As farmers navigate their financial state and investment decisions, they often have numerous questions. Whether they are new to farming or transitioning into a farm, they face challenges in gathering the necessary information.<\/p>\n\n\n\n
Katie Wantoch, UW-Extension Farm Management Outreach Specialist says the first step is to assess the historical performance of the farm. Farmers should consider what financial tools and also analysis methods are available to help them obtain the data they need.<\/p>\n\n\n\n
\u201cIn the realm of farming and agriculture, there is a wealth of information available on the internet,\u201d says Wantoch. \u201cHowever, it can be overwhelming and not always tailored to specific farming needs. Thankfully, the Farm Financial Standards Council (FFSC) provides standards as well as benchmarks for farmers to compare themselves to.\u201d<\/p>\n\n\n\n
While lenders are familiar with these standards, farmers can also benefit from using them to assess their financial performance.<\/p>\n\n\n\n
Accurate record-keeping is crucial for farm financials, especially when transitioning from one generation to another. Keeping track of various records, such as weather patterns and crop-specific expenses, is essential. However, the most critical aspect is maintaining precise financial records.<\/p>\n\n\n\n