Progress report for WPDP25-030
Project Information
Sustainable producers repeatedly cite finances as their biggest barrier to success and well-being. (Farm Stress & Decision Making During Stressful Times. Shutske, 2024).
Also, lenders make fewer loans for sustainable diversification or improvements when they do not fit the agricultural loan model (Multiple Forms of Uncertainty as a Barrier to the Adoption of Sustainable Farming Practices. Lawrence, 2015).
WSE will work with producer partners and agriculture financial experts to develop two sets of workshops addressing financial management needs identified by sustainable agriculture producers. The first workshop will focus on foundational financial practices, and the second will provide more in-depth training. The series will repeat in year two. An efficient financial analysis system (FAS) will be developed for sustainable producers and lenders to assess profitability accurately.
While the goal is to help producers create profitability, these resources will have substantially more impact if educators/advisers are trained to teach producers how to use them effectively. The workshops will help educators better understand sustainable agriculture finance and how to utilize the FAS to train current and future producers.
The target audience for workshops is Extension agents, secondary agriculture teachers, farmer/rancher mentors, agency and non-profit organization staff, and anyone else training others in sustainable agriculture. It also includes ranch interns in MSU’s Dan Scott Ranch Management Program who complete a financial analysis for their host rancher.
Participants will complete a survey after each workshop to determine if they learned the targeted skills and evaluate if the FAS resources are user-friendly and produce essential information. Resources will be revised as needed throughout the project.
Through this project, agriculture educators across Montana will be better equipped to help producers managing natural resources sustainably become equally resilient with their financial resources, and will reach future farmers and ranchers to build a financial foundation.
- Up to 60 agricultural educators will gain essential skills and knowledge to help teach producers how to improve profitability and overall financial management through two sets of two-part, two-day workshops between November 2025 and February 2027.
- By March 31, 2028, workshop participants will share profitability information and resources with at least 150 agriculture producers who will gain essential skills and knowledge to improve profitability.
- An effective and efficient Financial Analysis System and step-by-step instructions will be created, tested with workshop participants and producers outside the workshops, revised, and produced in finalized form by February 28, 2028, to be utilized by producers to improve profitability.
- The finalized Financial Analysis System will be available in electronic format by the end of the project period, March 31, 2028, for educators and producers to effectively and efficiently assess the profitability of any sustainable agriculture enterprise and their overall business operation.
According to an article from the University of Wisconsin-Madison, financial pressures and debt load are two of the top stressors for agricultural producers. (Farm Stress & Decision-Making During Challenging Times. Shutske, 2024). This information was based on farming in general, but these pressures are consistent across all types of agriculture. Furthermore, a study in north central Montana confirmed that financial barriers are one of the primary obstacles to adopting sustainable agriculture practices. (Multiple Forms of Uncertainty as a Barrier to the Adoption of Sustainable Farming Practices. Lawrence, 2015).
Adopting new sustainable practices is full of uncertainties as producers challenge conventional traditions and invest in new methods and capital improvements to move into more environmentally sound practices. To be successful in this process it is vital to have effective and efficient financial knowledge and tools.
In 2023, WSE organized a two-day profitability workshop focused on needs identified by producers in prior surveys to help sustainable producers improve their bottom line and ability to secure financing. The workshop featured agricultural financial professionals and producers who successfully utilized the economic principles presented in the workshop. In an anonymous participant survey, most rated the information highly useful—others stated that it was too rudimentary and needed a more advanced option.
Workshop discussions between producers and presenters revealed that financial forms generally provided to producers in other programs are either not in-depth enough to inform sound decisions or are too cumbersome to utilize consistently. This organic discussion led to the conclusion that a simplified and unified set of resources needs to be developed into a Financial Analysis System for producers.
Dr. Rachel Frost, program leader and professor in Montana State University’s Dan Scott Ranch Management Program, stated that she would utilize new financial analysis resources in her classes. These tools could also be invaluable in helping students in their Senior Ranch Management projects. Further, she recommended that the best way to get this information to more stakeholders is to train professional educators throughout the state who work with ranchers or future ranchers to disseminate this information broadly. (Frost, 2024).
WSE could implement two workshop series and reach a maximum of 60 producers. If we train 60 trainers instead, we can reach exponentially more producers with vital information and resources. Furthermore, the trainers will be in their communities and easily accessible for follow-up questions. This also helps build trust and relationships between trainers and the producers and students they serve.
Based on research, surveys, and input from producers, financial professionals, and educators, this project will create two sets of two-day workshops with an introductory and advanced session in each series for anyone who trains sustainable producers. Throughout this project, a Financial Analysis System (FAS) will also be developed and utilized in the workshops, and the final version will be shared with educators, producers, and financial experts.
Cooperators
- (Educator)
- - Producer (Educator)
- - Producer (Educator)
- - Producer (Educator)
- - Producer (Educator)
- - Producer (Educator)
- - Producer (Educator)
- - Producer (Educator)
Education
Workshop provided on-line and in-person instruction simultaneously.
Approaches were a combination of group discussion to determine needs and discuss options; hands-on activities; lecture; and demonstration.
Follow-up weekly Accountability on-line sessions provided an opportunity for participants to check in and set weekly goals for utilizing the information learned.
Education & Outreach Initiatives
- Up to 60 agricultural educators will gain essential skills and knowledge to help teach producers how to improve profitability and overall financial management through two sets of two-part, two-day workshops between November 2025 and February 2027.
- By March 31, 2028, workshop participants will share profitability information and resources with at least 150 agriculture producers who will gain essential skills and knowledge to improve profitability.
- An effective and efficient Financial Analysis System and step-by-step instructions will be created, tested with workshop participants and producers outside the workshops, revised, and produced in finalized form by February 28, 2028, to be utilized by producers to improve profitability.
- The finalized Financial Analysis System will be available in electronic format by the end of the project period, March 31, 2028, for educators and producers to effectively and efficiently assess the profitability of any sustainable agriculture enterprise and their overall business operation.
- 18 individuals participated in the first 2-day workshop, where they learned essential skills and knowledge to help producers improve profitability and overall financial management.
- Participants included Extension agents, agricultural lenders, regenerative agriculture non-profit leaders and ranchers: all of whom received materials from the workshop to be utiiized for their own use or with others.
- Participants were provided with a case study if they didn't want to use their own financials, templates for: profit and loss, budget, cash flow, balance sheet, (selected after review of several options) and a SWOT analysis to help producers analyze their operation and reveal opportunities and threats to their business. They were also given examples of personality profiling services to better understand everyone on their respective teams and aid with communication.
A large portion of the workshop was devoted to group discussion and learning from one another. This provided an opportunity to understand producer needs and for the presentation team to provide insight and guidance throughout. This process helped build connection between participants and with the instructor team, and was very effective in guiding information flow.
Much if the introductory workshop focused on the balance sheet, how to utilize it effectively, and what it tells a producer about their financial health over time. Instructors also covered the basics of enterprise accounting and using that strategy to produce good profit and loss income statements and budget vs actual working spreadsheets. Participants had opportunity to work one-on-one with one of the workshop team members, utilizing their own ranch information or working with the 5-year case study provided. The case study was also utilized the entire group to work through how to create a balance sheet with the information provided.
Instructors discussed the importance of communication within a ranch work team, providing real life examples of how they keep everyone focused on the same goal and work through conflict. Participants each worked through their own SWOT analysis for their ranch (or the case study) and discussed how to utilize it with a ranch team to assess their strengths, weaknesses, opportunities and threats in all areas.
Participants worked through the process of developing a SMART Goal to focus on specific goals for ranch business success.
Utilizing their own experience, two rancher presenters discussed the keys to developing an accurate budget and how to compare budget-to-actual each quarter in order to pivot the business, if necessary. This process will be delved into deeper in the next session.
A weekly follow-up accountability session was offered to all participants to encourage utilization of the skills learned in the workshop.The sessions will be offered for the entire time prior to advanced workshop in February.
In evaluations, participants ranked the workshop high for meeting their expectations. One participant in the accountability sessions has shared that she has worked with her husband, his family and their ag lender to make several financial and other management improvements. Two participants who have been through multiple financial workshops, including Ranching For Profit, told several members of the instructor team that this was the best basic financial workshop they had ever attended.
This workshop set the foundation for more in-depth hands-on work in the next class, and introduction of the next pieces of the Financial Analyis System.