Ag Biz 11 Year of Success

1. Ag Biz11 Year of Success Dennis Kauppila University of Vermont Extension Extension Risk Management Conference, KC MO, 4/05. <dennis.kauppila@uvm.edu>

2. Ag Business Management Course • 4 day course for farmers • Farm financial risk • Began 1994 • UNH Ext joined in 1996 • Sometimes 2 or 3/year, now just 1 in several locations • 2 other UVM Ext folks, 2-3 UNH Ext.

3. Ag Biz history • 6 different programs • Quicken • Cost of Production • Finan, Finlrb • ‘Essentials’ • ‘Managing for Success’ • 900 people from over 700 farms

4. Northeast Center for Risk Management Education • Helped with funding courses for past 3 years • Will help fund next year’s courses • Helped to fund Mobile Computer Lab • 12 laptops • Projector • Wireless hub and printer • Others helped also, DHI, Yankee Farm Credit….

5. FSA Borrower Training Certification • Each person who completes gets certified • ‘Don’t ask- don’t tell’ • We don’t know who needs it • All can get it • Early years, some were grumpy • Usually able to learn something • Other lenders encourage participation

6. This winter’s Quicken course • Taught in 5 locations • Each has 4 class meetings • Used to be 4 Tuesdays in a row • Now Tues and Fri for 2 weeks • 10 am to 2:30pm • Brown-bag lunch, before: hot meal • Fee $100 • Ranges from about $80- $175- meals

7. This winter’s Quicken course • Average of 15 people • Mandatory homework • Encourage participation • Many co-ops, lenders, ag oganiz’ns reimburse 50% upon completion • Last couple of years, scholarships from Yankee Farm Credit • In FSA, Extension, state office rooms

8. Participants • One fee pays for 2 people/farm • Really encourages 2 to attend, about 1/3 • They can talk during the drive • ‘Uninterrupted’ time, except cell phones • Many combinations • Father-daughter, daughter-in-law, son • Mother-son, daughter • Partners • Husband-wife • Mostly dairy, many other commodities • Ages from 17-83

9. Agenda • Every year we cover • Balance Sheet • Income Statement, Cash Flow • Annual Budget • Each participant leaves with • Current Balance Sheet • Budget for coming year • Just what lenders require

10. This year’s Quicken plan • Used Ohio State’s Bulletin 911, Computerized Farm Record Keeping with Quicken. Very good. • About half Quicken, half other • Computer lab, 1 machine/ farm • Each participant leaves with a copy of Quicken to take home • Floppy with QIF, some spreadsheets

11. Day 1 Install Q on machines, Q intro Homework: install Q at home Day 2 Q: Categories, Data entry Balance Sheet, a bit of spreadsheets HW: Balance Sheet Day 3 Q: Data entry, reports Cash Flow, P+L, Crop Insurance HW: Cash Flow Day 4 Q: reconcile, budgets, weakness Budgeting This year’s Quicken agenda

12. This Year’s Course • Final Homework, mail it to us • Show us you are using Q, or show us your budget, or how you’re using course • Second time teaching Quicken • Total 8 locations, 93 farms, 119 people • Teaching • Lead instructor, sometimes 2nd instructor and at least one helper (peanut gallery)

13. Other Years • ‘Essentials’ • Communications, goals, Bal Sheet, P+L, Cash Flow, Budgets • 2 hours working just w/Bal Sheet • Lenders as speakers, lender panel • 6 years, 20 locations • 292 farms, 359 people

14. Other Years

15. Final Thoughts • 4 meetings works well • Time enough to get on a few tangents • Focus on homework for first half-hour • Touch up the material each year • We have learned a lot • Big time investment, w/good returns • Exported concept to Ireland on sabbatical leave in 1998