Do you want to use updated financial record to guide your operation toward your short-term and long-term goals? Through our Financial Management programming you will learn about

Financial Statements  Update your financial records to support sound decision making Financial Analysis  Use break-even analysis and financial ratio calculations to analyze your operation's liquidity, solvency, profitability, financial efficiency, and repayment capacity Financial Planning  Integrate financial analysis and planning to align operational goals at different stages of the operator's life

Financial Statements:  Participants will gain familiarity with financial statements including the balance sheet, income statement, and statement of cash flows. Participants will be given instruction on how to initiate ongoing and accurate maintenance of the primary financial statements as a means of evaluating the operation. Ultimately, accurate and up-to-date financial statements will provide producers with another powerful tool to use in the decision-making process.

Related Resources:

Recond Keeping (.pdf) May 04
Using the Balanced Scorecard (.pdf) Sept 07

Financial Analysis:  The importance of financial analysis skills will be emphasized by discussing the dependent relationship of production, marketing, and financial risks in farm and/or ranch operations. Participants will be encouraged to integrate break-even analysis in the decision-making process for anticipating and responding to production, marketing, and financial risks. Participants will learn to employ accurate and updated financial statements in calculating financial ratios and analyzing liquidity, solvency, profitability, financial efficiency, and repayment capacity for an individual's farm and/or ranch operation.

Related Resources:

Financial Check-up (.pdf) Dec 02

Financial Planning:  This phase of the modeule will focus on how the financial needs of the farm business change at different stages of the operator's life. Emphasis will be placed on using financial analysis to examine the impact of changes in the farm business. Exit strategies will be examined. In addition, financial planning strategies impacting the next generation will be discussed.

Related Resources:

Financial Foundations
Farm Income and Costs - ERS Briefing Room

Master Business Managers rely upon updated financial records and improved analysis skills to manage financial risk and plan for the future. Access additional resources (Production & Risk, Commodity Marketing, and Strategic Planning & Policy) or return to the top of the Financial Management page.

Department of Economics
Box 504  Brookings, SD 57007   Phone 605-688-4855   Fax 605-688-6386