Document Type

Article

Publication Date

7-15-1989

Keywords

financial management, farm financial

Abstract

As conditions in the ag economy worsened the early 1980s, it became apparent that m any farmers and ranchers were crisis managing their operations. They responded to situations as they developed, instead of anticipating changes and preparing ways to cope. The South Dakota Cooperative Extension Service (SDCES) realized crisis-managing would be disastrous for many producers and recognized a need for educational programs to help producers manage the crisis. The Planning For Tomorrow Today (PTT) program was developed by the SDCES to meet this need. PTT was designed to be used by any producer, whether he was experiencing financial difficulties or not, who wanted to examine reorganizing or restructuring alternatives for his operation in an attempt to increase the financial viability of the business. Fifteen South Dakota counties participated in the pilot program during the winter of 1985-86. Winter months, primarily November to March, were chosen to deliver the program in an attempt to maximize producer participation. via a workshop setting. PTT was delivered During the workshops, participants were encouraged to either develop or formalize short- and long-term personal and business goals. Based on these goals, participants developed a management plan for the operation in order to meet the identified objectives. Through PTT workshops, participants learned the benefits of better management through planning, controlling and analyzing their current operation. Participants could also examine alternatives for their operation and determine what would be required to bring an alternative plan into reality. PTT's success during the pilot year, led to its expansion into a statewide program in 1986. As economic conditions improved in the ag sector during 1987, the focus of PTT changed to reflect the new operating environment. Instead of stressing farm financial management as a way to cope, PTT workshops provided the mechanism to incorporate farm financial analysis into a day-by-day farm management strategy for farmers/ranchers. Results from the workshops are very encouraging. several producers reported they were able to obtain financing for the subsequent planting season based on the plans they developed during the PTT workshops. Lenders who reviewed the operating plans were equally pleased

Publisher

Department of Economics, South Dakota State University

Series Number

89-6

Number of Pages

49

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