How to Find the Next Creative Idea for Your Farm
Part I of this article series introduces “The Memory Jogger” booklet and how brainstorming and nominal group technique can help generate your farm’s next great idea.
Financial
About
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.
Financial resources
Farm Pulse
Information on how to use farm financials to explore farm business decisions. This course will help farmers evaluate their finances, take the pulse of their farm business, and set goals for the future of their operation.
Farm Business Financial Management Model
The farm financial model helps the farmer make the best decisions for the farm business. From record-keeping to financial analysis, this model illustrates how to make sound financial decisions and identifies tools to help in the process. To understand the farm business’ records, one needs to understand the purpose records serve to and for the farm manager. The Farm Business Financial Model offers a process for informed decision-making.
Records
The farmer must collect and organize income and expense receipts in an accounting system before generating financial statements. Receipt accounting is also referred to as record keeping.
Management Reports
Organizing the records provides the farmer with the financial information necessary to complete management reports, which are also known as financial statements. The Farm Financial Standards Council (FFSC) recommends farmers create four financial statements from which the financial position and performance may be analyzed. Financial statements should be prepared on a consistent basis. Statements include balance sheet, income statement, statement of cash flows, and statement of owner equity.
Decision-Making
Understanding the farm business’s history of financial position and financial performance provides a basis for the farmer to make decisions and plan into the future. Pro forma refers to the future view of the farm’s financial position and performance. For example, what would the balance sheet look like after a future expansion? The future financial position can be analyzed for feasibility, profitability, and risk-ability. Pro forma financial statements complement the farm’s budgets. Cash, partial, and enterprise budgets are commonly used to assist the farmer in decision-making.
Latest Financial News
Articles
AgriVision Episode 30 – Pooling forage resources
Host Katie Wantoch and Jerry Clark, Associate Professor and Agriculture Agent with Extension in Chippewa County, discuss the advantages and disadvantages of neighboring farmers buying forage equipment together.
AgriVision Episode 29 – Take one step at a time in farm transition
Host Katie Wantoch and Ben Jenkins, Agriculture Extension educator in Green Lake County, discuss considerations for a farmer to consider with a future land purchase from his uncle.
Risk and Building Better Business Resiliency
Risk and farming are two sides of the same coin. Like many industries, the farm business lives with and deals with risk daily. Further, the number of risks and their costs are increasing. These increases make the management of risk a vital component for successful long-term profitability. Risk is the probability that some event will cause exposure to […]
Partial Budgeting
Whether on the tractor, in the barn, or at the farm office, farm managers are always mulling over some change to their operation that might improve profitability. It might be employing a new technology, launching a new enterprise, buying or leasing machinery, altering a production practice, or some other possible change. Occasionally, one of those ideas […]
Balance Sheet – Focus on Inventory
As people who live in rural areas, we are all use to the potholes that jar our vehicles and rattle our teeth. Likewise, the financial statements that measure the position and performance of our dairy businesses have potholes too that are sometimes difficult to navigate.
AgriVision Episode 27 – Harvesting high-moisture corn makes sense
Host Katie Wantoch and Ryan Sterry, Professor and Agriculture Agent with Extension in St. Croix County, discuss the pro’s and con’s of harvesting, storing, and feeding high-moisture corn to dairy cattle.
Balance Sheet Structure Details
The Balance Sheet is a financial statement that measures the financial position of the business at a point in time.
Cash and Accrual Income Statement
The income statement is one of the four primary farm business financial statements. Its purpose is to measure profits and financial performance of the farm business.
Many Wisconsin dairy farmers borrow from nontraditional lenders
Historically, Wisconsin dairy farmers have sought and received credit from traditional lenders with local branches such as Farm Credit Associations, Agricultural Credit Associations, commercial banks, or credit unions. Increasingly, however, farmers are turning to alternative sources for their borrowing needs.
AgriVision Episode 24 – Golden opportunity? Part 1
Host Katie Wantoch and Ryan Sterry, Professor and Agriculture Agent with Extension in St. Croix County, discuss items to consider when renting additional farmland along with completing an enterprise budget.
AgriVision Episode 23 – At a Crossroads
Host Katie Wantoch and Jim Versweyveld, Agriculture Extension educator in Walworth County, discuss viability of a dairy farm and future retirement options for a farm couple.
AgriVision Episode 22 – Buying a chopper
Host Katie Wantoch and Ben Jenkins, Agriculture Extension educator in Green Lake County, discuss a farmer and his son who are considering buying a new chopper and how to cash flow this purchase.
AgriVision Episode 21 – Does it make sense to buy farmland at our age?
Host Katie Wantoch and Simon Jette-Nantel, former Assistant Professor at UW-River Falls and Extension Farm Management Specialist, discuss whether a land purchase is a profitable acquisition compared to other retirement investments for a farm couple.
AgriVision Episode 20 – Building resiliency helps weather ups, downs of markets
Host Katie Wantoch and Kaitlyn Davis, Extension Agriculture Educator in LaCrosse County, discuss if a farmer and his son should prioritize paying down debt this year instead of replacing some equipment.
AgriVision Episode 19 – Short on hay
Host Katie Wantoch and Richard Halopka, Extension crops and soils educator in Clark County, discuss the advantages and disadvantages of a farmer purchasing locally grown hay or hay from western states.
AgriVision Episode 17 – There are pluses to buying forages
Host Katie Wantoch and Richard Halopka, Extension crops and soils educator in Clark County, discuss buying forages and calculating feed inventory for future needs.
AgriVision Episode 16 – Timing farming retirement
Host Katie Wantoch and Lyssa Seefeldt, Extension Dairy and Livestock Educator in Eau Claire County, discuss a farmer and his wife who are looking for advice on next steps for their dairy farm and timing the sale of their cows.
