Business Planning and Financial Management

Learning Objectives

By the end of this module, participants will be able to:

• Provide examples of long-term and short-term goals for grazing operations.
• Name and describe at least three common grazing business models.
• Explain how tools like the Pasture Project Grassfed Calculator can help graziers understand their businesses.
• Explain why it’s important to know the payback period for on-farm investments.
• Name at least two sources of financing for small-scale agriculture.
• Describe at least one method for controlling costs.
• Define “contract grazing.”
• Name and describe at least two production claims or certifications that can increase selling prices.

Overview

Sound financial planning and management can make the difference between success and failure for a grazing operation. The goal of this module is to equip both new and experienced graziers with financial planning tools and knowledge.

Farming is a tough business. You may find yourself, at one time or another, with “too much month at the end of the money.” Every year, farms fail as a result of inadequate financial planning.

Running a successful farm takes careful financial planning. Your farm needs to be profitable enough to stay in business even after a bad season.

The good news is that there are many organizations, tools, and methods to help you understand and manage your farming business.

This module will largely focus on beef production, though some dairy business models are mentioned. General business planning and grazing concepts apply to both beef and dairy production, but dairy production requires specialized business planning that is beyond the scope of this module and curriculum.