Page 1 of 4
Title / Develop and monitor financial plans for an agribusiness
Level / 5 / Credits / 15
Purpose / People credited with this unit standard are able to, for an agribusiness: gather and analyse information to develop a financial plan; develop and assess an annual financial forecast budget; develop a cashflow forecast; and monitor and review an annual financial plan.
Classification / Agriculture > Agribusiness Management
Available grade / Achieved
Explanatory notes
1Legislation applicable to this unit standard includes but is not limited to:
Goods and Services Tax Act 1985
Privacy Act 1993
Income Tax Act 2007
Financial Advisers Act 2008.
2Definitions
Budgets are GST exclusive.
Cashflows are GST inclusive.
3References may include but are not limited to – financial statements, industry standards, level of production.
4Evidence for assessment of this unit standard may be presented either with or without the use of computer software, such as Excel spreadsheet or computerised cash book software.
Monitoring may be assessed using case study data.
Outcomes and evidence requirements
Outcome 1
Gather and analyse information to develop a financial plan for an agribusiness.
Evidence requirements
1.1The information gathered includes the preparation of a calendar of operations which identifies timing of events.
Rangeevents may include but are not limited to – sale and purchase of stock, major expenditure, crop harvesting, lambing, calving, dairy season product sales, reproduction and/or production cycles, disease control, animal health, plant health.
1.2The analysis determines expected volume of product(s) for the agribusiness.
Rangeone of – analysis of historical information; benchmarking of key performance indicators and production schedules which may include but are not limited to – stock reconciliation, annual production cycle, crop yields, grades, volume.
1.3The analysis determines the major input costs required for the agribusiness.
Rangeone of – analysis of historical information, benchmarking of similar agribusinesses.
1.4The analysis determines prediction of the sale price for the agribusiness product(s).
Rangeprediction by – market information, economic trends, timing of payment.
Outcome 2
Develop and assess an annual financial forecast budget for an agribusiness.
Evidence requirements
2.1The annual financial forecast budget is developed in accordance with the objectives and values of the agribusiness owners or managers.
2.2The annual gross revenue is estimated for the financial year taking into account all sources of revenue for the agribusiness.
2.3The annual operating expenditure is estimated for the financial year for all inputs to the agribusiness.
2.4The annual cash operating surplus is calculated, and its disposal is estimated for the financial year.
Rangepersonal expenditure or drawings or dividend distribution, taxation, development, net capital expenditure, net debt repayment; expected return on investment, return on equity, profit, cash balance.
2.5The annual financial plan is assessed in terms of viability, and personal and agribusiness objectives.
2.6A sensitivity analysis assesses the effect of a change in the performance, and/or price of a primary product, on the agribusiness.
Outcome 3
Develop a cashflow forecast for an agribusiness.
Rangefor a minimum of 12 months.
Evidence requirements
3.1The annual budget and goods and services tax (GST) is transposed to monthly income and expenditure.
3.2Net cash change and the running bank balance are calculated for each month.
3.3The assessment of cash flow includes an appraisal of the need for, and amount of, the seasonal finance required.
Outcome 4
Monitor and review an annual financial plan for an agribusiness.
Evidence requirements
4.1Actual income and expenditure is recorded on a monthly basis for a minimum of three months, and is reconciled with a bank statement.
4.2Actual income and expenditure over three months is compared with the annual financial plan, and the plan is reforecast to reflect differences from the original plan.
Replacement information / This unit standard replaced unit standard 16654.Planned review date / 31 December 2016
Status information and last date for assessment for superseded versions
Process / Version / Date / Last Date for AssessmentRegistration / 1 / 27 April 2005 / N/A
Review / 2 / 18 March 2011 / N/A
Accreditation and Moderation Action Plan (AMAP) reference / 0052
This AMAP can be accessed at
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA, or an inter-institutional body with delegated authority for quality assurance, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and which are assessing against unit standards must engage with the moderation system that applies to those standards.
Consent requirements and an outline of the moderation system that applies to this standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The AMAP also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.
Comments on this unit standard
Please contact the Primary Industry Training Organisation if you wish to suggest changes to the content of this unit standard.
Primary Industry Training OrganisationSSB Code 101558 / New Zealand Qualifications Authority 2018