Developing a Balance Sheet

March 2017 A good information system contributes to the financial success of the farm business. The information system should provide the manager with production information as well as current measures of the financial position, financial progress, ...

Stocker Lease Agreements

November 2017 Managing risk is required for many farm enterprises to be profitable. Contractual arrangements — such as livestock leases — can be crafted to lend or transfer capital, while also sharing risk. The terms of the agreement depend on t ...

Information Systems for Oklahoma Farmers

March 2017 If you can’t pencil a profit, you aren’t likely to plow one. A common farm recordkeeping system used to be the shoe box system. Under the shoe box system, all receipts, checks, invoices, and bank statements were simply collected an ...

From Cash Records to Cost of Production

March 2017 What’s the best way to summarize financial information about a farm/ranch enterprise?  Taking a look at cost of production per unit—animal, acre, bushel—is a good way to get a measure of profitability.  This provides a benchmark t ...

IFMAPS: A Partner in Farm Financial Planning

March 2017 Intensive Financial Management and Planning Support (IFMAPS), a special program of the Oklahoma Cooperative Extension Service, provides confidential business planning assistance to Oklahoma farm and ranch families. IFMAPS specialists work ...

Oklahoma Agricultural Linked Deposit Loans

March 2017 Oklahoma Linked Deposit Program The Oklahoma Agricultural Linked Deposit Program (OALDP) was enacted in March 1988 and the Small Business Linked Deposit Program was enacted in September 1988. Legislative revisions over the years define ...

Liabilities Schedule

March 2017 Well designed schedules help in organizing values needed to complete the Balance Sheet, Cash Flow Statement, Income Statement, and State­ment of Deferred Taxes and Valuation Equity (if used). This OSU Extension fact sheet provides instru ...

Owner Equity Section

March 2017 Owner equity is a residual value of assets which the owner has claim to after satisfying other claims on the assets (liabilities).  Owner equity is, therefore, a basic measure of the financial strength of a business.  Traditionally, ow ...

Farm and Ranch Stress Test

March 2017 The farm stress test is designed to provide insight into sources of farm financial stress and the extent of stress. It highlights a few key financial measures and provides a visual interpretation of the numbers. Ideally, the numbers used ...

Developing an Income Statement

March 2017 The income statement indicates whether a business has earned money or suffered a loss. Actual financial statements help evaluate past performance so that improvements can be made as needed. Projected financial statements allow for evaluat ...

Developing a Cash Flow Plan

February 2017 A cash flow plan is a recorded projection of the amount and timing of all cash inflows and cash outflows expected to occur throughout the planning period. Larger farms, substitution of capital assets for labor, and inflation increase t ...

Valuation of Raised Breeding Livestock

February 2017 This fact sheet explains the valuation methods for raised breeding livestock and is a supplement to fact sheets in the financial statement series.1 Valuation of raised breeding livestock differs from purchased assets in that the cost o ...

Budgets: Their Use in Farm Management

February 2017 Questions of how to best organize and manage the farm business in a manner consistent with the goals and objectives of the farm family must be continually addressed. The decision as to whether the considered alternatives are consistent ...

Evaluating Financial Performance and Position

February 2017 Measures of financial performance reduce a large amount of information into a convenient form for analysis. No single measure of financial performance is adequate for evaluating a farm business. Evaluation of several financial measures ...