Standardized Financial Benchmarks for Canadian Farm Financial Statements
Larry Martin and Joerg Zimmermann
To read the full article please click here.
Standardized operating statements produce comparably calculated financial ratios useful as performance benchmarks. They are used in CTEAM, a management training program for farmers. Their value in helping farmers understand and improve their management performance led to collaboration between AME and BDO Canada to introduce standardized statements and ratios to BDO's farm clients.
This paper explains the collaboration between the two companies and extensions of the concepts to additional farmers in Canada and the US by GlobalAgAdvisors Ltd. (GAA). The structure and rationale of the standardized statement are presented in this paper. The resulting ratios are defined and their management performance implications are examined.
Their value in application is demonstrated by application to three example farms. The applications identify areas in which the farms are performing well and those in which they have performance issues.
Next steps for the collaboration are identified.
AME would like to thank Farm Management Canada for supporting this project.
Key words: Financial Management; Benchmarking; Management Training.
To read the full article please click the link below: