Budget tracking helps prep your farm for the future

Budgeting is more important than ever as many farms become multimillion-dollar operations with complex business structures, tax management, agronomy and financial needs.

“Not only should every producer be doing some form of budgeting or financial planning every year for their own knowledge and understanding of their business, but we’re starting to see more and more banks demand it,” says Kelly Bromm, a farm management consultant with MNP.

With the right farm financial software, budget tracking helps prepare a farm business for the future, allows it to grow and provides peace of mind to the owners, according to Bromm.

Get the full picture
Farmers usually have a good indication of potential gross revenues and input costs. But many that MNP consultants meet for the first time, either don’t calculate their fixed costs, or include the costs that would help provide the full picture, Bromm says.

“And unless they’re tracking historical results for comparison or benchmarking themselves against their peers, are their numbers good, average or poor?” ... Read More