The challenge:

Measuring profitability is not an easy task on farms. Changes in inventories, accounts payable, accounts receivable and fair market values provide plenty of interference in the measurement process. Lack of profitability can be confused with lack of cash flow. Multiple enterprises such as crops, replacement livestock and milking herds further complicate analysis of profitability. In modern agricultural commodity production, the need for separating fixed and variable costs to determine break-even production has never been greater. Competition is on an international scale, making knowledge of profit margins paramount to the survival of the farm, and the farm family.

Why the problem exists:

The complexity of analysis needed to determine profit margins is less developed on farms relative to the skills needed for production. Adequate information for financial decision-making is often not available, or too difficult relative to the time available for on-farm owners and employees to gather.

How Dehm Associates, LLC can help:

We leverage information technology and use our special analytical and reporting skills to coax decision-making information and knowledge from data that usually already exists on the farm. Annual Statements and Trend Analysis, a myriad of financial rations, enterprise analysis, and Year-Over-Year Reports are just some of the tools we use to truly uncover the profitability of your operation. Elegant reporting of financial and production information improves understanding of the operation so that the right decisions can be made to keep the business competitive.