Purpose – The purpose of this paper is to discuss the feasibility of preparing a statement of owner equity (SOE) and statement of cash flows (SOCF) for the agricultural sector. Also, the use of the Agricultural Resource Management Survey (ARMS) to collect data needed to supplement the US farm...

Purpose – The purpose of this paper is to discuss the feasibility of preparing a statement of owner equity (SOE) and statement of cash flows (SOCF) for the agricultural sector. Also, the use of the Agricultural Resource Management Survey (ARMS) to collect data needed to supplement the US farm...

It is widely accepted that net farmincome reported on an accrual-adjustedincome statement is a moreappropriate profitability measurethan net farm income reported onSchedule F of the federal tax return,which is prepared using cash basisaccounting. However, a commonpractice among agricultural...

Harsh and inaccurately forecasted economic conditions placed stresses on the Farm Credit System (FCS) and caused the organization to incur losses beginning in the mid-1980s. In recent years, the FCS has been neither more nor less able to avoid problem farm loans than commercial banks. But,...

It is widely accepted that net farm income reported on an accrual-adjusted income statement is a more appropriate profitability measure than net farm income reported on Schedule F of the federal tax return, which is prepared using cash basis accounting. However, a common practice among...

Farm enterprise analysis is a term that has traditionally been used to describe the process of determining costs associated with farm business enterprises and enterprise profitability. A key challenge to those who would know their costs has been the lack of guidance on cost accounting principles...

Large capital requirements needed for many agricultural businesses to operate result in many relying on borrowed funds. Fixed repayment commitments combined with a leveraged financial condition and volatile commodity prices result in increased emphasis on managing risks. Deterioration in the...

Many agricultural producers purchased capital items the past few years and some used borrowed funds to finance the purchase. The principal payments on those term loans are paid from net farm income. This paper discusses the sensitivity of farm loan repayment capacity to changes in the gross...

The Purdue Farm Financial Analysis Spreadsheet originally introduced in 1998 has been updated to include the additional financial measures recommended by the Farm Financial Standards Council; EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), working capital to gross...