Financial Reporting in Agriculture: In Need of A Reliable System

Farm managers and lenders are becoming increasingly aware of the need for thorough and accurate farm financial management.1 The current extended agricultural recession magnifies this need. Increased current loan losses and the increasing financial stress of farm operators have prompted lending institutions, government agencies and farmers to determine what has gone wrong in the area of farm financial management and, more importantly, to search out ways to reduce the frequency of farm business failure. The use of inadequate financial reporting systems is viewed as one source of the problem.