When the last field is harvested and the combine is cleaned and put away, the daunting task of putting together a balance sheet awaits most farming operations.
Josh Dickson, with Agri Financial, said getting the sheet together at the end of the year is important, “Capturing your operations assets and liberties at the end of the year is the best way to prepare for your tax returns and your credit needs for the next season.” Dickson made his comments as part of the Money Minute series that will be featured during November in Hoosier Ag Today radio reports.
Dickson stressed that, in addition to an operations assets, liabilities are a key component, “These include input costs such as land rent, crop inputs, farm taxes, lines of credit, credit card debt, or loans to family members.” As a lender, Dickson said he uses these balance sheet to determine the strength and credit worthiness of an operation. For many farms, the balance sheet for 2019 will not look very good.
Dickson said, however, that these financial snapshots can show lenders an operation’s ability to handle risk and, over time, can show an operations growth and stability, even if the bottom line does not look that good.
Pulling together a balance sheet can be challenging; but, at Agri Financial, they can provide assistance. “We believe in having a good business relationship with our customers,” said Dickson. “We will go out to the farm and meet in person and even help collect needed statements to make sure the balance sheets are as accurate as possible.”
Listen to the complete Money Minute series on HoosierAgToday.com.