With the current challenging state of the farm economy, there is a need for financial education to support and assist producers. To address this need, the Agricultural Business Management Team with the University of Minnesota Extension has developed a program to provide farmers with skills necessary to implement a full circle, farm financial management approach, on their operation. Producer workshops were held around the state to enhance farm financial management skills. Utilizing an interactive approach, these sessions equip Minnesota producers with the knowledge to develop and analyze financial statements; be better prepared to evaluate their own financial position; manage their operation for greater financial gain; and have a better relationship with farm partners, including lenders. The intended audience was beginning farmers, small farmers, and traditional farmers wanting additional financial education.
Participants acted as a loan review committee, put their newly learned skills to the test, as they reviewed a case study farm, and determine its creditworthiness. Participants of the program learned about the case farm’s balance sheet, income statement, cash flow and all of the financial ratios that went along with them. A records keeping section finished the program with a review of what records are needed for better results. The group reviewed important financial metrics and considered impacts on their operation. The goal of the program is to promote better internal decision-making skills regarding farm management, as well as foster stronger relationships with external partners. Evaluations were completed at the end of the meeting to gauge initial learning.
|2018 Extension Risk Management Education National Conference