How to develop a capital budget for the dairy farm to analyse the total cost of converting into a complete operational one?
(a) You should first estimate the cost of each item which will be used in the development plan. This can happen by speaking to other farmers who have done similar scale conversions. Also get quotations from builders/suppliers.
(b) Then, you need to develop a budget for the stock based upon the total stock, including replacements to be bought, cost of disease testing, transport, vaccinations and any other cost which is associated with keeping the animals until the farm becomes operational.
(c) You must have a clarity on who is going to manage the conversion of the farm and check if there would be a cost or opportunity which is associated with the project management.