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.png "Balance Sheets & Barns: Your Path to a Career in Agriculture")
Alex Iconomopoulos
October 30, 2025
Newsletter ArticleAt first glance, farming might seem like a hands-on, dirt-under-the-fingernails kind of job — far removed from spreadsheets and financial statements. But in reality, agriculture is a business, and like any business, it thrives on sound financial management.
If you're an accountant exploring a career in agriculture, your skills are not only relevant — they’re in demand.
A farm has lots of costs associated with it. Evaluating the financial health of your business requires an understanding of the key financial statements: the balance sheet, income statement, and statement of cash flows.
The balance sheet displays assets, liabilities, and owners’ equity, which is what the company owns and what the company owes.
The income statement displays revenue, expenses, cost of goods sold, and net income, which shows profitability.
The statement of cash flows displays operating, investing, and financing activities. Showing how money flows in and out of the business.
These tools help farmers make informed decisions, such as whether to invest in new equipment or expand operations.
Imagine a farm considering a new tractor that could boost productivity by 20%. Your accounting skills would help:
Use the income statement to project increased revenue
Review the balance sheet to assess current debt and available capital
Analyze the cash flow statement to ensure the farm can handle monthly payments
Your financial insight could be the difference between a smart investment and a costly mistake.
Analyzing these statements will help you make the right decision.
Uncertainty in prices for commodities is a big risk that farmers take on. Understanding economics and how supply and demand affect prices is crucial in making the right decisions. When the markets are in a state of equilibrium, supply equals demand and prices are stable. But fluctuations in the market cause prices to change. Recognizing these patterns helps you prepare for future conditions. For example, the weather outlook suggests there will be a drought, which will lead to a crop shortage. You can anticipate the higher prices and adjust your plans, such as securing contracts early or adjusting production.
While many farms work with external accountants, having financial expertise in-house or on the team gives operations a competitive edge. Your ability to interpret data and guide decisions makes you a valuable asset in the ag industry.
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Helpful resources:
University of Guelph’s Foundations in Agricultural Management course (free): https://www.guelphagriculturalmanagement.com/
Farms.Com Risk Management services: https://www.guelphagriculturalmanagement.com/
