Determining Your Family Living Needs
Calculating family living needs is an important part of a financial checkup. Putting pen to paper regarding your actual expenses over the past couple of months, can be eye opening for anyone.
Financial
The University of Wisconsin-Madison Division of Extension Financial Management & Strategic Planning programs, information and resources intend to improve the farm financial and decision-making skills of Wisconsin agribusiness, farmers and farm managers, agricultural lenders and educators.
For help with financial and/or production records, you can contact your local Extension office or work with your lender.
Latest Financial News
Additional financial resources
Interpreting Financial Statements and Measures (IFSaM)
Interpretation of common financial statements. Learn how to use your financial statements in day-to-day management of your farm management.
Farm Financial Score Card
A guide to farm financial ratios from business financial statements including Balance Sheet, Income Statement and Cash-flow Statement
Articles
Working with Your Lender – video
This video discusses how you can work with your lender, starting with learning about the 6 C’s of credit that a lender may consider during your loan application – Character, Credit, Capacity, Capital, Conditions, Collateral.
Working With Your Lender
A lender’s primary interest is in whether you’re likely to fulfill the requirements of a credit agreement. When a creditor lends you money, he or she does it with the expectation of earning a profit, which is unlikely to happen if there’s a good possibility that you’ll default on the loan. The lender will be […]
Uncertain Farm Financial Future: On the Fence
I am on the fence, it is a barbed-wire fence, and I want to get off! As I write this article, there is a breath of optimism in the dairy industry. Markets have improved, government program payments are getting to mailboxes and the economy is slowly opening back up. That is good news that I […]
How to prioritize debt repayments
Debt can feel overwhelming. It can be difficult to think clearly when the bills pile up, late fees accrue and interest adds up. Taking a moment to organize your obligations is important to maintain your assets, avoid paying more in fees and interest, and protect your credit. Use the provided tool to develop a comprehensive list of all outstanding creditors so you are able to differentiate and organize secured and unsecured debt.
Cash flow budgeting
The cash flow budget is a valuable planning tool for the farm manager. It enables the manager to know and plan borrowing needs and investment opportunities throughout the year. With a cash flow budget, the manager has an initial cash position for each time period. It can also serve as a communication tool to share with a lender to set up a line of credit, make capital investments, or perhaps discuss the reduction of debt.
Financial Troubleshooting
Knowing where to start with financial analysis can be overwhelming. It may be helpful to remember this just one step in the Farm Financial Model: Records → Management Reports → Decision Making Cash vs. Accrual Accounting Records It’s important to know if your records are on a cash or accrual basis. Most farm records are […]
Don’t keep feeding dead-weight debt
Investing in capital replacement or new investments is appealing, but building working capital and paying off dead-weight debt may be the more prudent financial decision.
Creating a farm’s operating agreement: time well spent
Farmers are notorious for preferring to farm while leaving business dealings to trust, fate or chance. Afterall, there are only so many hours in a day, and when farm families work near each other all day, it is tempting to believe that assumptions or verbal communication may replace written text. Farmers must remember, however, that every business entity carries legal and tax implications, and the written operating agreement may save a lot of headaches and heartaches when legal and tax issues arise.
Identifying strategies to maximize potential and minimize risk
Business strategies are practical actions that communicate how a business plans to reach its goals. Thinking strategically about the farm business as a whole helps determine emerging themes, issues, patterns, and opportunities. This allows for proactive management and helps maintain more control over what happens to the farm. Goals are of little value if there […]
Family Financing: The Importance of Communicating During Financial Hardship
Regular family money meetings can help divide the stress of the financial burden into more manageable challenges.
The Importance of a Good Set of Financial Records
Regardless of the time of year, it is important for farm operators to spend some time in their office completing their least favorite activity – paperwork. Most farmers enjoy getting their hands dirty, from digging in the soil, repairing machinery, or working with livestock. They will reluctantly compile the necessary information for income tax preparation, credit borrowing, and crop reporting.
