BALANCE SHEET/ BUDGETING CLINICS
Proposed by: Dennis M Kauppila
Presenter: Kauppila, D.M., Agriculture & Farm Business Management Specialist, University Of Vermont Extension, St. Johnsbury, VT 05819
Most farmers are in business because they like to produce, not because they like financial paperwork. Lenders require farmers to have a current balance sheet, operating statement, and cash flow budget. In 1998, I began Balance Sheet/ Budgeting Clinics to work with farmers one-on-one to create financial statements, both to satisfy their lenders, and to help them better understand their finances. Since 1998, I have worked with 216 people from 165 farms in these clinics. Some farmers have come every year, some have attended just once. Many arrive with questions that they want to discuss: expansions, new investments, how to cut costs, refinancing, exiting, farm transfers… In 2009, I worked with 20 people from 10 farms. We created 9 budgets, 3 balance sheets, and I discussed issues with 2 farmers. All who completed the evaluation said they understood their finances better. Six used the financial statements from last year with a family member, 5 used them with their lender, 5 made changes on their farms after working with me. Comments included: “this is one of the best things we do each year; helps us to see the overall picture; changed my goals; yearly projections helpful with any decisions that need to be made; discussed it with my husband.”