oregon risk management program to help producers create farm level business plans l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Oregon Risk Management Program to Help Producers Create Farm-Level Business Plans PowerPoint Presentation
Download Presentation
Oregon Risk Management Program to Help Producers Create Farm-Level Business Plans

Loading in 2 Seconds...

play fullscreen
1 / 17

Oregon Risk Management Program to Help Producers Create Farm-Level Business Plans - PowerPoint PPT Presentation


  • 301 Views
  • Uploaded on

Oregon Risk Management Program to Help Producers Create Farm-Level Business Plans Bart Eleveld Clark Seavert Oregon State University Extension Service Outline The Need Justification The Project—three main components The Workshops Content of sessions Outlines for business plans

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Oregon Risk Management Program to Help Producers Create Farm-Level Business Plans' - Leo


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
oregon risk management program to help producers create farm level business plans

Oregon Risk Management Program to Help Producers Create Farm-Level Business Plans

Bart Eleveld

Clark Seavert

Oregon State University Extension Service

outline
Outline
  • The Need
    • Justification
  • The Project—three main components
    • The Workshops
      • Content of sessions
      • Outlines for business plans
    • On-site Visits
      • Key to success of project
    • Business Plan Critiques
  • Evaluations
    • Summary of surveys
    • Success stories
  • Spin-offs
  • Changes for future
the need justification
The Need (Justification)
  • Agriculture at strategic crossroad
    • Klamath Falls—long term water allocations
    • Orchard crops—low prices/low returns, foreign competition
    • Wheat/small grains/cattle—low prices/low returns, continuity of government programs
    • Vegetable/row crops—loss of markets/processing facilities
    • Succession issues—pressure to expand or intensify
  • Business plan a difficult hurdle for producers
    • Producers short on time
    • Complexity of financial analysis is intimidating
    • Integration of all the farm’s information
      • Must be comprehensive, yet useable and accessible
    • Need for individual, professional assistance to get producers “over the threshold”
the project
The Project
  • End product is long-term strategic business plan
    • First draft, beginning of continuing process
  • 3 main components:
    • Workshops to teach financial planning concepts
      • FINPACK
      • Enterprise Budgets (On-line Excel Spreadsheets)
      • Homework assignments to gather data for …..
    • Implementation assistance
      • On-site visits by farm advisors
        • FINPACK financial analysis and planning
        • 4 to 5 visits of 2 to 3 hrs.
        • E-mail data exchange
      • Assist in completing plan submitted for ….
    • Review/critique of plans
      • Critique by panel (lender, accountant, extension agent/specialist)
      • Written summary of evaluation given during one-on-one session
the workshops
The Workshops
  • Where are we now ?
  • Where do we want to be ?
  • How do we get there?
  • Critique of plan
  • Review and debriefing
where are we now
Where Are We Now ?
  • Goals, objectives and mission statement
  • Business Plan outline
  • Balance sheet: liquidity and solvency
  • Enterprise costs and returns (crop and/or livestock budgets)
  • Total resource inventory
where do we want to go
Where Do We Want to Go ?
  • Income Statement (with accrual adjustments)
    • Profitability
    • Efficiency
    • Term Debt Repayment
  • Scenario analysis with long-run prices, yields, costs and enterprise quantities
  • FINLRB or FINFLO of alternative futures depending on farm situation
    • Review a regionally appropriate case study
    • FINLRB for predominantly annual crops, stable perennial crops or livestock
    • FINFLO for perennial crops with rapidly changing establishment
how do we get there
How Do We Get There ?
  • Implementation plan with short-run to long-run projected prices, yields, costs and enterprise quantities
  • Cash flow budgeting and management of the operating loan
  • FINFLO of “best” scenario
    • Monthly or annual, single or multi-year, depending on the specifics for the producer
on site visits
On-Site Visits
  • Key to success of program
  • Largest cost component for project
  • Farm advisors help producers organize data and do the financial analysis
  • Occur starting immediately after first session, through just before the critique
  • Purpose is to encourage producers and keep them on schedule
critique of plan
Critique of Plan
  • Assemble panel of “experts”
    • Ag lender (hopefully pro bono)
    • Accountant with ag experience (usually paid a stipend)
    • Farm management person (part of the job)
      • Extension FM specialist
      • Community College Farm Business Management instructor
      • Extension agent with rich FM experience
  • Individual meeting to review panel’s comments
    • Farm management person compiles reviews
    • Meet individually with producer for about 1 – 1.5 hours
review and debriefing
Review and Debriefing
  • Summarize and wrap up loose ends
  • Panel discussion by reviewers
    • General observations and recommendations
    • Strategies for continuing the process
  • Celebrate the accomplishment
    • Share a meal
  • Evaluations
evaluations
Evaluations
  • Producers found financial concepts difficult and frustrating
  • Emphasized importance of specific homework assignments to prepare for farm visits
  • On-site visits were most appreciated component
    • Overcame difficulties of financial analysis
  • Appreciated the “getting it done” aspect
    • Creates concerns that producers see it as a “one-shot” experience rather than ongoing process.
quotes from participants
Quotes from Participants
  • This class forced us to “get things done”. Have found several uses of it already because I have everthing in one place.
  • It finally forced me to do what I’ve always needed to do…create a business plan, even though it still needs improvement.
  • Forced us to get and deal with information.
  • I have the skills after this seminar to compose an excellent business plan.
spin offs and related programs
Spin-Offs and Related Programs
  • Interest in alternative enterprises, agrotourism
    • Example—Pear Ridge Orchards, Tree Lease Program
  • Succession basics—collaboration with Austin Family Business Program
  • Alternative enterprise economics—RMA funded cooperative agreement
    • Training on spreadsheet enterprise budgets used on OSU website
    • Marketing and Entrepreneurship for new and alternative enterprises—also with A.F.B.P.
  • FINPACK training for producers who purchased the software
future changes
Future changes
  • More website information
    • Example case studies
    • Homework assignments
  • More skill building
  • Follow-up support—business plan is a process, not a product
    • Extension?
    • Community Colleges?
  • More on succession and business organization
    • Have all generations participate