IFMAPS Individual Business Planning Assistance

IFMAPS is n A free, confidential service assisting Oklahoma farmers and ranchers with financial business planning since 1985 n Trained financial specialists work with families one-on-one to develop financial statements and evaluate alternative plans

Who are the IFMAPS specialists? n Extension area agricultural economics specialists n Specially trained part-time Extension employees with business and farm backgrounds (called financial diagnostic specialists or FDSs)

How do you arrange IFMAPS assistance? Several alternatives: n Contact the local Extension office or n Contact an area Agricultural Economics specialist or n Call the IFMAPS office in Stillwater at

IFMAPS process n Producer initiates contact with IFMAPS n Case is assigned to local IFMAPS specialist through Stillwater office n IFMAPS specialist contacts producer to discuss information needed n Producer gathers and summarizes farm records

IFMAPS process (continued) n IFMAPS specialist and producer arrange a mutually convenient time to meet n IFMAPS specialist uses computer software to summarize data gathered into enterprise budgets and financial statements

IFMAPS process (continued) n IFMAPS specialist reviews the financial statements with the producer Confirms data is correct Discusses financial situation and expected performance Helps develop alternatives to be analyzed, if any n IFMAPS specialist generates financial statements for alternative plans and reviews them with the producer

Software n IFMAPS specialists use Integrated Farm Financial Statements (IFFS) software to complete plans for producers n IFFS is spreadsheet-based software for Excel 97 or later

Software Debt worksheet Balance sheet Cash flow statement Additional Information Income statement Financial ratios Stress test Crop and Livestock Budgets

Examples of analyses completed n Can we purchase additional land (or machinery and equipment) and make it pay? n How can our operation earn enough income to support a second generation? n How will the change in government programs affect the farm’s financial outlook? n Can we qualify for a Linked Deposit loan?

What do producers gain? n Improved understanding of the farm’s financial position and performance n Assistance in identifying strategies to improve the farm finances n Referrals to other educators and agencies where appropriate

Risk Management n Producers can reduce their risk through Sound financial business planning Reducing or eliminating enterprises that have historically been negative Analyzing the feasibility of diversification

Cost? n No cash cost to Oklahoma producers n Funding comes primarily from grants from the state legislature through the Oklahoma Department of Agriculture

What farmers and ranchers say: n “…helps individuals look at their overall program and see what pays and what does not.” n “The information received was very important in establishing future plans for my farm operation.” n “I think it’s a tool all of us in production need to use. It puts it on paper to see, what a lot of us assume we know. I appreciate what you are doing.”