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- Ag Business Management Home
Alabama Farm Business Management
and Financial Analysis Program
The Farm Analysis Program:
- A cooperative educational-service program to assist farmers with improved management decision-making.
- Available to farmers in 45 of Alabama's 67 counties, plus 6 counties in the Florida panhandle.
- Provides help in developing business and family records, and offering computer assisted record processing options (on-farm or service center).
- Provides financial and production business analysis reports.
- Provides experienced specialist to help interpret analytical reports and offer counsel on management problems and opportunities.
- Provides assistance with income tax and estate tax planning and management.
Better Financial Management Provides Improved Farm Income and Greater Security For Your Family. Cooperators receive:
A COMPLETE RECORD OF THE FARM BUSINESSEach farmer maintains a complete production and financial record of the farm business. Receipts, expenses, inventories and capital accounts, along with crop and livestock production records, provide information for the analytical reports. At the end of the accounting period, totals are transferred into a computer program that summarizes, analyzes, and print the reports.
COMPUTERIZED BUSINESS REPORTS
- Income Statement shows farm profitability and the amount of money available for family living and new investments.
- Cash Flow helps plan the availability of funds to meet loan repayment schedules, operating expenses, and family living needs.
- Net Worth is used to evaluate risk and financial progress.
- Comparative Analysis compares returns and cost structures of the farm and enterprises with similar farms.
- Enterprise and Trend Reports are provided as requested and needed by the cooperator.
COUNSEL WITH A SPECIALISTAn experienced farm analysis specialist edits the record information and supervises the preparation of all reports. The specialist meets regularly with each cooperator to help interpret analysis reports and counsel on financial management problems and opportunities. Present cooperators say that the opportunity to discuss management decisions with an experienced specialist who understands their situation and spends time working with commercial farmers is of tremendous value to them.
NEWSLETTERS AND PUBLICATIONSSpecialists prepare and distribute, in cooperation with the Alabama Cooperative Extension System and the Department of Agricultural Economics and Rural Sociology of Auburn University, newsletters offering timely management tips, latest information on state and federal tax regulations, and useful farm planning information.
WHY COOPERATORS LIKE THIS PROGRAMAbout 95 percent of the cooperators in this program maintain their enrollment from year to year. Here are some of the reasons:
- "You learn more about your business. The comparative analysis report provides a comprehensive review of your total business. You learn about its strong points and how you can use them to retain profits in your business."
- "You gain confidence in making and implementing better financial management decisions."
- "You enjoy better living. By studying your analysis reports, you can organize your business with a better chance of attaining your business and family goals."
ITS A YEAR-ROUND PROGRAM
- January—The specialist meets with the farmer and checks your records to see that they are complete. The records of all cooperators are then summarized. Assistance is provided for accurate completion of required forms, such as W2 statements, 1099 forms, 943 Annual Statement, etc.
- February–March—Financial reports of the year's business are returned to each cooperator: sources and uses of funds summary, beginning and end-of-year net worth statement, end of year balance sheet, business analysis sheet, income statement/profit-loss statement, and farm enterprise reports. Information required to file income tax is also provided: Sch. F worksheet, Detailed Depreciation Schedule, Form 4797 worksheet, and Form 4562 summary.
- April–June—Each cooperator meets individually with the specialist (either in his office or on the farm) to discuss the financial and business analysis reports and to review major management decisions.
- July–August–September—The specialist schedules a visit to each cooperating farm. In addition to editing the record-keeping activities, the visit provides an opportunity to inspect progress on your farm and to continue planning for next year's business operation.
- October–November–December—Tax planning assistance is provided. Current management problems and opportunities, including tax law changes are looked at as needed.
LOCAL ASSOCIATIONSAlabama has four Farm Analysis Associations, organized as not-for profit corporations which co-sponsor the program with the Alabama Cooperative Extension System and in cooperation with the Department of Agricultural Economics and Rural Sociology at Auburn University. These local associations are directed by boards of directors that are elected by and from farmers participating in the Association's activities. These boards provide input into the activities and policies of each association including setting membership fees for participation in the association. This money is used to pay the direct costs each Association incurs and to make annual grants to the Alabama Cooperative Extension System. The grants from the local associations defray a portion of the cost incurred by the Alabama Cooperative Extension as it delivers this intensive one-on-one program to farmers in the state.
STATE ASSOCIATIONThe Alabama Farm Analysis Association is a separate not-for profit corporation, made up of representatives from each of the four local associations. The major purpose of the state Association is to facilitate communication between the four local associations concerning future needs and directions to be explored.
WHAT DOES ALL THIS COST?The exact cost to an individual farmer depends on the size of the farm, the volume of livestock produced, and the special services requested. Each cooperator is advised to enroll for more than one year in order to receive the maximum benefits of participation.
*For more information:For further information, contact the local County Extension Agent, or the Extension Specialist listed below that is located nearest your place of business:
- Robert Page, Extension Economist-Farm Business Management
13112 Alabama Highway 68, Crossville, AL 35962
Phone: 256-528-7133 E-mail:firstname.lastname@example.org
- Deacue Fields, Extension Specialist & Associate Professor: Farm Analysis Coordinator
100-B Comer Hall, Auburn University, AL 36849
Phone: 334-844-4931 E-mail: email@example.com
South Alabama and Florida Panhandle
- Stephen G. Brown, Extension Economist-Farm Business Management
175 Ag-Science Drive, Suite D, Brewton, AL 36426-8149
Phone: 334-867-7760 E-mail: firstname.lastname@example.org