Financial Planning

Financial planning is essential for farms to ensure long-term viability and sustainability. It helps farmers manage cash flow, budget effectively, and make strategic investment decisions. By forecasting income and expenses, farmers can anticipate financial challenges and seize opportunities for growth. Financial planning also enables farms to secure financing, manage debt, and build resilience against market fluctuations and unforeseen expenses. With a solid financial plan in place, farmers can optimize resource allocation, improve profitability, and achieve their business goals while mitigating financial risks.

The Farm Financials Toolkit from Farm Management Canada helps organize your farm financials into logical, standardized categories of expenses that can then be used to calculate financial ratios. In turn, the ratios can be used across groups of farms to provide performance benchmarks. The Toolkit adheres to the new international standard for farm financial statements and uses accrual accounting rules. It is designed for farm accountants and farmers with intermediate to advanced accounting skills.

To better understand your market, the Farm Credit Canada (FCC) Market Prices and Information provides information on current market prices. Market prices are shown in U.S. dollars except for Canola (CAD).