Missouri Dairy Business Update

Volume 15, Number 12
December 2015

Farm Finance Basics:
Complete a Balance Sheet - January 1

Tracking your farm financial progress starts with completing a Balance Sheet as of January 1st every year. The balance sheet lists everything you own and everything you owe.

The difference needed to "balance" what you owe and what you own is your equity or net worth at the point in time you do the balance sheet.

Completing a balance sheet every year as of January 1, gives you the ability to:

If you don't have a standard blank balance sheet from your lender, here is a balance sheet form and a completed dairy balance sheet to use as an example. Additional farm balance sheet templates are available online simply by doing an internet search for "Farm Balance Sheet."

To learn more about using farm financial statements and measure, check out the Center for Farm Financial Management's web site at: http://ifsam.cffm.umn.edu/