I. General Information
1. Course Title:
Introduction to Farm Business Management
2. Course Prefix & Number:
FBMT 1211
3. Course Credits and Contact Hours:
Credits: 4
4. Course Description:
This course introduces basic farm business management concepts. Students will study the farm management planning cycle and develop an understanding of its relationship to family and farm business goal setting, cash and enterprise accounting principles, and tax planning.
5. Placement Tests Required:
Accuplacer (specify test): |
No placement tests required |
Score: |
|
6. Prerequisite Courses:
FBMT 1211 - Introduction to Farm Business Management
There are no prerequisites for this course.
9. Co-requisite Courses:
FBMT 1211 - Introduction to Farm Business Management
There are no corequisites for this course.
II. Transfer and Articulation
III. Course Purpose
1. Program-Applicable Courses – This course is required for the following program(s):
Essentials in Farm Business Management Certificate
IV. Learning Outcomes
1. College-Wide Outcomes
College-Wide Outcomes/Competencies |
Students will be able to: |
Demonstrate interpersonal communication skills |
Examine with instructor the farm management cycle concept |
Analyze and follow a sequence of operations |
Examine procedures for goal setting, cash accounting principles and tax planning |
Work as a team member to achieve shared goals |
Coordinate with family and/or labor pool desired goal outcomes |
2. Course Specific Outcomes - Students will be able to achieve the following measurable goals upon completion of
the course:
- Explain the farm business management cycle to include planning, implementation, and controlling;
- Describe a risk management assessment in all aspects of both farm and non-farm operations;
- Explain tax and management depreciation;
- List income and expenses for the tax year;
- Describe characteristics within different farm business enterprises;
- Identify a financial and production record-keeping system;
- Describe the components of a balance sheet;
- Identify available technologies for improving the farm business;
- Identify business, family, and personal goals;
- Identify current enterprise resource needs;
- List time management strategies for the operation; and
- Recognize how current tax return impacts your farm business.
V. Topical Outline
Listed below are major areas of content typically covered in this course.
1. Lecture Sessions
1. Explain the farm business management cycle to include planning, implementation, and controlling
- Students will demonstrate competence by doing the following:
- Implement the Farm Business Cycle in your farm operation
- Students will show understanding through the following:
- Develop of a checklist of the tasks included in the farm management cycle
- Discuss an individual plan with instructor
- Implement the items on your checklist of tasks
2. Describe a risk management assessment in all aspects of both farm and non-farm operations
- Students will demonstrate competence by doing the following:
- Complete a risk assessment
- Students will show understanding through the following:
- complete a current farm fire, wind, and liability assessment
- complete a health, disability, and long-term care assessment
- complete a comprehensive life insurance assessment
- complete a federal crop insurance assessment
- complete an assessment of your estate plan/will/trust
- complete an assessment of market risk for market livestock and crops
3. Explain tax and management depreciation
- Students will demonstrate competence by doing the following:
- Explain the difference between tax and management depreciation
- Students will show understanding through the following:
- Secure the current tax depreciation schedule(s) for your farm business
- Explain the objective of management depreciation
- Explain the objective of tax depreciation
- Discuss the depreciation differences with instructor
4. List income and expenses for the tax year
- Students will demonstrate competence by doing the following:
- Complete list of year-to-date income and expenses
- Estimate list of income and expenses that will occur before the end of the tax year
- Assemble all data needed to complete an income tax estimate
- Students will show understanding through the following:
- Complete a YTD actual income and expense summary
- Complete a projection of remainder of year income and expenses
- Develop a complete list of all capital purchases and anticipated capital purchases
- Secure a copy of your most recent tax depreciation schedule(s)
5. Describe characteristics within different farm business enterprises
- Students will demonstrate competence by doing the following:
- List the crop, livestock, and/or value-added enterprises for your farming operation
- Students will show understanding through the following:
- List all livestock enterprises for your farm operation
- List all crop enterprises for your farm operation
- List value-added enterprises for your farm operation.
- Explain the difference between general or whole farm, family, and production enterprises
6. Identify a financial and production record-keeping system
- Students will demonstrate competence by doing the following:
- Use an appropriate system (computerized or paper/pencil)
- Students will show understanding through the following:
- Record system includes comprehensive chart of accounts to track income and expense
- Record system includes all enterprises for the farm
- Record system can be reconciled with bank statement
- Record system includes all supplemental crop and livestock production data
7. Describe the components of a balance sheet
- Students will demonstrate competence by doing the following:
- Complete a financial statement
- Students will show understanding through the following:
- Financial statement includes all current assets and liabilities
- Financial statement includes all intermediate assets and liabilities
- Financial statement includes all long-term assets and liabilities
- Financial statement includes deferred tax liability
8. Identify available technologies for improving the farm business
- Students will demonstrate competence by doing the following:
- Investigate technologies for improving your farm business
- Students will show understanding through the following:
- List the present technologies utilized on your farm
- Identify the technologies that are available for your livestock and crop production systems
- Identify the technologies that will improve your farm business record system
9. Identify business, family, and personal goals
- Students will demonstrate competence by doing the following:
- Students will show understanding through the following:
- Write three short term goals
- Write three intermediate goals
- Write three long term goals
- Goals are specific, measurable, attainable, realistic, and time limited (SMART)
- Goals include ways to participate in business professional organizations
- Goals include plans for personal retirement
10. Identify current enterprise resource needs (i.e. feed, seed, fertilizer)
- Students will demonstrate competence by doing the following:
- Develop an enterprise budget
- Students will show understanding through the following:
- Enterprise budget includes production by unit
- Enterprise budget includes projected price per unit
- Enterprise budget includes all direct costs per unit (i.e. fertilizer seed chem, breeding, vet, feed)
- Enterprise budget includes number of units for the year (i.e. number of head, acres)
- Enterprise budget includes inventory disappearance (shrink/death loss, feed fed)
11. List time management strategies for the operation
- Students will demonstrate competence by doing the following:
- Develop a list of time management strategies
- Students will show understanding through the following:
- Create and prioritize a list of daily tasks
- Create a daily management routine
- Implement a plan to effectively address and file daily correspondence
12. Recognize how current tax return impacts your farm business