT DO I HAVE TO WORK WITH? WHAT HAVE I DONE IN THE PAST? WHAT ARE MY ALTERNATIVES IN THE FUTURE?  GOALS BE SPECIFIC EXAMPLE - PRICE CROP SALES IN THE TOP 1/3 OF THE ANNUAL PRICE RANGE.

 DEVELOP MARKETING STRATEGIES  USE MARKETING TOOLS SUCH AS FORWARD CONTRACTING, HEDGING, OPTIONS, TECHNICAL ANALYSIS, FUNDAMENTAL ANALYSIS, ETC.  THIS STAGE BRINGS IN THE PROCESS OF PRICE PROJECTION.

PRODUCTION PLAN  PROCESS OF DEVELOPING A PLAN FOR INPUT USE (FERTILIZER, HERBICIDES, TILLAGE, VARIETIES, ETC.)  USE PRODUCTION FUNCTION INFORMATION WHEN POSSIBLE.  EXPERIMENT STATION RESULTS AND INFORMATION.

ENTERPRISE BUDGET  COMBINES THE PRODUCTION AND MARKETING PLANS INTO A PROJECTION OF RETURNS AND COSTS FOR EACH ENTERPRISE.  THE BUDGETS SHOULD ESTIMATE GROSS MARGIN AND NET ECONOMIC RETURNS.  FIXED COSTS THAT SHOULD BE INCLUDED ARE DEPRECIATION, RENT, AND POSSIBLY INTEREST ON INVESTMENT.

WHOLE-FARM PLAN AND WHOLE-FARM BUDGET  THE WHOLE-FARM PLAN SHOULD BE DEVELOPED USING THE GOALS DEVELOPED IN THE BEGINNING OF THE PLANNING PROCESS.  THE WHOLE-FARM BUDGET SHOULD REFLECT THE ESTIMATED RESULTS OF THE WHOLE-FARM PLAN.  THE WHOLE-FARM BUDGET INCLUDES CERTAIN FIXED COST ESTIMATES.