Financial Management for the Farm - Example

The paper “Financial Management for the Farm” is a valuable example of a finance & accounting report. The Ploughman family farm owns and operates a 640-acre farm that has been in the family for several generations. The Ploughman’s always have had to work hard to make a decent living from the farm and have had to endure some occasional difficult years. Stories about earlier generations overcoming hardships due to droughts, floods, etc., are an important part of family history.

However, the Ploughman’s enjoy their self-reliant lifestyle and gain considerable satisfaction from continuing the family tradition of successfully living off the land during an era when many family farms are being abandoned or taken over by large agricultural corporations.John Ploughman is the current manager of the farm while his wife Eunice runs the house and manages the farm’s finances. John’s father, Grandpa Ploughman, lives with them and still puts in many hours working on the farm.

John and Eunice’s oldest children, Frank, Phyllis, and Carl, also are given heavy farm duties before and after school.The entire family can produce a total of 4,000 person-hours worth of labor during the winter and spring months and 4,500 person-hours during the summer and fall. If any of these person-hours are not needed, Frank, Phyllis, and Carl will use them to work on a neighboring farm for $5 per hour during the winter and spring months and $5.50 per hour during the summer and fall.

The farm supports two types of livestock: dairy cows and laying hens, as well as three crops: soybeans, corn, and wheat. (All three are cash crops, but the corn also is a feed crop for the cows and the wheat also is used for chicken feed.) The crops are harvested during the late summer and fall. During the winter months, John, Eunice, and Grandpa make a decision about the mix of livestock and crops for the coming year.Currently, the family has just completed a particularly successful harvest which has provided an investment fund of $20,000 that can be used to purchase more livestock.

(Other money is available for ongoing expenses, including the next planting of crops.)