University of Maryland Extension

Historical versus projected income statements

Author: 
Dale M. Johnson, Extension Specialist, Farm Management

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Income statements should be constructed for both historical analysis of farm profits and projecting future profits. The past year is always a good baseline for projecting profits for the next year. Figure 1 illustrates an income statement for an example farm. It records the historical income, expenses, and profit for the past year and projections for the coming year.

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Example farm income statement

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