By Stephanie Elsen

The Farm Financial Standards Council (FFSC) has been working on developing recommendations for hedge transactions for agricultural operations. In January 2014, nearly 70 pages of additional content will be added to the Financial Guidelines for Agriculture. The content will provide content and examples of how to account for hedge (futures and options) transactions on financial statements for agricultural producers.

The additional content to be released contains information about two types of hedging: fair value hedges and cash flow hedges. Fair value hedges are when a producer stores grain that is valued on the balance sheet at fair market value and is readily available for sale. In this case the resulting hedging gains and losses are included in the revenue section of the income statement. Cash flow hedges occur when a producer hedges items not available for sale, including planned or growing crops or livestock. These items are valued at cost on the balance sheet, and the resulting hedging gains and losses may be excluded from the income statement and instead shown in other comprehensive income.

To learn more about the FFSC recommendations on accounting for hedging transactions, look for the new content in January of 2014 at www.ffsc.org

The FFSC was created to promote uniformity and integrity in financial reporting and analysis for farmers. Learn more about their mission and the tools they offer by visiting their Web site: www.ffsc.org

How do you know if you’re doing something the best way if you only know one way to do it? Take a look at any important process in your organization and think about a way to change it. You might be surprised to find out the way you’ve been doing that process isn’t the best way. Try taking a different street to work. Maybe the distance is not as short, but might be faster. At least you’ll see different scenery.

You may ask someone (or yourself) to do something faster, more efficiently, at a lower cost, or with fewer errors, but is the system they are working in allowing them to accomplish any of these results? Trying one or more alternatives to a given process might produce the results you’re looking for.

At Red Wing Software, we never assume that there is only one way to accomplish a task. We constantly challenge our staff to find ways to improve what we do; make our software faster, easier to use, have fewer errors, etc. Sometimes we need to think outside the box and try some ideas that seem a little obscure. Quite often this exercise yields a result that no-one would have thought of without a group of us throwing out ideas and hammering through to a conclusion.

Try it. You might be surprised. I’m sure you’ve heard this before, but a wise customer told me once, “If you always do what you’ve always done, you’ll always be where you already are.”

- Ken Hilton, President

CenterPoint Accounting customer, Velmer Green, from Green Meadow Farms, is one of four recipients who was honored by World Dairy Expo for his innovative leadership and commitment to the global dairy industry. Velmer received the Dairyman of the Year award as reported in the September 10, 2013 issue of Hoard’s Dairyman. Congratulations Velmer!

Janet has been with Red Wing Software for almost ten years, helping customers with their Customer Care Membership renewals. If you are a Red Wing Software customer, you’ve probably spoken with Janet! She has worked in the customer service field for years, including working at The Toro Company and Polaris Industries, both Minnesota grown companies. I asked Janet to put together something, so the many customers she speaks with every day can get to know her better. Here’s what she had to say!

“You may have noticed by my Minnesota accent, I was born and raised in Minnesota. Living in Minnesota is truly interesting and the climate is always changing, from 13 inches of snow on May 2nd to almost 99 degrees on September 9th, all in 2013. In my spare time, I like to garden, and that sometimes includes removing buckthorn off my property in Red Wing….which isn’t easy. I have two daughters, with the oldest one getting married next year. As you all know, wedding planning isn’t easy and getting everyone on the same idea is next to impossible. Hopefully, the weather will cooperate for a May 2014 wedding with no snow.”

“I am an avid outdoor enthusiast and animal lover. Arabian horses are my first passion with Bon Jovie being born on my farm 27 years ago. He is still as full of life as the day he was born. Bon Jovie was a top ribbon winner in Arabian halter for years, and he’s now a loving pasture pet. Last year my husband Tom and I purchased a Border Collie named ‘Boots’. What a smarty he has turned out to be. It is true they are a very smart breed of dog, never a dull moment at our house with Boots! I also love to kayak and fish on the Flambeau River in Wisconsin and eat fresh walleye. At our cabin on the Flambeau River, there are always family and friends stopping in. The biggest problem is catching enough walleye to feed everyone. ”