...... * 7;Llawn:)c.p euo 4y; Jpiral Jg -.;1113 :i24; sag ay; a.,:e stic3 iq

;

01!:;n0 pT41;

. ."7.V1.1).1U 1Jausdlnba pLIV .,37417%-7W 113;1 17

pa;sabEms ;o ;s:T sa.-,:;oaCqo ;0 TTvis 10 aw0s u;w;uoD ..ey; cuoss4T ;o

pula. !sTeo:wayo Tvin;Tno:.:6e uivrd ssautsclq:.:bv put? 6u:moT; t4:

;' slIun 414; J: passazppy .c;.uapnls apv1:-2 PQL15:G4Pa-:t1:7-:DT.;6u. :v Js;noo paout.

4";,q;5 A_:epuczas z.m.115od .seuTd ussa7 butu.lea7

.spotoam yz.:eas go:, s:lz:.:41vw ptlo .1J,141abvuvA

aO Q.'.SUO UQiU3 %;P13L302.

!.16rsod srlId

- 4:7."71 - -

7:

:.: AY bV :s

114-0,t,.

:)1--.FARiXE:T OF EbrCAl":

1-'.1.1171-1N NO.

AVANCED PROGRAM OF VOCATIONALACRICULltRE IN LOUISIANA

AG III and AG 11-(11ih Lind 12th idl:.)

I!,:aled by

Ot!li of Vocational Education

Elaine Webb, Ed.D.Ass:9ta:., Superintendent

Thomas G. Clausen,_Ph.D.State Superintendent

4

STATE BOARD OF ELEMENTARY AND SECONDARY EDCCATION

Congressional Distr ct

Mr. Jesse H. Banie.Ston 6thDr. John A; Bertrand 7thFro; Felician Fourrier; C;; President At-largeMr; Silton Hamel 4thMrs. Gloria J. Harrison. At-largeMrs. Marthl Scott Henry At-largeDr. Claire:. R. Landry; Vice -Fred dcilt IttMt. JaCk Pellegrin 3rdMr. A. J. "Sookie" Roy, Jr. 8thHi - Sinitiere; F.S.C. 26dMrs. marie Louise Snellings; Secretary-Teasurer 5th

FORFWaFD

This curriculum guide is a result olf extensive work on the Nsr!T,ILmet: agricultural educators. The materials included here wereJeveloped for the express purpose of aiding secondary vocationalagrir_ulture teachers. The hope Is that by having practical and ut,,,11)1eteaching materials in their hands; teachers will be able to makeImprovements In their instructional program ms well as have incrrasedcite available to spend on other phases of the total vocationalagriculture program.

Thomas G. Clausen, IState SuperintendentDepartment of Education

:1:11 j,oWiLcation repreents the cooperati.., ef,:-;.,rtment of Vocational Agricultural Lduation,

and the Vocational Agriculture Serti,:i t'ee (1!j., . I

FrItication Louisiana State Lepartme:ht of t?:'.1--;iti- ";, :

ref,wn:tion goesto Dr. Michael F. Burnett .;o ,a,.rvrdtor In the developmentof the ofd:i-. Ypoe-f-rdti memher of rt-a writing team wh, 1.,L !red

;r0,11c,it ion a reality.

h!ghY sIgn1f*Tant 7ontributors to ttAs prnierr,L,rle !;m1thi bean of the follege of Fducation, Loni!,:ananiersttvi who initiated th original project; fir. Loy H.

effectively supervised the day-to-day activit1et, of the projecter':irg as project coordinator; Mr; Thomas L; Grath.., whose hardontrihution!, as a member of the writing team; profreader;and_ordinator of the project in 1tsLliter stages; were invaluahlet .!,

,.utcessful completion of this guide; Dr. Clarence Y. Ledoux; whfl0-6Vided invaluable support, encouragement, and advice formpletionof the project; Dr. CharlieM.Curtis, Former VIte-tcr ot tt.;

,choolOfVocational Lducation and Technology and Head of theAgOcultural_Fducation, who made available innumerable resrsirce f

the r'hcl and Department to facilitate aid support the completlori tthis project; Mrs. Anne Nolan who worked diligently and Skillf6:1: ;npreparing and revising the materials as needed; Mrs. Florence Lare,;:.;Ind Mrs. Mary McMinn; who willingly assisted with the preparation orrAterlals whenever cslled upon; Mrs. Yvette Chandler. who w3prepared the many illustrations included in the guide for nse intran.4parenc1es; Mr; C; Simmons; State Supervisor of VocationalAgri,ulture, and Mr. Pobert Simmons; Mr. Russell -.-aillivan; and Mr; oL.M11.1er, VocationalAgrlculture supervisGr., who supported the pro;errJoth directly and indirectly by willingly participating in wo,0.,-Iyt:.whene%.ercalled upon todo so, art4 by outwardly backing. the j.rfrjettthe teachers in the state.; a special acknowlelgementto the (i:rrre":1t4;1alg. cchter-; at AMI'M (Anwricar, AlrixtionjnstructionalMaterials), Texas A&M Un1vert,ity,and 0klahoma ''titeLniversity. These centers made numerous contrihrtiotls to thif._p:4Ht!v alowing rele'vant materials already in exitence ht. ile,;h -

ter o -, In this curriculum guide.

Plaine Webb; I'd;[);

AssItant 5,,per1ntetAchtt)ep:trtent Fdti6ti

11

,k!

.c41"

H,11 I

-

i

i 11 r i

t Htio;

p4,114:,

lit 1,,1A I,.4 H1g11 1(

1/

1 A

it

.I

3L

J'

3

1 r:-. pr_!:Iternr:!;='f-

:.t tIV,

;n1

'r ! -:=

ort*C7le pupll tc, );$

t?11:t

$

!)".$7-a!'

t.

*;$

r: 7

37

:ne

77.e

A

e-te:',7.11.

I

n.

T !

t t' t'

AGRIBYSINFS',

S:atehAS_ !,,everal_ agents t ,

7.-t; 7;3 y-1:;h n t!!e

Tr, tnet-!1-J.1 tcr

Agt::uitLte. ,ouisiana Sta:t

Agricultte

* Agric:Ilturc

~c-eStr's-

:irer0.ce

sces - CRAW:.

Student Activities

Teacher to draw up a program to enible students tc haveindividual field visits to tams anl agribusine ::operation of their choice. After their visits; pupilsshould present written reports to the teacher and oralreports to the class.

Students can also he encouraged to make visits toredit and financial institutions_ that are directly

involved in 1 1/agribusiness. After their visits theyshould submit concise written reports to the teacher

oral reports to the class.

leacher should assign students to plan their ownbusiness enterprise and present their plan to theclass. These presentations should be organized intouseful class discussions. Critical thinking amongstudents should be encouraged;

P. Stt:dv Questions

. List reasons why planning a farm or agribusiness isessential.

List some problems that can arise if planning is t t

done systematically.

List what should be done before starting a farm oragribusiness enterprise.

Nate some organizations or agencies that can help ifne wishes to start a farm or agribusiness enterprise.

INSTRUCTIONAL AREA: Agribusiness

INSTRUCTIONAL UNIT Farm/Agribusiness Planning

LESSON 2: Font basic types of Farm Business and Agribusiness

Organizations

I; preparation for Instruction

A. Student Objectives

1. Terminal: ExPlairi the characteristic, advantages; anddisadvantages of sole proprietorship, partnership; and

corporation, and cooperatives in farm business and

agribusiness;

2. Specific

A. Explain the characteristics, advantages, anddisadvantages of a sole ptcprietotship

b. Explain the characteristics, advanta :es. and

disadvantages of a partnership;

c. Explain the characteristics, advantages. anddisadvantages of a corporation.

d. Explain the characteristics, advantages; and

disadvantages of cooperatives.

B. Review Teaching Materials

1. Luentng,Robert A. and William P._Mortenson.The Farm

Management Handbook. 6th Editionj_Danville,Interstate Printers and Publishers.

1979;

2. GIOS, RaytOnd E. and Harold A. Baker. Introduction to

Business: Cincinnati; Ohio: South-Western

Publishing, 1963:

3. Roy, Li-E11 P. Cooperatives:_revelopment, Principlesand Management, 6th Edition; Danville, Ill.:

Interatate Printers and Publishers; 1981:

C. Special Atfangements

8

1. Materials

a; Chalkboard

b. Slides

c. Charts

d. Transparencies

2. TraVel

a. Make a field trip to an indlvidival ownership farmand an agribusiness enterprise.

b. If possible viAit an agribusiness corporation.

3; Audiovisual Equipment

a. Slide projector

Slides on individual ownership farm/agribusinessenterprises, and agribusiness corporations

b. OVerhead projector for transparencies

II. Presentation of Lesson

A. Motivation

In order to arouse student interest, slides should be shownof three basic types of farm/agribusiness organizations andstudents should be encouraged to voice their opinions.

b. Content Outlite

1. Terms: (Use chalkboard and give relevant ex4Hple t.

promote better understanding of the terms.)

a Will Written directions made by a person tor the

.lisposal of his/her property

h. Liability -- Held responsibly by law

Limited Liability -- Each atbekholder risks only

the amount he invests in the cOrporati6.

d; Unlimited Liability A proprietor anJ members Inpartnership practically risk everything they own in

their business;

t. Loan -- A borrowed sum of money

f. Capital -E= The money with which a business is to

start and operate

g. Shares_-=_Otie_df_the equal parts forming the

capital of a business

h. Shareholders -- People who own shares in a

corporation

1; Stock -- The capital of a :Aisiness corporationrepresented by shares

Stockholderli -- Also known as shareholders

k. Bonds -- Documents issued by a corporation to

acknowledge that money has been lent to it.

1. Director -- A person who manages or supervises a

corporation

m. BOAtd of Directors -- Elected t) the stockholders

for managing the business

n. Dividends -- A share of profits paid to

shareholders

o. Articles of Partnerthip --A written agreementmade

by partners in forming theft business

P.Charter -- A document itdOed by a state authorizing

the formation of a corporation

2. Explain the characteristics, advantages, and

disadvantages of sole proprietorship.

io 2 o

The chalkboard should be used.]

Definition: Sole proprietorship is a business owned byan individual; Other terms sure as "IndividualOwnership" and sole ownership mean the same.

Characteristics

a. Registered under one name -- he is the owner

b. Life of business ends at the death of the owner

c. The owner_ is under unlimited liability. (Teachershould make reference to the explanation "UnlimitedLlability" under terms.)

d. Source of capital -- Own and loans secured

e. All management decisions are made by owner.

f. Transfer of interest -- ends businets

g. Death of owner or proprietor ends the business.

h. HOA to pay taxes

i. Limits on business -- decided by owner

Advantages of Sole Proprietorship

a. Wher takes 100 percent of the profits.

b. Spends little time on business organization

c Gets personal satisfaction

d. Has more freedom

e. Minimum legal restrictions

Disadvantages

a. Unlimited Liability (takes a great risk)

b. Limitation of size

c. Difficulties of managing the business

Teacher sums up this section by mentioning that thefarm is usually owned by the husband and Wife, Thehusband or Wife is _the sole proprietor of Om bmainess.The himilband and wife pass on the farm to their Childrenby preparing a will. (Teacher to explain this byreferring to the terms. If possible an example

11 21

ould be cited.) Usuany when the hust,ar,d dIcspasses on the farm to his wife 4nd children. Thi,transaction is willed; In the case of agrIbusil;.cn,there are sole proprietorships that deal withpcticides,vegetable seeds, and fertilizers:(Teachers should gi%eexamplesnfsuch enterpri:e,commonly found in their locality.)

S. Explain oharacteristic, advantages, and disadvantage!,Of partnership.

Teacher shout, prepare two charts, one showing thecharacteristics and another showing the advaniAges ar.ddisadvantages. The letters should be written largeen_o_alb for the tudents to see while seated

Definition -- Association of two or more individuals ina business; The relationship may exist as a written ororal agreement that is both voluntary and legal. A

partnership is also called "Copartnership." (Teachershould -write this definition -clearly on the chalkboar::.after having given the students an opportunity to voicetheir personal views on partnership.)

Characteristics

Owned by two or more individuals

b. Life of business -- This may be an agreed periodtime that would end, if not completed, with thedeath of a partner;

c. Liability -- (Unlimited Liability of partners) Eachmember in the partnership is liable personally forthe partnership debts

d. Capital -- Shares of partners and also loans

e. Management decisions -- Agreement of members in the

partnership

f. Transfer_of interest -- End_partnership. newpartnership can be formed if all parties accept

g. Effect of death -- Ends business or it can be soldto surviving partners

h. Tax is not paid by partnership. Each member in thepartnership reports his part of income or loss or

gain on an individual basis

i. Limits on business -- Partnership agreement orarticles of partnership

s12 22

L :4

s z.eat

TeacLet should ::41-e some example& rtner!,,i;tar= and agrlbusiness. An exam0Ie of p rther6tr

tart, biAlheSswoUId he )hr, tn;l. Siiort Dar FAet. Acombvm type (A' farm p4rtnet5tp wottld b4t o,n,e betWeenLather And a vorl., car several -7;hIldren ,_nether

:21 an agribusiness partnersh1,0 woulL1 :et-Ontry Ecutpm,7m.: Fr-terprie.

flrperarfon eharac_te-

d16aahtagel-.,t

retini;t: in It 16 a bu,AlcAe organIzationlaw an endowed with r.Ints-0 duties; aA powers C! 3person; It aIsomesns th,lt many individuals arc unt:Into ondy; The Idemtty ctumg withct,4,nges in owmership; (1)4,: de!tnition i ccrperatt,.n

o4.1.1d be written tic

For dharacteriat1;;s,avanzage6, ain-; dil;aderie<refer to Transparencies :-2-A an E.

At the end Ot the :'IS-L:uSIOn on disad.irantagt e

teacher sutra up !..!..e secticln.

Corporation 1F.: mt a cc en type cf 'nusinessorganization in farm business. It is found inspecialized farms; 6:-.11 as pure-bred livestocseedgrains; and others; In the care of agribnzineP7.'7f;qi-ouing cart be sn!,3e er.wnTies: t, Livestock

Corperetir 2. Agro-che=icaIs Czbr-peratin;and many ott-.ers.

5. EMplait the characteristics; advantages; anddiMdvantages c: cooperatives.

-Z. I, ;,.4

V': 7

T%-ci f ;"-,1 r.

ptrdt:vc

z,c0te7.!

f."Pn

!At

r .y v

.r a 7,,,,peratIve,

t, 4 7.,x77

rerftied cr tip d w.

";" M41." a .

:eafrer. cite sore T:11=pevative5. Solt. maca-

Teac:her shofid sumr.arire cLv !ttilsiress organizati-,7n5 f

::-;zgeste Activitft,

eac'.er siould assign at.---zee-t., ' -e? N

1,..1slresses and agrib-Jsinesces :r. ..rder or

ctserve the basic types -: --4a-17t. --

sole propr4etorship, Part-chir.After the:r visits. theand oral reports to the cl.sfs.

24

,',17*211.

r

prr,errs'r:',,:,, Hsc-17..et=s ,r),c,ar

Arrerb.zlesc _'r 4:A

A,Iness.tr.

andGC.S :t . ,

4' can-

F.,HAF;.JOLt'

flL' F., 7!-Ct, OF

T AvE7,7 :C%

Ni_EEC7 s776(SEEI ON TJ :!,,DIC'tDUAL5

Er.E2-CTLE;

_,_

-

26

Members contro' ih e. cooperative with their

votes his ;F: cu i led democratic mentertOhiro'

ELECTION

MOT 14

HOW IS A COOPERATIVE DISTINCTIVE?DEMOCRATICALLY CONTAveu_l_nuTARy p ACirirlD A TIAN

SSS

e41.(424t1S/0

SSSSSSSSSS

HOW IS A COOPERATIVE DISTINCTIVE?

DEMCCRATCALLY CONTROLLED

s SERVICE AT COST

LIMITED RETURNS ON INVESTMENT

31

HOW IS A COOPERATIVE DISTINCTIVE?

TRANSPARENCY 1-2-G

DEMOCRATICALLY OONTFIOWED

MICE AT 03ST

LIMITED RETURN ON INVESTMENT

mammineAND FUMED

'CIIONAT AREA: Ai; Jsiness

1!;S::,_UCTF'NAL :NIT I: arm/Agribusiness Planning

2A: Responsibilities of Cooperative Management

Preparation for Instruction

Student Objectives

1. Terminal: Explain the respionsi.Alities of the Board ofDirectors and Managers of

Presehth of Lesson

The instructor should give examples cf fEEL,:itS oforganizations with poor managemeknt anc of those witbresponsible management. The pcint should be made tha:everybody's business is ncbodNi's business. Constquenii,tnere is a reed _in organizations fr,r individuals to per-rmcertain duties for efficient and e/fective operatic: o: t:,organization.

3

17

Cb7.tent

:err:.: (Use chalkboard and give relc-cant examples topronote better understanding of the ter=s);

-- An exatinatinn of r ecords or accounts to check

their occur:Joy.

R.Darel of Directors -- Is r..7..e governing body in the

coerative;

Explain the powers and responsibility of the Board ofDirectors of a cooperative

Powers of Board Members:

To prescribe the form and maintenance of membershiprecords and to approve memberships

b. T'a prescribe the form, extent and nature offinancial reports to members

c. To make changes in the bylaws_(when the power toso is vested 17, the directors)

O.; To borrow momc, and issue such evidence ofIndebtness am required

e. To commingle funds of the association from allsources and to decide upon the investments in othercooperatives andicr other businesses

To employ and dismiss the general manager anddetermine hie responsibilities; duties andcompensation

To determine which employers are to be bonded, tixthe amount of their bonds and provide for adequateinsurance protection for all facilities, equir-entand personnel

h. To keep records of all meetings of the board

i; To call special meetings of the hoard

j. To elect officers of the board, remove them forcause and fill vacancies (In some states, member',elect board officers directly)

k. To provide For the installafon c t an accounting

system

1. To employ an auditor

1835

m. To establish rules alui regulations regarding tsartransfer of memberships and other evidences ofequity in the associatic:1

n. To issue and sell stock or other evidences ofequity

o; To determine the canner; form; and amountpatronage refunds

p. To declare dividends on stock and patronage refundson business volume

q. To enter into contracts; sue and be suec

r. To formulate and evaluate general aLd internaloperating policies both for the short run and thelong run

Responsibilities of Directors: (Transparencies I-2A-A

and S)

a; They shovdd not interfere in the day-to-day_operation of the business but should determine.with the membership; the policies of operation.Directors have a responsibility to further_theirknowledge of and training in management and tofamiliarize themselves with the co-op laws_ of the

State the articles of incorporation; and bylaws oftheir cooperative; Every director should have a

copy of each for ready reference;

b. They are responsible for hiring the hest trainedand most efficient manager that they can andcreating the beat possible working conditions forhim that are compatible with the interest of themembers and the success of the cooperative;

c; Check and evaluate the results and performance of

the policies

d. They have both a moral and_legal responsibility toserve the best interests of the members whom they

represent rather than their own individual

interests; Remuneration to any director should be

only for actual out-of-pocket costs when_repre-senting the cooperative; Records of such renumer-ations should be available for membership inspec-tion andezamination; No director should have afinancial interest in private facilities or busi-nesses that provide supplies or services to the

cooperative or that competes with the cooperative.

19

36

fordasr3.77.±

Exp.ain the per and -- :tfes

anagement.

,d:es Management

S.4fervise. ;:onc,..ct and dire ct al: fcb

specifically delegate:::

.fard of directors.

Train or cwe trained er' e

!c7r greatc: efficiency.

_read fire his subordinates acdorci..4general iolicy creates by the board.

Made periodic report. to the boi:rd cf directcr!=;together with his r:-.cmmendations cc;ncernIng fnt,

cooperative's operation.

. Flan; organize; direct; ccordiare;,:ontrol the adtinistrati'..e and .inancial

of the caopratiVe.

T..e.,ponsibilitios of the Manager:

a; The manager shall superVise_the detailed ope:at.of the cooperative in accord_With the policies

agreed upon by the board of directors ano shall

recommend policies to the board.

The manager shall maintain an adequate bCo'ikeopfn

an! accounting system; pro\ide for it rCgUl.ir

i7kAmination by competent outside auditors, hiLlchare selected by the board of direetc)rs, and pfo.:,7!

to the metarrsattheregular annum: neetfrg a

i;tattitient of the financial cc.ndition of the

cooperative.

. The manager attend All ;-,oar:f ofmeetings and maie ,ivallable a busness rep'ftmonthly financial statement as a ninimw'

requirement.

The manager shall devote full time tote Aof the cooperative. ) employee shall hae Alinancial :nterest in any bu,iness concern vetwhichthecooperative does business; bi etie f!sideline activities or hu.;inc,s in ciet.iti wit

the cooperative;

20 37

=--

tea t:

1;-

meet.

4.1iited that the .iuL

reLet%.« ! on week 7,th,,t r e 4'flr tev q.!

"-

,,,penAe

,eeme.1 tn n, I,Ttts.7,! q". " :r tleved the,. 4ccert tht .4,!!t

74 elved An afflt-n.lt:1 tc ar.! e

' us.," t' r ;4"gt l'cr

7.1krett.v

36

-1",1ffems

WHAT DO DIRECTORS DO?

Decide how the cooperative Will

do business foperating policies).

2. Hire a manager(and hold him

responsible).PRIMPFRoppft.1101111,

3. Cheat and evaluate the results

and performance of the policies

ECTORS D

nominate Mr. Sims

for the bc A rd."

4, Represent the membersin affairs of the associa-tion.

5. Study forecast and plan for

a-. Business growth,

b. New services;

c. Adequate tdpittil

dividends Reserves 8surplus for

exparitia

WHAT DOES MANAGEMENT DO

Management comes out

everydy operations

2. Managemeit respontible

to the le erd fir effectiveoperations

Mahirietent hires (dfid fircit) Ond

directs perwnnel to 63 the job

DOES KNAGE

5 Management functions b

Planning

Organizing

Directing

Cote in

\T

4, Management reommends

changes and i rovenienis

to tI board

:.-,0.,

:

':ovisual Equipment

:de Trcector

Slices en good and p:6rm buildings

Lesson

t:on

6rraFgcment o! frt:;-stea, ar;c:

Students should be shown slides on both good and ;0or'armstead and farm building planning and afterward thtteacher should ask the students or their views

o erns. List on the chalkboard the good pointObserved during the slide presentation;

Tea-chit ahoUld pick students to sketch some diagrams (77.the board to reflect their views on planning thearmstead and farm buildings. Teacher can guide

students it they _need assiStatte. 'Poultry farm; d-Jilry

arm; vegetable fare .::an be used as some example.,.

23 44

b. Content Outline

1; Introduction

Csir:g the slide presentation and also rough sketchesfor students; the teacher shoula explain and stress theimportance of planning the farmstead and fart buildingarrangements.

2. Terms (Use chalkboard.)

Farmstead includes the house, lawn, garden, walks,drives; trees and shrubbery; and other areas that addto the converrILace and appearance of the place.

Farm builditt are' part of the farmstead. Usuallythese building= s:re already established in thefarmstead. Examples are hoghouse; barn; poultry house;and others;

3. Factors that should be considered in planning thefarmstead arrangement. (Use chalkboard.)

A. Main functions of the farmstead are as follows:

1) Center for business activity, and

2) Place where the farm frailly lives.

b. Reasons tor planning:

1) To ;7.4eet the needs of the farm business; and

2) To meet the needs of the farm family.

c; Factors to be considered in planning the farmsteadarrangement

Points listed below should be elaborated andexplained by the teacher with relevant examples;

1) Develop_a_long-range plan to achieve a well-arranged farmstead layout.

2) Analyze the site thorougly in relation to watersupply; sewage disposal; topography,electri-Aty; communication; and fuel service.

3) Examine the present farmstead arrangement; thecondition of existing buildings; and others.

4) Emphasize the importance of planning goodtraffic circulation; flexibility; and firesafety;

45

All planning work should be first sketched andconsultations should be made where necessary.

Set priorities to meet the goals of thebusiness.

7) Importance should be given to efficient use offatilities and resources, and location of farmbuildings.

8) The attractiveness of the farm yard isimportant to make the farm business a success.(Shrubs, flower beds, gardens, and pleasingdriveways should be included not only toattract customers, but also to make the livingarea of the farm family a pleasant one.)

9) Tht fermr should plan his home within hisearning capacity.

10) All planning should make provisions fur furtherexpansion of the farm business.

4. Factors to be considered in planning farm buildings(Use chalkboard.)

Purpose: Usually farm buildings are already lz,cated onthe farm; therefore, this gives very little choice inplanning for the farmer;

Well-planned farm buildings will save labor and reducethe cost of performing the farm work.

Factors that should be considered in plAnning farmbuildings:

a. Ensure that the investment in buildings meets theneeds of the farm business.

b. Ensure that the buildings fit the farming programand farming methods that are to be used.

c. Plan buildings in auch a way that they can beadapted to new uses in the future;

Construct and arrange buildings to save laborcosts.

e. Allocate money wisely and avoid unnecessaryexpenditure.

f. Set priorities and deal with improvements on thefarm buildings based on importance and need;

Make sure the land is put to good use when planningfarm buildings;

h. Make sure that there is sufficient storage space.

i. Ensure that safety is given priority.

j Determine if farm buildings are planned fordesirable work.

C. Suggested Student Activities

1. Students should be provided with real farmstead andfarm building plans' and additionally they should bessked to make a list of the good and bad points ofthose plans; Later they should be requested to presentto the class a report with suggestions for improvcmentof those plans.

2. The teacher should also set assignments in planning thefollowing buildings:

a. Small broiler farm,

b. Commercial dr / farmi and

c. Commercial vegetable farm.

[Some important guidelines should be given to thestudent by the teacher ;]

3; Students should be encouraged to visit nearby farm-steads arid interview the farmers to gather informationon planning_of farmstead and farm buildings._ Theyshould obtain specific information on current problemsfaced by those farmers in relation to the arrangementsof farmstead and farm buildings.

D. Study Questions

I. Define in your own words "firnstead" and "farmbuildings."

2; LisC two functions of the farmstead.

3; Give two reasons why farmstead planning is important.

4. List factors that should be considered in planning thefarmstead arrangement.

26

47

S. List factors that should be considered in the planning

of farm buildings.

Draw a plan to show how one would set up an arrangementfor a small broiler poultry farm.

INSTRUCTIONAL AREA: Agribusiness

INSTRUCTIONAL UNIT I: Farm/Agribusiness Planning

LESSON 4: Planning Agribusiness Facilities

I. Preparation Instruction

A. Student Objectives

1. TerMinal: List and explain factors to consider inplanning agribusiness facilitiet.

2. Specific:

a. List and explain factors to consider in thelocation of the agribusiness.

b. List and explain factors to consider in the layoutof the agribusiness.

B. Review Teaching Material

Clos,_RAymond E., and Harold A. Baker; Introduction to

BUtite44. 5th Edition; Cincinnati; Ohio:South-Western Publishing, 1963.

C. Special Arrangements

1. Materials

Chalkboard

b. Slides

. Blank transparencies

2. Travel

A field trip to a nearby agribusiness enterprise;Prior to the visit; students should be given a worksheet pertaining to the location and layout ofagribusiness.

3. Audiovisual Eguipment

a. Slide projector -- Slides ors typical agribusinesslocation, and layout plans

28 49

b; Overhead projector

4; If possible the teacher should get nearby agribusinessowners to bpeak to the class.

II. Presentation of Lesson

A. Motivation

Students should be shown slides on both good and poor_agribusiness locations and layouts. The teacher should askthe students for their views and comments. List onchalkboard the good points observed during the slidepresentation.

SO29

B. Content Outline

1. Introduction

Using the slide presentation and the views of thestudents, the teacher should explain and stress theimportance of the agribusiness location and layout.

2. List and explain factors to consider in the location ofthe agribusiness enterprise. (Use overhead projector.)

a; Raw materials -- These should be easily accessibleto the enterprise; Raw materials used will dependon the nature of the enterprise: Examples of rawmaterials for a poultry feed company are corn,soybeans, minerals, and others. If the rawmaterials are perishable._the manufacturers thatuse them should be located in the agriculturaldistricts where they are grown. This will reducecost.

b. Labor -- If the agribusiness enterprise orproduction plant requires labor; a thorough studyof the area should be made to determine the type oflabor needed (skilled or unskilled) and also thenumber needed for the successful operation of theunit; Therefore. the location chosen should meetthe requirements of the enterprise;

c. Power -- The management of the agribusinessenterprise should ensure that relatively cheapsources of power_are readily available for theefficient operation of the_ enterprise._ An exampleof an enterprise that would need_a good source ofpower_is_an_agricultural chemical producing companyor a feed Mill.

d. Fuel -- In those enterprises or production unitWhere fuel is a major concern, proximity to cheapsources may be a factor in the choice of location.

e. Water -- A location chosen should have a goodsupply of water; and in the case of a fertilizercompany or pesticide producing company. purity ofthe water is important.

f. Transportation -- The transportation_factorinvolves cost; speed, and the selection ofvehicles. Without proper_ transportation routes andfaCilitiet in the area, the enterprise cannotfunction.

30 51

when cLconsider the climat:,

me cases it 7.,y tre

Market -- In any kind ol ,:thess itthat the entert(ise te ,ated t r c.ltr,for the products. This w111delivery and also cuts

;174' ttbe area.

1. Special characterist:cs tl-re_;1u-.4;nessagribusiness producers wh,,t, consider a location that foes ncl end.v:gerhabitation (certain poisonous gases, produce.;operation way be harr.,:ul

Cost of land and buildings -- Agrmanagement needs to consider t Le cost GIbuildings before di. the 1,:cattc,1;

enterprise;

J. List and explain fact :s to _corsidere,l in t.Of the agribusiness. se

4gribusiness enterprise ucf-ds to p,,,y attentlen

layout of the enterprise. The type or layout wil:differ accordig tD the nature 3f tbe bu.,iness,is; whether it is a prod.:Jtl, retail store;an office;

a; Type nf manufaz.tur:Lg process -- This canthe intermittent or the .titincous typelayout in this kind .1 agribusiness m;Istmeet the recoiiremcntsor the manutector1.1g prso that efficie-:t nrnd,ict:Cn is ensured at 01:

Manufacturing policy -- The manufacturing polldeteriiines Whether the agribusiness companyproduce to order ct for_stock_or_for_boto. Anexample in this case will be teed Mills ancfertilizer companies. This policy will affectlayout plans of the enterprise.

c; Type of product -- It the products produced areurge units; such as laying cages or feedingtroughs; for example; special consideraticrbe given storage in the layout;

d. Aunt of labor -- If many wotkers are invc Ye?the operati::,n; sutficient work space should be

prc,vfded tc, ensure !-;a:etv

t -

it

!

1!_

In the Agr itftto t.,e planned 7- t. tn:res,,

,Iloie-_cy. A we::-;:,inr,H

eitIciencv .tre.! A.,

te accommcdte !rure expansiy-4rttusiness ent-ztprIst. lr

when there a .Iema::-J r:vesrock :eeas, ttle c7:!et-,Jr:he

'tact: to Increase .i,roduc!' 1

Ae.tivittes

1 I.

rc.aLhet should plan tl program t, ent,1-4, that t,,

udent h.as the opportmlitv to visit %earb% igrlenterprises Prior to their visits

!,,Iche: should provide zuidelI,A.. to the atudeht,,Icy In relation to IncatIn_and

%elr visits. pupils sn-uId present cirtti-rto r.!; teacher and nra t t

:Ht. ;cachet aIsc ,A7, A ClA4t,dir it! I! e.!!., t'Y r!, . ,e

re feasible.

t pla. the :

Jwn agriutrInes tntetptise a:f se' t.ans to tf.e These assIF'Imets sculf c

abill7 d: '. .e a , 7 .

t!.le -e

!":: a' 6,-7.r:'"us:!:e-

te fa:tcrsthAt nee,: t.avoct an agribusine.,s

; 'Iv t '; est

.

r ; .1; I:

It. reirs,)ns iv If+hould

! 1st ttekist:res that to

enti-rprIst!,

the flancial 6ucc.-!c7f1 be ;0--.1L':red.

tr.e s170 ! ;%e

be 4nelyzed;

hoov the e!ftetencv ct rno tar= l',3,17-esb

.i:bus:thess c.zin be anittilire:

4ohert VIM= F; 'tterlson The Yar=ltlnurtifeqHandbook. 6th E4itlen. Danville.

Inerstate Publishers.

Emery N.. Manning H. Becker. and FrederickSmith. Farm Business Mani:cment. _2hdNew York: The Macmillan coMOihY. 1972.

ilneebergeri Ker.neth C.. and Donald D. OibUrn.Financial Planning ih Agriculture. Danviu.111.: Interstate Publishers. :c77.

.

.

It'

.r..;

'4e 7c::r,fr.!

;t r

e " c

tc_r.r.e c:;:tra'a!,t_11.

rre rare;Y!'o

.

7174,

Whr"

57

p

Tne tarter and the agrib-usiness beset Should-:arious measures of financial SUMceSS that Areavailable before makinz plans for the fUtUre.

rLerprflin ps. th_ar his net farm jnccr cr net

:_5-es s income is less in relation to the amountof capital invested; he sh:71d find other sia to

reitest niscapital_to get a setter net incme.:n Order to improve his ne: -.7cme he can:

LiCUldate the farm hiness r agribusinessenterpriSe anti invest the capital elsewhere;

adjustments to increase the net income inthe present farm_business or AgribUaineSS.(Transparency :--5-C)

::ere are three important aspect S that need to belooked into to measure or determ!ne the fin,itial

ocess; They are as follows:

1)

and

lAcuidity.

"HART 1-5-A

A FARM INCCME STATEXENT

MC;NTH: January 1982

RECEIPTS (Debit)

Livestock Sales

Crop Sales 11;50r,

3. Xisceildaeoua Receipts 2;500

Inventory Increase

5, Gross Farm Income 34,' t

EXPENSES (Credit)

b. Current Wellses

Inventory Decrease:Crops and SuppliesI. ivestock

MachtneryBuildings

S. Cross Farm Expenses

Net Farm Incom4 (lines 5-8)

fi56

10502000

700 44G0

19;100

The two main areas in the above farm income statement are recelpt-sand expenses. The above_can show the farmer his act income. A;r1-business enterprises wiA also have iucome statements similar Lc the__above. The only difference will be that agribusiuess cnterprise wi12

with chmicalsi

38

CHART I-5-5

NET WORTH STATEXENTFOR

BILLY BOY DAIRY FARM, DECEXBER 3 ., 1982

ASSETS LIABILITIES

Lar:d $:150;50 Jo:- Feed Co. 5

Buildings 50;000 Jacky Lumber Co. 3EG

28;000 Total FarmLiabilities ::;8b0

Supplies 7,000

Dairy Cat!lc lb,000

AccountsReceivA1,. 2,000

399

T:Aal Asset Tdtal LiabilitieS

Proprietor's Net $300,519Wortt.

39

.. Descrite ho the size -of the _ .. agriu.:s :ncs= ca71be analyzed. (Trabsparencies . AzU L)

ar=ers and agribusiness cw-ners abould analyze tneinputs and outputs of their enterpris,- beicte makingdecisioas. The ihcome of a fertilizer company or fee..:=ill or poultry farm can be affected ley the size of thebusiness. However, no one measure is consideredperfect; therefore, the method of measurement will nedifferent in different busineF,ses,

diff:rent ways used to =Easure si7e arc as

Total acreage,

CA=-Ital invested. and

Number of livestock

Size can to determined or meast.reO it i ^l;i.ts andoutputs. tTransparency I-5-E)

Snow how the efficiency of t::t farm busines, andagribusiness can be analyzed. iCse chalktaard.)

Fificiency is a measure which compares aatputs toitiut-s. These can to measured in pounds, ares,others, It istmportant to measure efficiency todetermine whether the production of the farm or agri-business is being run et to or higb cost Efficiency-,tildieS Will help in future planning of the busines.

a iroduction efficiency cr be calculated on a petlivestot.k unit, per I:Litt', Or per dollar basis.

iced et!icienc is the return trGo.fip' end of feed used c,r onsumed. This

the farzer how productive his :iver,toci, are :)1::

wcil the feed is ntilited; The higher the returnfro= livestock on less teed, the better the tc 11efficiency is; This will changeiiViNtOrk Sometimes tee-AA cefitalhit,g a!: thessential nutrients_Ibalancedarvouetr, atethan mere bulky teeth+ t! at weighmoru hit hav,

I t I V 4.: V AlUr . It i "Ittpot t ,r1t. to t !,cl

t ir. rising at;,1 th A oncerh lot t.7.!.t

zi r C.-. below are hat,,, a. t

c. Labor efficiency can be measured bti dividing tretotal labor by the output..

Example 1 -- 10 men prOduce CO5, bushels c COrn

10 men

= -bushels_ per r.-rs

similarly, efficiency per hour can be caetilated

Example 2 -- 10 men wcrk in a feed mill t:A:produces 1,200 peutds of feed per

The labor efficiencV fen this aribusiness tnterprie will be:

1,2r0 pounds10

1:0 pounds per man

S0TE: More commonly, labor efficiency is exprese::as total productive man work units per worker; Aproductive man work unit is the amount of work aworker would accomplish under average farm z'ragribusiness conditions fn .:. 10-hour day; M thecase of agribusiness production units, machli.efficiency or erl';:p-r;ent efficlnc can hecalculated is .,curlv or haaiS.

Machinery eificiecy

Aactlinery co:( ver acre is we'd to deterL%11.e t';e

efficietly of machinery. This is done bycalculating the total machine ce:.t, that includesdepreciation, interest, taxes, housing, repairs,insurance, gas, oil, an,i ele,'t:icity divided henumber of etop acres.

This measure is ugeful ar c,-mparing I4rMN 0!

simitar type. 7111 mAsi.re i ari a1!,o ;se'agribusiness en.ter2vir,es.

The efficiency measure of sytems will varyterm to farm and Rico will be difterent in dgrlbusiness enterprise . fn the case of_agribusine!-,enterpriscs, the person deall.ig with teed orfertiliLer production needs n_mearr9r,. ,effiriencvin feed production per day or fertilizer produ(ti,nper day or equipment efficiency per day.

C. Suggested Student Activities

1. "r; students to analyze the performance of nearby farmsand agribuainesses. Teacher should provide allrequired information to enable students to measurefinancial success, size, a77-.--d efficiency for eachenterprise;

Get. students to explain orally the meaning cf thevarious terms desousatd in claws.

3. Students should be asked to bring tn class differentfarm and agribusinesa accounts that should includeincome statement and net worth statement. The teac17,ershould guide them to analyze those accounts todetermine profitability.

4. Simple mathematical calculations should be given tostudents on the following:

re* capital ratio;

b. Net business income, and

c. La ,r efficiency.

Stud- Questions

1. 'What infermation for farm or agribusiness records needsto be examined to analyze the perform. nce Of farm andagribusiness enterprises?

List reasons why farm and agribusiness enter rf:eshhould be analyzed.

i. List the measures that can be used to analyze theperformance of farms and agribusineee enterprises:

exp,ain briefly In your awn words how the finan:ialhuccess of :Arms and agribasinesses 'tan he analyzed;

explain Low the net Capital tatiocan Deca.CulateCA ;ora farm or an agribusiness enterprise. What is thevalue of this ratio to the husineas owner.

h. Dicut,s briefly the various size measures that rah,used.

7. What is efficlevy? List hCMC measures that can betimed ,) determine efficiency of farm and agribusinessenterprises;

63t2

8. refiat the following term:

A.

h, Solvency4 and

c; Liquidity;

3

ANALYL:N3 THE FARM BUSINESS AND AGRIEUSINtS ENT: PF.Lt

-IINTED.PRISE WILL AID THE FARMER IN MAKING PROPER

EiiiSIONSi DETERMINE THE "-GOOD AND i;E:AD POINTS 6P HIS

BUSINESS.

SHOULD I

RAIfE HOGS OR CHICKENS?

Am 1 MAKiNG ENOUGH $ $ ???

SHOULD I SIART A FERTILIZER COMPANf. ???)

TRANSPARENCY

y-

L, 4 1, ,r- ; 4 -

7 : . _

n 7

T A:.

11: r'!"r

:NANC:A;_ r.t_t;

!tiVENTORI

TRI*4'iSPARf '

66

'I

AE

IN

MI

ISMS

EM

SM

illE

st"E

mil

men

Aglaia

alma

Asa

4T3

r

.

1=11

Milli

MIS

ME

II 01111

MIM

IM

INI

Nor

mow

'm

ooslerra

Arra

mom

ak111111111111i

I

L,LT:N ON :NVESIMENT

%FT PE TO CAPITALTOFAL ASSET'S'

HELP T. THE FARMER

'';f THE T-RCFITABILITY

FAkJ

7:0 TOTAL DEBTICTAI-ASSITS

TRAWSPAR;---NCY I-5-0

71

i'Ti:ADITY AND CASH FLOW

A FARMER OR AN AGRIBUSINESS OWNER NEEDS TO INCREASE

CASH INFLOW AND REDUCE CASH OUTFLOW. IF DEBTS ARE PAID

RAPIDLY, THERE IS BINDING ON CASH Y.Y. IT IS NECFSSAFY

FOR THE OWNER OF THE BUSINESS Ti' KEEP SU FICIENT CASH

RES1:RVES TO MAINTAIN LIQUIDITY. HOWEVER, IT IS IMPORTANT

THAT A ,'300D BALANCL BE MADE BETWEEN CASH INFLOW AND OUT-

FLOW; OTHERWISE TOO MUCH CASH RESERVE WILL AFFECT

PROFITABILITY.

TRANSPAR7NCY 1-5-H

LIQUIDITY MEASURE

CURRENI RATIO = TOTAL CURRENT .ASSETSTOTAL CURRENf-ITABILITIES

THIS RATIO IS ALSO CALLED NETCAPITAL RATIO.

TF NET CAPITAL RATIO WILL GIVE A BETTER PICTURE GT

THE FINANCIAL POSITION OF THE FARM BUSINESS,

EXAMPLE 1JOHNSON POULTRY FARM

TOTAL CUPRENT ASSETS $40,000TOTAL LURPENT LIABILIT.ES $20,00c

NEILAPITAL

'),v, 2:1

LY,ALE

TTAL CURRL.,TOTAL CURRENT LIABILITIES SiI0i000

NETCAPITA! = WADD

RATIO AGOTOOR

THE NET CAPITAL RATIOS OF BOTH THE FARMS TELL US THE

ACTUAL FINANCIAL. OR CAPITAL POSITION. JACKSON DAIRY FARM I;

IN A MORE PRECARIOUS FINANCIAL POSITION. 1E NEEY. TO rfl

SO ETHING TO k_CTIFY THIS STATUS.

TRAN3°ARENCY I-5-1

THE VALUE Ot- r,EASURFS

SIU V,;:-.A'S SHOW THE FARMER OR THE AGRIBUSINESS

MANAGER THE TROUBLE SPOTS IN HIS BUSiNES;

TR;NSPARENCY

E ME AS RFD IN TERMS

INPUT

fjaTAL INVESIED CAPITAL

LAND; BUILDINGS;

NACHI,;ERY, LIVESTOCK;

CRflP) SIZE MEASURED

USING THE ABOVE HAS ITS

LIMITATION BECAUSE THE

AMOUN1 OF LABOR OR

OPERATING CAPITAL IS NOT

INCLUDED.

ACES _OF LAND - THIS CAN

INDICATE SIZE ACCURATELY

WHERE THE LAND iS HOMO-

GENOUS AND THE KIND OF

FARMING OR AGRIBUSINESS

IS SIMILAR.

5 NUMBER OF CAN

INDICATE SIZE OF FARM, BUT

SUM A MEASURE DOES NOT

SHOW EFFICIENCY OR

INTENSITY OF PRODUCTION.

TRANSPARENCY

INPUT AND OUTPUT

OUTPUT

1. GROSS IACGME

MEASUPC OF OUTPUT

BECAUSE IT IS DETERMINED

BY MULTIPLYING TOIL

PRODUCTION FY PRICE.

GROSS Ii (,OME iS A BEfiEk

INDICATOR OF SIZE THAN

ANY SINGLE INPUT

DISCUSSEL EARLIER.

73

FVEN THOUGH THERE ARE LIMITATIONS: INDICATORS OR

MEASURES THAT ARE AVAILABLE WILL BE USEFUL, THE TYPE OF

MEASURE CHOSEN WILL DEPEND ON THE REASON FOR WHICH THE

COMPARISON IS BEING MADE AND THE KIND OF FARMS OR

ACRIBUS MESSES BFING CCNSIDERED:

TRANSPARENCY 1-54

INSTRUCTIONAL AREA: Agribusiness

INSTRUCTIONAL UNIT 1: Farm/Agribusiness Planning

LESSON 6: Budgets -- Farm and Agribusiness EfiterpriSe

I. Preparation for Instruction

A. Student Objectives

1. Terminal: Explain enterprise budgeting; partialbudgeting, and totalbudgeting for farm andagribusiness enterprises.

2. Specifit:

a. Define trrms.

b. Explain ho,4 enterprise budgeting is dor.e.

c; Explain what partial budgeting is and show how it

is carried out.

d. Explain what total farm budgeting is atd show how

it is carried out.

b. Review Teaching Material

I. Luening, Robert A.;andWilliam Mortenson. The Farm

Management Handbook; 6th Edition; Danville; Ill.:

Interstate Publishers; 1919;

Eicery_N.; Manning H. Becker;and Frederick J.

Smith. Fitt Business Manalement; 2nd Edit:on.

New York: Macmillan Company, 1972.

II. Presentation of Lesson

. Motivation

Students should be given an opportunity ne.ir iarrs

taitaws and agribusiness owners' experiences in business

budgeting: The owners should introduce the concept of

budgeting. Teachers should select derirable fart, erianaorsagribusiness owners to eliminate legadvi ideas on

bLdgets and the process of budgeting;

44

77

B. (..ontelAt ratline

InttAuction

Teacher should encouraFT stucerrLt views on farm andagribusiness budgeting. Pu7ils can review theresponses of the farm manc,rs and agribmilnessownersor relate thei.. personal experie,Ices in anv kind ofbudgeting.

leacher should then emphasize the Irportance rf b,Lidgetsand budgeting procesa.es to t%f.

:exits: (Use chalkboard.)

a, Budget --_A_summary of expense and income for agiven period

. Enterprise -- A business

c. Gross s.R:e -- A sale where fxp,n-,;es incurred haverot been deducted

d; Variable cost -- Costs thar cha:gt. 4i h(ExAmple: feed costs)

e. Fixed cost -- 01,tS that do not change (Example:overhe-ds)

f. Piofit illity -- The difference '-etween costs .iidreturns

g. Accrual -- To IncLase ty regular growth

h. Receipt., -- Cash received

i. Liabtlities -- Owed by the business

j Costs -- Expenses Incurred

k; Income -- Money coming into the business

Steps taken in developing enterprise budgets Usechalkboard:)

Examples of enterprise:

Farm business -- A beef feed lot of 80 steersA soybean enterprise of 90 acres

Agribusiness -- Jones Fertilizer Er:!erprise -- sellsmall packets of all types offertilizer

y5

An enterprise budget will a5i, very usefuJ in A farm -AodAgribusiness enterprise for future planning.

Steps that should be taken in enterprise budgetin.?:(Transparency 1-6-C)

a. Describe the enterprise's input and output.Example: 80 steers; 65 dairy cows; 2,010 nitrogenfertilizer packets (3-pound bags); '-,;000 pounds c'milk for sale per 7nontt; and others

b. Mention conditions of the farm business oragribusiness enterprise; includingsoileordit:onand other related factors: Determine the averageproduction of corn or milk for the year or the saleof fertilizer bags per year. Monthly averages canalso be calculated.

c. Make sure_that reasonalle pricer are fixed forinputs and outputs o:_the business. On not_listimaginary prices as this will upset your budgetp1.6nning.

d. Fill out the sections on receipt 1, variable cc,cand fixed cost in your farm or agribusinessenterprise budget listLugs. Record all expense.:ar:d costs neatly in their respective sect ions.

Example:Recipts

1; Gross sal of soybean sect ion20 (1 acre) at 0;c0c ner(300 lbs. x . 4:,27

Variable cost1. 50 lbs. of semi Jt .SC per lb. no

3.

Fixed crqt1. Land .-ha.rge

NOTE:

1. Bucgeting also gives the farmer or ne agri-business owner an insight the ftnancialsituat%on of the farm or 1.1t;iness;

2. It is impertant to t!..1.mer:bf.7 i it budgeti

essential for any k:nd cf. business and asense of direction to tae owner of any kindbusiness enterprise.

46

i; What is partial tocigeting Lirr agrtt-;ent,f-rprises? (ese che.!khold:

a; }Lt 1!; ,14rtial ivtand F)

'v Is a bydgir procu,-co, :idereA ,nd (nt is

tii;i.17get thr s ;

I) Pi!IzálIt idi,t . .income rt of the ptoused 0-ar*e. :tshow hew much inccm t'new venture:

2) 1.epayment capacit af..*;* Thl; 1ccthe cash-gertertiv :1:,pcct vcnr,pre7.:'s4:'d;

tte

pi,rdciliar of d-2.-di'd th,v

CUd tpr.t t F... roerat ,t lec:clat .

'.^

R

b

I

r

'-

VO

"'EEP S02:Gc-71NR

. TS PEC_LiF7'. 7 CHA%0E

F THE AH7A;

-77- r-,7_7

PR'1-:TL7- SS

E.1.7Z-H7S CA% 611:7 i;ISF IC X,1NY

I Pi:dv4SP1. REIN(.Y

TOTAL FARM PUEGrilV;

THE l'.;EJ.TOPY THAT S.!4,-;,;(S r:,%t41 RE-jCW=eCEc

.:E1 S1ESS

TH P----cij;--CS INCLUDE CAPITLL,

TE DU ]it THIS; THE

feuINEs C;ILL E[ AELE T( 1DE

HvflT-0-0:; !N ELD:T:Nr T11-3

:1-10L ,L7) BP aCELY

RECE-.1; IF wILL TH1: Ni:;;".6EF,

t)J'. THE "1-4E

(ILL:

-RA:NSHARENCY I- )-

.

L.....

Cl

".4I

LI

1

' r 7; L_

1

r

t 7

let

,-...,,H -",.'1, .s.-. ', '- -- " ,-

A '''' 1 - :, i k 7-1-.': `-. t'l at I '' '' t-t4i ',-, r 1 i. ni 17' r":4"- ' ';1--(t:C.6t_l ", t,'; : : -,-,i -,, r, H.,*,;-....- 1t, liciE 11,C ., ,': .,_ t."'!,, :-"- _-1,-; -,, -.,-,I t 1 +4;.'4',i ir- -(' '; '° _' Jr.. r''' -..-.4 ';) t-j i -,,_f,,,) ,- -4 S El ;'i, i ;,4 '.:, I -F. --1 '.'' ;'"'-' "... -''' ''' . '':' iIt ; ,i-, 0,,..tt11'.. ,.1'.0'

T

Farm-Agrib-usir

7: Factc.r,; Pr,iucrier Laor,CrFartIzati

1-rEparaticn for :7-truc:icri

Ftt.:de7,r Cte7.1rd6-ttr.;

their 4..ottanci.,, atd Lc tLer cr.r.antzt,

7t te : .-rs'.ortAnce_

f tt.LLr

mAIr. r1-..(Lr-r.,t,t1c, of

R-clii:rt A.; -,AP-1 . M 1;.,:%st7: :Lc irr

Mallate7;;e:it Ha-ndb-ook. ft) 1 cr;,111;Irtcr!:;tate P.T...lishInF, C-. ,

and Q. 'is.i!rtIn-t2tv: 16ti:

F470.

,9

Trac-ei

V:slt farm cr

j

r;cerail understa7:i7..g taztcr

rroduct:ion.

a. Slide p;t63-Cti.:1"

;ez:LCr

. ' hh C' Lessor.

:.t.-..dents should be slides cr tdrr.

to sh,w_hou fctcr f roduction aru at wor«..uxaries_Juld be choseni and th u1d bt-students' 1ee1. Dur-..ng th.2.

tc t. .

1

9

L. the se preset,.471.c.h:nts of the students; rh,- te:nertne f:ur .Lactor of ;',rc.ducttch;

r:resEnte.:: tc c:eari

rL.

is natt,r

: the ,wea'.- 1:;

_

it the , Ly'zirmer ; .r ti7.e r;

ibb t

n ' A

.,- !al.:rnr

.ttewf. t,Lct:on In ar..1 op.trati-nN

A7r,ru3r,', tr,- 0;!.1 rer ttj."

up tilt. thi!

all - ,

tht: over .01 :lie h.F:vc

1j e le t the t-rn. ,r:. !ertlIt.1,r6 pe!it

-c2.

I-4/1J tActOlv.tr, th(. jcf' 1r, %;der to ;;..et .:11

t1?. is !-equiro." 11;c:;(,leedc al: t;.1. f0:1

lAt;,10

t ; (1

`!' ! t Lt (:.

i)! l',,nr:1".1..!r,i.." the t t ,iT

1!. ..t t ,o- t in I t

rhc

.._firer !Ilv to

-to,!

c-f

r-cr

A 7r

t" 1

r r 7.4.: !H.!

a

t

7..ar:itte

Trc: it t

!

Jr

ki,r!-1111: 7

. r t

I

er v.( ;J:t

tc. t 1 tC.

.N.tt iv!!

t n t

r.-it ni j tiAtt..!t t

1 a r

MIM

II M

EL

Ih

Malt

I 111Nios

1111I r I m

a'Im

oron.1111.111M

.

MU

M111.1M

I =M

om111

id111111r.=

mom

1r.rrrrisigook

SriIsM

INakin&

III.Y

EIM

INE

MM

INIM

.

r

lot)

o I

: t 1T1 , S'

I .1 1 f 7

t 1;1'

r

101

1

, 1 u -

:- '2 '12

,

. o r ; o,

,

-/ lk:Fr rffl,C -''r :4,

1,5,1 11;7f C+jS'ull..St_ f.,1 A . f, fl I

-1, I 71, eit

or I rr rri 1 Are1 A 1

-1,1tit t t Ot h 1. t : ;rit 1,/ t if *i-ff

h#' fsrlf, I r fir r 3..-t d - ,,,`1 1,,;I nIr *4... 1' rt frnt r r i

I LI, j )',' ; I. ).'f Itt-

, 3 t f -

', 011 1,1/0. f

I

)t)1 oil, it)W, Iff I. -1, t 1,,1 f tr Iet lit Ti'-- 1110 '111,-I t o

') I his f Irr 11,r `11 t ICII t 11 . "-'1 I he. f I mei ot Agt 0..!; Inv';', (41..?,t ni vI

Oct rt ml tlf I Ile ;im/..tilit / I IilrveAttremt verI tit r a)(1 :4 I ),0 '

fi I II Idif I Of) I iii .* II' I ti i r '')I OM t }1,1, o'

14) 102

1

r r r

t

' Mr

1 0 1

1 0

Iii;

-

09

111

t 7

7 17c ; *:!7:-1::%.

:"W7C7 7-:t-71

.!- tar= an:. Liiz7:1'ucl- 1:7r:

rlsp. sltaticn-

7e. ...=7.crsat:7r. .scrrzn:E

112

ot

c...iJe it compul!-0:v f.,4777 wcrket,

:..,-Arzi:st benefit:- !i.

»-crkmeri'S t

ecplovce7.: cacti weei: t at n

weeks.

.1,idttor. to tlIc t

doct..it tht

H,.1.1.rarce

tOt

c,(ttle

cover!-; case,:: H.. !it t'!'erktct.

:t ib icportant pct ot 1,cs4r.essctnd agrihusines owrer

A.' ta.r uilding or ...,trut'.1ri.,;arlc: factories t-Jr, be covervz

surance against lCSI hy !ire;

urance policies cat-e puraced reA-onalcpreniums for a partIcu:.*: tIro. The

the pre=iu= Is de n: ;;T--n thecrIod pf the policy.

Pri,tium rates also var-: corTanv tc

CA to are.4.

Crop inti;Utatce is a%%:fl:ihic to a:l

armer:,

The cnlv Crop Insurance avallal-.1-e in

the federal crap Insurance.

There a:7e alc, a few Private COmpanie that

livestocL

Federal crop InsUtance chver cI th tproduction;

11366

hi insQrance covers on v the tot:i.specific acres.

Example:_ If a storm destrovs -so ,otn

the remaining acres cover the cot oftne farmer gets no payment.

NOTE: If a farmer is new 1n tIsines.;limited capital, crop insuranc is a

Louisiana farmers should contact:

Federal Crop InsuranceMilner Building Room 610200 South Lamar StreetJackson; MS 39201Phone: (601) 969-4359

9. Life and Health Insurance (Transparencies 1-9-A and 11

Advantagos of Life Insurance (Use chali,board.'

]) Exempted from income tax and a:so fror st. !

inheritance tax

. Can he used to make prompt settlerent of theestate (Payment of outstanding bills: fun,rrexpenses. and other such payments)

3) When_paid to the family it will helpsuppi:rtthe family during the period of settlement

4) May be used to help in maintaining r cite 0:

the farm

b. For the farmer or agribusiness owner, ni andhealth insurance require the payment of a premium.The company, on receiving those stipulated preriu

regularly -ram the farmer or agribusiness ownk!i-.

agrees to pay the insured or the hencfciaries afixed sum of money upon death or any otherconditions agreed.

INSURANCECONTRACT

Fatter Insurance

Or and Company

AgribusinessOwner

67 114

t purpo., e tit i it e Ite.-1 t

Irurore compenates or taysfor the lo s!, (21farmer or agrihIL;Iness owner thr,:;Agh

dejth.

NOT1:

ill

(-an he (Jut' to acc nt cot

the ptimary purpOSe_Of lite :Ind 1A,;11th

to noti:Lt the fgmil..

How mu(h life insurance does a farmer oragrO)usiness owner need? (Transnarenv

The amount of life insurance a fart!). i Or

agribusiness owner will need cpond- on the

following:

I) The Amount of !nceme per month or per ye;ir

) The Aiount of expenses per -,v nth,

expectancy its vearsi and

Ti e etOtiOtic value nt one's life.

NOTE: Since fabily needs will change over tine, It

important that the life and health insurance

:Ilan be reviewed often.

e. A tomon type of life insurance polity

1) Whole or ordinary life insurance is alo known

as cash value insurance which iF; the ttio!-A

widely used.

2) The premium amount does not change eet the

lift of the insurance agreement.

3) CaSh value may be borrowed at a certaininterest rate stipulated in the insurancepolicy or if the policy is canceled.

4) It incorporates a savings programpure insurance protection.

C. S.ested Student Activities

Students give orally the reasons for insurance.

and ersures

Students make oral reports en difierent types of farm

and agribusiness insurance that are available in theIr

community.

68 115

1. Teacher shotildhand out to the df.fr-erf.r7insurance application far7,. and Ji.ow.,!,, briet,-

the conditions stipulated fu the forms.

!;tudy Questions

1. List reasons why insurance i t.oct; iry for lava dfldagribusiness operations?

Describe briefly in your ,,wn wof-ds what liabilityin ranee is.

3. )plain briefly in your own word' what the ,t-1(7.,en':cmpensation Policy Is?

What is crop insurance?

Describe briefly what life And health insurance are.

6. List some advantages of life insurance.

69

ihttsint:,,

rk:IT 1: F,iimi-Aktihii

Lim and AgribLine,:s Records -- ir= cor ;v7ec cif "e,i,ca-w. for Keepi Theis, Fhterprici, v-t

Tor INstructi,

t!.H.c.nt iiht.C.a os

Terminal: Fxplain 4inat are records; reasnn,, forrecoic enterprise record st arol

financial statement.

Define records and list sores terms use 1.1

list different types of records.

List reas:.)ns for keeping re( .)rds.

FxpIain t'e enterprise record

Fxplain the financial statement.

Review Teaching Material

Castle, Emery N.; Manning H. Becker;Smith. najement ; 2r1k! t

New York: Macmillan Company; 1972;

Schneeberger, Kenneth C.; and Donald D. Oshurn.Financial PlanningtA Ariculturc; Danville;Ill.: IntetState Publihers;

T.uening. Robert A.,_and_Willlam P. Mortenson;Management Handbook. 6th Edition, :1..Interstate PubliSherS, 1979.

Special Arrangements

!. Materials

A. Chalkboard

70

117

r.

Pr-r.F!;e1: tc1 r*

t

t- !,,k

rr

118

procv,s cr.

:The

71ne '

trputs .7;two

tar=invegrib

119

12

12j

122

V

5. I r 1 I I 2.

e- n -= y -

t & P $ P-

12V

t - ,

p.

fl,CHINEFY AND ".7.7HE

EDUPTNT

LIABILITIP-S;

(1YPEs'

FTERMEDIATEJE-LIABILITIES

LOA, THAT _NEED TO

PID UP WITHIN :0YEAR'S

TRANSPAREWY 1-10-C

.127

`ss,a

LOW=TEWLIABILITIES]

LOANS THAT NEEDTO BE PAID_Ur IN10 YEARS OR Yr4-ir.

AN EXAMPLE OF A FINANCIAL STATEMENT

FOR

----------------------BILLY BOY DIARY FARM, DECEYEEP 31, 1982

ASSETS LIABILITIES

LPL $200,000 JOW-S FEED CO. $ 2,500

F!JILDINGS 50,000 JACKY LUMBER CO. 380

miACHINERY 28,000 TOTAL FARMLIABILITIES 2,880

S!iPPL I ES 7,000

DAIRY CATTLE

ACCDUNTS_CE I VAEL 2,003

CASH 399

TOM. ASSETS $303;399 ICTAL ASSETS $303,399

- TOTAL LIABILITIES 2,880

PROPRIETOR'S NET $300,519WORTH

TRANSPARBCY I-10-D

12

rin:Isiness

Far/AgribUSiteSs Planning

rar7.. and Agribusiness Records -- Profit aidLoss !':tdte=ent5i

nvent,:srv, Cash Fl-ow Planning, And 1..-er.reci:.iticn

Freparatt,:ln f.-,r Instruction

A. . tu_ent G1.;4,ec.tives

TertitIAI: Explain a profit and loss state=ent, anit,:entory; cash flow planning, and depreciation.

SpetifiC:

a. refine terms.

b. Explain What protit and loss statement is.

List itemS that Will 1=i included In an lnYentol

and explain the parpose of or.

d. Explain what cash flow planning is.

liesci-ihe briefly wha: (iepreciatic,n is;

ioviw Teaching Material

1. 1 ur 3i1nh, Robert' A. and William P. Mdrten!,-,6n.ThFarr;

Mahagement_Handbook. t=th Ill.:

Interstate Publishers; l92;.

CA!--tle, Emery N;; Manning Beckeri and Frederick t.f7t1th. 1.Az_timess_/-14:naketwent; 2nd FAiti;01,

Ne%4 York: The Macmillan Company; 14/2;

:.:411tieiherge.r,_Ciiii'tlerh C., and Donald D; nsburn.

Fi iiainr_ I a I here: !Iv I

Inez.Estate 1.=ii;Ifshers, 19'it

Arraniwmeni-s

I. Materials

CbslIchoard

7812a

5. Tra sTarencies

Financial Statementa

Travel

Audiovisual Equipment

Overhead projector

PresentatA.on e: Lesson

Motivation

Agritusiness

Students will Le shown examples of profit and Lossstatements; cash flow statementsi and inventory records,Teacher should ask students to eN'press their vies on t*;e

above records.

3079

.-..tent Outline

Introductten

Using students views and the records, the teacher

should introduce the lesson. Teacher stouid liltuseful points on how he keeps an tnventory and t. n,

nis_caSh_fltv Sot students can be asked to

orally their personal inventories and cash flow

statements in CASS.

Terms

a: Profit and loss statement -- It's a.n amount thatshows the net profit or loss of that business. In

some cases it is a2so called far= earningsstatement;

Income -- Money coming in (example-sales)

c. txpenses -- Money spent (example-purchases)

J. Inventory -- A cotplece llt of 7'armagribusiness assets

e; Cash flow -- InclUdes cash int: out:

the business

t. L:epreciatiou -- Terra used to exi.rez,s Ins i

Profit and Loss Statements (Trivisparenc\ 1-1f-A)

a. Profit and loss account will show how well the

business actually did over a certain period oi

time.

h. Real profit or loss of the hiP4net can ceen.

c Farmer or the agribusiness owner can OM' thl

statements to determine the prOfttability of t'o

4. Statemtnt includes !,4111i,-;i expenheN. and 'INcntcr\

changeti.

ProtitahllitytatioN that can he u4 in the

financial analysis are the following:

(i) Return On Investment -et Return to (a eta;Total As!--xt,

(ii) keturn on Equity

80

Net t:eturn to tapital

fital Equity

131

a; Art accurate inventorybusiness is necessary;

An inventory is a list oi assets sucl.:ivestcck, .act others;

The inventory is necessary for prepar:statements of the business.

Inventory evaluation should help to s"!-:ow

financial situation of the business.

e; Working assets are listed separately :Tor.

assets;

f. A completed up-to-date invent,ry is -,..se!61 r,r ta:;,

purposes;

g An inventory should !"e taiien at thethe accounting year;

It is_important that a !air \alue be tot VAC:.

Item listed.

Cash Flow Planning

a; The cash f.ow includes cash sAles, %av17;gswithdrawals, borrowed money, at..i

cash;

h; Cash outflows Include cash expense inrerttpaid, debts paid; pur!!hasesi and salaries.

The cash ilow statement can cover peri,;

month, half a year; cne full vear; of f(1

years.

Data for cash flow statement can -- !..:1A,;

previous records.

e; To develop cash flow for the future, t!.;

owner should make estimates based on hi'

experience and also seek help fr,c1 haniit

extension workers.

I. The cash flow statement will tell the !,u..11.owner his or her future needs or requ;lement .

it will en.sUre Min( l:il Ont r,i: it t

t:a _-a:77

:ne atate=en::! :ells us r--

z:at:cn _

rez:atIon is :hean at cr !sr

:Ivestcck;.:!epreciate in va:ue

o 16

rerr_2iinIrg 1:.te r!%e

:,2 scla:lcr

as,,,cts

ls Tar: t

Stude:-.t It1r,..

Nt,4entti wIth nt=p;t !

.Acco.untx that Include pro!:t ...7.1:er,-

;,tnbleas for studentt,

:7.et bvsl-s;

t prevArc . tr

shcw !hem some almp:r !

:nve;:torir b.

Que,fionn

:o;ktthe t.rielly a -,/(

a1n In vollr own t!F

e igti I 15-0 p

dttre.latIon.

s, 133

.<

..

13:)

,C1r3

,114

1

.13

11

1

,

-I

L1,1

r 1

.1 It1

.3.4

PO,a

4.II:

I4..

t ):117

4...,o

.11

1.

II,

.r

.3loo

1114/1.

IfL

1,11i

4)I 0

44).,/u

0I..

11.14

1.1

k14a

,i/1

!.4:

,44

1 4!V

.1I

1.

:ft4

A)

II

134,

'11a:

Intly

:o

WI

11

11 o

,N

. ,.41

0:11J1

1,..1

41it

KI

litIttl

)1$

(i.J1

4 ,a I

1I

.141

4,441

il.4

,114 4

14 1

V,

11;., 1

la.

1:04 .

4)44

IV1,1

!.1.6

64.11

44,A

,1

41',

?.,.

I.'(1

4,tIl

1511!

41I

1

11.)4 ,

.1

,.

11I

,

V.1`

1 16 :

Id01

1W00

.L

)..

0..0

.. 444

CI

01(75

,*11

,,'

li41I

414,

441144

4,

14 )

,

1,,,

a

.3..4 .

II II.:: N

,':.1

. 41.

4

.(1V

.141

1

4c,I 4

II

ta

ior I

141/

4I,4

4,,,1

44

11

' '

.4,1,41

4.,1

I,

LA

1114,

°O

4 4,4(

114I

,I

;;

IA:

...I

I VII

.

Tax Rate Scheduleb '! tint vortable, you it use hc tlY rate schedules.

e , :! or at- ;u;._ You

Atter v- -,u have figured lr 1r1L,.,me tax andsu'.:tra!

any tax credits you car use, ycJ trust add Intaxes that you may owe. These taxe It..1Ude the

.; :Mowing!

Self-employmert tax;

filntmum tax alternate minimum tis,x;

. f(ecapcure of :nestment creel: , and

Ant t. -ix on your individual retirement srrangemert.

TO figure the refund .r amount you owe you must know

what amoUnta can be credited as having already beenpaid. During the year yOu_tayhave been paying the taxyou awe either through withholding or by makingestimated tax payments, or through a combination of

botn methods.

the ret.,rns

Sign your name at the bottom of page 2 ot form 1040

as it appears at the top of page 1.

Bdth husband and wife must sign a ;tint retur-.Both at- liable fcr the tax;

BefOre you Mail your return; check to be sure that

you have complete:: and correctly filled it out.

a. Make sure that you have attached all thf schedulesyou need, all the W=2 forts; and a check or money

order for any amount you owe.

e. A1ways keep a copy of your income tax returntogether with the summaries* papers, and otherrecords you used In preparing it.

Always use the addressed label that is sent t( you,

because this will speed the processing of your

return.

If someone is paid to prepare your return, the

preparer must also sign your return.

h. The entire amount cn line 71 of tor= 1(4n

shoUld be included in one check; Do not make

88

separate check for your self-employment

H to to write your social security number and "19h2

1,:irm 1040 on your check.

i. A penalty of one-half of one percent will becharged for each month, or a part of a month beyondthe due date that the tax remains unpaid. Thetotal penalty is limited to 25 percent of theadditional tax due; It will not be imposed if you

can show that you had a good reason for tailirg to

pay on time;

j. If you discover an error in your return atter youfile _it, you may correct the: efF(or by filing anamendment_return on form 10APX, mmended U. S.individual income tax retutn.

C. Suggested Student Activities

I. Have students study the Louisiana_individual income tax

return form and get them to explain to the class the

details required in the form.

Provide students federal tax return forms and allow

them to practice completing those forms. Later the

teacher should correct the forms and discuss them with

the whole class;

D. Study Questions

1. Explain in your on words the Louisiana state tax and

the factors considered in completing the individu.1

income tax return.

What factors should be considered in completing the

individual federal income tax return.

89 141

NOTE ***

THE LOUISIANA STATE INCOME TAX RETURN FORM

FOR INDIVIDUALS IS THE SAKE

FOR ALL OCCUPATIONS

IN TIT. STATE.

TRANSPARENCY I=12=A

142

IN:JRUCTIoNAL AREA: Agribusiness

INSTRUCTIONAL UNIT 1: Farm/Agribusiness Planning

LESSON 13: Marketing Marketing Farm and Agribusiness Products andthe Effect of Supply and Demand on Prices of Farm Products

1: Preparation for Instruction

A; Student Objectives

1. Terminal: Explain marketing of farm and agribusinessproducts and how supply and demand aftect prices.

Specific:

a. Explain the marketing of farm products.

h. Explain holi, prices are determined and %mat causeschanges.

c. Explain tl.ie concept of supply and And; and how

it determines equilibrium price.

B; Review Teaching Material

1; Luening; Robert A. and William P. Mortenson.The karmManagement Handbook. 6th Editi.A. Danville; Ill.:

Interstate Publishiri; 1979.

Dolan; Edwin G.; and David E. Lindsey. Basic

Economics. Hinsdale; The Dryden Pr,:ys,,,,

1977.

C. Special Arrangements

1. Materials

a. Chalkboard

b. Charts

c. Transparencies

d; Slides

2; Travel N.A.

90

143

3. Audiovisual Equipment

a. OVerhead pro%ector

b. Slide projector

11. Presentation of Lesson

A. Motivation

Students should be shown slides on the marketing ofdifferent farm products. They should be encouraged toexpress their views about the material presented in theslides; Later; the teacher should ask them to tell howtheir pens; books; and other things came into being and howthey finally obtained them; Develop a healthy discussion.

14491

Content Outline

1. Introduction

Using the viewm and examples given by students; explain

A simple marketing chain for eggs;hreadiand otLerproducts. Liplain what consumers wantsareand howthey affect prices. Explain with suitable illustr.itir.the Meaning Of supply and demand and their importancein relation to price.

"- Terms

a; Marketing -- A process tty which products from afarmer or agribusiness owner reach a consumer inthe form and size he or she needs

b. Middleman -- Wholesaler and retailer wh,a aremiddlemer between the producer and consumer

c. Wholesaler -- One who purchases in hulk

d. Retailer -- Buys from the wholesaler in small

amounts

e. Price --_Prite_of A product determined by the

supply of and demand for that product

f; Variation -- Change

Demand -- Want or need fox a product or service or

for anything else

h. supply -- To satisfy a need by providing a

commodity

i. Consumers -- The users

jEquilibrium price -- It is found at the point wLe

the demand curve and supply curve intersect. It

indicates at that price there will be no surplus

or shortage. No person will have the incentive to

change the above price;

3 Markiting_FarM_And Agribusiness Products (Use

blackboard.) (Chart 1-13A)

a; Successful farm and agribusiness managers should

know how their products are marketed so that they

can adjust their production to correct market

situations and trends.

b. The marketing system does the following:

1) It transports_the farm products from theproducer to -the consumer. (Example -- Eggs are

sent from the farm to the grocery store.)

2) It processes the farm products in a form thatcan be consumed or used. (Example -- Wheat isground into flour and made into bread.)

3) It packs the product neatly and in the sizepreferred by the consumer;

It provides storage facilities for the finishedproducts until they are used or consumed;

5) The consumer has to pay for all the expenses ifhe wants to use or consume the product; Those

expenses include labor_or production costs,processing charges, and transportation charges.

4. Prices (Transparency 1 -13 -A)

a. Farmers and agribusiness owners produce usefulproducts solely for selling them.

b. After selling those products in the market, theyuse the money to get what they require.

c. Farming has become more commercialized today.

d. The price they get fcsr their products determinestheir progress.

e Prices of farm products vary greatly. For this

reason the government helps the farmers bystabilizing prices at a level reasonable to thefarmers;

f. If there is no government intervention and nomonopoly for car buyers and sellers, we say theteexists a tree Market;

5. Reasons for Price Change (Transparency I-I3-19

a. Variation in crop yields -- Crops are affected byclimatic factors which are unpredictable.

b. Variation -id consumer incomes -- Theirwagesandsalaries directly affect demand, therefore theymay reduce or raise the price.

c; Wars and other unusual circumstances can affect

prices;

93

.146

d. Changes in exports affect local prices.

e. Price is affected by seasons.

6; The demand side of how farm ;rites are made. (;.har

I-I3-B)

a. Farm products compete with other products;therefore, nothing will be sold unites rhcre is ademand for it.

h. A demand for a farm or agribusiness product canonly be brought about if people need it and canafford r' buy it. The latter can be called tuyingpower. People have wants and desires, whiChdirectly affects demand.

Example I

During festival season there is great demand toreggs; because people want tc.) mike all kinds of

cakes.

Exam Lie II

There is a great demand for turkeys duringThanksgiving.

Example III

When there is a demand for_poultry meat. farmerswill raise more poultry and, therefore, will needmore feed. As a result, the feedmills will producemore poultry feeds. In the above case, the demandfor poultry Meat increased the demand for feeds.

c. The middleman brings the products from the farmeror producer; The middleman provides the marketingmachinery to get the products to the consumer.

d. The middleman fixes the prices of the products, andthe consumer pays all expenses plus the profit;

e. When prices are high consumers buy less_ High_prices deter consumers. What they usually do isbuy alternative products that are cheaper. On theother handi When prices go down; people tend to buymore;

Example: When chicken meat it expensive, peoplewill buy less costly food items such as vegetablesor other cheaper meat.

94

147

Lo71sumers are .ilway, g

a:ter-natives.

kort1:7-ct wants are !:.

othe:

:-,onsumets make i?1 o !

budget.

Consumers as a grip determ_ic,get together and refuse to huv pori at;'0uhdi the chances are :Lc ctore ow7,el

the price to Lt vr,,,luctH

he supply side -- cot rIcf

d. The cost of produ:Ing A prot t taT,price levels.

.ne farmer or the agribusiesscontinue to produce anything that d.,; ,r

s cost.

The middlemen fix higi, pri,es t, tLei

and also to make a pr t.

The cc t of producing a pr-c-dcl,.texpenses; int-erest paid;

e; Production costs vary with timi

! The producer has to combine A:1 r`-A. tactor,. ,t

product ion, lard, ,.0:vita:, and la ', r teci,

I. suggested Student Ativities

1. Students should be Asked to illustrate by diagram-, tnearketii.g chains for their u.,-..ua7 grocery

,

As fruits, rice, potatoes, tieef, and others.

Teacher should show rxams_of h.-w prices ,arige tr,

relation to supply and demard.

3; Students should be asked to do simile calculati'

cost of production. Teacher shoul.;!_proyidenecessary data on cost from rearhr farms and

agribusiness operations;

D. Study Questions

1. Illustrate with diagrattsthe marketing chairin the _purchase of a loaf -f lread a

local food store.

95 48

c X

t is t ems ri .

145

..

.144r

!!_

1

1..1_)111

r,

_a.

..

]It)

)t I

")

TJ

(1) I t)LU

;101 >

(;)It

-4_77:(7)!

tt.1

'

!..7)C

X ..... I

C

(1.2*(71. 1.t1

t..171"

IVci

t(

)

1..70-

,44411,

.a

-

IJI

a

,...

,T.

110

As' AK

SUPPLY AND DEV.ANIJ

DETEPMINING EnUILIFILr I' ICE

THAT coNsurERsT-P:CES --C DOWN.

rt

7 2 3 4 5 6

PORK

UPPLY CURVE

(PRODUCER)

THE GRAPH BELOW SHOWSARE WILLING TO SUPPLPRICES ARE HP;HER.

PRICE

Ttl'AT DRODUCERSwHEN THE

LBS OF PORK

IHE ABOVE SHOWS THAT SUPPLYAND DEMAND DO AFFECT PRICE.

CHART I-13=B

LBS OF PORK

EQUILIBRIUM PRICE IS AT THEPOINT CF INTERSECTION OF THEDEMAND AND SUPPLY CURVE.

AT THIS PRICE THERE_WILL BENO SURPLUS OR SHORTAGE.

AT THIS PRICE NO PEPSON WILLHAVE THE INCENTIVE TO EHAR6ETHE ABOVE PRICE;

154

CTIc:.A1 Agribosine

. CT t N:T Farm/Agribusine Planning

N A2r1.:ollural Orgnizaticns

:'reparatioa fcr nstructio-1

Stut:,r. Objectives

Tr final: Explain the Purpose of agriculturalcrganizaticnr; in the United States.

. SpecItic:

a. Fxplain the purpont of the icir±ral land sick-,.

1,

-List

the purport_ _ o: Farmers Hon= Administration and

4*'Producti.Dn Credit Associatio .

Kxplain how the Cooperative Faittnsion Service; LSE.

and LASC can serv:xe farme!'S and agriculture

rtlated businesses.

Explain the usefulp,,ss 3t the Smal busines

Adinistration;

K. r.View Teaching Material

1. Schmeeherger; Kenneth C.; and Donald D. Obburn._

Financial Planninz in Aulrulture. DanVille.

Ill.: Interoft3te Publishers; 1977:

LABC; Baton Rouge: Louisiana Ant m11 Breeder,

Publications icoml the Cooptrative

Service. Baton RoUge: 1S11; Louis:,ma Coopvrative

Extension Service; 19ti4.

C. ArrAt%gements

Materialti

a. ChaUboard

slides

97 15

c Charts

Transparencies

Travel

Visit any local agency office of an agriculturalorganization in your area. Students should beinstructed on what to look for during the field trtp;

Ecutpment

a. Slide projector

Overhead projector

Presentation of Lesson

A. !.rvation

tseslides that show the functions of the variousagricultural organizations that are to be diact:ssed.Encourage students to ask question: pertaining to LEL.

purpose of the above organizations. Teacher shou:d al o

direct some usefl questions that will bring out the m4in

:unctions of these crolniztions.

156

98

Conte t Outline

.r.troducticn

C-=1:.g the abovei the teacher shOulo stress theImportance of the agticuIturaI organization to:arm.ers and to the agribusiness owners. The tea.fhu:

sh:,uld present some real situations where fzIrmer anc:

::;.ribusiness owners have benefited from th:se

crganizations.

chantboard.)

a. MortgaNe -- To give some2ne a c a:77. Frcl,:ty a,

a security for money boru,wed

Security --_The thing that servLsas a lr,tee

:or a 16an (F5Latple: a tract Of land)

Credit -- cut 163ns

J. L:.-w-rsency loans -- Money for attendiro or

pressing situations

e. Stock -- Shares Pike the oarltal oi the

business

Fcieral 1.and Banks (7ranparency : -Al

There ar.: 12 Federal :and hanis (FLB's) t!-.e

United '3tates, one in each of the 1: Farm Crllt

Diitrictb.

rut p

!l provide lon-tern loan-- They are [ :roc!

hy mortgaging real estate. The property

held as a t,ertitit,,i tor the loan granted.

To provide !.crvice to 'i(1 1611 Federal

Bank Association.i.

T1 provide farmers and ; Ines ownel

19ans.

tamers Home Administration (FMHA) (V.,c chalkb0.4r.1.)

The above is a government lending agency operatinwithin the U. S. P.A.

Farpo-.e: To provrdecredit to tarmet!, who ale ofl,Ahle

to obtain enough :-redit from other setv lvpc'

glven Are as toll..':,:

" 157

Lmergen-cy Lcans;

Operatimg Loans,

c. OtmerShip Loans.

PrOdUction Credit Associ-tio:-. (irar.spare:.cy

PUrpoSe:

a. There are many Pro.L;cti,ns Credit Associatio7.s1PCA'F) in the United States providing short andIntermediate credit and other closely relatLd-,er.Aces to farmers and agritasiness owners.

Lich borrower invests in the associati.:% jstock. PCA's are controlled hv board, ofdirectrs;

C7operative Extension Service, 7.alsiana :;tote

Universit (Use blackboard.)

i'.;r0 se:

ng

,.Ittensi)n service pur,lications are largely for pc,i-Alar

use. 11:e.. contaiu information and gived:rections that are based on research and practicalexperience and are available to farmers and othersthrough various Parish Extension eftiteS.Publication titles cover a wide LiI,jects sort,

as animal science, agricultural engla,,.ing, dair)'Ing,beef, eor:omics and resource development, field andforage crops; fish and wildlife, for;-1stry, plantdiseases; pesticides, anu many oth.rs.

LAbC -- Louisiana Animlil I:rceders cAcperati

chalkoard.)

PUrpO!,e:

To help livestocl.:_brtedt,rs upgrade theirthrough the use good sires

h. Artificial insemination service is available tocattle owners who deSireto improve thequallty ofthe breed (Dairy gnd Beef) all over LouiFiana

Business Administration (`RA) (1rar parencv

Provide loans to entervrises direct:y fu.eolvproducing crops and Ilvestorl

100

15d

b. Agribusiness owners can aLso get loans

c. The interf-',r rate is decided by tie lender within

certain SSA limits

n.g6es:ed Srudent Activities

Students shouldbeasked ro_list the names ot all localagercieS of agricultural organizations in their area.

They should be asked to interview the manager of at

leaSt tWo Pital agricultural agencies to detcrmie

thei: mai-. purpose.

1); _ac y -lestions

List all the agricultural organizations that weiz

discussed in class.

Litt, briefly the purpose ot the toll-cA;itig -aricultural

iirganizations:

a. Federal Land banksi

Farmera Mom Atiministrationi

c. PrOdUttion Credit Assaciattoni and

d Small Business Adritistration.

In what vaw does the Louisiana Cooperative zension

Service help farmers and others?

Uo' does the LAbC help the cattlemen?

10I9

FEFRAL L,!.ND

LDNO-TERM 1.0%s

THROLJJ-I '',CRTGA.3ES

A'.:,11_":.ELE- TO FRMERS Dv4NEPS

TRANSPENO I- ;'4_A

160

PR-CDUCTITi ;TEAT ;,c,:;6-C:4TICA

St-LP-1- AND iNTERMFDIA1.7-7F;M

SEPui'ICLS ij FAMEEF, AND AGRIEuSiESc-

nY nUYIN /TOOK Pi TeE ASS071;r1C':

TRANSENCY

AN `]i)-t", ;;, E N T

162

; ,

1

t;::1 :v , lug ,,,ErTA1F.-A-

;T sirtjadoc 4 1,7;

", ;41.21Ajuj J:;e7; tv AV

jo J.Ny Irtijouwiti .011,2,0,

" I

;.,

7,;gi, y .

;;.1g'nts

tne:r7enH'.

iM

.1

c."

r !..swo ,

Ru1 property acquired in luislana, regardle.- ofthe place of rentdence Of either spouse, isregarded as comonitl plovertv.

NOTE:

1) Upon death of a spouse, the interestends, one-half of the communit,, property goesto the surviving spouse; and the otrar halfgoes to succession;

2) ;f there is rt-1 A;i1-11-, it iz distroted basedpriorities to children, parents. brothers;sisters, relatives, surviving spouse, and:Ina/1y the state.

** (;(Gil; -non have first claim to an inheri- tnce.

Wills

These are important documents because rwnership andother related details are specified in them. In the

courts of law wills a1-6 accepted as legal documentsprovided they meet the necessary legal requirements.Any person over 16 years of age can make a will; ant.:

it gill direct ivents after death; In the absence of

Will, Louisiana't civil laws decide the ustter.

,i,iere are se%eral advantages of a yin; ..Ina there are

i.;:arr types of wills. (Refer co Transparency I-15-B andChart I-15-A.) NOTE: Teacher should prepare chartsthat are large enough for !itudetw_s to see.

J. Deeds (Use chalkboard.)

A deed is a written instrument to trans':er owntrshipproperty;

T}-es

a; quit-C1A4m Deed -- An instrument which purport- 1,convey only the grantor's present interest in theproperty

b. A-WaTrarrt Deed -- A document which guarantees thatthe title is goof and valuable

NOTE: A clever farmer or agriiiu.;11ess owne