Developing Income Statements

An income statement:

• Lists the sources of farm revenues
• Describes the nature of farm expenses
• Calculates Net Farm Income

Multiple income statements can allow a farm manager to compare profitability to previous years and similar farm operations.

Also referred to as a Profit and Loss Statement

Source: Getting on Track: Better Management through Basic Financial Statements, Rodney L. Sharp, John P. Hewlett, and Jeffery E. Tranel.

Additional resources:

<RightRisk News: Was Your Farm Profitable Last Year? by John Hewlett, Jay Parsons, Jeff Tranel. January 2023.>