Farm Financial Risk Management Series Part III: Introduction to Farm Planning Budgets

There are many factors to consider before starting a new farm enterprise. Financial management is an important component in the startup and decision-making processes for beginning farmers. The purpose of this series of publications is to inform Virginia agribusiness owners and managers about farm financial risk management tools, techniques, and resources available to help them prepare and use a financial systems approach for their operations.

The information provided in this publication is expected to improve manager decision-making by providing a better understanding of the value of constructing financial statements and planning budgets to help them manage risks associated with the financial aspects specific to the agriculture industry. The topics covered in this resource are not all-inclusive, but after reading this publication, beginning farmers should be prepared to move forward in planning for their farms.

The accompanying parts in the series include “Farm Financial Risk Management Series Part I: Overview of Financial Systems for New and Beginning Farmers” (Virginia Cooperative Extension publication AAEC-114P (AAEC-296P)), and “Farm Financial Risk Management Series Part II: Introduction to Farm Financial Statements” (Virginia Cooperative Extension publication AAEC-115P (AAEC-297P)). A compilation of excellent resources that includes examples, how-to videos, and training resources is included in the appendix at the end of this publication.

For questions about this or other farm startup topics, contact the local Virginia Cooperative Extension office or visit the Virginia Beginning Farmer and Rancher Coalition Program website at www.vabeginningfarmer.org.