Taking the Pulse of Your Farm Business

About the program

UW-Madison Extension will launch a new self-paced online course, Farm Pulse: Financial Management and Analysis, to assist farmers in evaluating their finances, taking the pulse of their farm business, and setting goals for the future of their operation.  The course is adapted from Extension’s farm management curriculum, AgVentures: Building a Vision. The program is scheduled to be piloted in January 2023.

“It is important during these challenging times for farmers to be proactive about their farm financial management,” says Katie Wantoch, Farm Management Outreach Specialist. “Transitioning curriculum to online in Canvas (UW’s learning management software) and making it self-paced means individual farmers or farm families can complete the modules at a time that works best for them and from the comfort and safety of their own homes or offices.”

The Farm Pulse: Financial Management and Analysis course will delve into such topics as farm records, financials statements (balance sheet, income statement, statement of cash flow, statement of owner equity), farm financial measures and ratios, decision-making, and working with your lender. Participants can choose either a dairy or livestock and grain case farm to follow throughout the course, completing hands-on and interactive financial activities related to these case farms.

Overview of Extension’s Farm Pulse Program: Financial Management and Analysis course

• Module 1: Overview and introduction of dairy and livestock/grain case farms
• Module 2: Farm financial model and records
• Module 3: Financial statements – balance sheet, income statement, statement of cash flows, statement of owner equity
• Module 4: Financial position – liquidity and solvency ratios
• Module 5: Financial performance – profitability, repayment and replacement capacity, and financial efficiency ratios
• Module 6: Decision-making – DuPont Analysis, planning, and budgeting
• Module 7: Working with your lender
• Module 8: Next steps

At the end of the course, you will be able to:

• Recall the components of the farm business financial model.
• Identify records to collect for the farm business.
• Define the structure of a balance sheet, income statement, statement of cash flow, and statement of owner equity.
• Demonstrate how to organize financial information into financial statements.
• Interpret financial statements for the analysis of a farm’s financial position and financial performance.
• Compare and contrast financial strengths and weaknesses.
• Illustrate a farm’s plan to communicate with their lender.

The Farm Pulse: Financial Management and Analysis work is supported by USDA/NIFA grant under Award Number 2018-70027-28586.

Farm Financial Model Articles

Developing a Farm Financial Model

I. Records

• Collecting and Organizing
• Accounting

II. Management Reports

•  Balance sheet, 
• Income statement, 
• Statement of cash flows,
• Statement of owner equity. 

 III. Decision-Making, budget tools

•  Cash, 
• Partial, 
• Enterprise budgets