SOURCES AND USES OF FUNDS ON KFMA FARMS

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "SOURCES AND USES OF FUNDS ON KFMA FARMS"

Transcription

1 KANSAS FARM MANAGEMENT ASSOCIATION Your Farm - Your Information - Your Decision N E W S L E T T E R Volume 6, Issue 3 March 2012 SOURCES AND USES OF FUNDS ON KFMA FARMS A flow of funds report, often referred to as a sources and uses of funds statement, provides a mechanism for reporting how a farm s performance during an accounting period influenced and was influenced by major funding activities. This report reconciles information in the income statement, the balance sheet, and the cash flow statement. Sources of funds include total cash farm receipts, machinery sales, building sales, land sales, net farm loans received, net nonfarm loans received, nonfarm income, and net transfer in. If a farm borrows more money than its reduction in short-term and long-term debt (i.e., principal payments), net farms loans received will be positive. A decrease in accounts receivable from the beginning to the end of the year would represent a net transfer in. Uses of funds include total cash farm expenses, machinery purchases, building purchases, land purchases, net farm loans paid, net nonfarm loans paid, family living expenses, nonfarm expense, taxes, corporation operator labor, and net transfer out. If a farm pays back more money on loans than it borrows, net farm loans paid will be positive. An increase in accounts receivable from the beginning to the end of year would represent a net transfer out. A farm that Also in this newsletter: Long-Term Trends In Liquidity, Pg 5 Solvency, and Financial Stress Crop, Livestock, and Input Price Pg 10 Forecasts from FAPRI Recommendations for Further Reading Pg 12 is growing would typically have relatively higher asset purchases compared to asset sales, and a positive value for net farm loans received. In contrast, a farm that is downsizing, perhaps in anticipation of future retirement, would typically have relatively higher asset sales compared to asset purchases, and a positive value for net farm loans paid. Table 1 presents a summary flow of funds report for the 1,016 KFMA farms with continuous data from 2006 to The layout in Table 1 is similar to the layout contained in a KFMA member s whole-farm analysis report. In the summary report, farm loans received were greater than farm loans paid so net farm loans received was positive. Similarly, total transfers out were greater than transfers in so net transfer out was positive. Machinery, building, and land purchases are also reported as net figures in Table 1. Finally, most KFMA farms do not keep detailed nonfarm income and expense information so Table 1 assumes that the unlocated flow of funds represent nonfarm items. If all cash is accounted for, unlocated flow of funds would be zero. Net cash farm receipts (total cash farm receipts minus total cash farm expenses) ranged from $69,077 in 2006 to $131,438 in Net cash farm receipts were greater than $100,000 in 2008, 2009, and Average net farm income, on the other hand, was greater than $100,000 from 2007 to Net cash farm receipts, along with net farm loans received, were used to purchase assets and for nonfarm expenses (the primary nonfarm expense on most farms is family living expense).

2 KFMA Newsletter, March 2012, p. 2 Figure 1 presents net cash farm receipts (called net receipts in the figure), asset purchases, and unlocated funds for each of the last five years. Unlocated funds (i.e., nonfarm expenses) were above $40,000 in 2008, 2009, and 2010; and ranged from $34,116 in 2007 to $45,918 in Asset purchases at $78,101; $81,659; and $100,765; respectively, were substantially higher in 2008, 2009, and 2010 than the levels in the previous two years. It is obvious from Table 1 and Figure 1 that KFMA farms used the above average income in the last four years to expand their operations. It is important to note that not all farms purchased assets or increased loans over the last five years. Figure 2 presents the percentage of farms with positive net assets purchased and loans paid. Most farms purchased more assets than they sold over the last five years. However, it also important to note that from 44 to 48 percent of the farms in a given year paid down debt. Obviously, numerous farms were able to purchase assets and pay down debt in some years. This would have not been possible without the strong incomes during the last four years. This newsletter article presented historical sources and uses of funds information. I encourage KFMA members and others to take a close look at their flow of funds report and determine what their net cash farm receipts have been used for in recent years. For most businesses, to maintain competitiveness, it is essential that the business grow over time. Net cash farm receipts are an important source of funds that can be used to purchase assets and expand the farm. Michael Langemeier, Professor Department of Agricultural Economics Kansas State University

3 KFMA Newsletter, March 2012, p. 3 Table 1. KFMA Flow of Funds Reports, Item Sources of Funds Total Cash Farm Receipts 433, , , , ,588 Machinery and Building Sales Land Sales Net Farm Loans Received 12,076 10,074 21,683 6,862 28,500 Net Nonfarm Loans Received Nonfarm Income Net Transfer In Total Sources of Funds $446,009 $496,157 $590,365 $567,868 $631,088 Uses of Funds Total Cash Farm Expenses 364, , , , ,550 Machinery and Building Purchases 35,677 41,821 61,868 69,466 83,810 Land Purchases 6,510 9,537 16,233 12,193 16,955 Net Farm Loans Paid Net Nonfarm Loans Paid Family Living Expenses Nonfarm Expense Taxes Corporation Operator Labor Net Transfer Out ,892 3,733 2,660 Total Uses of Funds $408,028 $455,621 $538,330 $514,960 $575,975 Net Flow of Funds Net Flow of Funds $37,981 $40,536 $52,035 $52,908 $55,113 Beginning Cash Balance $37,443 $39,997 $46,842 $55,864 $62,142 Net Flow of Funds $37,981 $40,536 $52,035 $52,908 $55,113 Unlocated Flow of Funds $34,283 $34,116 $43,252 $45,918 $44,698 Ending Cash Balance $41,141 $46,417 $55,625 $62,854 $72,557 Source: Kansas Farm Management Association 2010 Databank.

4 KFMA Newsletter, March 2012, p. 4 $140,000 Figure 1. Net Receipts and Asset Purchases for KFMA Farms, Net Receipts Asset Purchases Unlocated Funds $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $

5 KFMA Newsletter, March 2012, p. 5 Figure 2. Percentage of KFMA Farms with Positive Net Assets Purchased and Loans Paid 100% Net Asset Purchases Net Loans Paid 80% 60% 40% 20% 0% LONG-TERM TRENDS IN LIQUIDITY, SOLVENCY, AND FINANCIAL STRESS This article uses KFMA data to examine trends in liquidity, solvency, and financial stress from 1973 to In addition, trends in interest rates and loan repayment rates are discussed. Liquidity is measured using the current ratio while solvency is measured using the debt to asset ratio. A farm is defined as financially stressed if return on equity is negative and the debt to asset ratio is above Table 1 illustrates trends in five-year averages of the current ratio, debt to asset ratio, and financial stress from 1973 to Given variability in weather, it is often useful to examine five-year average financial measures rather than examining the averages for a single year. The five-year average current ratio for KFMA farms for was 3.08, which was the highest average over the entire period. Using Table 1, the debt to asset ratio peaked during the period at The average debt to asset ratio for the period, 0.267, was the lowest average since the period. A negative return on equity and a debt to asset

6 KFMA Newsletter, March 2012, p. 6 ratio above 0.70 are used in Table 1 to define financial stress. Return on equity is negative when net farm income is below zero, or when unpaid family and operator labor is less than net farm income. Approximately 34.9 percent and 6.8 percent of the farms had a negative return on equity and a debt to asset ratio above 0.70, respectively, for the period. Combining these two items, approximately 4.4 percent of the KFMA farms were financially stressed during this period. The level of financial stress is substantially lower than that experienced in the mid-1980s, but is still higher than the averages experienced in the 1970s. The percentage of farms with negative earnings and a debt to asset ratio above 0.70 were 45 percent and 15 percent during the period, the peak financial stress years. Farms with negative earnings and/or a high debt to asset ratio are more vulnerable to increases in inflation and interest rates. Currently, agricultural interest rates are relatively low compared to historical interest rates. Table 2 presents annual agricultural interest rates for operating, intermediate, and real estate loans in Kansas from 1988 to Interest rates in the fourth quarter of 2011, the latest quarter available, were 6.28, 6.16, and 5.94 for operating, intermediate, and real estate loans, respectively. A longer term perspective on interest rates is provided in Figure 1 which illustrates trends in the prime interest rate since The prime interest rate has been 3.25 percent since January of The annual prime interest rate has not been this low since The information presented above illustrates that the interest rates faced by producers today are relatively low. If interest rates migrate towards the long-term average or those experienced in the early 1980s, farms with high levels of debt will be financially vulnerable. Given recent monetary policy, many economists predict that inflation will increase rather dramatically when the economy picks up. This increase in inflation would likely lead to substantially higher interest rates. Figure 2 presents a diffusion index of loan repayment rates derived from a survey of agricultural lenders conducted and summarized by the Federal Reserve Bank of Kansas City. Agricultural lenders respond to each survey question by indicating whether conditions during the current quarter are higher than, lower than, or the same as in the year-earlier period. The index numbers are computed by subtracting the percent of agricultural lenders responding lower from the percent that responded higher and adding 100. Thus, a decrease in the index suggests that repayment rates are worsening while an increase in the index indicates that repayment rates are improving. This index has been quite volatile historically, but it is noteworthy that the index has been above 100 since the third quarter of The relatively weak U.S. economy and the failure of policy makers to address long-term issues related to Social Security and Medicare has increased uncertainty. Fortuitously, KFMA farms, on average, are in a relatively strong position to weather the financial storm. Having said that, it is particularly important during uncertain times, to use benchmarks of key financial measures to gauge a farm s competitive position and have a contingency plan that addresses a scenario in which interest rates are substantially higher than current levels. Michael Langemeier, Professor Department of Agricultural Economics Kansas State University

7 KFMA Newsletter, March 2012, p. 7 Table 1. Trends in Liquidity, Solvency, and Financial Stress. Current Debt to Financial Years Ratio Asset Ratio Stress % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Source: 2010 KFMA Databank.

8 KFMA Newsletter, March 2012, p. 8 Table 2. Historical Agricultural Interest Rates. Operating Intermediate Real Estate Year Loans Loans Loans Source: Federal Reserve Bank of Kansas City, Kansas rates.

9 KFMA Newsletter, March 2012, p Figure 1. Prime Interest Rate Source: Board of Governors of the Federal Reserve System

10 KFMA Newsletter, March 2012, p Figure 2. Loan Repayment Rates, Diffusion Index Source: Federal Reserve Bank of Kansas City CROP, LIVESTOCK, AND INPUT PRICE FORECASTS FROM FAPRI Long-term price forecasts are often useful for planning purposes. With this in mind, this article briefly reviews some of price forecasts put together by FAPRI (Food and Agriculture Policy Research Institute) in their latest U.S. Baseline Briefing Book (March 2012). Table 1 presents prices for the current or most recent year, and five-year average forecasted prices. The FAPRI baseline presents forecasted prices for 10 years. The five-year averages in table 1 are computed using the first five forecast years in the baseline. Note that crop prices, with the exception of alfalfa, are forecasted using crop years rather than calendar years. Alfalfa, livestock, and input price forecasts using calendar years. It is important to also note that the crop year prices for the current year for all crops except alfalfa contain a mixture of actual and forecasted prices. All of the crop prices are projected to be lower for the 2012/2013 through 2016/2017 crop years than they were for the 2011/2012 crop year. Soybean has the lowest expected percentage decline in price at 2.0 percent. Wheat is

11 KFMA Newsletter, March 2012, p. 11 expected to be 17.0 percent lower while corn and grain sorghum are expected to be 19.5 and 20.7 percent lower, respectively. After seeing extended periods where prices were below breakeven, the higher forecasted prices for feeder steers and fed cattle in table 1 are definitely welcome news. Feeder prices (Oklahoma City prices for 600 to 650 pound steers) and fed cattle prices (5-area direct steer prices) are expected to be 12.8 and 9.1 percent higher, respectively. Beef cow inventories are expected to bottom out in 2013 at 29.9 million head and then slowly start to increase. Input prices for production items (which include purchased inputs such as seed, fertilizer, herbicide, fuel, etc.) are expected to increase by 4.8 percent while wages are expected to increase 6.7 percent. Interest rates, which are currently very difficult to predict, are expected to increase by approximately 16 percent. A broad examination of the relationship between input and output price forecasts, suggests that enterprise net returns, with the exception of those for beef cattle, are expected to tighten. The expected increase in output prices for beef cattle and expected decrease in feed grain and alfalfa prices is noteworthy. Of course, it is important to note that there are a plethora of factors that would change the longterm forecasts discussed above. Some of the most important factors include biofuel policies, GDP growth, and interest rates. Tax credits and tariffs for biofuels are assumed to be zero from 2013 on. Interest rates are expected to increase rather sharply, but remain below the high interest rates of the late 1970s and early 1980s. Finally, real GDP, after increasing to 1.8 percent in 2011 is expected to average 2.8 percent from 2012 to Michael Langemeier, Professor Department of Agricultural Economics Kansas State University

12 KFMA Newsletter, March 2012, p. 12 Table 1. Forecasted Crop, Livestock, and Input Prices. Item Current Forecast Change Crop 11/12 12/13 16/17 % Alfalfa ($/ton) % Corn ($/bu) % Grain Sorghum ($/bu) % Soybeans ($/bu) % Sunflowers ($/lb) % Wheat ($/bu) % Livestock % Barrows and Gilts ($/cwt) % Feeder Steers ($/cwt) % Fed Cattle ($/cwt) % Milk ($/cwt) % Inputs % Production Items (Index; 90 92=100) % Interest (Index; 90 92=100) % Wages (Index; 90 92=100) % Source: FAPRI, University of Missouri, U.S. Baseline Briefing Book, March RECOMMENDATIONS FOR FURTHER READING The purpose of this section of the newsletter is to briefly discuss articles and web sites that may be of interest to readers. In general, the articles discussed will not report on original research. Rather, the articles will contain citations to web sites and articles that discuss topics of general interest. Bernard Ferrari has recently written an article for McKinsey Quarterly entitled The Executive s Guide to Better Listening. Even if you are not an executive or do not employ individuals, you should find this article interesting. Listening is something that often needs to be worked on because it is important to be a good listener to gather relevant information for decision making. The author indicates that it is important to show respect for conversation partners, spend less time speaking, and challenge assumptions that inform conversations. More information is available in the article which is posted on my contributor site on Ag Manage under Recommendations for Further Reading. T. Kirk White and Robert Hoppe from USDA-

13 KFMA Newsletter, March 2012, p. 13 ERS have recently written an information bulletin entitled Changing Farm Structure and the Distribution of Farm Payments and Federal Crop Insurance which documents that commodity payments and crop insurance indemnities have shifted to larger farms. These large farms are producing an increasingly larger share of U.S. agriculture production. Since larger farms tend to earn higher household incomes, the shift in the distribution of payments has contributed to the incomes of larger farms. The article notes that 25 percent of commodity payments went to farms with a household income greater than $209,000 in More information can be obtained from the article which is posted to my contributor site on Ag Manager under Recommendations for Further Reading. A recent article entitled How is Land in the United States Used, written by Cynthia Nickerson and Allison Borchers, documents the use of agricultural land from 1949 to U.S. land area covers 2.3 billion acres. The proportion of land used for forestland and grazed, for pasture and range, and for cropland has declined from 63 percent in 1949 to 51 percent in In 2007, 127 million acres were in grazed forestland (down 52 percent from 1949), 614 million acres were in pasture and range (down 3 percent from 1949), and 408 million acres were in cropland (down 17 percent from 1949). More information, including a map containing the distribution of major land use types by state, can be obtained from the article which is posted to my contributor site on Ag Manager under Recommendations for Further Reading. Michael Langemeier, Professor Department of Agricultural Economics Kansas State University The Kansas Farm Management Association (KFMA) Newsletter is distributed monthly to provide farm management information to farm decision makers. Further farm management information can be found on the KFMA program website: and, on the Extension Agricultural Economics website: The Newsletter is edited by Michael Langemeier, Professor, Department of Agricultural Economics, Kansas State University. Kansas State University Agricultural Experiment Station and Cooperative Extension Service. K-State Research and Extension is an equal opportunity provider and employer. Issued in furtherance of Cooperative Extension Work, Acts of May 8 and June 30, 1914, as amended. Kansas State University, County Extension Councils, Extension Districts and United States Department of Agriculture Cooperating, Gary Pierzynski, Interim Dean and Director.

Appendix I Whole Farm Analysis Procedures and Measures

Appendix I Whole Farm Analysis Procedures and Measures Appendix I Whole Farm Analysis Procedures and Measures The whole-farm reports (except for the balance sheets) include the same number of farms, which were all of the farms whose records were judged to

More information

This article illustrated deferred tax liabilities for a cash crop farm in west central Indiana. The

This article illustrated deferred tax liabilities for a cash crop farm in west central Indiana. The September 2014 Computation of Deferred Liabilities Michael Langemeier, Associate Director, Center for Commercial Agriculture This article is one of a series of financial management articles that will examine

More information

Farm Financial Statements Net Worth Statement Statement of Cash Flows Net Income Statement Statement of Owner Equity

Farm Financial Statements Net Worth Statement Statement of Cash Flows Net Income Statement Statement of Owner Equity Farm Financial Statements Net Worth Statement Statement of Cash Flows Net Income Statement Statement of Owner Equity Recording Transactions in the Date Cash Journal Description Value Amount (bu., lb.,

More information

Agriculture & Business Management Notes...

Agriculture & Business Management Notes... Agriculture & Business Management Notes... Preparing an Income Statement Quick Notes... The income statement measures the profitability of a business over a specific period of time. Cash reporting of income

More information

Cash Flow Projection for Operating Loan Determination

Cash Flow Projection for Operating Loan Determination E-19 RM-7.0 02-09 Risk Management Cash Flow Projection for Operating Loan Determination Danny Klinefelter and Dean McCorkle* A cash flow statement can be simply described as a record of the dollars coming

More information

How much financing will your farm business

How much financing will your farm business Twelve Steps to Ag Decision Maker Cash Flow Budgeting File C3-15 How much financing will your farm business require this year? When will money be needed and from where will it come? A little advance planning

More information

Using Enterprise Budgets to Compute Crop Breakeven Prices Michael Langemeier, Associate Director, Center for Commercial Agriculture

Using Enterprise Budgets to Compute Crop Breakeven Prices Michael Langemeier, Associate Director, Center for Commercial Agriculture October 2015 Using Enterprise Budgets to Compute Crop Breakeven Prices Michael Langemeier, Associate Director, Center for Commercial Agriculture Enterprise budgets provide an estimate of potential revenue,

More information

Assessing and Improving Farm Profitability

Assessing and Improving Farm Profitability 1 Fact Sheet 539 Assessing and Improving Farm Profitability Is my farm making money? This is a question farm managers think about often. To stay in business, the farm must generate a profit, at least in

More information

Would you like to know more about the

Would you like to know more about the Your Net Worth Ag Decision Maker Statement File C3-20 Would you like to know more about the current financial situation of your farming operation? A simple listing of the property you own and the debts

More information

Business Analysis: Which Financial Tools Should I Use? John F. Smith, Ph.D. Department of Animal Science and Industry, Kansas State University

Business Analysis: Which Financial Tools Should I Use? John F. Smith, Ph.D. Department of Animal Science and Industry, Kansas State University Business Analysis: Which Financial Tools Should I Use? Kevin C. Dhuyvetter, Ph.D. Department of Agricultural Economics, Kansas State University 307 Waters Hall, Manhattan, KS 66506. Tel 785-532-3527; fax

More information

Agriculture & Business Management Notes...

Agriculture & Business Management Notes... Agriculture & Business Management Notes... Preparing and Analyzing a Cash Flow Statement Quick Notes... Cash Flow Statements summarize cash inflows and cash outflows over a period of time. Uses of a Cash

More information

MPP Decision Guide 15 01. MPP Dairy Financial Stress test Calculator: A User s Guide

MPP Decision Guide 15 01. MPP Dairy Financial Stress test Calculator: A User s Guide MPP Decision Guide 15 01 MPP Dairy Financial Stress test Calculator: A User s Guide Christopher Wolf and Marin Bozic Michigan State University and the University of Minnesota A financial stress test calculator

More information

Record Keeping in Farm Management

Record Keeping in Farm Management ExEx 5054 May 2004 Economics COLLEGE OF AGRICULTURE & BIOLOGICAL SCIENCES / SOUTH DAKOTA STATE UNIVERSITY / USDA Record Keeping in Farm Management Agustin Arzeno Area Management Specialist Introduction

More information

Contents. Acknowledgements... iv. Source of Data...v

Contents. Acknowledgements... iv. Source of Data...v Kentucky Farm Business Management Program Annual Summary Data: Kentucky Grain Farms - 2011 Agricultural Economics Extension No. 2012-17 June 2012 By: Amanda R. Jenkins Michael C. Forsythe University of

More information

Outlook for the 2013 U.S. Farm Economy

Outlook for the 2013 U.S. Farm Economy Outlook for the 213 U.S. Farm Economy Kevin Patrick Farm and Rural Business Branch Resource and Rural Economics Division Highlights Net farm income in 213 forecast: $128.2 billion Net cash income in 213

More information

Analyzing Quicken Farm Records with FINPACK

Analyzing Quicken Farm Records with FINPACK Analyzing Quicken Farm Records with FINPACK FINPACK is a computerized farm financial planning and analysis system. It will help you evaluate your financial situation, explore alternatives, and make informed

More information

Making more money is the goal of many Tennessee farmers. The first step towards this goal

Making more money is the goal of many Tennessee farmers. The first step towards this goal THE UNIVERSITY OF TENNESSEE AGRICULTURAL EXTENSION SERVICE PB 1583 The Development and Use of Financial Statements: The Balance Sheet Robert W. Holland, Jr., Assistant Area Specialist-Farm Management Delton

More information

AGRICULTURAL ECONOMICS. Preparing a Projected Cash Flow Statement. Introduction. What Information Is Provided? EC-616-W

AGRICULTURAL ECONOMICS. Preparing a Projected Cash Flow Statement. Introduction. What Information Is Provided? EC-616-W AGRICULTURAL ECONOMICS EC-616-W Preparing a Projected Cash Flow Statement Freddie L. Barnard, Professor Elizabeth A. Yeager, Assistant Professor Department of Agricultural Economics Purdue University Introduction

More information

Farm Sector Income & Finances 2015 Outlook. By Ryan Kuhns and Kevin Patrick Economics Research Service, USDA

Farm Sector Income & Finances 2015 Outlook. By Ryan Kuhns and Kevin Patrick Economics Research Service, USDA Farm Sector Income & Finances 2015 Outlook By Ryan Kuhns and Kevin Patrick Economics Research Service, USDA Net cash and net farm income forecast below 10-year moving average for first time since 2009

More information

Agricultural Commodity Marketing: Futures, Options, Insurance

Agricultural Commodity Marketing: Futures, Options, Insurance Agricultural Commodity Marketing: Futures, Options, Insurance By: Dillon M. Feuz Utah State University Funding and Support Provided by: On-Line Workshop Outline A series of 12 lectures with slides Accompanying

More information

Preparing Agricultural Financial Statements

Preparing Agricultural Financial Statements Preparing Agricultural Financial Statements Thoroughly understanding your business financial performance is critical for success in today s increasingly competitive agricultural environment. Accurate records

More information

Leasing vs. Buying Farm Machinery

Leasing vs. Buying Farm Machinery Leasing vs. Buying Farm Machinery Department of Agricultural Economics MF-2953 www.agmanager.info Machinery and equipment expense typically represents a major cost in agricultural production. Purchasing

More information

Establishing and Using a Farm Financial Record-Keeping System

Establishing and Using a Farm Financial Record-Keeping System PB 1540 Establishing and Using a Farm Financial Record-Keeping System Delton C. Gerloff, Associate Professor, Agricultural Economics Robert W. Holland Jr., Assistant Area Specialist - Farm Management For

More information

Enterprise Budgeting. By: Rod Sharp and Dennis Kaan Colorado State University

Enterprise Budgeting. By: Rod Sharp and Dennis Kaan Colorado State University Enterprise Budgeting By: Rod Sharp and Dennis Kaan Colorado State University One of the most basic and important production decisions is choosing the combination of products or enterprises to produce.

More information

Factors Impacting Dairy Profitability: An Analysis of Kansas Farm Management Association Dairy Enterprise Data

Factors Impacting Dairy Profitability: An Analysis of Kansas Farm Management Association Dairy Enterprise Data www.agmanager.info Factors Impacting Dairy Profitability: An Analysis of Kansas Farm Management Association Dairy Enterprise Data August 2011 (available at www.agmanager.info) Kevin Dhuyvetter, (785) 532-3527,

More information

The Effects of Drought and Disaster Payments on the Missouri Cattle Industry

The Effects of Drought and Disaster Payments on the Missouri Cattle Industry The Effects of Drought and Disaster Payments on the Missouri Cattle Industry July 2016 Dr. Scott Brown Assistant Extension Professor 215 Mumford Hall Columbia, MO 65211 (573) 882 3861 brownsc@missouri.edu

More information

Debt Service Analysis: Can I Repay?

Debt Service Analysis: Can I Repay? Purdue Extension Knowledge to Go Debt Service Analysis: Can I Repay? Low prices and incomes have made many farmers and their lenders concerned about the farmers ability to fulfill debt obligations. Lenders

More information

Cash Flow Budget: What Will It Tell Me? *

Cash Flow Budget: What Will It Tell Me? * Purdue Extension Knowledge to Go Cash Flow Budget: What Will It Tell Me? * How much financing will your farm business require this year? When will money be needed, and from where will it come? A little

More information

THE FINANCIAL CRISIS: Is This a REPEAT OF THE 80 S FOR AGRICULTURE? Mike Boehlje and Chris Hurt, Department of Agricultural Economics

THE FINANCIAL CRISIS: Is This a REPEAT OF THE 80 S FOR AGRICULTURE? Mike Boehlje and Chris Hurt, Department of Agricultural Economics THE FINANCIAL CRISIS: Is This a REPEAT OF THE 80 S FOR AGRICULTURE? Mike Boehlje and Chris Hurt, Department of Agricultural Economics The current financial crisis in the capital markets combined with recession

More information

Section II: Problem Solving (200 points) KEY

Section II: Problem Solving (200 points) KEY ARE 495U Assignment 2-10 points Create 5 or more marketing plan questions that need to be answered related to FF. 2013 North Carolina FFA Farm Business Management Career Development Event Section II: Problem

More information

Effectiveness of Increasing Liquidity as a Response to Increased Repayment Risk: A Case Study

Effectiveness of Increasing Liquidity as a Response to Increased Repayment Risk: A Case Study Effectiveness of Increasing Liquidity as a Response to Increased Repayment Risk: A Case Study ABSTRACT Volatile net farm incomes and potential for higher interest rates has strengthened the importance

More information

Understanding and Using Cattle Basis in Managing Price Risk

Understanding and Using Cattle Basis in Managing Price Risk Understanding and Using Cattle Basis in Managing Price Risk by R. Curt Lacy 1, Andrew P. Griffith 2 and John C. McKissick 3 Introduction Understanding the concept of basis is a key element in developing

More information

Audience Response Cards 2/13/2013. Operating with Today s Land Values. Outline for today: Know how. Know now. Know how. Know now. Know how. Know now.

Audience Response Cards 2/13/2013. Operating with Today s Land Values. Outline for today: Know how. Know now. Know how. Know now. Know how. Know now. Operating with Today s Land Values Prepared by: T. Lemmons & A. Vyhnalek Adapted from: B. Johnson. (2012). Nebraska Farm Real Estate Market Report. UNL Extension Presented by: Allan Vyhnalek 402 563 4901

More information

Farm Tax Record Book SAMPLE

Farm Tax Record Book SAMPLE Farm Tax Record Book TABLE OF CONTENTS Farm Receipts... Milk Sales and Deductions Worksheet... Government Payments Worksheet... Commodity Certificates... Sale of Livestock Worksheet... Farm Expenses...0

More information

Financial Management: The Key to Farm-Firm Business Management

Financial Management: The Key to Farm-Firm Business Management E-491 RM5-10.0 10-08 Risk Management Financial Management: The Key to Farm-Firm Business Management Jose G. Pena and Danny Klinefelter* Most farmers and ranchers still prefer to concentrate on production

More information

Managing Feed and Milk Price Risk: Futures Markets and Insurance Alternatives

Managing Feed and Milk Price Risk: Futures Markets and Insurance Alternatives Managing Feed and Milk Price Risk: Futures Markets and Insurance Alternatives Dillon M. Feuz Department of Applied Economics Utah State University 3530 Old Main Hill Logan, UT 84322-3530 435-797-2296 dillon.feuz@usu.edu

More information

How much did your farm business earn last year?

How much did your farm business earn last year? Your Farm Ag Decision Maker Income Statement File C3-25 How much did your farm business earn last year? Was it profitabile? There are many ways to answer these questions. A farm income statement (sometimes

More information

Farm Financial Management

Farm Financial Management Farm Financial Management Your Farm Income Statement How much did your farm business earn last year? There are many ways to answer this question. A farm income statement (sometimes called a profit and

More information

Impact of Fuel Price Increases on Texas Crops

Impact of Fuel Price Increases on Texas Crops Impact of Fuel Price Increases on Texas Crops Chris R. Eggerman Research Assistant Department of Agricultural Economics Texas A&M University College Station, Texas 77843-2124 creggerman@ag.tamu.edu James

More information

Breakeven Analysis. Takes the user to the data input worksheet of the tool.

Breakeven Analysis. Takes the user to the data input worksheet of the tool. Breakeven Analysis This program allows the user to calculate breakeven price and yield levels and prepare projected net farm income and cash flow statements. The Breakeven Analysis program assists farm

More information

but that was then. Today, those in agriculture may find themselves competing against lower-risk businesses for the services of a lender.

but that was then. Today, those in agriculture may find themselves competing against lower-risk businesses for the services of a lender. There was a time when lenders knew the financial pressures and capitalization needs of those involved in agriculture. They knew just about every member of the agricultural community by name and probably

More information

Quick Cash Flow Projections

Quick Cash Flow Projections Quick Cash Flow Projections The Quick Cash Flow Projections tool assists farm operators in projecting cash needs, farm profitability, and debt servicing capabilities. The program also aids users in performing

More information

Swine Farm Business Analysis Workbook

Swine Farm Business Analysis Workbook Swine Farm Business Analysis Workbook Swine AoE Team Michigan State University Lead author and editor: Roger Betz Section contributing authors: Sherrill Nott Gerry Schwab Janice Knuth Mike Staton Aug.

More information

Using Enterprise Budgets in Farm Financial Planning

Using Enterprise Budgets in Farm Financial Planning Oklahoma Cooperative Extension Service AGEC-243 Using Enterprise Budgets in Farm Financial Planning Damona Doye Regents Professor and Extension Economist Roger Sahs Extension Assistant Oklahoma Cooperative

More information

Measuring Financial Performance: A Critical Key to Managing Risk

Measuring Financial Performance: A Critical Key to Managing Risk Measuring Financial Performance: A Critical Key to Managing Risk Dr. Laurence M. Crane Director of Education and Training National Crop Insurance Services, Inc. The essence of managing risk is making good

More information

The data for this report were collected by Iowa Farm Business Association consultants and compiled by Iowa State University Extension and Outreach.

The data for this report were collected by Iowa Farm Business Association consultants and compiled by Iowa State University Extension and Outreach. 2015 Cash Iowa Rental Farm Rates Costs for Iowa Ag Decision Maker Returns 2015 Survey File C1-10 The farm record data utilized in this report were obtained from the Iowa Farm Business Association. The

More information

AGRICULTURE FINANCIAL STATEMENT Borrower # AND LOAN APPLICATION Telephone #

AGRICULTURE FINANCIAL STATEMENT Borrower # AND LOAN APPLICATION Telephone # AGRICULTURE FINANCIAL STATEMENT Borrower # AND LOAN APPLICATION Telephone # For the purpose of obtaining credit from Ramsey National Bank (RNB) and any future credit granted by the RNB, or to support an

More information

Crop Profit Margins Market Returns Above Variable Costs

Crop Profit Margins Market Returns Above Variable Costs Dollars per acre Crop Profit Margins Market Returns Above Variable Costs Crop margins are likely to remain historically high in 2010. Regional, Public, and Community Affairs Federal Reserve Bank of Kansas

More information

Gary A. Hachfeld, David B. Bau, & C. Robert Holcomb, Extension Educators

Gary A. Hachfeld, David B. Bau, & C. Robert Holcomb, Extension Educators Balance Sheet Agricultural Business Management Gary A. Hachfeld, David B. Bau, & C. Robert Holcomb, Extension Educators Financial Management Series #1 7/2013 A complete set of financial statements for

More information

The Costs of Raising Replacement Heifers and the Value of a Purchased Versus Raised Replacement

The Costs of Raising Replacement Heifers and the Value of a Purchased Versus Raised Replacement Managing for Today s Cattle Market and Beyond March 2002 The Costs of Raising Replacement Heifers and the Value of a Purchased Versus Raised Replacement By Dillon M. Feuz, University of Nebraska Numerous

More information

ProPartners Financial Application Cover Page Please fax to 651-282-7861 with application

ProPartners Financial Application Cover Page Please fax to 651-282-7861 with application Loan Information: ProPartners Financial Application Cover Page Please fax to 651-282-7861 with application Applicant Name: Requested Amount Dealer Buy Down - % Dealer Add-On + % (Buy-down and add-on are

More information

Lesson 2. Cash Flow Budgets

Lesson 2. Cash Flow Budgets A Project Funded by USDA BFRDP Grant #10506276 Development Partners Include: Lesson 2. Cash Flow Budgets Introduction Cash flow budgets provide detail about periods when cash outflows exceed cash inflows.

More information

Farm Business Analysis Report BEEF SUMMARY

Farm Business Analysis Report BEEF SUMMARY Extension No. M M-356 ESQ No. 490 1977 Farm Business Analysis Report BEEF SUMMARY Department of Agricultural Economics and Rural Sociology Cooperative Extension Service The Ohio State University Columbus,

More information

STANDARDIZED PERFORMANCE ANALYSIS

STANDARDIZED PERFORMANCE ANALYSIS STANDARDIZED PERFORMANCE ANALYSIS SPA-6 COW-CALF ENTERPRISE FINANCIAL PERFORMANCE MEASURES WORKSHEET (SPA-FCC) * 6-16-06 SPA is a standardized cow-calf enterprise production and financial performance analysis

More information

Composition of Farm Household Income and Wealth

Composition of Farm Household Income and Wealth Composition of Farm Household Income and Wealth Today it is rare for any household to receive all of its from a single source. Even when only one household member is employed, it is possible to earn from

More information

Impact of Crop Insurance and Indemnity Payments on Cash Rent and Land Values. Michael Langemeier Center for Commercial Agriculture Purdue University

Impact of Crop Insurance and Indemnity Payments on Cash Rent and Land Values. Michael Langemeier Center for Commercial Agriculture Purdue University Impact of Crop Insurance and Indemnity Payments on Cash Rent and Land Values Michael Langemeier Center for Commercial Agriculture Purdue University Background The magnitude of the impact of crop insurance

More information

Costs to Produce Hogs in IllinoisC2007

Costs to Produce Hogs in IllinoisC2007 Costs to Produce Hogs in IllinoisC2007 University of Illinois Farm Business Management Resources FBM-0150 Costs to Produce Hogs in IllinoisC2007 Dale H. Lattz Extension Specialist, Farm Management Department

More information

Managing Risk With Revenue Insurance

Managing Risk With Revenue Insurance Managing Risk With Revenue Insurance VOLUME 4 ISSUE 5 22 Robert Dismukes, dismukes@ers.usda.gov Keith H. Coble, coble@agecon.msstate.edu Comstock 10 Crop revenue insurance offers farmers a way to manage

More information

Appendix A: Glossary

Appendix A: Glossary Appendix A: Glossary Acreage class - a structural indicator of farm size based on acres operated. The five acreage classes generally used in this report are: 1-49 acres, 50-179 acres, 180-499 acres, 500-999

More information

Costs and Returns on Dry-Land Wheat Farms

Costs and Returns on Dry-Land Wheat Farms Costs and Returns on Dry-Land Wheat Farms (Waico- Gautttif., QietfOti, 1952) D. Curtis Mumford Agricultural Experiment Station Oregon State College Corvallis Circular of Information 541 April 1954 Costs

More information

Farmland Values Explained

Farmland Values Explained FCC Ag Economics: Farmland Values Explained Summer 2015 Values Explained 1 Introduction Agriculture is a diverse and complex sector. Like a CEO of any business, a producer cannot solely focus on the production

More information

Main Street ECONOMIST: ECONOMIST THE THE. Economic information. Financing Young and Beginning Farmers. By Nathan Kauffman, Economist

Main Street ECONOMIST: ECONOMIST THE THE. Economic information. Financing Young and Beginning Farmers. By Nathan Kauffman, Economist THE Main Street ECONOMIST: ECONOMIST Economic information Agricultural for the and Cornhusker Rural Analysis State September 201 0 Federal Reserve Bank of of Kansas City Financing Young and Beginning Farmers

More information

Eastern Kentucky Meat Goat Budget Analysis

Eastern Kentucky Meat Goat Budget Analysis Eastern Kentucky Meat Goat Budget Analysis Agricultural Economics Extension No. 2000-11 May 2000 By: ALIOUNE DIAW AND A. LEE MEYER University of Kentucky Department of Agricultural Economics 400 Charles

More information

Crop-Share and Cash Rent Lease Comparisons Version 1.6. Introduction

Crop-Share and Cash Rent Lease Comparisons Version 1.6. Introduction Crop-Share and Cash Rent Lease Comparisons Version 1.6 Alan Miller and Craig L. Dobbins Spreadsheet can be found at http://www.agecon.purdue.edu/extension/pubs/farmland_values.asp Introduction This spreadsheet

More information

North American Agriculture: A Perspective As Indicated By U.S. Farm Financial Results

North American Agriculture: A Perspective As Indicated By U.S. Farm Financial Results North American Agriculture: A Perspective As Indicated By U.S. Farm Financial Results CAES Annual Meeting June 17-19, 212 Michael Harris Farm and Rural Business Branch USDA-Economic Research Service The

More information

Agricultural Cycles: Livestock Market Assessment and Long Term Prospective (Beef Cattle and Hogs)

Agricultural Cycles: Livestock Market Assessment and Long Term Prospective (Beef Cattle and Hogs) Agricultural Cycles: Livestock Market Assessment and Long Term Prospective (Beef Cattle and Hogs) By Lee Schulz Assistant Professor/Extension Livestock Economist, Iowa State University In the current economic

More information

OBTAINING OPERATING CAPITAL FOR 2016 GRAIN OPERATIONS: NEEDS, RISKS, REWARDS & THE BOTTOM LINE

OBTAINING OPERATING CAPITAL FOR 2016 GRAIN OPERATIONS: NEEDS, RISKS, REWARDS & THE BOTTOM LINE OBTAINING OPERATING CAPITAL FOR 2016 GRAIN OPERATIONS: NEEDS, RISKS, REWARDS & THE BOTTOM LINE 02.03.16 JEFF RODIBAUGH FIRST FARMERS BANK & TRUST POLL: 2016 CORN BELT SEED CONFERENCE 1. You believe there

More information

Iowa Farm Outlook. November 2016 Ames, Iowa Econ. Info Pasture and Range Conditions and Prices: A Year in Review

Iowa Farm Outlook. November 2016 Ames, Iowa Econ. Info Pasture and Range Conditions and Prices: A Year in Review Iowa Farm Outlook 0BDepartment of Economics November 2016 Ames, Iowa Econ. Info. 2079 Pasture and Range Conditions and Prices: A Year in Review This year the U.S. has enjoyed favorable pasture and range

More information

The BASICS of FINANCIAL STATEMENTS For Agricultural Producers

The BASICS of FINANCIAL STATEMENTS For Agricultural Producers The BASICS of FINANCIAL STATEMENTS For Agricultural Producers Authors: James McGrann Francisco Abelló Doug Richardson Christy Waggoner Department of Agricultural Economics Texas Cooperative Extension Texas

More information

U.S. crop program fiscal costs: Revised estimates with updated participation information

U.S. crop program fiscal costs: Revised estimates with updated participation information U.S. crop program fiscal costs: Revised estimates with updated participation information June 2015 FAPRI MU Report #02 15 Providing objective analysis for 30 years www.fapri.missouri.edu Published by the

More information

BUSINESS TOOLS. Preparing Agricultural Financial Statements. How do financial statements prove useful?

BUSINESS TOOLS. Preparing Agricultural Financial Statements. How do financial statements prove useful? Preparing Agricultural Financial Statements Thoroughly understanding your business financial performance is critical for success in today s increasingly competitive agricultural, forestry and fisheries

More information

How Lending Decisions Are Made

How Lending Decisions Are Made How Lending Decisions Are Made Every lending institution has a set of credit standards or guidelines that are used to analyze and approve loans. At Northwest Farm Credit Services, these guidelines ensure

More information

This publication from the Kansas State University Agricultural Experiment Station and Cooperative Extension Service has been archived.

This publication from the Kansas State University Agricultural Experiment Station and Cooperative Extension Service has been archived. DERIVED FARM FINANCIAL RATIOS FOR KANSAS FARMS * Larry N. Langemeier ** ABSTRACT Net farm income for agricultural producers enrolled in the Kansas Farm Management Association (KFMA) program during the

More information

The financial position and performance of a farm

The financial position and performance of a farm Farm Financial Ag Decision Maker Statements File C3-56 The financial position and performance of a farm business can be summarized by four important financial statements. The relationship of these statements

More information

Repayment Capacity Sensitivity Analysis Using Purdue Farm Financial Analysis Spreadsheet

Repayment Capacity Sensitivity Analysis Using Purdue Farm Financial Analysis Spreadsheet Repayment Capacity Sensitivity Analysis Using Purdue Farm Financial Analysis Spreadsheet ABSTRACT Many agricultural producers purchased capital items the past few years and some used borrowed funds to

More information

Purdue Agricultural Economics Report

Purdue Agricultural Economics Report Purdue Agricultural Economics Report August 2013 Up Again: Indiana s Farmland Market in 2013 Craig Dobbins, Professor and Kim Cook, Research Associate While the 2012 Indiana crop suffered from the worst

More information

Cash to Accrual Income Approximation

Cash to Accrual Income Approximation Cash to Accrual Income Approximation With this program, the user can estimate accrual income using the Schedule F from his/her federal income tax return. Fast Tools & Resources Farmers typically report

More information

Cost of Production. Cost of Production. Cost of Production!

Cost of Production. Cost of Production. Cost of Production! Cost of Production Versus Cost of Production And then there is, Cost of Production! Ken Bolton and Gary Frank Introduction September 2009 Historically business advisors have encouraged farm managers to

More information

Calculating Your Milk Production Costs and Using the Results to Manage Your Expenses

Calculating Your Milk Production Costs and Using the Results to Manage Your Expenses Calculating Your Milk Production Costs and Using the Results to Manage Your Expenses by Gary G. Frank 1 Introduction Dairy farms producing milk have numerous sources of income: milk, cull cows, calves,

More information

Introduction to Margin Management. Commodity & Ingredient Hedging, LLC

Introduction to Margin Management. Commodity & Ingredient Hedging, LLC Introduction to Margin Management Commodity & Ingredient Hedging, LLC www.cihedging.com 312-596-7755 What is a Margin? The concept of a profit margin is not new. Revenues minus expenses equal the profit

More information

Determining Equitable Crop Share or Cash Rental Arrangements Using the KSU-Lease Spreadsheet

Determining Equitable Crop Share or Cash Rental Arrangements Using the KSU-Lease Spreadsheet Determining Equitable Crop Share or Cash Rental Arrangements Using the KSU-Lease Spreadsheet November, 2003 Kevin Dhuyvetter, K-State Ag. Economics (785-532-3527; kcd@ksu.edu) Terry Kastens, K-State Ag.

More information

Financial. Management FOR A SMALL BUSINESS

Financial. Management FOR A SMALL BUSINESS Financial Management FOR A SMALL BUSINESS Welcome 1. Agenda 2. Ground Rules 3. Introductions FINANCIAL MANAGEMENT 2 Objectives Explain the concept of financial management and its importance to a small

More information

Cross Hedging Agricultural Commodities

Cross Hedging Agricultural Commodities Cross Hedging Agricultural Commodities Kansas State University Agricultural Experiment Station and Cooperative Extension Service Manhattan, Kansas 1 Many agricultural commodities do not have an active

More information

Characterization of the Beef Cow-calf Enterprise of the Northern Great Plains

Characterization of the Beef Cow-calf Enterprise of the Northern Great Plains Characterization of the Beef Cow-calf Enterprise of the Northern Great Plains Barry Dunn 1, Edward Hamilton 1, and Dick Pruitt 1 Departments of Animal and Range Sciences and Veterinary Science BEEF 2003

More information

Topic 7: Financial Performance

Topic 7: Financial Performance Topic 7: Financial Performance One of the most important tasks in transition planning is analyzing the financial performance of the farm operation. Too many farms move ahead making decisions regarding

More information

Analyzing a Farm Business Prepared by: MAFRD Farm Management Specialists

Analyzing a Farm Business Prepared by: MAFRD Farm Management Specialists Prepared by: MAFRD Farm Management Specialists A guide to help producers prepare, analyze and interpret farm business plans in order to make informed management decisions. Many farm producers prepare a

More information

Financial Stages of a Farmer s Life: Effects on Credit Analysis Measures

Financial Stages of a Farmer s Life: Effects on Credit Analysis Measures Financial Stages of a Farmer s Life: Effects on Credit Analysis Measures By Paul N. Ellinger, Freddie L. Barnard, and Christine Wilson Abstract Farm financial performance measures are evaluated for producers

More information

Assessing and Improving Your Farm Cash Flow

Assessing and Improving Your Farm Cash Flow Fact Sheet 541 Assessing and Improving Your Farm Cash Flow What Is Liquidity? Liquidity refers to the ability of your farm to generate enough cash to meet financial obligations as they come due without

More information

Farmer-to-Consumer Marketing: The Series

Farmer-to-Consumer Marketing: The Series Farmer-to-Consumer Marketing #6 Financial Management Scope of Financial Management Managing the financial affairs of a direct marketing operation includes: Raising capital Identifying financial objectives

More information

Assess Your 2011 Tax Situation By: Bart Peters. Kentucky Farm Business Management Program

Assess Your 2011 Tax Situation By: Bart Peters. Kentucky Farm Business Management Program COOPERATIVE EXTENSION SERVICE UNIVERSITY OF KENTUCKY COLLEGE OF AGRICULTURE, LEXINGTON, KY, 40546 Agricultural Economics - Extension No. xxx KENTUCKY FARM BUSINESS MANAGEMENT PROGRAM STATE NEWSLETTER Vol.

More information

Stocker Grazing or Grow Yard Feeder Cattle Profit Projection Calculator Users Manual and Definitions

Stocker Grazing or Grow Yard Feeder Cattle Profit Projection Calculator Users Manual and Definitions Stocker Grazing or Grow Yard Feeder Cattle Profit Projection Calculator Users Manual and Definitions The purpose of this decision aid is to help facilitate the organization of stocker or feeder cattle

More information

Part Three Major Opportunities Exist for U.S. and Canadian Beef Producers For (1) Those Who Start Paying Much Closer Attention to What Consumers are

Part Three Major Opportunities Exist for U.S. and Canadian Beef Producers For (1) Those Who Start Paying Much Closer Attention to What Consumers are Part Three Major Opportunities Exist for U.S. and Canadian Beef Producers For (1) Those Who Start Paying Much Closer Attention to What Consumers are Spending Their Stretched Protein Dollars on and Why

More information

Balance Sheet of Wisconsin Dairy Farms by Gary Frank 1 August 11, 2001

Balance Sheet of Wisconsin Dairy Farms by Gary Frank 1 August 11, 2001 Balance Sheet of Wisconsin Dairy Farms - 2000 by Gary Frank 1 August 11, 2001 Introduction One of the most important indicators of financial progress in a farm business is the Balance Sheet, sometimes

More information

CROP REVENUE COVERAGE INSURANCE PROVIDES ADDITIONAL RISK MANAGEMENT WHEAT ALTERNATIVES 1

CROP REVENUE COVERAGE INSURANCE PROVIDES ADDITIONAL RISK MANAGEMENT WHEAT ALTERNATIVES 1 Presented at the 1997 Missouri Commercial Agriculture Crop Institute CROP REVENUE COVERAGE INSURANCE PROVIDES ADDITIONAL RISK MANAGEMENT WHEAT ALTERNATIVES 1 Presented by: Art Barnaby Managing Risk With

More information

First Quarter 2015 Earnings Conference Call. 20 February 2015

First Quarter 2015 Earnings Conference Call. 20 February 2015 First Quarter 2015 Earnings Conference Call 20 February 2015 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning

More information

Preparing A Cash Flow Statement

Preparing A Cash Flow Statement Preparing A Cash Flow Statement By: Norm Dalsted and Rod Sharp Colorado State University It is highly unlikely you would attempt to drive to Detroit, Michigan, without first consulting a road map. You

More information

Agricultural Balance Sheet (Financial Statement)

Agricultural Balance Sheet (Financial Statement) Agricultural Balance Sheet (Financial Statement) This form can be used as a guide to collect information for an annual financial statement or for an application for credit. If you are using the Adobe PDF

More information

COM PREHENSIVE GUIDE TO FARM FINANCIAL MANAGEM ENT AGRICULTURE. Module 7: Cash Flow Statement Analysis

COM PREHENSIVE GUIDE TO FARM FINANCIAL MANAGEM ENT AGRICULTURE. Module 7: Cash Flow Statement Analysis COM PREHENSIVE GUIDE TO FARM FINANCIAL MANAGEM ENT AGRICULTURE P R O G R A M S A N D S E R V I C E S Module 7: Cash Flow Statement Analysis Course Map 7-1 Cash Flow Statement Analysis Introduction The

More information

Calf Marketing: Capturing the Greatest Value from a Weaned Calf. Dillon M Feuz Utah State University Extension Specialist

Calf Marketing: Capturing the Greatest Value from a Weaned Calf. Dillon M Feuz Utah State University Extension Specialist Calf Marketing: Capturing the Greatest Value from a Weaned Calf Dillon M Feuz Utah State University Extension Specialist Cattle ranching has always been a challenging and risky operation. Producers deal

More information

MANAGING YOUR FARM S FINANCIAL RISK

MANAGING YOUR FARM S FINANCIAL RISK chapter seven MANAGING YOUR FARM S FINANCIAL RISK Gayle Willett 2 3 4 4 10 11 13 15 18 20 21 Table of Contents Instructor Guidelines Introduction Financial Risk: Definition and Sources Managing Financial

More information