Farm Business Management Dave Marr Riverland Community College

1. FarmBusinessManagementDave MarrRiverland Community College

2. Farm Business Management I.     Farm Business Management Programa.      Vision & Mission b.      Overview of Program & Topicsc.      History of FBM programII.     Close Out a.      Balance Sheetb.      FINANIII.    Cash Flowa.      Cash Flow & Monitoring IV.   Analysis, Evaluation, Improvement Opportunitiesa.      Percentile RankEm, Report Card, Sweet 16 Score Cardb.      Southeastern Minnesota Annual ReportV.      Tax Estimatesa.      Tax Planning & Income & Expense AlternativesVI.     Medical Flex PlanVII.    Property Tax Refund VIII.  Business Planninga.      Family Vision, Goals, DreamsIX.     Market PlanningX.     Computerized Record Keepinga.      PCMARS and other systems XI.   Other Areas of Need

3. Dave MarrSouthern Minnesota & Northern IowaFarm Business Management InstructorMy Personal Vision:To provide leadership and direction for the Farm Business Management education program that will allow producers to rely on a progressive, innovative program that will guide them in the ever-changing area of production agriculture.My Personal Mission:To ensure that producers achieve the highest levels of operational and managerial efficiency, which will correspond to equally high levels of profitability for their farm business.Riverland’s Business Mgmt. Program Vision:The Riverland Business Management education programs have a passion to help students envision and plan for the future, to define their goals and to learn from current, quality, sound information.Riverland’s Business Mgmt. Program Mission:The Riverland Business Management education program provides student focused education to assist in meeting their family and farm business goals.

4. What is the Farm Business Management Program?x    It is an opportunity to have regular contact with an individual who will assist you in developing management tools. These tools may be used to analyze the farming operation to make the farm more profitable.x    As a member of this farm management group, you became a student of Riverland Community College and will receive a grade for each semester enrolled. Classes are mostly on a one-to-one basis, with a few group activities scheduled during the year.Who am I?x    I grew up on a diversified farm near Riceville, Iowa. I graduated from South Dakota State University – Brooking, S.D. I taught High School Voc Agriculture two years and worked for Land O’ Lakes for 24 years.x    Riverland Community College of Austin employs me. Serving Producers in Southern Minnesota and Northern Iowa.What will I do for you?x    I will provide regular assistance with improving/evaluating your record keeping system. A computerized accounting system is encouraged and I will assist you with setting up your system and keeping it current throughout the year.x    Appointments will be made on a regular basis, either on the farm or in the Farm Management office as requested by you, to discuss and evaluate monthly events.x    We will work together to assemble Financial Statements, Cash Flows, Tax Estimations and Tax preparation information. I do not do the taxes, but assist in preparing the information for your tax accountant.x    Discussion will be held concerning investments and retirement.x    I will help you assemble financial documents requested by your lender.x    I will provide a year-end Farm Analysis of all Enterprises on the farm.x    Several classroom style meetings will be held each year to discuss relevant topics for your farming operation.x    Livestock and crop production evaluation will take a priority to help improve your profit margin.x    My job is to be a resource person for you to call and be able to discuss concerns and provide contacts with other farmers, etc. who may have the same concerns. Together we can work to find solutions to your concerns and make improved plans for the future.Farm ManagementProgram: 10 Credits

5. Key components of the Farm Business Management ProgramFinancial Management - Financial management skills can be learned and applied to you farming operation. The key is learning and understanding financial management techniques and tools. Then using that knowledge and applying it to your farm on a daily basis as you make decisions. That’s where Farm Business Management can help!Enterprise Management - The program can effectively evaluate each enterprise of your farming operation. Your analysis will show the strengths and weaknesses of your business. Then you can make the proper management decisions. If you so desire, the instructor will work with specialists who ca help you solve your production problem.Marketing Management - Keeping current with new marketing options and terminology, is a never-ending process. The Farm Business Management Program explains the various marketing methods and helps you decide which marketing plan best fits your needs.Overall Business Management - Putting it all together into a sound business plan is where it all happens. Having your goals, skills, and knowledge all in line can help you work more efficiently and effectively and ultimately make your farm more profitable. That in turn will help you and your family have a better quality of life. Farm Business Management InstructorRiverland Community College 507-433-06181900 8th Avenue North West Mobil: 507-438-7076Austin, MN 55912 dmarr@river.cc.mn.us

6. Features of the Riverland Farm Business Management Program·        Assistance in farm record keeping·        Farm account book training·        Computerized farm accounting training·        Annual farm account close-out·        Annual farm business analysis·        Individual farm and enterprise yearly analysis·        Individual farm and enterprise trend analysis·        Summary of Austin Farm Business Management enrollees·        Summary of SE Minnesota Farm Business Management enrollees·        Cash flow generation, assistance and follow-up·        End of year tax estimation assistance·        Goal setting for short and long term needs·        Decision making on enterprise improvements for farm operation·        Marketing discussion and assistance·        Other special needs assistance around topics or areas you have questions

7. Ways we provide education and assistanceIndividual Instruction - The instructors work with each family to help find ways of solving individual problems. Quite often the instruction is on the farm with the entire family participating.Classroom - Regularly scheduled classes provide instruction on subjects ranging from record keeping, budgeting, farm analysis, marketing to operating a computer. One-time classes are also offered on specific topics of interest. Participants not only learn from the instructors but from each other.Newsletters - A monthly newsletter provides timely educational information, notices of upcoming events and information from other students. It provides a way to learn at the comfort of your own desk.Telephone - Farmers enrolled have access to their instructor by telephone to secure information regarding their farm business.Farm Tours - The program provides a variety of tours such as individual farm tours, tours to commercial sites, field days and research farms.

8. Benefits of Enrollment in the Farm Business Management Program·        Scheduled farm visits with instructor·        Assistance available on request·        Personal commitment to improve the farming operation·        Complete confidentiality in consultation with farming operation·        Year round educational assistance available·        Personal satisfaction in recognizing performance of the farming operationIndividualized Instructional Topic OptionsStrongly suggested Farm business analysis Farm business analysis review Cash flow plan End of year tax estimate

9. Other options Crop and livestock marketing plan Midyear records check Computer training for record keeping and other uses Account book procedures Developing a business plan Goal setting & Long Range Planning Managing 105 tax code opportunities Farm transfer planning Partnership planning and agreements Retirement planning and Social Security issues Estate planning Business expansion or reduction planning and analysis Building and farmstead planning Corn or soybean plot work Nutrient management planning and fertilizer recommendations Feedlot permits Visit with your financial agency Depreciation schedule review and update Tax form review Farm safety audits Dairy farm review through dairy team program Helping with other production issues Other issues as asked by the farm operator

10. Farm Business Management education has been a part of agriculture education programs in Minnesota since 1952. From the early cooperative efforts of the State Department of Education and the Department of Agriculture Education (University of Minnesota), the program has expanded to serve over 6000 farm families each year in six farm management areas. Programs are now administered and managed by the Minnesota State Colleges and Universities System through the Technical and Community Colleges.The Farm Business Management Program is an educational program that is designed to “help farm families achieve their farm business and family goals”. This is done through improved management organization and efficiency of their farm operations. This purpose has not changed over the years.