Agriculture Posts

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Transitioning from Traditional to Digital Accounting Systems on the Farm 

The agricultural industry is evolving, and farms are increasingly adopting digital technologies to improve efficiency, accuracy, and decision-making. One of the most significant changes many farms face is transitioning from traditional, manual accounting methods to modern digital accounting systems. This shift can transform how financial information is managed, reported, and utilized to drive business …

The agricultural industry is evolving, and farms are increasingly adopting digital technologies to improve efficiency, accuracy, and decision-making. One of the most significant changes many farms face is transitioning from traditional, manual accounting methods to modern digital accounting systems. This shift can transform how financial information is managed, reported, and utilized to drive business growth. 

 

Why Make the Switch to Digital Accounting? 

Traditional accounting often involves paper-based records, spreadsheets, and manual data entry, which can be time-consuming, error-prone, and difficult to scale. Digital accounting systems offer several advantages: 

  • Increased accuracy through automated calculations and data entry 
  • Real-time financial visibility for faster, informed decision-making 
  • Streamlined processes that save time on bookkeeping and reporting 
  • Improved compliance with tax regulations and recordkeeping requirements 
  • Better integration with other farm management tools and financial institutions 

 

Steps to a Successful Transition 

  1. Assess Your Current Processes
    Identify pain points in your current accounting system. Are you struggling with data accuracy, reporting delays, or time-consuming manual tasks? Understanding these challenges will help you select the right digital solution.
  2. Choose the Right Software
    There are numerous accounting software options tailored to agriculture, including QuickBooks, Xero, and specialized farm management platforms. Look for systems that:
    • Support your farm’s specific financial and operational needs 
    • Integrate with payroll, inventory, and tax reporting 
    • Are user-friendly for you and your staff 
  1. Plan for Data Migration
    Moving from paper or spreadsheets to digital systems requires careful data transfer. Clean and organize your existing records to avoid transferring errors. Consider professional help to ensure a smooth migration.
  2. Train Your Team
    Ensure that all users understand the new system’s features and workflows. Training reduces errors and maximizes the benefits of digital tools.
  3. Establish New Internal Controls
    Digital systems can enhance internal controls by automating approvals, audit trails, and segregation of duties. Update your policies accordingly.

 

Overcoming Common Challenges 

Transitioning to digital accounting is not without challenges: 

  • Resistance to change: Some farm staff may be hesitant. Emphasize benefits and provide support. 
  • Initial costs and setup time: Investing time and resources upfront pays off in efficiency gains. 
  • Data security concerns: Choose reputable software with strong security measures and backup capabilities. 

 

The Impact on Farm Management 

Digital accounting provides more than just improved bookkeeping. It enables farmers to: 

  • Monitor cash flow and profitability in real time 
  • Generate timely financial reports and key performance indicators 
  • Simplify tax preparation and compliance 
  • Identify cost-saving opportunities 
  • Support succession planning and long-term growth strategies 

 

How De Boer, Baumann & Company Can Support Your Transition 

De Boer, Baumann & Company helps farms navigate the complexities of moving to digital accounting. From selecting the right software and managing data migration to training your team and optimizing financial processes, our experts provide tailored support designed for agricultural operations. Partner with us to modernize your accounting system and empower your farm with better financial insight and control. 

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Compliance Considerations for Government Grants in Agriculture 

Government grants have become an important resource for agricultural producers looking to invest in equipment, technology, conservation efforts, and sustainable practices. These grants can provide critical funding that helps farms innovate and grow without incurring debt. However, receiving government grants also comes with a set of compliance requirements that must be carefully managed to …

Government grants have become an important resource for agricultural producers looking to invest in equipment, technology, conservation efforts, and sustainable practices. These grants can provide critical funding that helps farms innovate and grow without incurring debt. However, receiving government grants also comes with a set of compliance requirements that must be carefully managed to avoid penalties, repayments, or loss of future funding. 

Understanding these compliance obligations is essential for any farm or agribusiness leveraging government grant programs. 

 

Key Compliance Requirements in Agricultural Grants 

  1. Proper Use of Funds
    Grant funds must be used strictly for the purposes outlined in the grant agreement. Diverting funds to unauthorized expenses can result in grant termination and legal consequences. Farmers should establish clear budgets and track expenditures diligently.
  2. Documentation and Recordkeeping
    Comprehensive documentation is critical to demonstrate how grant funds were spent. This includes invoices, receipts, payroll records, timesheets, and progress reports. Proper recordkeeping supports audits and can be required for several years after the grant period ends.
  3. Reporting Obligations
    Most grants require periodic reporting on project progress, financial status, and outcomes. These reports must be accurate, complete, and submitted on time. Failure to comply can jeopardize current and future funding.
  4. Compliance with Federal, State, and Local Regulations
    Grant recipients must adhere to all applicable regulations, including environmental, labor, and procurement laws. For example, projects involving construction may require adherence to environmental impact assessments or local zoning laws.
  5. Audits and Monitoring
    Grant programs may include audits or site visits by grant administrators or independent auditors. Being prepared with well-maintained records and internal controls can ease the audit process and demonstrate compliance.

 

Challenges for Agricultural Grant Recipients 

  • Complexity of Requirements: Agricultural grants often come with layered compliance rules from multiple government agencies, which can be difficult to navigate. 
  • Resource Constraints: Smaller farms may lack dedicated staff to manage compliance, increasing risk. 
  • Changing Regulations: Grant requirements and regulations can evolve, requiring ongoing monitoring and adaptation. 

 

Best Practices to Maintain Compliance 

  • Develop Internal Controls: Implement controls around spending, approvals, and documentation specific to grant-funded projects. 
  • Train Staff: Ensure that employees understand grant requirements and their role in compliance. 
  • Maintain Clear Communication: Stay in contact with grant administrators and seek clarification on requirements when needed. 
  • Plan for Reporting: Set internal deadlines for data collection and reporting ahead of grant due dates. 
  • Seek Expert Assistance: Partner with accountants or advisors familiar with agricultural grants to help manage compliance. 

 

How De Boer, Baumann & Company Can Help 

De Boer, Baumann & Company offers specialized support to agricultural clients navigating the complexities of government grants. Our team assists with establishing compliant accounting practices, preparing for audits, managing reporting obligations, and advising on regulatory requirements. With a deep understanding of agricultural operations and grant compliance, we help ensure that your investment in sustainability and growth remains secure and successful. 

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Succession Planning for Multi-Generational Farms 

Running a family farm across multiple generations is both a proud tradition and a complex challenge. Succession planning—the process of preparing the farm for a smooth transition of ownership and management—is essential to ensure that the farm’s legacy endures while maintaining financial stability and operational efficiency. Whether you are in the early stages of passing …

Running a family farm across multiple generations is both a proud tradition and a complex challenge. Succession planning—the process of preparing the farm for a smooth transition of ownership and management—is essential to ensure that the farm’s legacy endures while maintaining financial stability and operational efficiency. 

Whether you are in the early stages of passing the reins or are deep in the transition process, a well-structured succession plan can help prevent family disputes, minimize tax burdens, and position the farm for long-term success. 

 

Why Succession Planning Matters 

Farms differ from many other family businesses due to their unique mix of assets, emotional ties, and regulatory complexities. Succession planning allows farm families to: 

  • Maintain business continuity despite generational change 
  • Protect family relationships by clarifying roles and expectations 
  • Manage tax liabilities related to estate, gift, and income taxes 
  • Prepare the next generation with the skills and knowledge needed to run the farm 
  • Incorporate new business models or diversify operations as needed 

Without a plan, transitions can lead to costly delays, litigation, or even the forced sale of farm assets. 

 

Key Components of a Succession Plan 

A successful succession plan typically involves the following elements: 

  1. Communication and Family Governance
    Open, honest conversations among family members lay the foundation. Establishing regular meetings and a family governance structure can help align goals and resolve conflicts early.
  2. Business Valuation and Financial Planning
    Accurate valuation of farm assets, including land, equipment, livestock, and business goodwill, is critical for equitable division and tax planning.
  3. Estate and Tax Strategies
    Working with legal and tax professionals to develop strategies that minimize estate taxes, such as gifting, trusts, or buy-sell agreements, can preserve farm assets across generations.
  4. Management and Ownership Transition
    Determining when and how ownership transfers will occur—whether gradually through gifting or via sale—is key to ensuring financial viability and operational control.
  5. Education and Mentorship
    Preparing the successor with hands-on experience, training, and leadership opportunities helps build confidence and competence.

 

Challenges to Anticipate 

  • Complex Family Dynamics: Differing visions and expectations can cause tension. Facilitated mediation or family business advisors may be needed. 
  • Changing Agricultural Markets: New market demands and technology require adaptability in the succession plan. 
  • Legal and Tax Complexity: State and federal laws evolve, making it essential to revisit and update plans regularly. 

 

The Role of Professional Advisors 

Succession planning is not a one-time event but an ongoing process. It requires coordination among accountants, attorneys, financial planners, and family members. Expert advisors help interpret laws, optimize tax outcomes, and create customized plans that reflect the family’s values and goals. 

 

How De Boer, Baumann & Company Supports Multi-Generational Farms 

De Boer, Baumann & Company brings decades of experience working with agricultural families navigating succession. Our professionals understand the unique financial, tax, and operational challenges farms face. We collaborate with your trusted legal and financial advisors to develop and update succession plans that protect your legacy while positioning your farm for future growth. 

If your farm is preparing for the next generation, reach out to learn how we can help guide your transition with confidence and clarity. 

 

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Mitigating Financial Risk in Agriculture Through Robust Internal Controls  

Agriculture is an industry marked by unique financial risks—ranging from fluctuating commodity prices to seasonal labor challenges and complex inventory management. For farmers and agribusinesses, mitigating these risks is critical to maintaining profitability and sustainability. One of the most effective ways to manage financial risk is through robust internal controls.  What Are Internal Controls? Internal controls …

Agriculture is an industry marked by unique financial risks—ranging from fluctuating commodity prices to seasonal labor challenges and complex inventory management. For farmers and agribusinesses, mitigating these risks is critical to maintaining profitability and sustainability. One of the most effective ways to manage financial risk is through robust internal controls. 

 

What Are Internal Controls? 

Internal controls are the policies, procedures, and practices designed to safeguard assets, ensure accurate financial reporting, and promote operational efficiency. They provide a framework that helps farms prevent errors, fraud, and financial mismanagement. 

 

Why Agriculture Needs Strong Internal Controls 

Farms face specific challenges that can increase financial vulnerability: 

  • Multiple revenue streams and inventory types (crops, livestock, equipment) complicate tracking. 
  • Seasonal and temporary labor can lead to inconsistent adherence to procedures. 
  • Family-run operations often have overlapping roles, reducing segregation of duties. 
  • Cash transactions at farm stands or markets may lack formal controls. 

Without effective controls, farms risk asset loss, inaccurate financial records, and regulatory noncompliance. 

 

Key Internal Controls to Consider for Your Farm 

  1. Segregation of Duties 
    Separate responsibilities so no single individual controls all aspects of a financial transaction. For example, the person authorizing payments should not reconcile bank statements. 
  2. Inventory Controls 
    Implement systems to track inventory accurately, from planting through harvest or from livestock birth to sale, reducing loss and theft. 
  3. Cash Handling Procedures 
    Establish clear policies for managing cash transactions, including issuing receipts and depositing funds promptly, especially for farm stand sales. 
  4. Bank Reconciliations 
    Perform regular reconciliations of bank statements with accounting records to detect discrepancies quickly. 
  5. Use of Technology and Cybersecurity 
    Utilize accounting software with strong security features, including password protection, two-factor authentication, and regular backups. 
  6. Documented Policies and Training 
    Maintain written procedures for financial tasks and provide training to all employees, including seasonal workers, to ensure consistent compliance. 
  7. Succession Planning Controls 
    Create clear structures for financial responsibilities during ownership transitions to maintain continuity and control. 

 

The Benefits of Strong Internal Controls 

Implementing these controls helps farms: 

  • Reduce risk of fraud and theft 
  • Ensure accurate and timely financial information 
  • Improve operational efficiency 
  • Build trust with lenders and investors 
  • Support regulatory compliance 

 

How De Boer, Baumann & Company Can Help 

De Boer, Baumann & Company has extensive experience supporting agricultural clients in developing and strengthening internal controls tailored to their operations. We work with you to identify vulnerabilities, design practical controls, and implement processes that protect your farm’s financial health and support sustainable growth. 

If you want to safeguard your farm’s finances and reduce risk, our team is here to help you build a robust internal control framework. 

 

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Streamlining Inventory and Crop Costing with Client Accounting & Advisory Services 

For agricultural producers, inventory and crop costing are two of the most essential, and often most complex, aspects of financial management. Between fluctuating input prices, unpredictable weather, and seasonal labor demands, it can be challenging to maintain accurate records and a clear understanding of profitability. That’s where client accounting and advisory services (CAAS) can …

For agricultural producers, inventory and crop costing are two of the most essential, and often most complex, aspects of financial management. Between fluctuating input prices, unpredictable weather, and seasonal labor demands, it can be challenging to maintain accurate records and a clear understanding of profitability. That’s where client accounting and advisory services (CAAS) can make a meaningful difference. 

Why Crop Costing Matters 

Crop costing is more than just tracking expenses. It’s about understanding the true cost of producing each crop or product — from seed and fertilizer to fuel, labor, equipment, and land use. When costs are accurately assigned and tracked, farm owners can evaluate profit margins, identify inefficiencies, and make informed pricing and operational decisions. 

Accurate crop costing also plays a critical role in tax planning, budgeting, and long-term strategic growth. For farms with multiple crops or income streams, a clear picture of cost per acre or per unit can highlight which areas of the operation are thriving — and which may need reevaluation. 

Challenges in Tracking Agricultural Inventory 

Unlike traditional retail or manufacturing businesses, farms deal with unique inventory challenges. Perishable products, seasonal harvests, and variable input usage can complicate inventory tracking. Inaccurate inventory data can lead to poor decision-making, cash flow issues, and compliance problems with sales tax or reporting obligations. 

Having a system in place that allows for real-time monitoring of inventory levels, input usage, and crop yields can transform how an operation is managed. With cloud-based accounting platforms and integrated tools, farms can automate many of these processes, saving time while improving accuracy. 

How Client Accounting & Advisory Services Help 

Client accounting and advisory services are designed to support businesses with day-to-day financial functions, giving owners more time to focus on operations while gaining deeper insight into financial performance. For farms, CAAS can assist with: 

  • Designing and maintaining inventory tracking systems 
  • Setting up cost centers by crop or field 
  • Preparing detailed financial reports and performance dashboards 
  • Managing payroll and subcontractor filings 
  • Reconciling financial accounts and maintaining depreciation schedules 
  • Providing software support and training for systems like QuickBooks or ag-specific platforms 

With accurate data and consistent reporting, agricultural entrepreneurs can better understand their cost structures, plan for the future, and improve profitability. 

Partnering for Success 

For farms looking to streamline operations, improve accuracy, and gain financial clarity, working with a dedicated accounting partner can be a game changer. At De Boer, Baumann & Company, our Client Accounting & Advisory Services team helps agricultural businesses establish smart systems, simplify inventory and crop costing, and make informed decisions for long-term success. 

 

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Wealth Management Considerations for Agricultural Entrepreneurs 

Running a farm is more than a business—it’s a way of life. For agricultural entrepreneurs, building wealth often means managing both personal and business finances in tandem, with much of that wealth tied up in land, equipment, and inventory. Long-term financial success requires careful planning, smart investments, and strategies tailored to the unique realities …

Running a farm is more than a business—it’s a way of life. For agricultural entrepreneurs, building wealth often means managing both personal and business finances in tandem, with much of that wealth tied up in land, equipment, and inventory. Long-term financial success requires careful planning, smart investments, and strategies tailored to the unique realities of farming. 

Here are several key wealth management considerations to help agricultural entrepreneurs preserve and grow their assets over time. 

 

Separate Business and Personal Finances 

While your farm and your livelihood may be closely linked, separating business and personal finances is essential. Not only does this make accounting and tax filing more efficient, but it also helps you better understand profitability, make informed decisions, and protect personal assets. 

  • Maintain separate bank accounts and financial records 
  • Pay yourself a consistent salary or draw 
  • Track farm income and personal expenses independently 

 

Diversify Your Investment Portfolio 

Much of a farmer’s wealth is concentrated in fixed, illiquid assets like land, equipment, or livestock. While these are valuable, they’re not easily turned into cash. To reduce risk and improve liquidity: 

  • Consider investing in off-farm assets, such as stocks, bonds, or real estate 
  • Establish retirement accounts to build long-term savings 
  • Work with an advisor to find balance between farm investments and personal financial goals 

 

Plan for Succession and Estate Transfer 

Wealth management for farmers often involves planning for the next generation. With high-value assets and complex ownership structures, it’s critical to have a clear succession plan: 

  • Decide early who will inherit or take over the business 
  • Use legal tools such as wills, trusts, and buy-sell agreements 
  • Evaluate estate tax exposure and explore strategies for minimizing liabilities 

Proper planning ensures a smoother transition and helps protect your legacy. 

 

Manage Tax Liability Strategically 

Tax planning plays a major role in wealth preservation. Agricultural entrepreneurs have access to a variety of deductions and credits, but timing and structure matter: 

  • Take advantage of Section 179 and bonus depreciation on equipment purchases 
  • Use income averaging to stabilize tax obligations 
  • Explore entity structuring (e.g., LLC, S Corp) to optimize tax treatment 
  • Work with a CPA to stay ahead of changes in farm tax law 

 

Protect What You’ve Built 

Unexpected events—like market swings, weather disasters, or health issues—can disrupt even the strongest farm operations. A good wealth management plan includes risk mitigation through: 

  • Crop and revenue insurance 
  • Adequate liability and property coverage 
  • Disability and life insurance for key individuals 
  • Long-term care and health insurance planning 

 

Partner with the Right Advisors 

Managing agricultural wealth is a long-term process that benefits from professional insight. CPAs, financial planners, and estate attorneys with experience in farming operations can help you: 

  • Create customized investment and savings plans 
  • Evaluate your full financial picture 
  • Plan for major purchases, retirement, and generational wealth transfer 

 

Supporting Your Financial Future 

At De Boer, Baumann & Company, we understand the financial landscape agricultural entrepreneurs face—from volatile cash flow to complex succession needs. Our experienced advisors help you plan strategically so you can protect your farm, your family, and your future. 

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Managing Seasonal Cash Flow Fluctuations in Farming 

Farming is a business of cycles. With planting, growing, harvesting, and selling seasons spread across the year, cash flow often fluctuates dramatically. Managing these ups and downs is critical to keeping your operation running smoothly and ensuring you have the resources to cover expenses year-round. Understanding how to plan for and manage seasonal cash flow …

Farming is a business of cycles. With planting, growing, harvesting, and selling seasons spread across the year, cash flow often fluctuates dramatically. Managing these ups and downs is critical to keeping your operation running smoothly and ensuring you have the resources to cover expenses year-round. 

Understanding how to plan for and manage seasonal cash flow fluctuations can make the difference between thriving and struggling through the year. 

 

Why Cash Flow Fluctuations Are Common in Farming 

Unlike many businesses with steady monthly revenue, farms often experience: 

  • Periods of high expenses before any income is generated (e.g., purchasing seed, fertilizer, or livestock feed) 
  • Large income spikes after harvest or livestock sales 
  • Variable market prices affecting income timing and amounts 
  • Seasonal labor costs tied to planting and harvesting cycles 

Without careful planning, these fluctuations can create cash shortages, missed payments, and financial stress. 

 

Strategies to Manage Seasonal Cash Flow in Farming 

  1. Develop a Year-Round Cash Flow Budget

    Create a detailed monthly cash flow projection, estimating all income and expenses throughout the year. This helps identify months when cash shortages may occur and allows you to plan accordingly.

  2. Build and Maintain a Cash Reserve

    Aim to set aside funds during peak income months to cover expenses during lean periods. A cash reserve can provide a financial cushion and reduce reliance on credit.

  3. Manage Accounts Payable and Receivable

    Negotiate payment terms with suppliers and customers to better align cash inflows and outflows. For example, extending payables while encouraging timely receivables can ease short-term pressure.

  4. Use Short-Term Financing Wisely

    Lines of credit or seasonal loans can help bridge cash gaps, but use them carefully to avoid high-interest costs. Plan repayments during high-income months.

  5. Monitor Inventory and Input Costs

    Track how much you spend on inputs and avoid over-purchasing early in the season. Efficient inventory management reduces tied-up cash and waste.

  6. Explore Alternative Revenue Streams

    Diversifying income sources—such as agritourism, direct sales, or value-added products—can help smooth cash flow throughout the year.

 

The Importance of Regular Financial Review 

Cash flow management is not a one-time task. Regularly reviewing your cash flow projections and actual results allows you to adjust your plans, identify issues early, and seize opportunities. 

Working with a trusted advisor can bring fresh insights and help you optimize your finances in line with your farm’s unique rhythms. 

 

How DBC Helps Farms Navigate Cash Flow Challenges 

At De Boer, Baumann & Company, we specialize in helping agricultural clients manage the complexities of seasonal cash flow. From budgeting to financing strategies, our team provides tailored advice that supports your farm’s stability and growth. 

 

 

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Business Consulting Tips for Expanding Your Farming Operation 

Expanding your farming operation is an exciting milestone—one that brings opportunities for increased revenue, new markets, and greater impact. But growth also presents challenges that require thoughtful planning, financial savvy, and strategic decision-making. Whether you’re adding acres, diversifying crops, or scaling your livestock, leveraging expert business consulting can help you navigate expansion successfully and sustainably.  Why …

Expanding your farming operation is an exciting milestone—one that brings opportunities for increased revenue, new markets, and greater impact. But growth also presents challenges that require thoughtful planning, financial savvy, and strategic decision-making. 

Whether you’re adding acres, diversifying crops, or scaling your livestock, leveraging expert business consulting can help you navigate expansion successfully and sustainably. 

 

Why Business Consulting Matters for Farm Expansion 

Farming is a complex business with unique variables: unpredictable weather, fluctuating commodity prices, labor demands, and regulatory compliance. Growth adds layers of complexity—from financing and infrastructure to market access and workforce management. 

A skilled business consultant offers an outside perspective grounded in industry expertise, helping you: 

  • Identify realistic growth opportunities based on market trends and your farm’s strengths 
  • Develop financial models and forecasts to ensure profitability 
  • Streamline operations to improve efficiency and reduce costs 
  • Navigate legal and regulatory requirements related to land use, labor, and environmental compliance 
  • Build sustainable strategies that balance short-term gains with long-term resilience 

 

Proven Strategies for Successful Farm Expansion 

Expanding your farming operation is a significant step that offers opportunities for increased revenue and sustainability but also requires careful planning and management. With the agricultural sector facing challenges like volatile commodity prices, labor shortages, and changing regulations, strategic business consulting can help you navigate growth wisely. 

Here are seven proven strategies and considerations to guide your farm’s expansion: 

  1. Conduct a Market and Feasibility Analysis

Before expanding, it’s crucial to analyze your target market and assess feasibility. Understand current demand trends, commodity prices, consumer preferences (such as the rising demand for organic or locally grown products), and competition in your region. Agencies like the USDA and state agricultural departments provide valuable market reports and data. 

A feasibility study that considers infrastructure needs, labor availability, and capital requirements will help determine whether expansion makes sense for your specific operation. 

  1. Develop a Comprehensive Financial Plan

Expansion often requires significant investment. Create detailed budgets, cash flow projections, and break-even analyses to evaluate the financial viability of your growth plans. 

Securing financing may involve bank loans, government grants, or farm credit programs. Financial institutions often require thorough business plans that show realistic returns and risk assessments. 

  1. Optimize Operational Efficiency with Technology

Investing in modern farm management technology can improve efficiency and reduce costs. Examples include: 

  • GPS-guided machinery that increases planting and harvesting accuracy 
  • Farm management software to track crop data, labor, and expenses in real time 
  • Precision agriculture tools that optimize input use, improving yields while reducing waste 

These technologies can be tailored to farms of all sizes to support scalable growth. 

  1. Build a Skilled and Compliant Workforce

Expansion usually means hiring additional labor, often seasonal. Develop clear hiring policies and training programs focused on safety, productivity, and regulatory compliance (including OSHA and labor laws). 

Consider partnerships with local labor agencies or community programs to attract qualified workers, and invest in employee retention strategies to reduce turnover. 

  1. Strengthen Supply Chain and Marketing Strategies

Growing your farm may require new or expanded supplier relationships and distribution channels. Evaluate your current supply chain for potential bottlenecks or vulnerabilities. 

Direct-to-consumer marketing—through farmers markets, CSA (Community Supported Agriculture) programs, or online sales—is gaining popularity and can offer higher margins, but requires dedicated marketing and customer service efforts. 

  1. Ensure Environmental and Regulatory Compliance

Larger operations face stricter environmental regulations related to water use, pesticide application, waste management, and land conservation. Early consultation with agencies such as the USDA Natural Resources Conservation Service (NRCS) and state environmental departments can help ensure compliance and identify cost-effective sustainability practices. 

Sustainable practices can also enhance your farm’s marketability to increasingly eco-conscious consumers. 

  1. Plan for Long-Term Succession and Risk Management

Growth should align with your long-term goals, including succession planning. Engage advisors to develop estate plans and business structures that support smooth transitions between generations. 

Additionally, comprehensive risk management—including crop insurance, liability coverage, and diversified income streams—can protect your expanded operation from unpredictable events. 

 

The Bottom Line: Growth with Confidence 

Expanding your farm is more than just scaling up—it’s about building a resilient, profitable operation that stands the test of time. Business consulting turns complexity into clarity, empowering you with data-driven strategies and actionable plans. 

 

How DBC Can Support Your Expansion 

At De Boer, Baumann & Company, our agricultural consulting experts combine industry knowledge with personalized service. From market analysis and financial planning to compliance and operational improvements, we partner with you to turn your growth vision into reality. 

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Preparing for an Agricultural Audit: What to Expect 

Audits can feel intimidating, especially when they involve complex agricultural operations. But with the right preparation, an audit doesn’t have to be stressful—it can be an opportunity to improve your financial controls, clarify records, and strengthen your business. Whether you’re facing a government compliance audit, a financial statement review, or an internal inspection, knowing what …

Audits can feel intimidating, especially when they involve complex agricultural operations. But with the right preparation, an audit doesn’t have to be stressful—it can be an opportunity to improve your financial controls, clarify records, and strengthen your business. 

Whether you’re facing a government compliance audit, a financial statement review, or an internal inspection, knowing what to expect will help you navigate the process with confidence. 

 

What Is an Agricultural Audit? 

An agricultural audit is a thorough examination of your farm’s financial records, operations, and compliance with applicable laws and regulations. It can be requested by lenders, government agencies, or conducted internally to assess risk and accuracy. 

Audits vary in scope but often include: 

  • Verification of income and expenses 
  • Review of inventory and asset records 
  • Examination of internal controls and procedures 
  • Compliance checks for grants, subsidies, or tax credits 

 

Common Types of Agricultural Audits 

  • Financial Statement Audits: Independent auditors verify the accuracy of your financial statements, which may be required by lenders or investors. 
  • Tax Audits: The IRS or state tax authorities review your tax returns and supporting documentation for accuracy and compliance. 
  • Regulatory Audits: Agencies like the USDA may audit compliance with program requirements or environmental regulations. 
  • Internal Audits: Self-assessments or reviews by your team to identify operational or financial risks before external audits. 

 

How to Prepare for an Agricultural Audit 

  1. Organize Your Records
    Make sure all financial documents—bank statements, receipts, invoices, payroll records, and tax filings—are complete, accurate, and easy to access.
  2. Review Your Internal Controls
    Document and review your financial processes, including cash handling, inventory tracking, and expense approvals. Strong internal controls can simplify the audit and reduce questions.
  3. Communicate with Your Auditor
    Clarify the audit scope and timeline upfront. Ask what documents or information they will need, and designate a point person to coordinate communications.
  4. Prepare Your Team
    Ensure staff understand their roles and the importance of timely, accurate responses. Train anyone who interacts with auditors on professionalism and transparency.
  5. Address Potential Issues Proactively
    If you identify errors or discrepancies ahead of time, document corrective actions taken. Being upfront about issues demonstrates responsibility and can build trust.

 

What to Expect During the Audit 

Auditors will typically: 

  • Conduct interviews with key personnel 
  • Inspect financial records and supporting documents 
  • Test transactions for accuracy and compliance 
  • Identify any discrepancies or risks for follow-up 

Remember, auditors are not there to catch you out—they want to ensure your records are accurate and your business is compliant. 

 

After the Audit: Next Steps 

Once the audit is complete, you’ll receive a report detailing findings and any recommended actions. It’s important to: 

  • Review the report carefully 
  • Address any deficiencies promptly 
  • Implement improvements in policies or controls as advised 
  • Keep detailed records of corrective actions 

 

How DBC Supports Agricultural Audits 

De Boer, Baumann & Company has extensive experience guiding farms through all types of audits. From preparation to response, we help you understand requirements, organize records, and implement controls to make the process as smooth as possible. 

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Breaking Through Succession Planning Roadblocks on Your Farm

Nearly every article about farm and ranch transitions emphasizes how few family business owners have formal succession plans. They cite statistics on the lack of planning, warn about the costs of unplanned transitions, and outline the potential damage to both finances and family relationships. The message is clear: failing to plan for your business …

Nearly every article about farm and ranch transitions emphasizes how few family business owners have formal succession plans. They cite statistics on the lack of planning, warn about the costs of unplanned transitions, and outline the potential damage to both finances and family relationships. The message is clear: failing to plan for your business transition can create serious challenges for the next generation.

Despite this, many family business owners still don’t complete their succession plans. One reason is that succession planning is never truly “finished.” Life events—births, deaths, marriages, divorces, family conflict, changes in business strategy, acreage fluctuations, and even natural or economic disasters—can all affect your plan.

But even with these realities in mind, many still hesitate. Here are common reasons why.

Feeling Stumped

Sometimes you simply don’t know where to begin. You may be unsure how to divide assets among children, or whether they should be divided equally. Maybe you don’t know how to acknowledge the contributions of family members who stayed to help while others pursued careers elsewhere. Or perhaps no one plans to return to the farm, and you don’t know how to plan for that. When there’s no clear solution, it’s easy to avoid the conversation entirely.

Conflict Among Family Members

Family conflict often contributes to planning paralysis. Maybe you and your spouse can’t agree on a plan. Perhaps tension between adult children complicates decisions about inheritance. Maybe you’re frustrated with an in-law or disappointed by a family member’s lifestyle or choices. When relationships are strained, it can be hard to picture a smooth transition.

Unrealized Goals

Many owners hope to grow their business and pass it on to the next generation. But if those dreams don’t materialize, planning becomes painful. Family involvement may not have worked as hoped, or the business’s long-term viability may be in doubt. Facing those realities can make planning feel like an acknowledgment of a dream that didn’t come true.

Overwhelmed by Complexity

Succession planning can be complicated. Farm Service Agency regulations, entity structures, trusts, gifting strategies—it’s a lot to navigate. When you add in family dynamics, it’s tempting to throw up your hands and think, “They can figure it out when I’m gone.”

Facing Your Own Mortality

Succession planning also means confronting your own mortality, and that’s something many people prefer to avoid. For some, not planning feels easier than facing the idea of stepping away or passing on.

Moving Past the Hesitation

The way to move forward is simple: talk it through. Discuss options, brainstorm ideas, write them down, debate the pros and cons, and visualize what different paths could look like. You can do this with your spouse, trusted friends, other family members, or advisers.

Sometimes it helps to talk to someone completely outside your industry—someone who owns a family business in a different field—to get a fresh perspective. Talking with others you respect can create accountability and momentum.

Then, focus on just the next step. Don’t try to complete the entire plan at once. Schedule another meeting, research a strategy, or start one small conversation. Step by step, the pieces will come together. Overcoming hesitation isn’t easy, but by understanding its sources, talking with others, and consistently moving forward, you can build a stronger path to the future.

To read the full article by Lance Woodbury, visit Overcome Succession Plan Hesitation.

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De Boer, Baumann & Company provides professional accounting, tax, and business advisory services to individuals and businesses in West Michigan and the surrounding areas. With expertise in a variety of industries, DBC specializes in comprehensive and innovative solutions to help clients achieve their financial goals.