Thirty OSUE Agriculture Educators and Specialists trained to use FINPACK ® Farm Financial Management Software

Where are we, where do we want to go, how can we get there? Critical questions for farm businesses in all stages of growth; new, expanding, consolidating, exiting, or transferring to the next generation. Important questions are not always easily or quickly answered. From a farm business perspective, the FINPACK ® financial planning and analysis software is a top-notch tool to help farm businesses of all types analyze and answer these questions.

Thirty Agriculture Educators and Specialists gathered for training on the newest release of the FINPACK program at the Ohio State University in Columbus in October. Designed and supported by the Center for Farm Financial Management at the University of Minnesota, FINPACK has been used by OSU Extension to help Ohio farms for 25 years.

Training focused on the FINAN financial analysis program, and FINLRB, a financial long-range budgeting program. Using FINAN with enterprise analysis, a farm business can analyze their business year and determine which crop (agronomic or horticultural) and/or livestock enterprises were profitable and which were not. It also analyzes the profitability of the total farm business. Profitability measures for the farm are graphically compared to Farm Financial Standards Council guidelines.

FINLRB allows a farm business to look at the “what ifs?” On paper, the farm can look at multiple ways of changing the business such as an expansion, changing enterprises. bringing in a family member, buying out a partner, making a major capital investment, etc. FINLRB allows you to look at any changes, evaluate profitability and compare them to the way things currently are before money is invested or ground is broken.

When an alternative is developed that meets the objectives of the farm business, two additional FINPACK programs can help complete the planning process. FINFLO generates annual, quarterly or monthly cash flow projections. Then, FINLRB and FINFLO results can be imported into the BUSINESS PLAN software. This user-friendly package then guides the farm through the additional non-financial sections needed in a complete business plan.

These OSU Educators and Specialists are available to work with farm businesses interested in learning more about and using these financial management tools. Look for your County Extension Educator or one in a county near you in the contact list that follows. Cost to a farm business for a FINLRB or FINAN is $100. Additional information about FINPACK can be reviewed at the Center for Farm Financial Management’s website: http://www.cffm.umn.edu