1. 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

2. 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

3. 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

4. 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.

5.  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.

6. 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.

7. 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.

8. 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.