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Preparation
Read "Measuring
and Analyzing Farm Financial Performance" (EC-712).
Review worksheets 1 and 2 on the financial assessment spreadsheet.
Review “How Do I
get started?” lecture.
Review MBC Farms case study.
Purpose of Lecture
This lecture conducts a financial assessment of a farm
business by illustrating the calculations needed to produce
an accurate income measure. It begins with the most basic
financial documents a farm business would have, balance
sheets and IRS form Schedule F and form 4797, and converts
them to useful financial assessment tools, which are then
assessed.
Structure of Presentation
The source documents are reviewed then the calculations
for the MBC Farms case problem are used, and its performance
is assessed. The lecture ends with ways to improve performance.
Other References
“Responding to Financial Stress: What are the Options?”
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