3.6.2.1.2
Long-Term Financial Planning
Purpose: Long-term financial planning ensures that the farm is prepared for future investments, risks, and growth opportunities. By projecting income and expenses over multiple years, the farm can make informed decisions that support its long-term sustainability and growth.
Poor Outcome:
The farm does not engage in long-term financial planning, leading to short-term thinking, missed opportunities, and an inability to manage financial risks. Growth is stunted, and the farm may face financial instability.
Expected Outcome:
The farm creates long-term financial plans, projecting income, expenses, and investment needs over several years. This helps in making strategic decisions that support steady growth and financial sustainability.
Excellent Outcome:
The farm uses detailed long-term financial models, incorporating data on market trends, risks, and opportunities. This allows for proactive investment, risk management, and growth, ensuring long-term profitability and stability.