Beginning Farmer & Land Access
Beginning Farmer Financial Ratios Guide
A guide to financial ratios for beginning farmers. It explains the common measures lenders look at and how to track them using farm financial statements.
Download free PDF1 page, US Letter, prints clean in black and white
GuideBeginning Farmer & Land AccessFree PDF
The steps on this page
- Gather balance sheet and income statement
- Learn liquidity measures
- Learn solvency measures
- Learn profitability measures
- Learn efficiency measures
- Calculate each ratio the same way
- Compare year to year
- Discuss results with your lender
How to use this guide
Walk a new hand through the steps once, then let them use the page on their own. Add your own notes as you learn what works.
Where to check the details
This sheet is a general template, so confirm specifics with your own manuals, labels and local rules. For current official guidance, start with USDA Economic Research Service and Farm Credit.
For more in this area, see the farm loans, grants and taxes. Between chores, farm.FM has farm humor, including I Wanna be a Farmer, and agribusiness farm stories.