The Center for Farm Financial Management at the University of Minnesota has developed a Farm Financial Scorecard that you can complete annually to help you see trends in your farm business. The scorecard uses a set of financial ratios that help you translate your information into a value that you can use to assess your farm’s performance. Ratios also have the advantage of allowing you to benchmark your performance against other farms.
Tag: financial analysis tool
Calculating Break-Even Price or Sales Volume, or how will I know when the price is too low?
Every farmer has faced a scenario where they wonder if it’s worth planting or harvesting a crop. Knowing the price you need to receive or the volume you need to sell at a given price (or some combination of the two) can be helpful in determining whether or not an enterprise is likely to be profitable. A cost/volume/price analysis is the method that you can use to do this calculation.