Rural and Agricultural Financing Inclusion: Effective tool for sustainable Development
Agricultural Microeconomics Lesson 5: Financing Options
9
Presentation Title This course developed by The Environmental Finance Center at UNC Chapel Hill for The North Carolina School of Science and Math and NCDPI is licensed under a Creative Commons Attribution- NonCommercial - ShareAlike 3.0 Unported License “Cattle at Sunset” by Andrew S. Gray Photography, Creative Commons CC BY-NC-SA http://www.andrewsgray.com/2012/07/cattle-at-sunset/ Agricultural Microeconomics Lesson 5: Financing Options This course developed by The Environmental Finance Center at UNC Chapel Hill for The North Carolina School of Science and Math and NCDPI is licensed under a Creative Commons Attribution- NonCommercial - ShareAlike 3.0 Unported License
description
Agricultural Microeconomics Lesson 5: Financing Options. - PowerPoint PPT Presentation
Transcript of Agricultural Microeconomics Lesson 5: Financing Options
Presentation Title
This course developed by The Environmental Finance Center at UNC Chapel Hill for The North Carolina School of Science and Math and NCDPI is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License
“Cattle at Sunset” by Andrew S. Gray Photography, Creative Commons CC BY-NC-SAhttp://www.andrewsgray.com/2012/07/cattle-at-sunset/
Agricultural MicroeconomicsLesson 5: Financing Options
This course developed by The Environmental Finance Center at UNC Chapel Hill for The North Carolina School of Science and Math and NCDPI is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Reoccurring vs. Capital Cost
• Reoccurring – An expense (fixed or variable) incurred in running a business.
• Capital – An expenditure for the purchase of a piece of equipment or property that has a useful life of more than one year.
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Examples of Capital Costs
• Fixed Assets– Machinery– Equipment– Land– Buildings
• Business Expansion– Additional livestock– Renovation of an existing building– Purchase of an existing business
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Financing Options
• Cash on hand (Checking)• Savings / Investments• Grant or Incentive• Credit Cards• Mortgage (Buildings and Land)• Lease (Equipment and Machinery)• Loan
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Types of Lenders
• Friends or Relatives• Traditional Lending Institutions: Banks
and Credit Unions• Community Development Financial
Institutions (CDFIs)• Government Loan Programs– Small Business Administration– USDA Farm Service Agency’s Farm Loan
Programs
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Tips for Young Farmers
• Sweat the small stuff (keep detailed records)
• Know your costs• Evaluate your purchase (do a
cost/benefit analysis)• Develop a business plan
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Types of Questions
• Name, Address, Social Security Number, Birthdate
• Amount of Loan Request• Brief Description of Project• Income and Expenses (Actual and
Predicted)• Assets and Debts• Business Plan
Photos by: Nancy Ranney, Ranney Ranch. Used with permission
Applying For a Loan
Presentation Title
This course developed by The Environmental Finance Center at UNC Chapel Hill for The North Carolina School of Science and Math and NCDPI is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License
“Cattle at Sunset” by Andrew S. Gray Photography, Creative Commons CC BY-NC-SAhttp://www.andrewsgray.com/2012/07/cattle-at-sunset/
Next Class: Cost / Benefit Analysis
This course developed by The Environmental Finance Center at UNC Chapel Hill for The North Carolina School of Science and Math and NCDPI is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License
