Provides a starting point in developing a crop and financial plan and the costs associated
100
Broad statements that show where you want to be after some period of time
What is goals?
100
Why keep records?
To comply with income tax reporting requirements
To assist in planning and management
Obtaining credit
Participating in government programs
Deciding what to produce/sell
100
A written description of a new business venture that describes all aspects of the proposed agribusiness
What is business plan.
100
What are the three primary grains grown in the United States?
Corn
Soybeans
Wheat
200
The length of time to start and finish the growing/production cycle of an animal.
Production cycle
200
Goals that are attainable in less than 1 year
What is short term.
200
Shows the financial condition of the business, at a particular point in time
Lists all assets, value of assets & liabilities of a business
AKA balance sheet, financial statement or statement of financial condition
What is net worth statement?
200
Why set a business plan?
It helps you
Be realistic
Honest
Detailed
Objective about your plans
Forces you to set goals
200
The techniques used to minimize losses and maximize profits in an agricultural business is known as...
Risk management
300
What are the two key agriculture futures and options exchange in the U.S.
Chicago Mercantile Exchange (CME)
Minneapolis Grain Exchange (MGEX)
300
What is Priority of Goals?
Dollar Value
Time
Orderly Sequence
300
The accounting system that
- Keeps balance in financial transactions
- Keeps track of current changes each time a transaction is made
- Each credit must be balanced by a debit transaction
What is double entry?
300
Identify people who will direct and manage the company
State their experience & special skills
Include organized chart of job descriptions & employees
What is the management plan.
300
Name 3 commodities traded on the CME
Corn
Soybeans
Wheat
Cattle
Hogs
Natural Gas
Gold
Interest Rates
400
State, income, sales....
What is taxes.
400
How do you reach your goals?
review goals annually (min)
use time and effort wisely
organize (things to do list)
check for slow moving goals
modify goals as resources change?
400
The two methods for reporting income and expenses.
Cash & Accural
400
What expenses should a producer consider when developing a crop plan.
Agricultural products or raw materials that are bough and sold
What is commodity.
500
What are advantages of setting goals?
provides "road map”
distinguishes between goals & objectives
makes it easier to get where you are going
prepares you to meet the future
you see the big picture & focus on critical relationships
gives you purpose and direction
frees you from worries and uncertainties about where you are headed
500
When do you take inventory?
Significance to the operation
Convenience to the operation
500
What/where do you go if your initial investor only gives you a portion of the money you requested?
Family
Friends
Other Investors
500
Why is it important to identify per acre/per head and gross expenses prior to setting profit and income goals?
So that producers understand their target price to ensure they are not only breaking even, but also generating a profit.