1. Strategic Business Planning for Commercial Producers MBC Farms Case Study

2. Strategic Business Planning for Commercial Producers Location and Enterprises Located in northwest Indiana Cash grain farm and dairy operation –3,000 acres 1,300 corn 1,300 soybeans 400 specialty corn crops –250 dairy cows –Small beef cow herd

3. Strategic Business Planning for Commercial Producers Resources Soils are productive –Yields Corn: 150 bu/acre Soybeans: 47 bu/acre Specialty corn: 153 bu/acre Dairy herd is productive –22,000 hundredweights (cwt) production per year per cow average

4. Strategic Business Planning for Commercial Producers The Operation Mike, 63, general manager –Side insurance business –Never married Betty, 37, manages dairy operation –Graduated with degree in veterinary medicine –Married, no kids Craig, 33, manages crop operation –Graduated with degree in agricultural economics –Married, two kids

5. Strategic Business Planning for Commercial Producers Farm Assets Balance sheet organization –Current –Non-current (long term)

6. Strategic Business Planning for Commercial Producers Cost and Market Values Cost basis of assets –$2,408,799 Market basis of assets –$4,655,476

7. Strategic Business Planning for Commercial Producers Current Liabilities

8. Strategic Business Planning for Commercial Producers Noncurrent Liabilities

9. Strategic Business Planning for Commercial Producers Owner Equity CostMarket Total assets$2,408,799$4,655,476 Total farm liabilities1,121,439 Equity Contributed capital00 Retained earnings1,287,360 Valuation equity ----------2,246,677 Net Worth1,287,3603,534,037

10. Strategic Business Planning for Commercial Producers Schedule F Revenue

11. Strategic Business Planning for Commercial Producers Schedule F expenses

12. Strategic Business Planning for Commercial Producers Form 4797

13. Strategic Business Planning for Commercial Producers