...CASE STUDY: Grennell Farm (President and Fellows of Harvard College) BACKGROUND | Grennell Farm is a corporation that is engaged in the production of wheat. Located in Iowa, the 2,000-acre farm was established by Jeremiah Grennell more than 20 years ago. The sudden demise of its founder has led the farm to be transferred to the leadership of, Mr. Grennell’s niece and chosen heir, Denise Grey. She was informed of her inheritance early in 2010. Ms. Grey works as an AVP in the consumer credit of a large New York bank. With the huge distance between Iowa and New York, she is carefully studying the advantages and disadvantages of retaining the farm’s ownership. | POINT OF VIEW | Third Person (Consultancy) | STATEMENT OF THE PROBLEM | Should Denise Grey sell the farmland at its current valuation or retain the farm as its investment? | AREAS OF CONSIDERATION | 1. Favourable increase in present Farm Commodity Prices 2. Profitability of the Farm 3. Appreciation of Farmland 4. Distance 5. High Liquidity that is available for credit | ALTERNATIVE COURSES OF ACTION | 1. Retain the farm land as investment | | ADVANTAGES | DISADVANTAGES | | 1. Favorable Price Fluctuation 2. Profitable farm 3. High Appreciation of Farmland | 1. Huge Distance from farmland to workplace2. Low extra liquid be available for credit | | 2. Sell the Farmland | | ADVANTAGES | DISADVATAGES | | 1. Eradication of problem with distance 2. High...
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...GRENNELL FARM Income Statements For the Year Ended December 31, 2009 Method: Sales Collection Production Sales $ 522,000 $ 462,400 $ 614,100 Less: Cost of goods sold Beginning inventory $ - $ - $ - Production $ 107,730 $ 107,730 $ 107,730 Less: Ending inventory $ 15,390 $ 25,650 $ - Cost of goods sold $ 92,340 $ 82,080 $ 107,730 Gross margin $ 429,660 $ 380,320 $ 506,370 Less: Other expenses $ 183,000 $ 183,000 $ 183,000 Net Income $ 246,660 $ 197,320 $ 323,370 GRENNELL FARM Balance Sheets As of December 31, 2009 Current Assets Cash $ 30,900 $ 30,900 $ 30,900 Accounts receivable $ 59,600 $ - $ 151,700 Inventory $ 15,390 $ 25,650 $ - Noncurrent Assets Land $ 375,000 $ 375,000 $ 375,000 Buildings and machinery (net) $ 112,500 $ 112,500 $ 112,500 Total assets $ 593,390 $ 544,050 $ 670,100 Liabilities (current) $ 33,000 $ 33,000 $ 33,000 Owners’ equity8 Common stock and APIC $ 457,500 $ 457,500 $ 457,500 Retained earnings(Balancing Figure) $ 102,890 $ 53,550 $ 179,600 Total owners’ equity $ 560,390 $ 511,050 $ 637,100 Total liabilities and owners’ equity $ 593,390 $ 544,050 $ 670,100 Sales(Delivery) Method GRENNELL FARM Income Statement For the Year Ended December 31, 2009 Sales(180,000*2.90) $ 522,000 Less: Cost of goods sold Beginning inventory $ - Production(210000*.513) $ 107,730 Less: Ending inventory(30000*.513) $ 15,390 Cost of goods sold $ 92,340 Gross margin $ 429,660 ...
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...Grennell Farm (Case from Accounting Text and Cases twelfth edition) Early in 2006, Denise Grey was notified by a lawyer that her recently deceased uncle had willed her the ownership of a 2,000-acre wheat farm in Iowa. The lawyer asked whether Grey wanted to keep the farm or sell it. Grey was an assistant vice president in the consumer credit department of a large New York bank. Despite the distance between New York and Iowa, grey was interested in retaining ownership of the farm if she could determine its profitability. During the last 10 years of his life, Jeremiah Grennell had hired professional managers to run his farm while he remained in semiretirement in Florida. Keeping the farm as an investment was particularly interesting to Grey for the following reasons. 1) Recent Grain deals with foreign countries had begun to increase present farm commodity prices, and many experts believed these prices would remain high for the next several years. 2) Although the number of small farms had decreased markedly in the last 20 years, Grennell’s use of mechanization and new hybrid seed varieties could be very profitable. 3) After some downward movement in the 1990’s the value of good farmland in Iowa was beginning to appreciate at about 10 percent a year. Included in the lawyer’s letter were data on revenues and expenses for 2005 and certain information on balance sheet items, which are summarized below Beginning Inventory 2005 Wheat production Shipped to grain elevator ...
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...LAYOUT OF A TYPICAL 18YH CENTURY PLANTATION According to Claypole plantation lands were divided into several sections: cane fields, pastures lands, woodlands, provision grounds, work yards and living quarters for managers and labourers. Most plantations had from three to five cane fields, each surrounded by closely trimmed trees and walls made of lumber or stone wall to protect the crop from cattle. Each field was divided by narrow roads into smaller square plots of 6-9 hectares. This made it easier to manage the gangs that were cutting the cane and the movement to the work yard. According to Hamilton Wille the pastures lands were areas that was reserved for animals, mainly cattle, horses and mules ,and were extremely important. They provided manure for the cane fields and vegetable plots, and some could be even slaughtered to provide meat for supplement the diet of the estate population. The woodland provided lumber for the estate. Lumber was used for a various purposes such as the construction of buildings as well as fuel for the boilers and for cooking. Provisions grounds were unused lands and were generally cultivated on marginal lands, and were extremely important to both the planters and to the slaves. Caribbean history for cxc, Provisions grounds were poor lands on the plantation given to the slaves so that they may grow their own food, working the ground in whatever free time they were given and on Sundays. This was meant to decrease the cost...
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...Deforestation. 1. Is the expansion of farm land, the need for agriculture and the global demand for food has increased? The need for global commodities has driven large farmers to clear the Forrest at a massive rate. One of the largest commodities the demand has increased for is Palm Oil. This need for Palm oil is so great that it not only has destroyed acres of rain forest but this need is starting to such a strong effect that people families are becoming displaced. 2. Cattle ranchers are becoming a large driving factor of deforestation. The growth in human society is booming. Because of the population of the world there is less and less land for cattle to graze from. The ranchers in Brazil are responsible for” 75% of deforestation in Brazil is linked to the cattle industry, with the cattle herd in the Amazon growing by 140% from 1990 to 2003” http://knowledge.allianz.com/environment/climate_change/?665/The-top-10-drivers-of-deforestation 3. Logging and Timber is becoming as affluent as the drug trade and other black market activities. 80% of the logging in the worlds Rain Forrest is illegal. Due to the large demand for logging many of the countries authorities are taking bribes and letting greed over rule the law. 4. Mining is becoming a major factor in deforestation particularly in developing countries and contents. All though mining isn’t as big of a factor as three logging, cattle ranching and increase in farm land it does still have some harmful effects...
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...2014 Mahoning County Mahoning County is located in the northeast corner of Ohio on the Pennsylvania-Ohio border. Ohio is a diverse and thriving agricultural presence in the world today and is poised to stay that way for years to come. Mahoning County specifically is an urban agricultural zone encompassing the city of Youngstown, OH as well as other robust urban communities. In Mahoning County there are 578 farms, averaging 130 acres per farm. This is slightly lower than the state average of 185 acres per farm, but has increased from the 2007 census average of 111 acres per farm. The average age of the principle operator of a farm in Mahoning County is 58 years old of which 279 of the 578 of these operators listed farming as their primary occupation. This leaves 299 listing farming as their secondary occupation. (USDA, 2014). Most farmers are not “specialized” and produce more than one agriculture product. The total market value of all agricultural products sold is approximately $65 million which is up 45% from 2007. Average product sold per farm is $113,234, also up 45% from 2007. The leading agricultural products of Mahoning County listed by commodity group value of sales are grains, oilseeds, dry beans, and dry peas at approximately $23 million and milk from cows at $22.7 million. The top crop items of the county are: soybeans for beans at 15,556 acres, corn for grain at 14,422 acres, forage-land used for all hay and haylage, grass silage, and green chop...
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...THE SLAVE DRIVING FATHER It is true that being raised on a farm constitutes more responsibilities for children. They are expected to do different chores than city kids. There is a story that a boy from Iowa tells that makes a person ask if a line should be drawn where the work is concerned. How should a parent handle their expectations? This boy had a lot of resentment, and rightfully so. His dad woke him up every morning chanting the spelling of the word work. Starting at age six he was expected to jump up out of bed, find something to eat, put dirty stinking clothes on, and get to work in the pig barn. This little boy from Iowa wished that cleaning his room was all he had to complain about. That was not the case. He was expected to go into a filthy pig barn, and scoop up the feces of the animals. He had to wear unwashed clothing from the days before that hung outside in the cold. All he ever ate for breakfast was cold cereal that he had to fix himself. When he finished cleaning the barn he would take long showers to get the smell off of his skin, but it did not work. Not even industrial strength soap would remove the odor left on the skin from being in the pig barn. The father of this little boy never showed any compassion before, during, or after he worked so hard. A parent ought to be kind and loving toward their children, even while teaching them about the importance of responsibility. This little farm boy often felt sad, and even thought about hiding sometimes, because...
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...Not my Grandfather’s Farm Background Farming has forever been a part of the Schisler family. The farm was created by and has stayed alive to this day, through hard work, blood, sweat, and tears. Just outside of Astoria Illinois there is an old gravel road named Shaw/Schisler road. At the end of this road you will not find big fancy machinery, or state of the art buildings, you will not even find cable television. What you will find though is one of the last farms in the area that is still family owned and operated and one that has survived by using old-school farming techniques that have been passed down from one generation to the next. By no means is my family farm a big business or multi-million dollar agricultural enterprise, it is exactly what my great-great grandfather intended for it to be when he started it way back when, a family farm. Sadly I do not know how much longer I will be able to say that. The advancements in information systems and technology have made old school farming a thing of the past. No longer are farmers using almanacs or the fact that old Joe’s knees are hurting this year so it is going to be a harsh winter followed by a dry summer, which is bad news for the agriculture industry. With computers, phones, tablets, and many other electronic devices a farmer can stay up to date with soil trends, weather analysis, crop growth pattern, all while sitting on the front porch swing drinking cup of coffee. If it were up to me, I prefer the old ways...
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...In “Renewing Husbandry,” Wendell Berry argues against the industrialization of farming. He begins by explaining that it began with the invention of the tractor; when his farm first utilized the tractor he resented the mule plow that his father used. He saw the mule team as slow and ineffective, however, later he recognized their value in their slow caring pace of working the land, which he labels “husbandry.” He then claims that the economic growth of society has devalued farming and forced small farms to diminish while large farms flourish. He views that this shift of economic power creates a harmful blow to the quality of farming, he blames mechanization for the destruction of small farms. This ridicule of industrialized farming fails to understand that the renewal of husbandry begins with the individual. Berry believes that the mechanization of farming creates separation between the farmer and the land. Berry states, “Once one’s farm and one’s thoughts have been sufficiently mechanized, industrial agriculture’s focus on production, as opposed to...
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...It can be green by running on solar power and recycled rain water. It will reduce food waste because it is designed to grow enough for 1 person all year long. It can reduce waste from large scale farmers and grocery stores who feel they should throw out produce with an unappealing appearance. It will reduce the use of harmful pesticides and fertilizers. It will improve health by making fresh food more available to those who want it. On the flip side, using a robot to farm will take away jobs from farmers and can cause a lower work ethic by those who use robotics to do everything for...
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...CASE STUDY- JULIAN BEEVER BIO/ARTIST Julian Beever was born in Cheltenham in 1959. He grew up in Melton Mowbray and began pavement art as a form of busking. Beever’s current lifestyle is using his commission payment to fund his travels around the world and showcase his art. He has worked in places such as Belgium, France, Germany, Austria, Denmark, (etc.) BODY OF WORK Julian Beever is a commercial chalk artist that specialises in abstract techniques. His style of drawing is a form of illusion created with chalk, water and certain camera lenses to help make the illusion more prominent. Beever encourages interaction with his audience by asking them to help him draw or stand in the photo he takes of the art. INFLUENCES AND INTENTIONS The inspiration for Julian Beever’s chalk art originated from the “Punch and Judy Show” where he used to watch other chalk artists in the streets showcase their work. Beever has been travelling the world for over 20 years, presenting his own art to the local communities. He draws simply for the general public’s enjoyment and to earn money from his commission payment. Beever continues to amaze the art world with his anamorphosis technique and his ability to express his artistic talent freely on the pavement. He is not only an artist but also a writer and released a biography containing photographs of his work. TECHNIQUES Beever uses a projection technique that creates a 3D illusion on the concrete base he draws on. This technique is called anamorphosis...
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...With the changes that Masumoto has noted to happen within the agricultural industry, he has also listed adverse effects on small family farmers as a result of corporate farming. The most critical effect that he points out is a result of a belief that he has developed through farming. Masumoto values the belief of taking the time to relish in the little things of life, and is afraid of letting small things pass him by without him noticing them. This belief carries over into how he raises his crops, which is slowly to nurture the best taste. In regards to taste, Masumoto states, “If we’ve done our work correctly, it’s no longer about our fruits but rather the creation of a personalized story of flavor, a spirit of perfection that goes beyond our farm’s boundaries” (Wisdom Of The Last Farmer 210). With the development of corporate farming, however, this belief of savoring food has disappeared only to be replaced by fast-food detachment. Fast-food growing practices results in a generic line of produce, where aesthetics are pleasing, but taste could do with much work. Masumoto notes that “the loss of a diversity of fruit robs us of our sensory language, our elemental heritage and connection to the good earth” (Wisdom Of The Last Farmer 211). Yet, many of today’s generation grows without knowing the experience of the old variety of produce, leading Masumoto to state, “But without the memory of an experience, you have no sense of what you have lost - no sense experience at all, not...
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...Visual Analysis “Farm Journal” normally targets farmers because farmers are the ones that generally receive and read the magazine. This causes the ads in “Farm Journal” to be heavily agriculturally based. The company Ag Leader Technology that deals with the development of new technology that helps farmer’s jobs easier and more efficient created the ad that I choose to analysis. The name of the product that Ag Leader’s ad is for is called SeedCommand. The ad also explains what the SeedCommand does in text right below the tractor. The SeedCommand helps farmers manage the planting operations. SeedCommand helps to prevent overlapping seed, increase accuracy in seed spacing, automatic row shutoff, and advance seed monitoring. This ad from “Farm Journal” for SeedCommand forces the audience, mostly farmers, to view planting in whole new different light. With prices for high yielding seed not getting any cheaper, farmers cannot afford overlapping, inaccurate spacing, and misses when planting the expensive seed. The ad suggests that the SeedCommand could become the sidekick that helps the farmers saves the crop season and become the hero. It suggest this because the tractor and planter sit in what appears to be a dead and dried up field however with the sun setting in the background it seems to portray it as the thing that could come in and save the crop at the last minute. The tractor resembles a hot rod or high performance vehicle. This suggests that with SeedCommand the tractor...
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...Sarah Talley Farm Produce Submitted by Sudeshna Pande FT14273 Character profile of Sarah * CEO of Frey Farms (family owned business) * Began selling pumpkins at the age of 8 * Negotiated deals with retailers like Wal Mart who were entering the produce business * Has good business acumen to identify the trend in retail. Able to maintain amicable relationships with Wal Mart * Able to manage distributed produce operations * Passionate about the farm business * Go getter – Was able to secure the initial deal with Wal Mart extempore * Ambitious and ready to go after the big-fish * Recognized her company’s shortcoming in operations (to competitors) and her inexperience in business * Needed the Wal Mart contract for her business * She is on the weaker side of the negotiation table According to the case : * The business of watermelon * Seasonality – peak prices in May , June, early July (10-15 cents/pound) and off-season in July & August (4-5 cents/pound) * Adverse weather conditions and diseases seriously affect the produce of melons. * Watermelon prices are going up, but Wal Mart needed the prices to go down Recommendations (strategies ): * Fey Farm as a single entity has less power . But so do all the other competitors. Hence Sarah can building a coalition with all the melon producers in the region. * Emphasize on the fact that if Wal Mart wanted to satisfy its...
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...Typical Sugar Plantation LAYOUT OF A TYPICAL 18YH CENTURY PLANTATION According to Claypole plantation lands were divided into several sections: cane fields, pastures lands, woodlands, provision grounds, work yards and living quarters for managers and labourers. Most plantations had from three to five cane fields, each surrounded by closely trimmed trees and walls made of lumber or stone wall to protect the crop from cattle. Each field was divided by narrow roads into smaller square plots of 6-9 hectares. This made it easier to manage the gangs that were cutting the cane and the movement to the work yard. According to Hamilton Wille the pastures lands were areas that was reserved for animals, mainly cattle, horses and mules ,and were extremely important. They provided manure for the cane fields and vegetable plots, and some could be even slaughtered to provide meat for supplement the diet of the estate population. The woodland provided lumber for the estate. Lumber was used for a various purposes such as the construction of buildings as well as fuel for the boilers and for cooking. Provisions grounds were unused lands and were generally cultivated on marginal lands, and were extremely important to both the planters and to the slaves. Caribbean history for cxc, Provisions grounds were poor lands on the plantation given to the slaves so that they may grow their own food, working the ground in whatever free time they were given and on Sundays. This was...
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