All farms need a balance sheet
July 26, 2023

There is so much predictability in the world of dairy farming; unpredictable weather, fluctuating milk and feed prices, and evolving market conditions are the norm. Farmers face many financial hurtles. To navigate the ever-changing financial climate, farmers must have a clear understanding of their financial position. The best tool for an operation to gain insight into their financial health is the balance sheet.  

A balance sheet is a comprehensive look at a farm’s financial position at a specific time. It looks at an operation’s assets, liabilities, and equity. Looking at farm assets, liabilities and overall net worth, farmer-owners can get a clear picture of their current financial health. This information allows farmers to make informed decisions about investments, expansions, and risk management.  

Making smart financial decisions and planning for the long-term are crucial to the success of any farm operation. Balance sheets are one of the key pieces to helping a farm make informed decisions. An up-to-date balance sheet can help ensure decisions are based on accurate financial data and increase the likelihood of success.  

Farmer-owners are in constant need of reliable tools to navigate financial management on their operation. The balance sheet also helps support financial decision-making, strategic planning, and performance measurement. Farmer-owners who embrace their balance sheet as they do their milking equipment or tractors, will have a very powerful tool to help make proactive choices, mitigate risk and build a resilient and sustainable farm operation.  

To see an example and download our easy-to-use balance sheet, click here.