Farm Business Planning
Planning is a process of focusing energy and life direction, of creating priorities and generating energy for change. It involves identifying objectives and making a commitment to achieving them.
Alan Blackburn & Associates Consulting work with clients to prepare their business plans.
Farm Business Planning
Why Plan? Is your future principally in the hands of fate, or in your own hands? Successful business managers believe the future is not inevitable. They know they will face many risks but they believe they can plan to minimise them and develop strategies to deal with them. They believe that if they are clear in knowing what they want, they can create, manage and influence the future they want. They know that without a plan their future will drift into the hands of fate.
Strategic Planning – What’s Involved? Strategic planing focuses on the medium to long term. It aims to position the farm business to meet long term goals and protect the business from known risks.
Download our Farm Business Plan template to see what sort of topics we cover in your plan.
Farm Leasing and Business Expansion
Farm viability is linked to farm size. Farming has been undergoing a continuous process of increasing farm size. This has occurred as international pressures drive down agricultural commodity prices, causing farms with high cost structures (generally small farms) to sell up. Bigger farms expand, gain “economies of size” and position themselves to be viable in the long run.
In addition to evaluating leases for clients Alan Blackburn has also owned and leased farm land himself. He will evaluate the economics of buying or leasing land and the associated risks, providing you with an informed base for making your decision.
However leasing and or buying more land is not always a good idea and in some cases it results in the farm which buys or leases more land becoming less viable due to an unsustainable debt level. Consequently such decisions require careful planning before proceeding.
We work with clients to help them budget and evaluate these options. If profitable we assist clients prepare cash flows and business plans to support loan applications to lenders.
Buying farm machinery often involves an investment of hundreds of thousands of dollars. Consequently a careful analysis of farm machinery investment is often warranted. We work with clients to identify the cost of machinery ownership and the cost of owning machinery compared to using contractors.
Cash Flow Budget Projections
Cash flow budget projections are a core component in farm business plans and farm loan applications.To prepare cash flow budgets we use our Farm Business Planner software so that you can see the basis for arriving at the figures in your budgets. This provides the basis for explaining budgets to lenders and farm business partners.
Budgets can be saved onto your computer to allow you to make follow up changes if circumstances change.We match the chart of accounts used in preparing budgets, to the chart of accounts in your computerised accounting system. This enables us to place the budget on your computerised accounting system, so you can readily print out budget vs actual reports. This in turn provides an important mechanism for controlling your farm finances.