1. Ecxel is the data of the first three years made by other students. You can refer to it.
2. You need to replace those two crops with other crops, so as not to repeat them with other students
3. Use only within the selected crops: https://grdc.com.au/__data/
4. You need to delete the data and fill in two other crops
If you have any questions, please look at the PPT and send it to you.The table USES the number of hectares on the farm and then assigns the number of hectares needed for each plant.
Loan calculation is the loan amount needed to buy this farm, and the loan amount and repayment year need to be filled in. It is mainly required to use the data in the form to make the form. The form needs a total of seven years, but as long as the form of the first year is written, only a small amount of data will be needed for the data of the next six years.
I have sent you my friend’s examples from the previous three years. If you don’t understand them, you can refer to them.
Land Purchase Case Study
Select a property currently available for sale, that you would be interested in purchasing
(each member of the class must have a different property).
You will be in a situation where you already have some capital/equity to assist with the
purchase. The capital base you are working with will be determined by submitting the
details of the property to the course coordinator for approval. Once the capital base has
been determined you can start work on the assignment which should consist of an
application for finance supported by a detailed business plan of how you intend to
manage the property. As your bank manager, be aware that I have no knowledge of the
property, and accordingly you must provide me with as much detail as possible.
Part A – Finance application
The application for finance will consist of a letter to the manager of the lending
institution requesting financial assistance for the proposed business venture. The letter
MUST include the terms and conditions of the loan, ie the funds required, the time
period the loan will be taken over, the planned repayment schedule, and your present
The letter should also make reference to the business plan attached, which will outline
your plans for the property, and be supported by your financial analysis for the first
seven years after purchase.
Part B – Business plan
Depending on the property selected the background information available may be quite
limited. As a minimum you will need to know the location of the property, annual
average rainfall (or growing season rainfall), soil types/ fertiliser history, carrying
capacity. Any information on the infrastructure available and its condition will also be
useful. The more information you can obtain the easier the report will be to write.
This will include the outline of what you plan to do with the property, including your
long, medium and short term goals. The proposal should explain your plans for the
property for the initial seven years after the purchase. The proposal should be supported
by the following detail:
This should include numbers, sales, purchases, natural increase, the type of stock, when
they are sold and the feed required. This information can be shown with a stock trading
statement and a cash flow budget.
Crop rotation and pasture plans
This should include areas and the type of crops or pastures to be planted, seed, fertiliser,
chemical requirements and expected yields.
This section will show the plans of any development work, eg new fencing, buildings,
new machinery or equipment required for the proposal to work. The most important
aspect of this is the timing to ensure the machinery is available when required. This
should be recorded in the capital payments section of the cash flow budget. You must
spend a minimum of $250,000 on capital investment, at some point during the first
seven years of your proposal, in addition to the initial purchase and property set up. (The
investment in capital can be included as several smaller amounts)
The following budgets should be presented for each of the seven years (livestock trading
statement, gross margin budgets for each enterprise, balance sheet, cashflow budget, and
profit/loss statement). Base information on current prices with allowance for variation
expected. The budgets will demonstrate your ability to meet loan repayments, and the
ability to cope with unexpected seasonal conditions.
Year 3 and year 4 of your proposal experience a drought, which means your
projected income levels will be reduced by 50%. Costs will remain at normal
You will be required to present your proposal to the bank manager as a written report.
The report submitted for assessment should take the form of an application to a bank for
financial assistance, supported by a detailed business plan.
The assignment contributes 60% of total course marks.
The draft of your first year financial figures must be submitted by Wednesday 18
Your final written report must be submitted by 5pm on Friday 1
st November 2019