Title: Checklists and decision aids compiled for managing your farm alternatives workshops
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Permanent Link: http://ufdc.ufl.edu/UF00095076/00001
 Material Information
Title: Checklists and decision aids compiled for managing your farm alternatives workshops
Physical Description: 6 leaves : ; 28 cm.
Language: English
Creator: Holt, John, 1936-
Donor: unknown ( endowment ) ( endowment )
Publication Date: 1985?
Copyright Date: 1985
 Subjects
Subject: Farm management -- Decision making   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
 Notes
Statement of Responsibility: by John Holt.
 Record Information
Bibliographic ID: UF00095076
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 433575379

Full Text





















Checklists and Decision Aids


compiled for


Managing Your Farm Alternatives Workshops

by

John Holt









Table 1. Goals Checklist.


Very Not
Important Important
10 8 6 4 2 0


A. Income and Wealth
1. Make $20,000/year
2. Accumulate $50,000
(lifetime)
3. Save 5% of income/
year
4. Know the lower limit
of my income for
this year
5. Have a farm bus-
iness that produces
a stable income
6. Have a family income
comparable to what
my spouse and I
could make if we
lived in town


B. Risk
1. Avoid bankruptcy
2. Debt Load:


Less than $100,000
debt
Less than 50% of
net worth
No limit on debt
3. Insurance
Life
Health
Farm liability

Crops


Continued









Table 1, cont.

Very Not
Important Important
10 8 6 4 2 0

4. Make mortgage and
loan payments on
time


C. Family and personal life
1. Spend 1 hr./day
with family
Spend 4 hrs./day
with family _
2. Take a vacation
each year _
3. Time to do anything I want
1 hour/day -
6 hours/day -
3 weeks/year -
4. Own my home
5. Own a nice auto-
mobile
6. Set aside money for
retirement
7. Contribute to the
community
8. Live close to home
9. Recreation
Together as a family
Individually
Own recreational
vehicle
10. Cultural development
for family
11. Increase my family's
living standard
quickly


Continued









Table 1, cont.

Very Not
Important Important
10 8 6 4 2 0


D. Farm characteristics
1. Rapidly growing
farm
2. Efficient, well-
managed farm
3. Owning land
4. Sufficient size to
bring children into
the business
5. Be recognized as a
top farmer in the
community


E. Job
1.
2.
3.
4.



5.
6.
7.
8.


satisfaction
Outdoors work
Indoors work
Plenty of freedom
Required to make
many tough
decisions
Job security
Physical activity
Work with others
Work alone


Source: Kadlec, John E.
Prentice Hall.


Fi..w M eaernnwit:


Decisions Ooerat n


arm anag m .


onrtrnl








Management Skills


Necessary for Present Is Skill
Enterprise? Skill Level Available?
Skills

Yes No Average Good Yes No


1. Crop management -

2. Livestock management -

3. Marketing -

4. Purchasing -

5. Mechanical ability

6. Building construc-
tion skills

7. Personnel management __

8. Financial management -

9. Securing resources _

10. Physical endurance _

11. Emotional endurance

12. Analytical ability

13. Decision making

14. Risk tolerance


Adapted from: Kadlec, John E. Farm Management: Decisions. Operation.
Control, Prenctice-Hall, Inc. Englewood Cliffs, New Jersey,
07632.








Considering Livestock?


1. Do I have any free or low-cost fixed resources?

a. Feed

b. Labor and management

c. Buildings and equipment


2. Am I/can I provide the continuous attention livestock require?


3. Do I have ability with livestock?
-- Can I control the common diseases?
-- Is veterinary help necessary/available?


4. Do I enjoy working with livestock?


5. Will livestock help my cash-flow statement?


6. Am I willing to make a long-term commitment?


7. Can I stand price fluctuations and disease outbreaks?

Adapted from: Kadlec, John E. Farm Management: Decisions. Operation.
Control, Prenctice-Hall, Inc. Englewood Cliffs, New Jersey,
07632.








Investment Questions


1. How much am I willing/able to invest?

a. Start-up (commonly underestimated by one-fourth or more)

b. Annually (allow 10% cushion . more if no history)


2. Considering all the risks, and what my money could safely make, what
profit is necessary from this enterprise?


3. What is my start-up strategy?

a. Begin with commercial size

b. Start small, grow

c. How quickly will it show positive cash flow?


4. How long will I subsidize this enterprise before I abandon it?








Marketing Questions


1. Who wants it?

2. Why do they want it?

3. What quality do they want?

4. When do they want it?

5. How much do they want?

6. How often do they want it?

7. Is a broker necessary in order to sell it?

8. Is a broker available?

9. Is there any historical price information?
-- highest price in last 5 years.
-- lowest price in last 5 years.
-- average price, last 5 years.
-- Are prices increasing from year to year?

10. Is the available price information relevant for my area, with my
quality, my marketing dates, and my volume?

11. Is it possible to price my production before planting?
-- contracts
-- futures
-- options

12. Before planting, do I have a marketing strategy?
-- A pricing objective that will meet profit objectives.
-- An estimate of how attainable that price is likely to be.
-- A selling strategy for attaining price objectives.
-- A production schedule intended to maximize the quality and
marketability of my products.

13. What is my competition doing? Is information available about possible
increases in supply, and what price drop it might cause?








Sources of Risk


1. Economic
*Interest rates
*Incomes--National and/or area
*Input availabilities
*Competition (next county or next country)

2. Price
*Products sold
*Inputs bought

3. Yield
*Weather
*Pests (2, 4 or 6 legs)
*Diseases

4. Technological

5. Social and legal
*Lease agreements
*Government rules and regulations
*Neighbors

6. Human
*Hired help
*Family goals
*Bankers and other business associates
*Health








Production Questions


1. Before considering alternatives:
-- Are critical operations on existing enterprises getting done on
time?
-- Can I identify which enterprises are profitable?
-- How profitable?
-- Can income goals be met by expanding existing operations?

2. Considering alternatives:
-- Are the soils and climate suitable?
-- Are pest problems likely? (Pests can have 2, 4, or 6 legs.)
-- Are diseases likely to be a problem?
-- If specialized expertise is necessary, is it available?
Veterinarians
Brokers or other marketing skills/facilities
Harvesting machinery/labor
-- What regulations/regulators must be dealt with?
-- Are necessary facilities/equipment available, operational before
production begun?
-- Is the alternative as profitable as expanding present money makers
or as profitable as putting the necessary start-up capital into a
safe investment?
-- If the alternative looks profitable, is it feasible? (i.e., will it
cash flow?)
-- Have the marketing questions been asked?




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