Top 5 Cash Discrepancy Culprits

Top 5 Reasons for Cash DiscrepanciesThere are always tricky situations that leave you scratching your head on how to get a customer’s year-end analysis balanced when it comes to cash in and cash out.  Whether you are using the Schedule F Cash to Accrual Analysis or the Financial Analysis (FINAN) there are some common culprits to track down cash discrepancies in these tools.
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Longevity of Legacy Cash Flow Plans

Longevity of Legacy Cash Flow PlansThe option to create an annual plan or monthly cash flow plan using the Legacy Projection tools in FINPACK will remain for the next year (or two).  No official sunset date has been set at this time.  If you are a seasoned user that is very comfortable with the Legacy Projection tools, feel free to continue using them for this renewal season.    [Read more…]

Farm Incomes Take Another Dip in 2017

Farm Income Takes a Dip in 2017

Minnesota farmers experienced their fifth consecutive year of low profitability in 2017. The median farm earned $28,551, down slightly from just over $36,000 in 2016.  Declines in farm income were largely driven by low profits and losses for cash crop farms, while livestock farms, in general, had a better year.  With average investment of over $2 million, farms earned a 2.2% return on investment. Across all farm types, almost one-third of farms lost net worth in 2017.

Those are among key findings in the annual farm income analysis conducted by University of Minnesota Extension and Minnesota State in collaboration with the FINPACK Team and the Center for Farm Financial Management (CFFM). The analysis used data from 2,164 participants in the Minnesota State Farm Business Management programs and 104 members of the Southwest Minnesota Farm Business Management Association. Participating producers represent approximately 10 percent of commercial farmers in Minnesota.  CFFM’s work with projects like this provide the benchmarking metrics used in FINPACK.  The full FINBIN report on MN Farm Finances can be accessed here[Read more…]

You Need a Marketing Plan!

The FINPACK team at the U of MN is fortunate to have a broad range of ag expertise. Ed Usset, our Grain Marketing Economist, developed a time-tested approach to establishing commodity marketing plans which have hit home with a lot of producers. Commodity marketing is a big, and often emotional, issue for producers.  We also recognize its importance to your work with farmers.

Margins are tight—Ed’s message of “finding the dime(s)” is imperative.  Planting season will arrive soon. Do your customers have a pre-harvest marketing plan for their 2018 crop? Let Ed show you his plan and suggest a few ways it can be adapted by your farming customers.   [Read more…]

2018 National School for Experienced Ag Bankers

2018 National School for Experienced Ag BankersThe FINPACK team wants to alert you to an outstanding educational opportunity – the 2018 National School for Experienced Ag Bankers, being held June 25 – 29 at Black Hills State University in Spearfish, SD. CFFM has had a long relationship with this school, our staff is as part of the teaching team, along with a talented group of seasoned ag bankers.

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Save the Date! FINPACK Lender’s Conference 2018

Mark your calendar for the 2018 FINPACK Lender’s Conference.  This year’s event will be held on December 11 and 12 at the Radisson Blu Mall of America in Bloomington, Minnesota. 

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Using FINPACK Lite to Collect Customer Balance Sheets

To complete a credit analysis on a current or prospective borrower, an accurate balance sheet is crucial.  Actually getting balance sheet information from a customer is even more crucial.  Having a streamlined way to get balance sheets saves both the bank and the borrower time.  FINPACK Lite, a free balance sheet only version of FINPACK available to bank customers, makes collecting balance sheets easier.  As a Lender with FINPACK, you have the rights to distribute FINPACK Lite to your customers.

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Why Do Accrual Adjustments Matter?

Why Accrual credit analysis, FINPACK AgricultureCash is king! Every business needs cash to meet its financial obligations. But how much cash a farm generates is not a very good indicator of how the business is performing.  One of the main reasons is cash basis taxation. The right to file taxes based on cash rather than accrual income gives farms tremendous flexibility to manage taxable income. The result is that very high performing farms and farms that are struggling financially often have similar bottom lines on their Schedule F’s. [Read more…]

FINPACK Help

Press the F1 Key for Help in FINPACKWe know users sometimes have questions as they work in FINPACK.  Help is readily available and easily accessible wherever you are at in FINPACK.  Access Help by:

 

  • F1 – pressing F1 in FINPACK will take you directly to the related Help topic. This can be done in data entry or when using preview in financial tools. 

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The Value of a Cost Balance Sheet

Cost balance sheets value assets at purchase price less accumulated depreciation.  This accumulated depreciation can be done using tax or management depreciation methods. Management depreciation differs from tax depreciation by using the economic or useful life of the asset for depreciation calculations.

Using cost balance sheets allow lenders to better monitor the financial performance of the business over time.  With cost balance sheets, net worth growth comes from business retained earnings.  Cost value balance sheets do not have market valuation changes affecting the net worth of the business.  Hence true business performance is measured by the cost balance sheet.

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