Using sector financial statements and ARMS data to prepare statements of owner equity and cash flows for the agricultural sector

Freddie L. Barnard, Dale W. Nordquist

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Purpose – The purpose of this paper is to discuss the feasibility of preparing a statement of owner equity (SOE) and statement of cash flows (SOCF) for the agricultural sector. Also, the use of the Agricultural Resource Management Survey (ARMS) to collect data needed to supplement the US farm sector accounts to prepare a sector SOE and SOCF is discussed. Design/methodology/approach – An SOE and SOCF for an individual producer was used to provide an example format for preparing an SOE and SOCF for the agricultural sector and to identify the data needed from the ARMS survey to supplement farm sector accounts. Findings – The format and data needed to prepare a sector SOE and SOCF were identified and the feasibility of the collection of that data using current ERS/USDA survey collection methods would provide the data needed to prepare the statements. However, the use of two independent data collection authorities to collect the data would result in an agricultural sector SOE and SOCF that would not reconcile. Originality/value – The paper initiates a dialog of possible alternatives available to the ERS/USDA and researchers concerning data needed and data sources available to prepare an agricultural sector SOE and SOCF, as well as the shortfalls and inaccuracies that would result.

Original languageEnglish (US)
Pages (from-to)273-285
Number of pages13
JournalAgricultural Finance Review
Volume72
Issue number2
DOIs
StatePublished - Jul 27 2012

Keywords

  • Agriculture
  • Cash reconciliation
  • Equity reconciliation
  • Farm sector
  • Farms
  • Retained earnings
  • Statement of cash flows
  • Statement of owner equity
  • United States of America
  • Valuation equity

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