FARM BUSINESS SCHOOL : FARM BUSINESS PLAN

1. FARM BUSINESS SCHOOL : FARM BUSINESS PLAN MS. NEMY G. SUNGCAYA DA-AMAS

2. FORBID THAT I SHOULD VENTURE ON ANY BUSINESS WITHOUT FIRST BEGGING THY DIRECTION AND ASSISTANCE. Susan Wesley

3. Session 9: Components of a Farm Business Plan

5. Components of Farm Business Plan

6. Example 1: Production Plan

7. 3. Market Plan - It specifies the enterprise, the target market and buyer in addition to the questions below.

8. Component 3 : The Element of Market Plan

10. Market Plan •  Visit potential market •  Find out about different forms of transport •  Look at different forms of packaging •  Link out with specific buyers • Financial Plan •  Cash Flow • - List the sales and expenditure items when they occur in a year • - Prepares a cash flow table • - Calculate the net cash flow •  Cash Flow is used: • - to monitor liquidity • - for farm planning and management • - to provide solutions to cash short falls

11. Three Questions to be answered as inputs to financial plan.

13. Fixed Cost

14. 4.1Cash Flow  It details the cash flow (in/out) for each enterprise, each month to ensure that enough cash is available to the business.  Liquidity is the ability of the farmers to generate enough cash to meet financial obligations as they come due without disrupting the normal operation of the farm.

15. Cash Flow

16. 4.2. Profitability • It details the profit contribution from each enterprise, and deduct fixed costs to arrive at whole farm net profit.

17. 5. Risk Management Risk is defined as the probable occurrence of an event, which can be calculated with some accuracy. It can be determined by identifying all the possible outcomes of a given situation. However, it is impossible to predict what we really happen. This unknown factor is risk. Risk factors in farming: Agriculture depends on biological processes and is subject to fluctuations in production as a result of weather change and disease. Enterprises, such as vegetables are subject to sudden changes in price. Long term enterprises, such as tree crops require investment for a long period and may be subject to price changes that make them uneconomic. Certain crops may thrive under conditions prevalent in some parts of the country but prove uneconomic in others.

18. The most common sources of risks are: production and technical risk marketing or price risk financial risk institutional risk human or personal risk

19. The common risk management strategies

20. Farm Business Plan Outline • Enterprise: __________ Date: _______ • Background of your enterprise: _______________________ • Name of Farmer Entrepreneur: _________________________ • Address: _____________________ • Period of the Plan: _______________________ • VISION: • GOAL: • Farm Production Plan • Market Plan • Financial Plan • Management Plan (i.e. risks, how to smoothly apply all the learned lessons of this seminar need kin management, all stated activities in the action shall be done according to calendar of operations)

21. RISK MANAGEMENT

22. ACTION PLAN • Physical resources and inputs •  Arrange financing for buying inputs •  Confirm suppliers and the costs of each input item •  Arrange transport to collect/deliver input ahead of time for its use •  Place orders/collect inputs from suppliers • 2. Labor •  Identify skilled labor from nearby areas •  Check other farmers source of labor •  Identify technologies that could bring down the cost of labor •  Train labor so that they could work more efficiently

23. ACTION PLAN