Keep records Make record keeping a priority on your farm and do it well. Knowing exactly what state your farm is in from a financial and production standpoint is beneficial in making sure you are on the right track for a successful farm business.

1 Balance sheet Do a farm business and personal balance sheet every year. The balance sheet gives you a snapshot of your farm’s current standings.

Costs of production

Know your costs of production. A cash flow statement can help you identify where money is coming in and how it is being spent on your farm.

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Farm business analysis

Doing an annual farm business analysis forces you to do a balance and will help you to understand your costs of production. This will allow you to benchmark your business against other top producers in the area. A business analysis is also an excellent tool to monitor progress, set goals and monitor progress on those goals.

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