Developing Business Plans
for Ag Producers
Texas Cooperative Extension
Role of the Business Plan
 Learning experience for producer
 All pertinent information in one location
– Historical financial information
– Resource inventory
– SWOT analysis
The Curriculum
 Is there a need for a business planning
curriculum in agriculture?
– Tomorrow’s Top Ag Producer ($1,000 reg fee)
– Changed definition of Business Plan to
Management Plan
The Curriculum
The Purpose:
… to provide Extension faculty and staff
and paraprofessionals with lesson
plans designed to develop business
plans for their agricultural producers.
The Curriculum
Who’s Involved?
 Texas Cooperative Extension (authors)
– Stan Bevers
– Dr. Blake Bennett
– Dr. Jason Johnson
– Wade Polk
– Bill Thompson
– Brenda Duckworth
 SRRMEC (funding)
The Curriculum
Each topic/section includes:
 Publication
 Worksheets
 Case Study- TTAP Enterprises
The Curriculum
1. Executive Summary
2. Business Organization
3. Business History
4. Mission Statement
5. Resource Inventory
6. SWOT Analysis
The Curriculum
7. Legal and Liability Issues
8. Setting Goals
9. Production Plan
10. Financial Plan
11. Marketing Plan
12. Completed Business Plan for Case Study
“Business Plan” becomes…
Management Plan
The Curriculum
 Detailed
 Complete
 Includes both financial and production
 Plan to identify and promote strengths
and opportunities
 Plan to identify and compensate for
weaknesses and threats
The Curriculum
Lesson 6…
S.W.O.T. Analysis
S.W.O.T.
Strengths
Weaknesses
Opportunities
Threats
S.W.O.T.
For each weakness or threat, there should be
an off-setting strength or opportunity to
compensate.
Strengths
 Internal element
 Low-cost producer
– Financial Plan
 Competent and reliable employees
– Resource inventory
 Marketing niche
– Marketing plan
 Expertise in production (A.I.)
– Production plan & resource inventory (skills)
Weaknesses
 Internal element
 Highly leveraged
– Financial plan
 Poor brush control, underutilized grassland
– Resource inventory
 Not utilizing futures market
– Marketing plan
 Inadequate facilities or machinery
– Resource inventory
Opportunities
 External element
 Are there new technologies that would
lower costs?
 Will diversification of enterprises increase
profit?
 Can my operation command a competitive
edge?
Threats
 External element
 Ethanol explosion to a cattle feeder
 Drought causing water shortage
 What’s happening in the market that might
effect your enterprises?
 Are there siblings fighting over family
land?
The Curriculum
 Publication
 Worksheets
 Case Study
TTAP Enterprises
S.W.O.T.
See handout for SWOT Analysis on
TTAP Enterprises.
Implementation of Curriculum
 TTAP I
– Four week-long sessions, November and
January
– Time spent on each section
– Each session includes a study hall, panel
discussion, social event, & homework
– Extension personnel and experts in each field
head the discussions
TTAP Agenda
Session I
 Lesson 2- Business Organization
– Organizational Structure (Stan Bevers)
– Business Structure (Bill Thompson)
 Lesson 3- Business History
– Stan Bevers
 Lesson 4- Mission Statement
– Greg Clary
 Lesson 5- Resource Inventory
– Jason Johnson
TTAP Agenda
Session I
 Lesson 6- SWOT
– Blake Bennett
 Lesson 8- Setting Goals
– Goals & Objectives (Jason Johnson)
 Lesson 10- Financial Plan
– Introduction to Financial Statements (Brenda
Duckworth)
– Management Accounting (Brenda Duckworth)
 Lesson 11- Marketing Plan
– Sources of Risk (Wade Polk)
TTAP Agenda
Session II
 Lesson 5- Resource Inventory
– Personality Tests (Don Tyler)
– Family Issues (Don Tyler)
– Personnel Management (Don Tyler)
 Lesson 9- Production Plan
– Wade Polk
TTAP Agenda
Session II
 Lesson 10- Financial Plan
– Advanced Management Accounting (Brenda
Duckworth)
– Financial Plan (Stan Bevers)
– FARM Assistance (Wade Polk)
– Family Financial Plan (Jason Johnson)
TTAP Agenda
Session III
 Lesson 7- Legal & Liability Issues
– Contracts (Wayne Hayenga)
– Crop Insurance & LRP (Ken Stokes)
– TRAMM (Ins. Game) (Stan Bevers)
TTAP Agenda
Session III
 Lesson 11- Marketing Plan
– Requirements for an Effective Market (Stan
Bevers)
– Strategic vs. Tactical Plans (Stan Bevers)
– Agricultural Policy (Joe Outlaw)
– Concurrent Marketing Sessions
• Livestock- David Anderson
• Grains- Mark Waller
– Introduction to Futures & Options (Mark
Waller)
TTAP Agenda
Session IV
 Lesson 1- Executive Summary
– Stan Bevers
 Lesson 7- Legal & Liability Issues
– Legal & Liability (Judon Fambrough)
– Intergenerational Transfer (Wayne Hayenga)
TTAP Agenda
Session IV
 Role of Participant to Mentors (Jason
Johnson)
 Mentor Training (Jason Johnson)
 Presentation of Business Plans to Mentors
TTAP Agenda
Session IV
and finally…
TTAP Agenda
Session IV
Graduation!!
(whew….)
Implementation of Curriculum
 Each section relies on information from
other sections
– Resource inventory includes fixed (depreciable)
assets
 Sections should reconcile
– Resource inventory & depreciation schedule
Implementation of Curriculum
 When completed, producer has a
Management Plan of
Continuation
 Process is as important as end product!
Implementation of Curriculum
 Goals are determined according to
information gathered in process
 Goals must be revisited each year
– Were they attained? If not, why? If so, set
them higher.
Availability
 Texas Cooperative Extension Personnel
(handout)
 Website
– http://agrisk.tamu.edu