More producers moving to accrual accounting would be good for agriculture for several reasons, says Mark Jensen, senior vice president of Farm Credit Services of America, during the 2015 Top Producer Seminar.
"Cash flow only tells part of the story," Jensen explains. If a producer depletes inventory, he or she might be getting a cash flow boost, but overall the producer is losing.
Accrual accounting allows producers to review earnings on basis of cash flow as well as inventory and balance sheet changes, he says.
To read more news and find additional information on the Top Producer Seminar or Tomorrow’s Top Producer events, visit www.TopProducerSeminar.com.
Thank you to the 2015 Top Producer Seminar sponsors:
Premier Sponsors: Advance Trading, Apache Sprayers, BASF, Bayer CropScience, Cargill, Case IH, Dow AgroSciences, DuPont Pioneer, ESN, Farmers Business Network, Firestone, John Deere, New Holland, Top Third Ag Marketing, Verdesian
Co-Sponsors: CliftonLarsonAllen, Conservis, The Gulke Group, K-Coe Isom, Soybean Premiums, Wyffels Hybrids
Supporting Sponsors: FarmLink