Farm Management Minute: It can be difficult to sort through the numbers

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Farm Forum

Farmers and Ranchers these days are bombarded with information they can use to help increase the bottom line of their operations. Most of it comes from the technologies they employ to help keep records on production and/or expenses. The problem is most of us don’t know what to do with the data once we have compiled it. Knowing what these numbers mean and how to use them to make management decisions should be the next step on your list. Yearly trends of all the separate categories you keep track of is a great start and can shed some light on a problem or a benefit to your bottom line. They will help you make good management decisions for the future and help establish a foundation to set some goals leading to higher profits down the road. Also, knowing how you measure up to the rest of your agricultural sector is also important.

Drawing together all of these numbers into a yearly financial analysis is very important to your operation. We here at the Center for Farm/Ranch management help our producers compile and analyze all of these numbers. Then they are compared to benchmarks throughout the state, region, or the whole USA. If you would like more information about what we can help you with contact the SD Center for Farm/Ranch Management and we will get your questions answered.