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Preparation
| Preparation
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Measuring and
Analyzing Farm Financial Performance: pages
33-36
and 37-41.
(pdf)
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Read "Measuring and Analyzing Farm Financial Performance"
(EC-712.)
Read "Key
Financial Performance Measures for Farm General Managers"
(ID-243).
Review Assessing Performance
material.
Review MBC Farms case study.
Purpose of Lecture
Almost any decision that affects a farm’s prices, costs or
productivity will affect the bottom line. How a manager
will know what the benefit (or cost) of a change in any
of these things can be the result of a few simple calculations.
This lecture presents a method for assessing changes in
an operation to the ultimate effect on return on assets
and return on equity.
Structure of Presentation
The method, the Dupont model, is presented and then calculations
based on MBC Farms are used to illustrate the effectiveness
of the tool.
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