We know the daily operations of your dairy farm can be more than a full-time job. So, it’s unsurprising that many dairy producers struggle to keep up with the data and stay up on the numbers. Not being meticulous with your dairy benchmarks and their information can hold you back from reaching your financial goals. Learn more about how a focused approach to benchmarks can make all the difference moving into the future.

What is Dairy Benchmarking?

Dairy benchmarking uses a set of key performance indicators (KPIs) to measure various aspects of dairy farm operations, such as milk yield, feed efficiency, and animal health. Dairy KPIs are regularly updated to reflect the latest industry information and allow for comparisons between farms of different sizes, regions, and production systems. Dairy benchmarking not only provides a snapshot of farm performance but can also be used to identify trends over time and make informed management decisions.

Benefits of Dairy Benchmarking

Dairy benchmarking helps farmers identify areas of strength and improvement opportunities. It provides a way to measure performance and improve profitability by effectively targeting resources and investments. Dairy benchmarks can also help farms become more sustainable by monitoring their progress toward sustainability goals.

Adapting a Traditional Business to Twenty-First-Century Metrics

Getting on board with the data-driven world can profoundly affect your profits, as pasteurization had on the entire industry in the twentieth century. Here are a few specific examples of tracking exact numbers and dairy benchmarks that can give you more streamlined returns. These examples encompass both external and internal benchmarks.

1. Market Participants Comparison

Dairy farmers aren’t rivals in the usual sense. But knowing how you measure up to others in the market is a great way to evaluate where you are and where you need to improve. Comparing your KPIs to the benchmarks of your fellow farmers gives you a gauge. To do this, first, you must have your data in order.

2. Action Profit Contribution

Another excellent way to employ benchmark data is to focus your capital and energy on the specific areas that will boost profits. Significant data eliminates the chances of placing your efforts in the wrong areas, wasting time and money. In addition, numbers give you actionable clarity in your decision-making.

3. Having a Professional Presentation for Lenders

If you need to work with a lending institution for expansion or upgrade capital, a dynamic, well-organized analysis of operations, projections, and industry comparisons can make all the difference in landing the deal. Not to mention the added benefits it has with the IRS.

Working with a Dairy Accounting Professional

Your time is limited when it comes to attending to these technical activities. Consider bringing in a trusted partner ready to answer questions, put systems in place, and help solve problems whenever they arise.

For a professional partner and CPA that knows the dairy industry, contact Genske, Mulder & Company, LLP.

We also provide FREE information to clients and non-clients through our Daily Report. Visit “Get My Dairy Report” to stay up to date.

Did you know that your profitability is vulnerable to changes in the market, government aid programs, labor expenses, environmental concerns, international trade rules, and natural calamities? An agribusiness accounting professional with a firm grasp of the challenges and opportunities in the agribusiness sector is crucial for your business’s growth and success, as they can help you weather through those challenges.

At Genske, Mulder & Company, LLP, we offer a full range of ag business accounting services according to the unique needs of our clients. We will handle all the accounting tasks for you, freeing up time for you to concentrate on the core task—managing your business.

Our accountants can assist you with everything from general business consulting to a detailed analysis of your tax and accounting needs. We have the resources and expertise to support ag businesses of all sizes, from small family farms to large commercial operations.

How Our Agribusiness Accounting Services Can Help

Operational support

We will help you complete essential tasks like contract management, tax issues, cash flow analysis, profitability analysis, and projections.

Our experts always help you learn more about the expenses associated with running your business. That will enable you to make confident decisions such as which products to keep selling or drop, how to price products, and how to market to your target customers.

Tax planning and consultation

Our expert team has hands-on experience with agricultural enterprises and will assist with tax credit and deduction analysis, financing alternatives, and tax preparations. In addition, we bring extensive knowledge of individualized tax consultation and planning services to help streamline your tax liabilities and credits.

Technology and software support

Using cutting-edge technologies is essential to maintain a competitive edge in the global agricultural market. However, as an ag business owner, you have too much on your plate already to devote time to learning complex bookkeeping and accounting software.

Our accountants have a vast knowledge of the agribusiness industry and can perform fundamental tasks like maintaining accounting software, recording financial transactions, and preparing tax returns for your business.

Plan for succession and retirement

As an agribusiness owner, you must eventually deal with estate, retirement, and succession planning challenges. In addition to accounting services, we provide financial planning and succession services to assist our clients in reaching their financial objectives.

We will advise you on the best organizational structure to minimize your tax liability and ease the succession burden.

Grow Your Agribusiness With Genske, Mulder & Co. Accounting Services

Accounting services are vital and valuable, no matter how big or small your operation. With professional agricultural business accounting services, you can make informed business decisions, confidently file your taxes, and save for the short- and long-term.

The sooner you seek expert ag business accounting services, the sooner you will see the results. Get started today to learn how we can help you Grow and Thrive.

We understand what it takes to be a thriving dairy business owner. According to the US Department of Agriculture, food, agriculture, and related industries have become big businesses, contributing about 5.4% of the total gross domestic product (GDP), or $1.26 trillion in 2021.

You, too, can have a chunk of that, but only if you understand the financial side of the business. Maintaining a successful dairy farm depends primarily on trusted financial advice and solid record-keeping in line with the generally accepted accounting principles (GAAP). Keeping tabs on financial operations is hard enough; tracking the volatile market that directly impacts the price of farm produce is even more challenging. But, thankfully, that’s where we come in.

At Genske, Mulder & Company, LLP, we have years of experience helping dairy and ag farm owners handle their bookkeeping and accounting needs. We help you gain better control and understanding over finances to make more accurate business decisions.

Dairy Farm Accounting Insights to Help Your Farm Grow and Thrive

We have a team of seasoned agribusiness accounting professionals who will guide you in accounting best practices specific to your farming operation. Our service goes beyond financial statements and tax returns as we provide deeper insight into issues such as improving efficiency. Some of the services we offer include:

• Labor management
• Cash flow forecasts and projections
• Cost of production control
• Tax law tracking
• Structuring the business

Our Features and Benefits

Genske, Mulder & Company, LLP accountants have a wealth of knowledge in dairy farm accounting, so you get actionable clarity and not just spreadsheets.

• Detailed reporting: We use accounting software tailor-made for farming operations. These can produce farm-specific accounting reporting such as breakeven cost per acre and allows us to give you a detailed analysis of your results each season.
• Accounting services: You can take the hustle of bookkeeping off your plate by utilizing our professionals to record and reconcile your financial records and transactions.
• Tax preparation: Tax laws are tricky, but not for us. Our team of tax professionals has been drawing returns for dairy farm business owners for years, helping businesses manage tax liabilities and credits according to the law.
• Cash flow analysis: Our report will include pointers on the best times to sell your products to ensure you maintain sufficient working capital.

Experience Genske, Mulder & Company, LLP’s Client-Focused Approach

Most of our team members have worked in the agricultural industry, so they have first-hand experience. We work on all agricultural accounting for all types of farmers, providing market-leading value-added services such as projections, market basis balance sheets, and customized, modified, and work unit method enterprising.

Moreover, our experts will provide educational material to help you understand basic accounting principles and better your decision-making. We also team up with industry specialists in the tax, insurance, and commodity marketing space to provide a valuable all-in-one farm accounting solution. Get started today to learn how we can help you Grow and Thrive.

The lifeblood of any successful business is maintaining, analyzing, and monitoring accurate data. Agribusiness is no exception. Your farm business financial statements are the foundation of this vital process. We put together a preliminary list to familiarize you with these core statements to give you a general idea of what they are and how they play a role in your business.

Essential Farm Business Financial Statements

Here’s a look at the essential financial statements you should get familiar with. Understanding these are critical, because optimizing them with the help of professionals can help you to get the most profit from your farm business.

1. Balance Sheets

Balance sheets provide a snapshot of your farm’s financial position at a given time and create an annual look at your agribusiness’ overall health. A good balance sheet clarifies your business’ assets, liabilities, and net worth. Assets represent what your farm owns, such as cash and physical property. Liabilities are the opposite of assets; they are debts owed to creditors. Equity is the difference between the two, representing the business’s net worth and ownership stake. Balance sheets should be done once at the end of the fiscal year.

2. Net Income Statement

As the name implies, this financial statement calculates your farm’s net income. It’s a straightforward formula using income minus expenses to get your net income during a given period, usually one year. It provides insight into your farm’s profitability and is an essential tool for assessing its financial health, which can provide valuable information for measuring performance.

3. Cash Flow Statement

The cash flow statement provides critical information from the balance sheet and the income statement. It tracks the movement of cash within your farm over a period of time, analyzing the changes to the other statements to get an accurate reading of how your cash was used. This information can help determine whether your business is creating and managing its finances effectively.

Working with Professionals Who Specialize in Farm Business Financial Statements

Modern farmers juggle a vast array of responsibilities. Finding out that some days may include the title “Data Analyst” or “Accountant” can be daunting. According to a USDA study, most U.S. farms need in-house accountants to solve this dilemma. However, professional accountants are not one-size-fits-all. Understanding the unique dynamics of agribusiness takes experience and a tight focus on the industry. The right firm will not only help your farm grow but make it thrive.

Here are a few reasons to consider Genske, Mulder & Company, LLP for your farm business needs:

• – A Leading Accounting Firm in the nation for dairy and agribusiness and one of the top 200 national accounting firms overall.
• – Delivering actionable clarity to our clients, not just spreadsheets.
• – Industry experts with over forty years of experience who understand your unique situation.

Find an expert accounting partner to help manage your financial statements. Get started today.