Financial Management
Successful small farmers know what success means
to them. Since success means different things to different people, this is very important.
While income from the farm is important, it
usually is not the only goal of the small farmer. Protecting the environment, being active
in the community, a rural lifestyle, and investments for future family expenses, such as
college, all can be important small farm goals. These need to be set by the farm family
working together.
The farm family then needs to take time to see
if they are making good progress toward their goals. Balance sheets and other financial
analysis tools help the farm family ensure that asset, debt, and basic money management
situations are all heading in the right direction.
As the farm business changes, other business
decisions may have to be made. New challenges, such as liabilities, personnel, marketing
and production risks, may all have to be faced. Goals must be re-examined and changed as
the small farm situation changes.
