The Minnesota Department of Agriculture has put out a management and finances worksheet for organic farmers to test where they stand, entitled “Organic Farmers: Steps to Success.” The tool first takes you through a series of questions on management skills and personal qualities needed to run the business so that you can see what needs improvement. Under the financial side, it breaks down the details of the business’s financial performance, production levels, and financial ratios (on liquidity, solvency, etc.) under headings of “current,” “benchmark,” and “goal.” You can find benchmark data from a database run by the University of Minnesota for any particular farm type.
Feeling like you have got a bit of extra time this winter? Taking the time to scrutinize your financials is the best way to make sure your business is sustainable, and to see what areas you need to focus on in the future. Take a look at it now – this is the perfect resource for your New Year’s resolutions!