Division of Extension
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.
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.
Host Katie Wantoch and Simon Jette-Nantel, former Professor at UW-River Falls and Extension Farm Management Specialist, discuss whether a farmer should offer to rent his neighbor’s farm land and at what rental rate.
Host Katie Wantoch and Liz Binversie, former Extension agriculture educator from Brown County, answer a question from a high school senior inquiring about a future career in agriculture and their next steps.
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.
Host Katie Wantoch and Lyssa Seefeldt, Dairy and Livestock Agent in Eau Claire County, discuss a farmer and his son who are breeding the bottom half of their dairy herd to AI beef bulls and things to consider on this new enterprise.
Host Katie Wantoch and Jenny Vanderlin, Associate Director of the UW Center for Dairy Profitability, discuss whether a farmer should refinance his loans and tips for communicating with his ag lender.
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.
Farming is a complex business which demands accurate records and careful financial management.
An accounting system is a set of actions and methods designed to collect, store, and process financial transactions into management reports for decision-making.
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.
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.
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.
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.
Prospective farm equipment buyers today have several sources for finding the right machine for their operation. UW-Madison Extension offers tips for searching online for farm equipment.
Once you’ve decided to buy a piece of farm equipment, your next challenge is sourcing it. UW-Madison Extension provides tips on finding equipment off-line.
Successful farm tractor ownership requires a plan for scheduled maintenance and repairs as needed. This is especially true when purchasing a used farm tractor. UW-Madison Extension provides tips on keeping a tractor in good working condition.
If you are considering a purchase of a used farm tractor or other machine, even if you are not using it to do traditional farm work, safety must be a prime consideration. UW-Madison Extension provides some critical priority checkpoints to protect the personal safety of yourself, family members, workers and others who might be using the equipment that you purchase.
