Success Story MN

Situation: Ongoing uncertainty in the farm economy, combined with fluctuating commodity prices and rising production costs, made effective financial and business management more critical than ever for farmers. Beginning and young farmers, in particular, faced additional challenges such as limited access to capital, fewer established markets, and less experience navigating financial risk. Without strong business management skills, these challenges threatened the long-term viability of their operations.

To address this need, the Ag Business Management Team developed a comprehensive program focused on providing beginning farmers with practical, hands-on education in farm financial management and business decision- making. The program was designed to build foundational skills that enabled participants to evaluate their operations, manage risk, improve profitability, and make informed decisions that supported sustainable growth and long-term success in their farm businesses.

Outcomes: Program participants gained a stronger understanding of farm financial and business management practices that support longterm success. Participants reported increased knowledge of financial statements, including how to create and use them, improved understanding of record-keeping methods and strategies, and greater awareness of agricultural tax considerations. They also demonstrated
increased understanding of land rental practices in their area and the ability to develop and implement effective pre- and post-harvest marketing plans. In addition, participants gained practical experience in business planning, including evaluating and implementing an appropriate business entity structure, developing a comprehensive business plan, and creating written personal and business goals. Collectively, these outcomes equipped participants with the skills and confidence needed to make informed financial and management decisions for their farm operations. A total of 178 young and beginning farmers participated in the in-person workshops, while the four-part webinar series engaged 166 participants. In-person workshops averaged 15 participants per session, and webinar sessions averaged 42 participants. Overall, the program reached 145 unique participants and 344 total participants across all 16 workshops.
 

Impacts: A young farmer transitioning into a management role on his family’s corn and soybean operation participated in the Minnesota Beginning Farmer Institute to strengthen his understanding of farm financial management, particularly financial statements and agricultural tax planning. Although he held a degree in agronomy, he had limited prior exposure to the farm’s tax planning process. Through the workshops, he gained a clearer understanding of tax brackets, deductions, and strategic tax decision-making, as well as what agricultural lenders expect to see in financial statements. He also learned the importance of credit scores, proper documentation, and building relationships with lenders before making major purchases. As a result, he is now able to engage in informed conversations with the family accountant and make more strategic financial decisions for the farm business. With beginning farmers better able to manage their farm business, they can stay farming for longer and positively impact our food supply by reducing consolidation and providing a larger supply of farmers producing food, fiber, and fuel for Americans and the world to consume.