Farm Business Planning
There are two essential steps in the planning process. The first step is the “thinking process” behind what you are intending to do. In this workbook this is referred to as the “farm plan”. This must be completed by the farmer before a financial plan is completed. It involves asking yourself a series of questions on where you are going, how you will get there and what extra profit or benefits your plan is expected to generate. Many of these ideas are already in your head but writing them down will help clarify them for you. It will also help in preparing your financial plan and give you a much better understanding of the background to the figures in your financial plan.
The second step is the “financial process” where all your financial details are analysed for your farm and family circumstances to examine if your proposed farm plan is actually viable. This is referred to as the financial plan.
Teagasc have developed a workbook to assist in preparing the Farm Plan.
Download the workbook in full: My Farm, My Plan - Planning for my Future (PDF).
The individual stages in preparing the farm plan and the associated templates to assist in the planning process, all of which are outlined in the workbook, can be filled in on-screen by selecting the following links:
Stage 1: Thinking about where you are going
Takes you through the following questions -
- Why are you farming?
- What are you thinking of doing?
- How is this going to deliver on your reasons for farming?
Stage 2: Thinking about what you have to do
- Where are you now?
- What are the main issues you must focus on?
- What do you have to do to get there?
- When will you make these changes?
- How will your plan affect your working day?
Stage 3: Extra costs, extra revenues and extra risks
- What are the extra costs?
- What extra revenue will be generated?
- Is it worthwhile?
- What could go wrong?
The financial plan
Stage 4: Developing a financial plan