SKILLS DEVELOPMENT
This information is based upon international best practice
models of business planning. Farmers and farm managers who use this information
to guide their business planning activities are following best practice principles.
By implementing the processes outlined in this website or
CDRom learners will be able to:
Arrange purchases and sales
- Determine marketing requirements
- Obtain market information
- Seek quotes
- Negotiate purchase and sales agreements
- Complete purchases/sales
Collate business information
- Determine information required by the enterprise
- Source relevant information
- Obtain information
- Provide information
- Store information
Operate within a budget framework
- Participate in formulation of budget
- Supervise financial transactions
Budget for farm production
- Assess financial resources
- Assess physical resources
- Assess personal resources
- Assess personal drawings
- Develop budgets
- Monitor budgets
Implement a property improvement
plan
- Agree on the improvement to be carried out
- Arrange the design and layout of the property improvements
- Order materials for property improvements
- Prepare sites for installation
Supervise installation and operation
of property improvements
- Carry out planned maintenance
- Supervise machinery and equipment maintenance operation
and adjustment
- Determine and check machinery and equipment
- maintenance procedures
- Establish and monitor machinery and equipment operation
standards
- Supervise machinery and equipment adjustment and calibration
Monitor and maintain stocks of
materials and produce on hand
- Set up inventory control systems
- Determine requirements of materials and produce for a planning
period
- Monitor stocks on handArrange purchases of materials
- Arrange production and storage of produce to be used on
farm
Review the strategic directions
of the business
- Determine sustainable and desirable directions
- and outcomes of the business for the long term
- Assess the environment external to the business
- Analyse the resources available to the business
- Select enterprises to be pursued
- Select and establish an appropriate business structure
Market products
- Analyse and evaluate the characteristics of markets for
existing and potential products
- Determine the marketing strategy to be used for each product
- Develop a marketing plan for each product
- Implement, monitor and evaluate marketing plans
Administer the business
- Determine the information needs of management
- Determine office location, layout and equipment
- Implement relevant administration procedures
- Communicate with various people in a farm business context
- Obtain information for use in the farm business
Rural Business Planning
- Specify farm business objectives and targets
- Prepare and assess a cash flow budget for the planning
period
- Test variations in enterprise mix and operation to assess
their effect on business performance
- Prepare trial profit and loss statements and balance sheets
- Identify and plan appropriate risk management strategies
- Identify the property improvements and developments to
be made during the planning period
- Determine the machinery and equipment requirements for
the planning period
- Determine the labour requirements for the business for
the planning period
- Determine the inputs and services required for the planning
period
- Identify the rights and obligations of the parties to contracts
relevant to farm business operation
- Determine and implement the business plan to be pursued
Monitor and evaluate business
performance
- Monitor the cash flow performance of the business
- Review and revise the business plan during the planning
period
- Develop and implement flexible responses to changing situations
in the planning period
- Review and revise risk management strategies
- Decide whether changes in plans, targets or objectives
are required
- Decide on alternative investments both on- and off-farm
and the appropriate levels of each
Manage pastures, fodder and crop
production
- Develop a production plan for pasture, fodder and crops
- Seek information on innovations related to existing or
potential enterprises and farm activities
- Test and, if appropriate, adopt relevant innovations
- Implement, monitor and evaluate the production plans for
crops and pastures
- Comply with legal requirements, regulations and codes of
practice
Manage livestock production
- Develop a livestock production plan
- Seek information on innovations related to existing or
potential enterprises and farm activities
- Test and, if appropriate, adopt relevant innovations
- Implement, monitor and evaluate livestock production plans
- Comply with legal requirements, regulations and codes of
practice
Manage physical and natural resources
- Prepare an inventory of physical and natural resources
- Map soils, topography and natural features
- Prepare whole-farm (physical resources) plan
- Implement plans for property improvements and developments
- Ensure yards and stock handling facilities are operated
safely and effectively
- Take necessary actions to protect assets
- Comply with legal requirements and regulations
Manage machinery
- Select machinery services suitable to farm operations
- Manage machinery maintenance
- Manage machinery operation
Manage irrigation systems
- Determine the feasibility of using irrigation
- Install an irrigation system
- Maintain the irrigation system
- Evaluate irrigation system performance
Manage borrowed funds
- Determine the financing needs of the business
- Assess all sources of finance
- Apply for finance
- Manage debt and/or equity finance
Manage the production system
- Integrate plans for pastures, crops and livestock
- Develop and implement risk management strategies
- Analyse the overall performance of the production system
- Participate in guiding industry research, development and
training
Manage human resources
- Implement appropriate self-management practices
- Prepare job and person specifications
- Arrange employment of workforce membersSupervise the farm
business workforce
- Implement relevant occupation health and safety procedures
- Plan and implement work program to achieve greater labour
productivity
- Terminate employment of particular staff as necessary
Plan succession, retirement and
an estate
- Plan succession
- Plan retirement
- Plan for estate distribution
- Review plans for management of estate transfer
Trading in Commodities, Products
and Prices
- Conduct market research
- Determine price required
- Select forward pricing method
- Implement Forward Pricing Plan
Install a Total Quality Management
System
- Define the required quality standards
- Determine performance benchmarks
- Set up performance indicators and monitoring systems
- Train operators to meet quality measures
- Implement the TQM system
Manage human interaction
- Manage staff interaction
- Manage family relationships
- Manage professional and business relationships
- Manage community/industry involvement
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