Farm Financial Tool: Balance Sheet Fact Sheet

Published: 4 Nov 2013

Farm Financial Tool: Balance Sheet Fact Sheet

How secure is your farm business?

Many farmers ask why they need a business balance sheet, as they are not selling any land. The reality is that the balance sheet is the only record that indicates the growth in wealth of the business over time, and hence indicates a farming business’s performance and ability to manage risk.

Key Points

  • Net Worth is the most important benchmark of a business.
  • Undertaking the annual review of the balance sheet will give a greater understanding of the health of the business.
  • Even if you never intend to sell the farm, it is important to know what the business is worth.

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Region National, North, South, West, Overseas

Region: National