Summervale Farms: A Financial Analysis, Forecasting, and Valuation Case
27 Pages Posted: 19 Jul 2004
Date Written: June 2005
"It was the fourth report that finally got us seriously thinking about it," Ray Connolly explained to his long-time friend, accountant, and financial advisor, Mike McCarville. "That fish kill was just too much, I started to wonder, what am I doing to myself, my family, my neighbours, and the environment." It was late November 2002 and Ray Connolly and Mike McCarville were discussing the future of Ray's, and his wife Jen's, 1,600 acre potato farm located near Kensington, Prince Edward Island. Over the late summer and fall, the couple had become disenchanted with conventional potato farming practices and were considering making a major life-altering move. Ray and Jen thought they had two options: they would either become organic farmers, and stop using synthetic fertilizers, pesticides, and herbicides to farm, or they would sell their farm. In either case, in order to be ready for planting in the spring, the deadline for a decision was early January 2003.
Keywords: Financial analysis, financial forecasting, valuation, organic farming
JEL Classification: M10, M13, M21, Q12, Q14
Suggested Citation: Suggested Citation