NC State Extension

Session 3

Below we have outlined what you should accomplish in session 3 to stay on track with your business plan. Don’t forget that you need to be working on your business plan on the Ag Plan website as you are going through the Chapter 3 exercises. Chapter 3 is all about developing your startup cost and translating those cost to the annual ownership cost that we will be using to develop your enterprise budget next week. Below are some resources that we have made available to you to help you begin that process.

Things we did in Class:

For Homework:

  • Read Chapter 3
  • Complete the Take Home Assignment: Session 3 Take-Home Activity
  • Click to use Chapter 3 generic captial budget template the  to create your farms complete capital budget and estimate your cost of ownership, use the excel versions below with the links in the tools to put together your cost assumptions for each enterprise you are thinking of adding to your farm.

Production Considerations for Capitol Budgets:

If you are having trouble getting started because you are unsure of the equipment you need you can always refer to the production materials that were listed in chapter 1. The link is below and will help you better understand the production system for the enterprise you are considering.

Capital Budget Templates to help you develop Start Up Cost:

Below you will find capital budgets templates and cost consideration templates you may need to estimate some of your start-up cost. Some of these are challenging to estimate so we have included tools to help you generate some estimates for your property.

Cost Considerations:

capital budget templates:

Using Enterprise Budgets to help you develop Start Up Cost:

Below are listed the enterprise budgets that were listed last month to help you estimate per unit returns for the crops you might be interested in. When you pull up these budgets be paying attention to the equipment that they have listed and the operating expenses that might be associated with them. For example, you will find that the tomato budget for Florida has “mulch bed” listed in the equipment needs on page two and also has “black plastic” listed in the variable cost (click here to see the Florida tomato budget). From this, we can assume we would want to consider the start-up cost associated with a plastic mulch layer or understand the cost of renting one to get started. Take advantage of the budgets below and the production considerations above to think about how you will produce your crops and estimate your equipment needs.

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ask us a question on session 3