AMES, Iowa – Recent updates of six publications from Iowa State University Extension are designed to give farmers current information on a variety of topics related to farm financial management.
William Edwards, professor of economics and ISU Extension farm management specialist, oversees the publications in Extension’s farm management series. Revisions released during September include publications on farm income and net worth statements, farm financial statements, cash flow budgeting, farm lease agreements and the annual farm building rental rate survey report.
Edwards said farm operators can use these publications to help with organizing financial records and to provide good information on the business conditions that affect their operations. All of the publications are available at ISU Extension county offices and can be ordered online or downloaded at the ISU Extension Store, www.extension.iastate.edu/store
Your Farm Income Statement, FM 1816, is an eight-page publication that discusses farm profit and loss information. Cash income and expenses and adjustments, net income and capital gains are explained. The publication includes examples of a Net Farm Income Statement, a Cash Flow Statement and an Owner Equity Statement.
Your Net Worth Statement, FM 1791, is an eight-page publication that explains how to analyze the property you own and the debts that you owe and the relationship between the two. How to value assets and how to list liabilities are illustrated with specific examples, and the financial ratios between assets and liabilities are discussed. The publication includes an example of a Net Worth Statement.
Farm Financial Statements, FM 1824, is an eight-page publication that discusses the importance of farm financial statements in the operation of a farm business. Information from these statements is used to make important financing and investment decisions, to substantiate credit applications, to derive performance measures for analyzing the farm business and to develop budgets for planning purposes. It includes blank worksheets for completing a Net Income Statement, a Net Worth Statement, a Statement of Cash Flows and a Statement of Owner Equity. An electronic spreadsheet containing forms for all the statements is available on the Ag Decision Maker web site at www.extension.iastate.edu/agdm/ under the Whole Farm, Financial section.
Twelve Steps to Cash Flow Budgeting, FM 1792, is an eight-page publication that provides a step-by-step guide to developing a cash flow budget, analyzing the budget and planning for major investments. It includes planning examples and a sample Cash Flow Budget.
Two additional publications that have been revised recently focus on specific aspects of farm operations. Flexible Farm Lease Arrangements, FM 1724, is a four-page publication that provides information needed to develop flexible farm lease agreements, where the actual rent is not determined until after the crop is harvested. Included is a flexible lease agreement worksheet and multiple examples.
Iowa Farm Building Rental Rate Survey, FM 1838, is one of several farm management publications from ISU Extension that reports on-the-farm costs as recorded in a survey of farm operators, landowners, lenders, real estate brokers and professional farm managers. This one-page survey reports on prevailing rental rates for a variety of farm structures, including those used for livestock production, grain and forage storage and machinery storage.
The farm financial publications are part of a collection of more than 125 ISU Extension publications available on farm management topics. A list is available online at