Front page of Farm Financial Statements Factsheet

Farm Financial Statements Factsheet

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January 8, 2024 - <laportej@msu.edu>

Farm Financial Statements

The financial position of you farm is important to the future success of your business. Identifying that position and overall financial performance is summarized through several important statements. These statements illustrate various aspects of your business including net worth, profitability, and cash flow. 

Information from these statements can be very useful, including:

  • Making important financing, operating, and investment decisions.
  • Provide needed information for credit applications.
  • Analyze the performance of the farm business.
  • Create budgets for use in planning.
Balance Sheet FFS.png
MSU Balance Sheet Template

Balance Sheets

The balance sheet provides a snapshot of a business’ assets, liabilities, and net worth (known as owner equity). Created at least once a year, typically at the end of each fiscal year.

Balance Sheet Forms

Income Statement

The income statement provides a measure of profitability for a farm or business over a specific period of time (often a calendar year). It shows all of the income and expenses from inventories and cash transactions.

Income Statement Forms
Statement of Cash Flow FFS1.png
Page 1 of MSU Statement of Cash Flows Template
Statement of Cash Flow FFS2.png
Page 2 of MSU Statement of Cash Flows Template

Cash Flow Statement & Projections

The cash flow statement provides information on how changes from the balance sheet and cash transactions (income) affect the farm business’ overall cash position. It analyzes how cash was used to meet financing, investing, and operating activities during a specific period.

Cash Flow Statement Forms
Cash Flow Projection Forms

Additional Resources                     

The following are resources related to financial statements that may be helpful to your farm business.

Farm Financial Analysis
 Farm Recordkeeping
  • Production Record Accuracy Check Template(Michigan State University) - a decision tool to help ensure production records are accurate and complete.
  • TelFarm(Michigan State University) provides accounting and record keeping support to Michigan farmers.
  • The Farm Records Book for Management(Michigan State University) is a workbook to keep track of your farm income and expenses. The book can be used in Excel, Google Sheets, or printed off to fill out by hand.

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