Flagship Programs

BUSINESS SUCCESSION PLANNING – The long-term future of Michigan farms and agribusinesses is dependent upon successful business transitions to the next generations. The goal is to keep the assets and resources of the business in agricultural on a sustainable basis. The FIRM team conducts programs that help families of these businesses utilize various tools to address intergenerational business transfers and avoid potential pitfalls including excessive estate taxes and inadequate funds for purchasing sibling shares of the estate. It has been proven that families who have a plan which utilized these tools have a higher success rate and better family harmony when transferring the business to the next generation.

PROVIDING ECONOMIC INTELLIGENCE ON MICHIGAN AGRICULTURE – Knowing how an industry is performing is keen to understanding how one's own business is performing. To make these comparisons, the FIRM team plays a major role in collecting and analyzing economic data from agricultural businesses. This data is summarized and published in reports, many on annual basis. Examples of Extension/research reports include the economic summaries of the major farming types in Michigan (e.g., dairy, cash crops, fruit, swine, and cattle feeding), trends in farmland values and leasing rates, current custom-hire rates, enterprise budgets, and other timely economic reports.

SUPPLYING BUSINESS MANAGEMENT INFORMATION – The FIRM team conducts several educational programs related to business management. One such program is the TelFarm project. This computer-based accounting system is specifically designed for farming operations, making it possible for farm managers to closely monitor the financial progress of their business. The FIRM team uses this system to teach producers and others good financial management concepts. Data from this system becomes a major component used in preparing the Michigan type of farming economic summaries. Other business management educational programs are conducted in the area of marketing, risk management, human resource management, investment analysis, energy, tax planning, and business structure.

Management Tip

As we approach the end of the year, it is a good time to do tax planning. Good tax planning can have a major impact on the economic performance of the business. When doing tax planning, it is important to know your profit situation for the year. If the current year has been one with above normal profit, then it might be time to consider making additional purchases such as buying next year's fertilizer and/or delaying income until next year. If the current year has been below normal, then consider delaying purchases until the coming year and/or taking income earlier. Your FIRM team educator, can provide advice on this issue.

Planned Educational Programs

This winter the FIRM team will be conducting several workshops on business' succession planning. These are being held in with the support of Michigan Milk Producers Association. The focus will be on dairy operations but those representing other types of farming operation are welcome to attend.

A new educational thrust is planned for small-wind systems as a means to address the raising cost of energy. With the new net-metering regulation, this program will explore ways that farms and agribusinesses can use wind turbines to offset energy costs.