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Farm Management Articles

Research-based information and tools to help with your farm business management decisions

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Repairs and Improvements on a Rented Farm or Land

The landlord and tenant need to discuss improvements and repairs of the property before the lease begins. There is no right answer as to who should pay for what. A written lease detailing the responsibility of each party and agreeing to these items ahead of time will make the landlord-tenant relationship less troublesome. 

What you should know about farm leases

Leases play an important role for over 22,600 farms in the state. Yet many farm landlords and tenants are unfamiliar with the components of a lease and the landlord/tenant relationship.

Wisconsin Agricultural Land Prices 2020

This report provides a statewide overview of agricultural land values across Wisconsin based on a statistical analysis of actual sales and now includes the weighted average price of agricultural land sold in Wisconsin.

What’s the value of being a good boss?

The reduction in stress is a significant benefit of being a “good boss.” Then there’s the fact that well-trained employees take better care of cows and equipment.

Common strategies to consider for Fair vs Equal

Research shows that the division of assets for inheritance is a common tension around farm succession planning. In some cases, the tension can be so great that the owner generation avoids making a decision until it’s too late. Take time to learn the contrast between fair vs. equal distribution of farm assets.

Farm asset division a 21st-century conundrum

The best way to divide farm assets is a challenge that farm families face with each generation of owners. The fear of upsetting one’s children often causes parents to divide farm and family assets equally among all heirs. This is the second of a 3-part series about fair vs equal distribution of farm assets.

Long-Term Farm Viability

Long-term farm economic viability is the product of three parts – performance, capacity, and resilience. Performance is an efficiency measure, the ability of the farm business to create profit margins per unit of production. Capacity is whether there are enough production units (acres, cows, etc.) that when multiplied over the profit margin will cover debt service, asset maintenance and replacement, retained earnings and family living. Resilience is the ability of the business to take a punch and bounce back to normal operations.

Developing a Farm Financial Model

The farm financial model offers a linear and circular process for informed decision-making. Records feed into reports, and reports help farmers integrate financial sense into farm production decisions.

Selecting your Farm Accounting System

An accounting system is a set of actions and methods designed to collect, store, and process financial transactions into management reports for decision-making.

Preparing a Balance Sheet

The balance sheet is a report of the farm business’ financial position at a moment in time. It lists assets, liabilities, and net worth (owner’s equity), and represents a snapshot of the farm business as of a certain date.

Preparing an Income Statement

The income statement is a report of the farm business’ financial performance during a given time frame. It measures profit or loss in a given time period.

Understanding the Statement of Cash Flows

The statement of cash flows tracks the sources and uses of cash in the farm business in the past year. It also adds insight to the understanding of financial position and performance of the farm business.

Understanding the Statement of Owner Equity

The statement of owner equity reconciles the change in equity from the beginning balance sheet to the ending balance sheet for the farm business. Also known as the statement of net worth, shows the source of change.