Farm Financial Planning
is Iowa State University Extension's farm financial analysis program.
It consists of one-on-one financial counseling, a computerized analysis
of the farm business, and referral to other extension programs or
outside services that may be useful.
Who is it for?
Financial Planning is for anyone who wants to understand a complete
picture of their farm financial situation. It helps take the
out of whether or not a change would increase profitability and improve
cash flow. A FINPACK analysis may provide a more in-depth
of the farm business, which many lenders are requiring before they will
extend further credit.
does it do?
Financial Planning helps you evaluate your farm business and determine
whether or not a change is desirable. It provides an in-depth plan for
the farm business so the operator and the lender can make decisions for
the future. Farm Financial Planning helps answer three basic questions
of sound business management.
- Where am I today?
- Where do I want to be in the future?
- How do I get there?
computer analysis looks at profitability, liquidity, solvency, and
risk-bearing ability. This information is provided for three or more
alternative plans at a time. Examples of alternative plans could be the
addition, expansion, or phasing out of a livestock operation, or
buying, selling, or renting land. Farm Financial Planning can help
evaluate ways to correct negative cash flow and profitability problems.
trained extension associate meets with the family to discuss the
results of the analysis and the possible effects if changes are made.
The extension worker may introduce other farm and family financial
materials or information about outside sources of help.
much does it cost?
service is offered at no charge. It is funded by the Agricultural
Credit School, a program of Iowa State University Extension and
Outreach and the Iowa Bankers Association.
performs the analysis?
Financial Management associates are part-time extension employees with
college degrees and special training in farm budgeting and financial
analysis. They have farm backgrounds so they understand the current
Only you and the associate will know the results of the analysis.
Information will not be shared with other people without your
does it take?
first meeting with the associate to provide information from your
records usually takes one to two hours. The second meeting may take
anywhere from one to three hours. The time required is dependent upon
the size and complexity of the operation.
How do I
make an appointment?
up an appointment, contact the associate
in your area. For more
information, contact your ISU
Extension farm management field specialist.