Agricultural Management e-School

Iowa State

Financial Decision Making

Course Detail

$150 Registration Fee

Fulfills FSA borrower education requirements


This course teaches you how to develop accurate and useful financial statements for your business. Learn how to understand principles of leverage, cash management, and asset investment.

FDM satisfies Iowa Farm Service Agency mandatory borrower education requirements.

Today a typical farming operation spends and takes in several hundred thousand dollars per year, and receipts of over a million dollars are not uncommon. The irregular nature of farm income and expenditures, and the use of very capital intensive production technologies have made having enough financing at the right time critical to the success of a farm business.

The use of capital and credit presents the modern farmer with a number of decisions to make:

  • How much to invest?
  • Where to obtain capital?
  • What mix of equity and debt to use?
  • What credit rates and terms to negotiate?
  • How much financial risk to take?

Making good financial decisions is often the difference between a prosperous, growing farm business and one that is constantly wondering how to pay the next bill. The modules in this course will address the decisions mentioned above, and more. Although the modules are arranged in a logical sequence, you can complete them in any order that you wish.

Bag O Money

Course Modules

  • Developing Financial Statements
  • Analyzing Financial Statements
  • Relating Financial Analysis to Production Records
  • Financial Trouble Shooting
  • 12 Steps to Cash Flow Budgeting
  • Cash Management
  • Financing Capital Assets
  • Working with Your Lender
FDM satisfies Iowa Farm Service Agency mandatory borrower education requirements. (instructions)

Decision Aids

  • Net Worth Statement
  • Net Farm Income Statement
  • Cash Flow Statement
  • Statement of Owner Equity
  • Farm Financial Analysis Ratios
  • Cash Flow Budget