By Andi Anderson
Fall marks an important time for farmers to evaluate the production year and prepare for the next. With uncertain market conditions and ever-changing environmental factors, making informed decisions is crucial.
Michigan State University (MSU) Extension offers several resources to assist farmers in these key areas.
Recordkeeping
Keeping accurate farm records is essential for understanding financial health. MSU’s TelFarm program supports various recordkeeping systems, including QuickBooks, PCMars, and free Farm Records Books, allowing farmers to maintain organized and up-to-date records. Reliable records help project cash flow and evaluate profitability.
Tax Planning
Now is the time to assess the financial outlook for the year and plan for tax season. MSU Extension provides tax planning services, helping farmers optimize tax payments and make strategic adjustments. Early evaluation of projected income can also identify opportunities to defer expenses or address any shortfalls.
Farm Financial Analysis
Conducting an annual financial analysis gives insight into growth opportunities and helps determine financial health. MSU’s TelFarm program offers business analysis services to help farmers prepare accurate balance sheets and cash flow statements, giving lenders a clear picture of farm operations.
Cost of Production
Understanding the true cost of production is critical. Farmers should review past production records and calculate break-even prices to cover input costs. MSU Extension offers tools and resources to help farmers track production costs and estimate year-end results.
Commodity Marketing
With fluctuating market prices, it’s important to have a marketing plan in place. MSU Extension recommends using a variety of marketing tools to help farmers manage risk and lock in profitable prices. Resources like the "Introduction to Grain Marketing" video series provide valuable insights.
Entity Reporting
Farmers with business entities like LLCs or corporations must report their information under the Corporate Transparency Act by Jan. 1, 2025. Failure to do so can result in penalties, so MSU Extension encourages farmers to prioritize this requirement.
Succession Planning
Farmers considering passing the operation to the next generation should start planning early. MSU Extension offers guidance on farm succession, ensuring a smooth transition and helping younger generations gain management experience.
Farm Stress
Farming can be stressful, especially during uncertain times. MSU Extension provides resources and support for managing farm stress, encouraging farmers to check in on their mental health and the well-being of those around them.
MSU Extension is here to help farmers navigate fall farm management decisions and set up for a successful year ahead.
Photo Credit: michigan-state-university-msu-extension
Categories: Michigan, Education