What is the purpose of business planning?
Business planning is done to provide
direction and increase the probability for success within an agricultural
business. In agricultural businesses, planning may be even more vital because of
the inherent uncertainty associated with agricultural production. Some important
sources of uncertainty include production risk, price risk, financial (or
interest rate) risk, and changes in government programs. The business planning
process allows the planners to develop objectives and goals for the business
that should keep things running smoothly and allow everyone to know where the
business is headed.
See our publication Agribusiness Planning: Providing Direction for Agricultural Firms for a more complete look at business planning.
Also check out our calendar or contact your local Extension office for upcoming business planning educational programs where you can get hands-on experience at starting to develop your own business plan.