4 Useful Tools to Evaluate Farm Profitability and Financial Performance Posted8/24/2023 11:15:25 AM https://finpack.umn.edu/news/4-useful-tools-to-evaluate-farm-profitability-and-f... Different FINPACK Credit Analysis tools are geared towards different information sources, especially related to the financial analysis of agricultural credits. The type and timing of data sources directs what path you should follow for credit analysis purposes. Posted byFINPACK Read More
Planning for Volatility Posted7/21/2023 10:57:49 AM https://finpack.umn.edu/news/planning-for-volatility/ In today’s marketplace, both your agricultural and commercial clients are continually facing volatility, with swings in income, expenses, and even interest rates. This fact makes assessing the risk associated with customer credit requests difficult to fully predict. Using shocks to debt coverage can be a useful tool during volatile times when completing a cash flow projection. Posted byFINPACK Read More
Free, Easy-to-use Tools for Developing & Interpreting Financial Statements Posted7/6/2023 10:17:53 AM https://finpack.umn.edu/news/free-easy-to-use-tools-for-developing-interpreting-... Farmers prefer to spend most of their time in the tractor or barn, and less time developing financial statements. Because of this, many farmers and ranchers struggle when preparing financial records for their businesses. To help with this, we created the Developing & Interpreting Your Financial Statements and Measures site, a hub for producers looking to improve their financial management skills. This free resource consists of two online courses which give producers information needed to become better financial managers of their business. Posted byFINPACK Read More
Cash Discrepancy Triggers Posted6/29/2023 10:37:02 AM https://finpack.umn.edu/news/cash-discrepancy-triggers/ Doing a thorough, accurate evaluation of a customer’s past financial performance is key to feeling confident when reviewing credit requests. However, in agriculture, the customer data received to perform this analysis is often incomplete. Therefore, cash discrepancies can leave you scratching your head when completing a financial or Schedule F cash to accrual analysis. Let’s look at cash discrepancies and what the culprit may be. Posted byFINPACK Read More
Why is Accrual-Adjusted Financial Information Valuable? Posted6/21/2023 2:50:03 PM https://finpack.umn.edu/news/why-is-accrual-adjusted-financial-information-valua... Oftentimes, cash is thought to be king. After all, at the end of the day, a business needs cash to meet its financial obligations. But cash generation is not a very informative metric of how a business is performing. Utilizing accrual-adjusted analysis can provide a more accurate view of the financial position and performance of a business. Posted byFINPACK Read More
Minnesota farmers’ bottom lines remain strong despite challenging year Posted6/9/2023 8:59:24 AM https://finpack.umn.edu/news/minnesota-farmers-bottom-lines-remain-strong-despit... Minnesota farms saw continued financial improvement in 2022, despite global uncertainty, inflationary pressures and lingering drought conditions across much of the state. Crop yields were above trendline even with the difficult growing conditions. With strong prices throughout the year for the state’s major commodities, Minnesota farms were able to improve their financial position in preparation for expected economic challenges in 2023. Posted byFINPACK Read More
Profitability & Cash Flow: What’s the Difference and Why is it Important? Posted6/2/2023 8:36:31 AM https://finpack.umn.edu/news/profitability-cash-flow-whats-the-difference-and-wh... Profitability and cash flow are two important business concepts that can be confused by many small business owners. Just because a business is profitable, doesn’t necessarily mean it cash flows. Alternatively, a business can have positive cash flows and not be profitable. Economist Pauline Van Nurden explores the differences. Posted byFINPACK Read More