Progress 09/01/16 to 08/31/18
Outputs
Target Audience:The target audience of this project are Tennessee crops and livestock producers with the goal of developing a comprehensive one-on-one farm financial analysis for their farm. Additionally, we will distribute information to several interested stakeholders such as individuals at Farm Credit Mid-America and United State Department of Agriculture Farm Service Agency to help guide their lending decisions and educate agricultural lenders. Overall, producers and lenders have been positive towards the possibility of benchmarking their financial data with their peers. In the second year of launching a benchmarking program in Tennessee, we continue makeprogress toward having a strong benchmarking program. However, as indicated in the report last year,progress has been slower than anticipated. Werealized a successful benchmarking program will take time to build. The primary main challenge is helping producers develop good financial records for the one-on-one farm financial analysis. Very few producers have financial records to conduct a comprehensive financial analysis by makingaccrual adjustments to the income state. University of Minnesota Center of Farm Financial Management has been very supportive of our progress and have helped guide steps towards developing this program. In thefirst year, weadjusted our aim to complete a benchmarking report to focusing on improving financial records for producers. This aim continued in year two. This has set back our schedule for completing all our objectives, but we believe this will ensure quality data is being included in the FINBIN database.We are focusing oncompletinga few high quality financial analyses.This approach will help us in the long-run to develop a respectable and desirable benchmarking program. During the past year, a large number ofproducers were personally contacted about the project has increased. One exciting stride has been with Tennessee dairy producers this year. The dairy industry in Tennessee has been suffering low milk prices. We have worked very closely with diaries this past year to help them track expenses and record financial data.Many diaries have expressed a lot of interest in continuing to conduct more comprehensive financial analysis to improve their operations. We hope that in the near future we will be able to provide these producers with a benchmarking report for diary. Furthermore, two publications on balance sheets and income statements are in the final review process before being made publically available. One publication, "An Introduction to Basic Farm Financial Statements: Balance Sheet" provides a general overview of the balance sheet and how to use it for a farm business. The second publication, "An Introduction to Basic Farm Financial Statements: Income Statement" provides a general overview of the income statement and how to use it for a farm business. These publications will be a great educational tool in helping producers start collecting more complete financial data. They will also provide producers with a better understanding of how financial analysis can help them better manage their farming operation. All of these publications are in the final stages of internal review and will be published on the Farm Gauge website very soon. A graduate student developed three case studies to be used in the class room and with producers. FINPACK was used to conduct a comprehensive financial analysis for these case studies and they will be published to help producers see the benefits of using these reports. Changes/Problems:We encountered a major problem in 2017 with producers' lack of good (accrual adjusted) financial records. The caused us to adjust our aim from completing a benchmarking report to focusing on improving financial records for producers. This has set back our schedule for completing all our objectives in year one, but we believe this will ensure quality data is being included in the FINBIN database. Also, this means the number of completed financial analyses of high quality will not be as high as we initially thought. This approach will help us in the long-run to develop a respectable and desirable benchmarking program. In our discussions with the University of Minnesota Center of Farm Financial Management faculty, we have identified ways to improve data quality. They have been very helpful in our efforts to developing a benchmarking program. The biggest challenge in the upcoming year will be educating producers on record keeping methods that are necessary for a benchmarking analysis. What opportunities for training and professional development has the project provided?David Bilderback, a Farm Management Specialist (FMS), and myself attended the National Benchmarking Project Leaders Meeting at the University of Minnesota on November 28th and 29th of 2017. This meeting helped us better understand the best ways to implement a benchmarking program in Tennessee. Faculty and staff from several institutions provided us with helpful input on how to address challenges. With the approval of USDA, travel funds were used to send three of the more recently hired Farm Management Specialists in the MANAGE program to Minnesota to shadow more experience FBM specialist. The purpose of these trips were to shadow more experienced FBM specialists and help these newer Farm Management Specialists at University of Tennessee build on their program. These were excellent experiences for these individuals. For Iris Cui stated, "I gained some knowledge on how to use FINPACK and what information would benefit different individuals. Have a marketing plan and project cash flow would be very crucial. I plan to practice FINFLOW with some of my producers and planning to talk to local FSAs on referrals. And hoping there will be more Tennessee producers willing to participate in benchmarking." Iris was able to make two farm visits when financial data was being recorded. The second farm visit they compared financial ratios to the benchmark report from the whole state. This farmer appreciated to see where he was at comparing to his neighbors. We plan on sending more of the University of Tennessee Farm Management Specialists to Minnesota for shadowing and professional development. How have the results been disseminated to communities of interest?
Nothing Reported
What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts
What was accomplished under these goals?
Goals and Objectives The specific goals and objectives for this proposal are stated below. We have provided discussion on our achievements and work to be done in the upcoming year to meet these goals. 1. Gather farm financial data from individual farms across Tennessee using FINPACK software The nine Area Farm Management Specialist worked with hundreds of producers to help with record keeping, financial planning, and financial analysis of their farm operation. During these meetings, financial data was gathered for these farms using FINPACK. Several farms have started developing balance sheets, which are a key first step for performing a comprehensive financial analysis. There has been substantial head way with the dairy producers in the state. These producers are very interested in benchmarking and we will focus on this group in 2019. 2. Expand the national FINBIN farm financial benchmarking database; 3. Establish and generate benchmark reports for agricultural producers by commodity and region using FINBIN; 4. Extend benchmark reports to agricultural producers across the state using presentations, workshops, video, and print and social media; We are unfortunately not in a place in 2018 to add data to the FINBIN database and conduct a benchmarking report. As previously stated in last year's report, we have refocused on primarily improving producers' record keeping and data collection practices. The quality of the financial data would restrict the Tennessee data to be included in the FINBIN database. We plan on completing these objective in the near future. This funding has been pivotal to get this program up and running. There is full confidence that we will accomplish these goals, but unfortunately they will accomplished outside the parameters of the grant. 5.Develop, improve, and disseminate software to improve production financial record keeping by producers; The graduate student wrote and develop the financial data input forms. This student also used FINPACK to develop three case studies for educational purposes. The undergraduate interns developed publications for producers to help them start developing an income statement and balance sheet. 6. Utilize data in conducting applied research on livestock and crop risk management strategies and production decisions to improve future profitability and competitiveness; Since financial data was so limited and poor in 2018, no risk analysis or research was conducted on these data. The graduate student did write and develop the financial data input forms as well as write part of the case study. He also assisted in developing several case studies to be used to show the benefits from using these analyses. 7. Enhance classroom teaching in Farm Business Management (Agricultural and Resource Economics 342) and Agricultural Finance (Agricultural and Resource Economics 412) by using the FINBIN database; and Benchmarking was taught and discussed in the Farm Business Management (Agricultural and Resource Economics 342). Benchmarking reports from the FINBIN database were discussed in class. Students were taught how to conduct a comprehensive financial analysis for a farm operation. They used benchmarking reports to interpret the financial health of the farm as well as identify financial strengths and weaknesses of the farm. 8. Expose undergraduate and graduate students to future career opportunities in Extension. Nathaniel Bruce, the graduate student funded by this project, has recently started a job as a Caswell County Extension Agents for Agriculture and Natural Resources in North Carolina. This project affirmed his desire to have a career in Extension because he experienced the potential impact of an Extension program on a farm family. We hired two undergraduate interns to developed educational publications for this project.
Publications
- Type:
Other
Status:
Awaiting Publication
Year Published:
2018
Citation:
Campbell, V., S.A., Smith, C.N. Boyer, and A.P. Griffith. 2018. An Introduction to Basic Farm Financial Statements: Balance Sheet. University of Tennessee Extension Publication
- Type:
Other
Status:
Awaiting Publication
Year Published:
2018
Citation:
Best, S., S.A., Smith, C.N. Boyer, and A.P. Griffith. 2018. An Introduction to Basic Farm Financial Statements: Income Statement. University of Tennessee Extension Publication
- Type:
Other
Status:
Under Review
Year Published:
2018
Citation:
Bruce, N., S. Best, S.A., Smith, C.N. Boyer, and A.P. Griffith. 2018. Small Row Crop and Beef Cattle Farm Case Study: Sulfur Fork Farms. University of Tennessee Extension Publication
- Type:
Other
Status:
Under Review
Year Published:
2018
Citation:
Bruce, N., S. Best, S.A., Smith, C.N. Boyer, and A.P. Griffith. 2018. Small Soybean and Beef Cattle Farm Case Study: Jackson Farms. University of Tennessee Extension Publication
- Type:
Other
Status:
Under Review
Year Published:
2018
Citation:
Bruce, N., S. Best, S.A., Smith, C.N. Boyer, and A.P. Griffith. 2018. Row Crop Operation Case Study: Vaughn Farms. University of Tennessee Extension Publication
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Progress 09/01/16 to 08/31/17
Outputs
Target Audience:The target audience of this project are Tennessee crops and livestock producers with the goal of developing a comprehensive one-on-one farm financial analysis for their farm. Along with producers, we will distribute information to several interested stakeholders such as lenders at Farm Credit Mid-America and United State Department of Agriculture Farm Service Agency to help guide their lending decisions and educate agricultural lenders. In this first year of launching a benchmarking program in Tennessee, we have had made big strides but realize a successful benchmarking program will take time to build. Many producers have been positive towards the possibility of benchmarking their financial data with their peers. However, the main challenge that we have confronted is producers' lack of good (accrual adjusted) financial records. This first year, we have adjusted our aim from complete a benchmarking report to focusing on improving financial records for producers. This has set back our schedule for completing all our objectives in year one, but we believe this will ensure quality data is being included in the FINBIN database. During the past year, we estimate that over 1,500 producers were personally contacted about the project. Many more were also contacted through social media and press releases. Some notable accomplishments including working with 208 producers on improving their financial record keeping, working with 72producers to develop an opening balance sheets of their farm business, and working with 114 producers doing financial analysis and budget analysis. We made presentations to hundreds of agricultural lenders from various banks across Tennessee that were certified FSA lenders. These presentations covered the overview of the project and how they can be helpful in getting this project launched. Lenders were provided promotion material to provide to producers. Changes/Problems:We encountered a problem in 2017 with producers' lack of good (accrual adjusted) financial records. We adjusted our aim from completinga benchmarking report to focusing on improving financial records for producers. This has set back our schedule for completing all our objectives in year one, but we believe this will ensure quality data is being included in the FINBIN database. Also, this means the number of completed financial analyses of high quality will not be as high as we initially thought. We have near our focus on completing a smaller number of high quality financial analyses of farms. This approach will help us in the long-run to develop a respectable and desirable benchmarking program.In our discussions with theUniversity of Minnesota Center of Farm Financial Management faculty, we have identified ways to improve data quality. They have been very helpful in our efforts to developing a benchmarking program. The biggest challenge in the upcoming year will be educating producers on record keeping methods that are necessary for a benchmarking analysis. What opportunities for training and professional development has the project provided?On October 24th and 25th of 2016, Dale Nordquist and Curtis Mahnken from the University of Minnesota Center of Farm Financial Management provided training on FINAN to all eightArea Farm Management Specialists as well as all PIBoyer and Co-PIs Smith and Griffith inMurfreesboro, Tennessee. They went through a full day of doing a complete financial analysis using FINPACK. Co-PI, Aaron Smith and myself attended the National Benchmarking Project Leaders Meeting at the University of Minnesota on November 29th and 30th of 2016. This meeting helped us better understand the best ways to implement a benchmarking program in Tennessee. Faculty and staff from several institutions provided us with helpful input on how to address challenges. We made presentations to hundreds of agricultural lenders across Tennessee that were certified FSA lenders. These presentations covered the overview of the project and how they can be helpful in getting this project launched. Lenders were provided promotion material to provide to producers. Below shows the citations for each training. Boyer, C.N. "Farm Gauge: Creating a Tennessee Benchmarking Database." USDA FSA Tennessee Lender Training, Jackson, TN. January 24, 2017. Boyer, C.N. "Farm Gauge: Creating a Tennessee Benchmarking Database." USDA FSA Tennessee Lender Training, Crossville, TN. January 26, 2017. Morris, D. "Farm Gauge: Creating a Tennessee Benchmarking Database." Farm Credit-Mid America Regional Advisory Council Meeting, Dresden, TN, March 24, 2017. We made presentations to nearly all 95 County Extension Agents for Agriculture and Natural Resources across Tennessee. These presentations covered the overview of the project and how they can be helpful in getting this project launched. Agents were provided promotional material to provide to producers. Boyer, C.N. "Farm Financial Management: Creating a Tennessee Benchmarking Database." Eastern Tennessee Ag Econ Market Outlook In-service, Knoxville, TN. November 1, 2016. Boyer, C.N. "Farm Financial Management: Creating a Tennessee Benchmarking Database." Central Tennessee Ag Econ Market Outlook In-service, Murfreesboro, TN. November 2, 2016. Boyer, C.N. "Farm Financial Management: Creating a Tennessee Benchmarking Database." Western Tennessee Ag Econ Market Outlook In-service, Jackson, TN. November 3, 2016. Boyer, C.N. "Beef Economic Research Project in UTIA." Beef and Forage Center, Knoxville, TN. December 13, 2016. How have the results been disseminated to communities of interest?
Nothing Reported
What do you plan to do during the next reporting period to accomplish the goals?In 2018, we will work hard to complete objectives two, three, four, and six. Our discussion with faculty and Extension Specialists at the University of Minnesota Center of Farm Financial Management have provided us great insight into improving financial record keeping for producers. They have been very patient this year and have reinforced that starting and developing a high quality benchmarking program will take time. We plan on continuing to use the grant funding to support farm visits to conduct one-on-one financial analysis and data collection.
Impacts
What was accomplished under these goals?
Below we show the specific goals and objectives we stated in the proposal of this project. We have provided discussion on our achievements and work to be done in the upcoming year to meet these goals. 1. Gather farm financial data from individual farms across Tennessee using FINPACK software The eight Area Farm Management Specialist reported 322 contacts with producers to help with record keeping, financial planning, and financial analysis of their farm operation. This number is expected to grow in 2018 with the hiring of a ninth Area Farm Management Specialist. 2. Expand the national FINBIN farm financial benchmarking database; 3. Establish and generate benchmark reports for agricultural producers by commodity and region using FINBIN; 4. Extend benchmark reports to agricultural producers across the state using presentations, workshops, video, and print and social media; We are unfortunately not in a place in 2017 to add data to the FINBIN database and conduct a benchmarking report. As previously stated, this first year, we have adjusted our aim to complete a benchmarking report to focusing on improving financial records for producers. because ofproducers' lack of good (accrual adjusted) financial records.The quality of the financial data we recieved this year would berestricted from beingincluded in the FINBIN database.This has set back our schedule for completing all our objectives in year one, but we believe this will ensure quality data is being included in the FINBIN database. 5. Develop, improve, and disseminate software to improve production financial record keeping by producers; The graduate student Nathaniel Bruce wrote and develop the financial data input forms. The undergraduate interns developed publications for producers to help them start developing an income statement and balance sheet. Furthermore, we have developed balance sheet and income statement spreadsheets to help producers' record financial data. The spreadsheets will allow producers to enter cash sales and expenses throughout the year as well as record any changes in their assets and liabilities. Finally, Area Farm Management Specialists helped 208producers set up improved record keeping systems. 6. Utilize data in conducting applied research on livestock and crop risk management strategies and production decisions to improve future profitability and competitiveness; Since financial data was so limited and poor in 2017, no risk analysis or research was conducted on these data. The graduate student Nathaniel Bruce did write and develop the financial data input forms as well as write part of the case study. 7. Enhance classroom teaching in Farm Business Management (Agricultural and Resource Economics 342) and Agricultural Finance (Agricultural and Resource Economics 412) by using the FINBIN database; and Benchmarking was taught and discussed in the Farm Business Management (Agricultural and Resource Economics 342). Benchmarking reports from the FINBIN database were discussed in class. Students were taught how to conduct a comprehensive financial analysis for a farm operation. They used benchmarking reports to interpret the financial health of the farm as well as identify financial strengths and weaknesses of the farm. 8. Expose undergraduate and graduate students to future career opportunities in Extension. ? Nathaniel Bruce, the graduate student funded by this project, has recently started a job as a Caswell County Extension Agents for Agriculture and Natural Resources in North Carolina. This project affirmed his desire to have a career in Extension because he experienced the potential impact of an Extension program on a farm family. We hired two undergraduate interns to developed educational publications for this project.
Publications
- Type:
Other
Status:
Under Review
Year Published:
2017
Citation:
Campbell, V., S.A., Smith, C.N. Boyer, and A.P. Griffith. 2017. An Introduction to Basic Farm Financial Statements: Balance Sheet. University of Tennessee Extension Publication
- Type:
Other
Status:
Under Review
Year Published:
2017
Citation:
Best, S., S.A., Smith, C.N. Boyer, and A.P. Griffith. 2017. An Introduction to Basic Farm Financial Statements: Income Statement. University of Tennessee Extension Publication
- Type:
Websites
Status:
Other
Year Published:
2016
Citation:
Boyer, C.N., S.A. Smith, T. Johnson. 2016. Link: farmgauge.utk.edu
- Type:
Other
Status:
Under Review
Year Published:
2017
Citation:
Best, S., V. Campbell, S.A., Smith, C.N. Boyer, and A.P. Griffith. 2017. Row Crop Operation Case Study: Vaughn Farms. University of Tennessee Extension Publication
- Type:
Other
Status:
Other
Year Published:
2017
Citation:
Campbell, V., S. Best, S.A., Smith, C.N. Boyer, and A.P. Griffith. 2017. Cow-Calf Operation Case Study: Single G Angus Farms. University of Tennessee Extension Publication
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