Farm Balance Sheets

The most basic farm financial statement is the balance sheet.  The balance sheet is a listing of all of the farm assets and liabilities at a particular point in time.  The balance sheet provides information about the liquidity and solvency of the farm.  It is a great tool for tracking changes in wealth from one year to the next. It can be used in combination with the farm’s income statement and annual statement of cash flows to calculate a series of financial performance ratios for the farm.  The Vermont Farm and Forest Viability Program provides a balance sheet template with numbers from a sample farm that you can adapt for your own farm.  You can download it at http://www.vhcb.org/pdfs/viability/balancesheet.xls