Managerial Accounting

Executive Summary

The following business plan will serve as an operating guide for Tendai Farm. It contains a description of the farm, its operating goals, management and marketing strategies and a risk management assessment. It also contains financial data for the growing year. Tendai Farm is a sole proprietorship owned and operated by Emmanuel that will supply local markets and restaurants with certified organic carrots. The marketing strategy will also incorporate baby carrots and carrot juice as substantial components of the operation in year 2. This farm will be successful because of the demonstrated demand for locally grown carrots, as well as value-added carrot products.

The goals for Tendai Farm’s first year are to:

* Develop a cover crop management and rotation plan beneficial to future crops;

* Establish sustainable growing practices on a 5-acre plot using cover crops to increase soil health and productivity;

* Obtain organic certification;

* Convert a carrot winnowing machine to solar power;

* Develop and market a fresh carrot juice product;

* Sell at least 25,000 pounds of fresh carrots through wholesale channels; and

* Gross over $30,000 with net owner wages of $8,500.

These goals will be implemented over the course of the first operating year, using gained

information and knowledge to work toward long-term goals of increased production and

a sustainable farm both environmentally and financially. The farm manager will consult

with other carrot growers in the intervale, such as Arethusa Collective Farm, and other

growers in the area to develop management strategies that are efficient and sustainable.

Determining which varieties are best adapted to our climate and produce reliably will

take several years of trial and thorough record keeping. Emmanuel is interested in identifying

the best juicing carrot. He feels these are areas in which she excels; varietal mapping,

crop analysis and record keeping...