Profits from the farming operation have to support four areas of the farm operation; interest, family withdrawals, debt reduction and growth. How efficiently a farm operation converts gross revenues into profits directly affects these four areas. When you couple the efficiency with the ATO, asset turnover ratio, of an asset you start to see how asset selection can affect the ability of an operation to service debt, fund growth, pay interest and provide for family living. C3-59 is a spreadsheet on the Ag Decision Maker website at Iowa State University that uses a farmers tax records and/or accounting records to help analyze the financial performance of the farm business. It helps to determine if there are problems in the farm operation and if it is an operational or capital problem.
|Conference||2019 Extension Risk Management Education National Conference|