FARM BUSINESS MANAGEMENT CLASSES

AS101 - Taking Control of Your Farm Business

Basic Accounting Concepts:
Explains basic accounting concepts such as the four parts of a business, cash/accrual accounting, and flow of money through a profitable operation. Discussion of maintaining and utilizing financial information.

Financial Reporting:
Explains how accounting data flows to various accounting reports such as the income statement, balance sheet, and other financial reports. Identifies the key financial reports as identified by both Generally Accepted Accounting Practices and the Farm Financial Standards. Provides different formats of the income statement, balance sheet and statement of cash flow. In depth discussion on the importance of financial information for decision making.

Financial Performance:
A five-year review of actual financial performance which includes determining prior operating efficiency and the use of the profit dollars. It also includes developing specific financial goals for operating efficiency for the current year and long term operating efficiency goals. Goals are also identified for use of the operating profits for debt service (principal and interest), living/taxes, and growth (assets).

Assets Management:
Introduces the concept of Asset Management. Heavy emphasis is placed on identifying how to use appropriate financial information to make capital asset decisions. Identifies the kind of assets and how they are grouped. The focus is on asset productivity. Included are balance sheet sections on terminology, cost vs. market basis, rules and ratios, and analyzing assets. An Action Plan for Asset Management is developed.

Taking Control:
It helps producers begin understanding how they can control their financial outcome. Producers begin to understand the elements associated in the "Taking Control" process. In addition, they begin to view their operation from different perspectives. "Outside the box," thinking (non-traditional).

Operations Management:
Identifies the concepts for improving operating efficiency. Results oriented annual action plans are developed to accomplish the financial goals of the business. This is accomplished by identifying the specific areas of concentration, what changes need to occur, and the projected financial result. This module focuses on the concept of utilizing the income statement to make improved financial and production decisions. Included are sections on the structure and components of the income statement.

Cost & Time Commitment:
Cost is $395, but Farm Bureau members pay $175. This is a three-day class.

AS121 - Debt Control and Lender Communications

AS121 Debt Control and Lender Communication is designed to build on the AS 101 concepts and help management understand the impact working capital and the flow of cash has on the operation's needs and goals.

Key Debt and Equity Principles

• Assess which would be better for funding your assets and operation. Debt Capacity-Determine How Much Debt is too Much
• Apply concepts to your farm business to determine how much debt it can cash flow.

Analyze Liquidity and Evaluate Working Capital
Evaluate working capital requirements for your own operation and identify your current position.

Complete Debt Analysis
Combine your total debt position with your working capital for a complete debt analysis.

Learning Objectives for this Course

• Calculate how much total debt an operation can cash flow.
• Understand the economics of the "Credit Limit Guideline."
• Understand working capital.
• Understand how much working capital an operation should have available.

Cost & Time Commitment:
Cost is $250, but Farm Bureau members pay $125. This is a two day class.

Farm Business Management
Learn how to take control of your farm business or how to handle debt control and lender communications as well as other farm business related classes.

	OTHER LEARNING OPPORTUNITIES

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