AgVenturesAgVenturesBuilding A Vision Building A Vision

Financial Management Financial Management and Analysis Workshop and Analysis Workshop

SeriesSeries

Developed byDeveloped byFinancial Working GroupFinancial Working Group

UW-Extension F.A.R.M. TeamUW-Extension F.A.R.M. Team(Farm and Risk Management Team)(Farm and Risk Management Team)

Lee Milligan, Carl Duley, Bob Cropp, Jon Zander, Lee Milligan, Carl Duley, Bob Cropp, Jon Zander, Gregg Hadley, Jenny VanderlinGregg Hadley, Jenny Vanderlin

BAV-AudienceBAV-Audience

ProducersProducers– Improve:Improve:

Financial SkillsFinancial Skills Problem Solving SkillsProblem Solving Skills

– Identify:Identify: Critical IssuesCritical Issues Mission StatementMission Statement Vision StatementVision Statement Plan for Farm Future Plan for Farm Future

BAV-AudienceBAV-Audience

ProducersProducers– Evaluate:Evaluate:

Financial Performance of Farm Financial Performance of Farm

– Develop:Develop: Strategic Plan for FarmStrategic Plan for Farm

BAV-What Is It?BAV-What Is It?

3 Day Workshop 3 Day Workshop

4.5 Hours (including lunch)4.5 Hours (including lunch)

Small Group Small Group (5-12 farms)(5-12 farms)

BAV-What Is It?BAV-What Is It?

InteractiveInteractive

Bella Acres Case Bella Acres Case FarmFarm

Activities Activities

Q&A SessionsQ&A Sessions

BAV-Program BAV-Program Evaluation Evaluation 27 of 28 would use Strategic 27 of 28 would use Strategic

Planning concept in their farm Planning concept in their farm businessbusiness

Comments:Comments:– ““I learned how to identify the key I learned how to identify the key

issues, barriers to those issues and how issues, barriers to those issues and how to make some real plans for solving to make some real plans for solving those issues.”those issues.”

Comments:Comments:– ““I learned the importance of creating I learned the importance of creating

alternative solutions for areas for alternative solutions for areas for improvement before creating actions for improvement before creating actions for solution.” solution.”

– ““Showed me how to make a strategic plan for Showed me how to make a strategic plan for incorporating my husband and myself into my incorporating my husband and myself into my parents operation. Having Bella Acres parents operation. Having Bella Acres scenarios was great. It allows for real info scenarios was great. It allows for real info without making those feel uncomfortable.” without making those feel uncomfortable.”

BAV-Program BAV-Program EvaluationEvaluationCommentsComments

BAV-Program BAV-Program Evaluation Evaluation Producers Reported Average Increase onProducers Reported Average Increase on5 point Likert Scale in understanding of: 5 point Likert Scale in understanding of:

Net Worth, Income and Cash Flow StatementsNet Worth, Income and Cash Flow Statements3.88 pts3.88 pts

Net Farm Income vs Cash Farm IncomeNet Farm Income vs Cash Farm Income 3.81 pts3.81 pts

BAV-Program BAV-Program Evaluation Evaluation Producers Reported Average Increase onProducers Reported Average Increase on5 point Likert Scale in Understanding of:5 point Likert Scale in Understanding of:

Desired ROROE/ROROA/COCAP RelationshipDesired ROROE/ROROA/COCAP Relationship3.75 pts3.75 pts

Significance of Working CapitalSignificance of Working Capital 3.69 pts3.69 pts

BAV-Program BAV-Program EvaluationEvaluationCommentsComments

““BAV opened our eyes to a more BAV opened our eyes to a more comprehensive look at what comprehensive look at what direction business can choose and direction business can choose and mechanics to get us there.” mechanics to get us there.”

““BAV made me think more about BAV made me think more about whether I am financially sound or whether I am financially sound or just farming because that is what just farming because that is what I do for a job. I paid the bills each I do for a job. I paid the bills each month but this made me look at month but this made me look at net farm income and profit.”net farm income and profit.”

BAV-Program BAV-Program EvaluationEvaluation

Comments, Con’tComments, Con’t

““Looking at returns to assets and Looking at returns to assets and returns to equity have helped returns to equity have helped build our confidence in what we build our confidence in what we are doing.” are doing.”

BAV-Program BAV-Program EvaluationEvaluation

Comments, Con’tComments, Con’t

Building A Vision Building A Vision CurriculumCurriculum

Contact: Contact:

Jenny VanderlinJenny Vanderlin

Center for Dairy ProfitabilityCenter for Dairy Profitability

UW-MadisonUW-Madison

608-263-7795 608-263-7795

Building A Vision Building A Vision CurriculumCurriculum

Questions and AnswersQuestions and Answers