As the calendar year wraps up and the crop year ends, livestock producers and ranchers are closing the books on last year’s performance, and laying the groundwork for next year. Whether you grow soybeans, run a mixed grain or farming operation, or manage livestock grazing, now’s the time to turn your financial statements: income statement, balance sheet, and cash flow reports into a forward-thinking blueprint. Depreciation, tax year planning, and record-keeping are critical, as are strategies for profitability, risk management, and navigating input costs, interest rates, and market prices.

FarmRaise helps farm businesses close out 2025 confidently, plan the 2026 fiscal year and calendar year ahead, and access USDA and federal government support where it applies.

1. Generate Your Year-End Financial Statements with FarmRaise Tracks

Your balance sheet, income statement (including farm income analysis), and detailed cash flow reports are the foundation. They show:

• Revenue from soybeans, grains, livestock, service income, and subsidy programs
• Input costs for seed, fertilizer, labor, and fuel
• Depreciation on capital equipment over the tax year or fiscal year
• Current cash flow and outstanding obligations to your lender

FarmRaise Tracks lets you tag transactions by Schedule F category, snap receipts in real time, including offline in the field, and auto-generate financial reports aligned with IRS and farm bookkeeping standards. You can also export clean data for external accountants or advisors, facilitating income tax preparation and year-end reconciliation.

2. Evaluate Profitability, Liquidity, and Cost Drivers

With statements in hand, dig into:

• Which enterprises, soybeans vs. hay, livestock vs. grazing, delivered bottom-line profit
• How rising interest rates affected debt service and net margins
• Which input costs surged and why
• Whether crop insurance payouts, operating loans, or pandemic-era relief supported your farm economy

FarmRaise lets you benchmark enterprise-level profitability, monitor short-term and seasonal changes in cash flow, and compare performance across crop year or calendar year intervals.

3. Build Forecast Scenarios for 2026

Forecasting is essential in an era of volatile market prices, global trade tariffs, and evolving commodity cycles. Build models that assume:

• Soybean prices down 10 percent
• Input costs rising sharply
• Interest rates increasing again
• Variability in insurance payouts or subsidy programs

Overlay these scenarios on your revenue and expense baseline to see how things shift post-depreciation. Track whether cash flow stays positive or if you’ll need to borrow or modify your farming operations.

4. Tap USDA and FSA Assistance Programs Strategically

Programs emerging from the latest farm bill and federal government recovery packages can provide vital support:

• Crop insurance protections for grains, soybeans, and specialty crops
• Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish (ELAP) and Livestock Indemnity Program (LIP) coverage for ranchers via USDA’s Farm Service Agency
• Conservation programs such as the Conservation Reserve Program (CRP), the Conservation Reserve Enhancement Program (CREP), or Grassland CRP
• Micro loans or operating credit from FSA to meet short-term cash flow needs

FarmRaise hosts the free FSA Educational Hub, created in partnership with USDA’s Farm Service Agency. It includes decision tools like LIP and ELAP, plus educational modules on loan programs, conservation programs, and recordkeeping required for assistance programs.

Plan and document losses from last year, then explore the relevant subsidy or disaster assistance program before deadlines. These tools can also help with eligibility tracking, loan preparation, or farm credit applications.

5. Coordinate with Your Lender Based on Forecasted Needs

Armed with balance sheets, income projections, and scenario data, you’re in a solid position to negotiate annual operating loans or refinance with favorable terms. A lender will value your documented cash flow, depreciation strategy, and profitability outlook, especially if interest rates continue upward.

You can easily export professional financial reports from FarmRaise and share them with your bank or local FSA Service Center in your planning conversations.

6. Strategize Your Tax Year Close

As the tax year ends, evaluate whether to accelerate equipment purchases or take Section 179 depreciation now or later to optimize tax savings. You may also need to consider carry-forward deductions.

FarmRaise’s Financial Planning add-on includes accounting and tax guidance to help maximize deductions, navigate tax law, and align strategy across calendar year and fiscal year planning.

7. Strengthen Record-keeping and Operations Going Into 2026

Better record-keeping improves future tax preparation, assists with USDA program compliance, and flags trends in input costs, revenue, and risk. FarmRaise Tracks provides mobile access in-field (and offline), making real-time logging simple. The FSA Record-Keeping Toolbox within the educational hub gives templates, guidance, and documentation tips to support disaster or subsidy claims.

8. Leverage Webinars, Events, and Learning Resources

FarmRaise and the FSA Hub host webinars and video content to keep you informed about USDA updates, tax law changes, funding timelines, conservation programs, and farm loan guidance. These sessions support continuous learning as you prepare for next year’s farm business planning.

Year-End Close and Planning Checklist

Ensure you’ve addressed the following:

• Exported and reviewed income statement, balance sheet, and cash flow
• Categorized major input costs, depreciation, insurance, and interest
• Evaluated enterprise-level profitability
• Built multiple forecast scenarios considering interest rates, tariffs, and price swings
• Checked eligibility for USDA crop insurance, ELAP/LIP, NAP, CRP enrollment, or microloan support
• Prepared for income tax and depreciation strategy with expert review
• Shared projected financials with your lender or FSA advisor
• Registered for upcoming FarmRaise or FSA webinars on budgeting, risk, and credit
• Upgraded recordkeeping habits using FarmRaise Tracks and FSA templates

Why Budgeting with Financial Reports Matters

• It aligns borrowing and cash reserves with operational timing and obligations
• Helps anticipate margin pressure from input costs or changing market prices
• Shows when crop insurance or subsidy gaps could expose vulnerability
• Positions your small business for better access to farm credit and USDA support
• Streamlines year-end financial closing and income tax planning

FarmRaise Tools That Support This Approach

• FarmRaise Tracks: tracks expenses, cash flow, invoices, depreciation, and mileage; builds Schedule F, financial statements, and inventory data
• FSA Educational Hub: access to USDA program guides, decision tools for LIP/ELAP, recordkeeping templates, and crop insurance, conservation programs, or farm loan tutorials
• Farm Funding Library and Alerts: access to hundreds of USDA, FSA, and private assistance programs, microloans, and cost-share opportunities; notifications when farm bill or subsidy programs open
• Financial Planning Add-on: quarterly expert sessions to optimize tax, depreciation, profitability, and risk management decisions

Final Thoughts: Closing One Year, Planning the Next

The strength of your 2026 plan stems from how comprehensively you close 2025. That means mastering your cash flow, understanding last year’s farm income, modeling new interest rates or funding scenarios, and using USDA support programs strategically.

By treating your financial reports, not just as compliance documents but as tools for planning, you give your farm business a competitive edge. From better operations and targeted risk management to efficient short-term borrowing and smarter income tax strategy, closing out the year well is your runway into profit and adaptability.

FarmRaise provides the tools, educational resources, access to USDA’s Farm Service Agency, and expert planning support to make it happen. Start navigating off-season planning with clarity and confidence—and step into the new farm economy ready to thrive.

Ready to get started? Sign up for FarmRaise today and start building a better future for your farm. Use code IT3H12B at checkout for 20% off or use this link to checkout now.