This KPI also goes to the heart of the scalability of an agricultural operation. It is almost certain that your income needs will increase in correlation with inflation and the cost of doing business. It stands to reason that farm earnings should also increase to maintain profit margins. Growth The growth KPI centers around your farm's potential. It should help answer questions such as: How quickly should I grow, and how can I finance that growth? Within this KPI lie calculations that track farming income generation and your ability to retain that income and reinvest it in the business. Better Financial Management Can Help You Handle Future Risks Establishing enhanced financial management and analytical oversight of the financial aspect of your agribusiness helps you optimize operations and prepare for what comes next. For example, when you develop cash flow projections based on predicted income and expenses, you can identify when costs would exceed your income. This financial oversight ultimately helps with farm profitability, which is essential to the survival of your business. Regular equity and asset returns analysis against net farm income can help determine if your agribusiness is in trouble or going through short-term cash flow issues. For example, a dairy farmer may sell livestock to improve cash flow in the short term. The long- term result is a reduction in milk production the following year, which impacts cash flow. Financial management can predict these dips and help you prepare for them. Analyzing the complexities of an agribusiness during uncertain times requires long-range cause-and-effect financial management and oversight. Outsourcing Financial Management Although there are many uncertainties that are out of your control, focusing on financial management can help you understand what areas of your business are profitable, if you're increasing the net worth of your business, and project future cash flow. Outsourcing your accounting functions is an option that farming operators increasingly turn to as the business of running their farm grows more complex. Outsourcing your accounting practices can: Give you the information to make more data- driven decisions - Help you understand impediments to business profits Offer roadmaps to withstand future challenges to your financial solvency Free you up to focus on building your operation Eide Bailly's Agribusiness Finance Solutions team is the trusted outsourcing firm of small to large farm operators nationwide and one of the few accounting firms specializing in this area. Contact our agribusiness team for help managing your accounting and financial processes to plan for a more profitable farm operation that can withstand future storms. LEARN MORE eidebailly.com This KPI also goes to the heart of the scalability of an agricultural operation . It is almost certain that your income needs will increase in correlation with inflation and the cost of doing business . It stands to reason that farm earnings should also increase to maintain profit margins . Growth The growth KPI centers around your farm's potential . It should help answer questions such as : How quickly should I grow , and how can I finance that growth ? Within this KPI lie calculations that track farming income generation and your ability to retain that income and reinvest it in the business . Better Financial Management Can Help You Handle Future Risks Establishing enhanced financial management and analytical oversight of the financial aspect of your agribusiness helps you optimize operations and prepare for what comes next . For example , when you develop cash flow projections based on predicted income and expenses , you can identify when costs would exceed your income . This financial oversight ultimately helps with farm profitability , which is essential to the survival of your business . Regular equity and asset returns analysis against net farm income can help determine if your agribusiness is in trouble or going through short - term cash flow issues . For example , a dairy farmer may sell livestock to improve cash flow in the short term . The long term result is a reduction in milk production the following year , which impacts cash flow . Financial management can predict these dips and help you prepare for them . Analyzing the complexities of an agribusiness during uncertain times requires long - range cause - and - effect financial management and oversight . Outsourcing Financial Management Although there are many uncertainties that are out of your control , focusing on financial management can help you understand what areas of your business are profitable , if you're increasing the net worth of your business , and project future cash flow . Outsourcing your accounting functions is an option that farming operators increasingly turn to as the business of running their farm grows more complex . Outsourcing your accounting practices can : Give you the information to make more data driven decisions - Help you understand impediments to business profits Offer roadmaps to withstand future challenges to your financial solvency Free you up to focus on building your operation Eide Bailly's Agribusiness Finance Solutions team is the trusted outsourcing firm of small to large farm operators nationwide and one of the few accounting firms specializing in this area . Contact our agribusiness team for help managing your accounting and financial processes to plan for a more profitable farm operation that can withstand future storms . LEARN MORE eidebailly.com