By STACY CAMPBELL
Cottonwood Extension District
Farms face daily decisions about their operations including new equipment and crops, pricing and risk management strategies. Kansas State University’s Agricultural Economics Department offers its Finances and the Farm online course to help producers develop strong financial skills to make informed decisions that impact the farm's bottom line.
“The need to manage farm financials may be greater than ever before because of historically high input costs and lower commodity prices, creating uncertain profitability margins,” K-State extension farm economist Robin Reid said. “The Finances and the Farm online class provides education for managing financial risk of the farm business; focusing on good recordkeeping as the foundation, using those records to develop financial statements, conducting benchmarking and performance analysis on those statements, and then using that information to make management decisions.”
The course covers seven lessons: Recordkeeping, Balance Sheet, Income Statement, Enterprise Budgeting, Cash Flow, Managing Family Living Expenses, and Goal Setting. During the course, participants will:
Understand the structure of a balance sheet, income statement, enterprise budgets, and cash flow
Use a case farm to complete quizzes to check understanding and practice using these financial statements in a real-world setting
Two case farms available: Row Crops and Beef Cattle, and Vegetable, Egg and Honeybee Farm
Be prepared to use financial management techniques for their own operation
Set goals for their operation
Learn how to make changes to avoid financial difficulties
Taught by Reid and K-State farm analyst LaVell Winsor, the course was first launched in 2021. It has been recently updated to provide a more interactive learning experience for participants.
Participants watch short videos, go through an interactive review of the content, do an interactive activity, and then work through a quiz where they are inputting numbers into a financial statement and doing performance analysis, so they are able to apply what they are learning in the videos. Participants are also then given resources such as paper sheets and Excel documents to develop financial statements for their own operations. The course is self-paced, which means participants can take up to six months to complete the material, though it is recommended that participants make a schedule to complete it in 2-4 weeks.
“This course is designed with the learner in mind, with the convenience of completing this course at their own pace, from their home or office,” Winsor said.
The cost is $100 (education only), or $300 if the participant wishes to receive Farm Service Agency borrower’s training financial credit. It is approved for participants to receive FSA Borrower’s Training Financial Credits for Kansas, Colorado, Illinois, Iowa, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, and Wyoming. Coursework will be graded, and a certificate will be provided upon successful completion of the final exam. Registration is available online https://www.agmanager.info/events/finances-and-farm-online-class
Previous participants have appreciated the breadth of information learned from the program.
“The class was able to offer a fairly wide variety of options for most operations on how to manage finances. I felt that all the information was communicated accurately and clearly,” a previous participant said. Another said, “This was so good. Having not owned a farm for a decade, and now going through approval to finally find a smaller farm, I only wish I had known about this course prior to completing my USDA paperwork and financials. It is that imperative, and the $300 cost is nominal compared to the amount of information received, the resources and reference, and of course the templates provided. I am thoroughly impressed and so thankful this program is out there!”
More information is also available by contacting Reid by email, [email protected], or 785-532-0964