Farm Financial Statements

Knowing the financial position of the farm is very important to the future success of the business.  Identifying that position and overall performance of a farm business is summarized through several important financial statements. These statements illustrate various aspects of the business including net worth, profitability, and cash flow. 

Information from these statements can be very useful, including:

  • Making important financing, operating, and investment decisions
  • Provide needed information for credit applications
  • Analyze the performance of the farm business
  • Create budgets for use in planning


Balance Sheets

The balance sheet provides a snapshot of a business’ assets, liabilities, and its net worth (also known as owner equity).  The balance sheet should be produced at least once a year at the end of the fiscal year.

Balance Sheet Forms


Income Statement

The income statement provides a measure of the profitability of a farm or business over a specific period of time (often a calendar year).  It shows all of the income and expenses from inventories and cash transactions for the farm.

Income Statement Forms


Cash Flow Statement & Projections

The cash flow statement provides information on how changes from the balance sheet and cash transactions (income) affect the farm business’ overall cash position.  It analyzes how cash was used to meet financing, investing, and operating activities during a specific period.

Cash Flow Statement Forms

Cash Flow Projection Forms


Additional Resources

The following are additional resources related to financial statements that may be helpful to your farm business.

Farm Financial Analysis
  • Business Analysis Handbooks (Michigan State University) provide all three financial statements and a guide on how to analyze the farm’s financial position and performance.
  • FINPACK (University of Minnesota) is a complete credit management solution that seamlessly integrates loan processes to reduce origination costs, improve compliance, and speed loan approvals. Available as a cloud-based SaaS solution or installed software.
  • Developing & Interpreting Your Financial Statements and Measures Online Course (University of Minnesota) - Put financial statements and measures to work on your farm or ranch business.
  • Comprehensive Financial Statements (Iowa State University) - An Excel based decision tool that combines Net Worth Statement, Net Farm Income Statement, Statement of Cash Flows, and Statement of Owner Equity to help managers evaluate the performance of their farm business.  Based off of publication C3-56: Farm Financial Statements.
 Farm Recordkeeping
  • TelFarm (Michigan State University) provides accounting and financial analysis support to farmers across the state of Michigan. 
  • The Farm Records Book for Management (Michigan State University) is a free workbook to keep track of your farm income and expenses. The book can be used in Excel, Google Sheets, or printed off to fill out by hand.
  • Production Record Accuracy Check Template (Michigan State University) is a free decision tool to help confirm your production records are accurate and complete.