1. Developing Business Plans for Ag Producers Texas Cooperative Extension

2. Role of the Business Plan  Learning experience for producer  All pertinent information in one location –Historical financial information –Resource inventory –SWOT analysis

3. The Curriculum  Is there a need for a business planning curriculum in agriculture? –Tomorrow’s Top Ag Producer ($1,000 reg fee) –Changed definition of Business Plan to Management Plan

4. The Curriculum The Purpose: … to provide Extension faculty and staff and paraprofessionals with lesson plans designed to develop business plans for their agricultural producers.

5. The Curriculum Who’s Involved?  Texas Cooperative Extension (authors) –Stan Bevers –Dr. Blake Bennett –Dr. Jason Johnson –Wade Polk –Bill Thompson –Brenda Duckworth  SRRMEC (funding)

6. The Curriculum Each topic/section includes:  Publication  Worksheets  Case Study- TTAP Enterprises

7. The Curriculum 1. Executive Summary 2. Business Organization 3. Business History 4. Mission Statement 5. Resource Inventory 6. SWOT Analysis

8. The Curriculum 7. Legal and Liability Issues 8. Setting Goals 9. Production Plan 10. Financial Plan 11. Marketing Plan 12. Completed Business Plan for Case Study

9. “Business Plan” becomes… Management Plan

10. The Curriculum  Detailed  Complete  Includes both financial and production  Plan to identify and promote strengths and opportunities  Plan to identify and compensate for weaknesses and threats

11. The Curriculum Lesson 6… S.W.O.T. Analysis

12. S.W.O.T. Strengths Weaknesses Opportunities Threats

13. S.W.O.T. For each weakness or threat, there should be an off-setting strength or opportunity to compensate.

14. Strengths  Internal element  Low-cost producer –Financial Plan  Competent and reliable employees –Resource inventory  Marketing niche –Marketing plan  Expertise in production (A.I.) –Production plan & resource inventory (skills)

15. Weaknesses  Internal element  Highly leveraged –Financial plan  Poor brush control, underutilized grassland –Resource inventory  Not utilizing futures market –Marketing plan  Inadequate facilities or machinery –Resource inventory

16. Opportunities  External element  Are there new technologies that would lower costs?  Will diversification of enterprises increase profit?  Can my operation command a competitive edge?

17. Threats  External element  Ethanol explosion to a cattle feeder  Drought causing water shortage  What’s happening in the market that might effect your enterprises?  Are there siblings fighting over family land?

18. The Curriculum  Publication  Worksheets  Case Study

19. TTAP Enterprises S.W.O.T. See handout for SWOT Analysis on TTAP Enterprises.

20. Implementation of Curriculum  TTAP I –Four week-long sessions, November and January –Time spent on each section –Each session includes a study hall, panel discussion, social event, & homework –Extension personnel and experts in each field head the discussions

21. TTAP Agenda Session I  Lesson 2- Business Organization –Organizational Structure (Stan Bevers) –Business Structure (Bill Thompson)  Lesson 3- Business History –Stan Bevers  Lesson 4- Mission Statement –Greg Clary  Lesson 5- Resource Inventory –Jason Johnson

22. TTAP Agenda Session I  Lesson 6- SWOT –Blake Bennett  Lesson 8- Setting Goals –Goals & Objectives (Jason Johnson)  Lesson 10- Financial Plan –Introduction to Financial Statements (Brenda Duckworth) –Management Accounting (Brenda Duckworth)  Lesson 11- Marketing Plan – Sources of Risk (Wade Polk)

23. TTAP Agenda Session II  Lesson 5- Resource Inventory –Personality Tests (Don Tyler) –Family Issues (Don Tyler) –Personnel Management (Don Tyler)  Lesson 9- Production Plan –Wade Polk

24. TTAP Agenda Session II  Lesson 10- Financial Plan –Advanced Management Accounting (Brenda Duckworth) –Financial Plan (Stan Bevers) –FARM Assistance (Wade Polk) –Family Financial Plan (Jason Johnson)

25. TTAP Agenda Session III  Lesson 7- Legal & Liability Issues –Contracts (Wayne Hayenga) –Crop Insurance & LRP (Ken Stokes) –TRAMM (Ins. Game) (Stan Bevers)

26. TTAP Agenda Session III  Lesson 11- Marketing Plan –Requirements for an Effective Market (Stan Bevers) –Strategic vs. Tactical Plans (Stan Bevers) –Agricultural Policy (Joe Outlaw) –Concurrent Marketing Sessions Livestock- David Anderson Grains- Mark Waller –Introduction to Futures & Options (Mark Waller)

27. TTAP Agenda Session IV  Lesson 1- Executive Summary –Stan Bevers  Lesson 7- Legal & Liability Issues –Legal & Liability (Judon Fambrough) –Intergenerational Transfer (Wayne Hayenga)

28. TTAP Agenda Session IV  Role of Participant to Mentors (Jason Johnson)  Mentor Training (Jason Johnson)  Presentation of Business Plans to Mentors

29. TTAP Agenda Session IV and finally…

30. TTAP Agenda Session IV Graduation!! (whew….)

31. Implementation of Curriculum  Each section relies on information from other sections –Resource inventory includes fixed (depreciable) assets  Sections should reconcile –Resource inventory & depreciation schedule

32. Implementation of Curriculum  When completed, producer has a Management Plan of Continuation  Process is as important as end product!

33. Implementation of Curriculum  Goals are determined according to information gathered in process  Goals must be revisited each year –Were they attained? If not, why? If so, set them higher.

34. Availability  Texas Cooperative Extension Personnel (handout)  Website –http://agrisk.tamu.edu