A&M Launches New Computer
Model To Aid In Planning

LUBBOCK — Farmers and livestock producers know change is risky. They also know they must embrace a certain amount of necessary change and manage the risk involved if they are going to survive and thrive financially.

Texas producers now have a solid decision-making guide available to help them analyze different production options and the risks that come with them. FARM Assist is a long-term strategic planning computer program for the whole farm offered by the Texas Agricultural Extension Service. It is designed to help producers gauge the likely outcome of strategic management decisions by applying "what-if" scenarios to their current operation.

FARM Assist is just one tool offered to producers by the Texas Risk Management Education Program. The Extension Service created TRMEP after Congress mandated risk management education for producers as part of the 1996 Farm Bill.

The goal of TRMEP is to help producers improve their financial bottom lines and their staying power in agriculture by providing decision-making information on alternative production, marketing and financial management strategies. Kansas State University’s Agricultural Extension Service is helping Texas A&M University develop educational materials for TRMEP.

A $1 million appropriation from the Texas Legislature in 1997 funds many of TRMEP’s initiatives, including FARM Assist.

The pilot program will first be offered to Panhandle, South Plains and Rolling Plains producers. If it succeeds there, FARM Assist may one day be made available statewide, and perhaps nationally, says Joe Outlaw, Extension economist at College Station.

Extension economists will visit with participating producers and help them gather pertinent financial data, such as cash flow statements, financial statements, tax returns and depreciation schedules. Data will then be plugged into the software to generate an overall financial picture of the producer’s current operation.

Producers will then identify at least two "what-if" alternatives that may help improve their profitability. Their consulting economist will perform a financial analysis on these alternatives, compile a report on each one and then discuss the alternatives with the producer.

Producers will pay a $250 fee to participate. The fee covers their baseline financial profile and analysis of two "what-if" scenarios. Producers can add other scenarios for $50 each, and receive a report and consultation on these alternatives.

FARM Assist’s computer software is too complex for today’s home computers, but Extension economists hope producers may one day be able to access the software at a password-secured Internet site.

For more information on the program, farmers and livestock producers can call Texas A&M Extension economists Craig Fincham at (806)746-4056; Jim Sartwelle at (806)359-5401; Rob Borchardt at (940)552-9941; Joe Outlaw at (409)845-3062; or their county Extension office.