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ONLINE COURSE - 5 Sessions

Managing Investment Costs of Machinery


In recent years, machinery costs creeped up and now rank among the biggest cost items on farms. They often fluctuate significantly even between farms in the same region because farmers have a wide range of options in managing their machinery portfolios. In past years with high commodity prices and good margins, it was relatively easy to finance machinery, wants sometimes surpassed needs, and detailed financial analysis was only sparsely performed.

As the outlook for commodity markets is currently less optimistic, many farmers are rethinking their equipment strategy to reduce cost and debt service commitments as well as to preserve working capital, so they can take advantage of the opportunities ahead.

It is with this goal in mind that we have developed a course to assist farmers in making decisions about machinery investment.


Objective of the Course


The major objective is to give farmers the tools needed to construct and implement the optimum machinery management strategy for their farms, based on sound management decisions. A machinery management strategy includes how much equipment to have, how to choose the most favorable equipment option, whether it is owned and financed or leased, rented, and for how long it is held.

This program is planned as an interactive online workshop. Participants will receive an investment spreadsheet to document informed investment decisions.


Course Outline:


Defining Equipment Strategy: What Does it Entail?

  • Replacements
  • Additions
  • New technology
  • What is the optimal machinery strategy
  • Some guidelines


Financial Principles, Concepts and Tools

  • Equipment cost: buy vs. finance vs. lease vs. rent vs. custom
  • Financing Principles


The Time Value of Money Concept

  • Explanation of the concept
  • Choosing the discount rate
  • The Excel model


Explanation of Spreadsheet

  • Presentation of machinery spreadsheet: Case studies and individual "cases"
  • Group exercise: Case studies
  • Group exercise: Addressing participants' living cases


Program Instructors


AME instructors are internationally renowned experts in agricultural management, and are drawn from both industry and academia. This approach ensures a sound theoretical basis for the program, combined with “hands on” practical experience in the application of ideas.


Larry Martin

Principal & Lead Instructor
Agri-Food Management Excellence

Bio


Travis Jansen

Bio

REGISTRATION INFO

REGISTRATION IS NOW CLOSED

Online Courses Begin:

Week of January 23, 2023


TUITION:

$475 (+ applicable taxes)


REQUEST AN ONLINE BROCHURe

 


funding opportunities



Program development supported by:


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AME OFFICE

RR1 Donalda, AB

T0B 1H0


Alberta: 1-780-608-7374

Ontario: 1-519-841-1698

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Student Area

CTEAM 22-24
Managing Investment Costs of Machinery
Introduction to Risk Management

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