Farm Operations

  • The Road From Good To Great

        As a CPA, I review a lot of financial statements.  As part of this review, I try to determine the ratios that separate the business from other businesses in the same industry.  Sometimes these ratios are positive and sometimes they are negative.  For comparing ratios for farmers, a great site is the Farm […]

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  • Your Time is Worth Something

    As a CPA, I get asked many times by small business owners what their business is worth.  As part of calculating that value we usually work up what the net bottom line earnings of the business is.  To detemine that, we take the profit and loss of the company and make certain adjustments.  Normally, we […]

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  • In-Kind Wages Can Be Better Than Cash

    One of the great options open to farmers is to pay their employees in-kind wages.  In-kind wages are the payments of the crops that a farmer grows.  For example, a farmer could pay their employees either cash wages of $10,000 or 1,000 bushels of soybeans worth $10,000.  The reason that a farmer would want to […]

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  • Why Strategic Plan Succeed

    In my previous post, I listed six reasons why strategic plans fail.   Strategic plans will succeed if they incorporate three main phases: The first phase is “intuitive thinking ” and it has more of an emotional attachment to it.  This first phase answers the bigger questions such as, “Why are we in business?  Who are our […]

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  • The Budget is Your Road Map

    Most farmers prepare a budget at the end of the year to present to their bankers and then promptly put it away and forget about it until the following fall.  I like to envision a budget is similar to a road map.  A map has many ways to get from point A to point B.  […]

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  • Great way to test for moisture

    On a recent episode of Agday, there was a small feature on a product from Reichhardt called a minibatt.  This is a very small hand-held portable combine that allows the farmer to harvest a small amount of grain and get a very quick reading on moisture levels of the crop.   I know growing on our farm, […]

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  • The Old Way to Make Money – Earn It!

    I saw a great post by Chuck Schwartau from the University of Minnesota Extension deparment.  The post was related to the dairy industry, but is applies to all farming and any business.  For the last twenty years or so, it seems that most people thought they could make easy money by borrowing more than they […]

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  • March 1 is file your taxes time

    Farmers are unique.  The IRS allows them to pay their income taxes later than almost anybody else. Noramally all returns are due on April 15 of each year and taxpayers need to pay in their taxes by either having enough withholding taken out of their wages or paying 4 equal quarterly estimated tax  payments in order to not […]

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  • Super Bowl of Farming

    The Super Bowl of Football is coming up in about two weeks. I have always thought that the game of football has many similarities to the business of farming. During the off and pre-season, the team is acquiring talent based upon their needs and goals for the upcoming season. As farmers, during this off-season, we […]

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  • Down Time is Go Time

    This time of year for most farmers is a period of down time. There may some crops that are planted, but dormant. Some farmers spend time maintaining their equipment for the new year. I think this time is what I call “Go Time.” This is the time to: Prepare and review your operating budget for […]

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