Financial
Farm financing is critical to the success of any agricultural business operation. In this section, uncover information on agribusiness finance management, including budgeting, financial life skills, planning, value-added production, and pricing. Learn valuable tips and gain access to the FarmSense workshop and online course.
Agribusiness Budgeting
In agriculture, budgets are an important part of setting financial goals and measuring performance. Enterprise and partial budgets are two of the more valuable farmers finance tools utilized to establish a foundation for analyzing various management decisions.
Enterprise budgets refer to the estimates of receipts, costs, and profits from agricultural production. They are often used to create whole-farm budgets to estimate the profitability and resource requirements for a farm plan. Enterprise budgeting is also used in projected cash flow budgets, as well as during the process of selecting and analyzing the enterprises produced on the farm.
Partial budgeting serves as a planning and decision-making framework that is typically used to compare alternative management decisions’ costs and benefits. It focuses on the changes in income and expenses resulting from implementing an alternative. Learn how to create a partial budget and analyze its results during the Partial Budgeting online course.
Join Penn State Extension’s FarmSense workshop for detailed information on financial statements such as the balance sheet, income statement, and cash flow statement. Participants will further be provided with practical knowledge on organizing and using financial records to make informed agribusiness finance decisions. Additional resources to explore include the Penn State Farm Management Handbook and the Pennsylvania Farm Account Book.
Business Financing: Farm Loans and Farm Grants
Careful planning, along with understanding the financial resources available, is fundamental for successful farm financing. Numerous commercial lenders loan money to farmers and other agribusiness professionals who wish to fund an operation. To obtain a loan, it is generally required to develop a relationship with the bank and provide comprehensive documentation showing your ability to repay the loan.
When applying for agriculture loans, small-scale and part-time farmers can improve their chances for success by following sound management practices. These include budgeting cash flows, preparing financial statements in advance, and treating the lender as a valuable asset.
Many first-time borrowers, as well as agricultural operations that have been rejected by other lenders, are directed to the Farm Service Agency (FSA). The FSA has several different farm loan programs, offering support for land purchases and operating costs. The agency can also guarantee loans made by other institutions.
Farm grants are available; however, few do not require a research component. It is worth noting that careful research is needed to determine whether the grants listed are awarding funds at the time. Remember to contact the granting agency before completing the application process.
Farmers and growers can also apply for a research grant via the Northeast Sustainable Agriculture Research and Education (NE-SARE) program. The program provides assistance and sustainable agriculture grants for farmers wishing to initiate on-farm research.
- Webinars
Free
Farm Taxes: Special Rules for Farm Income
When 01/28/2025Length 1 hourEvent Format Virtual | LiveLearn what qualifies as farm income, what doesn’t, and why it matters. This webinar will help farm-based businesses ensure accurate reporting and take advantage of special benefits for farmers. - Webinars
Free
Farm Taxes: How Business Entities are Taxed
When 01/21/2025Length 1 hourEvent Format Virtual | LiveLearn how farm business income is reported on individual tax returns, covering relevant forms and federal filing requirements for business entities in a free, one-hour webinar. - Webinars
Free
Farm Taxes: Recordkeeping Practices
When 01/07/2025Length 1 hourEvent Format Virtual | LiveLearn essential record-keeping practices to reduce stress and improve tax reporting accuracy for the upcoming fiscal year. - Webinars
Free
Farm Taxes: Basic Filing Requirements
When 12/17/2024Length 1 hourEvent Format Virtual | LivePrepare for tax season! Join our webinar to learn about federal income tax obligations for farm businesses, including filing requirements, types of taxes, and consequences of noncompliance. - Webinars
Free
Farm Taxes: How Your Tax Is Calculated
When 01/14/2025Length 1 hourEvent Format Virtual | LiveExplore essential tax topics for farmers in this free, one-hour webinar, covering self-employment income, Social Security contributions, and the Earned Income Credit. - Webinars
$15.00
Building Your Best Business Plan
When 01/16/2025Length 45 minutesEvent Format Virtual | LiveJoin us for a 45-minute webinar on creating an effective business plan, essential for farmers and food business owners seeking to grow or secure funding. Templates will be provided. - Webinars
Free
Farm Taxes: Year-End Tax Planning
When 12/12/2024Length 1 hourEvent Format Virtual | LiveJoin us for a webinar on essential year-end tax planning strategies for farmers. Learn how to reduce taxable income, manage tax liability, and explore tax credits, deductions, and retirement plans. - Online Courses
$299.00
Farm Sense
Sections 4Length 14 hoursLearn to create a cash flow statement, balance sheet, and income statement for agricultural businesses. Meet Farm Service Agency borrower training requirements. - News
Own a Corporation? File a BOIC before 2025
Date Posted 10/9/2024Many farm and food businesses use an LLC, S- or C- corporation entity for their business. BOIRs must be filed by January 1, 2025. - Workshops
$350.00
Farm Sense
When 02/21/2025Length 3 or 4 daysEvent Format In-PersonJoin us for Farm Sense to learn about the financial statements involved in running a farm business. - Articles
Producción de pimiento
Los pimientos se prestan bien para la producción agrícola a pequeña escala y a tiempo parcial. - Articles
Pricing Agritourism Events and Experiences
Creating pricing strategies for agritourism involves considering costs, experience value, and visitor expectations. This article examines factors affecting pricing decisions, key strategies, and examples of helpful pricing tools. - News
Secure Up to $30,000 in Farmer Grants from SARE Northeast
Date Posted 8/26/2024Northeast SARE offers grants to farmers to explore new concepts in sustainable agriculture conducted through experiments, surveys, prototypes, on-farm demonstrations, or other research and education techniques. - Articles
Elaboración de un Plan de Negocio
Una tarea importante al iniciar una nueva empresa es elaborar un plan de negocios que sea una "hoja de ruta" para guiar el futuro del negocio o la empresa. - Articles
New Long Term Care Guide Available for PA Farm Families
Managing Long Term Care costs can be a financial burden on farm families. PA Farm Link has published a guide to help PA families make asset purchases and transfer decisions. - Articles
Farmland Assessment Checklist
This checklist is meant to be used as a guide as you examine prospective farm properties for lease or purchase. - Webinars
Free
4 Ways to Financially Prepare for 2025
When 12/04/2024Length .5Event Format Virtual | LiveAttend a brief lunchtime webinar to gain crucial insights and actionable strategies to fortify your business for the upcoming year. - Articles
Starting or Diversifying an Agricultural Business
Small-scale farming can be a very satisfying lifestyle, but to be financially successful you also need to view your operation as a business. - Webinars
$350.00
Farm Sense
When 11/19/2024Length 2 hours once a week for 4 weeksEvent Format Virtual | LiveJoin us for Farm Sense to learn about the financial statements involved in running a farm business. - Articles
Fund Your Farm Planning with PA's Farm Vitality Grant Program
Are you ready to invest in planning for your farm? The Pennsylvania Department of Agriculture’s Farm Vitality Grant Program will reimburse 75% of costs up to $7,500. - Articles
Grant Opportunity to Farm Workers
If you worked in farming, meatpacking, or as a grocery store front line worker during the COVID-19 pandemic, you may be eligible for a one-time $600 payment from the USDA. - Articles
Beekeeping - Honey Bees
Honey bees can be managed to produce many products, but they are even more valued for the major role they play in pollination of agricultural crops. - Online Courses
$109.00
Using QuickBooks to Manage Your Farm Business: Instructor-Guided
Sections 6Length 4 hours, 30 minutesLearn basic accounting principles and QuickBooks to run your farm business. This course includes instructor interaction and webinars. - Tools and Apps
Trellis Construction Workbook
This tool will assist growers with the decision making process of determining the cost of two trellis systems. - News
4 Tips to Financially Prepare for 2024
Date Posted 1/24/2024As a small business owner, often times you’re filling many job titles. These 4 tips can help you make small changes to feel more confident in your business's health.