The Van Lieshout family has been a cooperator in the Dairy Farm Business Summary (DFBS) program since 2004 when a risk management grant through Cornell University Cooperative Extension was available. Kempenland Farm in Orleans County is operated by brothers Andy and Mike Van Lieshout; Mike’s wife, Cyndy; their children and three employees. The Van Lieshouts milk 200 cows and crops 730 acres, growing grain corn and silage, soybeans and alfalfa hay. The family sells any extra corn and baled hay.

“By participating in the Dairy Farm Business Summary, we hope to gain a handle on the areas of weakness in our business,” says Cyndy Van Lieshout, who does the farm’s financial record keeping. “We really like to compare the results with other farms of our size in hopes we can improve areas that are weaker than the average of our size.”

Cyndy uses QuickBooks for the dairy’s financial records. After Extension farm business management educator John Hanchar helped her make entries compatible with DFBS requirements, Cyndy says the computer keeps track of most of the information. “Inventories of feed and cattle must be done manually, but it’s painless,” she says. “The Dairy Farm Business Summary doesn’t take a lot of time after you’ve done it once. Every year it gets quicker and quicker.

“If I had any desire about the Summary, I wish I could see how other people use the Summary’s information, and I could learn from them,” Cyndy says.

The Van Lieshouts receive the DFBS papers to fill out in January. Then Hanchar makes an appointment with the family to review the information and ensure all the data is recorded. By March or April, the Van Lieshouts receive a compiled report.

Participating farms are invited to meet in April to look at their business’ financial performance and to talk with other cooperators. The meeting helps dairies to identify strengths and areas needing improvement. Cooperators also receive a two-page report that compares business results for selected factors to averages for a group, says Hanchar. The group can be determined by size, performance and other business factors.

The DFBS and Analysis Program can be a tool to measure farm business results, specifically the financial condition and performance of a dairy business – its solvency, ability to meet cash obligations in a timely manner, profitability and others, says Hanchar. For the Van Lieshouts, cash flow has always been a barometer of the farm’s financial performance Cyndy says. In other words, the balance sheet is used to indicate the dairy’s financial condition.

For the Van Lieshouts, the DFBS is a tool they use to evaluate their business’ financial performance and move it toward an important goal that Cyndy points out: “Foremost we want to be profitable and progressive.”
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