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Developing Business Plans Developing Business Plans for Ag Producersfor Ag Producers
Texas Cooperative Extension
Role of the Business Plan
Learning experience for producer
All pertinent information in one location– Historical financial information– Resource inventory– SWOT analysis
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
The Curriculum
The Purpose:
… to provide Extension faculty and staff and paraprofessionals with lesson plans designed to develop business
plans for their agricultural producers.
The CurriculumWho’s Involved?
Texas Cooperative Extension (authors)– Stan Bevers– Dr. Blake Bennett– Dr. Jason Johnson– Wade Polk– Bill Thompson– Brenda Duckworth
SRRMEC (funding)
The Curriculum
Each topic/section includes:
Publication
Worksheets
Case Study- TTAP Enterprises
The Curriculum
1. Executive Summary
2. Business Organization
3. Business History
4. Mission Statement
5. Resource Inventory
6. SWOT Analysis
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
“Business Plan” becomes…
Management Plan
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
The Curriculum
Lesson 6…
S.W.O.T. Analysis
S.W.O.T.
Strengths
Weaknesses
Opportunities
Threats
S.W.O.T.
For each weakness or threat, there should be an off-setting strength or opportunity to
compensate.
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)
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
Opportunities
External element Are there new technologies that would
lower costs? Will diversification of enterprises increase
profit? Can my operation command a competitive
edge?
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?
The Curriculum
Publication
Worksheets
Case Study
TTAP EnterprisesS.W.O.T.
See handout for SWOT Analysis on TTAP Enterprises.
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
TTAP AgendaSession 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
TTAP AgendaSession 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)
TTAP AgendaSession II
Lesson 5- Resource Inventory– Personality Tests (Don Tyler)– Family Issues (Don Tyler)– Personnel Management (Don Tyler)
Lesson 9- Production Plan– Wade Polk
TTAP AgendaSession II
Lesson 10- Financial Plan– Advanced Management Accounting (Brenda
Duckworth)– Financial Plan (Stan Bevers)– FARM Assistance (Wade Polk)– Family Financial Plan (Jason Johnson)
TTAP AgendaSession III
Lesson 7- Legal & Liability Issues– Contracts (Wayne Hayenga)– Crop Insurance & LRP (Ken Stokes)– TRAMM (Ins. Game) (Stan Bevers)
TTAP AgendaSession 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)
TTAP AgendaSession IV
Lesson 1- Executive Summary– Stan Bevers
Lesson 7- Legal & Liability Issues– Legal & Liability (Judon Fambrough)– Intergenerational Transfer (Wayne Hayenga)
TTAP AgendaSession IV
Role of Participant to Mentors (Jason Johnson)
Mentor Training (Jason Johnson)
Presentation of Business Plans to Mentors
TTAP AgendaSession IV
and finally…
TTAP AgendaSession IV
Graduation!!(whew….)
Implementation of Curriculum
Each section relies on information from other sections– Resource inventory includes fixed (depreciable)
assets
Sections should reconcile– Resource inventory & depreciation schedule
Implementation of Curriculum
When completed, producer has a
Management Plan of Continuation
Process is as important as end product!
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.
Availability
Texas Cooperative Extension Personnel (handout)
Website– http://agrisk.tamu.edu