1. Arlin Brannstrom, MS, MBA, AAC Faculty Associate, UW Center for Dairy Profitability

2.  1970’s dial-up dumb terminals  1980’sDOS based personal computers  1990’sWindows Interface  2000’s Windows with remote support via the Internet

3.  Remote Webinars ◦ Citrix Goto Webinar ◦ Adobe Connect ◦ Others  One on one training & support ◦ Citrix GoToMeeting ◦ Adobe Connect ◦ Teaching Labs

4.  UW Short Course Students  Extension Agents / Tech College Instructors  Producers  Lenders

5.  Balance Sheets – Asset / Liability Snapshots  FINAN (Financial Analysis of past year)  Annual Plan (Financial project – no changes)  FINLRB (Financial Alternatives steady state 3- 5 years out)  FINFLO (Monthly cash flow projections next year)

6.  Traditional teaching lab ◦ 15-20 students 3x/week for 6 weeks  1-2 weeks on balance sheets and budgets  1-2 weeks on FINAN / FINLRB  2 weeks open lab time to develop a financial plan

7. ◦ 10-15 agents via webinars 1-2 hours  Work through case farms  Usually one directional dialog (Instructor only)  Possible alternatives:  Pass keyboard and screen to anyone on the call  Share keyboard and mouse movement between instructor and students.

8.  One on one training with specific client cases  Extension Agents  Extension Agents with producers ◦ No direct requests from lenders…

9.  Some loans and loan terms can be difficult to model for example: ◦ Interest only for a specified period ◦ Interest assists tacked on to end of loan ◦ Undocumented accounts payable  Assets difficult to measure and value: ◦ How many tons in a 40x100 bunker 20 feet high? ◦ What’s the value of farm land? Buildings? Mach? ◦ Non-traditional enterprises? Water buffalo, camels? Horse trainers, etc.

10.  Interest rates and terms vary widely  Are principal balances consistent between years?  What values should be assigned to major commodities for long range planning?  Should FINAN results be checked against Schedule F?

11.  Agents ◦ Competition for time ◦ General financial literacy ◦ Unfamiliar coefficients and budget data ◦ Conceptual differences between profitability in the long run and cash flow in the interim  Students ◦ General financial literacy ◦ Unfamiliar coefficients and budget data ◦ Conceptual differences between profitability in the long run and cash flow in the interim

12.  Do we ever take time to follow up to see if the plan was implemented?  Do we know the farmer understands the assumptions implicit in the model?  Can we assume that those with a plan are better off than others?

13.  Is Farm Financial modeling practical for Extension Agents / Ag Lenders?  Is Farm Financial modeling practical for farmers  Is Finpack better suited to financial consultants?  How do we measure modeling competency?