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How Profitable Will My New Orchard Investment Be? Zoom Series

In the long run, it is only worthwhile to grow and sell a product if the price customers are willing to pay for the product exceeds all costs incurred to produce and sell it while earning a reasonable return on your invested capital (financial and human).

The purpose of each class is to give you some of the tools you need, as an orchard owner, to assess whether an investment or long-term change in your orchard business makes sense and to help you choose among potential options.  Although this class will used orchard businesses as the framework, most of the concepts I will cover are applicable to any business situation.

The focus on this series is decision making and by extension risk reduction.  I say risk reduction because a good decision does not necessarily mean a good outcome.  Bad luck or unanticipated issues can result in bad outcomes even when good decisions were made.  But the best protection you have against a bad outcome is a well-informed good decision. Our goal is to help you make good, informed decisions with the data you have available. 

All webinars are free.  They will each be around an hour long and cover a specific topic.  They will be recorded so that if you miss a program you can view it later.  You must register to attend the webinars. 

To register for the series, go to: Webinar Registration



WEBINAR SCHEDULE

December 5 (12:30-1:30) Webinar 1 - Looking at the Big Financial Picture for Your Farm

Your farm's big-3 financial records (balance sheet, income statement and statement of cash flow) and how to use them to assess your overall financial situation. This information will help you assess what types of investments are likely to be viable for your farm business and whether or not you are likely to be able to use credit to finance that investment.  We will specifically cover Farm Profitability, Cash Flow, and Key Financial Ratios.  

December 6 (12:30-1:30) Webinar 2 - Business Strategy and the Farm Business Value Chain

How do you create value?  How do you differentiate yourself from your competitors?  In other words - what is your farm's business strategy?  Your investments should be in line with your strategy.  Different business strategies will result in investments in different parts of the Farm Business Value Chain.  Farm Business Value Chain - full range of activities needed to create a product or service.

December 7 (12:30-1:30) Webinar 3 - Using Your Farm's Financial Data to Make Management Decisions

Identifying the Enterprises in Your Value Chain.  Your Profit Centers and Cost Centers.  We will cover: Direct vs Indirect Costs and Cost Allocation and Variable vs Fixed Costs and Relevant Range (when does a fixed cost become a variable cost?)

December 8 (12:30-1:30) Webinar 4 - Operating Budgets and Strategic Planning

Operating budgets are the overall financial plan for the business.  You can use a budget based on your current situation as the base to model new scenarios.

December 12 (12:30-1:30) Webinar 5 - Enterprise Budgets

It is more time-consuming to develop detailed budgets for your enterprises, but it is worthwhile to do this for area where you are considering making major investments.  We will demonstrate how to move from an operating budget to an enterprise budget to model specific scenarios within that enterprise. 

December 13 (12:30-1:30) Webinar 6 - 5 Step Decision-making Process for Capital Projects and Long-term Investments

Introduces a structured process for a manager to go through to decide among options for long-term investments, projects or changes to the farm business.

December 14 (12:30-1:30) Webinar 7 - Cost Volume Profit Analysis and Sensitivity Analysis. 

As you change your prices, volume of sales or costs of production how does your profit change?  What is your break-even point and what output level do you need to achieve a target income? We will also cover sensitivity analysis that will help you see how your results will vary over a range of likely scenarios from best case to worst case.  This will help you assess the riskiness of your plan.

December 15 (12:30-1:30) Webinar 8 - Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Capital budgeting is defined as the process used to determine whether capital assets are worth investing in. it's the process of asking: is an asset worth the resources it requires?  Capital assets are usually long-term investments like new equipment, facilities, and other infrastructure upgrades. By incorporating strategically planned capital budgeting into their financial processes, companies can more effectively determine and prioritize which projects, programs and other investment assets could be most financially beneficial in the long-term.






Event Details

Looking at the Big Financial Picture for Your Farm

Date

December 5, 2022

Time

12:30-1:30

Location

Zoom (Online Webinar)

Host

Eastern New York Commercial Horticulture


Looking at the Big Financial Picture for Your Farm



This is the first webinar in the free, 8-webinar series "How Profitable Will My New Orchard Investment Be?"  To register for the series, go to: Webinar Registration

Looking at the Big Financial Picture for Your Farm

Your farm's big-3 financial records (balance sheet, income statement and statement of cash flow) and how to use them to assess your overall financial situation. This information will help you assess what types of investments are likely to be viable for your farm business and whether or not you are likely to be able to use credit to finance that investment.  We will specifically cover Farm Profitability, Cash Flow, and Key Financial Ratios.  


The other webinars in the series are: 


December 6 (12:30-1:30) Webinar 2 - Business Strategy and the Farm Business Value Chain

How do you create value?  How do you differentiate yourself from your competitors?  In other words - what is your farm's business strategy?  Your investments should be in line with your strategy.  Different business strategies will result in investments in different parts of the Farm Business Value Chain.  Farm Business Value Chain - full range of activities needed to create a product or service.

December 7 (12:30-1:30) Webinar 3 - Using Your Farm's Financial Data to Make Management Decisions

Identifying the Enterprises in Your Value Chain.  Your Profit Centers and Cost Centers.  We will cover: Direct vs Indirect Costs and Cost Allocation and Variable vs Fixed Costs and Relevant Range (when does a fixed cost become a variable cost?)

December 8 (12:30-1:30) Webinar 4 - Operating Budgets and Strategic Planning

Operating budgets are the overall financial plan for the business.  You can use a budget based on your current situation as the base to model new scenarios.

December 12 (12:30-1:30) Webinar 5 - Enterprise Budgets

It is more time-consuming to develop detailed budgets for your enterprises, but it is worthwhile to do this for area where you are considering making major investments.  We will demonstrate how to move from an operating budget to an enterprise budget to model specific scenarios within that enterprise. 

December 13 (12:30-1:30) Webinar 6 - 5 Step Decision-making Process for Capital Projects and Long-term Investments

Introduces a structured process for a manager to go through to decide among options for long-term investments, projects or changes to the farm business.

December 14 (12:30-1:30) Webinar 7 - Cost Volume Profit Analysis and Sensitivity Analysis. 

As you change your prices, volume of sales or costs of production how does your profit change?  What is your break-even point and what output level do you need to achieve a target income? We will also cover sensitivity analysis that will help you see how your results will vary over a range of likely scenarios from best case to worst case.  This will help you assess the riskiness of your plan.

December 15 (12:30-1:30) Webinar 8 - Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Capital budgeting is defined as the process used to determine whether capital assets are worth investing in. it's the process of asking: is an asset worth the resources it requires?  Capital assets are usually long-term investments like new equipment, facilities, and other infrastructure upgrades. By incorporating strategically planned capital budgeting into their financial processes, companies can more effectively determine and prioritize which projects, programs and other investment assets could be most financially beneficial in the long-term.





Event Details

Business Strategy and the Farm Value Chain

Date

December 6, 2022

Time

12:30-1:30

Location

Zoom (online class)

Host

Eastern New York Commercial Horticulture


Business Strategy and the Farm Value Chain



This is the second webinar in the free, 8-webinar series "How Profitable Will My New Orchard Investment Be?"  To register for the series, go to: Webinar Registration

Business Strategy and the Farm Business Value Chain

How do you create value?  How do you differentiate yourself from your competitors?  In other words - what is your farm's business strategy?  Your investments should be in line with your strategy.  Different business strategies will result in investments in different parts of the Farm Business Value Chain.  Farm Business Value Chain - full range of activities needed to create a product or service.


The ptjer webinars in the series are: 


December 5 (12:30-1:30) Webinar 1 - Looking at the Big Financial Picture for Your Farm

Your farm's big-3 financial records (balance sheet, income statement and statement of cash flow) and how to use them to assess your overall financial situation. This information will help you assess what types of investments are likely to be viable for your farm business and whether or not you are likely to be able to use credit to finance that investment.  We will specifically cover Farm Profitability, Cash Flow, and Key Financial Ratios. 

December 7 (12:30-1:30) Webinar 3 - Using Your Farm's Financial Data to Make Management Decisions

Identifying the Enterprises in Your Value Chain.  Your Profit Centers and Cost Centers.  We will cover: Direct vs Indirect Costs and Cost Allocation and Variable vs Fixed Costs and Relevant Range (when does a fixed cost become a variable cost?)

December 8 (12:30-1:30) Webinar 4 - Operating Budgets and Strategic Planning

Operating budgets are the overall financial plan for the business.  You can use a budget based on your current situation as the base to model new scenarios.

December 12 (12:30-1:30) Webinar 5 - Enterprise Budgets

It is more time-consuming to develop detailed budgets for your enterprises, but it is worthwhile to do this for area where you are considering making major investments.  We will demonstrate how to move from an operating budget to an enterprise budget to model specific scenarios within that enterprise. 

December 13 (12:30-1:30) Webinar 6 - 5 Step Decision-making Process for Capital Projects and Long-term Investments

Introduces a structured process for a manager to go through to decide among options for long-term investments, projects or changes to the farm business.

December 14 (12:30-1:30) Webinar 7 -  Cost Volume Profit Analysis and Sensitivity Analysis. 

As you change your prices, volume of sales or costs of production how does your profit change?  What is your break-even point and what output level do you need to achieve a target income? We will also cover sensitivity analysis that will help you see how your results will vary over a range of likely scenarios from best case to worst case.  This will help you assess the riskiness of your plan.

December 15 (12:30-1:30) Webinar 8 - Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Capital budgeting is defined as the process used to determine whether capital assets are worth investing in. it's the process of asking: is an asset worth the resources it requires?  Capital assets are usually long-term investments like new equipment, facilities, and other infrastructure upgrades. By incorporating strategically planned capital budgeting into their financial processes, companies can more effectively determine and prioritize which projects, programs and other investment assets could be most financially beneficial in the long-term.





Event Details

Using Your Farm's Financial Data to Make Management Decisions

Date

December 7, 2022

Time

12:30-1:30

Location

Zoom (online class)

Host

Eastern New York Commercial Horticulture


Using Your Farm's Financial Data to Make Management Decisions



This is the third webinar in the free, 8-webinar series "How Profitable Will My New Orchard Investment Be?"  To register for the series, go to: Webinar Registration

Using Your Farm's Financial Data to Make Management Decisions

Identifying the Enterprises in Your Value Chain.  Your Profit Centers and Cost Centers.  We will cover: Direct vs Indirect Costs and Cost Allocation and Variable vs Fixed Costs and Relevant Range (when does a fixed cost become a variable cost?)


The other webinars in the series are: 


December 5 (12:30-1:30) Webinar 1 - Looking at the Big Financial Picture for Your Farm

Your farm's big-3 financial records (balance sheet, income statement and statement of cash flow) and how to use them to assess your overall financial situation. This information will help you assess what types of investments are likely to be viable for your farm business and whether or not you are likely to be able to use credit to finance that investment.  We will specifically cover Farm Profitability, Cash Flow, and Key Financial Ratios. 

December 6 (12:30-1:30) Webinar 2 - Business Strategy and the Farm Business Value Chain

How do you create value?  How do you differentiate yourself from your competitors?  In other words - what is your farm's business strategy?  Your investments should be in line with your strategy.  Different business strategies will result in investments in different parts of the Farm Business Value Chain.  Farm Business Value Chain - full range of activities needed to create a product or service.

December 8 (12:30-1:30) Webinar 4 - Operating Budgets and Strategic Planning

Operating budgets are the overall financial plan for the business.  You can use a budget based on your current situation as the base to model new scenarios.

December 12 (12:30-1:30) Webinar 5 - Enterprise Budgets

It is more time-consuming to develop detailed budgets for your enterprises, but it is worthwhile to do this for area where you are considering making major investments.  We will demonstrate how to move from an operating budget to an enterprise budget to model specific scenarios within that enterprise. 

December 13 (12:30-1:30) Webinar 6 - 5 Step Decision-making Process for Capital Projects and Long-term Investments

Introduces a structured process for a manager to go through to decide among options for long-term investments, projects or changes to the farm business.

December 14 (12:30-1:30) Webinar 7 - Cost Volume Profit Analysis and Sensitivity Analysis. 

As you change your prices, volume of sales or costs of production how does your profit change?  What is your break-even point and what output level do you need to achieve a target income? We will also cover sensitivity analysis that will help you see how your results will vary over a range of likely scenarios from best case to worst case.  This will help you assess the riskiness of your plan.

December 15 (12:30-1:30) Webinar 8 - Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Capital budgeting is defined as the process used to determine whether capital assets are worth investing in. it's the process of asking: is an asset worth the resources it requires?  Capital assets are usually long-term investments like new equipment, facilities, and other infrastructure upgrades. By incorporating strategically planned capital budgeting into their financial processes, companies can more effectively determine and prioritize which projects, programs and other investment assets could be most financially beneficial in the long-term.





Event Details

Operating Budgets and Strategic Planning

Date

December 8, 2022

Time

12:30-1:30

Location

Zoom (online class)

Host

Eastern New York Commercial Horticulture


Operating Budgets and Strategic Planning



This is the fourth webinar in the free, 8-webinar series "How Profitable Will My New Orchard Investment Be?"  To register for the series, go to: Webinar Registration

Operating Budgets and Strategic Planning

Operating budgets are the overall financial plan for the business.  You can use a budget based on your current situation as the base to model new scenarios.


The other webinars in the series are: 

December 5 (12:30-1:30) Webinar 1 - Looking at the Big Financial Picture for Your Farm

Your farm's big-3 financial records (balance sheet, income statement and statement of cash flow) and how to use them to assess your overall financial situation. This information will help you assess what types of investments are likely to be viable for your farm business and whether or not you are likely to be able to use credit to finance that investment.  We will specifically cover Farm Profitability, Cash Flow, and Key Financial Ratios. 

December 6 (12:30-1:30) Webinar 2 - Business Strategy and the Farm Business Value Chain

How do you create value?  How do you differentiate yourself from your competitors?  In other words - what is your farm's business strategy?  Your investments should be in line with your strategy.  Different business strategies will result in investments in different parts of the Farm Business Value Chain.  Farm Business Value Chain - full range of activities needed to create a product or service.

December 7 (12:30-1:30) Webinar 3 - Using Your Farm's Financial Data to Make Management Decisions

Identifying the Enterprises in Your Value Chain.  Your Profit Centers and Cost Centers.  We will cover: Direct vs Indirect Costs and Cost Allocation and Variable vs Fixed Costs and Relevant Range (when does a fixed cost become a variable cost?)

December 12 (12:30-1:30) Webinar 5 - Enterprise Budgets

It is more time-consuming to develop detailed budgets for your enterprises, but it is worthwhile to do this for area where you are considering making major investments.  We will demonstrate how to move from an operating budget to an enterprise budget to model specific scenarios within that enterprise. 

December 13 (12:30-1:30) Webinar 6 - 5 Step Decision-making Process for Capital Projects and Long-term Investments

Introduces a structured process for a manager to go through to decide among options for long-term investments, projects or changes to the farm business.

December 14 (12:30-1:30) Webinar 7 - Cost Volume Profit Analysis and Sensitivity Analysis. 

As you change your prices, volume of sales or costs of production how does your profit change?  What is your break-even point and what output level do you need to achieve a target income? We will also cover sensitivity analysis that will help you see how your results will vary over a range of likely scenarios from best case to worst case.  This will help you assess the riskiness of your plan.

December 15 (12:30-1:30) Webinar 8 - Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Capital budgeting is defined as the process used to determine whether capital assets are worth investing in. it's the process of asking: is an asset worth the resources it requires?  Capital assets are usually long-term investments like new equipment, facilities, and other infrastructure upgrades. By incorporating strategically planned capital budgeting into their financial processes, companies can more effectively determine and prioritize which projects, programs and other investment assets could be most financially beneficial in the long-term.





Event Details

Enterprise Budgets

Date

December 12, 2022

Time

12:30-1:30

Location

Zoom (online class)

Host

Eastern New York Commercial Horticulture


Enterprise Budgets



This is the fifth webinar in the free, 8-webinar series "How Profitable Will My New Orchard Investment Be?"  To register for the series, go to: Webinar Registration

Enterprise Budgets

It is more time-consuming to develop detailed budgets for your enterprises, but it is worthwhile to do this for area where you are considering making major investments.  We will demonstrate how to move from an operating budget to an enterprise budget to model specific scenarios within that enterprise. 


The other webinars in the series are: 


December 5 (12:30-1:30) Webinar 1 - Looking at the Big Financial Picture for Your Farm

Your farm's big-3 financial records (balance sheet, income statement and statement of cash flow) and how to use them to assess your overall financial situation. This information will help you assess what types of investments are likely to be viable for your farm business and whether or not you are likely to be able to use credit to finance that investment.  We will specifically cover Farm Profitability, Cash Flow, and Key Financial Ratios. 

December 6 (12:30-1:30) Webinar 2 - Business Strategy and the Farm Business Value Chain

How do you create value?  How do you differentiate yourself from your competitors?  In other words - what is your farm's business strategy?  Your investments should be in line with your strategy.  Different business strategies will result in investments in different parts of the Farm Business Value Chain.  Farm Business Value Chain - full range of activities needed to create a product or service.

December 7 (12:30-1:30) Webinar 3 - Using Your Farm's Financial Data to Make Management Decisions

Identifying the Enterprises in Your Value Chain.  Your Profit Centers and Cost Centers.  We will cover: Direct vs Indirect Costs and Cost Allocation and Variable vs Fixed Costs and Relevant Range (when does a fixed cost become a variable cost?)

December 8 (12:30-1:30) Webinar 4 - Operating Budgets and Strategic Planning

Operating budgets are the overall financial plan for the business.  You can use a budget based on your current situation as the base to model new scenarios.

December 13 (12:30-1:30) Webinar 6 - 5 Step Decision-making Process for Capital Projects and Long-term Investments

Introduces a structured process for a manager to go through to decide among options for long-term investments, projects or changes to the farm business.

December 14 (12:30-1:30) Webinar 7 - Cost Volume Profit Analysis and Sensitivity Analysis. 

As you change your prices, volume of sales or costs of production how does your profit change?  What is your break-even point and what output level do you need to achieve a target income? We will also cover sensitivity analysis that will help you see how your results will vary over a range of likely scenarios from best case to worst case.  This will help you assess the riskiness of your plan.

December 15 (12:30-1:30) Webinar 8 - Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Capital budgeting is defined as the process used to determine whether capital assets are worth investing in. it's the process of asking: is an asset worth the resources it requires?  Capital assets are usually long-term investments like new equipment, facilities, and other infrastructure upgrades. By incorporating strategically planned capital budgeting into their financial processes, companies can more effectively determine and prioritize which projects, programs and other investment assets could be most financially beneficial in the long-term.





Event Details

5 Step Decision-making Process for Capital Projects and Long-term Investments

Date

December 13, 2022

Time

12:30-1:30

Location

Zoom (online class)

Host

Eastern New York Commercial Horticulture


5 Step Decision-making Process for Capital Projects and Long-term Investments



This is the sixth webinar in the free, 8-webinar series "How Profitable Will My New Orchard Investment Be?"  To register for the series, go to: Webinar Registration

5 Step Decision-making Process for Capital Projects and Long-term Investments

Introduces a structured process for a manager to go through to decide among options for long-term investments, projects or changes to the farm business.


The other webinars in the series are: 


December 5 (12:30-1:30) Webinar 1 - Looking at the Big Financial Picture for Your Farm

Your farm's big-3 financial records (balance sheet, income statement and statement of cash flow) and how to use them to assess your overall financial situation. This information will help you assess what types of investments are likely to be viable for your farm business and whether or not you are likely to be able to use credit to finance that investment.  We will specifically cover Farm Profitability, Cash Flow, and Key Financial Ratios. 

December 6 (12:30-1:30) Webinar 2 - Business Strategy and the Farm Business Value Chain

How do you create value?  How do you differentiate yourself from your competitors?  In other words - what is your farm's business strategy?  Your investments should be in line with your strategy.  Different business strategies will result in investments in different parts of the Farm Business Value Chain.  Farm Business Value Chain - full range of activities needed to create a product or service.

December 7 (12:30-1:30) Webinar 3 - Using Your Farm's Financial Data to Make Management Decisions

Identifying the Enterprises in Your Value Chain.  Your Profit Centers and Cost Centers.  We will cover: Direct vs Indirect Costs and Cost Allocation and Variable vs Fixed Costs and Relevant Range (when does a fixed cost become a variable cost?)

December 8 (12:30-1:30) Webinar 4 - Operating Budgets and Strategic Planning

Operating budgets are the overall financial plan for the business.  You can use a budget based on your current situation as the base to model new scenarios.

December 12 (12:30-1:30) Webinar 5 - Enterprise Budgets

It is more time-consuming to develop detailed budgets for your enterprises, but it is worthwhile to do this for area where you are considering making major investments.  We will demonstrate how to move from an operating budget to an enterprise budget to model specific scenarios within that enterprise. 

December 14 (12:30-1:30) Webinar 7 - Cost Volume Profit Analysis and Sensitivity Analysis. 

As you change your prices, volume of sales or costs of production how does your profit change?  What is your break-even point and what output level do you need to achieve a target income? We will also cover sensitivity analysis that will help you see how your results will vary over a range of likely scenarios from best case to worst case.  This will help you assess the riskiness of your plan.

December 15 (12:30-1:30) Webinar 8 - Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Capital budgeting is defined as the process used to determine whether capital assets are worth investing in. it's the process of asking: is an asset worth the resources it requires?  Capital assets are usually long-term investments like new equipment, facilities, and other infrastructure upgrades. By incorporating strategically planned capital budgeting into their financial processes, companies can more effectively determine and prioritize which projects, programs and other investment assets could be most financially beneficial in the long-term.





Event Details

Cost Volume Profit Analysis and Sensitivity Analysis

Date

December 14, 2022

Time

12:30-1:30

Location

Zoom (online class)

Host

Eastern New York Commercial Horticulture


Cost Volume Profit Analysis and Sensitivity Analysis



This is the seventh webinar in the free, 8-webinar series "How Profitable Will My New Orchard Investment Be?"  To register for the series, go to: Webinar Registration

Cost Volume Profit Analysis and Sensitivity Analysis. 

As you change your prices, volume of sales or costs of production how does your profit change?  What is your break-even point and what output level do you need to achieve a target income? We will also cover sensitivity analysis that will help you see how your results will vary over a range of likely scenarios from best case to worst case.  This will help you assess the riskiness of your plan.


The other webinars in the series are: 


December 5 (12:30-1:30) Webinar 1 - Looking at the Big Financial Picture for Your Farm

Your farm's big-3 financial records (balance sheet, income statement and statement of cash flow) and how to use them to assess your overall financial situation. This information will help you assess what types of investments are likely to be viable for your farm business and whether or not you are likely to be able to use credit to finance that investment.  We will specifically cover Farm Profitability, Cash Flow, and Key Financial Ratios. 

December 6 (12:30-1:30) Webinar 2 - Business Strategy and the Farm Business Value Chain

How do you create value?  How do you differentiate yourself from your competitors?  In other words - what is your farm's business strategy?  Your investments should be in line with your strategy.  Different business strategies will result in investments in different parts of the Farm Business Value Chain.  Farm Business Value Chain - full range of activities needed to create a product or service.

December 7 (12:30-1:30) Webinar 3 - Using Your Farm's Financial Data to Make Management Decisions

Identifying the Enterprises in Your Value Chain.  Your Profit Centers and Cost Centers.  We will cover: Direct vs Indirect Costs and Cost Allocation and Variable vs Fixed Costs and Relevant Range (when does a fixed cost become a variable cost?)

December 8 (12:30-1:30) Webinar 4 - Operating Budgets and Strategic Planning

Operating budgets are the overall financial plan for the business.  You can use a budget based on your current situation as the base to model new scenarios.

December 12 (12:30-1:30) Webinar 5 - Enterprise Budgets

It is more time-consuming to develop detailed budgets for your enterprises, but it is worthwhile to do this for area where you are considering making major investments.  We will demonstrate how to move from an operating budget to an enterprise budget to model specific scenarios within that enterprise. 

December 13 (12:30-1:30) Webinar 6 - 5 Step Decision-making Process for Capital Projects and Long-term Investments

Introduces a structured process for a manager to go through to decide among options for long-term investments, projects or changes to the farm business.

December 15 (12:30-1:30) Webinar 8 - Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Capital budgeting is defined as the process used to determine whether capital assets are worth investing in. it's the process of asking: is an asset worth the resources it requires?  Capital assets are usually long-term investments like new equipment, facilities, and other infrastructure upgrades. By incorporating strategically planned capital budgeting into their financial processes, companies can more effectively determine and prioritize which projects, programs and other investment assets could be most financially beneficial in the long-term.





Event Details

Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Date

December 15, 2022

Time

12:30-1:30

Location

Zoom (online class)

Host

Eastern New York Commercial Horticulture


Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period



This is the last webinar in the free, 8-webinar series "How Profitable Will My New Orchard Investment Be?"  To register for the series, go to: Webinar Registration

Capital Budgeting Tools - Net Present Value, Internal Rate of Return, and Payback Period

Capital budgeting is defined as the process used to determine whether capital assets are worth investing in. it's the process of asking: is an asset worth the resources it requires?  Capital assets are usually long-term investments like new equipment, facilities, and other infrastructure upgrades. By incorporating strategically planned capital budgeting into their financial processes, companies can more effectively determine and prioritize which projects, programs and other investment assets could be most financially beneficial in the long-term.


The other webinars in the series are: 


December 5 (12:30-1:30) Webinar 1 - Looking at the Big Financial Picture for Your Farm

Your farm's big-3 financial records (balance sheet, income statement and statement of cash flow) and how to use them to assess your overall financial situation. This information will help you assess what types of investments are likely to be viable for your farm business and whether or not you are likely to be able to use credit to finance that investment.  We will specifically cover Farm Profitability, Cash Flow, and Key Financial Ratios. 

December 6 (12:30-1:30) Webinar 2 - Business Strategy and the Farm Business Value Chain

How do you create value?  How do you differentiate yourself from your competitors?  In other words - what is your farm's business strategy?  Your investments should be in line with your strategy.  Different business strategies will result in investments in different parts of the Farm Business Value Chain.  Farm Business Value Chain - full range of activities needed to create a product or service.

December 7 (12:30-1:30) Webinar 3 - Using Your Farm's Financial Data to Make Management Decisions

Identifying the Enterprises in Your Value Chain.  Your Profit Centers and Cost Centers.  We will cover: Direct vs Indirect Costs and Cost Allocation and Variable vs Fixed Costs and Relevant Range (when does a fixed cost become a variable cost?)

December 8 (12:30-1:30) Webinar 4 - Operating Budgets and Strategic Planning

Operating budgets are the overall financial plan for the business.  You can use a budget based on your current situation as the base to model new scenarios.

December 12 (12:30-1:30) Webinar 5 - Enterprise Budgets

It is more time-consuming to develop detailed budgets for your enterprises, but it is worthwhile to do this for area where you are considering making major investments.  We will demonstrate how to move from an operating budget to an enterprise budget to model specific scenarios within that enterprise. 

December 13 (12:30-1:30) Webinar 6 - 5 Step Decision-making Process for Capital Projects and Long-term Investments

Introduces a structured process for a manager to go through to decide among options for long-term investments, projects or changes to the farm business.

December 14 (12:30-1:30) Webinar 7 - Cost Volume Profit Analysis and Sensitivity Analysis. 

As you change your prices, volume of sales or costs of production how does your profit change?  What is your break-even point and what output level do you need to achieve a target income? We will also cover sensitivity analysis that will help you see how your results will vary over a range of likely scenarios from best case to worst case.  This will help you assess the riskiness of your plan.



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Asparagus

Asparagus

Beets

Beets

Broccoli

Broccoli

Brussels Sprouts

Brussels Sprouts

Cabbage

Cabbage

Carrots

Carrots

Cauliflower

Cauliflower

Cucumbers

Cucumbers

Dry Beans

Dry Beans

Eggplant

Eggplant

Ethnic Vegetables

Ethnic Vegetables

Garlic

Garlic

Horseradish

Horseradish

Kohlrabi

Kohlrabi

Leeks

Leeks

Lettuce / Leafy Greens

Lettuce / Leafy Greens

Melons

Melons

Onions

Onions

Parsnips

Parsnips

Peas

Peas

Peppers

Peppers

Potatoes

Potatoes

Pumpkins / Gourds

Pumpkins / Gourds

Radishes

Radishes

Rhubarb

Rhubarb

Rutabaga

Rutabaga

Snap Beans

Snap Beans

Squash - Summer

Squash - Summer

Squash- Winter

Squash- Winter

Sweet Corn

Sweet Corn

Sweet Potatoes

Sweet Potatoes

Tomatoes

Tomatoes

Turnips

Turnips

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