Guidelines for Case Study Presentation Attached are pictures and some financial information about a grain and beef farm in south central Kansas. The farm family consists of a husband and a wife (Tom and Jane Farmer) and their two kids (Nate and Amy). Nate is in college and Amy is in high school. This farm is located about 10 to 15 miles from Wichita in Sedgwick County. The farm is located along a paved 2-lane highway with easy access into Wichita. While this farm has been doing fine financially, the Farmers two children, Nate and Amy, have expressed some interest in returning to the family farm. The Farmers are considering expanding into the agritourism arena. The Farmers know very little about agritourism other than what they have seen in other locations. Some of the agritourism farms they have visited include farms that offer petting zoos, pumpkin patches, corn mazes, and u-pick vegetable and fruit operations. They know there are other possibilities as well. About the farm The Farmer s farm consists of 2,504 total acres with 1634 crop acres, 785 pasture acres and the remainder of the farm in buildings and timber (85 acres). Of these 2,504 acres, the Farmers own 725 acres and rent 1779 acres. The Farmers raise corn, grain sorghum, soybeans, wheat, and alfalfa hay. In addition, they have 38 beef cows with 105 beef feeders. The 3 pages of financial information have more detailed information about their farm, the revenue and expenses for 2014, and their beginning and ending balance sheet for 2014. Assignment Your school s assignment for the case study is as follows: 1) Develop a 4-minute PowerPoint presentation that, at a minimum, addresses the following questions: a. What is the current state of the Farmer s farm and their outlook without making any changes? b. What are some agritourism businesses the Farmers should consider and what are the strengths and weakness of these opportunities c. How should the Farmers proceed under the assumption Nate and Amy want to return to the family farm. 2) The PowerPoint presentation will be the only part being graded. There are no other materials to turn in. The presentation should be geared toward anyone with a strong interest in the farm (i.e., other family members, lenders, input suppliers, etc.) 3) The material in the packet is just the starting for building your case study. The USDA has additional information about crop production, yield histories, cost of production, etc. for the state of Kansas. In addition, Kansas State University, through AgManager.info has plenty of information and tools that could be use for a case study. Google is always your friend as well particularly when it comes to researching agritourism.
4) The attached rubic provides details about how the presentations will be scored. 5) The pictures included of the farmstead are currently being used in support of the current farm operation but could be used to support any agritourism plans as well.
Case Study Evaluation Sheet School: Title: Reviewer: Topic/Rating Possible Point Score for each Category Unacceptable (0 to 2) Marginal (C: 2 to 4) Acceptable (B: 4 to 6) Exceptional (A: 6 to 7) 1 3 5 7 Points Comments Structure of Presentation Not possible to understand presentation due to absence of structure. Difficult to follow presentation due to erratic topical shifts and jumps. Most information is presented in logical order which is easy to follow. Presented in a logical, interesting and novel sequence, which is easily followed. PowerPoint Slides Missing or impossible to read. Misspellings and other mistakes Unattractive, hard to follow, either too busy or not enough info Ok appearance. Slightly too busy or lacking in info Attractive and easy to follow. Contains the right amount of info Knowledge of Subject Material No grasp of information. Unable to answer questions about subject. Uncomfortable with information. Capable only of answering rudimentary questions. At ease with content and able to elaborate and explain to some degree. Demonstration of full knowledge of the subject with explanations and elaboration. Methods and Analysis Methods and results were unclear. Hard to understand the findings of the model and implications for the problem being examined. Methods were somewhat unclear. Results were not strongly supported by the methods used. Methods were appropriate, but lacked in some areas or were unclear. Methods used were appropriate. Very clear and logical approach to how the conclusions and results were reached Delivery & Speaking Skills Significant mumbling and incorrect pronunciation of terms. Voice level too low or too high. Monotonous, no eye contact, rate of speech too fast/ slow Occasional mispronunciation of terms. Little eye contact, uneven rate, only little expression Voice is clear and at a proper level. Most words pronounced correctly. Some eye contact, steady rate, excessively rehearsed Clear voice and correct, precise pronunciation of terms. Good eye contact, steady rate, enthusiasm, confidence Candidate Appearance Sweats, Shorts, flip-flops, hair uncombed Jeans, t-shirt, polo shirt, tennis shoes Business casual: Dockers or other dress slacks, polo shirt, blouse, dress shoes Professional: (or suit or sport coat), shirt, tie, dress slacks, skirt, dress, dress shoes Presentation Length Too long or too short. +/ 2 minutes +/ 1.5 minutes +/ 1 minutes +/ 30 seconds Point Average (= total points/7) Please list any other comments on the back of this sheet.
2014 Data - South Central Detailed Cost Summary Total Costs* Livestock Total Crop Total Crop Acre 1634. Hired Labor Operator Labor Family Labor 22,004 66,573 4,975 3,824 9,158 935 18,150 56,852 4,039 11.10 34.78 2.47 Total Labor Gen Mach Repair Crop Mach Repair Irrigation Equip Repair Machine Hire Gas-Fuel-Oil Farm Auto Expense Depr - Motor Vehicle Depr - Machinery $93,552 30,913 5,993 2,964 24,710 33,507 895 30,703 25,660 $13,918 2,529 2,234 2,289 49 1,473 1,181 $79,041 28,211 5,993 2,964 22,430 30,863 846 29,052 24,198 $48.36 17.26 3.67 1.81 13.72 18.88 0.52 17.77 14.80 Total Machinery Seed-Crop Expense Crop Insurance Fertilizer-Lime Irrigation Fuel Crop Stor-Marketing Herbicide-Insecticide Crop Supplies $155,346 43,157 15,179 83,884 4,906 1,990 43,150 166 $9,756 92 54 $144,557 43,157 15,179 83,792 4,906 1,990 43,096 166 $88.44 26.40 9.29 51.27 3.00 1.22 26.37 0.10 Total Crop Expenses Feed Purchased Vet-Medicine-Drugs Lvstk Marketing-Breeding Livestock Supplies $192,431 30,915 4,687 1,742 3,069 $146 30,915 4,687 1,742 3,069 $192,285 $117.64 Total Lvstk Expenses Building Repair Conservation Depr - Buildings $40,414 2,302 433 4,274 $40,414 480 896 1,801 433 3,335 1.10 0.26 2.04 Total Improvement Interest Paid Cash Farm Rent Net Curr Asset Chg Net Int Asset Chg Net LT Asset Chg $7,009 17,482 20,450 15,254 23,330 46,648 $1,376 2,888 4,876 1,556 3,554 5,392 $5,570 14,390 15,574 13,750 19,778 40,925 $3.41 8.80 9.53 8.41 12.10 25.04 Total Asset Charges Fee-Publ-Travel Real Estate Tax Property Taxes Gen Farm Insurance Farm Utilities Utilities $123,164 5,573 7,974 1,074 10,610 3,232 2,996 $18,265 506 569 79 891 466 793 $104,417 5,002 7,404 995 9,674 2,766 2,203 $63.88 3.06 4.53 0.61 5.92 1.69 1.35 Total Other Expenses $31,460 $3,305 $28,043 $17.16 Total $643,376 $87,179 $553,912 $338.90 * Total costs may include costs allocated to custom work and/or other enterprises
2014 Data - South Central Kansas Summary Income and Expense Analysis 1 2 3 4 5 6 7 8 9 Kansas Farm Management Association Annual ProfitLink Summary Beef 91,142 Dairy and Milk 0 Sheep 0 Swine 0 Poultry and Eggs 0 Other Livestock/Hedging 2,851 Custom Feeding 12,191 Feed Purchased -29,941 Livestock Value Produced $76,243 10 11 12 13 14 15 16 17 18 19 20 21 Corn 98,846 Grain Sorghum 40,713 Soybeans 66,995 Sunflowers 208 Wheat 103,705 Hay and Forage 13,570 Other Crop 12,119 Government Payments 17,724 Crop Insurance Proceeds 35,730 Machine Work 17,099 Other Income/Hedging 28,532 Value of Farm Production $511,484 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Hired Labor 22,004 Machinery Repairs 40,142 Irrigation Repairs 2,964 Building Repairs 2,302 Seed/Other Crop Expense 43,157 Crop Insurance 15,179 Fertilizer-Lime 83,884 Machine Hire 24,710 Organization Fees, Publications 5,573 Vet-Med-Drugs 4,687 Misc Crop Expense 1,990 Misc Livestock Expense 1,742 Dairy Expense 0 Gas-Fuel-Oil 33,507 Irrigation Energy 4,906 Real Estate Taxes 7,974 Personal Property Taxes 1,074 General Farm Insurance 10,610 Utilities 6,229 Cash Farm Rent 20,450 Herbicide-Insecticide 43,150 Conservation 1,407 Auto Expense 895 Total Operating Expense $378,537 46 47 48 49 50 Interest Paid 17,482 Depreciation-Machinery 56,363 Depreciation-Buildings 4,274 Total Farm Expense $456,656 Net Farm Income $54,828 51 52 53 54 55 56 Unpaid Family Labor 4,975 Unpaid Operator Labor 66,573 Current Asset Charge 15,254 Non-Current Asset Charge 69,977 Return to Labor & Management -35,377 Return to Capital 763
Ratios 57 58 59 60 61 62 63 64 65 Average Debt to Asset Ratio 0.2311 Assets/Loans January 1 December 31 66 67 68 69 70 71 72 73 74 75 Labor 76 77 78 79 80 Net Farm Income/Worker 37,535 Per Operator Basis 81 82 83 Net Farm Income/Operator 56,331 Other Factors 84 85 86 Acres Rented Acres 87 Total Acres 2504. 725. 1779. 90 Total Crop Acres 1634. 500. 1134. 91 Pasture Acres 785. 198. 587. 92 Farmstead-Timber Acres 85. 27. 58. 93 94 95 96 97 Yield 98 Corn 111.99 99 Grain Sorghum 81.01 100 Soybeans 29.63 102 Wheat 26.09 103 Other Crops 104 Alfalfa Hay 2.77 105 Other Hay & Forage Avg Livestock Inventories and Sales 120 Total Expense Ratio 0.8928 Adjusted Total Expense Ratio 1.0327 Economic Total Expense Ratio 1.1993 Operating Profit Margin Ratio 0.0015 Asset Turnover Ratio 0.2543 % Return on Assets 0.0004 % Return on Equity -0.0108 Average Current Ratio 2.4341 Current Assets 452,775 430,850 Non-Current Accts Receivable 35,825 41,249 Breeding Livestock 60,369 63,861 Machinery and Equipment 472,260 487,662 Buildings 37,834 40,919 Owned Land 930,955 968,817 Total Assets 1,990,019 2,033,357 Current Liabilities 170,116 192,896 Non-Current Liabilities 274,317 292,469 Net Worth 1,545,586 1,547,991 Number of Operators 0.97 Number of Workers 1.46 Total Work Days 377 Value Farm Production/Worker 350,157 Total Assets 2,066,835 Value of Farm Production/Operator 525,506 % Crop Acres Irrigated 14.07 % % Tillable Land 84.19 % Crop Machine Cost/Total Expense (%) 37.14 % Crop Value, Costs, Acres Total Total Owned Acres Per Crop Acre Acres 1634.46 Crop Mach Invest 453,991 277.76 Crop Mach Cost 169,617 103.78 Gross Crop Value 515,449 315.36 Crop Prod Costs 415,303 254.09 Non-Irrigated Acres Beef Cows 38 124 Beef Feeders 105