Ready, Set, Go: Preparing Farms to Sucessfully Manage Risk

Farm Financial Analysis – The Ready, Set, Go Program

Dianne Shoemaker, OSU Extension Field Specialist, Dairy Production Economics

Barry Ward, OSU Extension, Leader, Production Business Management, Department of Agricultural, Environmental, and Development Economics

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Was 2014 a profitable year for your farm? Which enterprises were profitable?  Which were not?  How does your farm compare to similar farms in efficiency?  In profitability?  What does the competition look like?   Recent volatile feed, grain, milk, land and rental markets have created uncertain profit margins and financial security concerns.

Completing a farm financial analysis is an effective way for farms to know their costs of production, profitability, and financial ratios. Farms can track year-to-year changes, identify problems early, and benchmark against peer farms as well as control information critical to effective participation in risk management programs.

The Ohio Farm Business Analysis and Benchmarking Program can help farms answer these questions by completing a financial analysis of the whole farm and each enterprise.  An analysis will provide a farm with:

Year’s Beginning Balance Sheet

Income and Cash Flow Statements

Year’s Ending Balance Sheet

Financial Standards Measures

Enterprise Analysis including:

-Cost of Production

-Benchmarking Reports

Can’t go back and find the information needed to analyze 2014?  Through the Ready, Set, Go program, you will learn what financial and production information to keep and how to collect it in real time.   By the end of 2015 you will have everything needed to analyze how your farm business performed and will learn how to use your analysis to manage your farm and your farm’s risk.

Choose from classes, on-line webinars or videos along with personal assistance to guide you through the year from start to finish with a Farm Business Analysis.   Cost for the program is $100 per farm which will include up to 3 on-farm consultations.

 

For more information, contact Dianne Shoemaker at shoemaker.3@osu.edu or Christina Benton at 330.533.5538

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