Farm financial records

The dreaded word – RECORDS. We all have to keep a variety of records to be reported in various ways. To assist managers in making informed decisions affecting the profitability of their farms, records must be kept on the farming operation. The Internal Revenue Service (IRS), environmental regulation agencies, and some lending institutions also require farm information. Once you have developed a record-keeping system, the next step is a record analysis which will enable the farm operation to be managed efficiently.

Keeping, filing, categorizing, and maintaining farm financial and production information is referred to as record-keeping. Record analysis, on the other hand, is the evaluation of farm records allowing farm managers to make informed decisions based on actual or projected farm performance.

As the fall season arrives and moves into winter, farm families are in the planning and thinking stages of their production operations. A few questions to consider:

1. Do you evaluate your farm financial records to monitor the financial health and profitability of your farm business?
2. Do you know which enterprises on your farm are making money, and which ones are not?
3. Have you and your family discussed your current production situation and long-term goals for the farm?

If you are unsure of any answers to these questions, contact the White County Extension office for more information on Extension’s farm financial management programs. Your Area Farm Management Specialist would be happy to help you improve your record keeping system. Many Tennessee farm families have developed in-depth farm plans to assist them in making more informed decisions. The FINPACK Computer Farm Analysis is a tool to help in the farm planning process. All information used in a FINPACK analysis is confidential, and there is no cost to producers. The fall and winter months provide opportunities to plan for and evaluate your farm operation. Call the White County UT Extension office to arrange a visit today.