Analysis should

• consider data collected and efficiency factors
• income/P&L statements
• balance sheets
• cashflow statements
• inventory reports
• break-even analysis
• return on investment (ROI)
• taxes
• income
• property
• sales
• employment
• estate
• evaluate efficiency, profitability, net worth, and financial ratios
• identify the profit centers, cost center, and loss leaders for a farm enterprise

• identify trends, strengths, weaknesses, and areas needing financial adjustment.

Process/Skill Questions:

• Why is it important to summarize records at the end of the year?
• What are some examples of ways to keep records of an agricultural business?
• How might recordkeeping be helpful in applying for loans or expanding one’s operation?
• How can year-end reports be used to improve a business?
• How can a record summary be used to apply for FFA awards?

Teacher Resource: Farm Business Management FFA CDE (instructor guide and student guide)