Personal Study Assignment #1: Inventory Assessment

Transcription

1 The purpose of this activity is for you to conduct an inventory of your farm business assets. Think about your farm business and list all of the assets you own and/or control that make up the farm business. This includes both the physical assets (land, livestock, equipment, buildings, etc.) and the human resource assets (people, management, skills, education, labor, etc.). This handout assignment also suggests questions you may consider and a procedure you may follow in developing an initial inventory of your current farm business. These activities are designed to help you think about your business and organize information that will be useful in developing a personal plan to manage risk. There is nothing special about these forms change them as you need and use more papers where needed, or use something different, but DO conduct and record an inventory. Please complete as much of these worksheets as you have time and energy to do. Don t get bogged down and stalled on any one item. If you don t know the answer, move on to areas that you can complete. Contact your Local Extension Educator as you have questions and they will help you. Be as descriptive and accurate as possible. This information is for your use and you do not have to share it with others. But please bring it with you to the second workshop because you will need to refer to this information as you proceed in preparing your own risk management plan. 1

2 Summary Description of the Farm Business Write a general description of your farm: I (we) operate a... Primary enterprises for the farm operation are: Secondary enterprises for the farm operation are: Summary of Total Crop and Non-Crop Acreage Owned, Leased and Operated Owned acres Leased FROM Others Leased TO Others Total Operated Crop land Pasture Farmstead (Nonuse land) Total Acreage Land Ownership: Describe how the land in your farm is owned. Who owns what land, how is it titled, what encumbrances are involved (debt-how much and who to, easements, etc.) Summary of Operated Cropland Usage If land is grazed Crop Enterprise Acreage Typical Yield Typical No. of Head Duration of grazing Pasture 2

3 Summary of Livestock Livestock No. of Head Age Weight Estimated Value Total Livestock Ownership: Describe how the livestock on your farm is owned. Who owns what livestock, how is it titled, what encumbrances are involved (debt-how much and who to, etc.) Livestock Management: Describe how the livestock on your farm is managed. How do you market your livestock, and are there any unusual or unique issues involved. Summary of Pasture Usage Duration of grazing Type of Animal grazed Number of head (eg., days, weeks, months) 3

4 Summary of Machinery and Equipment Owned, Leased, and Operated Item Age (Years) Market Value ($) Debt Owed ($) Productive Capacity* Equipment Ownership: Describe how the equipment on your farm is owned. Who owns what equipment, how is it titled, what encumbrances are involved (debt-how much and who to, etc.). Equipment Hire and Custom Machinery: Describe any custom machinery work that you do for others, and any custom machinery that you hire others to do for you. *Productive Capacity is a way to measure the capacity when the asset is used. Examples: tons of hay or number of bales a baler can bale in one day; acres a combine can harvested per hour or day. 4

5 Buildings and Structures Owned, Leased, and Operated Item Age (Years) Market Value ($) Debt Owed ($) Use and Productive Capacity* Structure Ownership: Describe how the buildings and structures on your farm are owned. Who owns what structures, how are they titled, what encumbrances are involved (debt-how much and who to, etc.). Specialized Structures: Describe any unique aspects to specialized structures on the farm and how they are a potential asset and/or potential risk to the farm business. *Productive Capacity is a way to measure the capacity when the asset is used. Examples: The number of cows a barn can shelter; number of bushel a bin can hold; potential use as a machine shed; structure could be used as chicken coop. 5

6 Inventory of the Human Resources Involved in the Farm Business Prepare 1 or 2 sentences to describe your current strategies or practices: Identify the current owners of the farm business (business ownership may differ from asset ownership). Describe which farm assets are owned by each business owner. Describe how the business owners are compensated for allowing their assets to be used in the farm business. Describe the agreement or understanding among the owners for sharing managerial responsibilities and authorities. Describe the estate planning status of the farm owners, including any intergenerational transfer plans. (This includes a discussion of wills and other legal estate planning documents and plans). Describe your labor practices. Comment on labor needs and availability. List your use of and/or need of custom operators, professionals, or consultants. 6