Sample2004 - FARM FARM Assistance Assistance Strategic...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
FARM Assistance Strategic Analysis Prepared for : Freddie M. Sample Anywhere, Texas Developed by: Steven L. Klose Assistant Professor and Extension Specialist May 2006
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Confidential or Financial Information - DO NOT DISTRIBUTE FOR TCE USE ONLY FARM Assistance Report Contents: The Executive Summary is a brief description of the FARM Assistance projection and analysis. Following the executive summary the report includes a Goal Setting Worksheet and a SWOT Assessment Worksheet to assist the manager in completing these strategic planning activities. The Farm Description section includes the details of the input assumptions for the FARM Assistance projection. Included in this section are assumptions of cost of production, overhead cost, equipment, asset, and debt summaries. Tables 2 & 3 at the end of the Farm Description section show the assumptions of commodity prices and inflation rates. The Base Analysis represents the financial projection of the operation over a ten-year period, and serves as the baseline or benchmark used to compare alternative strategic plans. This section begins with a written analysis of the base scenario. Table 4 includes the average values of selected financial measures for the ten year projection period. Following Table 4 is a set of graphs representing the risk projections of selected financial measures. In the numbered Alternatives sections, the financial projections of alternative strategic plans are compared to the projections of the Base scenario. Each of these sections begin with a written analysis of the critical differences between the alternative plan and the base plan. The tables and graphs are designed to show the average level of selected financial measures, as well as, the range of performance that may be expected given the risk that the operation faces under the various strategies. The detailed Financial Statements are developed with the assumption of average prices and yields throughout the ten year period, unlike the risky analysis which includes a wide range of possibilities for future prices and yields. Because they do not include risk, the financial statements represent unrealistic projections, and can not be compared to the more complete risky analysis in the Base and Alternative sections. The financial statements are provided as reference material to illustrate the calculation of bottom line financial statement measures such as Net Cash Farm Income, Ending Cash Balance, and Real Net Worth. Three Appendix pages are included. This section contains descriptions of the FARM Assistance projection, the analysis procedure, and the financial measures used in the analysis.
Background image of page 2
Confidential or Financial Information - DO NOT DISTRIBUTE FOR TCE USE ONLY Executive Summary The Freddie M. Sample Farm is an irrigated row crop operation located in Texas. Cropping activities on the farm consist of both yellow and white corn and cotton on owned and share rented land. All crop land on the operation is irrigated. Pivot corners are either in CRP or planted for cover.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 81

Sample2004 - FARM FARM Assistance Assistance Strategic...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online