Business Plan

Introduction Financial and economic considerations such as limited capital, untimely cash flow, insufficient labor, small acreage or other reasons require farmers to hire custom service for field operations. Custom work charges are determined by demand and supply and are negotiated between farmers and custom operators. The purpose of this publication is to provide information on custom work charges in Maryland and to provide data to assist in decision-making regarding purchasing equipment.

Depending on your source, it is estimated 40% to 70% of family farms will transition over the next 15 years, and 80% of the rented farmland in our country could be owned and controlled by those who didn't grow up on the farm or operate it themselves. While there are many causes for concern in these statements, you should be asking yourself if you have done all I can to ensure your farm business survives. In some cases, it will not because you have no successor within your family and you have chosen not to seek one from outside.

These are difficult days for dairy farmers. After the high milk prices of 2014, prices have plummeted with no significant upturn in sight. Large dairies across the country have captured economies of scale that turn a profit at these low prices. So as small dairies go out of business, the large dairies continue to expand, maintaining the supply that suppresses the prices.

What price are you getting per cwt of milk? Like most dairy farmers, you know the price or you can get it quickly by reviewing milk check receipts. How much does it cost you to produce a cwt of milk? Like many dairy farmers, you may not know. Dairy farming is complex, and determining your costs of production is sometimes difficult. Yet, your costs directly affect your profit, and it is important to understand them.

December is often a “Slam” month for most direct marketers. Holiday sales, year-end inventories to conduct, annual profit projections, and the final push of multiple last quarter marketing initiatives that were often launched even before Halloween. The major goal is to end the year in the financial black. Other goals now take a back seat.

A continuity of business (C.O.B) plan is created to outline business functions in the event of a major disruption. It addresses issues such as loss of income, protecting employees and essential business activities. Businesses large and small should develop a plan and create a document that shares essential business operations in preparation, during and following a major disruption in business operations.

Your Ag Business Venture: Dream, Plan, Implement is a guide designed to put you in the driver's seat while on the road to making your ag business idea a reality. There are many good tools and resources within this guide to help you along the way.