Business Plan for Farms

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									This Business Plan for Farms allows entrepreneurs or business owners to create a
comprehensive and professional business plan. This template form allows a business
to outline the company's objectives and detail both current company information as well
as any past performance. Companies should include a complete market analysis in
their plan to help showcase why their business strategy will be effective in the market.
Future company plans, including production targets, management strategy, and
financial forecasting, should be used to demonstrate and confirm that the company's
short-term and long-term objective can and will be met. This model plan can be
customized to best fit the unique needs of any entrepreneur or owner that is seeking to
create a strong business plan.
                                  [INSERT IMAGE/LOGO]




                      COMPANY NAME
                                  OWNER’S NAME

                                 ADDRESS
                          CITY, STATE ZIP CODE
                                   Tel.
                                   Fax:
                                  Email:




                                BUSINESS PLAN




© Copyright 2012 Docstoc Inc.                           1
                                       Confidentiality Agreement

The undersigned reader acknowledges that the information provided by COMPANY NAME in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of COMPANY NAME.

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to COMPANY
NAME.

Upon request, this document is to be immediately returned to COMPANY NAME.




___________________
Signature




___________________
Name (typed or printed)




___________________
Date




                   This is a business plan. It does not imply an offering of securities.




© Copyright 2012 Docstoc Inc.                                                          2
                                                                             Table of Contents



1.0 Executive Summary ..................................................................................................................................................... 1
  1.1 Objectives ................................................................................................................................................................... 1
  1.2 Mission .......................................................................................................................................................................... 1
  1.3 Keys to Success ........................................................................................................................................................ 2
2.0 Company Summary...................................................................................................................................................... 2
  2.1 Company Ownership ............................................................................................................................................... 2
  2.2 Company History ...................................................................................................................................................... 2
     Table: Past Performance........................................................................................................................................... 3
3.0 Products ............................................................................................................................................................................ 4
4.0 Market Analysis Summary ......................................................................................................................................... 4
  4.1 Market Segmentation ............................................................................................................................................. 5
     Table: Market Analysis .............................................................................................................................................. 5
  4.2 Target Market Segment Strategy....................................................................................................................... 6
  4.3 Industry Analysis ...................................................................................................................................................... 6
     4.3.1 Competition and Buying Patterns .............................................................................................................. 6
5.0 Strategy and Implementation Summary ............................................................................................................. 7
  5.1 Competitive Edge ..................................................................................................................................................... 7
  5.2 Marketing Strategy .................................................................................................................................................. 7
  5.3 Sales Strategy ........................................................................................................................................................... 8
     5.3.1 Sales Forecast ................................................................................................................................................... 8
       Table: Sales Forecast ............................................................................................................................................ 8
  5.4 Milestones ................................................................................................................................................................. 10
     Table: Milestones ....................................................................................................................................................... 10
6.0 Management Summary............................................................................................................................................. 11
  6.1 Personnel Plan ......................................................................................................................................................... 11
     Table: Personnel ........................................................................................................................................................ 11
7.0 Financial Plan ................................................................................................................................................................ 11
  7.1 Important Assumptions ....................................................................................................................................... 11
  7.2 Break-even Analysis .............................................................................................................................................. 12
     Table: Break-even Analysis ................................................................................................................................... 12
  7.3 Projected Profit and Loss ..................................................................................................................................... 13
     Table: Profit and Loss .............................................................................................................................................. 13
  7.4 Projected Cash Flow .............................................................................................................................................. 16
     Table: Cash Flow ....................................................................................................................................................... 16
  7.5 Projected Balance Sheet ...................................................................................................................................... 17
     Table: Balance Sheet ............................................................................................................................................... 18
  7.6 Business Ratios ....................................................................................................................................................... 18
     Table: Ratios ............................................................................................................................................................... 19




                                                                                                                                                                               Page 1
                                      COMPANY NAME



1.0 Executive Summary

   COMPANY NAME is headquartered in Portland, Texas.

   COMPANY NAME
   OWNER’S NAME
   [INSERT ADDRESS AND CONTACT INFO]

   COMPANY NAME was established in 1976 originally by its owner, OWNER’S NAME and her
   late husband. OWNER’S NAME single-handedly and successfully continued the operation.
   COMPANY NAME resides on a 1900 acre property that is used for growing cotton and grain
   crops. Other sections of the property are rented out to other parties for additional revenue.




1.1 Objectives

   COMPANY NAME has four main objectives:
   1. To make our business stronger.
   2. To implement new technologies to focus more in detail on financial exponents.
   3. To justify payroll for experience.
   4. To acquire additional farmland to further expand the operation.

1.2 Mission

   COMPANY NAME mission is to become a strong and self-sustaining female owned farming
   operation with an interest in educating and offering training and guidance to other women;
   therefore, allowing the Company to give back to the community.




                                                                                         Page 1
                                      COMPANY NAME



1.3 Keys to Success

   COMPANY NAME keys to success are:

      To have the ability to grow and strengthen the business to allow proper marketability
      To supply the farming operation with sufficient equipment to allow for more employees,
       efficient farming, planting, maintaining and harvesting.

2.0 Company Summary

   COMPANY NAME is headquartered in Portland, Texas.

   COMPANY NAME
   [INSERT ADDRESS AND CONTACT INFO]

   COMPANY NAME was established in 1976 originally by its owner OWNER’S NAME and her
   late husband. OWNER’S NAME single-handedly and successfully continued the operation.
   COMPANY NAME resides on a 1900 acre property that is used for growing cotton and grain
   crops. Other sections of the property are rented out to other parties for additional revenue.


2.1 Company Ownership

   COMPANY NAME is a partnership Corporation; however the single owner of the company is
   OWNER’S NAME.


2.2 Company History

   COMPANY NAME sales for 2006, 2007, and 2008 were $856,335, $1,651,482 and $1,472,218,
   respectively. An extension was filed for the company's tax return for 2009.




                                                                                         Page 2
                                                COMPANY NAME




Table: Past Performance

   Past Performance
                                        2006         2007         2008
   Sales                                $856,335     $1,651,482   $1,472,218
   Gross Margin                         $856,335     $1,651,482   $1,472,218
   Gross Margin %                       100.00%      100.00%      100.00%
   Operating Expenses                   $442,066     $400,742     $403,582

   Balance Sheet
                                        2006         2007         2008

   Current Assets
   Cash                                 $134,022     $111,456     $68,225
   Other Current Assets                 $26,584      $16,628      $9,956
   Total Current Assets                 $160,606     $128,084     $78,181

   Long-term Assets
   Long-term Assets                     $106,318     $110,318     $116,060
   Accumulated Depreciation             $0           $0           $0
   Total Long-term Assets               $106,318     $110,318     $116,060

   Total Assets                         $266,924     $238,402     $194,241

   Current Liabilities
   Accounts Payable                     $0           $0           $0
   Current Borrowing                    $152,411     $100,001     $88,300
   Other      Current     Liabilities   $0           $0           $0
   (interest free)
   Total Current Liabilities            $152,411     $100,001     $88,300

   Long-term Liabilities                $0           $0           $0
   Total Liabilities                    $152,411     $100,001     $88,300

   Paid-in Capital                      $283,000     $306,454     $56,682
   Retained Earnings                    ($467,303)   ($392,095)   ($241,923)
   Earnings                             $298,816     $224,042     $291,182
   Total Capital                        $114,513     $138,401     $105,941

   Total Capital and Liabilities        $266,924     $238,402     $194,241

   Other Inputs
   Payment Days                         7            7            7




                                                                               Page 3
                                       COMPANY NAME



                            Past Performance

    $1,600,000

    $1,400,000

    $1,200,000
                                                                              Sales
    $1,000,000
                                                                              Gross
     $800,000
                                                                              Net
     $600,000

     $400,000

     $200,000

           $0
                     2006               2007              2008



3.0 Products

   COMPANY NAME is a Portland, Texas farming service specializing in grain and cotton
   production. COMPANY NAME is a high quality row crop business that offers superior products
   that are suitable for sale and exportation.


4.0 Market Analysis Summary

   The US agricultural crop production industry includes more than 1 million farms with combined
   annual revenue of $175 billion. Crop farming is the growing and harvesting of field crops such
   as grain, oilseeds, tobacco, dry beans, potatoes, vegetables and melons, fruits and nuts, and
   floriculture.

   Major products within this industry are corn for grain, soybeans, fruits and nuts as well as hay.
   Other major crops include wheat, vegetables and melons, and cotton and potatoes. Of all
   farms, 15 percent are grain or oilseed. Grain and oilseed farmers mostly practice crop rotation,
   typically alternating between plantings of grain corn and soybeans. Planting these crops in
   succession improves weed control, lowers pest and disease risk and requires less fertilizer.

   The overall market for grains and high fiber foods is immense. World whole grain and high fiber
   foods market is projected to reach about US$21 billion by 2010. This industry has experienced
   strong growth, aided by healthy demand from livestock industries and an increase in the use of
   grains in ethanol production. The primary activities of companies in this industry are wheat
   farming and wheat seed production. Similar Industries include corn farming and grain farming.

   COMPANY NAME business plan focuses solely on the grain and cotton market. COMPANY NAME
   has all the needed potential to flourish within this market. The Company can compete
   effectively by providing delicious, top-of-the line, quality products for affordable prices.




                                                                                             Page 4
                                         COMPANY NAME



4.1 Market Segmentation

   COMPANY NAME is located in Portland, Texas.      The expanded market consists of the local
   population in Nueces and San Patricio Counties. However, the immediate local market is the
   population within the city of Portland.

   Portland, Texas -Demographics
   Portland is a city in Nueces and San Patricio Counties in the U.S. state of Texas. According to
   the United States Census Bureau, the city has a total area of 9.6 mi² (24.9 km²). 7.0 mi²
   (18.1 km²) of it is land and 2.6 mi² (6.8 km²) of it (27.44%) is water.

   As of the census of 2000, there were 14,827 people, 5,021 households, and 4,051 families
   residing in the city. The population density was 2,125.5 people per square mile (820.2/km²).
   There were 5,351 housing units at an average density of 767.1/sq mi (296.0/km²). The racial
   makeup of the city was 83.79% White, 4.11% African American, 0.57% Native American,
   1.05% Asian, 0.20% Pacific Islander, 7.43% from other races, and 2.84% from two or more
   races. Hispanic or Latino of any race was 26.10% of the population.

   There were 5,021 households out of which 47.5% had children under the age of 18 living with
   them, 68.6% were married couples living together, 9.2% had a female householder with no
   husband present, and 19.3% were non-families. 16.1% of all households were made up of
   individuals and 6.1% had someone living alone who was 65 years of age or older. The average
   household size was 2.94 and the average family size was 3.30.

   In the city the population was spread out with 32.6% under the age of 18, 8.2% from 18 to 24,
   31.2% from 25 to 44, 20.0% from 45 to 64, and 7.9% who were 65 years of age or older. The
   median age was 32 years. For every 100 females there were 98.1 males. For every 100 females
   age 18 and over, there were 93.1 males. The median income for a household in the city was
   $48,574, and the median income for a family was $52,220. Males had a median income of
   $37,316 versus $25,722 for females. The per capita income for the city was $19,871. About
   5.8% of families and 7.4% of the population were below the poverty line, including 9.3% of
   those under age 18 and 10.2% of that age 65 or over.

Table: Market Analysis

   Market Analysis
                              2010     2011     2012     2013     2014
   Potential         Growth                                                CAGR
   Customers
   Crop Farming      5%       7,356    7,724    8,110    8,516    8,942    5.00%
   Livestock Sales   5%       29,537   31,014   32,565   34,193   35,903   5.00%
   Total             5.00%    36,893   38,738   40,675   42,709   44,845   5.00%




                                                                                           Page 5
                                        COMPANY NAME




4.2 Target Market Segment Strategy

   COMPANY NAME mission is to become a strong and self-sustaining farming operation with an
   interest in educating and offering training and guidance to newer operations owned by women;
   therefore, allowing the Company to give back to the community.

   Currently, COMPANY NAME serves the grain and fiber market segment. COMPANY NAME choice
   of target markets is based on comprehensive experience within the crop farming industry
   coupled with an in-depth understanding of the customer's needs. COMPANY NAME skills and
   capabilities have allowed the Company to effectively compete and establish a reputation
   within its area. However obtaining grant funding and strengthening its marketing strategy will
   improve the Company's profitability levels and build on to its customer base.

4.3 Industry Analysis

   The agriculture industry plays a vital role in the U.S economy. It supplies the country with a
   wide variety of food products and non-food products and it remains one of the Nation's larger
   industries in terms of total employment. COMPANY NAME knows that its target customers are
   concerned with quality of product; thus the Company has built its reputation on providing
   customers with exceptional yield. COMPANY NAME commodity is available for the customer
   when they need it.

4.3.1 Competition and Buying Patterns

   COMPANY NAME exists in a purely competitive market. The competition is endless and larger
   farms reap more benefits. With proper funding, the Company can become larger, stronger and
   have more eating equity by obtaining more land and equipment to maximize production.




                                                                                          Page 6
                                       COMPANY NAME



5.0 Strategy and Implementation Summary

   COMPANY NAME have clearly defined the target market and have differentiated itself by offering
   a solid solution to fulfilling its customers' needs. Reasonable sales targets have been
   established with an implementation plan designed to ensure the goals set forth below are
   achieved.

5.1 Competitive Edge

   COMPANY NAME competitive edge relies in the ability to position ourselves as strategic ally with
   customers. By building a business based on long-standing relationships with satisfied clients,
   COMPANY NAME simultaneously build defenses against competition. The longer the relationship
   stands, the more the company helps clients understand what COMPANY NAME has offer them
   and why they need it. Furthermore, COMPANY NAME focuses on making the business
   sustainable and the company products dependable by making practical, educated decisions.

5.2 Marketing Strategy

   COMPANY NAME goal is to provide its customers with exceptional products. The company knows
   what customers need and the quality that they desire; thus, COMPANY NAME aim to satisfy
   them.

   Currently, COMPANY NAME has an advantage because the owner, OWNER’S NAME, is a superior
   business woman that has excellent work ethics and offers years of industry knowledge to the
   grain and fiber industry. OWNER’S NAME has a strong farming background; in fact, she has run
   COMPANY NAME for 24 years. She has run the farm single-handedly for the last 6 years in the
   absence of her late husband.




                                                                                            Page 7
                                           COMPANY NAME




5.3 Sales Strategy

   The owner of COMPANY NAME is hardworking and has excellent work ethics; these are the skills
   which have been useful in gaining and maintaining customers. Keeping customers happy, the
   owner feels, is an implicit part of building a relationship that will encourage repeat business.

   The sales forecast monthly summary is included in the appendix. The annual sales projections
   are included here in Table below.


5.3.1 Sales Forecast

   COMPANY NAME average monthly sales are $X during the months of March-November.

   The 2010 forecast for COMPANY NAME total sales are $X. During the years 2011 and 2012 the
   Company will see a 3% annual increase.

Table: Sales Forecast

   Sales Forecast
                             2010         2011         2012
   Sales
   Crop Farming              $381,277     $392,715     $404,497
   Livestock Sales           $1,064,486   $1,096,421   $1,129,313
   Land Rentals              $73,608      $75,816      $78,091
   Total Sales               $1,519,371   $1,564,952   $1,611,901

   Direct Cost of Sales      2010         2011         2012
   Office Operations         $87,267      $89,885      $92,582
   Farm Operations           $237,101     $244,214     $251,540
   Subtotal Direct Cost of   $324,368     $334,099     $344,122
   Sales




                                                                                            Page 8
COMPANY NAME




               Page 9
                                          COMPANY NAME



5.4 Milestones

   In order to achieve the growth and marketing goals that have been outline in this business
   plan, the Company has deadlines to meet and ideas to implement. Some of these are outlined
   below:

   1. Obtain grant funding to improve business.
   2. Purchase new trucks and trailers. Updating these will help COMPANY NAME become more
      energy efficient and limit breakdowns.
   3. Purchase a GPS. Use of this will help us to streamline and accurately input plant to harvest
      costs in greater detail and reduce fatigue of employees to reduce operation costs.
   4. Get new tractors. In order to utilize GPS technology, we have to update our machinery. The
      new tractors will also give employees incentive because the equipment will be more reliable.

Table: Milestones

   Milestones

   Milestone                 Start Date   End Date     Budget       Manager   Department
   Building Expense          8/1/2010     12/31/2010   $500,000               Owner
   Equipment                 8/1/2010     10/31/2010   $1,000,000             Owner
   Utilities                 8/1/2010     12/31/2010   $10,000                Owner
   Insurance                 8/1/2010     9/1/2010     $50,000                Owner
   Rent                      8/1/2010     12/31/2010   $20,000                Owner
   Office Equipment          8/1/2010     10/1/2010    $40,000                Owner
   Repairs and Maintenance   8/1/2010     10/31/2010   $100,000               Owner
   Travel                    8/1/2010     12/31/2010   $30,000                Owner
   Auto/Truck Expense        8/1/2010     11/15/2010   $60,000                Owner
   Land Rent                 8/1/2010     10/1/2010    $50,000                Owner
   Land Purchase             8/1/2010     11/1/2010    $1,500,000             Owner
   Inventory                 8/1/2010     9/1/2010     $500,000               Owner
   Office Supplies           8/1/2010     10/1/2010    $10,000                Owner
   Legal                     8/1/2010     11/1/2010    $60,000                Owner
   Phone/Fax                 8/1/2010     10/1/2010    $10,000                Owner
   Totals                                              $3,940,000




                                                                                           Page 10
                                         COMPANY NAME



6.0 Management Summary

   COMPANY NAME is owned and operated by OWNER’S NAME The company, being small in
   nature, requires a simple organizational structure. Implementation of this organizational form
   calls for the owner, OWNER’S NAME, to make the major management decisions in addition to
   monitoring other business activities.

6.1 Personnel Plan

   The table below contains the details of our personnel plan. The detailed monthly personnel plan
   for the first year is included in the appendix.

   COMPANY NAME has two employees. The company currently has two laborers and in the near
   future would like to hire more employees as COMPANY NAME needs change.

   The owner and office manager receives currently no annual salary. One laborer is paid
   $10/hour, while the other one is paid $7.50/hour with housing on site provided at no further
   cost. Their salaries will increase in 2011 and 2012 by 3%

Table: Personnel

   Personnel Plan
                     2010      2011      2012
   Owner/Office      $0        $0        $0
   Manager
   Laborers          $44,896   $46,243   $47,630
   Total People      4         5         6

   Total Payroll     $44,896   $46,243   $47,630


7.0 Financial Plan

   The current financial plan for COMPANY NAME is to obtain grant funding in the amount of
   $500,000. The grant will be used to purchase trucks and trailers, a GPS and new tractors.

   The following sections of this plan will serve to describe COMPANY NAME financial plan in more
   detail:

      General Assumptions
      Break-even Analysis
      Profit and Loss
      Cash Flow
      Balance

7.1 Important Assumptions

   The table below presents the assumptions used in the financial calculations of this business plan
   for COMPANY NAME.




                                                                                            Page 11
                                       COMPANY NAME



7.2 Break-even Analysis

   For the Company's break-even analysis, the monthly unit’s break-even is projected to be X. The
   monthly revenue break-even is projected to be $X. The break-even analysis has been
   calculated on the "burn rate" of The Company. COMPANY NAME feels that this gives
   the provider of the grant funding a more accurate picture of the actual risk of the venture.


Table: Break-even Analysis

   Break-even Analysis

   Monthly Revenue Break-    $97,452
   even

   Assumptions:
   Average         Percent   21%
   Variable Cost
   Estimated Monthly Fixed   $76,648
   Cost




                                                                                         Page 12
                                             COMPANY NAME



7.3 Projected Profit and Loss

   COMPANY NAME Pro Forma Profit and Loss statement was constructed from a conservative
   point-of-view, and is based in large part on past performance.

Table: Profit and Loss

   Pro Forma Profit and Loss
                                2010         2011         2012
   Sales                        $1,519,371   $1,564,952   $1,611,901
   Direct Cost of Sales         $324,368     $334,099     $344,122
   Other Costs of Sales         $27,482      $28,306      $29,156
   Total Cost of Sales          $351,850     $362,405     $373,278

   Gross Margin                 $1,167,521   $1,202,547   $1,238,623
   Gross Margin %               76.84%       76.84%       76.84%


   Expenses
   Payroll                      $44,896      $46,243      $47,630
   Marketing/Promotion          $0           $0           $0
   Depreciation                 $99,996      $100,000     $100,000
   Rent                         $238,536     $245,692     $253,063
   Utilities                    $32,049      $33,010      $34,001
   Insurance                    $47,268      $48,686      $50,147
   Payroll Taxes                $6,734       $6,936       $7,145
   Other                        $450,291     $463,799     $477,713

   Total Operating Expenses     $919,770     $944,367     $969,698

   Profit Before Interest and   $247,751     $258,179     $268,925
   Taxes
   EBITDA                       $347,747     $358,179     $368,925
    Interest Expense            $8,128       $2,733       ($1,331)
    Taxes Incurred              $71,887      $76,634      $81,077

   Net Profit                   $167,736     $178,812     $189,179
   Net Profit/Sales             11.04%       11.43%       11.74%




                                                                                Page 13
COMPANY NAME




               Page 14
COMPANY NAME




               Page 15
                                              COMPANY NAME



7.4 Projected Cash Flow

   COMPANY NAME has applied for         a grant of $4,000,000. In 2010, the Company forecast that it
   will receive $4,000,000 in the        month of August. After receipt of the Grant Funding, it
   will use the grant to purchase        trucks and trailers, additional farmland and updated farm
   equipment. These purchases are       reflected in the purchase of long-term assets.

   The following table displays COMPANY NAME cash flow and the chart illustrates monthly cash
   flow in the first year. Monthly cash flow projections are also included in the appendix.

Table: Cash Flow

   Pro Forma Cash Flow
                                       2010         2011         2012
   Cash Received

   Cash from Operations
   Cash Sales                          $1,519,371   $1,564,952   $1,611,901
   Subtotal Cash from Operations       $1,519,371   $1,564,952   $1,611,901

   Additional Cash Received
   Sales Tax, VAT, HST/GST             $0           $0           $0
   Received
   New Current Borrowing               $110,000     $0           $0
   New Other Liabilities (interest-    $0           $0           $0
   free)
   New Long-term Liabilities           $0           $0           $0
   Sales of Other Current Assets       $0           $0           $0
   Sales of Long-term Assets           $0           $0           $0
   New Investment Received             $500,000     $0           $0
   Subtotal Cash Received              $2,129,371   $1,564,952   $1,611,901

   Expenditures                        2010         2011         2012

   Expenditures from Operations
   Cash Spending                       $44,896      $46,243      $47,630
   Bill Payments                       $1,193,953   $1,150,778   $1,272,199
   Subtotal Spent on Operations        $1,238,849   $1,197,021   $1,319,829

   Additional Cash Spent
   Sales Tax, VAT, HST/GST Paid        $0           $0           $0
   Out
   Principal Repayment of Current      $110,000     $0           $0
   Borrowing
   Other      Liabilities  Principal   $0           $0           $0
   Repayment
   Long-term Liabilities Principal     $40,644      $40,644      $40,644
   Repayment
   Purchase Other Current Assets       $0           $0           $0
   Purchase Long-term Assets           $500,000     $0           $0
   Dividends                           $0           $0           $0
   Subtotal Cash Spent                 $1,889,493   $1,237,665   $1,360,473

   Net Cash Flow                       $239,878     $327,287     $251,428
   Cash Balance                        $308,103     $635,390     $886,818
                                                                                            Page 16
                                    COMPANY NAME




7.5 Projected Balance Sheet

   COMPANY NAME net worth is $773,677, $952,489, and $1,141,668, for 2010, 2011, and 2012,
   respectively.




                                                                                   Page 17
                                              COMPANY NAME




Table: Balance Sheet

   Pro Forma Balance
   Sheet
                              2010        2011         2012
   Assets

   Current Assets
   Cash                       $308,103    $635,390     $886,818
   Other Current Assets       $9,956      $9,956       $9,956
   Total Current Assets       $318,059    $645,346     $896,774

   Long-term Assets
   Long-term Assets           $616,060    $616,060     $616,060
   Accumulated                $99,996     $199,996     $299,996
   Depreciation
   Total       Long-term      $516,064    $416,064     $316,064
   Assets
   Total Assets               $834,123    $1,061,410   $1,212,838

   Liabilities and Capital    2010        2011         2012

   Current Liabilities
   Accounts Payable           $12,790     $101,909     $104,802
   Current Borrowing          $88,300     $88,300      $88,300
   Other            Current   $0          $0           $0
   Liabilities
   Subtotal         Current   $101,090    $190,209     $193,102
   Liabilities

   Long-term Liabilities      ($40,644)   ($81,288)    ($121,932)
   Total Liabilities          $60,446     $108,921     $71,170

   Paid-in Capital            $556,682    $556,682     $556,682
   Retained Earnings          $49,259     $216,995     $395,807
   Earnings                   $167,736    $178,812     $189,179
   Total Capital              $773,677    $952,489     $1,141,668
   Total Liabilities and      $834,123    $1,061,410   $1,212,838
   Capital

   Net Worth                  $773,677    $952,489     $1,141,668


7.6 Business Ratios

   The table below presents the projected business ratios from the grain farming markets as a
   reference.




                                                                                      Page 18
                                              COMPANY NAME




Table: Ratios

   Ratio Analysis
                                       2010       2011       2012       Industry
                                                                        Profile
   Sales Growth                        3.20%      3.00%      3.00%      2.55%

   Percent of Total Assets
   Other Current Assets                1.19%      0.94%      0.82%      25.62%
   Total Current Assets                38.13%     60.80%     73.94%     40.67%
   Long-term Assets                    61.87%     39.20%     26.06%     59.33%
   Total Assets                        100.00%    100.00%    100.00%    100.00%

   Current Liabilities                 12.12%     17.92%     15.92%     19.28%
   Long-term Liabilities               -4.87%     -7.66%     -10.05%    20.87%
   Total Liabilities                   7.25%      10.26%     5.87%      40.15%
   Net Worth                           92.75%     89.74%     94.13%     59.85%

   Percent of Sales
   Sales                               100.00%    100.00%    100.00%    100.00%
   Gross Margin                        76.84%     76.84%     76.84%     46.76%
   Selling, General & Administrative   65.80%     65.42%     65.11%     26.02%
   Expenses
   Advertising Expenses                0.00%      0.00%      0.00%      0.32%
   Profit Before Interest and Taxes    16.31%     16.50%     16.68%     1.74%

   Main Ratios
   Current                             3.15       3.39       4.64       1.32
   Quick                               3.15       3.39       4.64       0.65
   Total Debt to Total Assets          7.25%      10.26%     5.87%      52.68%
   Pre-tax Return on Net Worth         30.97%     26.82%     23.67%     3.25%
   Pre-tax Return on Assets            28.73%     24.07%     22.28%     1.54%

   Additional Ratios                   2010       2011       2012
   Net Profit Margin                   11.04%     11.43%     11.74%     n.a
   Return on Equity                    21.68%     18.77%     16.57%     n.a

   Activity Ratios
   Accounts Payable Turnover           94.35      12.17      12.17      n.a
   Payment Days                        27         17         30         n.a
   Total Asset Turnover                1.82       1.47       1.33       n.a

   Debt Ratios
   Debt to Net Worth                   0.08       0.11       0.06       n.a
   Current Liab. to Liab.              1.67       1.75       2.71       n.a

   Liquidity Ratios
   Net Working Capital                 $216,969   $455,137   $703,672   n.a
   Interest Coverage                   30.48      94.45      0.00       n.a

   Additional Ratios
   Assets to Sales                     0.55       0.68       0.75       n.a
   Current Debt/Total Assets           12%        18%        16%        n.a
   Acid Test                           3.15       3.39       4.64       n.a
   Sales/Net Worth                     1.96       1.64       1.41       n.a
   Dividend Payout                      0.00      0.00       0.00       n.a




                                                                                   Page 19
                                                                              Appendix

Table: Sales Forecast

Sales Forecast
                          Jan       Feb       Mar       Apr       May       Jun       Jul       Aug       Sep       Oct       Nov       Dec
Sales
Crop Farming              $0        $0        $52,579   $54,990   $52,579   $60,981   $54,990   $52,579   $52,579   $0        $0        $0
Livestock Sales           $0        $0        $147,22   $149,55   $150,00   $155,09   $160,00   $155,40   $147,22   $0        $0        $0
                                              2         0         0         2         0         0         2
Land Rentals              $6,134    $6,134    $6,134    $6,134    $6,134    $6,134    $6,134    $6,134    $6,134    $6,134    $6,134    $6,134
Total Sales               $6,134    $6,134    $205,93   $210,67   $208,71   $222,20   $221,12   $214,11   $205,93   $6,134    $6,134    $6,134
                                              5         4         3         7         4         3         5

Direct Cost of Sales      Jan       Feb       Mar       Apr       May       Jun       Jul       Aug       Sep       Oct       Nov       Dec
Office Operations         $4,487    $5,276    $6,245    $8,408    $8,408    $8,408    $8,408    $8,408    $8,321    $8,408    $6,245    $6,245
Farm Operations           $10,234   $8,842    $14,987   $25,223   $25,345   $25,223   $25,223   $22,345   $22,345   $25,224   $17,645   $14,465
Subtotal Direct Cost of   $14,721   $14,118   $21,232   $33,631   $33,753   $33,631   $33,631   $30,753   $30,666   $33,632   $23,890   $20,710
Sales




                                                                                                                                                  Page 1
                                                                               Appendix

Table: Personnel

Personnel Plan
                   Jan      Feb      Mar      Apr      May      Jun      Jul      Aug      Sep      Oct      Nov      Dec
Owner/Office       $0       $0       $0       $0       $0       $0       $0       $0       $0       $0       $0       $0
Manager
Laborers           $3,033   $3,033   $6,533   $3,033   $3,033   $3,033   $3,033   $3,033   $3,033   $6,533   $3,033   $4,533
Total People       3        3        3        3        3        3        3        3        4        4        4        4

Total Payroll      $3,033   $3,033   $6,533   $3,033   $3,033   $3,033   $3,033   $3,033   $3,033   $6,533   $3,033   $4,533




                                                                                                                               Page 2
                                                                                        Appendix

Table: Profit and Loss

Pro Forma Profit and
Loss
                                   Jan        Feb        Mar       Apr       May       Jun       Jul       Aug       Sep       Oct        Nov        Dec
Sales                              $6,134     $6,134     $205,93   $210,67   $208,71   $222,20   $221,12   $214,11   $205,93   $6,134     $6,134     $6,134
                                                         5         4         3         7         4         3         5
Direct Cost of Sales               $14,721    $14,118    $21,232   $33,631   $33,753   $33,631   $33,631   $30,753   $30,666   $33,632    $23,890    $20,710
Other Costs of Sales         10%   $0         $0         $2,123    $3,363    $3,375    $3,363    $3,363    $3,075    $3,067    $3,363     $2,389     $0
Total Cost of Sales                $14,721    $14,118    $23,355   $36,994   $37,128   $36,994   $36,994   $33,828   $33,733   $36,995    $26,279    $20,710

Gross Margin                       ($8,587)   ($7,984)   $182,58   $173,68   $171,58   $185,21   $184,13   $180,28   $172,20   ($30,861   ($20,145   ($14,576
                                                         0         0         5         3         0         5         2         )          )          )
Gross Margin %                     -          -          88.66%    82.44%    82.21%    83.35%    83.27%    84.20%    83.62%    -          -          -
                                   139.99%    130.16%                                                                          503.12%    328.42%    237.63%


Expenses
Payroll                            $3,033     $3,033     $6,533    $3,033    $3,033    $3,033    $3,033    $3,033    $3,033    $6,533     $3,033     $4,533
Marketing/Promotion                $0         $0         $0        $0        $0        $0        $0        $0        $0        $0         $0         $0
Depreciation                       $8,333     $8,333     $8,333    $8,333    $8,333    $8,333    $8,333    $8,333    $8,333    $8,333     $8,333     $8,333
Rent                               $0         $0         $26,504   $26,504   $26,504   $26,504   $26,504   $26,504   $26,504   $26,504    $26,504    $0
Utilities                          $0         $0         $3,561    $3,561    $3,561    $3,561    $3,561    $3,561    $3,561    $3,561     $3,561     $0
Insurance                          $0         $0         $5,252    $5,252    $5,252    $5,252    $5,252    $5,252    $5,252    $5,252     $5,252     $0
Payroll Taxes                15%   $455       $455       $980      $455      $455      $455      $455      $455      $455      $980       $455       $680
Other                        30%   $0         $0         $61,781   $63,202   $62,614   $66,662   $66,337   $64,234   $61,781   $1,840     $1,840     $0

Total          Operating           $11,821    $11,821    $112,94   $110,34   $109,75   $113,80   $113,47   $111,37   $108,91   $53,003    $48,978    $13,546
Expenses                                                 3         0         2         0         5         2         8

Profit Before Interest and         ($20,408   ($19,805   $69,636   $63,340   $61,833   $71,413   $70,655   $68,913   $63,284   ($83,864   ($69,123   ($28,122
Taxes                              )          )                                                                                )          )          )
EBITDA                             ($12,075   ($11,472   $77,969   $71,673   $70,166   $79,746   $78,988   $77,246   $71,617   ($75,531   ($60,790   ($19,789
                                   )          )                                                                                )          )          )
 Interest Expense                  $1,624     $1,263     $651      $623      $595      $566      $538      $510      $482      $454       $425       $397
 Taxes Incurred                    ($6,610)   ($6,320)   $20,696   $18,815   $18,371   $21,254   $21,035   $20,521   $18,841   ($25,295   ($20,865   ($8,556)
                                                                                                                               )          )

Net Profit                         ($15,423   ($14,747   $48,290   $43,902   $42,867   $49,592   $49,082   $47,882   $43,961   ($59,023   ($48,684   ($19,963
                                   )          )                                                                                )          )          )
Net Profit/Sales                   -          -          23.45%    20.84%    20.54%    22.32%    22.20%    22.36%    21.35%    -          -          -
                                   251.43%    240.42%                                                                          962.22%    793.67%    325.45%




                                                                                                                                                                Page 3
                                                                                                        Appendix

Table: Cash Flow

Pro Forma Cash Flow
                                                  Jan        Feb         Mar        Apr        May         Jun        Jul        Aug        Sep        Oct         Nov         Dec
Cash Received

Cash from Operations
Cash Sales                                        $6,134     $6,134      $205,935   $210,674   $208,713    $222,207   $221,124   $214,113   $205,935   $6,134      $6,134      $6,134
Subtotal Cash from Operations                     $6,134     $6,134      $205,935   $210,674   $208,713    $222,207   $221,124   $214,113   $205,935   $6,134      $6,134      $6,134

Additional Cash Received
Sales Tax, VAT, HST/GST Received          0.00%   $0         $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
New Current Borrowing                             $110,000   $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
New Other Liabilities (interest-free)             $0         $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
New Long-term Liabilities                         $0         $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
Sales of Other Current Assets                     $0         $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
Sales of Long-term Assets                         $0         $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
New Investment Received                           $0         $0          $0         $0         $0          $0         $500,000   $0         $0         $0          $0          $0
Subtotal Cash Received                            $116,134   $6,134      $205,935   $210,674   $208,713    $222,207   $721,124   $214,113   $205,935   $6,134      $6,134      $6,134

Expenditures                                      Jan        Feb         Mar        Apr        May         Jun        Jul        Aug        Sep        Oct         Nov         Dec

Expenditures from Operations
Cash Spending                                     $3,033     $3,033      $6,533     $3,033     $3,033      $3,033     $3,033     $3,033     $3,033     $6,533      $3,033      $4,533
Bill Payments                                     $340       $10,168     $13,957    $143,200   $155,375    $154,706   $161,229   $160,483   $154,723   $147,264    $50,063     $42,445
Subtotal Spent on Operations                      $3,373     $13,201     $20,490    $146,233   $158,408    $157,739   $164,262   $163,516   $157,756   $153,797    $53,096     $46,978

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out                  $0         $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
Principal Repayment of Current                    $0         $40,000     $70,000    $0         $0          $0         $0         $0         $0         $0          $0          $0
Borrowing
Other Liabilities Principal Repayment             $0         $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
Long-term       Liabilities   Principal           $3,387     $3,387      $3,387     $3,387     $3,387      $3,387     $3,387     $3,387     $3,387     $3,387      $3,387      $3,387
Repayment
Purchase Other Current Assets                     $0         $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
Purchase Long-term Assets                         $0         $0          $0         $0         $0          $0         $500,000   $0         $0         $0          $0          $0
Dividends                                         $0         $0          $0         $0         $0          $0         $0         $0         $0         $0          $0          $0
Subtotal Cash Spent                               $6,760     $56,588     $93,877    $149,620   $161,795    $161,126   $667,649   $166,903   $161,143   $157,184    $56,483     $50,365

Net Cash Flow                                     $109,374   ($50,454)   $112,058   $61,054    $46,918     $61,081    $53,475    $47,210    $44,792    ($151,050   ($50,349)   ($44,231)
                                                                                                                                                       )
Cash Balance                                      $177,599   $127,145    $239,203   $300,257   $347,174    $408,255   $461,730   $508,940   $553,732   $402,682    $352,334    $308,103




                                                                                                                                                                                           Page 4
                                                                                                         Appendix

Table: Balance Sheet

Pro Forma         Balance
Sheet
                                             Jan         Feb         Mar         Apr         May           Jun         Jul          Aug          Sep          Oct         Nov         Dec
Assets                          Starting
                                Balances

Current Assets
Cash                            $68,225      $177,599    $127,145    $239,203    $300,257    $347,174      $408,255    $461,730     $508,940     $553,732     $402,682    $352,334    $308,103
Other Current Assets            $9,956       $9,956      $9,956      $9,956      $9,956      $9,956        $9,956      $9,956       $9,956       $9,956       $9,956      $9,956      $9,956
Total Current Assets            $78,181      $187,555    $137,101    $249,159    $310,213    $357,130      $418,211    $471,686     $518,896     $563,688     $412,638    $362,290    $318,059

Long-term Assets
Long-term Assets                $116,060     $116,060    $116,060    $116,060    $116,060    $116,060      $116,060    $616,060     $616,060     $616,060     $616,060    $616,060    $616,060
Accumulated                     $0           $8,333      $16,666     $24,999     $33,332     $41,665       $49,998     $58,331      $66,664      $74,997      $83,330     $91,663     $99,996
Depreciation
Total Long-term Assets          $116,060     $107,727    $99,394     $91,061     $82,728     $74,395       $66,062     $557,729     $549,396     $541,063     $532,730    $524,397    $516,064
Total Assets                    $194,241     $295,282    $236,495    $340,220    $392,941    $431,525      $484,273    $1,029,415   $1,068,292   $1,104,751   $945,368    $886,687    $834,123

Liabilities and Capital                      Jan         Feb         Mar         Apr         May           Jun         Jul          Aug          Sep          Oct         Nov         Dec

Current Liabilities
Accounts Payable                $0           $9,851      $9,198      $138,020    $150,226    $149,331      $155,874    $155,321     $149,703     $145,587     $48,614     $42,004     $12,790
Current Borrowing               $88,300      $198,300    $158,300    $88,300     $88,300     $88,300       $88,300     $88,300      $88,300      $88,300      $88,300     $88,300     $88,300
Other Current Liabilities       $0           $0          $0          $0          $0          $0            $0          $0           $0           $0           $0          $0          $0
Subtotal            Current     $88,300      $208,151    $167,498    $226,320    $238,526    $237,631      $244,174    $243,621     $238,003     $233,887     $136,914    $130,304    $101,090
Liabilities

Long-term Liabilities           $0           ($3,387)    ($6,774)    ($10,161)   ($13,548)   ($16,935)     ($20,322)   ($23,709)    ($27,096)    ($30,483)    ($33,870)   ($37,257)   ($40,644)
Total Liabilities               $88,300      $204,764    $160,724    $216,159    $224,978    $220,696      $223,852    $219,912     $210,907     $203,404     $103,044    $93,047     $60,446

Paid-in Capital                 $56,682      $56,682     $56,682     $56,682     $56,682     $56,682       $56,682     $556,682     $556,682     $556,682     $556,682    $556,682    $556,682
Retained Earnings               ($241,923)   $49,259     $49,259     $49,259     $49,259     $49,259       $49,259     $49,259      $49,259      $49,259      $49,259     $49,259     $49,259
Earnings                        $291,182     ($15,423)   ($30,170)   $18,120     $62,021     $104,888      $154,481    $203,562     $251,444     $295,406     $236,383    $187,699    $167,736
Total Capital                   $105,941     $90,518     $75,771     $124,061    $167,962    $210,829      $260,422    $809,503     $857,385     $901,347     $842,324    $793,640    $773,677
Total Liabilities         and   $194,241     $295,282    $236,495    $340,220    $392,941    $431,525      $484,273    $1,029,415   $1,068,292   $1,104,751   $945,368    $886,687    $834,123
Capital

Net Worth                       $105,941     $90,518     $75,771     $124,061    $167,962    $210,829      $260,422    $809,503     $857,385     $901,347     $842,324    $793,640    $773,677




                                                                                                                                                                                                  Page 5
                                                               Appendix


								
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