These days, it’s not enough to put in extra hours in the machine shed and outside to make your farm a success. A farm is a multi-million dollar business that requires savvy management to make cash flow. Fortunately, there’s a plethora of resources out there and we’ve rounded up some of the most helpful and comprehensive that are sure to fortify your financial game. Crop insurance information, balance sheet templates, farm bill webinars: It’s all here!
Farm Business Management
After six years of stagnant commodities, farmers must keep a closer eye than ever on the financial performance of their operation. These are some of the top resources to help you keep in touch with the latest developments and sharpen your accounting skills.
Ag Business Management classes: Classes from the State Land Grant Universities such as the University of Minnesota, South Dakota State University, or Iowa State University cover everything from negotiating land rental agreements to understanding the impact the latest farm bill will have on your operation. Taught in-person around the state and online, keep checking to see what’s coming down the pike to sharpen your financial skills.
AgPlan: Before the bank approves your loan to start or expand a farm, the ag lender will be reviewing your business plan to see if your venture is economically viable. After the loan, treat your business plan as a working document, one that’s updated and revisited frequently, so you can reset goals as needed, and determine whether they’re on track. This resource from the U of M Extension service has plenty of tips, resources, samples and templates. The goal is to help you create a realistic plan that demonstrates to lenders that your operation is economically viable.
Farm financial management: Plan better and understand your financial situation. The University of Minnesota Extension Services has a variety of financial worksheets to help you navigate, from measuring cash flow to estimating machinery costs in the coming year.
FarmAnswers.org library: Access free business planning guides that cover key topics, including business management, taxes and marketing crops.
Farm Bill Calculator – NCGA: Use this simple farm bill calculator created by the National Corn Growers Association to help inform your decisions and understand your options related to the farm bill.
FarmDoc FAST Tools: The University of Illinois created a set of FAST (Farm Analysis Solution Tools) resources to assist those in agriculture in making better decisions with simple calculators and excel spreadsheets. These tools will help perform financial analysis, assess investment decisions and evaluate your options.
Financial Guidelines for Agriculture: Published by the Farm Financial Standards Council, keep this resource handy while bookkeeping and preparing financial reports.
Financial Performance Measures for Farms: On a single page, access a complete overview of financial performance measures — things like liquidity, solvency, profitability — used by ag lenders and farm accountants. Master these measures and lock your sites year-round on the performance of your operation.
Farm Service Agency (FSA) Loan Programs: Resource to review a full listing of FSA Farm Loan Programs available for all types of farmers and ranchers.
FINBIN: What if you could compare your farm finances with similar operations, so you can see where you stand, and know what’s going great and what can use improvement? This resource is one of the best in the country to help you do just that. Choose from whole farm, crop and livestock, describe your operation and start digging into the numbers.
Minnesota Farm Link: Find properties around the Gopher State for rent and for sale. Prospective farmers can also connect with producers who are getting ready to retire.
Weekly Farm Economics: Keep up with the latest research-based analysis to enrich your understanding of ag markets compiled by the University of Illinois.
Crop Insurance
Protection for your crops and your livestock against natural disaster is something you don’t want to do without. Before you buy, take time to understand the full risks, costs and potential scenarios, so you can choose the policy that gives your operation the financial cover it needs. These resources can help.
Crop insurance 101: This primer from National Crop Insurance Services (NCIS) walks you through how crop insurance came about, and how it protects your bottom line.
Crop insurance glossary: Pouring over those documents can be quite the brain-bender even for veteran producers, which makes this list from Texas A&M University an essential resource.
Farm Bill Resources In-Depth: Arm yourself with essential facts about the farm bill, crop insurance and how they work for you, thanks to resources from the American Farm Bureau Federation.
Risk management: The USDA offers tools to help farmers manage their risk and reduce costs. Farmers can also access guidelines for cover crops and prevented planting, tools for training, and important deadlines to plan for.
USDA Crops and Livestock Insurance Page: Discover a plethora of tools, calculators, guide sheets, agent locators and more.
New Farmers/Estate Planning
Whether you’re new to the field or taking the first steps to hand off the operation to the next generation, the tools below will make sure you're prepared.
Ag Transitions: The idea of transitioning the farm to the next generation can be intimidating, and because no two operations are alike, you’ll be working with a team of professionals to get it done, including an attorney that specializes in transitioning the family farm. Until then, this free online resource from the U of M Extension Service has resources and worksheets to give you an idea of what’s coming, and how you need to prepare.
Beginning farmers: Did you know beginning farmers are exempt from paying the administration fee for crop insurance? Check in with this USDA resource to access your full benefits.
Iowa Learning Farms webinars: Sometimes, farming comes with a bit of downtime, meaning you’re always on the lookout for audible ag content that truly enriches. Iowa State University has you covered. Visit Iowa State’s Extension website for additional resources.
Minnesota State Farm Business Management: Connect with one of eight participating community colleges and see if this one-on-one, self-paced program is right for you. (To help you pay for these or other college classes, check with the Minnesota Department of Agriculture, the Minnesota Farmers Union, Scholarships.com and other resources.)
Small Farm Business Planning: This includes a step-by-step guide, which can be a helpful resource to anyone building an agriculture business plan for the first time.
Farmer Stress: Financial and Emotional
It goes without saying that farmers have worked with tremendous challenges of making cash flow in the face of six years of declining markets. Though you’re working harder than over, don’t lose sight of the importance of addressing the emotional stress and being proactive about your current financial situation. Luckily, we’re seeing a growing number of entities providing help and connections so farmers can cope with the emotional and financial fallout.
TransFARMation: Hear real-life stories of producers enduring tough times, and what they’re doing to find solutions, in this compelling podcast and radio show produced by the Minnesota Department of Agriculture and the Red River Farm Network. Because sometimes, simply knowing that others like you are going through the same thing just helps.
Being a farmer takes grit and determination, both in the field and in the office. Use the above resources to help you get more done, and discover solutions to the challenges that come your way.
Learn more about Minnwest Bank’s account management solutions and how we can help you to streamline your agri-business operation. Contact an account manager today.
