Lesson 1: Farm Financial Model Review

The farm financial model is a concept for understanding the financial flow of the farm business. Collecting and organizing financial information (records) through an accounting system is the first step. This financial information is transformed into financial statements for analysis and interpretation of the farm’s historical and current financial position and performance. Budgeting, feasibility, profitability and risk-ability analyses allows the farmer to make the best decisions possible for the farm business’s future.

The farm financial model helps the farmer make the best decisions for the farm business. From record keeping to financial analysis, this model illustrates how to make sound financial decisions and identifies tools to help in the process.

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